HUBZone and National Defense Authorization Act for Fiscal Year 2016 Amendments, 51312-51314 [2016-18251]
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51312
Federal Register / Vol. 81, No. 150 / Thursday, August 4, 2016 / Rules and Regulations
Subpart B—[Reserved]
Dated: July 27, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–18346 Filed 8–3–16; 8:45 am]
BILLING CODE 3410–02–P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
RIN 3245–AG81
HUBZone and National Defense
Authorization Act for Fiscal Year 2016
Amendments
U.S. Small Business
Administration.
ACTION: Direct final rule.
AGENCY:
This direct final rule contains
several amendments to the regulations
governing the HUBZone Program. The
U.S. Small Business Administration
(SBA) is making changes to its
regulations to implement section 866 of
the National Defense Authorization Act
for Fiscal Year 2016 (2016 NDAA).
Section 866 of the 2016 NDAA made the
following changes to the HUBZone
program: authorized Native Hawaiian
Organizations to own HUBZone small
business concerns; expanded the
definition of ‘‘base closure area’’ under
the HUBZone program; and authorized
the inclusion of ‘‘qualified disaster
areas’’ under the HUBZone program.
This direct final rule would implement
these changes in SBA’s regulations.
DATES: This rule is effective on October
3, 2016 without further action, unless
significant adverse comment is received
by September 6, 2016. If significant
adverse comment is received, SBA will
publish a timely withdrawal of the rule
in the Federal Register.
ADDRESSES: You may submit comments,
identified by RIN 3245–AG81 by any of
the following methods:
• Federal Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail or Hand Delivery/Courier:
Mariana Pardo, Director, HUBZone
Program, 409 Third Street SW.,
Washington, DC 20416.
SBA will post all comments on https://
www.Regulations.gov. If you wish to
submit confidential business
information (CBI) as defined in the User
Notice at https://www.Regulations.gov,
please submit the information to
Mariana Pardo, Director, HUBZone
Program, 409 Third Street SW.,
Washington, DC 20416 and highlight the
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SUMMARY:
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information that you consider to be CBI
and explain why you believe this
information should be held confidential.
SBA will review the information and
make a final determination of whether
the information will be published or
not.
FOR FURTHER INFORMATION CONTACT:
Mariana Pardo, Director, HUBZone
Program, 409 Third Street SW.,
Washington, DC 20416, 202–205–2985,
hubzone@sba.gov.
SUPPLEMENTARY INFORMATION:
This direct final rule implements
several conforming amendments to SBA
regulations from the National Defense
Authorization Act for Fiscal Year 2016,
Public Law 114–92, 129 Stat. 726,
November 25, 2015 (2016 NDAA). The
2016 NDAA became effective on
November 25, 2015. Section 866 of the
2016 NDAA made the following changes
to the HUBZone program: authorized
Native Hawaiian Organizations (NHOs)
to own HUBZone small business
concerns; expanded the definition of
‘‘base closure area’’ under the HUBZone
program; and authorized the inclusion
of ‘‘qualified disaster areas’’ under the
HUBZone program.
SBA seeks to amend its HUBZone
regulations to mirror the changes the
2016 NDAA made to the Small Business
Act, and to avoid public confusion and
possible misinterpretations of SBA’s
HUBZone program. Since these are
conforming amendments, with no
extraneous interpretation or other
expanded materials, SBA expects no
significant adverse comments. Based on
that fact, SBA has decided to proceed
with a direct final rule giving the public
30 days to comment. If SBA receives a
significant adverse comment during the
comment period, SBA will withdraw
the rule, and proceed with a new
proposed rule. The statute makes the
following changes:
• General Summary—Expands the
HUBZone program to assist small
businesses in disasters areas and base
closure areas and provides equal
treatment under the HUBZone program
for small businesses owned by NHOs.
• ‘‘Major Disaster’’ Areas—Treats
major disaster areas as HUBZones for a
period of 5 years. Applies to census
tracts and nonmetropolitan counties
(NMC) located in ‘‘major disaster’’ areas,
if such census tract or NMC lost its
HUBZone eligibility within the past 5
years or will lose its HUBZone
eligibility within 2 years after the major
disaster.
