Small Business Size Standards; Adoption of 2007 North American Industry Classification System for Size Standards, 49669-49676 [E7-17150]

Download as PDF Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules ebenthall on PRODPC61 with PROPOSALS procedures include a requirement for a ‘‘mandatory hearing’’ at the repository construction authorization stage. The petitioner also asserts that, in 2004, when NRC revised its rules of practice, it reaffirmed the decision to hold a ‘‘mandatory,’’ formal hearing for an HLW repository. (See, 69 FR 2182, 2204; January 14, 2004.) The petitioner states that although 10 CFR 2.101(e)(8) requires that the notice of a ‘‘mandatory’’ hearing on a repository construction authorization ‘‘shall recite the matters specified in § 2.104(a) of this part,’’ § 2.104(a) does not specify the matters of fact or law to be considered. The petitioner contrasts this provision with the notices of mandatory hearings for nuclear power reactors under § 2.104(b) that require the presiding officer to consider the evidence and make all safety and environmental findings required for issuance of the license, and to determine if the NRC staff’s review of the application was adequate. The petitioner asserts this has resulted in a ‘‘regulatory gap’’ in the NRC’s rules of practice. The petitioner is concerned that the scope of issues to be considered must extend beyond admitted contentions ‘‘because otherwise the decision to hold a mandatory hearing would be nothing more than an empty gesture.’’ The petitioner states that its proposed amendment is patterned after § 2.104(b) but notes that this provision currently applies only to nuclear power reactor proceedings. The petitioner believes that the recent notices of hearing for uranium enrichment facilities such as in the USEC, Inc. (American Centrifuge Plant), CLI–04–30, 60 NRC 426 (2004) proceeding offer an easier template to follow for a hearing. The petitioner also states that because there is no reason to distinguish the ‘‘mandatory’’ hearing for Yucca Mountain from the ‘‘mandatory’’ hearing for other HLW repositories subject to 10 CFR Part 60, its suggested amendments would apply to repository facilities subject to either Part 60 or Part 63. The Petitioner’s Proposed Amendment The petitioner requests that 10 CFR 2.101(e)(8) be amended by deleting the reference to § 2.104(a) and replacing it with a reference to § 2.104(f). The petitioner also requests that § 2.104 be amended by adding a new paragraph (f) to read as follows: (f)(1) In the case of an application for a construction authorization for a high-level waste repository under parts 60 or 63 of this chapter, the notice of hearing will state that the matters of fact and law to be considered are whether the application complies with VerDate Aug<31>2005 15:07 Aug 28, 2007 Jkt 211001 the Nuclear Waste Policy Act of 1982, as amended, and the standards set forth in 10 CFR 60.10, 60.21, and 60.24(a), or 10 CFR 63.10, 63.21, and 63.24(a), as applicable, and whether the requirements of 10 CFR 60.31 or 10 CFR 63.31, as applicable, have been met. (2) Regardless of whether the proceeding is contested or uncontested, the Atomic Safety and Licensing Board will determine the following, without conducting a de novo review of the application: (i) Whether the application and record of the proceeding contain sufficient information, and whether the NRC staff’s review of the application has been adequate, to support findings to be made by the Director of the Office of Nuclear Materials Safety and Safeguards with respect to the matters set forth in paragraph (f)(1) of this section; and (ii) Whether the review conducted by the NRC Staff under 10 CFR part 51 has been adequate. (3) Regardless of whether the proceeding is contested or uncontested, the Atomic Safety and Licensing Board will, in its initial decision, under Subpart A of 10 CFR part 51, and the Nuclear Waste Policy Act of 1982, as amended: (i) Determine whether the requirements of section 102(2)(A), (C), and (D) of NEPA, section 114(f) of the Nuclear Waste Policy Act of 1982, as amended, and subpart A of 10 CFR part 51 have been complied with in the proceeding; (ii) Independently consider the final balance among conflicting factors contained in the record of the proceeding with a view to determining the appropriate action to be taken; and (iii) Determine whether the authorization should be issued, denied, or further conditioned to protect the environment. (4) If the proceeding becomes a contested proceeding, the Board shall also make findings of fact and conclusions of law on admitted contentions within the scope of paragraphs (f)(1), (2), and (3) of this section. With respect to matters set forth in paragraph (f)(1) of this section but not covered by admitted contentions, the Atomic Safety and Licensing Board will make the determinations set forth in paragraph (f)(2) of this section without conducting a de novo evaluation of the application. Lastly, the petitioner requests that 10 CFR 2.700 be amended by deleting ‘‘2.101(f)(8)’’ and replacing it with ‘‘2.104(f).’’ The petitioner states that its proposed § 2.104(f)(2) would apply to both contested and uncontested proceedings. The petitioner explains that the safety findings required by this proposed amendment focus on the adequacy of the record of the proceeding, the license application, and the NRC staff’s review. The petitioner states that limiting these findings to uncontested cases, as it believes was the NRC’s prior practice, implies that these findings are irrelevant in litigating contested issues. However, the petitioner states that litigation and findings on contested issues necessarily PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 49669 include findings on the adequacy of the record, the application, and the NRC staff’s review, insofar as these are relevant to contested issues. The petitioner also explains that proposed 2.104(f)(1) and (3) reference the Nuclear Waste Policy Act of 1982, as amended (NWPA), ‘‘for completeness’’ and because of the National Environmental Policy Act provision in section 114(f) of the NWPA. Lastly, the petitioner explains that proposed § 2.104(f)(4) includes a specific reference to paragraphs (f)(1)– (f)(3) of that section for clarity because these provisions define the scope of material issues that may be litigated. The petitioner requests that the NRC act expeditiously on these proposed amendments to 10 CFR Part 2 as detailed in this petition for rulemaking because the DOE intends to file a construction authorization license application for the Yucca Mountain facility with the NRC no later than June 30, 2008. Dated at Rockville, Maryland, this 23rd day of August 2007. For the Nuclear Regulatory Commission. Annette L. Vietti-Cook, Secretary of the Commission. [FR Doc. E7–17106 Filed 8–28–07; 8:45 am] BILLING CODE 7590–01–P SMALL BUSINESS ADMINISTRATION 13 CFR Part 121 RIN 3245–AF68 Small Business Size Standards; Adoption of 2007 North American Industry Classification System for Size Standards Small Business Administration. Proposed rule. AGENCY: ACTION: SUMMARY: The U.S. Small Business Administration (SBA) proposes to amend its Small Business Size Regulations by incorporating the Office of Management and Budget’s (OMB) 2007 modifications to the North American Industry Classification System (NAICS) in its table of small business size standards. These modifications are few in number and result in revisions to size standards for three industries and four activities within other industries. SBA believes that this proposal is routine and non-controversial, and the Agency anticipates no significant adverse comment. Therefore, SBA is publishing concurrently in this issue of the Federal Register a direct final rule to expedite modifying its Small E:\FR\FM\29AUP1.SGM 29AUP1 49670 Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules Business Size Regulations as described in this proposed rule. If SBA receives any significant adverse comment to the direct final rule, it will withdraw it, and consider those comments in connection with this proposed rule. DATES: SBA must receive comments to this proposed rule on or before September 28, 2007. ADDRESSES: You may submit comments, identified by RIN 3245–AF68, by any of the following methods: • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Mail, for paper, disk, or CD/ROM submissions: Gary M. Jackson, Division Chief for Size Standards, 409 Third Street, SW., Mail Code 6530, Washington, DC 20416. • Hand Delivery/Courier: Gary M. Jackson, Division Chief for Size Standards, 409 Third Street, SW., Mail Code 6530, Washington, DC 20416. SBA will post all comments on www.regulations.gov. If you wish to submit confidential business information (CBI) as defined in the User Notice at www.regulations.gov, please submit the information to Carl J. Jordan, Office of Size Standards, 409 Third Street, SW., Mail Code 6530, Washington, DC 20416, or send an email to sizestandards@sba.gov. Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination of whether it will publish the information or not. FOR FURTHER INFORMATION CONTACT: Carl Jordan, Office of Size Standards, at (202) 205–6618 or sizestandards@sba.gov. SUPPLEMENTARY INFORMATION: SBA adopted the NAICS industry definitions as a basis for its table of small business size standards effective October 1, 2000, as a replacement to the discontinued Standard Industrial Classification (SIC) System (65 FR 30836, May 15, 2000). Since that time, OMB has issued two updates modifying the NAICS. SBA incorporated OMB’s first updated modifications, termed NAICS 2002 (66 FR 3825, January 16, 2001), in its table of size standards effective October 1, 2002 (67 FR 52597, August 13, 2002). OMB published its most recent updates, termed NAICS 2007, on May 16, 2006 (71 FR 28532). SBA is proposing adoption of those updated modifications in its table of small business size standards, as explained below. For complete information on the relationship between NAICS 2002 and NAICS 2007, please see the U.S. Bureau of the Census (Census Bureau) Web site at https://www.census.gov/epcd/www/ naicsdoc.htm#fedreg. That Census Bureau Web site provides complete information on its establishment and implementation of NAICS 2007, including its notice of final action in the March 16, 2006 Federal Register. The Census Bureau also provides the following correspondence tables: (1) 2007 NAICS–US matched to 2002 NAICS–US; and (2) 2002 NAICS–US matched to 2007 NAICS–US. How SBA Arrived at the Size Standards for NAICS 2007 Industries On October 22, 1999, SBA published in the Federal Register (64 FR 57188) a proposed rule to establish a new table of small business size standards based on the NAICS. SBA developed guidelines to transition from the SIC System to NAICS. The guidelines were intended to minimize the impact of a new industry classification system on SBA’s small business size standards. Table 1, below, lists those guidelines. SBA received no negative comments to the guidelines specified in the proposed rule. Because the guidelines produced the desired results and received public acceptance, SBA published a final rule on May 5, 2000 (65 FR 3825) (corrected on September 5, 2000, 65 FR 53533) establishing a new table of size standards based on NAICS without change from its proposed rule. For purposes of adopting NAICS 2007, SBA is proposing to apply the same guidelines in this rule. TABLE 1 If the NAICS 2007 Industry is composed of: The size standard for the NAICS Industry will be: 1. One NAICS 2002 industry or part of one NAICS 2002 industry ......... 