Intermediary Relending Program, 31845-31848 [2014-12633]
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Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations
NSIIC Board. Based on funding, the
Board announces that proposals may be
submitted to the Board for consideration
from eligible entities. The Board
determines how funds are allocated.
Proposals submitted to the Board must
be consistent with the purpose of the
NSIIC.
Discussion of Interim Regulatory Text
As provided under 2014 Farm Bill,
the AMS is amending the National
Sheep Industry Improvement Center
regulations at 7 CFR Part 63. This
interim rule redesignates (1) the
statutory authority from section 375 (7
U.S.C. 2008j) of the Consolidated Farm
and Rural Development Act to the
Agricultural Marketing Act of 1946 (7
U.S.C. 1621–1627), (2) amends the
definition of the Act under section 63.1
consistent with the redesignated
statutory authority, and (3) amends the
regulations by increasing the
administrative cap for the use of the
funds from 3 percent to 10 percent.
Pursuant to 5 U.S.C. 553, it is found
and determined upon good cause that it
is impracticable and contrary to the
public interest to give preliminary
notice prior to putting this rule into
effect and that good cause exists for not
postponing the effective date of this rule
until 30 days after publication in the
Federal Register because: (1) These
changes need to be in effect as soon as
possible because the next available
funding opportunities are scheduled to
begin in July; and (2) the amendments
are necessary to implement provision
under the 2014 Farm Bill. For these
same reasons a 30-day comment period
is deemed appropriate.
List of Subjects in 7 CFR Part 63
Administrative practice and
procedure, Advertising, Lamb and lamb
products, Goat and goat products,
Consumer information, Marketing
agreements, Reporting and
recordkeeping requirements.
For the reasons set forth in the
preamble, Chapter I of Title 7 of the
Code of Federal Regulations is amended
as follows:
PART 63—NATIONAL SHEEP
INDUSTRY IMPROVEMENT CENTER
1. Revise the authority for part 63 to
read as follows:
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■
Authority: 7 U.S.C. 1621–1627.
2. Revise § 63.1, Act, to read as
follows:
■
§ 63.1
Act.
Act means the Agricultural Marketing
Act of 1946 (7 U.S.C. 1621–1627).
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3. In § 63.301 revise paragraph (a)(6)
to read as follows:
■
§ 63.301
Use of Fund.
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*
*
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*
(a) * * *
(6) For administration purposes, with
a maximum 10 percent of the NSIIC
Fund balance at the beginning of each
fiscal year for the administration of the
NSIIC;
*
*
*
*
*
Dated: May 27, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014–12589 Filed 6–2–14; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1951
Rural Business-Cooperative Service
Rural Utilities Service
7 CFR Part 4274
RIN 0570–AA86
Intermediary Relending Program
Rural Business-Cooperative
Service, Rural Housing Service, Rural
Utilities Service, and Farm Service
Agency, USDA.
ACTION: Direct final rule.
AGENCY:
The Rural BusinessCooperative Service (RBS) amends its
regulations for the Intermediary
Relending Program (IRP). This action is
critical to immediately address three
major items. First, the Agricultural Act
of 2014 incorporates the IRP into the
Consolidated Farm and Rural
Development Act (Con Act). Therefore
the IRP will now be subject to the Con
Act, Section 343(a)(13) ‘‘rural and rural
area’’ definition. Second, the Agency is
making the following changes based on
an Office of Inspector General (OIG)
audit: Removing part of the definition of
revolved funds to eliminate public
confusion on its applicability; providing
stronger guidance on items that should
be taken into consideration when
approving subsequent loans; defining
what is meant by promptly relending
collections from loans made from the
SUMMARY:
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31845
revolving loan fund account; and
providing clarification when prior
Agency concurrence is needed to make
loans. Finally, the Agency is removing
provisions for Rural Development Loan
Fund (RDLF) servicing as there are no
longer any active RDLF accounts.
DATES: This direct final rule is effective
September 2, 2014, unless RBS receives
a written significant adverse comment
or written notice of intent to submit a
significant adverse comment on any
provision other than the definition of
‘‘rural or rural area’’ on or before August
4, 2014. Since the definition of ‘‘rural or
rural area’’ is statutory, RBS is unable to
change the definition of ‘‘rural or rural
area’’ even if significant adverse
comments are received.
If RBS receives a significant adverse
comment on any provision of this rule
other than the definition of ‘‘rural or
rural area,’’ we will publish a timely
document in the Federal Register
informing the public that that provision
will not take effect. The rule provisions
that are not withdrawn will become
effective on September 2, 2014,
notwithstanding a significant adverse
comment on any other provision, unless
we determine that it would not be
appropriate to do so. Any significant
adverse comments will be addressed
when RBS issues a final IRP rule to
implement the proposed IRP rule that is
also being published this date.
