VA Veteran-Owned Small Business Verification Guidelines, 32137-32139 [2017-14600]
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Federal Register / Vol. 82, No. 132 / Wednesday, July 12, 2017 / Rules and Regulations
E. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1531–1538) requires
Federal agencies to assess the effects of
their discretionary regulatory actions. In
particular, the Act addresses actions
that may result in the expenditure by a
State, local, or tribal government, in the
aggregate, or by the private sector of
$100,000,000 (adjusted for inflation) or
more in any one year. Though this rule
will not result in such an expenditure,
we do discuss the effects of this rule
elsewhere in this preamble.
F. Environment
We have analyzed this rule under
Department of Homeland Security
Management Directive 023–01 and
Commandant Instruction M16475.lD,
which guide the Coast Guard in
complying with the National
Environmental Policy Act of 1969 (42
U.S.C. 4321–4370f), and have
determined that this action is one of a
category of actions that do not
individually or cumulatively have a
significant effect on the human
environment. This rule involves the
establishment of a safety zone for a
bridge based pyrotechnics display on
the Main Branch of the Chicago River in
Chicago, IL. It is categorically excluded
from further review under paragraph
34(g) of Figure 2–1 of the Commandant
Instruction. A Record of Environmental
Consideration (REC) supporting this
determination is available in the docket
where indicated in the ADDRESSES
section of this preamble. We seek any
comments or information that may lead
to the discovery of a significant
environmental impact from this rule.
nlaroche on DSK30NT082PROD with RULES
G. Protest Activities
The Coast Guard respects the First
Amendment rights of protesters.
Protesters are asked to contact the
person listed in the FOR FURTHER
INFORMATION CONTACT section to
coordinate protest activities so that your
message can be received without
jeopardizing the safety or security of
people, places or vessels.
List of Subjects in 33 CFR Part 165
Harbors, Marine safety, Navigation
(water), Reporting and recordkeeping
requirements, Security measures,
Waterways.
For the reasons discussed in the
preamble, the Coast Guard amends 33
CFR part 165 as follows:
Authority: 33 U.S.C. 1231; 50 U.S.C. 191;
33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;
Department of Homeland Security Delegation
No. 0170.1.
DEPARTMENT OF VETERANS
AFFAIRS
2. Add § 165.T09–0614 to read as
follows:
RIN 2900–AP93
■
§ 165.T09–0614 Safety Zone; Main Branch
of the Chicago River, Chicago, IL.
(a) Location. All U.S. navigable waters
of the Main Branch of the Chicago River,
between the Wells Street Bridge and
Dearborn Street Bridge in Chicago, IL.
(b) Enforcement period. This rule will
be enforced on each day from 8:15 p.m.
through 8:45 p.m. on July 11, 2017,
August 8, 2017, and September 12,
2017.
(c) Regulations. (1) In accordance with
the general regulations in § 165.23 of
this part, entry into, transiting, or
anchoring within this safety zone is
prohibited unless authorized by the
Captain of the Port Lake Michigan or a
designated on-scene representative.
(2) This safety zone is closed to all
vessel traffic, except as may be
permitted by the Captain of the Port
Lake Michigan or a designated on-scene
representative.
(3) The ‘‘on-scene representative’’ of
the Captain of the Port Lake Michigan
is any Coast Guard commissioned,
warrant or petty officer who has been
designated by the Captain of the Port
Lake Michigan to act on his or her
behalf.
(4) Vessel operators desiring to enter
or operate within the safety zone shall
contact the Captain of the Port Lake
Michigan or an on-scene representative
to obtain permission to do so. The
Captain of the Port Lake Michigan or an
on-scene representative may be
contacted via VHF Channel 16 or
contact Sector Lake Michigan at (414)
747–7182. Vessel operators given
permission to enter or operate in the
safety zone must comply with all
directions given to them by the Captain
of the Port Lake Michigan, or an onscene representative.
Dated: July 6, 2017.
A.B. Cocanour,
Captain, U.S. Coast Guard, Captain of the
Port, Lake Michigan.