• ‘‘Catastrophic Incident’’ Areas—
Treats areas where catastrophic
incidents occurred as HUBZones for a
period of 10 years. Applies to census
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tracts and NMCs located in areas where
catastrophic incidents occurred, if such
census tract or NMC lost its HUBZone
eligibility within the past 5 years or will
lose its HUBZone eligibility within 2
years after the catastrophic incident.
• Base Closures Areas (BRAC)—
Extends HUBZone eligibility for BRACs
to 8 years (up from 5) and expands
HUBZone eligibility to census tracts and
NMCs that (1) contain BRACs, (2)
intersect with BRACs, (3) are contiguous
to BRACs, or (4) are contiguous to any
census tract or NMC described in (1)
through (3).
• Native Hawaiian Organizations
(NHO)—Allows small businesses owned
by NHOs to qualify as HUBZone
companies.
In order to implement the changes
made by section 866 of the 2016 NDAA,
SBA is amending §§ 126.103 and
126.200 of its regulations.
SBA is amending § 126.103 by
revising the definitions of the terms
‘‘Base closure area’’, ‘‘HUBZone’’,
‘‘HUBZone small business concern
(HUBZone SBC)’’, and ‘‘Qualified base
closure area’’, and by adding new
definitions for the terms ‘‘Native
Hawaiian Organization (NHO)’’ and
‘‘Qualified disaster area’’. This rules
adopts the definitions of these terms
provided in amended sections 3(p)(1),
3(p)(3), 3(p)(4)(D), and new section
3(p)(4)(E), of the Small Business Act, 15
U.S.C. 632(p)(1), 632(p)(3), 632(p)(4)(D),
632(p)(4)(E).
SBA is amending § 126.200 by
revising paragraph (b)(1) to implement
the statutory authority for HUBZone
small business concerns to be wholly or
partly owned by NHOs. This rule adopts
the language provided in new section
3(p)(3)(D) of the Small Business Act, 15
U.S.C. 632(p)(3)(D).
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)
Executive Order 12866
The Office of Management and Budget
(OMB) has determined that this direct
final rule does not constitute a
significant regulatory action under
Executive Order 12866. This rule is also
not a major rule under the
Congressional Review Act, 5 U.S.C. 800.
Executive Order 12988
This action meets applicable
standards set forth in Sections 3(a) and
3(b)(2) of Executive Order 12988, Civil
Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden. The action does not have
retroactive or preemptive effect.
E:\FR\FM\04AUR1.SGM
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Federal Register / Vol. 81, No. 150 / Thursday, August 4, 2016 / Rules and Regulations
Executive Order 13132
For the purposes of Executive Order
13132, SBA has determined that this
direct final rule will not have
substantial, direct effects on the States,
on the relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government. Therefore, for the
purpose of Executive Order 13132,
Federalism, SBA has determined that
this direct final rule has no federalism
implications warranting preparation of a
federalism assessment.
Paperwork Reduction Act, 44 U.S.C.,
Ch. 35
SBA has determined that this direct
final rule does not impose additional
reporting or recordkeeping requirements
under the Paperwork Reduction Act, 44
U.S.C., Chapter 35.
Regulatory Flexibility Act, 5 U.S.C. 601–
612
The Regulatory Flexibility Act (RFA),
5 U.S.C. 601, requires administrative
agencies to consider the effect of their
actions on small entities, small nonprofit enterprises, and small local
governments. Pursuant to the RFA,
when an agency issues a rulemaking,
the agency must prepare a regulatory
flexibility analysis which describes the
impact of the rule on small entities.
However, section 605 of the RFA allows
an agency to certify a rule, in lieu of
preparing an analysis, if the rulemaking
is not expected to have a significant
economic impact on a substantial
number of small entities. Within the
meaning of RFA, SBA certifies that this
direct rule will not have a significant
economic impact on a substantial
number of small entities.
List of Subjects in 13 CFR Part 126
Administrative practice and
procedure, Government procurement,
Small businesses.
Accordingly, for the reasons stated in
the supplementary information, SBA
amends 13 CFR part 126 as follows:
PART 126—HUBZONE PROGRAM
1. The authority for 13 CFR part 126
continues to read as follows:
■
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Authority: 15 U.S.C. 632(a), 632(j), 632(p),
644 and 657a.
