HUBZone Program Provisions for Governor-Designated Covered Areas, 62447-62449 [2019-24610]
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Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations
§ 655.42
■
[Removed and Reserved]
5. Remove and reserve § 655.42.
§ 655.56
[Amended]
6. Amend § 655.56 by removing
paragraph (c)(2)(ii) and redesignating
paragraphs (c)(2)(iii), (iv), and (v) as
paragraphs (c)(2)(ii), (iii), and (iv),
respectively.
■ 7. Amend § 655.71 by revising
paragraph (c)(2) to read as follows:
■
§ 655.71
CO-ordered assisted recruitment.
*
*
*
*
*
(c) * * *
(2) Designating the sources where the
employer must recruit for U.S. workers
and directing the employer to place the
advertisement(s) in such sources;
*
*
*
*
*
Title 29—Labor
PART 503—ENFORCEMENT OF
OBLIGATIONS FOR TEMPORARY
NONIMMIGRANT NON–
AGRICULTURAL WORKERS
DESCRIBED IN THE IMMIGRATION
AND NATIONALITY ACT
8. The authority citation for part 503
continues to read as follows:
■
Authority: 8 U.S.C. 1101(a)(15)(H)(ii)(b); 8
U.S.C. 1184; 8 CFR 214.2(h); 28 U.S.C. 2461
note (Federal Civil Penalties Inflation
Adjustment Act of 1990); Pub. L. 114–74 at
§ 701.2.
§ 503.17
[Amended]
9. Amend § 503.17 by removing
paragraph (c)(2)(ii) and redesignating
paragraphs (c)(2)(iii), (iv), and (v) as
paragraphs (c)(2)(ii), (iii), and (iv),
respectively.
■
Kevin K. McAleenan,
Acting Secretary of Homeland Security.
Eugene Scalia,
Secretary of Labor.
[FR Doc. 2019–24832 Filed 11–13–19; 4:15 pm]
BILLING CODE P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
RIN 3245–AH06
HUBZone Program Provisions for
Governor-Designated Covered Areas
U.S. Small Business
Administration.
ACTION: Direct final rule; request for
comments.
AGENCY:
This direct final rule contains
amendments to the regulations
governing the HUBZone Program. The
SUMMARY:
VerDate Sep<11>2014
16:57 Nov 14, 2019
Jkt 250001
U.S. Small Business Administration
(SBA) is making changes to its
regulations to implement provisions of
the National Defense Authorization Act
for Fiscal Year 2018 which authorized
the inclusion of ‘‘Governor-designated
covered areas’’ under the HUBZone
program. This direct final rule would
merely replicate these statutory changes
into SBA’s regulations.
DATES: This rule is effective on January
1, 2020, without further action, unless
significant adverse comment is received
by December 16, 2019. 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–AH06, by any of
the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• For Mail, Paper, Disk, or CD–ROM
Submissions: Bruce Purdy, U.S. Small
Business Administration, Office of the
HUBZone Program, 409 Third Street
SW, 8th Floor, Washington, DC 20416.
• Hand Delivery/Courier: Bruce
Purdy, U.S. Small Business
Administration, Office of the HUBZone
Program, 409 Third Street SW, 8th
Floor, Washington, DC 20416.
SBA will post all comments on
www.regulations.gov. If you wish to
submit confidential business
information (CBI) as defined in the User
Notice at www.regulations.gov, please
submit the information to Bruce Purdy,
U.S. Small Business Administration,
Office of the HUBZone Program, 409
Third Street SW, 8th Floor, Washington,
DC 20416, or send an email to
hubzone@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:
Bruce Purdy, Deputy Director, Office of
the HUBZone Program, 409 Third Street
SW, Washington, DC 20416, 202–205–
7554, hubzone@sba.gov.
SUPPLEMENTARY INFORMATION: This
direct final rule implements a
conforming amendment to SBA’s
regulations from the National Defense
Authorization Act for Fiscal Year 2018,
Public Law 115–91 (2018 NDAA). The
2018 NDAA became effective on
December 12, 2017. Section 1701(e) of
the 2018 NDAA authorized the
inclusion of ‘‘Governor-designated
covered areas’’ under the HUBZone
program. Section 1701(j) of the 2018
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Fmt 4700
Sfmt 4700
62447
NDAA provides that section 1701(e)
shall be effective January 1, 2020.
