[Federal Register Volume 61, Number 212 (Thursday, October 31, 1996)]
[Rules and Regulations]
[Pages 56114-56116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27766]


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DEPARTMENT OF AGRICULTURE

Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency

7 CFR Parts 1901, 1924, 1944

RIN 0575-AC06


Davis-Bacon Act *C*

AGENCIES: Rural Housing Service, Rural Business-Cooperative Service, 
Rural Utilities Service, and Farm Service Agency, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Housing Service (RHS) is removing its regulation 
that contains procedures and requirements for complying with the Davis-
Bacon and related Acts. Under the reorganization of the Department of 
Agriculture, RHS is the successor to the former Farmers Home 
Administration (FmHA) for the administration of rural housing programs 
under title V of the Housing Act of 1949. Regulations regarding

[[Page 56115]]

Planning and Performing Development Work, and Farm Labor Housing Grants 
are also impacted by this rule. This regulation is being removed since 
the portions thereof that contain information the public needs to know 
are published in 29 CFR parts 1, 3, and 5. Therefore, this action will 
remove duplication of regulations. This rule, however, will not remove 
or change the requirement for certain RHS-financed construction 
projects to comply with the Davis-Bacon and related Acts.

EFFECTIVE DATE: October 31, 1996.

FOR FURTHER INFORMATION CONTACT: Keith A. Suerdieck, Architect, Rural 
Housing Service, USDA, Ag Box 0761, Room 6309, South Agriculture 
Building, 14th Street and Independence Avenue SW., Washington, D.C. 
20250-0761, Telephone (202) 720-9619.

SUPPLEMENTARY INFORMATION:

Classification

    This rule has been determined to be not significant for purposes of 
Executive Order 12866 and, therefore, has not been reviewed by the 
Office of Management and Budget.

Regulatory Flexibility Act

    This rule has been reviewed with regard to the requirements of the 
Regulatory Flexibility Act (5 U.S.C. 601-612). The Administrator of RHS 
has determined and certified that this action will not have a 
significant economic impact on a substantial number of small entities 
since it will not change the requirements and procedures of the Davis-
Bacon and other related Acts, as published in 29 CFR parts 1, 3 and 5 
and as they apply to the affected projects financed by RHS.

The Unfunded Mandate Reform Act

    Title II of the Unfunded Mandate 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, RHS 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to state, local or tribal governments, in 
the aggregate, or to the private sector. When such a statement is 
needed for a rule, section 205 of the UMRA generally requires RHS 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 objective of the rule.
    This rule contains no Federal mandates (under 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 the UMRA.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' It is the determination of RHS 
that this 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, Pub. L. 
91-190, an Environmental Impact Statement is not required.

Programs Affected

    The affected programs are listed in the Catalog of Federal Domestic 
Assistance under Numbers:

10.405  Farm Labor Housing Loans and Grants
10.415  Rural Rental Housing Loans

Intergovernmental Consultation

    For the reason set forth in the final rule related Notice to 7 CFR 
part 3015, subpart V, 48 FR 29115, June 24, 1983, these programs are 
excluded from the scope of Executive Order 12372, which requires 
intergovernmental consultation with State and local officials.

Civil Justice Reform

    This final rule has been reviewed under Executive Order 12778, 
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) no retroactive effect will be given to this rule; and 
(3) administrative proceedings in accordance with the regulations at 7 
CFR part 11 and part 1900, subpart B, be exhausted before bringing suit 
in court challenging action taken under this rule unless those 
regulations specifically allow bringing suit at an earlier time.

Paperwork Reduction Act

    The information collection requirements contained in this 
regulation have been previously approved by the Office of Management 
and Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and have 
been assigned OMB control numbers 1215-0017, 1215-0140, and 1215-0149, 
in accordance with the Paperwork Reduction Act of 1980. This final rule 
does not impose any new information collection requirements from those 
approved by OMB.