2. Amend § 126.103 by revising the
definitions of ‘‘Base closure area’’,
‘‘HUBZone’’, ‘‘HUBZone small business
concern (HUBZone SBC)’’, and
‘‘Qualified base closure area’’ and by
adding new definitions alphabetically
for the terms ‘‘Native Hawaiian
■
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Organization (NHO)’’ and ‘‘Qualified
disaster area’’, to read as follows:
§ 126.103 What definitions are important
in the HUBZone program?
*
*
*
*
*
Base closure area means:
(1) Lands within the external
boundaries of a military installation that
were closed through a privatization
process under the authority of:
(i) The Defense Base Closure and
Realignment Act of 1990 (part A of title
XXIX of division B of Pub. L. 101–510;
10 U.S.C. 2687 note);
(ii) Title II of the Defense
Authorization Amendments and Base
Closure and Realignment Act (Pub. L.
100–526; 10 U.S.C. 2687 note);
(iii) 10 U.S.C. 2687; or
(iv) Any other provision of law
authorizing or directing the Secretary of
Defense or the Secretary of a military
department to dispose of real property
at the military installation for purposes
relating to base closures of
redevelopment, while retaining the
authority to enter into a leaseback of all
or a portion of the property for military
use;
(2) The census tract or
nonmetropolitan county (excluding any
qualified census tract and any qualified
non-metropolitan county) in which the
lands described in paragraph (1) of this
definition are wholly contained;
(3) A census tract or nonmetropolitan
county (excluding any qualified census
tract and any qualified nonmetropolitan county) the boundaries of
which intersect the area described in
paragraph (1) of this definition; and
(4) A census tract or nonmetropolitan
county (excluding any qualified census
tract and any qualified nonmetropolitan county) the boundaries of
which are contiguous to the area
described in paragraph (2) or paragraph
(3) of this definition.
*
*
*
*
*
HUBZone means a historically
underutilized business zone, which is
an area located within one or more:
(1) Qualified census tracts;
(2) Qualified non-metropolitan
counties;
(3) Lands within the external
boundaries of an Indian reservation;
(4) Qualified base closure areas;
(5) Redesignated areas; or
(6) Qualified disaster areas.
HUBZone small business concern
(HUBZone SBC) means an SBC that is:
(1) At least 51% owned and
controlled by 1 or more persons, each of
whom is a United States citizen;
(2) An ANC owned and controlled by
Natives (as determined pursuant to
section 29(e)(1) of the ANCSA, 43 U.S.C.
1626(e)(1));
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51313
(3) A direct or indirect subsidiary
corporation, joint venture, or
partnership of an ANC qualifying
pursuant to section 29(e)(1) of the
ANCSA, 43 U.S.C. 1626(e)(1)), if that
subsidiary, joint venture, or partnership
is owned and controlled by Natives (as
determined pursuant to section 29(e)(2)
of the ANCSA, 43 U.S.C. 1626(e)(2));
(4) Wholly owned by one or more
Indian Tribal Governments, or by a
corporation that is wholly owned by one
or more Indian Tribal Governments;
(5) An SBC that is owned in part by
one or more Indian Tribal Governments
or in part by a corporation that is wholly
owned by one or more Indian Tribal
Governments, if all other owners are
either United States citizens or SBCs;
(6) An SBC that is wholly owned by
a CDC or owned in part by one or more
CDCs, if all other owners are either
United States citizens or SBCs;
(7) An SBC that is a small agricultural
cooperative organized or incorporated
in the United States, wholly owned by
one or more small agricultural
cooperatives organized or incorporated
in the United States or owned in part by
one or more small agricultural
cooperatives organized or incorporated
in the United States, provided that all
other owners are small business
concerns or United States citizens;
(8) Wholly owned by one or more
Native Hawaiian Organizations, or by a
corporation that is wholly owned by one
or more Native Hawaiian Organizations;
or
(9) Owned in part by one or more
Native Hawaiian Organizations or by a
corporation that is wholly owned by one
or more Native Hawaiian Organizations,
if all other owners are either United
States citizens or small business
concerns.