SBA seeks to amend its HUBZone
rules to mirror the changes made to the
Small Business Act, 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. Therefore, SBA has
decided to proceed with a direct final
rule. If SBA receives a significant
adverse comment during the comment
period, SBA will withdraw the rule, and
proceed with a new proposed rule.
In order to implement the changes
made by section 1701(e) of the 2018
NDAA, SBA is amending § 126.103 of
its regulations by adding a new
definition for the term ‘‘Governordesignated covered area’’, revising the
definition of the term ‘‘HUBZone’’ to
include Governor-designated covered
areas, and adding a new § 126.104 to
implement the statutory process by
which a Governor can petition and the
SBA Administrator may designate a
specific covered area to be a qualified
HUBZone area. The statute provides the
guidelines under which a petition will
be considered. Specifically, the
Administrator will consider the
following: The potential for job creation
and investment in the covered area; the
demonstrated interest of small business
concerns in the covered area to be
designated as a Governor-designated
covered area; how State and local
government officials have incorporated
the covered area into an economic
development strategy; and if the covered
area was a HUBZone before becoming
the subject of the petition, the impact on
the covered area if the Administrator
did not approve the petition. SBA
anticipates that included within the
covered areas that a Governor may seek
to be designated as a qualified HUBZone
area are Opportunity Zones, authorized
by Section 13823 of the Tax Cuts and
Jobs Act of 2017, Public Law 115–97,
that do not otherwise qualify as
HUBZones.
Compliance With Executive Orders
12866, 13771, 13563, 12988, 13132,
13175, the Paperwork Reduction Act
(44 U.S.C. Ch. 35), the Regulatory
Flexibility Act (5 U.S.C. 601–612), and
the Administrative Procedure Act
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
E:\FR\FM\15NOR1.SGM
15NOR1
62448
Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations
not a major rule under Congressional
Review Act.
Executive Order 13771
This rule is not an Executive Order
13771 regulatory action because this
rule is not significant under Executive
Order 12866.
Executive Order 13563
Executive Order 13563 reaffirms the
principles of Executive Order 12866
while calling for improvements in the
nation’s regulatory system to promote
predictability, to reduce uncertainty,
and to use the best, most innovative,
and least burdensome tools for
achieving regulatory ends. The
executive order directs agencies to
consider regulatory approaches that
reduce burdens and maintain flexibility
and freedom of choice for the public
where these approaches are relevant,
feasible, and consistent with regulatory
objectives. Executive Order 13563 also
requires that regulations be based on the
open exchange of information and
perspectives among state and local
officials, affected stakeholders in the
private sector, and the public as a
whole. SBA has developed this rule in
a manner consistent with these
requirements. While developing this
rule, SBA responded to specific
inquiries from government officials and
the public regarding the implementation
of the statutory authority for Governordesignated covered areas and discussed
the implementation of the authority at
nationwide conferences, including the
HUBZone Council Conference. SBA
continues to communicate with the
public by responding to inquiries
regarding this new authority.
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.
Executive Order 13132
A rule has implications for federalism
under Executive Order 13132,
Federalism, if it has a substantial direct
effect 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. This
direct final rule would allow State
Governors to petition SBA to designate
as HUBZones certain areas that would
otherwise not qualify as HUBZones. A
Governor’s petition must delineate the
areas to be included and show: (1) The
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15:51 Nov 14, 2019
Jkt 250001
potential for job creation and
investment in the covered area; (2) the
demonstrated interest of small business
concerns in the covered area to be
designated as a Governor-designated
covered area; (3) how State and local
government officials have incorporated
the covered area into an economic
development strategy; and (4) if the
covered area was a HUBZone before
becoming the subject of the petition, the
impact on the covered area if the
Administrator did not approve the
petition. Governors may only submit
one petition for their State every year
and must annually provide data on
Governor-designated covered areas
previously approved by the SBA
Administrator.