2. More than one NAICS 2002 industry; parts of more than one NAICS 2002 industry; or one or more NAICS 2002 industry and part(s) of one or more NAICS 2002 industry, and they all have the same size standard. 3. More than one NAICS 2002 industry; parts of more than one NAICS 2002 industry; or one or more NAICS 2002 industry and part(s) of one or more NAICS 2002 industry, and they do not all have the same size standard. 4. One or more parts of an NAICS 2002 industry for which SBA has established specific size standards (i.e., further segmented). 5. One or more NAICS 2002 industries and/or parts of NAICS 2002 industries that were categorized broadly under the NAICS system as Services, Retail Trade, Wholesale Trade or Manufacturing, but are now categorized differently under NAICS. The same size standard as for the NAICS 2002 industry or part. The same size standard as for those NAICS 2002 industries or parts of NAICS 2002 industries. ebenthall on PRODPC61 with PROPOSALS Additions to and Deletions From NAICS 2002 for NAICS 2007 It is important to note the following: VerDate Aug<31>2005 15:07 Aug 28, 2007 Jkt 211001 The same size standard as for the NAICS 2002 industry or NAICS 2002 industry part(s) that most closely matches the economic activity described by the NAICS 2007 industry. The same size standard as for that specific NAICS 2002 industry part. SBA will (a) apply a size standard measure (e.g., number of employees, annual receipts) typical of the NAICS Sector; and (b) apply the corresponding ‘‘anchor’’ size standard. The ‘‘anchor’’ size standards are $6.5 million (effective December 6, 2005) for Services and Retail Trade, 500 employees for Manufacturing and 100 employees for Wholesale Trade (except for Federal procurement programs, where the standard is 500 employees under the non-manufacturer rule). 1. NAICS 2007 changes affect 59 NAICS 2002 industries. 2. One NAICS 2002 Subsector and 12 NAICS 2002 industries were eliminated PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 and their activities reclassified in other more appropriate or new NAICS 2007 industries as listed in Table 2: E:\FR\FM\29AUP1.SGM 29AUP1 Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules 49671 TABLE 2 NAICS 2002 code NAICS 339111 Subsector 516 NAICS 516110 NAICS 517211 NAICS 517212 NAICS 517310 NAICS 517510 NAICS 517910 NAICS 518111 NAICS 518112 NAICS 525930 NAICS 541710 NAICS 561310 NAICS 2002 industry description ................................................... .................................................... ................................................... ................................................... ................................................... ................................................... ................................................... ................................................... ................................................... ................................................... ................................................... ................................................... ................................................... Laboratory Apparatus and Furniture Manufacturing. Internet Publishing and Broadcasting. Internet Publishing and Broadcasting. Paging. Cellular and Other Wireless Telecommunications. Telecommunications Resellers. Cable and Other Program Distribution. Other Telecommunications. Internet Service Providers. Web Search Portals. Real Estate Investment Trusts. Research and Development in the Physical, Engineering, and Life Sciences. Employment Placement Agencies. 3. The following eight industries listed in Table 3 are new in NAICS 2007: TABLE 3 NAICS 2007 code NAICS NAICS NAICS NAICS NAICS NAICS 517210 517911 517919 519130 541711 541712 NAICS 2007 industry description ................................................... ................................................... ................................................... ................................................... ................................................... ................................................... NAICS 561311 ................................................... NAICS 561312 ................................................... Changes in Size Standards Resulting From SBA’s Proposed Adoption of NAICS 2007 Most of the industries in NAICS 2002 remain unchanged under NAICS 2007. This proposal to adopt NAICS 2007 will change size standards for only three industries and four activities from parts of industries. Other changes in NAICS 2007 consist of revised industry descriptions or the reclassification of Wireless Telecommunications Carriers (except Satellite). Telecommunications Resellers. All Other Telecommunications. Internet Publishing and Broadcasting and Web Search Portals. Research and Development in Biotechnology. Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Employment Placement Agencies. Executive Search Services. industry activities in other industries having the same size standard. Table 4 lists all of OMB’s modifications to the NAICS 2002 industries. The first three columns show the modified NAICS 2002 industry’s sixdigit code, its current size standard, and its industry description. The last three columns show the NAICS 2007 industry (new, existing and revised) that incorporates the modified NAICS 2002 industry, its industry description, and new size standard. By comparing the modified NAICS 2002 industry and size standard with the related NAICS 2007 industry and size standard, a user can identify the size standard SBA proposes for the applicable NAICS 2007 industries. Following Table 4, SBA explains the basis for the limited number of cases that do result in a change to the size standard. TABLE 4.—THIS TABLE INCLUDES ONLY THOSE NAICS CODES WHERE SIZE STANDARDS ARE AFFECTED. THEY ARE ARRANGED ACCORDING TO THE ORDER OF THEIR NAICS 2007 INDUSTRY CODES Current size standards 2002 NAICS U.S. description 111211 ...... *111219 ..... $0.75 million ............... $0.75 million ............... *111219 ..... $0.75 million ............... *111998 ..... ebenthall on PRODPC61 with PROPOSALS 2002 NAICS code $0.75 million ............... 112519 ...... *111998 ..... $0.75 million ............... $0.75 million ............... 314999 ...... 500 employees ........... Potato Farming. Other Vegetable (except Potato) and Melon Farming—sweet potato and yam farming. Other Vegetable (except Potato) and Melon Farming—except sweet potato and yam farming. All Other Miscellaneous Crop Farming—except algae, seaweed, and other plant aquaculture. Other Animal Aquaculture. All Other Miscellaneous Crop Farming— algae, seaweed, and other plant aquaculture. All Other Miscellaneous Textile Product Mills. VerDate Aug<31>2005 15:07 Aug 28, 2007 Jkt 211001 PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 2007 NAICS code 2007 NAICS U.S. description New size standards 111211 Potato Farming ........... 111219 Other Vegetable (ex$0.75 million. cept Potato) and Melon Farming. All Other Miscella$0.75 million. neous Crop Farming. 111998 112519 Other Aquaculture ...... E:\FR\FM\29AUP1.SGM 29AUP1 $0.75 million. $0.75 million. 49672 Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules TABLE 4.—THIS TABLE INCLUDES ONLY THOSE NAICS CODES WHERE SIZE STANDARDS ARE AFFECTED. THEY ARE ARRANGED ACCORDING TO THE ORDER OF THEIR NAICS 2007 INDUSTRY CODES—Continued Current size standards 2002 NAICS U.S. description *315211 ..... 500 employees ........... *315212 ..... 500 employees ........... Men’s and Boys’ Cut and Sew Apparel Contractors—embroidery contractors. Women’s, Girls’ and Infants’ Cut and Sew Apparel Contractors—embroidery contractors. 314999 *315211 ..... 500 employees ........... Men’s and Boys’ Cut and Sew Apparel Contractors—except embroidery contractors. 315211 *315212 ..... 500 employees ........... 500 employees ........... Women’s, Girls’ and Infants’ Cut and Sew Apparel Contractors—except embroidery contractors. All Other Plastics Product Manufacturing—except inflatable plastic boats. 315212 *326199 ..... *326291 ..... 500 employees ........... *326299 ..... 500 employees ........... *326291 ..... 500 employees ........... 333298 ...... *339111 ..... 500 employees ........... 500 employees ........... 333415 ...... 750 employees ........... *339111 ..... 500 employees ........... 333994 ...... 500 employees ........... *339111 ..... 500 employees ........... 333997 ...... 500 employees ........... *339111 ..... 500 employees ........... 333999 ...... 500 employees ........... *339111 ..... 500 employees ........... *334220 ..... 750 employees ........... Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing—except communications signal testing and evaluation equipment. 334515 ...... 500 employees ........... *334220 ..... ebenthall on PRODPC61 with PROPOSALS 2002 NAICS code 750 employees ........... Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals. Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing—communications signal testing and evaluation equipment. 334515 Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals. 500 employees. 336612 ...... *326199 ..... 500 employees ........... 500 employees ........... *326299 ..... 500 employees ........... 336612 Boat Building .............. 500 employees. 337127 ...... 500 employees ........... Boat Building. All Other Plastics Product Manufacturing—inflatable plastics boats. All Other Rubber Product Manufacturing—inflatable rubber boats. Institutional Furniture Manufacturing. VerDate Aug<31>2005 15:07 Aug 28, 2007 2007 NAICS code Rubber Product Manufacturing for Mechanical Use—except rubber tubing for mechanical use. All Other Rubber Product Manufacturing—except inflatable rubber boats. Rubber Product Manufacturing for Mechanical Use—rubber tubing for mechanical use. All Other Industrial Machinery Manufacturing. Laboratory Apparatus and Furniture Manufacturing—laboratory distilling equipment. Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing. Laboratory Apparatus and Furniture Manufacturing—laboratory freezers. Industrial Process Furnace and Oven Manufacturing. Laboratory Apparatus and Furniture Manufacturing—laboratory furnaces and ovens. Scale and Balance (except Laboratory) Manufacturing. Laboratory Apparatus and Furniture Manufacturing—laboratory scales and balances. All Other Miscellaneous General Purpose Machinery Manufacturing. Laboratory Apparatus and Furniture Manufacturing—laboratory centrifuges. Jkt 211001 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 2007 NAICS U.S. description New size standards All Other Miscellaneous Textile Product Mills. Men’s and Boys’ Cut and Sew Apparel Contractors. Women’s, Girls’ and Infants’ Cut and Sew Apparel Contractors. All Other Plastics Product Manufacturing. Rubber Product Manufacturing for Mechanical Use. 500 employees. 326299 All Other Rubber Product Manufacturing. 500 employees. 333298 All Other Industrial Machinery Manufacturing. 500 employees. 333415 Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing. 750 employees. 333994 Industrial Process Furnace and Oven Manufacturing. 500 employees. 333997 Scale and Balance Manufacturing. 500 employees. 333999 All Other Miscellaneous General Purpose Machinery Manufacturing. Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing. 500 employees. 326199 326291 334220 E:\FR\FM\29AUP1.SGM 29AUP1 500 employees. 500 employees. 500 employees. 500 employees. 750 employees. Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules 49673 TABLE 4.—THIS TABLE INCLUDES ONLY THOSE NAICS CODES WHERE SIZE STANDARDS ARE AFFECTED. THEY ARE ARRANGED ACCORDING TO THE ORDER OF THEIR NAICS 2007 INDUSTRY CODES—Continued Current size standards 2002 NAICS U.S. description *339111 ..... 