*
*
*
*
*
Native Hawaiian Organization (NHO)
means any community service
organization serving Native Hawaiians
in the State of Hawaii which is a notfor-profit organziation chartered by the
State of Hawaii, is controlled by Native
Hawaiians, and whose business
activities will principally benefit such
Native Hawaiians.
*
*
*
*
*
Qualified base closure area means:
(1) A base closure area that is treated
as a HUBZone for a period of not less
than 8 years, beginning on the date the
military installation undergoes final
closure and ending on the latter of the
following:
(i) The date the Administrator makes
a final determination as to whether or
not to implement the applicable
designations in accordance with the
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51314
Federal Register / Vol. 81, No. 150 / Thursday, August 4, 2016 / Rules and Regulations
results of the decennial census
conducted after the area was initially
designated as a base closure area; or
(ii) The date 8 years after the base
closure area was initially designated as
a HUBZone.
(2) However, if a base closure area
was treated as a HUBZone at any time
after 2010, it shall be treated as a
HUBZone until such time as the
Administrator makes a final
determination as to whether or not to
implement the applicable designations
in accordance with the results of the
2020 decennial census.
*
*
*
*
*
Qualified disaster area means any
census tract or nonmetropolitan county
located in an area for which the
President has declared a major disaster
under section 401 of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170), or
located in an area in which a
catastrophic incident has occurred if
such census tract or nonmetropolitan
county ceased to be categorized as either
a qualified census tract or qualified
nonmetropolitan county, as applicable,
during the period beginning 5 years
before the date on which the President
declared the major disaster or the
catastrophic incident occurred and
ending 2 years after such date. However,
the following exceptions apply:
(1) In the case of a major disaster
declared by the President, a census tract
or nonmetropolitan county may be a
qualified disaster area only during the 5year period beginning on the date on
which the President declared the major
disaster for the area in which the census
tract or nonmetropolitan county is
located; and
(2) In the case of a catastrophic
incident, a census tract or
nonmetropolitan county may be a
qualified disaster area only during the
10-year period beginning on the date on
which the catastrophic incident
occurred in the area in which the census
tract or nonmetropolitan county is
located.
*
*
*
*
*
■ 3. Amend § 126.200 by revising
paragraph (b)(1) to read as follows:
§ 126.200 What requirements must a
concern meet to receive SBA certification
as a qualified HUBZone SBC?
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*
*
*
*
*
(b) Concerns owned by U.S. citizens,
ANCs, NHOs, or CDCs.—(1) Ownership.
(i) The concern must be at least 51%
unconditionally and directly owned and
controlled by persons who are United
States citizens;
Example: A concern that is a partnership
owned 50% by an individual who is a United
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States citizen and 50% by someone who is
not a United States citizen, is not an eligible
concern because it is not at least 51% owned
by United States citizens.
(ii) The concern must be an ANC
owned and controlled by Natives
(determined pursuant to section 29(e)(1)
of the ANCSA); or a direct or indirect
subsidiary corporation, joint venture, or
partnership of an ANC qualifying
pursuant to section 29(e)(1) of ANCSA,
if that subsidiary, joint venture, or
partnership is owned and controlled by
Natives (determined pursuant to section
29(e)(2)) of the ANCSA);
(iii) The concern must be wholly
owned by one or more NHOs, or by a
corporation that is wholly owned by one
or more NHOs, or owned in part by one
or more NHOs, if all other owners are
either United States citizens or small
business concerns; or
(iv) The concern must be wholly
owned by a CDC, or owned in part by
one or more CDCs, if all other owners
are either United States citizens or
SBCs.
*
*
*
*
*
Dated: July 22, 2016.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2016–18251 Filed 8–3–16; 8:45 am]
BILLING CODE 8025–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2015–8472; Directorate
Identifier 2014–NM–106–AD; Amendment
39–18603; AD 2016–16–05]
RIN 2120–AA64
Airworthiness Directives; Fokker
Services B.V. Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
We are adopting a new
airworthiness directive (AD) for all
Fokker Services B.V. Model F.28 Mark
1000, 2000, 3000, and 4000 airplanes.
