Surety Bond Guarantee Program: Removing Obsolete Forms, 24471-24474 [2023-08458]
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Rules and Regulations
Federal Register
Vol. 88, No. 77
Friday, April 21, 2023
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
DEPARTMENT OF ENERGY
10 CFR Parts 429 and 431
[EERE–2020–BT–TP–0032]
RIN 1904–AE53
Energy Conservation Program: Test
Procedure for Commercial and
Industrial Pumps; Correction
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Final rule; correction.
AGENCY:
The U.S. Department of
Energy (‘‘DOE’’) is correcting a final rule
that appeared in the Federal Register on
March 24, 2023. That document
amended test procedures for
commercial and industrial pumps. This
document corrects a numbering and
amendatory error in that final rule.
DATES: Effective April 24, 2023.
FOR FURTHER INFORMATION CONTACT:
Mr. Jeremy Dommu, U.S. Department
of Energy, Office of Energy Efficiency
and Renewable Energy, Building
Technologies Office, EE–2J, 1000
Independence Avenue SW, Washington,
DC 20585–0121. Telephone: (202) 586–
9870. Email:
ApplianceStandardsQuestions@
ee.doe.gov.
Mr. Nolan Brickwood, U.S.
Department of Energy, Office of the
General Counsel, GC–33, 1000
Independence Avenue SW, Washington,
DC 20585–0121. Telephone: (202) 586–
9870. Email: Nolan.Brickwood@
hq.doe.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
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I. Background
DOE published a final rule in the
Federal Register on March 24, 2023
(March 2023 final rule), amending the
test procedure for commercial and
industrial pumps. 88 FR 17934. This
correction addresses numbering errors
in that final rule.
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The amendatory instructions in the
March 2023 final rule amended
§ 431.463 by revising the materials
incorporated by reference. The final rule
erroneously used duplicative numbering
in this section by adding two paragraphs
numbered as (g)(3). Further, the
amendatory instructions for appendix A
to subpart Y of part 431 omitted adding
new paragraph E.1.2.1.2.3 to Section III
and the amendatory instructions for
§ 429.59 omitted adding paragraph
(a)(2)(iv).
II. Need for Correction
As published, the regulatory text in
the March 2023 final rule may result in
confusion due to incorrect section
references and missing amendatory
instructions. Because this final rule
would simply correct errors in the text
without making substantive changes in
the March 2023 final rule, the changes
addressed in this document are
technical in nature.
III. Procedural Issues and Regulatory
Review
DOE has concluded that the
determinations made pursuant to the
various procedural requirements
applicable to the March 2023 final rule
remain unchanged for this final rule
technical correction. These
determinations are set forth in the
March 2023 final rule. 88 FR 17968–
17972.
Pursuant to the Administrative
Procedure Act, 5 U.S.C. 553(b), DOE
determines that notice and prior
opportunity for comment on this rule
are unnecessary and contrary to the
public interest. Neither the errors nor
the corrections in this document affect
the substance of the March 2023 final
rule or any of the conclusions reached
in support of the final rule. For these
reasons, DOE also determines that there
is good cause to waive the 30-day delay
in effective date in 5 U.S.C. 553(d).
Signing Authority
This document of the Department of
Energy was signed on April 18, 2023, by
Francisco Alejandro Moreno, Acting
Assistant Secretary for Energy Efficiency
and Renewable Energy, pursuant to
delegated authority from the Secretary
of Energy. That document with the
original signature and date is
maintained by DOE. For administrative
purposes only, and in compliance with
requirements of the Office of the Federal
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Register, the undersigned DOE Federal
Register Liaison Officer has been
authorized to sign and submit the
document in electronic format for
publication, as an official document of
the Department of Energy. This
administrative process in no way alters
the legal effect of this document upon
publication in the Federal Register.
Correction
In FR Doc. 2023–05635, appearing on
page 17934 in the Federal Register of
Wednesday, March 24, 2023, the
following corrections are made:
§ 429.59
[Corrected]
1. On page 17973, in the first column,
revise amendatory instruction 2.c to
read ‘‘Adding new paragraphs (a)(2)(iv)
and (a)(3).;’’
■
§ 431.463
[Corrected]
2. On page 17978, in the first column,
redesignate the second instance of
paragraph (g)(3) as (g)(4).