ADDRESSES: You may submit adverse
comments or notice of intent to submit
adverse comments to this rule by any of
the following methods:
Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Mail: Submit written comments via
the U.S. Postal Service to the Branch
Chief, Regulations and Paperwork
Management Branch, U.S. Department
of Agriculture, STOP 0742, 1400
Independence Avenue SW.,
Washington, DC 20250–0742.
Hand Delivery/Courier: Submit
written comments via Federal Express
Mail or other courier service requiring a
street address to the Branch Chief,
Regulations and Paperwork
Management Branch, U.S. Department
of Agriculture, 300 7th Street SW., 7th
Floor, Washington, DC 20024.
All written comments will be
available for public inspection during
regular work hours at 300 7th Street
SW., 7th Floor address listed above.
FOR FURTHER INFORMATION CONTACT: Lori
A. Washington, Business Loan and
Grant Analyst, Specialty Programs
Division, Rural Business-Cooperative
Service, U.S. Department of Agriculture,
STOP 3225, 1400 Independence Ave.
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Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations
SW., Washington, DC 20250–3225,
Telephone (202) 720–9815, Email
lori.washington@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866—Classification
This rule has been determined to be
not significant for purposes of Executive
Order 12866 and has not been reviewed
by the Office of Management and
Budget (OMB).
Programs Affected
The Catalog of Federal Domestic
Assistance number for the program
impacted by this action is 10.767,
Intermediary Relending Program.
Executive Order 12372—
Intergovernmental Review of Federal
Programs
The IRP is subject to the provisions of
Executive Order 12372, which requires
intergovernmental consultation with
State and local officials. Rural
Development has conducted
intergovernmental consultation in the
manner delineated in RD Instruction
1940–J, ‘‘Intergovernmental Review of
Rural Development Programs and
Activities,’’ and in 7 CFR part 3015,
subpart V.
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Executive Order 12988—Civil Justice
Reform
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. In accordance with this rule: (1)
All State and local laws and regulations
that are in conflict with this rule will be
preempted, (2) no retroactive effect will
be given this rule, and (3) administrative
proceedings in accordance with the
regulations of the Agency at 7 CFR part
11 must be exhausted before bringing
suit in court challenging action taken
under this rule unless those regulations
specifically allow bringing suit at an
earlier time.
Environmental Impact Statement
This rule has been reviewed in
accordance with 7 CFR part 1940,
subpart G, ‘‘Environmental Program.’’
Rural Development has determined that
this action does not constitute a major
Federal action significantly affecting the
quality of the human environment and,
in accordance with the National
Environmental Policy Act of 1969,
Public Law 91–190, an Environmental
Impact Statement is not required.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (UMRA), Pub. L.
104–4, establishes requirements for
Federal agencies to assess the effects of
their regulatory actions on State, local,
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and tribal governments and the private
sector. Under section 202 of the UMRA,
Rural Development must prepare a
written statement, including a costbenefit analysis, for proposed and final
rules with ‘‘Federal mandates’’ that may
result in expenditures to State, local, or
tribal governments, in the aggregate, or
to the private sector of $100 million or
more in any 1 year. When such a
statement is needed for a rule, section
205 of UMRA generally requires Rural
Development to identify and consider a
reasonable number of regulatory
alternatives and adopt the least costly,
more cost effective, or least burdensome
alternative that achieves the objectives
of the rule.
This rule contains no Federal
mandates (under the regulatory
provisions of Title II of the UMRA) for
State, local, and tribal governments or
the private sector. Thus, this rule is not
subject to the requirements of sections
202 and 205 of UMRA.
relationship or the distribution of
powers and responsibilities between the
Federal Government and the Indian
tribes. Thus, the rule is not subject to
the requirements of Executive Order
13175. Additionally, on April 17, 2013,
Rural Development focused its quarterly
webinar and teleconference based Tribal
Consultation on its Rural Business
Revolving Loan Fund Programs,
including the IRP. Neither adverse nor
material comments were received
regarding the IRP during, or as a result
of, that event. Tribal Consultation
inquiries and comments should be
directed to Rural Development’s Native
American Coordinator at aian@
wdc.usda.gov or (720) 544–2911.
Regulatory Flexibility Act
In compliance with the Regulatory
Flexibility Act, Rural Development has
determined that this action would not
have a significant economic impact on
a substantial number of small entities
because the action will not affect a
significant number of small entities as
defined by the Regulatory Flexibility
Act (5 U.S.C. § 601). Rural Development
made this determination based on the
fact that this regulation only impacts
those who choose to participate in the
program. Small entity applicants will
not be impacted to a greater extent than
large entity applicants. Therefore, a
regulatory impact analysis was not
performed.
Rural Development is committed to
complying with the E-Government Act,
to promote the use of the Internet and
other information technologies to
provide increased opportunities for
citizen access to Government
information and services, and for other
purposes.
Executive Order 13132—Federalism
It has been determined under
Executive Order 13132, Federalism, that
this rule does not have sufficient
federalism implications to warrant the
preparation of a Federalism Assessment.