We have analyzed this direct final
rule and have determined that it is
consistent with the fundamental
federalism principles and preemption
requirements described in Executive
Order 13132.
Executive Order 13175
This rule does not have tribal
implications under Executive Order
13175, Consultation and Coordination
with Indian Tribal Governments,
because it would not have a substantial
direct effect on one or more Indian
tribes, on the relationship between the
Federal Government and Indian tribes,
or on the distribution of power and
responsibilities between the Federal
Government and Indian tribes.
Paperwork Reduction Act, 44 U.S.C. Ch.
35
SBA has determined that this direct
final rule imposes reporting
requirements under the Paperwork
Reduction Act (PRA). Specifically, the
rule would require State Governors to
submit petitions to SBA in order for
SBA to determine whether to designate
certain areas as Governor-designated
covered areas. At a minimum, such
petitions would provide a list of covered
areas for which the Governor requests
designation and information on the
potential for job creation and
investment in the covered area, the
demonstrated interest of small business
concerns in the covered area to be
designated as a Governor-designated
covered area, how State and local
government officials have incorporated
the covered area into an economic
development strategy, and if the covered
area was a HUBZone before becoming
the subject of the petition, the impact on
the covered area if the Administrator
did-not approve the petition. As
permitted by 13 CFR 1320.13, SBA
sought emergency PRA review and
approval of this information collection,
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Frm 00018
Fmt 4700
Sfmt 4700
including waiver of the required 60-day
public comment notice, from the Office
of Management and Budget (OMB).
OMB approved SBA’s request and
assigned OMB Control Number 3245–
0403. Before this approval expires on
April 30, 2020, SBA will publish the 60day notice in the Federal Register and
resubmit this information collection to
OMB for standard review. The
disposition of any comments received
will be addressed with that
resubmission.
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 the RFA, SBA certifies that
this direct rule will not have a
significant economic impact on a
substantial number of small entities.
Administrative Procedure Act—
Justification for Direct Final Rule
In general, SBA publishes a rule for
public comment before issuing a final
rule, in accordance with the
Administrative Procedure Act, 5 U.S.C.
553. The Administrative Procedure Act
provides an exception to this standard
rulemaking process, however, where an
agency finds good cause to adopt a rule
without prior public participation. 5
U.S.C. 553(b)(3)(B). The good cause
requirement is satisfied when prior
public participation is impracticable,
unnecessary, or contrary to the public
interest.
SBA is publishing this rule as a direct
final rule because public participation is
unnecessary. SBA views this as a noncontroversial administrative action
because it merely implements a change
required by the Small Business Act, as
amended by section 1701(e) of the
National Defense Authorization Act for
Fiscal Year 2018, Public Law 115–91
(2018 NDAA). This rule will be effective
on the date shown in the DATES section
unless SBA receives any significant
adverse comments on or before the
deadline for comments set forth in the
DATES section. Significant adverse
comments are comments that provide
E:\FR\FM\15NOR1.SGM
15NOR1
Federal Register / Vol. 84, No. 221 / Friday, November 15, 2019 / Rules and Regulations
strong justifications why the rule should
not be adopted or for changing the rule.
SBA does not expect to receive any
significant adverse comments because
the rule simply mirrors the statutory
language contained in section 1701(e) of
the 2018 NDAA, with no extraneous
interpretation or other expanded text.
Implementation of this change will
benefit the public by expanding the
HUBZone program and will allow SBA
to meet the statutory deadline mandated
by section 1701(j) of the 2018 NDAA,
which provides that this change is
effective January 1, 2020. If SBA
receives any significant adverse
comments, SBA will publish a notice in
the Federal Register withdrawing this
rule before the effective date. If SBA
receives no significant adverse
comments, SBA will publish a
document in the Federal Register
confirming the effective date.
List of Subjects in 13 CFR Part 126
Administrative practice and
procedure, Government procurement,
Small businesses.
Accordingly, for the reasons stated in
the preamble, 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:
■
Authority: 15 U.S.C. 632(a), 632(j), 632(p),
644 and 657a.