■
§ 431.464
[Corrected]
3. On page 17978, in the third column,
revise amendatory instruction 8.d to
read ‘‘In section III, revising paragraphs
A through D, E.1.2.1.2, E.1.2.1.2.1.,
E.1.2.1.2.2, and E.1.2.1.2.3.;’’
■
Signed in Washington, DC, on April 18,
2023.
Treena V. Garrett,
Federal Register Liaison Officer, U.S.
Department of Energy.
[FR Doc. 2023–08483 Filed 4–20–23; 8:45 am]
BILLING CODE 6450–01–P
SMALL BUSINESS ADMINISTRATION
13 CFR Part 115
RIN 3245–AH96
Surety Bond Guarantee Program:
Removing Obsolete Forms
U.S. Small Business
Administration.
ACTION: Direct final rule.
AGENCY:
The Small Business
Administration (SBA) is issuing this
direct final rule to remove references to
SBA Form 990A in the regulations of
the Surety Bond Guarantee (SBG)
Program. SBA Form 990A is obsolete
and has been discontinued.
SUMMARY:
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Federal Register / Vol. 88, No. 77 / Friday, April 21, 2023 / Rules and Regulations
This rule is effective June 20,
2023, without further action, unless
significant adverse comment is received
by May 22, 2023. 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–AH96, using any
of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Search for the rule
by RIN number 3245–AH08 and follow
the instructions for submitting
comments.
• Mail: Jermaine Perry, Management
Analyst, Office of Surety Guarantees,
U.S. Small Business Administration,
409 3rd Street SW, 8th Floor,
Washington, DC 20416.
• SBA will post all comments on
https://www.regulations.gov. If you wish
to submit confidential business
information (CBI) as defined in the User
Notice at https://www.regulations.gov,
please submit the information to
Jermaine Perry, Management Analyst,
Office of Surety Guarantees, U.S. Small
Business Administration, 409 3rd Street
SW, 8th Floor, Washington, DC 20416.
Highlight the information that you
consider to be CBI and explain why you
believe this information should be held
confidential. SBA will review the
information and make the final
determination as to whether to publish
the information.
FOR FURTHER INFORMATION CONTACT:
Jermaine Perry, Director of Surety
Guarantees at (202) 401–8275 or
Jermaine.perry@sba.gov.
SUPPLEMENTARY INFORMATION:
DATES:
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A. General Information
The U.S. Small Business
Administration (SBA) amending its
Surety Bond Guaranty (SGB) rules to
remove references to Quick Bond
Guarantee Application and Agreement
(SBA Form 990A). Form 990A was
integrated with the current version of
Form 990 and therefore discontinued.
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 an
authorized surety company (‘‘Surety’’)
an incentive to provide bonding for
small businesses; thereby assisting small
businesses in obtaining access to more
contracting opportunities. SBA’s
guarantee is an agreement between SBA
and a Surety that SBA will assume a
certain percentage of the Surety’s loss
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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/suretybonds.
SBA issued a Final Rule on
Streamlining the Surety Bond Guarantee
Program to address regulations that
were obsolete, unnecessary, ineffective,
or burdensome. That final rule was
published in the Federal Register on
August 8, 2022 (87 FR 48080). SBA also
received approval from Office of
Management and Budget (OMB) to
revise the information collections
language in the SBG Program’s various
forms, which were revised in
accordance with that Final Rule, and are
set to expire November 25, 2022.
B. Section-by-Section Analysis
Section 115.10. The definition of
‘‘Prior Approval Agreement’’ is being
revised because Form 990A is being
discontinued. The information collected
on Form 990A has been integrated into
current Form 990. SBA is removing the
phrase ‘‘or Quick Bond Guarantee
Application and Agreement (SBA Form
990A)’’ from the definition of ‘‘Prior
Approval Agreement.’’
Section 115.30. SBA is removing
references to the Quick Bond Guarantee
Application and Agreement (SBA Form
990A), which is now discontinued. SBA
is amending the remainder of paragraph
(d) to remove the references to a choice
of form.
Section 115.32. SBA is making a
technical amendment to paragraph (b) to
remove cross references to § 115.30(d)(1)
and (2) because they are redundant.
SBA is amending paragraph (d)(1) to
state that SBA Form 990 must be
submitted to SBA when a surety notifies
SBA of any increase or decrease in the
contract or bond amount, even if the
original application was on a Form
990A, Quick Bond Guaranty
Application and Agreement form.