[FR Doc. 2017–14531 Filed 7–11–17; 8:45 am]
BILLING CODE 9110–04–P
PART 165—REGULATED NAVIGATION
AREAS AND LIMITED ACCESS AREAS
1. The authority citation for part 165
continues to read as follows:
■
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38 CFR Part 74
VA Veteran-Owned Small Business
Verification Guidelines
Department of Veterans Affairs.
Final rule.
AGENCY:
ACTION:
This document implements a
portion of the Veterans Benefits, Health
Care, and Information Technology Act
of 2006, which requires the Department
of Veterans Affairs (VA) to verify
ownership and control of veteranowned small businesses (VOSBs),
including service-disabled veteranowned small businesses (SDVOSBs) in
order for these firms to participate in
VA acquisitions set-aside for SDVOSB/
VOSBs. This rule contains a minor
revision to require re-verification of
SDVOSB/VOSB status once every three
years rather than biennially. The
purpose of this change is to reduce the
administrative burden on SDVOSB/
VOSBs regarding participation in VA
acquisitions set asides for these types of
firms.
DATES: Effective Date: July 12, 2017.
FOR FURTHER INFORMATION CONTACT:
Thomas McGrath, Director, Center for
Verification and Evaluation (00VE),
Department of Veterans Affairs, 810
Vermont Ave. NW., Washington, DC
20420, phone (202) 461–4300.
SUPPLEMENTARY INFORMATION: On
February 21, 2017, VA published in the
Federal Register (82 FR 11154) an
interim final rule to revise VA’s rules
regarding the length of the eligibility
period for inclusion in the Vendor
Information Pages database. Interested
persons were invited to submit written
comments on or before April 24, 2017.
VA received numerous comments from
members of the public.
In a final rule published in the
Federal Register on February 8, 2010,
(75 FR 6098), VA established 38 Code of
Federal Regulations (CFR) part 74,
which set forth a mechanism for
verifying ownership and control of
VOSBs and SDVOSBs. At that time, VA
anticipated that annual examinations
were necessary to ensure the integrity of
the Verification Program and was
deemed consistent with the annual
Federal size and status recertification
requirement in the Central Contractor
Registry. In June of 2012, the eligibility
period was extended to two years.
VA has determined that a biennial
examination is not necessary to
adequately maintain the integrity of the
SUMMARY:
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nlaroche on DSK30NT082PROD with RULES
32138
Federal Register / Vol. 82, No. 132 / Wednesday, July 12, 2017 / Rules and Regulations
program and proposed a three year
eligibility period. This change is
appropriate because VA conducts a
robust examination of personal and
company documentation to verify
ownership and control by Veterans of
applicant businesses. In addition to
verifying individual owners’ servicedisabled veteran status or veteran status,
VA reviews the following documents in
accordance with 38 CFR 74.12: An
applicant’s financial statements; Federal
personal and business tax returns;
personal history statements; articles of
incorporation/organization; corporate
by-laws or operating agreements;
organizational, annual, and board/
member meeting records; stock ledgers
and certificates; state-issued certificates
of good standing; contract, lease, and
loan agreements; payroll records; bank
account signature cards; and licenses.
Given the depth of this review, biennial
re-verification examinations have
become an unnecessary administrative
burden on both participants and VA.
Moreover, VA is confident that the
integrity of the verification program will
not be compromised by establishing a
three year eligibility period. This is
evidenced by fiscal year 2016 data from
VA’s Center for Verification and
Evaluation (CVE), which administers
the verification program, which shows
that from a total of 1,109 reverification
applications, only 11 were denied.
Therefore, only 0.9 percent of firms
submitting re-verification applications
were found to be ineligible after two
years. Furthermore, other aspects of the
verification program ensure that
establishing a three year eligibility
period will not undermine the integrity
of the verification program. For
example, 38 CFR 74.15(a) mandates that
the participant, once verified, must
maintain its eligibility during its tenure.
Moreover, if ownership or control
changes occur, the participant must
inform VA’s CVE of any changes that
would adversely affect its eligibility.
Additionally, in accordance with 38
CFR 74.20(a), VA has the right to
conduct random, unannounced site
examinations of participants or conduct
a further examination upon receipt of
specific and credible information that a
participant is no longer eligible. Lastly,
status protests provide VA contracting
officers and SDVOSB/VOSBs alike an
opportunity, where appropriate, to
challenge the SDVOSB/VOSB status of a
verified firm in connection with
SDVOSB/VOSB set-aside acquisitions.