The provisions contained in this rule
will not have a substantial direct effect
on States or their political subdivisions
or on the distribution of power and
responsibilities among the various
levels of Government.
Executive Order 13175, Consultation
and Coordination With Indian Tribal
Governments
This executive order imposes
requirements on Rural Development in
the development of regulatory policies
that have tribal implications or preempt
tribal laws. Rural Development has
determined that the rule does not have
a substantial direct effect on one or
more Indian tribe(s) or on either the
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Paperwork Reduction Act
This rule does not revise or impose
any new information collection or
recordkeeping requirements.
E-Government Act Compliance
Background
The amendments in this rule
immediately allow the Agency to
comply with the Agricultural Act of
2014, which incorporates the IRP into
the Con Act and consequently to utilize
the Con Act ‘‘rural and rural area’’
definition for the program. Additionally,
the amendments will immediately
address the OIG audit findings
conducted in fiscal year 2010 involving
several issues that require strengthening
the Agency’s oversight controls of the
IRP program. Lastly, the Agency is also
removing provisions for RDLF because
there are no longer any active RDLF
accounts.
If RBS receives a significant adverse
comment on a provision of this rule, we
will publish a timely withdrawal in the
Federal Register informing the public
that that provision will not take effect.
The rule provisions that are not
withdrawn will become effective on the
date set out above, notwithstanding a
significant adverse comment on any
other provision, unless we determine
that it would not be appropriate to do
so.
List of Subjects
7 CFR Part 1951
Loan programs—Agriculture, rural
areas.
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Federal Register / Vol. 79, No. 106 / Tuesday, June 3, 2014 / Rules and Regulations
7 CFR Part 4274
Community development, Economic
development, Loan programs—
Business, Rural areas.
For reasons set forth in this preamble,
chapters XVIII and XLII, title 7, Code of
Federal Regulations, are amended as
follows:
103–354, revolved funds derived from
IRP funds shall be required to comply
with the provisions of these regulations
and/or loan agreement.
CHAPTER XVIII—RURAL HOUSING
SERVICE, RURAL BUSINESSCOOPERATIVE SERVICE, RURAL
UTILITIES SERVICE, AND FARM
SERVICE AGENCY, DEPARTMENT OF
AGRICULTURE
PART 4274—DIRECT AND INSURED
LOANMAKING
PART 1951—SERVICING AND
COLLECTIONS
1. The authority citation for part 1951
continues to read as follows:
■
Authority: 5 U.S.C. 301; 7 U.S.C. 1932
Note; 7 U.S.C. 1989; 31 U.S.C. 3716; 42
U.S.C. 1480.
Subpart R—Rural Development Loan
Servicing
§ 1951.851
[Amended]
2. Section 1951.851 is amended by
removing paragraph (c) and
redesignating paragraphs (d) and (e) as
paragraphs (c) and (d), respectively.
■ 3. Sections 1951.853, 1951.854,
1951.860, 1951.867, 1951.871, 1951.872,
and 1951.877 are removed and reserved.
■ 4. Section 1951.881 is amended by
revising paragraph (a) to read as follows:
■
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§ 1951.881
Loan servicing.
(a) These regulations do not negate
contractual arrangements that were
previously made by the HHS, Office of
Community Services (OCS), or the
intermediaries operating relending
programs that have already been entered
into with ultimate recipients under
previous regulations. Pre-existing
documents control when in conflict
with these regulations. The loan is
governed by terms of existing legal
documents of each intermediary. The
RDLF/IRP intermediary is responsible
for compliance with the terms and
conditions of the loan agreement. Other
than 7 CFR 1951.709(d)(1)(B)(iv),
intermediaries receiving an
unauthorized loan or using their
revolving fund for unauthorized
purposes will be serviced in accordance
with 7 CFR part 1951, subpart O.
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■ 5. Section 1951.884 is revised to read
as follows:
§ 1951.884
Revolved funds.
For ultimate recipients assisted by the
intermediary with FmHA or its
successor agency under Public Law
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CHAPTER XLII—RURAL BUSINESSCOOPERATIVE SERVICE AND RURAL
UTILITIES SERVICE, DEPARTMENT
OF AGRICULTURE
6. The authority citation for part 4274
continues to read as follows:
■
Authority: 5 U.S.C. 301; 7 U.S.C. 1932
note; 7 U.S.C. 1989.
Subpart D—Intermediary Relending
Program (IRP)
7. Section 4274.302 is amended by
removing the last sentence in the
definition of ‘‘Agency IRP loan funds,’’
removing the last sentence in the
definition of ‘‘Revolved funds,’’ and
removing the definition of ‘‘Rural area’’
and adding in its place a definition of
‘‘Rural or rural area’’ to read as follows:
■
§ 4274.302
Definitions and abbreviations.
