[Federal Register Volume 63, Number 166 (Thursday, August 27, 1998)]
[Rules and Regulations]
[Pages 45677-45679]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22931]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
7 CFR Parts 1735 and 1753
RIN 0572-AB43
Year 2000 Compliance, Telecommunications Program
AGENCY: Rural Utilities Service, USDA.
ACTION: Interim rule.
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SUMMARY: This interim rule adds a new regulation to clarify that RUS
will consider telecommunications systems feasible when writing and
processing loans only if the system, in addition to being feasible in
all other respects, is year 2000 compliant. The interim rule is being
published to further ensure that RUS-financed projects pass the year
2000 date changeover without service or revenue disruption. By
clarifying feasibility considerations for loan processing, RUS lays the
foundation for requests to be made in response to applications
submitted to satisfy year 2000 compliance demands.
DATES: Effective August 27, 1998.
FOR FURTHER INFORMATION CONTACT: Orren E. Cameron III, Acting Assistant
Administrator, Telecommunication Program, Rural Utilities Service, 1400
Independence Ave., SW., STOP 1590, Room 4056, South Building,
Washington, DC. Telephone: (202) 720-9554. Facsimile: (202) 720-0810.
[[Page 45678]]
SUPPLEMENTARY INFORMATION:
Justification for Interim Rule
It is the policy of RUS that rules relating to loans, grants,
benefits, or contracts shall be published for comments notwithstanding
the exemption of 5 U.S.C. 553, with respect to such rules. However,
exemptions are permitted where RUS finds, for good cause, that
compliance would be impracticable, unnecessary, or contrary to the
public interest.
RUS finds that good cause exists to publish this rule for effect
without first soliciting public comment. Some computer-based systems
are not programmed to handle the change of date from December 31, 1999,
to January 1, 2000. These ``non-compliant'' systems may adopt an
incorrect date which can change operating conditions of the system,
causing it to malfunction with potentially catastrophic results.
Telecommunications switches could quit processing calls, utility
billing systems could lose revenue records, and maintenance and
administration systems could become corrupted. RUS believes it would be
contrary to the public interest to delay the effectiveness of the rule,
since it will merely clarify procedures already in effect for
determining feasibility by seeking assurance that, before loan funds
are provided, borrowers' systems are year 2000 compliant or will be
year 2000 compliant within a reasonable time frame. Through this
interim rule, RUS is undertaking to address with its telecommunications
borrowers year 2000 compliance issues that may affect the operations of
RUS-financed rural telecommunications systems, thereby potentially
affecting telecommunications services that are critical to public
health and safety and to borrowers' feasibility. RUS believes that this
program, part of an effort by all USDA Rural Development agencies to
prevent year 2000 problems, is not controversial and, therefore, does
not signal a necessity for advance public comment. For these reasons,
RUS believes that an interim rulemaking is justified.
Classification
This interim rule has been determined to be not significant, and
therefore has not been reviewed by the Office of Management and Budget
under Executive Order 12866.
Civil Justice Reform
This interim rule has been reviewed under Executive Order 12988,
Civil Justice Reform. RUS has determined that this interim rule meets
the applicable standards provided in Sec. 3 of the Executive Order.
Regulatory Flexibility Act
Pursuant to Sec. 605(b) of the Regulatory Flexibility Act, 5 U.S.C.
605(b), RUS certifies that this interim rule will not have a
significant economic impact on a substantial number of small entities
as distinguished from large entities. The rule does not place any
mandates on small entities.
The Regulatory Flexibility Act is intended to encourage Federal
agencies to utilize innovative administrative procedures in dealing
with individuals, small businesses, small organizations, and small
governmental bodies that would otherwise be unnecessarily adversely
affected by Federal regulations. The provision included in this rule
will not impact a substantial number of small entities to a greater
extent than large entities. Therefore, no regulatory flexibility
analysis under the Regulatory Flexibility Act is necessary.
Paperwork Reduction Act
This interim rule does not impose new information collection
requirements for purposes of the Paperwork Reduction Act of 1995 (44
U.S.C. Chapter 35, as amended) (OMB control number 0572-0079).
Environmental Impact
RUS has determined that this interim rule will not significantly
affect the quality of the human environment as defined by the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Therefore,
this action does not require an environmental impact statement or
assessment.
Unfunded Mandates
This interim rule contains no Federal mandates (under the
regulatory provisions of Title II of the Unfunded Mandate Reform Act)
for State, local, and tribal governments or the private sector. Thus
today's rule is not subject to the requirements of sections 202 and 205
of the Unfunded Mandate Reform Act.
Intergovernmental Review
This program is excluded from the scope of Executive Order 12372,
Intergovernmental Consultation. A Notice of Final Rule entitled
Department Programs and Activities Excluded from Executive Order 12372
(50 FR 47034) exempts RUS loans and loan guarantees and Rural Telephone
Bank loans to governmental and non-governmental entities from coverage
under this Order.
Catalog of Federal Domestic Assistance
The program described by this interim rule is listed in the Catalog
of Federal Domestic Assistance Programs under 10.851, Rural
Telecommunications Loans and Loan Guarantees, and 10.852, Rural
Telephone Bank Loans. This catalog is available on a subscription basis
from the Superintendent of Documents, the United States Government
Printing Office, Washington, DC 20402.
List of Subjects
7 CFR Part 1735
Accounting, Loan programs--communications, Reporting and
recordkeeping requirements, Rural areas, Telecommunications.
7 CFR Part 1753
Communications equipment, Loan programs--communications, Reporting
and recordkeeping requirements, Rural areas, Telecommunications.
For the reasons set forth in the preamble, and under the authority
of 7 U.S.C. 901 et seq., chapter XVII of Title 7 of the Code of Federal
Regulations is amended as follows:
PART 1735--GENERAL POLICIES, TYPES OF LOANS, LOAN REQUIREMENTS--
TELECOMMUNICATIONS PROGRAM
1. The authority citation for part 1735 continues to read as
follows:
Authority: 7 U.S.C. 901 et seq., 1921 et seq.; Pub. L. 103-354,
108 Stat. 3178 (7 U.S.C. 6941 et seq.).
2. In Sec. 1735.22, two new sentences are added at the end of
paragraph (e) to read as follows:
Sec. 1735.22 Loan security.
* * * * *
(e) * * * In addition, RUS considers a system to be feasible only
if the system, in addition to being feasible in all other respects, is
year 2000 compliant or if the borrower provides RUS with a
certification, satisfactory to RUS, that the system will be year 2000
compliant at a reasonable time before December 31, 1999. Year 2000
compliant means that product performance and function are not affected
by dates before, during, and after the year 2000.
* * * * *
PART 1753--TELECOMMUNICATIONS SYSTEM CONSTRUCTION POLICIES AND
PROCEDURES
1. The authority citation for part 1753 continues to read as
follows:
[[Page 45679]]
Authority: 7 U.S.C. 901 et seq., 1921 et seq.
2. In Sec. 1753.6, a new sentence is added at the end of paragraph
(c) to read as follows:
Sec. 1753.6 Standards, specifications, and general requirements.
* * * * *
(c) * * * The materials and equipment must be year 2000 compliant,
as defined in 7 CFR 1735.22(e).
* * * * *
Dated: August 12, 1998.
Jill Long Thompson,
Under Secretary, Rural Development.
[FR Doc. 98-22931 Filed 8-26-98; 8:45 am]
BILLING CODE 3410-15-P