Streamlining Surety Bond Guarantee Program, 25496-25497 [2019-11509]

Download as PDF jbell on DSK3GLQ082PROD with PROPOSALS 25496 Federal Register / Vol. 84, No. 106 / Monday, June 3, 2019 / Proposed Rules feasibility of weaponizing commercially available products containing ammonium nitrate before establishing a threshold percentage and quantity of ammonium nitrate that would be subject to regulation. DHS entered into an interagency agreement with the Department of Energy (DOE) on July 12, 2012 to obtain the technical expertise of Sandia National Laboratories (SNL) and to perform testing and collect data on the feasibility of weaponizing commercially available products, chemicals, and mixtures containing ammonium nitrate. The Department initiated this activity to inform both the Ammonium Nitrate Security Program rulemaking and other DHS bombing prevention and chemical security initiatives. SNL performed a literature review to determine areas in need of technical assessments. SNL then designed technical assessments to determine the effects of total mass, physical form, and dilution on the detonability of ammonium nitrate mixtures using materials and under conditions realistic to terrorism bomb design or otherwise favorable to support detonation. SNL’s technical assessments and results were reviewed on two occasions by a panel of subject matter experts, which included Federal employees from the Department of Homeland Security, the Department of Justice, the Department of Defense, the Department of State, and the Office of the Director of National Intelligence. SNL then produced a final technical report detailing the technical assessment test plans, performance, data, and a summary of the review and assessment of technical data performed by the panel. The SNL test results showed that formulations of ammonium nitrate and pre-fabricated ammonium nitrate mixtures with various fuels would detonate with one pound of ammonium nitrate, the lowest mass tested. The results also showed that a minimum concentration level of 15% ammonium nitrate diluted with dolomite in a mixture containing a fuel detonated and that dilutions of ammonium sulfate detonated at a concentration level of 25% ammonium nitrate. When presented with the results of the testing, the panel of subject matter experts concluded that mixtures containing one pound of ammonium nitrate were detonable on the test diagnostics and that a minimum detonable level of 10% ammonium nitrate by weight could be technically defended, providing a small margin of safety beyond the 15% level, which showed a weak detonation. The Department believes that release of SNL’s final report will provide VerDate Sep<11>2014 16:08 May 31, 2019 Jkt 247001 important information to those who manufacture, store, process, or engage in other transactions involving ammonium nitrate. The Department is releasing SNL’s final report in a redacted format to protect information that could reasonably be expected to harm national security and/or endanger individuals’ lives or physical safety because it could allow adversaries to develop effective, optimized improvised explosive devices (IEDs). Public Participation As noted, the SNL technical report was developed to contribute to the Department’s body of knowledge on the detonability of ammonium nitrate and to inform the rulemaking process. The Department is therefore adding the report to the public docket for the proposed rule and is requesting comment from the public on the report and its potential application to the proposed definition of ammonium nitrate. The Department is specifically requesting comment on the scientific methodology and test plans SNL employed, technical data generated by SNL and test results, and factors affecting detonability thresholds. The Department would also like comment on the appropriateness of the proposed ammonium nitrate definition in light of the newly available evidence in the report, such as whether the report supports changes to the proposed mixture and weight thresholds, and the potential economic impacts of any changes to the proposed definition. Comments that will provide the most assistance to the Department will refer to a specific section, appendix, figure, and/or table of the technical report, explain the reason for any comments, and include other information or authority that supports such comments. This Notice is issued under the authority of 6 U.S.C. 488a. Dated: May 28, 2019. David Wulf, Director, Infrastructure Security Compliance Division, Infrastructure