Additionally, establishment of a
longer, three year eligibility period is
consistent with other Federal set-aside
programs. With respect to the
Historically Underutilized Business
VerDate Sep<11>2014
14:05 Jul 11, 2017
Jkt 241001
Zone (HUBZone) small business
certification program, U.S. Small
Business Administration (SBA)
regulations at 13 CFR 126.500 require
that any qualified HUBZone small
business concern seeking to remain on
the HUBZone approved list must
recertify every three years with SBA.
With regard to SBA’s Section 8(a)
Business Development program, SBA
authorizes a program term of up to nine
years in 13 CFR 124.2.
Furthermore, VA’s determination that
an eligibility period of three years is
reasonable given the mandatory nature
of VA’s SDVOSB/VOSB set-aside
authority. In accordance with 38 United
States Code (U.S.C.) 8127 and VA
Acquisition Regulation, 48 CFR part
819, VA is required to set aside any
open market procurement for SDVOSBs
and VOSBs, if two or more such
concerns are reasonably anticipated to
submit offers at fair and reasonable
pricing. Given the large volume of
appropriated funds subject to these setaside requirements, a three year
eligibility period prior to re-examination
is appropriate to balance the burden on
SDVOSB/VOSBs and to protect the
integrity of the program.
VA received comments requesting
clarification as to whether currently
verified SDVOSBs/VOSBs would be
automatically extended. All firms that
were verified and in the VIP database
automatically had their eligibility term
extended by one year.
Numerous commenters expressed
support for the extension of the
eligibility period, asserting that it allows
veterans more time to focus on the
success of their businesses, and reduces
their administrative burden of gathering
and submitting the required
documentation. One such commenter
supported the extension, but suggested
that firms should be required to submit
a certified statement stating that the
firm’s ownership stake has not changed,
and based on the original certifying
criteria that they are still eligible for
their status at the two year mark. The
comment continues to suggest that any
firm unable to provide the statement
would be required to re-verify at that
time. However, VA’s risk analysis on the
extension has shown that risk of
extending the period from two to three
years is very low, and that requiring
firms to submit a statement at the two
year mark is an unnecessary
administrative burden on both the firm
and the government. Therefore, we will
not make any changes to the rule based
on this comment.
Another commenter asserted that VA
should have issued this change as a
proposed rule rather than an interim
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final rule because the determination of
good cause that exempts this rule from
the notice and comment procedures is
incorrect; the notice and comment is not
impracticable, unnecessary, or contrary
to public interest. VA has determined
that relieving the administrative burden
on both program participants and
verifying officials, and eliminating
delays in verification caused by
repetitive biennial reviews, is in the best
interest of the public. Therefore, we will
not make any changes to the rule based
on this comment.
VA appreciates the comments
submitted in response to the interim
final rule. This final rule adopts the
interim final rule as a final rule without
change.
Regulatory Flexibility Act
The Regulatory Flexibility Act, 5
U.S.C. 601–612, applies to this final
rule. This final rule is generally neutral
in its effect on small businesses because
it relates only to small businesses
applying for verified status in VA’s
SDVOSB/VOSB verified database. The
overall impact of the rule benefits small
businesses owned by veterans or
service-disabled veterans because it
reduces the administrative burden
associated with maintaining verified
status by extending the period for reverification from two years to three
years. VA has estimated the cost to an
individual business to be insignificant.
Increasing the verification period will
decrease the frequency of any costs
associated with document submission.
On this basis, the Secretary certifies that
the adoption of this final rule would not
have a significant economic impact on
a substantial number of small entities as
they are defined in the Regulatory
Flexibility Act, 5 U.S.C. 601–612.
Therefore, under 5 U.S.C. 605(b), this
regulation is exempt from the initial and
final regulatory flexibility analysis
requirements of sections 603 and 604.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
direct agencies to assess the costs and
benefits of available regulatory
alternatives and, when regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, and other advantages;
distributive impacts; and equity).