This AD was prompted by a design
review that revealed a hot spot may
develop in the main fuel tank under
certain failure conditions of the
solenoid of the level control pilot valve,
the reed switch of the main tank
overflow valve, the level float switch of
the collector tank, or the solenoid of the
main tank fueling shut-off valve. This
AD requires installing fuses in the
SUMMARY:
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Fmt 4700
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wiring of the solenoid of the level
control pilot valve, the reed switch of
the main tank overflow valve, the level
float switch of the collector tank, and
the solenoid of the main tank fueling
shut-off valve, as applicable. This AD
also requires accomplishing concurrent
actions and revising the airplane
maintenance or inspection program, as
applicable, by incorporating fuel
airworthiness limitation items and
critical design configuration control
limitations (CDCCLs). We are issuing
this AD to prevent an ignition source in
the main fuel tank vapor space, which
could result in a fuel tank explosion and
consequent loss of the airplane.
DATES: This AD is effective September 8,
2016.
The Director of the Federal Register
approved the incorporation by reference
of certain publications listed in this AD
as of September 8, 2016.
ADDRESSES: For service information
identified in this final rule, contact
Fokker Services B.V., Technical
Services Dept., P.O. Box 1357, 2130 EL
Hoofddorp, the Netherlands; telephone
+31 (0)88–6280–350; fax +31 (0)88–
6280–111; email technicalservices@
fokker.com; Internet https://
www.myfokkerfleet.com. You may view
this referenced service information at
the FAA, Transport Airplane
Directorate, 1601 Lind Avenue SW.,
Renton, WA. For information on the
availability of this material at the FAA,
call 425–227–1221. It is also available
on the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2015–
8472.
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov by searching for
and locating Docket No. FAA–2015–
8472; or in person at the Docket
Management Facility between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays. The AD docket
contains this AD, the regulatory
evaluation, any comments received, and
other information. The street address for
the Docket Office (telephone 800–647–
5527) is Docket Management Facility,
U.S. Department of Transportation,
Docket Operations, M–30, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue SE.,
Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: Tom
Rodriguez, Aerospace Engineer,
International Branch, ANM–116,
Transport Airplane Directorate, FAA,
1601 Lind Avenue SW., Renton, WA
E:\FR\FM\04AUR1.SGM
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Agencies
[Federal Register Volume 81, Number 150 (Thursday, August 4, 2016)]
[Rules and Regulations]
[Pages 51312-51314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-18251]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
RIN 3245-AG81
HUBZone and National Defense Authorization Act for Fiscal Year
2016 Amendments
AGENCY: U.S. Small Business Administration.
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: This direct final rule contains several amendments to the
regulations governing the HUBZone Program. The U.S. Small Business
Administration (SBA) is making changes to its regulations to implement
section 866 of the National Defense Authorization Act for Fiscal Year
2016 (2016 NDAA). Section 866 of the 2016 NDAA made the following
changes to the HUBZone program: authorized Native Hawaiian
Organizations to own HUBZone small business concerns; expanded the
definition of ``base closure area'' under the HUBZone program; and
authorized the inclusion of ``qualified disaster areas'' under the
HUBZone program. This direct final rule would implement these changes
in SBA's regulations.
DATES: This rule is effective on October 3, 2016 without further
action, unless significant adverse comment is received by September 6,
2016. If significant adverse comment is received, SBA will publish a
timely withdrawal of the rule in the Federal Register.
ADDRESSES: You may submit comments, identified by RIN 3245-AG81 by any
of the following methods:
Federal Rulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Mail or Hand Delivery/Courier: Mariana Pardo, Director,
HUBZone Program, 409 Third Street SW., Washington, DC 20416.
SBA will post all comments on https://www.Regulations.gov. If you
wish to submit confidential business information (CBI) as defined in
the User Notice at https://www.Regulations.gov, please submit the
information to Mariana Pardo, Director, HUBZone Program, 409 Third
Street SW., Washington, DC 20416 and highlight the information that you
consider to be CBI and explain why you believe this information should
be held confidential. SBA will review the information and make a final
determination of whether the information will be published or not.
FOR FURTHER INFORMATION CONTACT: Mariana Pardo, Director, HUBZone
Program, 409 Third Street SW., Washington, DC 20416, 202-205-2985,
hubzone@sba.gov.