500 employees ........... 339113 ...... 500 employees ........... *339111 ..... 500 employees ........... 517110 ...... 517510 ...... *518111 ..... 1500 employees ......... $13.5 million ............... $23.0 million ............... 517211 ...... 517212 ...... 1500 employees ......... 1500 employees ......... Laboratory Apparatus and Furniture Manufacturing—laboratory furniture (e.g., stools, tables, benches). Surgical Appliance and Supplies Manufacturing. Laboratory Apparatus and Furniture Manufacturing—except laboratory furniture, scales, balances, furnaces, ovens, centrifuges, distilling equipment, and freezers. Wired Telecommunications Carriers. Cable and Other Program Distribution. Internet Service Providers—broadband Internet service providers (e.g., cable, DSL). Paging. Cellular and Other Wireless Telecommunications. 517310 ...... 1500 employees ......... Telecommunications Resellers ........................ 517911 517910 ...... $13.5 million ............... Other Telecommunications .............................. 517919 *518111 ..... $23.0 million ............... 516110 ...... 500 employees ........... Internet Service Providers ISPs providing services via client-supplied telecommunications connections. Internet Publishing and Broadcasting .............. 518112 ...... 519190 ...... $6.5 million ................. $6.5 million ................. Web Search Portals. All Other Information Services ......................... 525990 ...... *525930 ..... $6.5 million ................. $6.5 million ................. 531110 ...... $6.5 million ................. *525930 ..... $6.5 million ................. 531120 ...... $6.5 million ................. *525930 ..... $6.5 million ................. Other Financial Vehicles. Real Estate Investment Trusts—hybrid or mortgage REITs primarily in underwriting or investing in mortgages. Lessors of Residential Buildings and Dwellings. Real Estate Investment Trusts—hybrid or equity REITs primarily leasing residential Buildings and Dwellings. Lessors of Nonresidential Buildings (except Miniwarehouses). Real Estate Investment Trusts—hybrid or equity REITs primarily leasing nonresidential buildings. 531130 ...... $23.5 million ............... *525930 ..... $6.5 million ................. 531190 ...... *525930 ..... $6.5 million ................. $6.5 million ................. *541612 ..... $6.5 million ................. *541710 ..... ebenthall on PRODPC61 with PROPOSALS 2002 NAICS code 500 employees ........... *541710 ..... 500 employees ........... 561310 ...... $6.5 million ................. VerDate Aug<31>2005 15:07 Aug 28, 2007 2007 NAICS code Lessors of Miniwarehouses and Self-Storage Units. Real Estate Investment Trusts—hybrid or equity REITs primarily leasing miniwarehouses and self-storage units. Lessors of Other Real Estate Property.. Real Estate Investment Trusts—hybrid or equity REITs primarily leasing other real estate property. Human Resources and Executive Search Consulting Services—except executive search consulting services. Research and Development in the Physical, Engineering, and Life Sciences—biotechnology research and development. Research and Development in the Physical, Engineering, and Life Sciences—except biotechnology research and development. Employment Placement Agencies ................... Jkt 211001 PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 2007 NAICS U.S. description New size standards 337127 Institutional Furniture Manufacturing. 500 employees. 339113 Surgical Appliance and Supplies Manufacturing. 500 employees. 517110 Wired Telecommunications Carriers. 1500 employees. 517210 Wireless Telecommunications Carriers (except Satellite). Telecommunications Resellers. All Other Telecommunications. 1500 employees. 519130 Internet Publishing and Broadcasting and Web Search Portals. 500 employees. 519190 All Other Information Services. $6.5 million. 525990 Other Financial Vehicles. $6.5 million. 531110 Lessors of Residential Buildings and Dwellings. $6.5 million. 531120 Lessors of Nonresidential Buildings (except Miniwarehouses). $6.5 million. 531130 Lessors of Miniwarehouses and Self-Storage Units. $23.5 million. 531190 Lessors of Other Real Estate Property. $6.5 million. 541612 Human Resources Consulting Services. $6.5 million. 541711 Research and Development in Biotechnology. Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Employment Placement Agencies.. 500 employees. 541712 561311 E:\FR\FM\29AUP1.SGM 29AUP1 1500 employees. $23.0 million. 500 employees. $6.5 million. 49674 Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules TABLE 4.—THIS TABLE INCLUDES ONLY THOSE NAICS CODES WHERE SIZE STANDARDS ARE AFFECTED. THEY ARE ARRANGED ACCORDING TO THE ORDER OF THEIR NAICS 2007 INDUSTRY CODES—Continued 2002 NAICS code Current size standards 2002 NAICS U.S. description 2007 NAICS code *541612 ..... $6.5 million ................. Human Resources and Executive Search Consulting Services—executive search consulting services. 2007 NAICS U.S. description 561312 Executive Search Services. New size standards $6.5 million. ebenthall on PRODPC61 with PROPOSALS * Indicates that this activity within the identified NAICS 2002 code is now an activity within the related NAICS 2007 industry. As shown in Table 4, the NAICS 2007 modifications lead to a proposed revision to the current size standard for a limited number of industries or activities. The basis for the revisions to seven size standards are discussed below: 1. NAICS 339111, ‘‘Laboratory Apparatus and Furniture Manufacturing,’’ (part) laboratory freezers. NAICS 2007 eliminated NAICS 339111. The various activities of NAICS 339111 are reclassified in other NAICS 2007 codes having the same 500 employee size standard, except for laboratory freezer manufacturing. Laboratory freezer manufacturing is reclassified in NAICS 333415, ‘‘AirConditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing,’’ having a size standard of 750 employees. SBA proposes to retain the 750 employee size standard for NAICS 333415 because laboratory freezer manufacturing represents a small part of that industry (Rule #3). 2. NAICS 334220, ‘‘Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing,’’ (part) communications signal testing and evaluation equipment. The current size standard for NAICS 334220 is 750 employees. The activity of ‘‘communications signal testing and evaluation equipment manufacturing’’ in NAICS 2007 is reclassified in NAICS 334515, ‘‘Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals,’’ having a size standard of 500 employees. SBA proposes to retain the 500 employee size standard for NAICS 334515 because ‘‘communications signal testing and evaluation equipment manufacturing’’ represents a small part of that industry (Rule #3). 3. NAICS 518111, ‘‘Internet Service Providers,’’ (part) broadband Internet service providers (e.g., cable, DSL). The current size standard for NAICS 518111 is $23.0 million in average annual receipts. The activity, ‘‘broadband Internet services providers (e.g., cable, DSL),’’ in NAICS 2007 is reclassified in VerDate Aug<31>2005 15:07 Aug 28, 2007 Jkt 211001 NAICS 517110, ‘‘Wired Telecommunications Carriers,’’ having a 1,500 employee size standard. SBA proposes to retain the 1,500 employee size standard for NAICS 517110 because broadband Internet services providers represent a small part of that industry (Rule #3). 4. NAICS 517510, ‘‘Cable and Other Program Distribution.’’ NAICS 2007 eliminated NAICS 517510. The current size standard for NAICS 517510 is $13.5 million in average annual receipts. In NAICS 2007, all activities of NAICS 517510 are reclassified in 517110, ‘‘Wired Telecommunications Carriers,’’ having a 1,500 employee size standard. SBA proposes to apply the 1,500 employee size standard for NAICS 517110 because the Cable and Other Program Distribution industry is much smaller than the Wired Telecommunications Carriers industry (Rule #3). 5. NAICS 517910, ‘‘Other Telecommunications.’’ NAICS 2007 eliminated NAICS 517910. NAICS 2007 establishes a new industry titled ‘‘All Other Telecommunications,’’ NAICS 517919, comprising all activities of NAICS 517910 having a size standard of $13.5 million and most activities from NAICS 518111, ‘‘Internet Service Providers (ISP),’’ having a size standard of $23 million. As discussed in # 3 above, the activity of ‘‘broadband Internet services providers’’ in NAICS 518111 is reclassified in NAICS 517110. SBA proposes to apply the $23 million size standard for that industry because ISP establishments providing services via client-supplied telecommunications connections represent the larger component of the new NAICS 517919 (Rule #3). 6. NAICS 518112, ‘‘Web Search Portals.’’ NAICS 2007 eliminated NAICS 518112 and NAICS 516110, ‘‘Internet Publishing and Broadcasting,’’ having size standards of $6.5 million and 500 employees, respectively. NAICS 2007 combines these two industries to form a new six-digit industry—NAICS 519130, ‘‘Internet Publishing and Broadcasting and Web Search Portals.’’ SBA proposes to apply the 500 employee size standard PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 for NAICS 519130 because the Internet Publishing and Broadcasting industry is much larger than the Web Search Portals industry (Rule #3). 7. NAICS 525930, ‘‘Real Estate Investment Trusts,’’ (part) hybrid or equity REITs primarily leasing miniwarehouses and self-storage units. NAICS 2007 eliminated NAICS 525930. The various activities of NAICS 525930 are reclassified in NAICS 2007 codes having the same $6.5 million size standard, except for the activity of hybrid or equity REITs primarily leasing miniwarehouses and self-storage units. That activity is reclassified in NAICS 531130, ‘‘Lessors of Miniwarehouses and Self-Storage Units,’’ having a $23.5 million size standard. SBA proposes to retain the $23.5 million size standard for NAICS 531130 because hybrid or equity REITs primarily leasing miniwarehouses and self-storage units represent a small part of that industry (Rule #3). Alternatives to Adopting NAICS 2007 That SBA Considered SBA considered retaining the NAICS 2002 codes as the basis for small business size standards. However, SBA believes that doing so will lead to inconsistency among Federal agencies that adopt NAICS 2007 for their programs. More importantly, if SBA does not adopt NAICS 2007 it will not be able to analyze and evaluate small business size standards adequately because available Census Bureau data based on NAICS 2007 industries will not be comparable with NAICS 2002 industry data. Without useful data, SBA cannot properly analyze size standards and their effects on businesses. SBA considered segmenting the modified NAICS 2002 size standard for cases where the size standard changes instead of applying the guidelines used in previous NAICS revisions. SBA believes this alternative is impractical because it would complicate size standards for minor reasons. Furthermore, the application of the guidelines for NAICS 2007 results in the loss of eligibility for currently-defined small businesses in only one minor E:\FR\FM\29AUP1.SGM 29AUP1 Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules industry activity. That occurs for ‘‘communications signal testing and evaluation equipment manufacturing,’’ a part of NAICS 334220, ‘‘Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing.’’ The size standard for that activity decreases from 750 employees to 500 employees. A search of the Dynamic Small Business Search (DSBS) reveals that there are 38 small businesses out of 2,200 small businesses registered in NAICS 334220 having more than 500 employees. However, it is unlikely that many of these businesses, if any, will be affected given the limited activity of ‘‘communications signal testing and evaluation equipment manufacturing.’’ All other activities in NAICS 334220 will continue to have a size standard of 750 employees. Consideration of Comments SBA will take in account all submitted comments on this proposed rule and on the alternatives it considered. SBA believes that this proposal is routine and noncontroversial. Therefore, SBA is publishing concurrently in this issue of the Federal Register a direct final rule to expedite modifying its size standards as explained in this proposed rule. If SBA decides to adopt NAICS 2007 as proposed, or with limited modifications, it will publish a final rule that addresses the comments and explains the basis for its final decision. ebenthall on PRODPC61 with PROPOSALS Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork Reduction Act (44 U.S.C. Ch. 35.) and the Regulatory Flexibility Act (5 U.S.C. 601–612) OMB has determined that this proposed rule is not a ‘‘significant’’ regulatory action for purposes of Executive Order (E.O.) 12866. This proposed rule incorporates the latest revisions of the NAICS, which SBA uses to identify industries in the United States economy for purposes of establishing small business size standards. As discussed in the preamble, the size standard of a limited number of activities would change because of the NAICS revisions. Almost all businesses currently defined as small under the NAICS 2002 industries would continue to be small under the NAICS 2007 industries, if adopted for size standards. The rule also affects Federal Government programs that provide a benefit for small businesses. SBA welcomes comments describing the impact on small businesses of the size standard changes resulting from this rule. VerDate Aug<31>2005 15:07 Aug 28, 2007 Jkt 211001 For purposes of E.O. 12988, SBA has determined that this rule is drafted, to the extent practicable, in accordance with the standards set forth in that order. For purposes of E.O. 13132, SBA has determined that this rule does not have any federalism implications warranting the preparation of a Federalism Assessment. For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA has determined that this rule does not impose any new reporting or recordkeeping requirements. When an agency promulgates a proposed rule, the Regulatory Flexibility Act (5 U.S.C. 601–612) requires the agency to prepare an initial regulatory flexibility analysis (IRFA) describing the potential economic impact of the rule on small entities and alternatives that may minimize that impact. Section 605 of the RFA allows an agency to certify a rule, in lieu of preparing an IRFA, if the rulemaking is not expected to have a significant economic impact on a substantial number of small entities. SBA has determined that this proposed rule as drafted, including the alternatives discussed in the supplementary information above, will not have a significant impact on a substantial number of small entities. OMB’s NAICS 2007 modifications will result in size standards changes to a minimal number of activities within certain industries detailed above in the supplementary information, with little, if any, affect on small businesses. Those activities are now part of other, more appropriate or new NAICS codes and their industry descriptions. There will be no changes to the size standards for most NAICS industries and their economic activities. For those that would change, they would create a larger number of enterprises that can qualify for Federal government programs reserved for small businesses. As stated above, a search of the Dynamic Small Business Search (DSBS) reveals that there are 38 small businesses out of 2,200 small businesses registered in NAICS 334220 having more than 500 employees. However, it is unlikely that many of these businesses, if any, will be affected given the limited activity of ‘‘communications signal testing and evaluation equipment manufacturing.’’ All other activities in NAICS 334220 will continue to have a size standard of 750 employees. Therefore, SBA believes that the impact on small businesses will be minimal because these activities represent relatively minor components of the NAICS 2002 industries. PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 49675 When SBA published a direct final rule to replace the table of small business size standards based on NAICS 1997 with a new one based on NAICS 2002, it certified that for purposes of the Regulatory Flexibility Act, the rule would affect a significant number of small businesses, but that the impact on each business would not be substantial. (67 FR 52597 to 52606, 62292, 67253 and 67102) SBA received no comments to the contrary. No changes have occurred since then. Adopting NAICS 2007 to replace NAICS 2002 as the basis for its table of size standards would have, SBA believes, an even smaller impact. List of Subjects in 13 CFR Part 121 Administrative practice and procedure, Government procurement, Government property, Grant programs— business, Individuals with disabilities, Loan programs—business, Reporting and recordkeeping requirements, Small businesses. For the reasons set forth in the preamble, SBA proposes to amend 13 CFR part 121 as follows: PART 121—SMALL BUSINESS SIZE REGULATIONS 1. The authority citation for part 121 continues to read as follows: Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 637(a), 644, and 662(5); and Pub. L. 105–135, Sec. 401, et seq., 111 Stat. 2592. § 121.201 [Amended] 2. Amend § 121.201, in the table ‘‘Small Business Size Standards by NAICS Industry,’’ as follows: a. Revise the industry description of NAICS code 112519 ‘‘Other Animal Aquaculture’’ to read ‘‘Other Aquaculture.’’ b. Revise the heading ‘‘Sector 21— Mining’’ to read ‘‘Sector 21—Mining, Quarrying, and Oil and Gas Extraction.’’ c. Revise the industry description of NAICS code 238210, ‘‘Electrical Contractors,’’ to read ‘‘Electrical Contractors and other Wiring Installation Contractors.’’ d. Revise the industry description of NAICS code 316999, ‘‘All Other Leather Good Manufacturing,’’ to read ‘‘All Other Leather Good and Allied Product Manufacturing.’’ e. Revise the industry description of NAICS code 322221, ‘‘Coated and Laminated Packaging Paper and Plastics Film Manufacturing,’’ to read ‘‘Coated and Laminated Packaging Paper Manufacturing.’’ f. Revise the industry description of NAICS code 326111, ‘‘Unsupported Plastics Bag Manufacturing,’’ to read E:\FR\FM\29AUP1.SGM 29AUP1 49676 Federal Register / Vol. 72, No. 167 / Wednesday, August 29, 2007 / Proposed Rules ‘‘Plastics Bag and Pouch Manufacturing.’’ g. Revise the industry description of NAICS code 333997, ‘‘Scale and Balance (except Laboratory) Manufacturing,’’ to read ‘‘Scale and Balance Manufacturing.’’ h. Remove the entry NAICS code 339111, ‘‘Laboratory Apparatus and Furniture Manufacturing.’’ i. Revise the industry description of NAICS code 441221, ‘‘Motorcycle 517210 ........ Telecommunications Resellers ...................................................................................................................... All Other Telecommunications ....................................................................................................................... ........ ........ ........ ........ ........ ebenthall on PRODPC61 with PROPOSALS 1,500 ................ Providers,’’ and 518112, ‘‘Web Search Portals’’. q. Add immediately after entry for NAICS code 519120, ‘‘ Libraries and Archives’’ the following: ................ 500 t. Remove the entry NAICS code 541710, ‘‘Research and Development in the Physical, Engineering, and Life Sciences,’’ and add in its place the following: 15:07 Aug 28, 2007 Jkt 211001 11500 11500 1,500 1,000 1,000 Agencies,’’ and add in its place the following: Employment Placement Agencies ................................................................................................................. Executive Search Services ............................................................................................................................ v. Revise the industry description of NAICS code 561422, ‘‘Telemarketing Bureaus,’’ to read ‘‘Telemarketing Bureaus and Other Contact Centers.’’ w. Revise the industry description of NAICS code 722212, ‘‘Cafeterias,’’ to read ‘‘Cafeterias, Grill Buffets, and Buffets.’’ x. Revise the heading ‘‘Sector 81— Other Services’’ to read ‘‘Sector 81— Other Services (except Public Administration).’’ VerDate Aug<31>2005 s. Revise the industry description of NAICS code 541612, ‘‘Human Resources and Executive Search Consulting Services,’’ to read ‘‘Human Resources Consulting Services.’’ ................ $23.5 Research and Development in Biotechnology 11 ........................................................................................... Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) 11 .... Aircraft ............................................................................................................................................................ Aircraft Parts, and Auxiliary Equipment, and Aircraft Engine Parts .............................................................. Space Vehicles and Guided Missiles, their Propulsion Units, their Propulsion Units Parts, and their Auxiliary Equipment and Parts. u. Remove the entry for NAICS code 561310, ‘‘Employment Placement 561311 ........ 561312 ........ Processing, Hosting, and Related Services.’’ p. Remove the entries for NAICS codes 518111, ‘‘Internet Service Internet Publishing and Broadcasting and Web Search Portals ................................................................... r. Revise the heading ‘‘Subsector 523—Financial Investments and Related Activities’’ to read ‘‘Subsector 523— Securities, Commodity Contracts, and Other Financial Investments and Related Activities.’’ 541711 541712 Except, Except, Except, 1,500 ‘‘Other Telecommunications,’’ and add in their place the following: o. Revise the heading ‘‘Subsector 518—Internet Service Providers, Web Search Portals, and Data Processing Services’’ to read ‘‘Subsector 518—Data 519130 ........ Broadcasting’’ and the entry for NAICS code 516110, ‘‘Internet Publishing and Broadcasting.’’ m. Remove the entries for NAICS codes 517211, ‘‘Paging;’’ 517212, ‘‘Cellular and Wireless Telecommunications;’’ and, 517310 ‘‘Telecommunications Resellers’’ and add in their place the following: Wireless Telecommunications Carriers (except Satellite) ............................................................................. n. Remove the entries for NAICS codes 517510, ‘‘Cable and Other Program Distribution,’’ and 517910, 517911 ........ 517919 ........ Dealers,’’ to read ‘‘Motorcycle, ATV, and Personal Watercraft Dealers.’’ j. Revise the heading ‘‘Sectors 48— 49—Transportation’’ to read ‘‘Sectors 48—49—Transportation and Warehousing.’’ k. Revise the industry description of NAICS code 492110, ‘‘Couriers,’’ to read ‘‘Couriers and Express Delivery Services.’’ l. Remove the heading ‘‘Subsector 516—Internet Publishing and y. Amend footnote 11 by removing ‘‘NAICS code 541710’’ and adding in its place ‘‘NAICS codes 541711 and 541712.’’ Dated: August 23, 2007. Steven C. Preston, Administrator. [FR Doc. E7–17150 Filed 8–28–07; 8:45 am] BILLING CODE 8025–01–P PO 00000 $6.5 6.5 DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA–2007–28529; Airspace Docket No. 07–ANM–12] Proposed Modification of Class E Airspace; Tucson, AZ Federal Aviation Administration (FAA), DOT. AGENCY: Frm 00009 Fmt 4702 Sfmt 4702 ................ ................ E:\FR\FM\29AUP1.SGM 29AUP1