Executive Order 13563 (Improving
Regulation and Regulatory Review)
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. Executive Order
12866 (Regulatory Planning and
E:\FR\FM\12JYR1.SGM
12JYR1
Federal Register / Vol. 82, No. 132 / Wednesday, July 12, 2017 / Rules and Regulations
Review) defines a ‘‘significant
regulatory action,’’ which requires
review by the Office of Management and
Budget, as ‘‘any regulatory action that is
likely to result in a rule that may: (1)
Have an annual effect on the economy
of $100 million or more or adversely
affect in a material way the economy, a
sector of the economy, productivity,
competition, jobs, the environment,
public health or safety, or State, local,
or tribal governments or communities;
(2) Create a serious inconsistency or
otherwise interfere with an action taken
or planned by another agency; (3)
Materially alter the budgetary impact of
entitlements, grants, user fees, or loan
programs or the rights and obligations of
recipients thereof; or (4) Raise novel
legal or policy issues arising out of legal
mandates, the President’s priorities, or
the principles set forth in this Executive
Order.’’
The economic, interagency,
budgetary, legal, and policy
implications of this regulatory action
have been examined and it has been
determined not to be a significant
regulatory action under Executive Order
12866.
Unfunded Mandates
The Unfunded Mandates Reform Act
of 1995 requires, at 2 U.S.C. 1532, that
agencies prepare an assessment of
anticipated costs and benefits before
issuing any rule that may result in the
expenditure by state, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
(adjusted annually for inflation) in any
given year. This final rule has no such
effect on state, local, and tribal
governments, or on the private sector.
approved this document on July 5, 2017,
for publication.
List of Subjects in 38 CFR Part 74
Administrative practice and
procedures, Privacy, Reporting and
recordkeeping requirements, Small
business, Veteran, Veteran-owned small
business, Verification.
Dated: July 7, 2017.
Michael Shores,
Director, Regulation Policy & Management,
Office of the Secretary, Department of
Veterans Affairs.
PART 74—VETERANS SMALL
BUSINESS REGULATIONS
Accordingly, the interim rule
amending 38 CFR part 74 which was
published at 82 FR 11154 on February
21, 2017, is adopted as final without
change.
[FR Doc. 2017–14600 Filed 7–11–17; 8:45 am]
BILLING CODE 8320–01–P
DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety
Administration
49 CFR Part 578
[Docket No. NHTSA–2016–0136]
RIN 2127–AL82
Civil Penalties
National Highway Traffic
Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Final rule; delay of effective
date.
AGENCY:
This document contains no provisions
constituting a collection of information
under the Paperwork Reduction Act of
1995 (44 U.S.C. 3501–3521).
NHTSA is delaying the
effective date of the final rule entitled
‘‘Civil Penalties,’’ published in the
Federal Register on December 28, 2016,
because NHTSA is reconsidering the
appropriate level for CAFE civil
penalties.
Catalog of Federal Domestic Assistance
DATES:
Paperwork Reduction Act
This final rule affects the verification
guidelines of veteran-owned small
businesses, for which there is no Catalog
of Federal Domestic Assistance program
number.
nlaroche on DSK30NT082PROD with RULES
Signing Authority
The Secretary of Veterans Affairs, or
designee, approved this document and
authorized the undersigned to sign and
submit the document to the Office of the
Federal Register for publication
electronically as an official document of
the Department of Veterans Affairs. Gina
S. Farrisee, Deputy Chief of Staff,
Department of Veterans Affairs,
VerDate Sep<11>2014
17:19 Jul 11, 2017
Jkt 241001
SUMMARY:
As of July 7, 2017, the effective
date of the final rule published in the
Federal Register on December 28, 2016,
at 81 FR 95489, is delayed indefinitely
pending reconsideration.
FOR FURTHER INFORMATION CONTACT:
Rebecca Schade, Office of Chief
Counsel, at (202) 366–2992.
SUPPLEMENTARY INFORMATION: On July 5,
2016, NHTSA published an interim
final rule updating the maximum civil
penalty amounts for violations of
statutes and regulations administered by
NHTSA, pursuant to the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act of 2015 (Inflation
Adjustment Act). The penalty for
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32139
exceeding an applicable Corporate
Average Fuel Economy (CAFE) standard
was among the penalties adjusted for
inflation in the interim final rule. In
accordance with the Inflation
Adjustment Act and guidance on
calculating the inflationary adjustment
mandated by the Act issued by the
Office of Management and Budget,
NHTSA increased the civil penalty for
failing to meet an applicable CAFE
standard from $5.50 per tenth of a mile
per gallon (mpg) to $14 per tenth of an
mpg.