SUPPLEMENTARY INFORMATION:
This direct final rule implements several conforming amendments to
SBA regulations from the National Defense Authorization Act for Fiscal
Year 2016, Public Law 114-92, 129 Stat. 726, November 25, 2015 (2016
NDAA). The 2016 NDAA became effective on November 25, 2015. Section 866
of the 2016 NDAA made the following changes to the HUBZone program:
authorized Native Hawaiian Organizations (NHOs) to own HUBZone small
business concerns; expanded the definition of ``base closure area''
under the HUBZone program; and authorized the inclusion of ``qualified
disaster areas'' under the HUBZone program.
SBA seeks to amend its HUBZone regulations to mirror the changes
the 2016 NDAA made to the Small Business Act, and to avoid public
confusion and possible misinterpretations of SBA's HUBZone program.
Since these are conforming amendments, with no extraneous
interpretation or other expanded materials, SBA expects no significant
adverse comments. Based on that fact, SBA has decided to proceed with a
direct final rule giving the public 30 days to comment. If SBA receives
a significant adverse comment during the comment period, SBA will
withdraw the rule, and proceed with a new proposed rule. The statute
makes the following changes:
General Summary--Expands the HUBZone program to assist
small businesses in disasters areas and base closure areas and provides
equal treatment under the HUBZone program for small businesses owned by
NHOs.
``Major Disaster'' Areas--Treats major disaster areas as
HUBZones for a period of 5 years. Applies to census tracts and
nonmetropolitan counties (NMC) located in ``major disaster'' areas, if
such census tract or NMC lost its HUBZone eligibility within the past 5
years or will lose its HUBZone eligibility within 2 years after the
major disaster.
``Catastrophic Incident'' Areas--Treats areas where
catastrophic incidents occurred as HUBZones for a period of 10 years.
Applies to census tracts and NMCs located in areas where catastrophic
incidents occurred, if such census tract or NMC lost its HUBZone
eligibility within the past 5 years or will lose its HUBZone
eligibility within 2 years after the catastrophic incident.
Base Closures Areas (BRAC)--Extends HUBZone eligibility
for BRACs to 8 years (up from 5) and expands HUBZone eligibility to
census tracts and NMCs that (1) contain BRACs, (2) intersect with
BRACs, (3) are contiguous to BRACs, or (4) are contiguous to any census
tract or NMC described in (1) through (3).
Native Hawaiian Organizations (NHO)--Allows small
businesses owned by NHOs to qualify as HUBZone companies.
In order to implement the changes made by section 866 of the 2016
NDAA, SBA is amending Sec. Sec. 126.103 and 126.200 of its
regulations.
SBA is amending Sec. 126.103 by revising the definitions of the
terms ``Base closure area'', ``HUBZone'', ``HUBZone small business
concern (HUBZone SBC)'', and ``Qualified base closure area'', and by
adding new definitions for the terms ``Native Hawaiian Organization
(NHO)'' and ``Qualified disaster area''. This rules adopts the
definitions of these terms provided in amended sections 3(p)(1),
3(p)(3), 3(p)(4)(D), and new section 3(p)(4)(E), of the Small Business
Act, 15 U.S.C. 632(p)(1), 632(p)(3), 632(p)(4)(D), 632(p)(4)(E).
SBA is amending Sec. 126.200 by revising paragraph (b)(1) to
implement the statutory authority for HUBZone small business concerns
to be wholly or partly owned by NHOs. This rule adopts the language
provided in new section 3(p)(3)(D) of the Small Business Act, 15 U.S.C.
632(p)(3)(D).
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)
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
direct final rule does not constitute a significant regulatory action
under Executive Order 12866. This rule is also not a major rule under
the Congressional Review Act, 5 U.S.C. 800.
Executive Order 12988
This action meets applicable standards set forth in Sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
[[Page 51313]]
Executive Order 13132
For the purposes of Executive Order 13132, SBA has determined that
this direct final rule will not have substantial, direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government. Therefore, for the purpose of Executive
Order 13132, Federalism, SBA has determined that this direct final rule
has no federalism implications warranting preparation of a federalism
assessment.
Paperwork Reduction Act, 44 U.S.C., Ch. 35
SBA has determined that this direct final rule does not impose
additional reporting or recordkeeping requirements under the Paperwork
Reduction Act, 44 U.S.C., Chapter 35.