Agencies

[Federal Register Volume 72, Number 167 (Wednesday, August 29, 2007)]
[Proposed Rules]
[Pages 49669-49676]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-17150]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AF68


Small Business Size Standards; Adoption of 2007 North American 
Industry Classification System for Size Standards

AGENCY: Small Business Administration.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA) proposes to amend 
its Small Business Size Regulations by incorporating the Office of 
Management and Budget's (OMB) 2007 modifications to the North American 
Industry Classification System (NAICS) in its table of small business 
size standards. These modifications are few in number and result in 
revisions to size standards for three industries and four activities 
within other industries.
    SBA believes that this proposal is routine and non-controversial, 
and the Agency anticipates no significant adverse comment. Therefore, 
SBA is publishing concurrently in this issue of the Federal Register a 
direct final rule to expedite modifying its Small

[[Page 49670]]

Business Size Regulations as described in this proposed rule. If SBA 
receives any significant adverse comment to the direct final rule, it 
will withdraw it, and consider those comments in connection with this 
proposed rule.

DATES: SBA must receive comments to this proposed rule on or before 
September 28, 2007.

ADDRESSES: You may submit comments, identified by RIN 3245-AF68, by any 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail, for paper, disk, or CD/ROM submissions: Gary M. 
Jackson, Division Chief for Size Standards, 409 Third Street, SW., Mail 
Code 6530, Washington, DC 20416.
     Hand Delivery/Courier: Gary M. Jackson, Division Chief for 
Size Standards, 409 Third Street, SW., Mail Code 6530, Washington, DC 
20416.
    SBA will post all comments on www.regulations.gov. If you wish to 
submit confidential business information (CBI) as defined in the User 
Notice at www.regulations.gov, please submit the information to Carl J. 
Jordan, Office of Size Standards, 409 Third Street, SW., Mail Code 
6530, Washington, DC 20416, or send an email to sizestandards@sba.gov. 
Highlight the information that you consider to be CBI and explain why 
you believe SBA should hold this information as confidential. SBA will 
review the information and make the final determination of whether it 
will publish the information or not.

FOR FURTHER INFORMATION CONTACT: Carl Jordan, Office of Size Standards, 
at (202) 205-6618 or sizestandards@sba.gov.

SUPPLEMENTARY INFORMATION: SBA adopted the NAICS industry definitions 
as a basis for its table of small business size standards effective 
October 1, 2000, as a replacement to the discontinued Standard 
Industrial Classification (SIC) System (65 FR 30836, May 15, 2000). 
Since that time, OMB has issued two updates modifying the NAICS. SBA 
incorporated OMB's first updated modifications, termed NAICS 2002 (66 
FR 3825, January 16, 2001), in its table of size standards effective 
October 1, 2002 (67 FR 52597, August 13, 2002). OMB published its most 
recent updates, termed NAICS 2007, on May 16, 2006 (71 FR 28532). SBA 
is proposing adoption of those updated modifications in its table of 
small business size standards, as explained below.
    For complete information on the relationship between NAICS 2002 and 
NAICS 2007, please see the U.S. Bureau of the Census (Census Bureau) 
Web site at https://www.census.gov/epcd/www/naicsdoc.htm#fedreg. That 
Census Bureau Web site provides complete information on its 
establishment and implementation of NAICS 2007, including its notice of 
final action in the March 16, 2006 Federal Register. The Census Bureau 
also provides the following correspondence tables: (1) 2007 NAICS-US 
matched to 2002 NAICS-US; and (2) 2002 NAICS-US matched to 2007 NAICS-
US.

How SBA Arrived at the Size Standards for NAICS 2007 Industries

    On October 22, 1999, SBA published in the Federal Register (64 FR 
57188) a proposed rule to establish a new table of small business size 
standards based on the NAICS. SBA developed guidelines to transition 
from the SIC System to NAICS. The guidelines were intended to minimize 
the impact of a new industry classification system on SBA's small 
business size standards. Table 1, below, lists those guidelines. SBA 
received no negative comments to the guidelines specified in the 
proposed rule. Because the guidelines produced the desired results and 
received public acceptance, SBA published a final rule on May 5, 2000 
(65 FR 3825) (corrected on September 5, 2000, 65 FR 53533) establishing 
a new table of size standards based on NAICS without change from its 
proposed rule. For purposes of adopting NAICS 2007, SBA is proposing to 
apply the same guidelines in this rule.

                                 Table 1
------------------------------------------------------------------------
 If the NAICS 2007 Industry is composed  The size standard for the NAICS
                  of:                           Industry will be:
------------------------------------------------------------------------
1. One NAICS 2002 industry or part of    The same size standard as for
 one NAICS 2002 industry.                 the NAICS 2002 industry or
                                          part.
2. More than one NAICS 2002 industry;    The same size standard as for
 parts of more than one NAICS 2002        those NAICS 2002 industries or
 industry; or one or more NAICS 2002      parts of NAICS 2002
 industry and part(s) of one or more      industries.
 NAICS 2002 industry, and they all have
 the same size standard.
3. More than one NAICS 2002 industry;    The same size standard as for
 parts of more than one NAICS 2002        the NAICS 2002 industry or
 industry; or one or more NAICS 2002      NAICS 2002 industry part(s)
 industry and part(s) of one or more      that most closely matches the
 NAICS 2002 industry, and they do not     economic activity described by
 all have the same size standard.         the NAICS 2007 industry.
4. One or more parts of an NAICS 2002    The same size standard as for
 industry for which SBA has established   that specific NAICS 2002
 specific size standards (i.e., further   industry part.
 segmented).
5. One or more NAICS 2002 industries     SBA will (a) apply a size
 and/or parts of NAICS 2002 industries    standard measure (e.g., number
 that were categorized broadly under      of employees, annual receipts)
 the NAICS system as Services, Retail     typical of the NAICS Sector;
 Trade, Wholesale Trade or                and (b) apply the
 Manufacturing, but are now categorized   corresponding ``anchor'' size
 differently under NAICS.                 standard. The ``anchor'' size
                                          standards are $6.5 million
                                          (effective December 6, 2005)
                                          for Services and Retail Trade,
                                          500 employees for
                                          Manufacturing and 100
                                          employees for Wholesale Trade
                                          (except for Federal
                                          procurement programs, where
                                          the standard is 500 employees
                                          under the non-manufacturer
                                          rule).
------------------------------------------------------------------------

Additions to and Deletions From NAICS 2002 for NAICS 2007

    It is important to note the following:
    1. NAICS 2007 changes affect 59 NAICS 2002 industries.
    2. One NAICS 2002 Subsector and 12 NAICS 2002 industries were 
eliminated and their activities reclassified in other more appropriate 
or new NAICS 2007 industries as listed in Table 2:

[[Page 49671]]



                                 Table 2
------------------------------------------------------------------------
           NAICS 2002 code              NAICS 2002 industry description
------------------------------------------------------------------------
NAICS 339111.........................  Laboratory Apparatus and
                                        Furniture Manufacturing.
Subsector 516........................  Internet Publishing and
                                        Broadcasting.
NAICS 516110.........................  Internet Publishing and
                                        Broadcasting.
NAICS 517211.........................  Paging.
NAICS 517212.........................  Cellular and Other Wireless
                                        Telecommunications.
NAICS 517310.........................  Telecommunications Resellers.
NAICS 517510.........................  Cable and Other Program
                                        Distribution.
NAICS 517910.........................  Other Telecommunications.
NAICS 518111.........................  Internet Service Providers.
NAICS 518112.........................  Web Search Portals.
NAICS 525930.........................  Real Estate Investment Trusts.
NAICS 541710.........................  Research and Development in the
                                        Physical, Engineering, and Life
                                        Sciences.
NAICS 561310.........................  Employment Placement Agencies.
------------------------------------------------------------------------