The Auto Alliance and Global
Automakers jointly petitioned NHTSA
for reconsideration of the interim final
rule regarding the inflationary
adjustment of CAFE non-compliance
penalties (hereafter, the Alliance and
Global petition will be referred to as the
‘‘Industry Petition’’) 1 on August 1,
2016. The Industry Petition argued that
NHTSA used the wrong base year to
calculate the inflationary adjustment to
the CAFE civil penalty and raised
concerns about applying the adjusted
civil penalty retroactively. The Industry
Petition also argued that in the event
that NHTSA chose not to adopt the base
year suggested in the petition, NHTSA
should seek comment on whether
NHTSA should adopt a lower penalty
level than the one in the interim final
rule based on ‘‘negative economic
impacts,’’ as permitted by the Inflation
Adjustment Act.
On December 28, 2016, NHTSA
published a final rule in response to the
Industry Petition.2 To address concerns
raised in the Industry Petition about
applying the adjusted penalty
retroactively, NHTSA delayed
application of the $14 per tenth of an
mpg penalty until the 2019 model year,
which begins in October 2018 for most
manufacturers. The final rule did not
address the other points raised in the
Industry Petition.
The December 28, 2016 final rule is
not yet effective and would currently
become effective on July 10, 2017.3
NHTSA is now reconsidering the final
rule because the final rule did not give
adequate consideration to all of the
relevant issues, including the potential
economic consequences of increasing
CAFE penalties by potentially $1 billion
per year, as estimated in the Industry
Petition. Thus, in a separate document
1 Jaguar Land Rover North America, LLC also
filed a petition for reconsideration in response to
the July 5, 2016 interim final rule raising the same
concerns as those raised in the Industry Petition.
Both petitions can be found in Docket No. NHTSA–
2016–0075, accessible via www.regulations.gov.
2 81 FR 95489.
3 82 FR 8694 (Jan. 30, 2017); 82 FR 15302 (Mar.
28, 2017); 82 FR 29009 (June 27, 2017).
E:\FR\FM\12JYR1.SGM
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]]>Agencies
[Federal Register Volume 82, Number 132 (Wednesday, July 12, 2017)]
[Rules and Regulations]
[Pages 32137-32139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14600]
=======================================================================
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 74
RIN 2900-AP93
VA Veteran-Owned Small Business Verification Guidelines
AGENCY: Department of Veterans Affairs.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document implements a portion of the Veterans Benefits,
Health Care, and Information Technology Act of 2006, which requires the
Department of Veterans Affairs (VA) to verify ownership and control of
veteran-owned small businesses (VOSBs), including service-disabled
veteran-owned small businesses (SDVOSBs) in order for these firms to
participate in VA acquisitions set-aside for SDVOSB/VOSBs. This rule
contains a minor revision to require re-verification of SDVOSB/VOSB
status once every three years rather than biennially. The purpose of
this change is to reduce the administrative burden on SDVOSB/VOSBs
regarding participation in VA acquisitions set asides for these types
of firms.
DATES: Effective Date: July 12, 2017.
FOR FURTHER INFORMATION CONTACT: Thomas McGrath, Director, Center for
Verification and Evaluation (00VE), Department of Veterans Affairs, 810
Vermont Ave. NW., Washington, DC 20420, phone (202) 461-4300.
SUPPLEMENTARY INFORMATION: On February 21, 2017, VA published in the
Federal Register (82 FR 11154) an interim final rule to revise VA's
rules regarding the length of the eligibility period for inclusion in
the Vendor Information Pages database. Interested persons were invited
to submit written comments on or before April 24, 2017. VA received
numerous comments from members of the public.
In a final rule published in the Federal Register on February 8,
2010, (75 FR 6098), VA established 38 Code of Federal Regulations (CFR)
part 74, which set forth a mechanism for verifying ownership and
control of VOSBs and SDVOSBs. At that time, VA anticipated that annual
examinations were necessary to ensure the integrity of the Verification
Program and was deemed consistent with the annual Federal size and
status recertification requirement in the Central Contractor Registry.