Security Division, Cybersecurity and Infrastructure Security Agency, Department of Homeland Security. [FR Doc. 2019–11493 Filed 5–31–19; 8:45 am] BILLING CODE 9110–9P–P PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 SMALL BUSINESS ADMINISTRATION 13 CFR Part 115 [Docket No. SBA–2019–0001] RIN 3245–AH08 Streamlining Surety Bond Guarantee Program U.S. Small Business Administration. ACTION: Advance notice of proposed rulemaking. AGENCY: The U.S. Small Business Administration (SBA) is soliciting comments from the public on identifying which of SBA’s regulations relating to SBA’s Surety Bond Guarantee Program (SBG) should be repealed, replaced, or modified because they are obsolete, unnecessary, ineffective, or burdensome. SBA is also soliciting comments from the public on how SBA can improve the surety bond products, procedures, forms, and reporting requirements of the SBG Program. DATES: Comments must be received on or before August 2, 2019. ADDRESSES: You may submit comments, identified by RIN 3245–AH08, docket number [SBA–2019–0001] by any of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Mail: Jermanne Perry, Management Analyst, Office of Surety Guarantees, U.S. Small Business Administration, 409 3rd Street SW, 8th floor, Washington, DC 20416. • Hand Delivery/Courier: Jermanne Perry, Management Analyst, Office of Surety Guarantees, U.S. Small Business Administration, 409 3rd Street SW, 8th floor, Washington, DC 20416. All comments will be posted 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 Jermanne Perry, Management Analyst, Office of Surety Guarantees, U.S. Small Business Administration, 409 3rd Street SW, 8th Floor, Washington, DC 20416, or send an email to Jermanne.perry@ sba.gov. Highlight the information that you consider to be CBI and explain why you believe SBA should hold this information as confidential. SBA will review the information and make the final determination on whether it will publish the information. FOR FURTHER INFORMATION CONTACT: Jermanne Perry, Management Analyst, Office of Surety Guarantees, at (202) 401–8275 or Jermanne.perry@sba.gov. SUMMARY: E:\FR\FM\03JNP1.SGM 03JNP1 Federal Register / Vol. 84, No. 106 / Monday, June 3, 2019 / Proposed Rules jbell on DSK3GLQ082PROD with PROPOSALS SUPPLEMENTARY INFORMATION: I. General Information The U.S. Small Business Administration (SBA) guarantees bid, payment, and performance bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA’s guarantee, authorized pursuant to Part B of Title IV of the Small Business Investment Act of 1958, 15 U.S.C. 694a et seq., gives Sureties an incentive to provide bonding for small businesses and, thereby, assists small businesses in obtaining greater access to contracting opportunities. SBA’s guarantee is an agreement between a Surety and SBA that SBA will assume a certain percentage of the Surety’s loss should a contractor default on the underlying contract. SBA is authorized to guarantee a Surety for a contract up to $6.5 million and, with the certification of a contracting officer of a Federal agency, up to $10 million. For more information about SBA’s Surety Bond Guarantee Program, see https://www.sba.gov/ funding-programs/surety-bonds. The regulations governing the Surety Bond Guarantee (SBG) Program are codified in 13 CFR part 115: Subpart A of part 115 contains provisions that apply to all surety bond guarantees; subpart B contains provisions that apply to the bond guarantees subject to prior approval by SBA; and subpart C contains provisions that apply to the bond guarantees that Preferred Surety Bond Sureties may issue under delegated authority. SBA is inviting comments from the public on identifying which of these regulations should be repealed, replaced, or modified because they are obsolete, unnecessary, ineffective, or burdensome. (In 2017, SBA published a similar request that covered all the agency’s programs and regulations, see 82 FR 38618 (August 15, 2017), but SBA received no comments on part 115. By focusing only on the SBG Program, SBA believes that this request is more likely to receive the attention of interested parties.) In addition, SBA is interested in receiving comments from the public on how SBA can improve the surety bond products, procedures, forms, and reporting requirements of the SBG Program. SBA is also considering whether to make changes to certain specific regulations and invites comments from the public on these issues. For example, SBA has received requests from Prior Approval Sureties to change the criteria