(a) * * *
Rural or rural area. As described in 7
U.S.C. 1991(a)(13), as amended.
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■ 8. A new § 4274.304 is added to read
as follows:
§ 4274.304
Prior loans.
Any loan made under this program
prior to September 2, 2014 may submit
to the Agency a written request for an
irrevocable election to have the loan
serviced in accordance with this
subpart.
■ 9. Section 4274.331 is amended by
revising paragraph (a)(3)(ii) to read as
follows:
§ 4274.331
Loan limits.
(a) * * *
(3) * * *
(ii) The intermediary is promptly
relending all collections from loans
made from its IRP revolving fund in
excess of what is needed for required
debt service, reasonable administrative
costs approved by the Agency, and a
reasonable reserve for debt service and
uncollectible accounts. The
intermediary provides documentation to
demonstrate that funds available for
relending do not exceed the greater of
$150,000 or the total amount of loans
closed during a calendar quarter on
average, over the last 12 months.
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*
■ 10. Section 4274.332 is amended by
revising paragraphs (b)(2) and (b)(4) to
read as follows:
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§ 4274.332
31847
Post award requirements.
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(b) * * *
(2) The intermediary must submit an
annual budget of proposed
administrative costs for Agency
approval. The annual budget should
itemize cash income and cash out-flow.
Projected cash income should consist of,
but is not limited to, collection of
principal repayment, interest
repayment, interest earnings on
deposits, fees, and other income.
Projected cash out-flow should consist
of, but is not limited to, principal and
interest payments, reserve for bad debt,
and an itemization of administrative
costs to operate the IRP revolving fund.
Proceeds received from the collection of
principal repayment cannot be used for
administrative expenses. The amount
removed from the IRP revolving fund for
administrative costs in any year must be
reasonable, must not exceed the actual
cost of operating the IRP revolving fund,
including loan servicing and providing
technical assistance, and must not
exceed the amount approved by the
Agency in the intermediary’s annual
budget.
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*
*
*
(4) Any cash in the IRP revolving fund
from any source that is not needed for
debt service, approved administrative
costs, or reasonable reserves must be
available for additional loans to ultimate
recipients. Funds may not be used for
any investments in securities or
certificates of deposit of over 30-day
duration without the concurrence of
Rural Development. If funds in excess of
$250,000 have been unused to make
loans to ultimate recipients for 6 months
or more, those funds will be returned to
Rural Development unless Rural
Development provides an exception to
the intermediary. Any exception would
be based on evidence satisfactory to
Rural Development that every effort is
being made by the intermediary to
utilize the IRP funding in conformance
with program objectives.
*
*
*
*
*
■ 11. Section 4274.338 in amended by
revising paragraph (b)(9) and adding
paragraph (b)(10) to read as follows:
§ 4274.338 Loan agreements between the
Agency and the Intermediary.
*
*
*
*
*
(b) * * *
(9) If any part of the loan has not been
used in accordance with the
intermediary’s work plan by a date 3
years from the date of the loan
agreement, the Agency may cancel the
approval of any funds not yet delivered
to the intermediary and the
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intermediary will return, as an extra
payment on the loan, any funds
delivered to the intermediary that have
not been used by the intermediary in
accordance with the work plan. The
Agency, at its sole discretion, may allow
the intermediary additional time to use
the loan funds. Regular loan payments
will be based on the amount of funds
actually drawn by the intermediary.
(10) For IRP intermediaries, IRP funds
in excess of $250,000 that have not been
used to make loans to ultimate
recipients for 6 months or more will be
returned to Rural Development unless
Rural Development provides an
exception to the intermediary. Any
exception would be based on evidence
satisfactory to Rural Development that
every effort is being made by the
intermediary to utilize the IRP funding
in conformance with program
objectives.
■ 12. Section 4274.361 is amended by
revising paragraph (a) to read as follows:
§ 4274.361 Requests to make loans to
ultimate recipients.
(a) An intermediary may use revolved
funds to make loans to ultimate
recipients in accordance with
§ 4274.314(b) without obtaining prior
Agency concurrence. Prior Agency
concurrence is required when an
intermediary proposes to use Agency
IRP loan funds to make a loan to an
ultimate recipient.
*
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*
Dated: May 20, 2014.
Douglas J. O’Brien,
Deputy Under Secretary, Rural Development.
Dated: May 15, 2014.
Michael T. Scuse,
Under Secretary, Farm and Foreign
Agricultural Services.
[FR Doc. 2014–12633 Filed 6–2–14; 8:45 am]
BILLING CODE 3410–XY–P
DEFENSE NUCLEAR FACILITIES
SAFETY BOARD
10 CFR Part 1703
FOIA Fee Schedule Update
Defense Nuclear Facilities
Safety Board.
ACTION: Establishment of FOIA Fee
Schedule.
AGENCY:
The Defense Nuclear
Facilities Safety Board is publishing its
Freedom of Information Act (FOIA) Fee
Schedule Update pursuant to the
Board’s regulations.
