[Federal Register Volume 62, Number 20 (Thursday, January 30, 1997)]
[Proposed Rules]
[Pages 4497-4499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2316]


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DEPARTMENT OF THE INTERIOR

Bureau of Indian Affairs

25 CFR Part 286

RIN 1076-AD70


Indian Business Development Program

AGENCY: Bureau of Indian Affairs, Interior.

Action: Proposed rule.

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SUMMARY: The Bureau of Indian Affairs (BIA) is proposing to revise the 
regulations governing Indian Business Development Program (IBDP) 
grants. The rule has been abbreviated and rewritten in plain English as 
a part of the President's initiative to make rules easier to 
understand.

DATES: Comments must be received on or before March 31, 1997.

ADDRESSES: Mail comments to Nancy Jemison, Director, Office of Economic 
Development, Bureau of Indian Affairs, Department of the Interior, 1849 
C St. NW, Mail Stop 2061-MIB, Washington, DC 20240; OR, hand deliver 
them to Room 2061 at the above address. Comments will be available for 
inspection at this address from 9:00 a.m. to 4:00 p.m., Monday through 
Friday beginning approximately 2 weeks after publication of this 
document in the Federal Register.

FOR FURTHER INFORMATION CONTACT: Woody Sneed, Financial Analyst, Office 
of Economic Development, Bureau of Indian Affairs at telephone (202) 
208-4796.

SUPPLEMENTARY INFORMATION:

Background

    The IBDP grant program has been discontinued but grantees having 
already received grants must report on the financial status of their 
businesses for five years after date of receipt of the grants. The new 
rule deletes references to applications and their required contents but 
retains reporting requirements.

Supplementary Information

    Publication of the proposed rule by the Department of the Interior 
(Department) provides the public an opportunity to participate in the 
rulemaking process. Interested persons may submit written comments 
regarding the proposed rule to the location identified in the ADDRESSES 
section of this document.

Executive Order 12778

    The Department has certified to the Office of Management and Budget 
(OMB) that these proposed regulations meet the applicable standards 
provided in sections 2(a) and 2(b)(2) of Executive Order 12778.

Executive Order 12866

    This proposed rule is not a significant regulatory action under 
Executive Order 12866 and has not been reviewed by the Office of 
Management and Budget.

[[Page 4498]]

Regulatory Flexibility Act

    This proposed rule will not have a significant economic impact on a 
substantial number of small entities under the Regulatory Flexibility 
Act (5 U.S.C. 601 et seq.).

Executive Order 12630

    The Department has determined that this proposed rule does not have 
``significant takings'' implications. The proposed rule does not 
pertain to ``taking'' of private property interests, nor does it impact 
private property.

Executive Order 12612

    The Department has determined that this proposed rule does not have 
significant federalism effects because it pertains solely to Federal-
tribal relations and will not interfere with the roles, rights and 
responsibilities of states.

NEPA Statement

    The Department has determined that this proposed rule does not 
constitute a major Federal action significantly affecting the quality 
of the human environment and that no detailed statement is required 
pursuant to the National Environmental Policy Act of 1969.

Unfunded Mandates Act

    This rule imposes no unfunded mandates on any governmental or 
private entity and is in compliance with the provisions of the Unfunded 
Mandates Act of 1995.

Paperwork Reduction Act of 1995

    Section 286.7 contains information collection requirements. As 
required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), 
the Department of the Interior has submitted a copy of these sections 
to the Office of Management and Budget (OMB) for its review.
    Indian tribes and individuals who have received grants must furnish 
comparative balance sheets and profit and loss statements semiannually 
for the first two years after the grant and annually for the next three 
years. There is no BIA form for these statements since industry 
standards dictate the financial statement requirements. The annual 
reporting and recordkeeping burden for this collection of information 
is estimated to average 1 hour for each response, including the time 
for reviewing instructions, searching existing data sources, gathering 
and maintaining the data needed, and completing and reviewing 
collection of information. There are 252 grantees who report 
semiannually and 377 who report annually. Thus, the total annual 
reporting and record keeping burden for this collection is estimated to 
be 881 hours. Respondents' hourly rate is similar to a Federal employee 
GS-9 or $19.25 per hour.