C. Compliance With Executive Orders
12866, 12988, 13132, and 13563, the
Congressional Review Act (5 U.S.C.
801–808), the Paperwork Reduction Act
(44 U.S.C., Ch. 35), and the Regulatory
Flexibility Act (5 U.S.C. 601–612)
Executive Order 12866
The Office of Management and Budget
has determined that this rule is not a
‘‘significant regulatory action’’ under
Executive Order 12866.
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Executive Order 12988
This direct final rule 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. This action does not have
preemptive effect or retroactive effect.
Executive Order 13132
This rule does not have federalism
implications as defined in Executive
Order 13132. It will not have substantial
direct effects on the States, on the
relationship between the National
Government and the States, or on the
distribution of power and
responsibilities among the various
levels of government, as specified in the
Executive Order. As such it does not
warrant the preparation of a Federalism
assessment.
Executive Order 13563
Executive Order 13563, Improving
Regulation and Regulatory Review
(January 18, 2011), requires agencies to
adopt regulations through a process that
involves public participation, and to the
extent feasible, base regulations on the
open exchange of information and
perspectives from affected stakeholders
and the public as a whole. SBA has
developed this rule in a manner
consistent with these requirements.
Previously, SBA engaged the public in
rulemaking to revise, streamline, and
modernize the Surety Bond Guaranty
program. That final rule published in
the Federal Register on August 8, 2022
(87 FR 48080). While developing that
rule, SBA responded to specific
inquiries from government officials and
the public regarding changes in
response to the notice of proposed
rulemaking published in the Federal
Register on September 23, 2021 (86 FR
52844).
This direct final rule revises some
information collection language in SBG
Program forms that conformed with the
final rule published on August 8, 2022;
that is set to expire November 30, 2025.
Congressional Review Act, 5 U.S.C. 801–
808
The Office of Management and Budget
has determined that this is not a major
rule under 5 U.S.C. 804(2).
Paperwork Reduction Act, 44 U.S.C.,
Ch. 35
SBA has determined that this
proposed rule would not impose new
reporting or recordkeeping requirements
under the Paperwork Reduction Act.
The rule aligns the regulations with the
discontinuation of SBA Form 990A,
Quick Bond Application and
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Agreement, currently approved under
OMB Control Number 3245–0378.
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Regulatory Flexibility Act, 5 U.S.C. 601–
612
When an agency issues a proposed
rule, the Regulatory Flexibility Act
(RFA) requires the agency to ‘‘prepare
and make available for public comment
an initial regulatory flexibility analysis’’
which will ‘‘describe the impact of the
proposed rule on small entities.’’ (5
U.S.C. 603(a)). However, section 605 of
the RFA allows an agency to certify a
rule, in lieu of preparing an analysis, if
the proposed rulemaking is not
expected to have a significant economic
impact on a substantial number of small
entities.
This direct final rule only removes
references to SBA Form 990A in the
regulations of the Surety Bond
Guarantee (SBG) Program, as SBA Form
990A is obsolete and has been
discontinued. Accordingly, the
Administrator of the SBA hereby
certifies that this proposed rule would
not have a significant economic impact
on a substantial number of small
entities.
Justification for Direct Final Rule—
Administrative Procedures Act
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 removes references to
SBA Form 990A in the regulations of
the Surety Bond Guarantee (SBG)
Program; as SBA Form 990A is obsolete
and has been discontinued. This rule
will be effective on the date shown in
the DATES section unless SBA receives
significant adverse comment on or
before the deadline for comments.
Significant adverse comments are
comments that provide 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
removes references to a discontinued
form, with no extraneous interpretation
or other expanded text.
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If SBA receives significant adverse
comment, SBA will publish a notice in
the Federal Register withdrawing this
rule before the effective date. If SBA
receives no significant adverse
comments, the rule will be effective 60
days after publication without further
notice.
List of Subjects in 13 CFR Part 115
Claims, Reporting and recordkeeping
requirements, small businesses, Surety
bonds.
For the reasons stated in the
preamble, SBA amends 13 CFR part 115
as follows:
PART 115—SURETY BOND
GUARANTEE
Subpart A—Provisions for All Surety
Bond Guarantees
1. The authority citation for part 115
continues to read as follows:
■
Authority: 5 U.S.C. app 3; 15 U.S.C. 687b,
687c, 694a, 694b note; and Pub. L. 110–246,
Sec. 12079, 122 Stat. 1651.