SUMMARY:
DATES:
Effective Date: June 1, 2014.
FOR FURTHER INFORMATION CONTACT:
Mark T. Welch, General Manager,
Defense Nuclear Facilities Safety Board,
625 Indiana Avenue NW., Suite 700,
Washington, DC 20004–2901, (202) 694–
7060.
The FOIA
requires each Federal agency covered by
the Act to specify a schedule of fees
applicable to processing of requests for
agency records. 5 U.S.C. 552(a)(4)(A)(i).
On April 23, 2014 the Board published
for comment in the Federal Register its
Proposed FOIA Fee Schedule, 79 FR
22596. No comments were received in
response to that notice, and the Board
is now establishing the Fee Schedule.
Pursuant to 10 CFR 1703.107(b)(6) of
the Board’s regulations, the Board’s
General Manager will update the FOIA
Fee Schedule once every 12 months.
The previous Fee Schedule Update went
into effect on July 23, 2012. 77 FR
41258.
SUPPLEMENTARY INFORMATION:
Board Action
Accordingly, the Board issues the
following schedule of updated fees for
services performed in response to FOIA
requests:
DEFENSE NUCLEAR FACILITIES SAFETY BOARD SCHEDULE OF FEES FOR FOIA SERVICES
[Implementing 10 CFR 1703.107(b)(6)]
Search or Review Charge ........................................................................
Copy Charge (paper) ................................................................................
Electronic Media .......................................................................................
Copy Charge (audio and video cassette) ................................................
Duplication of DVD ...................................................................................
Copy Charge for large documents (e.g., maps, diagrams) .....................
Dated: May 28, 2014.
Mark T. Welch,
General Manager.
[FR Doc. 2014–12762 Filed 6–2–14; 8:45 am]
BILLING CODE 3670–01–P
SMALL BUSINESS ADMINISTRATION
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Acquisition Process: Task and
Delivery Order Contracts, Bundling,
Consolidation; Correction
Small Business Administration.
Correcting amendments.
AGENCY:
The U.S. Small Business
Administration (SBA) published a final
rule in the Federal Register on October
2, 2013, which amended its regulations
SUMMARY:
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Effective June 3, 2014.
FOR FURTHER INFORMATION CONTACT:
RIN 3245–AG20
ACTION:
governing small business prime
contracting by implementing provisions
of the Small Business Jobs Act of 2010.
That rule was published with
inadvertent errors in two of the
regulatory sections.
Those errors are corrected in this
document.
DATES:
13 CFR Parts 125 and 127
$83.00 per hour.
$.05 per page, if done in-house, or generally available commercial rate
(approximately $.10 per page).
$5.00 per electronic media.
Actual commercial rates.
$25.00 for each individual DVD; $16.50 for each duplicate DVD.
Actual commercial rates.
Jkt 232001
Dean Koppel, Office of Government
Contracting, U.S. Small Business
Administration, 409 Third Street SW.,
8th Floor, Washington, DC 20416; (202)
205–7322.
SUPPLEMENTARY INFORMATION: On
October 2, 2013, SBA published a final
rule to implement provisions of the
Small Business Jobs Act of 2010
pertaining to small business contracting
procedures. 78 FR 61114. As discussed
in detail below, the rule contained
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inadvertent errors in the instructions for
sections 125.6 and 127.503, which
affected the final regulatory text for
those sections.
In § 125.6, SBA intended to amend
paragraph (a) by revising the
introductory text only. However, the
final rule contained an instruction to
revise paragraph (a). As a result, the
final rule inadvertently removed
paragraphs (a)(1) through (a)(4). SBA is
correcting § 125.6 by reinserting these
paragraphs.
In § 127.503, SBA intended to remove
paragraphs (a)(2) and (b)(2) and
redesignate paragraphs (a)(3) and (b)(3)
as paragraphs (a)(2) and (b)(2),
respectively. However, the rule
mistakenly instructed to revise
paragraphs (a)(1), (a)(2), (b)(1), and
(b)(2). As a result of this erroneous
instruction, paragraphs (a)(3) and (b)(3)
were not redesignated and are currently
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]]>Agencies
[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Rules and Regulations]
[Pages 31845-31848]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12633]
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DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1951
Rural Business-Cooperative Service
Rural Utilities Service
7 CFR Part 4274
RIN 0570-AA86
Intermediary Relending Program
AGENCY: Rural Business-Cooperative Service, Rural Housing Service,
Rural Utilities Service, and Farm Service Agency, USDA.