Regulatory Flexibility Act, 5 U.S.C. 601-612
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, requires
administrative agencies to consider the effect of their actions on
small entities, small non-profit enterprises, and small local
governments. Pursuant to the RFA, when an agency issues a rulemaking,
the agency must prepare a regulatory flexibility analysis which
describes the impact of the rule on small entities. However, section
605 of the RFA allows an agency to certify a rule, in lieu of preparing
an analysis, if the rulemaking is not expected to have a significant
economic impact on a substantial number of small entities. Within the
meaning of RFA, SBA certifies that this direct rule will not have a
significant economic impact on a substantial number of small entities.
List of Subjects in 13 CFR Part 126
Administrative practice and procedure, Government procurement,
Small businesses.
Accordingly, for the reasons stated in the supplementary
information, SBA amends 13 CFR part 126 as follows:
PART 126--HUBZONE PROGRAM
0
1. The authority for 13 CFR part 126 continues to read as follows:
Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a.
0
2. Amend Sec. 126.103 by revising the definitions of ``Base closure
area'', ``HUBZone'', ``HUBZone small business concern (HUBZone SBC)'',
and ``Qualified base closure area'' and by adding new definitions
alphabetically for the terms ``Native Hawaiian Organization (NHO)'' and
``Qualified disaster area'', to read as follows:
Sec. [thinsp]126.103 What definitions are important in the HUBZone
program?
* * * * *
Base closure area means:
(1) Lands within the external boundaries of a military installation
that were closed through a privatization process under the authority
of:
(i) The Defense Base Closure and Realignment Act of 1990 (part A of
title XXIX of division B of Pub. L. 101-510; 10 U.S.C. 2687 note);
(ii) Title II of the Defense Authorization Amendments and Base
Closure and Realignment Act (Pub. L. 100-526; 10 U.S.C. 2687 note);
(iii) 10 U.S.C. 2687; or
(iv) Any other provision of law authorizing or directing the
Secretary of Defense or the Secretary of a military department to
dispose of real property at the military installation for purposes
relating to base closures of redevelopment, while retaining the
authority to enter into a leaseback of all or a portion of the property
for military use;
(2) The census tract or nonmetropolitan county (excluding any
qualified census tract and any qualified non-metropolitan county) in
which the lands described in paragraph (1) of this definition are
wholly contained;
(3) A census tract or nonmetropolitan county (excluding any
qualified census tract and any qualified non-metropolitan county) the
boundaries of which intersect the area described in paragraph (1) of
this definition; and
(4) A census tract or nonmetropolitan county (excluding any
qualified census tract and any qualified non-metropolitan county) the
boundaries of which are contiguous to the area described in paragraph
(2) or paragraph (3) of this definition.
* * * * *
HUBZone means a historically underutilized business zone, which is
an area located within one or more:
(1) Qualified census tracts;
(2) Qualified non-metropolitan counties;
(3) Lands within the external boundaries of an Indian reservation;
(4) Qualified base closure areas;
(5) Redesignated areas; or
(6) Qualified disaster areas.
HUBZone small business concern (HUBZone SBC) means an SBC that is:
(1) At least 51% owned and controlled by 1 or more persons, each of
whom is a United States citizen;
(2) An ANC owned and controlled by Natives (as determined pursuant
to section 29(e)(1) of the ANCSA, 43 U.S.C. 1626(e)(1));
(3) A direct or indirect subsidiary corporation, joint venture, or
partnership of an ANC qualifying pursuant to section 29(e)(1) of the
ANCSA, 43 U.S.C. 1626(e)(1)), if that subsidiary, joint venture, or
partnership is owned and controlled by Natives (as determined pursuant
to section 29(e)(2) of the ANCSA, 43 U.S.C. 1626(e)(2));
(4) Wholly owned by one or more Indian Tribal Governments, or by a
corporation that is wholly owned by one or more Indian Tribal
Governments;
(5) An SBC that is owned in part by one or more Indian Tribal
Governments or in part by a corporation that is wholly owned by one or
more Indian Tribal Governments, if all other owners are either United
States citizens or SBCs;
(6) An SBC that is wholly owned by a CDC or owned in part by one or
more CDCs, if all other owners are either United States citizens or
SBCs;
(7) An SBC that is a small agricultural cooperative organized or
incorporated in the United States, wholly owned by one or more small
agricultural cooperatives organized or incorporated in the United
States or owned in part by one or more small agricultural cooperatives
organized or incorporated in the United States, provided that all other
owners are small business concerns or United States citizens;
(8) Wholly owned by one or more Native Hawaiian Organizations, or
by a corporation that is wholly owned by one or more Native Hawaiian
Organizations; or
(9) Owned in part by one or more Native Hawaiian Organizations or
by a corporation that is wholly owned by one or more Native Hawaiian
Organizations, if all other owners are either United States citizens or
small business concerns.