in § 115.30(d)(2) for using the Quick Bond Guarantee Application and Agreement (SBA Form 990A), including VerDate Sep<11>2014 16:08 May 31, 2019 Jkt 247001 increasing the maximum contract amount of $400,000, the maximum contract period of 12 months, the $1,000 per day limit on liquidated damages, and eliminating the prohibition against contracts involving demolition. In addition, under § 115.14(a)(3), a contractor loses eligibility for future SBA assistance if the Surety has established a claim reserve of at least $1,000 for an outstanding SBAguarantee bond. SBA is considering whether the claim reserve amount is set at the correct amount to mitigate future risk and, if not, what the amount should be. SBA is also considering whether the regulations that set the minimum amount for collecting or refunding the Principal and Surety guarantee fees, including §§ 115.32(d)(2) and (3) and 115.67(a) and (b), should be changed by increasing the amount from the current $40. II. List of Questions for Commenters The list of questions below is meant to assist in the formulation of public comments and is not intended to restrict the issues that may be addressed. SBA requests that commenters identify the specific regulation at issue and explain, in as much detail as possible, why the regulation should be streamlined, expanded, or repealed, including estimated cost savings and benefits to small businesses and other stakeholders. 1. Are there regulations in 13 CFR part 115 that have become unnecessary or ineffective and, if so, what are they? 2. Are there regulations in 13 CFR part 115 that can be repealed without impairing SBA’s Surety Bond Guarantee Program and, if so, what are they? 3. Are there regulations in 13 CFR part 115 that have become outdated and, if so, how can they be modernized to better accomplish their regulatory objectives? 4. Are there regulations in 13 CFR part 115 that are still necessary, but which have not operated as well as expected such that a modified approach is justified, and what is that approach? 5. Are there regulations or regulatory processes in 13 CFR part 115 that are too complicated or could be streamlined to achieve regulatory objectives more efficiently? 6. Are there any technological developments that can be leveraged to modify, streamline, or repeal any existing regulatory requirements in 13 CFR part 115? 7. Should SBA make changes to any of the criteria set forth in § 115.30(d)(2) under which a Prior Approval Surety may use the Quick Bond Guarantee Application and Agreement (SBA Form PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 25497 990A)? If yes, describe the change and provide the reason for your response. 8. Under § 115.14(a)(3), a contractor (and its affiliates) loses eligibility for further SBA bond guarantees if the Surety has established a claim reserve for an SBA-guaranteed bond of at least $1,000. Should SBA change the claim reserve amount? If so, describe the change and provide the reasons for your response. 9. Should SBA increase the minimum amount for collecting or refunding Principal and Surety guarantee fees from $40? If yes, what should the amount be? Please provide reasons for your response. 10. In addition to the types of bonds that are currently offered through the SBG Program, are there any other surety bond products that you would like SBA to offer through its SBG Program that would assist small businesses in need of government assistance? If so, describe the product and how it would benefit small businesses. Interested parties are invited to provide any other comments that they may have relating to the concerns described in this advance notice of proposed rulemaking. We ask that you provide a brief justification for any suggested changes. Authority: 15 U.S.C. 692, 694 and 695; Sec. 12079, Pub. L. 110–246, 122 Stat. 1651; E.O. 13771; E.O. 13777. Dated: May 23, 2019. Christopher M. Pilkerton, Acting Administrator. [FR Doc. 2019–11509 Filed 5–31–19; 8:45 am] BILLING CODE 8026–03–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA–2019–0347; Airspace Docket No. 19–AEA–6] RIN 2120–AA66 Proposed Establishment of Class E Airspace; Cortland, Elmira, Ithaca, and Endicott, NY Federal Aviation Administration (FAA), DOT. ACTION: Notice of proposed rulemaking (NPRM). AGENCY: This action proposes to establish Class E airspace extending upward from 700 feet above the surface at Cortland County Airport-Chase Field, Cortland, NY, Elmira/Corning Regional Airport, Elmira/Corning, NY, Ithaca SUMMARY: E:\FR\FM\03JNP1.SGM 03JNP1