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: The Rural Business-Cooperative Service (RBS) amends its
regulations for the Intermediary Relending Program (IRP). This action
is critical to immediately address three major items. First, the
Agricultural Act of 2014 incorporates the IRP into the Consolidated
Farm and Rural Development Act (Con Act). Therefore the IRP will now be
subject to the Con Act, Section 343(a)(13) ``rural and rural area''
definition. Second, the Agency is making the following changes based on
an Office of Inspector General (OIG) audit: Removing part of the
definition of revolved funds to eliminate public confusion on its
applicability; providing stronger guidance on items that should be
taken into consideration when approving subsequent loans; defining what
is meant by promptly relending collections from loans made from the
revolving loan fund account; and providing clarification when prior
Agency concurrence is needed to make loans. Finally, the Agency is
removing provisions for Rural Development Loan Fund (RDLF) servicing as
there are no longer any active RDLF accounts.
DATES: This direct final rule is effective September 2, 2014, unless
RBS receives a written significant adverse comment or written notice of
intent to submit a significant adverse comment on any provision other
than the definition of ``rural or rural area'' on or before August 4,
2014. Since the definition of ``rural or rural area'' is statutory, RBS
is unable to change the definition of ``rural or rural area'' even if
significant adverse comments are received.
If RBS receives a significant adverse comment on any provision of
this rule other than the definition of ``rural or rural area,'' we will
publish a timely document in the Federal Register informing the public
that that provision will not take effect. The rule provisions that are
not withdrawn will become effective on September 2, 2014,
notwithstanding a significant adverse comment on any other provision,
unless we determine that it would not be appropriate to do so. Any
significant adverse comments will be addressed when RBS issues a final
IRP rule to implement the proposed IRP rule that is also being
published this date.
ADDRESSES: You may submit adverse comments or notice of intent to
submit adverse comments to this rule by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov. Follow the
instructions for submitting comments.
Mail: Submit written comments via the U.S. Postal Service to the
Branch Chief, Regulations and Paperwork Management Branch, U.S.
Department of Agriculture, STOP 0742, 1400 Independence Avenue SW.,
Washington, DC 20250-0742.
Hand Delivery/Courier: Submit written comments via Federal Express
Mail or other courier service requiring a street address to the Branch
Chief, Regulations and Paperwork Management Branch, U.S. Department of
Agriculture, 300 7th Street SW., 7th Floor, Washington, DC 20024.
All written comments will be available for public inspection during
regular work hours at 300 7th Street SW., 7th Floor address listed
above.
FOR FURTHER INFORMATION CONTACT: Lori A. Washington, Business Loan and
Grant Analyst, Specialty Programs Division, Rural Business-Cooperative
Service, U.S. Department of Agriculture, STOP 3225, 1400 Independence
Ave.
[[Page 31846]]
SW., Washington, DC 20250-3225, Telephone (202) 720-9815, Email
lori.washington@wdc.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866--Classification
This rule has been determined to be not significant for purposes of
Executive Order 12866 and has not been reviewed by the Office of
Management and Budget (OMB).
Programs Affected
The Catalog of Federal Domestic Assistance number for the program
impacted by this action is 10.767, Intermediary Relending Program.
Executive Order 12372--Intergovernmental Review of Federal Programs
The IRP is subject to the provisions of Executive Order 12372,
which requires intergovernmental consultation with State and local
officials. Rural Development has conducted intergovernmental
consultation in the manner delineated in RD Instruction 1940-J,
``Intergovernmental Review of Rural Development Programs and
Activities,'' and in 7 CFR part 3015, subpart V.
Executive Order 12988--Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. In accordance with this rule: (1) All State and local
laws and regulations that are in conflict with this rule will be
preempted, (2) no retroactive effect will be given this rule, and (3)
administrative proceedings in accordance with the regulations of the
Agency at 7 CFR part 11 must be exhausted before bringing suit in court
challenging action taken under this rule unless those regulations
specifically allow bringing suit at an earlier time.
Environmental Impact Statement
This rule has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' Rural Development has determined
that this action does not constitute a major Federal action
significantly affecting the quality of the human environment and, in
accordance with the National Environmental Policy Act of 1969, Public
Law 91-190, an Environmental Impact Statement is not required.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA,
Rural Development must prepare a written statement, including a cost-
benefit analysis, for proposed and final rules with ``Federal
mandates'' that may result in expenditures to State, local, or tribal
governments, in the aggregate, or to the private sector of $100 million
or more in any 1 year. When such a statement is needed for a rule,
section 205 of UMRA generally requires Rural Development to identify
and consider a reasonable number of regulatory alternatives and adopt
the least costly, more cost effective, or least burdensome alternative
that achieves the objectives of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of Title II of the UMRA) for State, local, and tribal
governments or the private sector. Thus, this rule is not subject to
the requirements of sections 202 and 205 of UMRA.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act, Rural
Development has determined that this action would not have a
significant economic impact on a substantial number of small entities
because the action will not affect a significant number of small
entities as defined by the Regulatory Flexibility Act (5 U.S.C. Sec.
601). Rural Development made this determination based on the fact that
this regulation only impacts those who choose to participate in the
program. Small entity applicants will not be impacted to a greater
extent than large entity applicants. Therefore, a regulatory impact
analysis was not performed.