* * * * *
Native Hawaiian Organization (NHO) means any community service
organization serving Native Hawaiians in the State of Hawaii which is a
not-for-profit organziation chartered by the State of Hawaii, is
controlled by Native Hawaiians, and whose business activities will
principally benefit such Native Hawaiians.
* * * * *
Qualified base closure area means:
(1) A base closure area that is treated as a HUBZone for a period
of not less than 8 years, beginning on the date the military
installation undergoes final closure and ending on the latter of the
following:
(i) The date the Administrator makes a final determination as to
whether or not to implement the applicable designations in accordance
with the
[[Page 51314]]
results of the decennial census conducted after the area was initially
designated as a base closure area; or
(ii) The date 8 years after the base closure area was initially
designated as a HUBZone.
(2) However, if a base closure area was treated as a HUBZone at any
time after 2010, it shall be treated as a HUBZone until such time as
the Administrator makes a final determination as to whether or not to
implement the applicable designations in accordance with the results of
the 2020 decennial census.
* * * * *
Qualified disaster area means any census tract or nonmetropolitan
county located in an area for which the President has declared a major
disaster under section 401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170), or located in an area in
which a catastrophic incident has occurred if such census tract or
nonmetropolitan county ceased to be categorized as either a qualified
census tract or qualified nonmetropolitan county, as applicable, during
the period beginning 5 years before the date on which the President
declared the major disaster or the catastrophic incident occurred and
ending 2 years after such date. However, the following exceptions
apply:
(1) In the case of a major disaster declared by the President, a
census tract or nonmetropolitan county may be a qualified disaster area
only during the 5-year period beginning on the date on which the
President declared the major disaster for the area in which the census
tract or nonmetropolitan county is located; and
(2) In the case of a catastrophic incident, a census tract or
nonmetropolitan county may be a qualified disaster area only during the
10-year period beginning on the date on which the catastrophic incident
occurred in the area in which the census tract or nonmetropolitan
county is located.
* * * * *
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3. Amend Sec. 126.200 by revising paragraph (b)(1) to read as follows:
Sec. 126.200 What requirements must a concern meet to receive SBA
certification as a qualified HUBZone SBC?
* * * * *
(b) Concerns owned by U.S. citizens, ANCs, NHOs, or CDCs.--(1)
Ownership. (i) The concern must be at least 51% unconditionally and
directly owned and controlled by persons who are United States
citizens;
Example: A concern that is a partnership owned 50% by an
individual who is a United States citizen and 50% by someone who is
not a United States citizen, is not an eligible concern because it
is not at least 51% owned by United States citizens.
(ii) The concern must be an ANC owned and controlled by Natives
(determined pursuant to section 29(e)(1) of the ANCSA); or a direct or
indirect subsidiary corporation, joint venture, or partnership of an
ANC qualifying pursuant to section 29(e)(1) of ANCSA, if that
subsidiary, joint venture, or partnership is owned and controlled by
Natives (determined pursuant to section 29(e)(2)) of the ANCSA);
(iii) The concern must be wholly owned by one or more NHOs, or by a
corporation that is wholly owned by one or more NHOs, or owned in part
by one or more NHOs, if all other owners are either United States
citizens or small business concerns; or
(iv) The concern must be wholly owned by a CDC, or owned in part by
one or more CDCs, if all other owners are either United States citizens
or SBCs.
* * * * *
Dated: July 22, 2016.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2016-18251 Filed 8-3-16; 8:45 am]
BILLING CODE 8025-01-P