2. Amend § 126.103 by adding a
definition alphabetically for the term
‘‘Governor-designated covered area’’
and revising the definition of the term
‘‘HUBZone’’ to read as follows:
■
§ 126.103 What definitions are important
in the HUBZone program?
*
*
*
*
*
Governor-designated covered area
means an area that the Administrator
has designated as a HUBZone by
approving a Governor-generated petition
as described in § 126.104.
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) Redesignated areas;
(5) Qualified base closure areas;
(6) Qualified disaster areas; or
(7) Governor-designated covered
areas.
*
*
*
*
*
■ 3. Add § 126.104 to read as follows:
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§ 126.104 How can a Governor petition for
the designation of a Governor-designated
covered area?
(a) For a specific covered area to
receive a designation as a Governordesignated covered area, the Governor
of the State in which the identified
covered area is wholly contained shall
include such area in a petition to the
Administrator requesting such a
designation. In reviewing a request for
designation included in such a petition,
the Administrator may consider—
(1) The potential for job creation and
investment in the covered area;
(2) The demonstrated interest of small
business concerns in the covered area to
be designated as a Governor-designated
covered area;
(3) How State and local government
officials have incorporated the covered
area into an economic development
strategy; and
(4) If the covered area was a HUBZone
before becoming the subject of the
petition, the impact on the covered area
if the Administrator did not approve the
petition.
(b) Each calendar year, a Governor
may submit not more than 1 petition
described in this section. Such petition
shall include all covered areas in a State
for which the Governor seeks
designation as a Governor-designated
covered area, except that the total
number of covered areas included in
such petition may not exceed 10 percent
of the total number of covered areas in
the State.
(c) If the Administrator grants a
petition described in this section, the
Governor of the Governor-designated
covered area shall, not less frequently
than annually, submit data to the
Administrator certifying that each
Governor-designated covered area
continues to meet the requirements of
paragraph (d)(1) of this section.
(d) In this section:
(1) The term ‘‘covered area’’ means an
area in a State—
(i) That is located outside of an
urbanized area, as determined by the
Bureau of the Census;
(ii) With a population of not more
than 50,000; and
(iii) For which the average
unemployment rate is not less than 120
percent of the average unemployment
rate of the United States or of the State
in which the covered area is located,
whichever is less, based on the most
recent data available from the American
Community Survey conducted by the
Bureau of the Census.
(2) The term ‘‘Governor’’ means the
chief executive of a State.
(3) The term ‘‘State’’ means each of
the States of the United States, the
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62449
District of Columbia, the
Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, the
Commonwealth of the Northern Mariana
Islands, or American Samoa.
Christopher Pilkerton,
Acting Administrator.
[FR Doc. 2019–24610 Filed 11–14–19; 8:45 am]
BILLING CODE P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Paying Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
This final rule amends the
Pension Benefit Guaranty Corporation’s
regulation on Benefits Payable in
Terminated Single-Employer Plans to
prescribe certain interest assumptions
under the regulation for plans with
valuation dates in December 2019.
These interest assumptions are used for
paying certain benefits under
terminating single-employer plans
covered by the pension insurance
system administered by PBGC.
DATES: Effective December 1, 2019.
FOR FURTHER INFORMATION CONTACT:
Gregory Katz (katz.gregory@pbgc.gov),
Attorney, Regulatory Affairs Division,
Pension Benefit Guaranty Corporation,
1200 K Street NW, Washington, DC
20005, 202–326–4400 ext. 3829. (TTY
users may call the Federal relay service
toll-free at 1–800–877–8339 and ask to
be connected to 202–326–4400, ext.
3829.)
SUPPLEMENTARY INFORMATION: PBGC’s
regulation on Benefits Payable in
Terminated Single-Employer Plans (29
CFR part 4022) prescribes actuarial
assumptions—including interest
assumptions—for paying plan benefits
under terminated single-employer plans
covered by title IV of the Employee
Retirement Income Security Act of 1974
(ERISA). The interest assumptions in
the regulation are also published on
PBGC’s website (https://www.pbgc.gov).