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                                                                                            Total        Burden       Annual                            
                      CFR section 286.6                         Number of    Frequency      annual     hours per      burden      Cost to     Total cost
                                                               respondents  of response   responses     response      hours     respondents             
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Annual.......................................................          377            1          377            1          377       $7,257  ...........
Semiannual...................................................          252            2          504            1          504        9,702      $16,959
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    Organizations and individuals desiring to submit comments on the 
information collection requirement should direct them to the Office of 
Information and Regulatory Affairs, OMB, Room 10202, New Executive 
Office Building, Washington, D.C. 20503; Attention: Desk Officer for 
the U.S. Department of the Interior.
    The Department considers comments by the public on this proposed 
collection of information in:
    Evaluating whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Department, including whether the information will have practical 
utility;
    Evaluating the accuracy of the Department's estimate of the burden 
of the proposed collection of information, including the validity of 
the methodology and assumptions used;
    Enhancing the quality, usefulness, and clarity of the information 
to be collected; and;
    Minimizing the burden of the collection of information on those who 
are to respond, including through the use of appropriate automated, 
electronic, mechanical, or other collection techniques or other forms 
of information technology.
    OMB is required to make a decision concerning the collection of 
information contained in these proposed regulations between 30 and 60 
days after publication of this document in the Federal Register. 
Therefore, a comment to the OMB is best assured of having its full 
effect if OMB receives it within 30 days of publication. This does not 
affect the deadline for the public to comment to the Bureau of Indian 
Affairs on the proposed regulations.

Drafting Information

    The primary author of this document is Woody Sneed, Office of 
Economic Development, Bureau of Indian Affairs, Department of the 
Interior.

List of Subjects in 25 CFR Part 286

    Indians--business and finance.

    For the reasons given in the preamble, Part 286 of Title 25, 
Chapter I, Subchapter N of the Code of Federal Regulations is proposed 
to be revised as set forth below.

PART 286--INDIAN BUSINESS DEVELOPMENT PROGRAM

Sec.
286.1  Definitions.
286.2  What is the purpose of these regulations?
286.3  Information collection.
286.4  What are the grant limitations and requirements that apply?
286.5  Do I need to return unused funds?
286.6  What reports must I submit?

    Authority: 25 U.S.C. 1524.


Sec. 286.1  Definitions.

    As used in this part 286:
    Economic enterprise means any profit oriented Indian-owned, 
commercial, industrial, agricultural, or business activity which must 
be at least 51 per cent Indian owned.
    Grantee means the recipient of a nonreimbursable grant under this 
part.
    Indian means a member of a Federally recognized Indian or Alaska 
Native tribe or village who is eligible for assistance from the Bureau 
of Indian Affairs.
    Reservation means Indian reservation, California rancheria, public 
domain Indian allotment, former Indian reservation in Oklahoma, and 
land held by an incorporated Alaska Native group, regional corporation, 
or village corporation under the provisions of the Alaska Native Claims 
Settlement Act (85 Stat. 688), as amended.
    Tribe means any Indian tribe, band, nation, rancheria, pueblo, 
colony, or community. It includes any Alaska Native village or any 
regional, village, urban, or group corporation--as defined in the 
Alaska Native Claims Settlement

[[Page 4499]]

Act (85 Stat. 688) and recognized by the federal government as eligible 
for services from the Bureau of Indian Affairs.
    We, us, or our mean the Secretary of the Interior or the official 
in the Bureau of Indian Affairs to whom the Secretary has delegated 
authority.


Sec. 286.2  What is the purpose of these regulations?