    3. The following eight industries listed in Table 3 are new in 
NAICS 2007:

                                 Table 3
------------------------------------------------------------------------
           NAICS 2007 code              NAICS 2007 industry description
------------------------------------------------------------------------
NAICS 517210.........................  Wireless Telecommunications
                                        Carriers (except Satellite).
NAICS 517911.........................  Telecommunications Resellers.
NAICS 517919.........................  All Other Telecommunications.
NAICS 519130.........................  Internet Publishing and
                                        Broadcasting and Web Search
                                        Portals.
NAICS 541711.........................  Research and Development in
                                        Biotechnology.
NAICS 541712.........................  Research and Development in the
                                        Physical, Engineering, and Life
                                        Sciences (except Biotechnology).
NAICS 561311.........................  Employment Placement Agencies.
NAICS 561312.........................  Executive Search Services.
------------------------------------------------------------------------

Changes in Size Standards Resulting From SBA's Proposed Adoption of 
NAICS 2007

    Most of the industries in NAICS 2002 remain unchanged under NAICS 
2007. This proposal to adopt NAICS 2007 will change size standards for 
only three industries and four activities from parts of industries. 
Other changes in NAICS 2007 consist of revised industry descriptions or 
the reclassification of industry activities in other industries having 
the same size standard.
    Table 4 lists all of OMB's modifications to the NAICS 2002 
industries. The first three columns show the modified NAICS 2002 
industry's six-digit code, its current size standard, and its industry 
description. The last three columns show the NAICS 2007 industry (new, 
existing and revised) that incorporates the modified NAICS 2002 
industry, its industry description, and new size standard. By comparing 
the modified NAICS 2002 industry and size standard with the related 
NAICS 2007 industry and size standard, a user can identify the size 
standard SBA proposes for the applicable NAICS 2007 industries. 
Following Table 4, SBA explains the basis for the limited number of 
cases that do result in a change to the size standard.

    Table 4.--This Table Includes Only Those NAICS Codes Where Size Standards Are Affected. They Are Arranged
                            According to the Order of Their NAICS 2007 Industry Codes
----------------------------------------------------------------------------------------------------------------
                                                               2007
2002 NAICS code     Current size        2002 NAICS U.S.       NAICS     2007 NAICS U.S.    New size  standards
                     standards            description          code       description
----------------------------------------------------------------------------------------------------------------
111211.........  $0.75 million....  Potato Farming.
*111219........  $0.75 million....  Other Vegetable            111211  Potato Farming..  $0.75 million.
                                     (except Potato) and
                                     Melon Farming--sweet
                                     potato and yam
                                     farming.
*111219........  $0.75 million....  Other Vegetable            111219  Other Vegetable   $0.75 million.
                                     (except Potato) and                (except Potato)
                                     Melon Farming--except              and Melon
                                     sweet potato and yam               Farming.
                                     farming.
*111998........  $0.75 million....  All Other                  111998  All Other         $0.75 million.
                                     Miscellaneous Crop                 Miscellaneous
                                     Farming--except                    Crop Farming.
                                     algae, seaweed, and
                                     other plant
                                     aquaculture.
112519.........  $0.75 million....  Other Animal
                                     Aquaculture.
*111998........  $0.75 million....  All Other                  112519  Other             $0.75 million.
                                     Miscellaneous Crop                 Aquaculture.
                                     Farming--algae,
                                     seaweed, and other
                                     plant aquaculture.
314999.........  500 employees....  All Other
                                     Miscellaneous Textile
                                     Product Mills.

[[Page 49672]]

 
*315211........  500 employees....  Men's and Boys' Cut
                                     and Sew Apparel
                                     Contractors--embroide
                                     ry contractors.
*315212........  500 employees....  Women's, Girls' and        314999  All Other         500 employees.
                                     Infants' Cut and Sew               Miscellaneous
                                     Apparel Contractors--              Textile Product
                                     embroidery                         Mills.
                                     contractors.
*315211........  500 employees....  Men's and Boys' Cut        315211  Men's and Boys'   500 employees.
                                     and Sew Apparel                    Cut and Sew
                                     Contractors--except                Apparel
                                     embroidery                         Contractors.
                                     contractors.
*315212........  500 employees....  Women's, Girls' and        315212  Women's, Girls'   500 employees.
                                     Infants' Cut and Sew               and Infants'
                                     Apparel Contractors--              Cut and Sew
                                     except embroidery                  Apparel
                                     contractors.                       Contractors.
*326199........  500 employees....  All Other Plastics         326199  All Other         500 employees.
                                     Product                            Plastics
                                     Manufacturing--except              Product
                                     inflatable plastic                 Manufacturing.
                                     boats.
*326291........  500 employees....  Rubber Product             326291  Rubber Product    500 employees.
                                     Manufacturing for                  Manufacturing
                                     Mechanical Use--                   for Mechanical
                                     except rubber tubing               Use.
                                     for mechanical use.
*326299........  500 employees....  All Other Rubber
                                     Product
                                     Manufacturing--except
                                     inflatable rubber
                                     boats.
*326291........  500 employees....  Rubber Product             326299  All Other Rubber  500 employees.
                                     Manufacturing for                  Product
                                     Mechanical Use--                   Manufacturing.
                                     rubber tubing for
                                     mechanical use.
333298.........  500 employees....  All Other Industrial
                                     Machinery
                                     Manufacturing.
*339111........  500 employees....  Laboratory Apparatus       333298  All Other         500 employees.
                                     and Furniture                      Industrial
                                     Manufacturing--labora              Machinery
                                     tory distilling                    Manufacturing.
                                     equipment.
333415.........  750 employees....  Air-Conditioning and
                                     Warm Air Heating
                                     Equipment and
                                     Commercial and
                                     Industrial
                                     Refrigeration
                                     Equipment
                                     Manufacturing.
*339111........  500 employees....  Laboratory Apparatus       333415  Air-Conditioning  750 employees.
                                     and Furniture                      and Warm Air
                                     Manufacturing--labora              Heating
                                     tory freezers.                     Equipment and
                                                                        Commercial and
                                                                        Industrial
                                                                        Refrigeration
                                                                        Equipment
                                                                        Manufacturing.
333994.........  500 employees....  Industrial Process
                                     Furnace and Oven
                                     Manufacturing.
*339111........  500 employees....  Laboratory Apparatus       333994  Industrial        500 employees.
                                     and Furniture                      Process Furnace
                                     Manufacturing--labora              and Oven
                                     tory furnaces and                  Manufacturing.
                                     ovens.
333997.........  500 employees....  Scale and Balance
                                     (except Laboratory)
                                     Manufacturing.
*339111........  500 employees....  Laboratory Apparatus       333997  Scale and         500 employees.
                                     and Furniture                      Balance
                                     Manufacturing--labora              Manufacturing.
                                     tory scales and
                                     balances.
333999.........  500 employees....  All Other
                                     Miscellaneous General
                                     Purpose Machinery
                                     Manufacturing.
*339111........  500 employees....  Laboratory Apparatus       333999  All Other         500 employees.
                                     and Furniture                      Miscellaneous
                                     Manufacturing--labora              General Purpose
                                     tory centrifuges.                  Machinery
                                                                        Manufacturing.
*334220........  750 employees....  Radio and Television       334220  Radio and         750 employees.
                                     Broadcasting and                   Television
                                     Wireless                           Broadcasting
                                     Communications                     and Wireless
                                     Equipment                          Communications
                                     Manufacturing--except              Equipment
                                     communications signal              Manufacturing.
                                     testing and
                                     evaluation equipment.
334515.........  500 employees....  Instrument
                                     Manufacturing for
                                     Measuring and Testing
                                     Electricity and
                                     Electrical Signals.
*334220........  750 employees....  Radio and Television       334515  Instrument        500 employees.
                                     Broadcasting and                   Manufacturing
                                     Wireless                           for Measuring
                                     Communications                     and Testing
                                     Equipment                          Electricity and
                                     Manufacturing--commun              Electrical
                                     ications signal                    Signals.
                                     testing and
                                     evaluation equipment.
336612.........  500 employees....  Boat Building.
*326199........  500 employees....  All Other Plastics
                                     Product
                                     Manufacturing--inflat
                                     able plastics boats.
*326299........  500 employees....  All Other Rubber           336612  Boat Building...  500 employees.
                                     Product
                                     Manufacturing--inflat
                                     able rubber boats.
337127.........  500 employees....  Institutional
                                     Furniture
                                     Manufacturing.

[[Page 49673]]