PBGC uses the interest assumptions in
appendix B to part 4022 (‘‘Lump Sum
Interest Rates for PBGC Payments’’) to
determine whether a benefit is payable
as a lump sum and to determine the
amount to pay. Because some privatesector pension plans use these interest
rates to determine lump sum amounts
payable to plan participants (if the
SUMMARY:
E:\FR\FM\15NOR1.SGM
15NOR1
]]>Agencies
[Federal Register Volume 84, Number 221 (Friday, November 15, 2019)]
[Rules and Regulations]
[Pages 62447-62449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24610]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
RIN 3245-AH06
HUBZone Program Provisions for Governor-Designated Covered Areas
AGENCY: U.S. Small Business Administration.
ACTION: Direct final rule; request for comments.
-----------------------------------------------------------------------
SUMMARY: This direct final rule contains amendments to the regulations
governing the HUBZone Program. The U.S. Small Business Administration
(SBA) is making changes to its regulations to implement provisions of
the National Defense Authorization Act for Fiscal Year 2018 which
authorized the inclusion of ``Governor-designated covered areas'' under
the HUBZone program. This direct final rule would merely replicate
these statutory changes into SBA's regulations.
DATES: This rule is effective on January 1, 2020, without further
action, unless significant adverse comment is received by December 16,
2019. 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-AH06, by any
of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
For Mail, Paper, Disk, or CD-ROM Submissions: Bruce Purdy,
U.S. Small Business Administration, Office of the HUBZone Program, 409
Third Street SW, 8th Floor, Washington, DC 20416.
Hand Delivery/Courier: Bruce Purdy, U.S. Small Business
Administration, Office of the HUBZone Program, 409 Third Street SW, 8th
Floor, Washington, DC 20416.
SBA will post all comments on www.regulations.gov. If you wish to
submit confidential business information (CBI) as defined in the User
Notice at www.regulations.gov, please submit the information to Bruce
Purdy, U.S. Small Business Administration, Office of the HUBZone
Program, 409 Third 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: Bruce Purdy, Deputy Director, Office
of the HUBZone Program, 409 Third Street SW, Washington, DC 20416, 202-
205-7554, [email protected].
SUPPLEMENTARY INFORMATION: This direct final rule implements a
conforming amendment to SBA's regulations from the National Defense
Authorization Act for Fiscal Year 2018, Public Law 115-91 (2018 NDAA).
The 2018 NDAA became effective on December 12, 2017. Section 1701(e) of
the 2018 NDAA authorized the inclusion of ``Governor-designated covered
areas'' under the HUBZone program. Section 1701(j) of the 2018 NDAA
provides that section 1701(e) shall be effective January 1, 2020.
SBA seeks to amend its HUBZone rules to mirror the changes made to
the Small Business Act, 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. Therefore, SBA
has decided to proceed with a direct final rule. If SBA receives a
significant adverse comment during the comment period, SBA will
withdraw the rule, and proceed with a new proposed rule.
In order to implement the changes made by section 1701(e) of the
2018 NDAA, SBA is amending Sec. 126.103 of its regulations by adding a
new definition for the term ``Governor-designated covered area'',
revising the definition of the term ``HUBZone'' to include Governor-
designated covered areas, and adding a new Sec. 126.104 to implement
the statutory process by which a Governor can petition and the SBA
Administrator may designate a specific covered area to be a qualified
HUBZone area. The statute provides the guidelines under which a
petition will be considered. Specifically, the Administrator will
consider the following: The potential for job creation and investment
in the covered area; the demonstrated interest of small business
concerns in the covered area to be designated as a Governor-designated
covered area; how State and local government officials have
incorporated the covered area into an economic development strategy;
and if the covered area was a HUBZone before becoming the subject of
the petition, the impact on the covered area if the Administrator did
not approve the petition. SBA anticipates that included within the
covered areas that a Governor may seek to be designated as a qualified
HUBZone area are Opportunity Zones, authorized by Section 13823 of the
Tax Cuts and Jobs Act of 2017, Public Law 115-97, that do not otherwise
qualify as HUBZones.