In June of 2012, the eligibility period was extended to two years.
VA has determined that a biennial examination is not necessary to
adequately maintain the integrity of the
[[Page 32138]]
program and proposed a three year eligibility period. This change is
appropriate because VA conducts a robust examination of personal and
company documentation to verify ownership and control by Veterans of
applicant businesses. In addition to verifying individual owners'
service-disabled veteran status or veteran status, VA reviews the
following documents in accordance with 38 CFR 74.12: An applicant's
financial statements; Federal personal and business tax returns;
personal history statements; articles of incorporation/organization;
corporate by-laws or operating agreements; organizational, annual, and
board/member meeting records; stock ledgers and certificates; state-
issued certificates of good standing; contract, lease, and loan
agreements; payroll records; bank account signature cards; and
licenses. Given the depth of this review, biennial re-verification
examinations have become an unnecessary administrative burden on both
participants and VA.
Moreover, VA is confident that the integrity of the verification
program will not be compromised by establishing a three year
eligibility period. This is evidenced by fiscal year 2016 data from
VA's Center for Verification and Evaluation (CVE), which administers
the verification program, which shows that from a total of 1,109
reverification applications, only 11 were denied. Therefore, only 0.9
percent of firms submitting re-verification applications were found to
be ineligible after two years. Furthermore, other aspects of the
verification program ensure that establishing a three year eligibility
period will not undermine the integrity of the verification program.
For example, 38 CFR 74.15(a) mandates that the participant, once
verified, must maintain its eligibility during its tenure. Moreover, if
ownership or control changes occur, the participant must inform VA's
CVE of any changes that would adversely affect its eligibility.
Additionally, in accordance with 38 CFR 74.20(a), VA has the right to
conduct random, unannounced site examinations of participants or
conduct a further examination upon receipt of specific and credible
information that a participant is no longer eligible. Lastly, status
protests provide VA contracting officers and SDVOSB/VOSBs alike an
opportunity, where appropriate, to challenge the SDVOSB/VOSB status of
a verified firm in connection with SDVOSB/VOSB set-aside acquisitions.
Additionally, establishment of a longer, three year eligibility
period is consistent with other Federal set-aside programs. With
respect to the Historically Underutilized Business Zone (HUBZone) small
business certification program, U.S. Small Business Administration
(SBA) regulations at 13 CFR 126.500 require that any qualified HUBZone
small business concern seeking to remain on the HUBZone approved list
must recertify every three years with SBA. With regard to SBA's Section
8(a) Business Development program, SBA authorizes a program term of up
to nine years in 13 CFR 124.2.
Furthermore, VA's determination that an eligibility period of three
years is reasonable given the mandatory nature of VA's SDVOSB/VOSB set-
aside authority. In accordance with 38 United States Code (U.S.C.) 8127
and VA Acquisition Regulation, 48 CFR part 819, VA is required to set
aside any open market procurement for SDVOSBs and VOSBs, if two or more
such concerns are reasonably anticipated to submit offers at fair and
reasonable pricing. Given the large volume of appropriated funds
subject to these set-aside requirements, a three year eligibility
period prior to re-examination is appropriate to balance the burden on
SDVOSB/VOSBs and to protect the integrity of the program.
VA received comments requesting clarification as to whether
currently verified SDVOSBs/VOSBs would be automatically extended. All
firms that were verified and in the VIP database automatically had
their eligibility term extended by one year.
Numerous commenters expressed support for the extension of the
eligibility period, asserting that it allows veterans more time to
focus on the success of their businesses, and reduces their
administrative burden of gathering and submitting the required
documentation. One such commenter supported the extension, but
suggested that firms should be required to submit a certified statement
stating that the firm's ownership stake has not changed, and based on
the original certifying criteria that they are still eligible for their
status at the two year mark. The comment continues to suggest that any
firm unable to provide the statement would be required to re-verify at
that time. However, VA's risk analysis on the extension has shown that
risk of extending the period from two to three years is very low, and
that requiring firms to submit a statement at the two year mark is an
unnecessary administrative burden on both the firm and the government.
Therefore, we will not make any changes to the rule based on this
comment.