2. Amend § 115.10 by revising the
definition of ‘‘Prior Approval
Agreement’’ to read as follows:
■
§ 115.10
Definitions.
*
*
*
*
*
Prior Approval Agreement means the
Surety Bond Guarantee Agreement (SBA
Form 990) entered into between a Prior
Approval Surety and SBA under which
SBA agrees to guarantee a specific bond.
*
*
*
*
*
■ 3. Amend § 115.30 by revising
paragraph (d) to read as follows.
§ 115.30 Submission of Surety’s guarantee
application.
*
*
*
*
*
(d) Prior Approval Agreement. To
apply for a bond guarantee, a Prior
Approval Surety must submit a Surety
Bond Guarantee Agreement (SBA Form
990) and select one of the following
application types:
(1) Regular. A Prior Approval Surety
may complete and submit a Surety Bond
Guarantee Agreement (SBA Form 990)
indicating a Regular application type to
SBA for each Bid Bond or Final Bond.
This Form must be approved by SBA
prior to the Surety’s Execution of the
bond. The guarantee fees owed in
connection with Final Bonds must be
paid in accordance with § 115.32.
(2) Quick Bond Agreement—(i)
General procedures. Except as provided
in paragraph (d)(2)(ii) of this section, a
Prior Approval Surety may complete
and submit a SBA Form 990 indicating
a Quick Bond Agreement application
type for each Bid Bond or Final Bond.
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24473
This form must be approved by SBA
prior to the Surety’s Execution of the
bond. The Quick Bond application type
is used only for contract amounts that
do not exceed $500,000 at the time of
application. The guarantee fees owed in
connection with Final Bonds must be
paid in accordance with § 115.32.
(ii) Exclusions. The Quick Bond
application type may not be used under
the following circumstances:
(A) The Principal has previously
defaulted on any contract or has had
any claims or complaints filed against it
with any court or administrative agency;
(B) Work on the Contract commenced
before a bond was Executed;
(C) The time for completion of the
Contract exceeds 12 months;
(D) The Contract includes a provision
for liquidated damages that exceed
$2,500 per day;
(E) The Contract involves asbestos
abatement, hazardous waste removal, or
timber sales; or
(F) The bond would be issued under
a surety bonding line approved under
§ 115.33.
■ 4. Amend § 115.32 by revising
paragraphs (b) and (d)(1) to read as
follows:
§ 115.32
Fees and Premiums.
*
*
*
*
*
(b) SBA charge to Principal. SBA does
not charge Principals application or Bid
Bond guarantee fees. If SBA guarantees
a Final Bond, the Principal must pay a
guarantee fee equal to a certain
percentage of the Contract amount. The
percentage is determined by SBA and is
published in Notices in the Federal
Register from time to time. The
Principal’s fee is rounded to the nearest
dollar and is to be remitted to SBA with
the form submitted under § 115.30(d).
See paragraph (d) of this section for
additional requirements when the
Contract amount changes.
*
*
*
*
*
(d) * * *
(1) Notification and approval. The
Prior Approval Surety must notify SBA
of any increases or decreases in the
Contract or bond amount that aggregate
25% or $500,000 of the original contract
or bond amount, whichever is less, as
soon as the Surety acquires knowledge
of the change. Whenever the original
bond amount increases as a result of a
single change order of at least 25% or
$500,000 of the original contract or
bond amount, whichever is less, the
prior written approval of such increase
by SBA is required on a supplemental
Prior Approval Agreement and is
conditioned upon payment by the
Surety of the increase in the Principal’s
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guarantee fee as set forth in paragraph
(d)(2) of this section. In notifying SBA
of any increase or decrease in the
Contract or bond amount, the Prior
Approval Surety must use SBA Form
990 and select the application type that
it used in applying for the original bond
guarantee.
*
*
*
*
*
Dated: April 17, 2023.
Dianna Seaborn,
Director, Office of Financial Assistance.
Isabella Casillas Guzman,
Administrator.