Discussion

    Procedures and requirements contained in this regulation for 
complying with the Davis-Bacon and related Acts are also contained in 
the Department of Labor regulations (29 CFR parts 1, 3, and 5). In 
keeping with the spirit of regulation reduction, RHS feels there is no 
need for the procedures and requirements to be published in more than 
one regulation. The requirement for certain RHS-financed construction 
projects to comply with the Davis-Bacon and related Acts is not removed 
or changed in any way by this rule.
    Portions of this regulation that only involve internal Agency 
management are revised as an agency guideline. The guideline is for RHS 
usage in implementing procedures as prescribed in the Department of 
Labor regulations. The guideline is not published in the Code of 
Federal Regulations, but is available in any RHS office. Attached to 
the guideline is a copy of the labor standards provisions published in 
29 CFR part 5 and may be locally reproduced and distributed to program 
participates as necessary.
    It is the policy of this Department to publish for comment rules 
relating to public property, loans, grants, benefits or contracts 
notwithstanding the exemption in 5 U.S.C. 553 with respect to such 
rules. This action, however, is not published for prior notice and 
comment since it involves only internal Agency management, and 
publication for prior notice and comment is unnecessary and contrary to 
the public interest.
    Conforming changes which are necessary to other regulations as a 
result of removing subpart D of part 1901 are included.

List of Subjects in 7 CFR Parts 1901, 1924, and 1944

    Agriculture, Construction management, Construction and repair, 
Energy conservation, Farm labor housing, Grant programs--Housing and 
community development, Housing, Loan programs--Agriculture, Loan 
programs--Housing and community development, Low and moderate income 
housing, Migrant labor, Minimum wages, Nonprofit organizations, Public 
housing, Rent subsidies, Rural housing.

    Accordingly, parts 1901, 1924 and 1944 of title 7, Code of Federal 
Regulations are amended as follows:

[[Page 56116]]

PART 1901--PROGRAM-RELATED INSTRUCTIONS

Subpart D--[Removed and Reserved]

    1. Under the Authority 7 U.S.C. 1989, 42 U.S.C. 1480, and subpart 
D, consisting of Secs. 1901.151-1901.158 and Exhibit A, is removed and 
reserved.

PART 1924--CONSTRUCTION AND REPAIR

    2. The authority citation for part 1924 is revised to read as 
follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart A--Planning and Performing Construction and Other 
Development

    3. Section 1924.6 is amended in paragraph (a)(3)(iv) by revising 
the words ``and/or'' to ``or;'' in paragraph (a)(6) by revising the 
reference to ``SCS'' to read ``NRCS;'' in the first sentence of 
paragraph (a)(8) by revising the phrase ``physically handicapped 
persons'' to read ``people with disabilities''; and by revising 
paragraph (a)(5) to read as follows:


Sec. 1924.6  Performing development work.

* * * * *
    (a) * * *
    (5) Labor standards provisions. The provisions of the Davis-Bacon 
and related acts, which are published by the Department of Labor (29 
CFR parts 1, 3 and 5), will apply when the contract involves either LH 
grant assistance, or 9 or more units in a project being assisted under 
the HUD section 8 housing assistance payment program for new 
construction.
* * * * *


Sec. 1924.13  [Amended]

    4. Section 1924.13 is amended in paragraph (e)(1)(ii), Item XVI by 
removing the phrase ``[Exhibit A to Subpart D of Part 1901 of this 
chapter, where applicable.]'' and by adding the phrase ``[Where 
applicable.]''.
* * * * *

PART 1944--HOUSING

    5. The authority citation for part 1944 continues to read as 
follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

Subpart D--Farm Labor Housing Loan and Grant Policies, Procedures, 
and Authorizations

    6. Section 1944.169 is amended in paragraph (c)(4)(v) by revising 
the reference to the ``Administrator of the Soil Conservation Service'' 
to read ``Chief of the Natural Resources Conservation Service;'' and by 
revising paragraph (c)(2) to read as follows:


Sec. 1944.169  Technical, legal, and other services.

* * * * *
    (c) * * *
    (2) Labor standards provisions. Construction financed with the 
assistance of an LH grant will be subject to the provisions of the 
Davis-Bacon and related acts, and the regulations implementing those 
acts published by the Department of Labor regulations at 29 CFR parts 
1, 3, and 5.
* * * * *

Subpart D [Amended]

    7. Exhibit A-1 to subpart D is amended by removing the last two 
sentences in paragraph II (E) and adding a new sentence in their place 
to read ``If an LH grant is proposed, construction will be subject to 
the provisions of the Davis-Bacon and related Acts. LH grant applicants 
should, therefore, obtain a copy of the Department of Labor regulations 
(29 CFR part 5), which contain the applicable labor standards 
provisions.''

    Dated: August 16, 1996.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 96-27766 Filed 10-30-96; 8:45 am]
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