Compliance With Executive Orders 12866, 13771, 13563, 12988, 13132,
13175, the Paperwork Reduction Act (44 U.S.C. Ch. 35), the Regulatory
Flexibility Act (5 U.S.C. 601-612), and the Administrative Procedure
Act
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
[[Page 62448]]
not a major rule under Congressional Review Act.
Executive Order 13771
This rule is not an Executive Order 13771 regulatory action because
this rule is not significant under Executive Order 12866.
Executive Order 13563
Executive Order 13563 reaffirms the principles of Executive Order
12866 while calling for improvements in the nation's regulatory system
to promote predictability, to reduce uncertainty, and to use the best,
most innovative, and least burdensome tools for achieving regulatory
ends. The executive order directs agencies to consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public where these approaches are relevant, feasible,
and consistent with regulatory objectives. Executive Order 13563 also
requires that regulations be based on the open exchange of information
and perspectives among state and local officials, affected stakeholders
in the private sector, and the public as a whole. SBA has developed
this rule in a manner consistent with these requirements. While
developing this rule, SBA responded to specific inquiries from
government officials and the public regarding the implementation of the
statutory authority for Governor-designated covered areas and discussed
the implementation of the authority at nationwide conferences,
including the HUBZone Council Conference. SBA continues to communicate
with the public by responding to inquiries regarding this new
authority.
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.
Executive Order 13132
A rule has implications for federalism under Executive Order 13132,
Federalism, if it has a substantial direct effect 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. This direct final rule would allow State Governors to
petition SBA to designate as HUBZones certain areas that would
otherwise not qualify as HUBZones. A Governor's petition must delineate
the areas to be included and show: (1) The potential for job creation
and investment in the covered area; (2) the demonstrated interest of
small business concerns in the covered area to be designated as a
Governor-designated covered area; (3) how State and local government
officials have incorporated the covered area into an economic
development strategy; and (4) if the covered area was a HUBZone before
becoming the subject of the petition, the impact on the covered area if
the Administrator did not approve the petition. Governors may only
submit one petition for their State every year and must annually
provide data on Governor-designated covered areas previously approved
by the SBA Administrator.
We have analyzed this direct final rule and have determined that it
is consistent with the fundamental federalism principles and preemption
requirements described in Executive Order 13132.
Executive Order 13175
This rule does not have tribal implications under Executive Order
13175, Consultation and Coordination with Indian Tribal Governments,
because it would not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal Government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal Government and Indian tribes.
Paperwork Reduction Act, 44 U.S.C. Ch. 35
SBA has determined that this direct final rule imposes reporting
requirements under the Paperwork Reduction Act (PRA). Specifically, the
rule would require State Governors to submit petitions to SBA in order
for SBA to determine whether to designate certain areas as Governor-
designated covered areas. At a minimum, such petitions would provide a
list of covered areas for which the Governor requests designation and
information on the potential for job creation and investment in the
covered area, the demonstrated interest of small business concerns in
the covered area to be designated as a Governor-designated covered
area, how State and local government officials have incorporated the
covered area into an economic development strategy, and if the covered
area was a HUBZone before becoming the subject of the petition, the
impact on the covered area if the Administrator did-not approve the
petition. As permitted by 13 CFR 1320.13, SBA sought emergency PRA
review and approval of this information collection, including waiver of
the required 60-day public comment notice, from the Office of
Management and Budget (OMB). OMB approved SBA's request and assigned
OMB Control Number 3245-0403. Before this approval expires on April 30,
2020, SBA will publish the 60-day notice in the Federal Register and
resubmit this information collection to OMB for standard review. The
disposition of any comments received will be addressed with that
resubmission.
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 the RFA, SBA certifies that this direct rule will not have a
significant economic impact on a substantial number of small entities.
Administrative Procedure Act--Justification for Direct Final Rule
In general, SBA publishes a rule for public comment before issuing
a final rule, in accordance with the Administrative Procedure Act, 5
U.S.C. 553. The Administrative Procedure Act provides an exception to
this standard rulemaking process, however, where an agency finds good
cause to adopt a rule without prior public participation. 5 U.S.C.