Federal Aviation Administration
[FR Doc. 2023–08458 Filed 4–20–23; 8:45 am]
14 CFR Part 71
[FR Doc. 2023–08396 Filed 4–20–23; 8:45 am]
BILLING CODE 8026–09–P
DEPARTMENT OF TRANSPORTATION
BILLING CODE 8026–09–P
[Docket No. FAA–2022–1680; Airspace
Docket No. 22–ASO–30]
SMALL BUSINESS ADMINISTRATION
RIN 2120–AA66
13 CFR Parts 120 and 121
Revocation of Class E Airspace;
Liberty, NC
RIN 3245–AH87
Affiliation and Lending Criteria for the
SBA Business Loan Programs;
Correction
U.S. Small Business
Administration.
ACTION: Final rule; correction.
AGENCY:
The U.S. Small Business
Administration (SBA or Agency) is
correcting a final rule that appeared in
the Federal Register on April 10, 2023.
The document issued a final rule that
amended various regulations governing
SBA’s 7(a) Loan Program and 504 Loan
Program, including regulations on use of
proceeds for partial changes of
ownership, lending criteria, loan
conditions, reconsiderations, and
affiliation standards, to expand access to
capital to small businesses and drive
economic recovery.
DATES: Effective May 11, 2023.
FOR FURTHER INFORMATION CONTACT:
Dianna Seaborn, Director, Office of
Financial Assistance, Office of Capital
Access, Small Business Administration,
at (202) 205–3645 or Dianna.Seaborn@
sba.gov. The phone number above may
also be reached by individuals who are
deaf or hard of hearing, or who have
speech disabilities, through the Federal
Communications Commission’s TTYBased Telecommunications Relay
Service teletype service at 711.
SUPPLEMENTARY INFORMATION: In FR Doc.
2023–07173 appearing on page 21074 in
the Federal Register on Monday, April
10, 2023, the following correction is
made:
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[Corrected]
1. On page 21085, in the right column,
instruction 5 is corrected to read ‘‘5.
Amend § 120.193 by revising the last
sentence and by adding two sentences at
the end of the section to read as
follows:’’
■
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This action revokes Class E
airspace extending upward from 700
feet above the surface for Causey
Airport, Liberty, NC, as all instrument
approaches to the airport have been
canceled.
Effective 0901 UTC, August 10,
2023. The Director of the Federal
Register approves this incorporation by
reference action under 1 CFR part 51,
subject to the annual revision of FAA
Order JO 7400.11 and publication of
conforming amendments.
ADDRESSES: A copy of the NPRM, all
comments received, this final rule, and
all background material may be viewed
online at www.regulations.gov using the
FAA Docket number. Electronic
retrieval helps and guidelines are
available on the website. It is available
24 hours a day, 365 days a year. An
electronic copy of this document may
also be downloaded from the Office of
the Federal Register’s website at
www.federalregister.gov.
FAA Order JO 7400.11G, Airspace
Designations and Reporting Points, and
subsequent amendments can be viewed
online at www.faa.gov/air_traffic/
publications/. You may also contact the
Rules and Regulations Group, Office of
Policy, Federal Aviation
Administration, 800 Independence
Avenue SW, Washington, DC 20591;
telephone: (202) 267–8783.
FOR FURTHER INFORMATION CONTACT: John
Fornito, Operations Support Group,
Eastern Service Center, Federal Aviation
Administration, 1701 Columbia Avenue,
College Park, GA 30337; Telephone:
(404) 305–6364.
SUPPLEMENTARY INFORMATION:
DATES:
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The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the United States Code.
Subtitle I, Section 106 describes the
authority of the FAA Administrator.
Subtitle VII, Aviation Programs,
describes in more detail the scope of the
agency’s authority. This rulemaking is
promulgated under the authority
described in Subtitle VII, Part A,
Subpart I, Section 40103. Under that
section, the FAA is charged with
prescribing regulations to assign the use
of airspace necessary to ensure the
safety of aircraft and the efficient use of
airspace. This regulation is within the
scope of that authority, as it removes
airspace in Liberty, NC, as IFR
operations no longer exist for Causey
Airport.
History
SUMMARY:
SUMMARY:
§ 120.193
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
Authority for This Rulemaking
The FAA published a notice of
proposed rulemaking for Docket No.
FAA–2022–1680 in the Federal Register
(88 FR 7654, February 6, 2023), to
remove Class E airspace extending
upward from 700 feet above the surface
for Causey Airport, Liberty, NC, as all
instrument approaches to the airport
have been canceled.