 
*339111........  500 employees....  Laboratory Apparatus       337127  Institutional     500 employees.
                                     and Furniture                      Furniture
                                     Manufacturing--labora              Manufacturing.
                                     tory furniture (e.g.,
                                     stools, tables,
                                     benches).
339113.........  500 employees....  Surgical Appliance and
                                     Supplies
                                     Manufacturing.
*339111........  500 employees....  Laboratory Apparatus       339113  Surgical          500 employees.
                                     and Furniture                      Appliance and
                                     Manufacturing--except              Supplies
                                     laboratory furniture,              Manufacturing.
                                     scales, balances,
                                     furnaces, ovens,
                                     centrifuges,
                                     distilling equipment,
                                     and freezers.
517110.........  1500 employees...  Wired
                                     Telecommunications
                                     Carriers.
517510.........  $13.5 million....  Cable and Other
                                     Program Distribution.
*518111........  $23.0 million....  Internet Service           517110  Wired             1500 employees.
                                     Providers--broadband               Telecommunicati
                                     Internet service                   ons Carriers.
                                     providers (e.g.,
                                     cable, DSL).
517211.........  1500 employees...  Paging.
517212.........  1500 employees...  Cellular and Other         517210  Wireless          1500 employees.
                                     Wireless                           Telecommunicati
                                     Telecommunications.                ons Carriers
                                                                        (except
                                                                        Satellite).
517310.........  1500 employees...  Telecommunications         517911  Telecommunicatio  1500 employees.
                                     Resellers.                         ns Resellers.
517910.........  $13.5 million....  Other                      517919  All Other         $23.0 million.
                                     Telecommunications.                Telecommunicati
                                                                        ons.
*518111........  $23.0 million....  Internet Service
                                     Providers ISPs
                                     providing services
                                     via client-supplied
                                     telecommunications
                                     connections.
516110.........  500 employees....  Internet Publishing        519130  Internet          500 employees.
                                     and Broadcasting.                  Publishing and
                                                                        Broadcasting
                                                                        and Web Search
                                                                        Portals.
518112.........  $6.5 million.....  Web Search Portals.
519190.........  $6.5 million.....  All Other Information      519190  All Other         $6.5 million.
                                     Services.                          Information
                                                                        Services.
525990.........  $6.5 million.....  Other Financial
                                     Vehicles.
*525930........  $6.5 million.....  Real Estate Investment     525990  Other Financial   $6.5 million.
                                     Trusts--hybrid or                  Vehicles.
                                     mortgage REITs
                                     primarily in
                                     underwriting or
                                     investing in
                                     mortgages.
531110.........  $6.5 million.....  Lessors of Residential
                                     Buildings and
                                     Dwellings.
*525930........  $6.5 million.....  Real Estate Investment     531110  Lessors of        $6.5 million.
                                     Trusts--hybrid or                  Residential
                                     equity REITs                       Buildings and
                                     primarily leasing                  Dwellings.
                                     residential Buildings
                                     and Dwellings.
531120.........  $6.5 million.....  Lessors of
                                     Nonresidential
                                     Buildings (except
                                     Miniwarehouses).
*525930........  $6.5 million.....  Real Estate Investment     531120  Lessors of        $6.5 million.
                                     Trusts--hybrid or                  Nonresidential
                                     equity REITs                       Buildings
                                     primarily leasing                  (except
                                     nonresidential                     Miniwarehouses).
                                     buildings.
531130.........  $23.5 million....  Lessors of
                                     Miniwarehouses and
                                     Self-Storage Units.
*525930........  $6.5 million.....  Real Estate Investment     531130  Lessors of        $23.5 million.
                                     Trusts--hybrid or                  Miniwarehouses
                                     equity REITs                       and Self-
                                     primarily leasing                  Storage Units.
                                     miniwarehouses and
                                     self-storage units.
531190.........  $6.5 million.....  Lessors of Other Real
                                     Estate Property..
*525930........  $6.5 million.....  Real Estate Investment     531190  Lessors of Other  $6.5 million.
                                     Trusts--hybrid or                  Real Estate
                                     equity REITs                       Property.
                                     primarily leasing
                                     other real estate
                                     property.
*541612........  $6.5 million.....  Human Resources and        541612  Human Resources   $6.5 million.
                                     Executive Search                   Consulting
                                     Consulting Services--              Services.
                                     except executive
                                     search consulting
                                     services.
*541710........  500 employees....  Research and               541711  Research and      500 employees.
                                     Development in the                 Development in
                                     Physical,                          Biotechnology.
                                     Engineering, and Life
                                     Sciences--biotechnolo
                                     gy research and
                                     development.
*541710........  500 employees....  Research and               541712  Research and      500 employees.
                                     Development in the                 Development in
                                     Physical,                          the Physical,
                                     Engineering, and Life              Engineering,
                                     Sciences--except                   and Life
                                     biotechnology                      Sciences
                                     research and                       (except
                                     development.                       Biotechnology).
561310.........  $6.5 million.....  Employment Placement       561311  Employment        $6.5 million.
                                     Agencies.                          Placement
                                                                        Agencies..

[[Page 49674]]

 
*541612........  $6.5 million.....  Human Resources and        561312  Executive Search  $6.5 million.
                                     Executive Search                   Services.
                                     Consulting Services--
                                     executive search
                                     consulting services.
----------------------------------------------------------------------------------------------------------------
* Indicates that this activity within the identified NAICS 2002 code is now an activity within the related NAICS
  2007 industry.

    As shown in Table 4, the NAICS 2007 modifications lead to a 
proposed revision to the current size standard for a limited number of 
industries or activities. The basis for the revisions to seven size 
standards are discussed below:
    1. NAICS 339111, ``Laboratory Apparatus and Furniture 
Manufacturing,'' (part) laboratory freezers. NAICS 2007 eliminated 
NAICS 339111. The various activities of NAICS 339111 are reclassified 
in other NAICS 2007 codes having the same 500 employee size standard, 
except for laboratory freezer manufacturing. Laboratory freezer 
manufacturing is reclassified in NAICS 333415, ``Air-Conditioning and 
Warm Air Heating Equipment and Commercial and Industrial Refrigeration 
Equipment Manufacturing,'' having a size standard of 750 employees. SBA 
proposes to retain the 750 employee size standard for NAICS 333415 
because laboratory freezer manufacturing represents a small part of 
that industry (Rule 3).
    2. NAICS 334220, ``Radio and Television Broadcasting and Wireless 
Communications Equipment Manufacturing,'' (part) communications signal 
testing and evaluation equipment. The current size standard for NAICS 
334220 is 750 employees. The activity of ``communications signal 
testing and evaluation equipment manufacturing'' in NAICS 2007 is 
reclassified in NAICS 334515, ``Instrument Manufacturing for Measuring 
and Testing Electricity and Electrical Signals,'' having a size 
standard of 500 employees. SBA proposes to retain the 500 employee size 
standard for NAICS 334515 because ``communications signal testing and 
evaluation equipment manufacturing'' represents a small part of that 
industry (Rule 3).
    3. NAICS 518111, ``Internet Service Providers,'' (part) broadband 
Internet service providers (e.g., cable, DSL). The current size 
standard for NAICS 518111 is $23.0 million in average annual receipts. 
The activity, ``broadband Internet services providers (e.g., cable, 
DSL),'' in NAICS 2007 is reclassified in NAICS 517110, ``Wired 
Telecommunications Carriers,'' having a 1,500 employee size standard. 
SBA proposes to retain the 1,500 employee size standard for NAICS 
517110 because broadband Internet services providers represent a small 
part of that industry (Rule 3).
    4. NAICS 517510, ``Cable and Other Program Distribution.'' NAICS 
2007 eliminated NAICS 517510. The current size standard for NAICS 
517510 is $13.5 million in average annual receipts. In NAICS 2007, all 
activities of NAICS 517510 are reclassified in 517110, ``Wired 
Telecommunications Carriers,'' having a 1,500 employee size standard. 
SBA proposes to apply the 1,500 employee size standard for NAICS 517110 
because the Cable and Other Program Distribution industry is much 
smaller than the Wired Telecommunications Carriers industry (Rule 
3).
    5. NAICS 517910, ``Other Telecommunications.'' NAICS 2007 
eliminated NAICS 517910. NAICS 2007 establishes a new industry titled 
``All Other Telecommunications,'' NAICS 517919, comprising all 
activities of NAICS 517910 having a size standard of $13.5 million and 
most activities from NAICS 518111, ``Internet Service Providers 
(ISP),'' having a size standard of $23 million. As discussed in 
 3 above, the activity of ``broadband Internet services 
providers'' in NAICS 518111 is reclassified in NAICS 517110. SBA 
proposes to apply the $23 million size standard for that industry 
because ISP establishments providing services via client-supplied 
telecommunications connections represent the larger component of the 
new NAICS 517919 (Rule 3).
    6. NAICS 518112, ``Web Search Portals.'' NAICS 2007 eliminated 
NAICS 518112 and NAICS 516110, ``Internet Publishing and 
Broadcasting,'' having size standards of $6.5 million and 500 
employees, respectively. NAICS 2007 combines these two industries to 
form a new six-digit industry--NAICS 519130, ``Internet Publishing and 
Broadcasting and Web Search Portals.'' SBA proposes to apply the 500 
employee size standard for NAICS 519130 because the Internet Publishing 
and Broadcasting industry is much larger than the Web Search Portals 
industry (Rule 3).
    7. NAICS 525930, ``Real Estate Investment Trusts,'' (part) hybrid 
or equity REITs primarily leasing miniwarehouses and self-storage 
units. NAICS 2007 eliminated NAICS 525930. The various activities of 
NAICS 525930 are reclassified in NAICS 2007 codes having the same $6.5 
million size standard, except for the activity of hybrid or equity 
REITs primarily leasing miniwarehouses and self-storage units. That 
activity is reclassified in NAICS 531130, ``Lessors of Miniwarehouses 
and Self-Storage Units,'' having a $23.5 million size standard. SBA 
proposes to retain the $23.5 million size standard for NAICS 531130 
because hybrid or equity REITs primarily leasing miniwarehouses and 
self-storage units represent a small part of that industry (Rule 
3).

Alternatives to Adopting NAICS 2007 That SBA Considered

    SBA considered retaining the NAICS 2002 codes as the basis for 
small business size standards. However, SBA believes that doing so will 
lead to inconsistency among Federal agencies that adopt NAICS 2007 for 
their programs. More importantly, if SBA does not adopt NAICS 2007 it 
will not be able to analyze and evaluate small business size standards 
adequately because available Census Bureau data based on NAICS 2007 
industries will not be comparable with NAICS 2002 industry data. 
Without useful data, SBA cannot properly analyze size standards and 
their effects on businesses.
    SBA considered segmenting the modified NAICS 2002 size standard for 
cases where the size standard changes instead of applying the 
guidelines used in previous NAICS revisions. SBA believes this 
alternative is impractical because it would complicate size standards 
for minor reasons. Furthermore, the application of the guidelines for 
NAICS 2007 results in the loss of eligibility for currently-defined 
small businesses in only one minor

[[Page 49675]]

industry activity. That occurs for ``communications signal testing and 
evaluation equipment manufacturing,'' a part of NAICS 334220, ``Radio 
and Television Broadcasting and Wireless Communications Equipment 
Manufacturing.'' The size standard for that activity decreases from 750 
employees to 500 employees. A search of the Dynamic Small Business 
Search (DSBS) reveals that there are 38 small businesses out of 2,200 
small businesses registered in NAICS 334220 having more than 500 
employees. However, it is unlikely that many of these businesses, if 
any, will be affected given the limited activity of ``communications 
signal testing and evaluation equipment manufacturing.'' All other 
activities in NAICS 334220 will continue to have a size standard of 750 
employees.