553(b)(3)(B). The good cause requirement is satisfied when prior public
participation is impracticable, unnecessary, or contrary to the public
interest.
SBA is publishing this rule as a direct final rule because public
participation is unnecessary. SBA views this as a non-controversial
administrative action because it merely implements a change required by
the Small Business Act, as amended by section 1701(e) of the National
Defense Authorization Act for Fiscal Year 2018, Public Law 115-91 (2018
NDAA). This rule will be effective on the date shown in the DATES
section unless SBA receives any significant adverse comments on or
before the deadline for comments set forth in the DATES section.
Significant adverse comments are comments that provide
[[Page 62449]]
strong justifications why the rule should not be adopted or for
changing the rule. SBA does not expect to receive any significant
adverse comments because the rule simply mirrors the statutory language
contained in section 1701(e) of the 2018 NDAA, with no extraneous
interpretation or other expanded text. Implementation of this change
will benefit the public by expanding the HUBZone program and will allow
SBA to meet the statutory deadline mandated by section 1701(j) of the
2018 NDAA, which provides that this change is effective January 1,
2020. If SBA receives any significant adverse comments, SBA will
publish a notice in the Federal Register withdrawing this rule before
the effective date. If SBA receives no significant adverse comments,
SBA will publish a document in the Federal Register confirming the
effective date.
List of Subjects in 13 CFR Part 126
Administrative practice and procedure, Government procurement,
Small businesses.
Accordingly, for the reasons stated in the preamble, 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 adding a definition alphabetically for the
term ``Governor-designated covered area'' and revising the definition
of the term ``HUBZone'' to read as follows:
Sec. [thinsp]126.103 What definitions are important in the HUBZone
program?
* * * * *
Governor-designated covered area means an area that the
Administrator has designated as a HUBZone by approving a Governor-
generated petition as described in Sec. 126.104.
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) Redesignated areas;
(5) Qualified base closure areas;
(6) Qualified disaster areas; or
(7) Governor-designated covered areas.
* * * * *
0
3. Add Sec. 126.104 to read as follows:
Sec. 126.104 How can a Governor petition for the designation of a
Governor-designated covered area?
(a) For a specific covered area to receive a designation as a
Governor-designated covered area, the Governor of the State in which
the identified covered area is wholly contained shall include such area
in a petition to the Administrator requesting such a designation. In
reviewing a request for designation included in such a petition, the
Administrator may consider--
(1) The potential for job creation and investment in the covered
area;
(2) The demonstrated interest of small business concerns in the
covered area to be designated as a Governor-designated covered area;
(3) How State and local government officials have incorporated the
covered area into an economic development strategy; and
(4) If the covered area was a HUBZone before becoming the subject
of the petition, the impact on the covered area if the Administrator
did not approve the petition.
(b) Each calendar year, a Governor may submit not more than 1
petition described in this section. Such petition shall include all
covered areas in a State for which the Governor seeks designation as a
Governor-designated covered area, except that the total number of
covered areas included in such petition may not exceed 10 percent of
the total number of covered areas in the State.
(c) If the Administrator grants a petition described in this
section, the Governor of the Governor-designated covered area shall,
not less frequently than annually, submit data to the Administrator
certifying that each Governor-designated covered area continues to meet
the requirements of paragraph (d)(1) of this section.
(d) In this section:
(1) The term ``covered area'' means an area in a State--
(i) That is located outside of an urbanized area, as determined by
the Bureau of the Census;
(ii) With a population of not more than 50,000; and
(iii) For which the average unemployment rate is not less than 120
percent of the average unemployment rate of the United States or of the
State in which the covered area is located, whichever is less, based on
the most recent data available from the American Community Survey
conducted by the Bureau of the Census.
(2) The term ``Governor'' means the chief executive of a State.
(3) The term ``State'' means each of the States of the United
States, the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, the Commonwealth of the Northern
Mariana Islands, or American Samoa.
Christopher Pilkerton,
Acting Administrator.
[FR Doc. 2019-24610 Filed 11-14-19; 8:45 am]
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