Interested parties were invited to
participate in this rulemaking effort by
submitting written comments on the
proposal to the FAA. No comments
were received.
Class E airspace designations are
published in Paragraph 6005 of FAA
Order JO 7400.11G, dated August 19,
2022, and effective September 15, 2022,
which is incorporated by reference in 14
CFR 71.1. The Class E airspace
designations listed in this document
will subsequently be published in FAA
Order JO 7400.11.
Incorporation by Reference
Class E airspace designations are
published in Paragraph 6005 of FAA
Order JO 7400.11, Airspace
Designations and Reporting Points,
incorporated by reference in 14 CFR
71.1 annually. This document amends
the current version of that order, FAA
Order JO 7400.11G, dated August 19,
2022, and effective September 15, 2022.
These updates will subsequently be
published in the next update to FAA
Order JO 7400.11. FAA Order JO
7400.11G is publicly available as listed
in the ADDRESSES section of this
document. These amendments will be
published in the next update to FAA
Order JO 7400.11.
FAA Order JO 7400.11G lists Class A,
B, C, D, and E airspace areas, air traffic
routes, and reporting points.
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]]>Agencies
[Federal Register Volume 88, Number 77 (Friday, April 21, 2023)]
[Rules and Regulations]
[Pages 24471-24474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-08458]
=======================================================================
-----------------------------------------------------------------------
SMALL BUSINESS ADMINISTRATION
13 CFR Part 115
RIN 3245-AH96
Surety Bond Guarantee Program: Removing Obsolete Forms
AGENCY: U.S. Small Business Administration.
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: The Small Business Administration (SBA) is issuing this direct
final rule to remove references to SBA Form 990A in the regulations of
the Surety Bond Guarantee (SBG) Program. SBA Form 990A is obsolete and
has been discontinued.
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DATES: This rule is effective June 20, 2023, without further action,
unless significant adverse comment is received by May 22, 2023. 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-AH96, using
any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Search for the rule by RIN number 3245-AH08 and follow the instructions
for submitting comments.
Mail: Jermaine Perry, Management Analyst, Office of Surety
Guarantees, U.S. Small Business Administration, 409 3rd Street SW, 8th
Floor, Washington, DC 20416.
SBA will post all comments on https://www.regulations.gov.
If you wish to submit confidential business information (CBI) as
defined in the User Notice at https://www.regulations.gov, please submit
the information to Jermaine Perry, Management Analyst, Office of Surety
Guarantees, U.S. Small Business Administration, 409 3rd Street SW, 8th
Floor, Washington, DC 20416. Highlight the information that you
consider to be CBI and explain why you believe this information should
be held confidential. SBA will review the information and make the
final determination as to whether to publish the information.
FOR FURTHER INFORMATION CONTACT: Jermaine Perry, Director of Surety
Guarantees at (202) 401-8275 or [email protected]a.gov.
SUPPLEMENTARY INFORMATION:
A. General Information
The U.S. Small Business Administration (SBA) amending its Surety
Bond Guaranty (SGB) rules to remove references to Quick Bond Guarantee
Application and Agreement (SBA Form 990A). Form 990A was integrated
with the current version of Form 990 and therefore discontinued. 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 an authorized surety company (``Surety'') an incentive to provide
bonding for small businesses; thereby assisting small businesses in
obtaining access to more contracting opportunities. SBA's guarantee is
an agreement between SBA and a Surety 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.
SBA issued a Final Rule on Streamlining the Surety Bond Guarantee
Program to address regulations that were obsolete, unnecessary,
ineffective, or burdensome. That final rule was published in the
Federal Register on August 8, 2022 (87 FR 48080). SBA also received
approval from Office of Management and Budget (OMB) to revise the
information collections language in the SBG Program's various forms,
which were revised in accordance with that Final Rule, and are set to
expire November 25, 2022.
B. Section-by-Section Analysis
Section 115.10. The definition of ``Prior Approval Agreement'' is
being revised because Form 990A is being discontinued. The information
collected on Form 990A has been integrated into current Form 990. SBA
is removing the phrase ``or Quick Bond Guarantee Application and
Agreement (SBA Form 990A)'' from the definition of ``Prior Approval
Agreement.''