Agencies

[Federal Register Volume 84, Number 106 (Monday, June 3, 2019)]
[Proposed Rules]
[Pages 25496-25497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11509]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 115

[Docket No. SBA-2019-0001]
RIN 3245-AH08


Streamlining Surety Bond Guarantee Program

AGENCY: U.S. Small Business Administration.

ACTION: Advance notice of proposed rulemaking.

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

SUMMARY: The U.S. Small Business Administration (SBA) is soliciting 
comments from the public on identifying which of SBA's regulations 
relating to SBA's Surety Bond Guarantee Program (SBG) should be 
repealed, replaced, or modified because they are obsolete, unnecessary, 
ineffective, or burdensome. SBA is also soliciting comments from the 
public on how SBA can improve the surety bond products, procedures, 
forms, and reporting requirements of the SBG Program.

DATES: Comments must be received on or before August 2, 2019.

ADDRESSES: You may submit comments, identified by RIN 3245-AH08, docket 
number [SBA-2019-0001] by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments.
     Mail: Jermanne Perry, Management Analyst, Office of Surety 
Guarantees, U.S. Small Business Administration, 409 3rd Street SW, 8th 
floor, Washington, DC 20416.
     Hand Delivery/Courier: Jermanne Perry, Management Analyst, 
Office of Surety Guarantees, U.S. Small Business Administration, 409 
3rd Street SW, 8th floor, Washington, DC 20416.
    All comments will be posted 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 Jermanne Perry, Management Analyst, Office of Surety 
Guarantees, U.S. Small Business Administration, 409 3rd Street SW, 8th 
Floor, Washington, DC 20416, or send an email to 
[email protected]. Highlight the information that you consider to 
be CBI and explain why you believe SBA should hold this information as 
confidential. SBA will review the information and make the final 
determination on whether it will publish the information.

FOR FURTHER INFORMATION CONTACT: Jermanne Perry, Management Analyst, 
Office of Surety Guarantees, at (202) 401-8275 or 
[email protected].

[[Page 25497]]


SUPPLEMENTARY INFORMATION:

I. General Information

    The U.S. Small Business Administration (SBA) guarantees bid, 
payment, and performance bonds for small and emerging contractors who 
cannot obtain surety bonds through regular commercial channels. SBA's 
guarantee, authorized pursuant to Part B of Title IV of the Small 
Business Investment Act of 1958, 15 U.S.C. 694a et seq., gives Sureties 
an incentive to provide bonding for small businesses and, thereby, 
assists small businesses in obtaining greater access to contracting 
opportunities. SBA's guarantee is an agreement between a Surety and SBA 
that SBA will assume a certain percentage of the Surety's loss should a 
contractor default on the underlying contract. SBA is authorized to 
guarantee a Surety for a contract up to $6.5 million and, with the 
certification of a contracting officer of a Federal agency, up to $10 
million. For more information about SBA's Surety Bond Guarantee 
Program, see https://www.sba.gov/funding-programs/surety-bonds.
    The regulations governing the Surety Bond Guarantee (SBG) Program 
are codified in 13 CFR part 115: Subpart A of part 115 contains 
provisions that apply to all surety bond guarantees; subpart B contains 
provisions that apply to the bond guarantees subject to prior approval 
by SBA; and subpart C contains provisions that apply to the bond 
guarantees that Preferred Surety Bond Sureties may issue under 
delegated authority. SBA is inviting comments from the public on 
identifying which of these regulations should be repealed, replaced, or 
modified because they are obsolete, unnecessary, ineffective, or 
burdensome. (In 2017, SBA published a similar request that covered all 
the agency's programs and regulations, see 82 FR 38618 (August 15, 
2017), but SBA received no comments on part 115. By focusing only on 
the SBG Program, SBA believes that this request is more likely to 
receive the attention of interested parties.) In addition, SBA is 
interested in receiving comments from the public on how SBA can improve 
the surety bond products, procedures, forms, and reporting requirements 
of the SBG Program.
    SBA is also considering whether to make changes to certain specific 
regulations and invites comments from the public on these issues. For 
example, SBA has received requests from Prior Approval Sureties to 
change the criteria in Sec.  115.30(d)(2) for using the Quick Bond 
Guarantee Application and Agreement (SBA Form 990A), including 
increasing the maximum contract amount of $400,000, the maximum 
contract period of 12 months, the $1,000 per day limit on liquidated 
damages, and eliminating the prohibition against contracts involving 
demolition.
    In addition, under Sec.  115.14(a)(3), a contractor loses 
eligibility for future SBA assistance if the Surety has established a 
claim reserve of at least $1,000 for an outstanding SBA-guarantee bond. 
SBA is considering whether the claim reserve amount is set at the 
correct amount to mitigate future risk and, if not, what the amount 
should be. SBA is also considering whether the regulations that set the 
minimum amount for collecting or refunding the Principal and Surety 
guarantee fees, including Sec. Sec.  115.32(d)(2) and (3) and 115.67(a) 
and (b), should be changed by increasing the amount from the current 
$40.