Consideration of Comments

    SBA will take in account all submitted comments on this proposed 
rule and on the alternatives it considered. SBA believes that this 
proposal is routine and non-controversial. Therefore, SBA is publishing 
concurrently in this issue of the Federal Register a direct final rule 
to expedite modifying its size standards as explained in this proposed 
rule. If SBA decides to adopt NAICS 2007 as proposed, or with limited 
modifications, it will publish a final rule that addresses the comments 
and explains the basis for its final decision.

Compliance With Executive Orders 12866, 12988, and 13132, the Paperwork 
Reduction Act (44 U.S.C. Ch. 35.) and the Regulatory Flexibility Act (5 
U.S.C. 601-612)

    OMB has determined that this proposed rule is not a ``significant'' 
regulatory action for purposes of Executive Order (E.O.) 12866. This 
proposed rule incorporates the latest revisions of the NAICS, which SBA 
uses to identify industries in the United States economy for purposes 
of establishing small business size standards. As discussed in the 
preamble, the size standard of a limited number of activities would 
change because of the NAICS revisions. Almost all businesses currently 
defined as small under the NAICS 2002 industries would continue to be 
small under the NAICS 2007 industries, if adopted for size standards. 
The rule also affects Federal Government programs that provide a 
benefit for small businesses. SBA welcomes comments describing the 
impact on small businesses of the size standard changes resulting from 
this rule.
    For purposes of E.O. 12988, SBA has determined that this rule is 
drafted, to the extent practicable, in accordance with the standards 
set forth in that order.
    For purposes of E.O. 13132, SBA has determined that this rule does 
not have any federalism implications warranting the preparation of a 
Federalism Assessment.
    For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA 
has determined that this rule does not impose any new reporting or 
recordkeeping requirements.
    When an agency promulgates a proposed rule, the Regulatory 
Flexibility Act (5 U.S.C. 601-612) requires the agency to prepare an 
initial regulatory flexibility analysis (IRFA) describing the potential 
economic impact of the rule on small entities and alternatives that may 
minimize that impact. Section 605 of the RFA allows an agency to 
certify a rule, in lieu of preparing an IRFA, if the rulemaking is not 
expected to have a significant economic impact on a substantial number 
of small entities. SBA has determined that this proposed rule as 
drafted, including the alternatives discussed in the supplementary 
information above, will not have a significant impact on a substantial 
number of small entities.
    OMB's NAICS 2007 modifications will result in size standards 
changes to a minimal number of activities within certain industries 
detailed above in the supplementary information, with little, if any, 
affect on small businesses. Those activities are now part of other, 
more appropriate or new NAICS codes and their industry descriptions. 
There will be no changes to the size standards for most NAICS 
industries and their economic activities. For those that would change, 
they would create a larger number of enterprises that can qualify for 
Federal government programs reserved for small businesses.
    As stated above, a search of the Dynamic Small Business Search 
(DSBS) reveals that there are 38 small businesses out of 2,200 small 
businesses registered in NAICS 334220 having more than 500 employees. 
However, it is unlikely that many of these businesses, if any, will be 
affected given the limited activity of ``communications signal testing 
and evaluation equipment manufacturing.'' All other activities in NAICS 
334220 will continue to have a size standard of 750 employees. 
Therefore, SBA believes that the impact on small businesses will be 
minimal because these activities represent relatively minor components 
of the NAICS 2002 industries.
    When SBA published a direct final rule to replace the table of 
small business size standards based on NAICS 1997 with a new one based 
on NAICS 2002, it certified that for purposes of the Regulatory 
Flexibility Act, the rule would affect a significant number of small 
businesses, but that the impact on each business would not be 
substantial. (67 FR 52597 to 52606, 62292, 67253 and 67102) SBA 
received no comments to the contrary. No changes have occurred since 
then. Adopting NAICS 2007 to replace NAICS 2002 as the basis for its 
table of size standards would have, SBA believes, an even smaller 
impact.

List of Subjects in 13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Individuals with 
disabilities, Loan programs--business, Reporting and recordkeeping 
requirements, Small businesses.

    For the reasons set forth in the preamble, SBA proposes to amend 13 
CFR part 121 as follows:

PART 121--SMALL BUSINESS SIZE REGULATIONS

    1. The authority citation for part 121 continues to read as 
follows:

    Authority: 15 U.S.C. 632, 634(b)(6), 636(b), 637(a), 644, and 
662(5); and Pub. L. 105-135, Sec. 401, et seq., 111 Stat. 2592.


Sec.  121.201  [Amended]

    2. Amend Sec.  121.201, in the table ``Small Business Size 
Standards by NAICS Industry,'' as follows:
    a. Revise the industry description of NAICS code 112519 ``Other 
Animal Aquaculture'' to read ``Other Aquaculture.''
    b. Revise the heading ``Sector 21--Mining'' to read ``Sector 21--
Mining, Quarrying, and Oil and Gas Extraction.''
    c. Revise the industry description of NAICS code 238210, 
``Electrical Contractors,'' to read ``Electrical Contractors and other 
Wiring Installation Contractors.''
    d. Revise the industry description of NAICS code 316999, ``All 
Other Leather Good Manufacturing,'' to read ``All Other Leather Good 
and Allied Product Manufacturing.''
    e. Revise the industry description of NAICS code 322221, ``Coated 
and Laminated Packaging Paper and Plastics Film Manufacturing,'' to 
read ``Coated and Laminated Packaging Paper Manufacturing.''
    f. Revise the industry description of NAICS code 326111, 
``Unsupported Plastics Bag Manufacturing,'' to read

[[Page 49676]]

``Plastics Bag and Pouch Manufacturing.''
    g. Revise the industry description of NAICS code 333997, ``Scale 
and Balance (except Laboratory) Manufacturing,'' to read ``Scale and 
Balance Manufacturing.''
    h. Remove the entry NAICS code 339111, ``Laboratory Apparatus and 
Furniture Manufacturing.''
    i. Revise the industry description of NAICS code 441221, 
``Motorcycle Dealers,'' to read ``Motorcycle, ATV, and Personal 
Watercraft Dealers.''
    j. Revise the heading ``Sectors 48--49--Transportation'' to read 
``Sectors 48--49--Transportation and Warehousing.''
    k. Revise the industry description of NAICS code 492110, 
``Couriers,'' to read ``Couriers and Express Delivery Services.''
    l. Remove the heading ``Subsector 516--Internet Publishing and 
Broadcasting'' and the entry for NAICS code 516110, ``Internet 
Publishing and Broadcasting.''
    m. Remove the entries for NAICS codes 517211, ``Paging;'' 517212, 
``Cellular and Wireless Telecommunications;'' and, 517310 
``Telecommunications Resellers'' and add in their place the following:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
517210...................  Wireless                 .........      1,500
                            Telecommunications
                            Carriers (except
                            Satellite).
------------------------------------------------------------------------

    n. Remove the entries for NAICS codes 517510, ``Cable and Other 
Program Distribution,'' and 517910, ``Other Telecommunications,'' and 
add in their place the following:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
517911...................  Telecommunications       .........      1,500
                            Resellers.
517919...................  All Other                    $23.5  .........
                            Telecommunications.
------------------------------------------------------------------------

    o. Revise the heading ``Subsector 518--Internet Service Providers, 
Web Search Portals, and Data Processing Services'' to read ``Subsector 
518--Data Processing, Hosting, and Related Services.''
    p. Remove the entries for NAICS codes 518111, ``Internet Service 
Providers,'' and 518112, ``Web Search Portals''.
    q. Add immediately after entry for NAICS code 519120, `` Libraries 
and Archives'' the following:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
519130...................  Internet Publishing and  .........        500
                            Broadcasting and Web
                            Search Portals.
------------------------------------------------------------------------

    r. Revise the heading ``Subsector 523--Financial Investments and 
Related Activities'' to read ``Subsector 523--Securities, Commodity 
Contracts, and Other Financial Investments and Related Activities.''
    s. Revise the industry description of NAICS code 541612, ``Human 
Resources and Executive Search Consulting Services,'' to read ``Human 
Resources Consulting Services.''
    t. Remove the entry NAICS code 541710, ``Research and Development 
in the Physical, Engineering, and Life Sciences,'' and add in its place 
the following:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
541711...................  Research and             .........    \11\500
                            Development in
                            Biotechnology \11\.
541712...................  Research and             .........    \11\500
                            Development in the
                            Physical, Engineering,
                            and Life Sciences
                            (except Biotechnology)
                            \11\.
Except,..................  Aircraft...............  .........      1,500
Except,..................  Aircraft Parts, and      .........      1,000
                            Auxiliary Equipment,
                            and Aircraft Engine
                            Parts.
Except,..................  Space Vehicles and       .........      1,000
                            Guided Missiles, their
                            Propulsion Units,
                            their Propulsion Units
                            Parts, and their
                            Auxiliary Equipment
                            and Parts.
------------------------------------------------------------------------

    u. Remove the entry for NAICS code 561310, ``Employment Placement 
Agencies,'' and add in its place the following:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
561311...................  Employment Placement          $6.5  .........
                            Agencies.
561312...................  Executive Search               6.5  .........
                            Services.
------------------------------------------------------------------------

    v. Revise the industry description of NAICS code 561422, 
``Telemarketing Bureaus,'' to read ``Telemarketing Bureaus and Other 
Contact Centers.''
    w. Revise the industry description of NAICS code 722212, 
``Cafeterias,'' to read ``Cafeterias, Grill Buffets, and Buffets.''
    x. Revise the heading ``Sector 81--Other Services'' to read 
``Sector 81--Other Services (except Public Administration).''
    y. Amend footnote 11 by removing ``NAICS code 541710'' and adding 
in its place ``NAICS codes 541711 and 541712.''

    Dated: August 23, 2007.
Steven C. Preston,
Administrator.
 [FR Doc. E7-17150 Filed 8-28-07; 8:45 am]
BILLING CODE 8025-01-P
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