Section 115.30. SBA is removing references to the Quick Bond
Guarantee Application and Agreement (SBA Form 990A), which is now
discontinued. SBA is amending the remainder of paragraph (d) to remove
the references to a choice of form.
Section 115.32. SBA is making a technical amendment to paragraph
(b) to remove cross references to Sec. 115.30(d)(1) and (2) because
they are redundant.
SBA is amending paragraph (d)(1) to state that SBA Form 990 must be
submitted to SBA when a surety notifies SBA of any increase or decrease
in the contract or bond amount, even if the original application was on
a Form 990A, Quick Bond Guaranty Application and Agreement form.
C. Compliance With Executive Orders 12866, 12988, 13132, and 13563, the
Congressional Review Act (5 U.S.C. 801-808), the Paperwork Reduction
Act (44 U.S.C., Ch. 35), and the Regulatory Flexibility Act (5 U.S.C.
601-612)
Executive Order 12866
The Office of Management and Budget has determined that this rule
is not a ``significant regulatory action'' under Executive Order 12866.
Executive Order 12988
This direct final rule 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.
This action does not have preemptive effect or retroactive effect.
Executive Order 13132
This rule does not have federalism implications as defined in
Executive Order 13132. It will not have substantial direct effects on
the States, on the relationship between the National Government and the
States, or on the distribution of power and responsibilities among the
various levels of government, as specified in the Executive Order. As
such it does not warrant the preparation of a Federalism assessment.
Executive Order 13563
Executive Order 13563, Improving Regulation and Regulatory Review
(January 18, 2011), requires agencies to adopt regulations through a
process that involves public participation, and to the extent feasible,
base regulations on the open exchange of information and perspectives
from affected stakeholders and the public as a whole. SBA has developed
this rule in a manner consistent with these requirements.
Previously, SBA engaged the public in rulemaking to revise,
streamline, and modernize the Surety Bond Guaranty program. That final
rule published in the Federal Register on August 8, 2022 (87 FR 48080).
While developing that rule, SBA responded to specific inquiries from
government officials and the public regarding changes in response to
the notice of proposed rulemaking published in the Federal Register on
September 23, 2021 (86 FR 52844).
This direct final rule revises some information collection language
in SBG Program forms that conformed with the final rule published on
August 8, 2022; that is set to expire November 30, 2025.
Congressional Review Act, 5 U.S.C. 801-808
The Office of Management and Budget has determined that this is not
a major rule under 5 U.S.C. 804(2).
Paperwork Reduction Act, 44 U.S.C., Ch. 35
SBA has determined that this proposed rule would not impose new
reporting or recordkeeping requirements under the Paperwork Reduction
Act. The rule aligns the regulations with the discontinuation of SBA
Form 990A, Quick Bond Application and
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Agreement, currently approved under OMB Control Number 3245-0378.
Regulatory Flexibility Act, 5 U.S.C. 601-612
When an agency issues a proposed rule, the Regulatory Flexibility
Act (RFA) requires the agency to ``prepare and make available for
public comment an initial regulatory flexibility analysis'' which will
``describe the impact of the proposed rule on small entities.'' (5
U.S.C. 603(a)). However, section 605 of the RFA allows an agency to
certify a rule, in lieu of preparing an analysis, if the proposed
rulemaking is not expected to have a significant economic impact on a
substantial number of small entities.
This direct final rule only removes references to SBA Form 990A in
the regulations of the Surety Bond Guarantee (SBG) Program, as SBA Form
990A is obsolete and has been discontinued. Accordingly, the
Administrator of the SBA hereby certifies that this proposed rule would
not have a significant economic impact on a substantial number of small
entities.
Justification for Direct Final Rule--Administrative Procedures Act
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 removes references to SBA Form
990A in the regulations of the Surety Bond Guarantee (SBG) Program; as
SBA Form 990A is obsolete and has been discontinued. This rule will be
effective on the date shown in the DATES section unless SBA receives
significant adverse comment on or before the deadline for comments.
Significant adverse comments are comments that provide 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 removes references to a discontinued form, with no extraneous
interpretation or other expanded text.
If SBA receives significant adverse comment, SBA will publish a
notice in the Federal Register withdrawing this rule before the
effective date. If SBA receives no significant adverse comments, the
rule will be effective 60 days after publication without further
notice.