Another commenter asserted that VA should have issued this change
as a proposed rule rather than an interim final rule because the
determination of good cause that exempts this rule from the notice and
comment procedures is incorrect; the notice and comment is not
impracticable, unnecessary, or contrary to public interest. VA has
determined that relieving the administrative burden on both program
participants and verifying officials, and eliminating delays in
verification caused by repetitive biennial reviews, is in the best
interest of the public. Therefore, we will not make any changes to the
rule based on this comment.
VA appreciates the comments submitted in response to the interim
final rule. This final rule adopts the interim final rule as a final
rule without change.
Regulatory Flexibility Act
The Regulatory Flexibility Act, 5 U.S.C. 601-612, applies to this
final rule. This final rule is generally neutral in its effect on small
businesses because it relates only to small businesses applying for
verified status in VA's SDVOSB/VOSB verified database. The overall
impact of the rule benefits small businesses owned by veterans or
service-disabled veterans because it reduces the administrative burden
associated with maintaining verified status by extending the period for
re-verification from two years to three years. VA has estimated the
cost to an individual business to be insignificant. Increasing the
verification period will decrease the frequency of any costs associated
with document submission. On this basis, the Secretary certifies that
the adoption of this final rule would not have a significant economic
impact on a substantial number of small entities as they are defined in
the Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore, under 5
U.S.C. 605(b), this regulation is exempt from the initial and final
regulatory flexibility analysis requirements of sections 603 and 604.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 direct agencies to assess the
costs and benefits of available regulatory alternatives and, when
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, and other advantages; distributive impacts;
and equity). Executive Order 13563 (Improving Regulation and Regulatory
Review) emphasizes the importance of quantifying both costs and
benefits, reducing costs, harmonizing rules, and promoting flexibility.
Executive Order 12866 (Regulatory Planning and
[[Page 32139]]
Review) defines a ``significant regulatory action,'' which requires
review by the Office of Management and Budget, as ``any regulatory
action that is likely to result in a rule that may: (1) Have an annual
effect on the economy of $100 million or more or adversely affect in a
material way the economy, a sector of the economy, productivity,
competition, jobs, the environment, public health or safety, or State,
local, or tribal governments or communities; (2) Create a serious
inconsistency or otherwise interfere with an action taken or planned by
another agency; (3) Materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs or the rights and
obligations of recipients thereof; or (4) Raise novel legal or policy
issues arising out of legal mandates, the President's priorities, or
the principles set forth in this Executive Order.''
The economic, interagency, budgetary, legal, and policy
implications of this regulatory action have been examined and it has
been determined not to be a significant regulatory action under
Executive Order 12866.
Unfunded Mandates
The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C.
1532, that agencies prepare an assessment of anticipated costs and
benefits before issuing any rule that may result in the expenditure by
state, local, and tribal governments, in the aggregate, or by the
private sector, of $100 million or more (adjusted annually for
inflation) in any given year. This final rule has no such effect on
state, local, and tribal governments, or on the private sector.
Paperwork Reduction Act
This document contains no provisions constituting a collection of
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).
Catalog of Federal Domestic Assistance
This final rule affects the verification guidelines of veteran-
owned small businesses, for which there is no Catalog of Federal
Domestic Assistance program number.
Signing Authority
The Secretary of Veterans Affairs, or designee, approved this
document and authorized the undersigned to sign and submit the document
to the Office of the Federal Register for publication electronically as
an official document of the Department of Veterans Affairs. Gina S.
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs,
approved this document on July 5, 2017, for publication.
List of Subjects in 38 CFR Part 74
Administrative practice and procedures, Privacy, Reporting and
recordkeeping requirements, Small business, Veteran, Veteran-owned
small business, Verification.
Dated: July 7, 2017.
Michael Shores,
Director, Regulation Policy & Management, Office of the Secretary,
Department of Veterans Affairs.
PART 74--VETERANS SMALL BUSINESS REGULATIONS
Accordingly, the interim rule amending 38 CFR part 74 which was
published at 82 FR 11154 on February 21, 2017, is adopted as final
without change.
[FR Doc. 2017-14600 Filed 7-11-17; 8:45 am]
BILLING CODE 8320-01-P