    This part prescribes regulations and procedures pertaining to the 
Indian Business Development Program which has provided grants to 
further economic development on Indian reservations. It gives 
requirements you must follow on reporting the status of grants and 
complying with grant conditions. It also establishes the circumstances 
under which you must return grant funds.


Sec. 286.3  Information collection.

    (a) The Office of Management and Budget has approved our collection 
of information under 44 U.S.C. 3501 et seq. under clearance number 
1076-0093. The collection of information helps the BIA to provide 
assistance to failing businesses funded with grants and to compile 
reports on the program's effectiveness.
    (b) We estimate the public reporting for this information to 
average 1 hour per response, including the time for reviewing 
instructions, searching existing data sources, gathering and 
maintaining the data needed, and completing and reviewing the 
collection of information. These may be copies of financial statements 
required by and furnished to the lender which provided the loan portion 
of the total financing required. Send comments regarding this burden 
estimate or any other aspect of this collection of information, 
including suggestions for reducing the burden, to the Director of 
Management and Administration, Bureau of Indian Affairs, 1849 C Street, 
NW., Washington, DC 20240 and the Office of Management and Budget, 
Paperwork Reduction Project (1076-0093), Washington, DC 20503.


Sec. 286.4  What are the grant limitations and requirements that apply?

    An Indian tribe cannot receive over $250,000 in grants from this 
program. The total of grants to an individual or any other non-tribal 
business entity cannot exceed $100,000. Grantees must have obtained at 
least 75 percent of the necessary financing from sources other than the 
direct and guaranteed loan programs.


Sec. 286.5  Do I need to return unused funds?

    (a) You must return all or a portion of the funds in the following 
circumstances:

You Must Return the Entire Grant if, Within 3 Years of the Grant

You sell the business which received the grant and did not reinvest the 
proceeds, with our approval, in a new business which contributes to the 
reservation economy.
You move the business off the reservation and it no longer contributes 
to the reservation economy.
Indian ownership and/or active management falls below 51 percent.
If a cooperative association, profits are not allocated for later 
distribution to members.

    (b) When do I need to return unused funds? We require you to return 
unused grant funds if you do not initiate the economic enterprise 
within the time stated in your grant agreement. Grant funds owed will 
be deemed debt owed to the United States. The following table indicates 
circumstances in which you must return funds.

You Must Return Unused Funds if You Did Not Initiate Your Grant Through 
These Types of Actions

You have not obtained a lease if you needed to do this for your 
enterprise.
You have not started construction, if that was necessary.
You have not purchased equipment or other materials needed for the 
enterprise.
You have not performed other actions which were necessary to initiate 
the enterprise.

    (c) Can I obtain an extension of time to allow me to start my 
enterprise? If we determine that circumstances exist beyond your 
control we may extend the time we allow you to initiate the enterprise. 
No program may be initiated and no funding may be disbursed after 
September 30, 1997.
    (d) What additional information do I need to provide for an 
extension? You must provide assurance that you will initiate the 
enterprise within the extended time period. We will write to the lender 
regarding any actions which we propose requiring you to return grant 
funds or of any proposal to extend the time.


Sec. 286.6  What reports must I submit?

    (a) After receiving a grant, you must furnish us the following 
information:

------------------------------------------------------------------------
                                     Semiannually        And annually   
         You must submit                during              during      
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comparative balance sheets......  the first two       years three       
                                   years of            through five of  
                                   operation.          operation.       
profit and loss statements......  the first two       years three       
                                   years of            through five of  
                                   operation.          operation.       
------------------------------------------------------------------------

    (b) You may use copies of financial statements which you furnish to 
the lender who provides partial financing.
    (c) If you fail to provide the necessary reports, we will require 
repayment of grant funds. Grant funds owed will be deemed debt owed to 
the United States.

    Dated: January 10, 1997.
Ada E. Deer,
Assistant Secretary--Indian Affairs.
[FR Doc. 97-2316 Filed 1-29-97; 8:45 am]
BILLING CODE 4310-22-P