List of Subjects in 13 CFR Part 115
Claims, Reporting and recordkeeping requirements, small businesses,
Surety bonds.
For the reasons stated in the preamble, SBA amends 13 CFR part 115
as follows:
PART 115--SURETY BOND GUARANTEE
Subpart A--Provisions for All Surety Bond Guarantees
0
1. The authority citation for part 115 continues to read as follows:
Authority: 5 U.S.C. app 3; 15 U.S.C. 687b, 687c, 694a, 694b
note; and Pub. L. 110-246, Sec. 12079, 122 Stat. 1651.
0
2. Amend Sec. 115.10 by revising the definition of ``Prior Approval
Agreement'' to read as follows:
Sec. 115.10 Definitions.
* * * * *
Prior Approval Agreement means the Surety Bond Guarantee Agreement
(SBA Form 990) entered into between a Prior Approval Surety and SBA
under which SBA agrees to guarantee a specific bond.
* * * * *
0
3. Amend Sec. 115.30 by revising paragraph (d) to read as follows.
Sec. 115.30 Submission of Surety's guarantee application.
* * * * *
(d) Prior Approval Agreement. To apply for a bond guarantee, a
Prior Approval Surety must submit a Surety Bond Guarantee Agreement
(SBA Form 990) and select one of the following application types:
(1) Regular. A Prior Approval Surety may complete and submit a
Surety Bond Guarantee Agreement (SBA Form 990) indicating a Regular
application type to SBA for each Bid Bond or Final Bond. This Form must
be approved by SBA prior to the Surety's Execution of the bond. The
guarantee fees owed in connection with Final Bonds must be paid in
accordance with Sec. 115.32.
(2) Quick Bond Agreement--(i) General procedures. Except as
provided in paragraph (d)(2)(ii) of this section, a Prior Approval
Surety may complete and submit a SBA Form 990 indicating a Quick Bond
Agreement application type for each Bid Bond or Final Bond. This form
must be approved by SBA prior to the Surety's Execution of the bond.
The Quick Bond application type is used only for contract amounts that
do not exceed $500,000 at the time of application. The guarantee fees
owed in connection with Final Bonds must be paid in accordance with
Sec. 115.32.
(ii) Exclusions. The Quick Bond application type may not be used
under the following circumstances:
(A) The Principal has previously defaulted on any contract or has
had any claims or complaints filed against it with any court or
administrative agency;
(B) Work on the Contract commenced before a bond was Executed;
(C) The time for completion of the Contract exceeds 12 months;
(D) The Contract includes a provision for liquidated damages that
exceed $2,500 per day;
(E) The Contract involves asbestos abatement, hazardous waste
removal, or timber sales; or
(F) The bond would be issued under a surety bonding line approved
under Sec. 115.33.
0
4. Amend Sec. 115.32 by revising paragraphs (b) and (d)(1) to read as
follows:
Sec. 115.32 Fees and Premiums.
* * * * *
(b) SBA charge to Principal. SBA does not charge Principals
application or Bid Bond guarantee fees. If SBA guarantees a Final Bond,
the Principal must pay a guarantee fee equal to a certain percentage of
the Contract amount. The percentage is determined by SBA and is
published in Notices in the Federal Register from time to time. The
Principal's fee is rounded to the nearest dollar and is to be remitted
to SBA with the form submitted under Sec. 115.30(d). See paragraph (d)
of this section for additional requirements when the Contract amount
changes.
* * * * *
(d) * * *
(1) Notification and approval. The Prior Approval Surety must
notify SBA of any increases or decreases in the Contract or bond amount
that aggregate 25% or $500,000 of the original contract or bond amount,
whichever is less, as soon as the Surety acquires knowledge of the
change. Whenever the original bond amount increases as a result of a
single change order of at least 25% or $500,000 of the original
contract or bond amount, whichever is less, the prior written approval
of such increase by SBA is required on a supplemental Prior Approval
Agreement and is conditioned upon payment by the Surety of the increase
in the Principal's
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guarantee fee as set forth in paragraph (d)(2) of this section. In
notifying SBA of any increase or decrease in the Contract or bond
amount, the Prior Approval Surety must use SBA Form 990 and select the
application type that it used in applying for the original bond
guarantee.
* * * * *
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2023-08458 Filed 4-20-23; 8:45 am]
BILLING CODE 8026-09-P
