[Federal Register Volume 67, Number 199 (Tuesday, October 15, 2002)]
[Rules and Regulations]
[Pages 63536-63537]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 02-26108]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
7 CFR Part 1942
RIN 0570-AA32
Rural Business Enterprise Grants and Television Demonstration
Grants
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Business-Cooperative Service (RBS) adopts its
interim rule published May 16, 2001 (66 FR 27013-27014), as a final
rule without change. This action makes the revision to the definition
of small and emerging private business enterprise final. The intended
effect will ensure that grantees can assist small businesses in rural
areas without eligibility restrictions for the use of technological
innovations or commercialization of new products or processes.
EFFECTIVE DATE: October 15, 2002.
FOR FURTHER INFORMATION CONTACT: Amy Cavanaugh, Rural Development
Specialist, Specialty Lenders Division, Rural Business-Cooperative
Service, U.S. Department of Agriculture, STOP 3225, 1400 Independence
Ave. SW, Washington, DC 20250, Telephone (202) 690-2516. The TDD number
is (800) 877-8339 or (202) 708-9300.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be non-significant and has not
been reviewed by the Office of Management and Budget.
Programs Affected
The Catalog of Federal Domestic Assistance number for the program
impacted by this action is 10.769, Rural Development Grants.
Paperwork Reduction Act
There are no reporting and recordkeeping requirements associated
with this rule.
Intergovernmental Review
The Rural Business Enterprise Grant (RBEG) Program is subject to
the provisions of Executive Order 12372, which requires
intergovernmental consultation with State and local officials. RBS will
conduct intergovernmental consultation in the manner delineated in RD
Instruction 1940-J, ``Intergovernmental Review of Rural Development
Programs and Activities,'' and in 7 CFR part 3015, subpart V.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
602), the undersigned has determined and certified by signature of this
document that this rule will not have a significant economic impact on
a substantial number of small entities. New provisions included in this
rule will not impact a substantial number of small entities to a
greater extent than large entities. Therefore, a regulatory flexibility
analysis was not performed.
Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. In accordance with this rule: (1) All State and local
laws and regulations that are in conflict with this rule will be
preempted; (2) retroactive effect will be given to this rule starting
August 11, 1988; and (3) administrative proceedings in accordance with
the regulations of the Agency at 7 CFR part 11 must be exhausted before
bringing suit in court challenging action taken under this rule unless
those regulations specifically allow bringing suit at an earlier time.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' RBS has determined that this
proposed action does not constitute a major Federal action
significantly affecting the quality of the human environment, and, in
accordance with the National Environmental Policy Act of 1969, 42
U.S.C. 4321 et seq, an Environmental Impact Statement is not required.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, RBS
must prepare a written statement, including a cost-benefit analysis,
for proposed and final rules with ``Federal
[[Page 63537]]
mandates'' that may result in expenditures to State, local or tribal
governments, in the aggregate, or to the private sector, of $100
million or more in any 1 year. When such a statement is needed for a
rule, section 205 of UMRA generally requires RBS to identify and
consider a reasonable number of regulatory alternatives and adopt the
least costly, more cost-effective, or least burdensome alternative that
achieves the objectives of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of title II of the UMRA) for State, local, and tribal
governments or the private sector. Thus, this rule is not subject to
the requirements of sections 202 and 205 of UMRA.
Executive Order 13132
It has been determined under Executive Order 13132, Federalism,
that this rule does not have sufficient federalism implications to
warrant the preparation of a Federalism Assessment. The provisions
contained in this rule will not have a substantial direct effect on
States or their political subdivisions or on the distribution of power
and responsibilities among the various levels of government.
Background
This regulatory package is an RBS initiative to make the RBEG
Program more effective at stimulating economic development by reducing
certain eligibility requirements for small and emerging private
business enterprises (small business) located in rural areas. There has
been much confusion on the definition of small business since it was
first published in the Federal Register on August 11, 1988. At that
time, the RBEG Program was called the Industrial Development Grant
Program. The name of the program was changed in 1992 and still
contained the small and emerging business definition. The RBEG Program
has been administered by two separate agencies since inception of the
program. The Farmers Home Administration (FmHA) originally administered
the RBEG Program. In 1996, it was transferred to RBS. FmHA
misinterpreted the definition of small and emerging business in its
regulations as only needing to meet the first two parts of the
definition in order to be eligible for assistance and funded grants
based on this misinterpretation. RBS has recently determined that the
FmHA interpretation is not consistent with the actual regulatory
language. Therefore, the Agency wants to correct the definition
language and make it retroactive from August 11, 1988, so the revised
definition will be applicable to existing grants. Retroactive
application of the definition will validate existing grants, which
might not otherwise have been eligible under a strict application of
the regulatory criteria defining a small business. This will ultimately
streamline the regulation and reduce the burden to the applicant in
meeting the restricted definition.
Discussion of Comments
This rule was published in the Federal Register as an interim rule
on May 16, 2001 (66 FR 27013-27014). There were five comments received
regarding the small and emerging private business enterprise definition
change. Three comments were actually requests for general program
information. One comment concerned the need to do a survey to prove
that those benefiting from the program were all low-income residents.
There is no such regulatory requirement in the RBEG Program. This
program directly benefits small businesses rather than residents. The
last comment suggested that for-profit business enterprises be eligible
to receive grant funds to do technical assistance services. The
authorizing statute for the RBEG program, section 310B(c) of the
Consolidated Farm and Rural Development Act, 7 U.S.C. 1932(c), only
allows for private nonprofit corporations and public bodies, which
includes Federally recognized Indian Tribes, to be eligible to receive
grant funds. However, if a grantee does not have the expertise, it may
contract with a for-profit business to provide the necessary technical
assistance services to the benefiting small businesses.
List of Subjects in 7 CFR Part 1942
Business and industry, Grant programs--Housing and community
development, Industrial park, Rural areas.
PART 1942--ASSOCIATIONS
Accordingly, the interim rule amending 7 CFR part 1942 which was
published May 16, 2001 (66 FR 27013-27014), is adopted as a final rule
without change.
Dated: October 4, 2002.
Thomas C. Dorr,
Under Secretary, Rural Development.
[FR Doc. 02-26108 Filed 10-11-02; 8:45 am]
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