II. List of Questions for Commenters

    The list of questions below is meant to assist in the formulation 
of public comments and is not intended to restrict the issues that may 
be addressed. SBA requests that commenters identify the specific 
regulation at issue and explain, in as much detail as possible, why the 
regulation should be streamlined, expanded, or repealed, including 
estimated cost savings and benefits to small businesses and other 
stakeholders.
    1. Are there regulations in 13 CFR part 115 that have become 
unnecessary or ineffective and, if so, what are they?
    2. Are there regulations in 13 CFR part 115 that can be repealed 
without impairing SBA's Surety Bond Guarantee Program and, if so, what 
are they?
    3. Are there regulations in 13 CFR part 115 that have become 
outdated and, if so, how can they be modernized to better accomplish 
their regulatory objectives?
    4. Are there regulations in 13 CFR part 115 that are still 
necessary, but which have not operated as well as expected such that a 
modified approach is justified, and what is that approach?
    5. Are there regulations or regulatory processes in 13 CFR part 115 
that are too complicated or could be streamlined to achieve regulatory 
objectives more efficiently?
    6. Are there any technological developments that can be leveraged 
to modify, streamline, or repeal any existing regulatory requirements 
in 13 CFR part 115?
    7. Should SBA make changes to any of the criteria set forth in 
Sec.  115.30(d)(2) under which a Prior Approval Surety may use the 
Quick Bond Guarantee Application and Agreement (SBA Form 990A)? If yes, 
describe the change and provide the reason for your response.
    8. Under Sec.  115.14(a)(3), a contractor (and its affiliates) 
loses eligibility for further SBA bond guarantees if the Surety has 
established a claim reserve for an SBA-guaranteed bond of at least 
$1,000. Should SBA change the claim reserve amount? If so, describe the 
change and provide the reasons for your response.
    9. Should SBA increase the minimum amount for collecting or 
refunding Principal and Surety guarantee fees from $40? If yes, what 
should the amount be? Please provide reasons for your response.
    10. In addition to the types of bonds that are currently offered 
through the SBG Program, are there any other surety bond products that 
you would like SBA to offer through its SBG Program that would assist 
small businesses in need of government assistance? If so, describe the 
product and how it would benefit small businesses.
    Interested parties are invited to provide any other comments that 
they may have relating to the concerns described in this advance notice 
of proposed rulemaking. We ask that you provide a brief justification 
for any suggested changes.

    Authority: 15 U.S.C. 692, 694 and 695; Sec. 12079, Pub. L. 110-
246, 122 Stat. 1651; E.O. 13771; E.O. 13777.

    Dated: May 23, 2019.
Christopher M. Pilkerton,
Acting Administrator.
[FR Doc. 2019-11509 Filed 5-31-19; 8:45 am]
BILLING CODE 8026-03-P
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