Executive Order 13132--Federalism
It has been determined under Executive Order 13132, Federalism,
that this rule does not have sufficient federalism implications to
warrant the preparation of a Federalism Assessment. The provisions
contained in this rule will not have a substantial direct effect on
States or their political subdivisions or on the distribution of power
and responsibilities among the various levels of Government.
Executive Order 13175, Consultation and Coordination With Indian Tribal
Governments
This executive order imposes requirements on Rural Development in
the development of regulatory policies that have tribal implications or
preempt tribal laws. Rural Development has determined that the rule
does not have a substantial direct effect on one or more Indian
tribe(s) or on either the relationship or the distribution of powers
and responsibilities between the Federal Government and the Indian
tribes. Thus, the rule is not subject to the requirements of Executive
Order 13175. Additionally, on April 17, 2013, Rural Development focused
its quarterly webinar and teleconference based Tribal Consultation on
its Rural Business Revolving Loan Fund Programs, including the IRP.
Neither adverse nor material comments were received regarding the IRP
during, or as a result of, that event. Tribal Consultation inquiries
and comments should be directed to Rural Development's Native American
Coordinator at aian@wdc.usda.gov or (720) 544-2911.
Paperwork Reduction Act
This rule does not revise or impose any new information collection
or recordkeeping requirements.
E-Government Act Compliance
Rural Development is committed to complying with the E-Government
Act, to promote the use of the Internet and other information
technologies to provide increased opportunities for citizen access to
Government information and services, and for other purposes.
Background
The amendments in this rule immediately allow the Agency to comply
with the Agricultural Act of 2014, which incorporates the IRP into the
Con Act and consequently to utilize the Con Act ``rural and rural
area'' definition for the program. Additionally, the amendments will
immediately address the OIG audit findings conducted in fiscal year
2010 involving several issues that require strengthening the Agency's
oversight controls of the IRP program. Lastly, the Agency is also
removing provisions for RDLF because there are no longer any active
RDLF accounts.
If RBS receives a significant adverse comment on a provision of
this rule, we will publish a timely withdrawal in the Federal Register
informing the public that that provision will not take effect. The rule
provisions that are not withdrawn will become effective on the date set
out above, notwithstanding a significant adverse comment on any other
provision, unless we determine that it would not be appropriate to do
so.
List of Subjects
7 CFR Part 1951
Loan programs--Agriculture, rural areas.
[[Page 31847]]
7 CFR Part 4274
Community development, Economic development, Loan programs--
Business, Rural areas.
For reasons set forth in this preamble, chapters XVIII and XLII,
title 7, Code of Federal Regulations, are amended as follows:
CHAPTER XVIII--RURAL HOUSING SERVICE, RURAL BUSINESS-COOPERATIVE
SERVICE, RURAL UTILITIES SERVICE, AND FARM SERVICE AGENCY, DEPARTMENT
OF AGRICULTURE
PART 1951--SERVICING AND COLLECTIONS
0
1. The authority citation for part 1951 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1932 Note; 7 U.S.C. 1989; 31
U.S.C. 3716; 42 U.S.C. 1480.
Subpart R--Rural Development Loan Servicing
Sec. 1951.851 [Amended]
0
2. Section 1951.851 is amended by removing paragraph (c) and
redesignating paragraphs (d) and (e) as paragraphs (c) and (d),
respectively.
0
3. Sections 1951.853, 1951.854, 1951.860, 1951.867, 1951.871, 1951.872,
and 1951.877 are removed and reserved.
0
4. Section 1951.881 is amended by revising paragraph (a) to read as
follows:
Sec. 1951.881 Loan servicing.
(a) These regulations do not negate contractual arrangements that
were previously made by the HHS, Office of Community Services (OCS), or
the intermediaries operating relending programs that have already been
entered into with ultimate recipients under previous regulations. Pre-
existing documents control when in conflict with these regulations. The
loan is governed by terms of existing legal documents of each
intermediary. The RDLF/IRP intermediary is responsible for compliance
with the terms and conditions of the loan agreement. Other than 7 CFR
1951.709(d)(1)(B)(iv), intermediaries receiving an unauthorized loan or
using their revolving fund for unauthorized purposes will be serviced
in accordance with 7 CFR part 1951, subpart O.
* * * * *
0
5. Section 1951.884 is revised to read as follows:
Sec. 1951.884 Revolved funds.
For ultimate recipients assisted by the intermediary with FmHA or
its successor agency under Public Law 103-354, revolved funds derived
from IRP funds shall be required to comply with the provisions of these
regulations and/or loan agreement.
CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES
SERVICE, DEPARTMENT OF AGRICULTURE
PART 4274--DIRECT AND INSURED LOANMAKING
0
6. The authority citation for part 4274 continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1932 note; 7 U.S.C. 1989.
Subpart D--Intermediary Relending Program (IRP)
0
7. Section 4274.302 is amended by removing the last sentence in the
definition of ``Agency IRP loan funds,'' removing the last sentence in
the definition of ``Revolved funds,'' and removing the definition of
``Rural area'' and adding in its place a definition of ``Rural or rural
area'' to read as follows:
Sec. 4274.302 Definitions and abbreviations.
(a) * * *
Rural or rural area. As described in 7 U.S.C. 1991(a)(13), as
amended.
* * * * *
0
8. A new Sec. 4274.304 is added to read as follows:
Sec. 4274.304 Prior loans.
Any loan made under this program prior to September 2, 2014 may
submit to the Agency a written request for an irrevocable election to
have the loan serviced in accordance with this subpart.
0
9. Section 4274.331 is amended by revising paragraph (a)(3)(ii) to read
as follows:
Sec. 4274.331 Loan limits.
(a) * * *
(3) * * *
(ii) The intermediary is promptly relending all collections from
loans made from its IRP revolving fund in excess of what is needed for
required debt service, reasonable administrative costs approved by the
Agency, and a reasonable reserve for debt service and uncollectible
accounts. The intermediary provides documentation to demonstrate that
funds available for relending do not exceed the greater of $150,000 or
the total amount of loans closed during a calendar quarter on average,
over the last 12 months.
* * * * *
0
10. Section 4274.332 is amended by revising paragraphs (b)(2) and
(b)(4) to read as follows:
Sec. 4274.332 Post award requirements.
* * * * *
(b) * * *
(2) The intermediary must submit an annual budget of proposed
administrative costs for Agency approval. The annual budget should
itemize cash income and cash out-flow. Projected cash income should
consist of, but is not limited to, collection of principal repayment,
interest repayment, interest earnings on deposits, fees, and other
income. Projected cash out-flow should consist of, but is not limited
to, principal and interest payments, reserve for bad debt, and an
itemization of administrative costs to operate the IRP revolving fund.
Proceeds received from the collection of principal repayment cannot be
used for administrative expenses. The amount removed from the IRP
revolving fund for administrative costs in any year must be reasonable,
must not exceed the actual cost of operating the IRP revolving fund,
including loan servicing and providing technical assistance, and must
not exceed the amount approved by the Agency in the intermediary's
annual budget.
* * * * *
(4) Any cash in the IRP revolving fund from any source that is not
needed for debt service, approved administrative costs, or reasonable
reserves must be available for additional loans to ultimate recipients.
Funds may not be used for any investments in securities or certificates
of deposit of over 30-day duration without the concurrence of Rural
Development. If funds in excess of $250,000 have been unused to make
loans to ultimate recipients for 6 months or more, those funds will be
returned to Rural Development unless Rural Development provides an
exception to the intermediary. Any exception would be based on evidence
satisfactory to Rural Development that every effort is being made by
the intermediary to utilize the IRP funding in conformance with program
objectives.
* * * * *
0
11. Section 4274.338 in amended by revising paragraph (b)(9) and adding
paragraph (b)(10) to read as follows:
Sec. 4274.338 Loan agreements between the Agency and the
Intermediary.
* * * * *
(b) * * *
(9) If any part of the loan has not been used in accordance with
the intermediary's work plan by a date 3 years from the date of the
loan agreement, the Agency may cancel the approval of any funds not yet
delivered to the intermediary and the
[[Page 31848]]
intermediary will return, as an extra payment on the loan, any funds
delivered to the intermediary that have not been used by the
intermediary in accordance with the work plan. The Agency, at its sole
discretion, may allow the intermediary additional time to use the loan
funds. Regular loan payments will be based on the amount of funds
actually drawn by the intermediary.
(10) For IRP intermediaries, IRP funds in excess of $250,000 that
have not been used to make loans to ultimate recipients for 6 months or
more will be returned to Rural Development unless Rural Development
provides an exception to the intermediary. Any exception would be based
on evidence satisfactory to Rural Development that every effort is
being made by the intermediary to utilize the IRP funding in
conformance with program objectives.
0
12. Section 4274.361 is amended by revising paragraph (a) to read as
follows:
Sec. 4274.361 Requests to make loans to ultimate recipients.
(a) An intermediary may use revolved funds to make loans to
ultimate recipients in accordance with Sec. 4274.314(b) without
obtaining prior Agency concurrence. Prior Agency concurrence is
required when an intermediary proposes to use Agency IRP loan funds to
make a loan to an ultimate recipient.
* * * * *
Dated: May 20, 2014.
Douglas J. O'Brien,
Deputy Under Secretary, Rural Development.
Dated: May 15, 2014.
Michael T. Scuse,
Under Secretary, Farm and Foreign Agricultural Services.
[FR Doc. 2014-12633 Filed 6-2-14; 8:45 am]
BILLING CODE 3410-XY-P
