[Federal Register Volume 64, Number 82 (Thursday, April 29, 1999)]
[Proposed Rules]
[Pages 23027-23028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10680]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 64, No. 82 / Thursday, April 29, 1999 / 
Proposed Rules  

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SMALL BUSINESS ADMINISTRATION

13 CFR Part 114


Administrative Claims Under the Tort Claims Act and 
Representations and Indemnification of SBA Employees

AGENCY: Small Business Administration.

ACTION: Proposed rule.

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SUMMARY: SBA is revising a portion of its rules governing 
Administrative Claims under the Tort Claims Act. Presently a claim must 
be presented to the SBA District Counsel for the SBA District Office in 
the same State as the claim. The SBA District Counsel has the authority 
to deny a tort claim of $5,000 or less or to recommend any other action 
to the SBA General Counsel. This proposed rule will provide the same 
authority to Disaster Area Counsel when the claim is based on the acts 
or omissions of employees of SBA's Disaster Assistance Program. It will 
also vest authority to approve or deny a tort claim of $25,000 or less 
with SBA's Associate General Counsel for Litigation, rather than the 
General Counsel.

DATES: Submit comments must on or before June 1, 1999.

ADDRESSES: Address comments Timothy Treanor, Chief Counsel to the 
Disaster Assistance Program, U.S. Small Business Administration, 409 
3rd Street, SW., Suite 7500, Washington, DC 20416.

FOR FURTHER INFORMATION CONTACT: Timothy Treanor, (202) 205-6885.

SUPPLEMENTARY INFORMATION: Under the Disaster Assistance Program, SBA 
makes direct loans to individual and business victims of natural 
disasters. SBA makes these loans through an organizational structure 
that is separate and distinct from other SBA lending programs. The 
Disaster Assistance Program operates from four permanent Area Offices 
and from temporary local offices that are from time to time established 
to handle such disasters. SBA's Disaster Area Office employees and 
local office employees are located in different offices from other SBA 
employees and report to different managers.
    Currently, SBA's District Counsels who are not located in disaster 
offices have exclusive authority to investigate any claim arising 
within the jurisdiction covered by their Districts, including claims 
based on acts or omissions of Disaster Assistance employees. District 
Counsels also have the authority to deny or recommend approval of a 
claim for $5,000 or less. Currently, for claims exceeding $5,000 but 
less than $25,000, District Counsels investigate claims and forward 
them with a recommendation to SBA's General Counsel.
    Under this proposed regulation, a claimant could file a tort claim 
against SBA for the acts or omissions of an employee of SBA's Disaster 
Assistance Program either at the State's District Office (the one 
closest to the site of the injury if there are more than one District 
Offices) or at the nearest Disaster Area Office. The proposed 
regulation would provide authority identical to that of the District 
Counsel to the Disaster Area Counsel to investigate and make 
recommendations concerning claims arising from a Disaster Assistance 
employee's acts or omissions. It would also vest the Associate General 
Counsel for Litigation with the authority to decide claims of $25,000 
or less, which is in line with the Agency's current practice.
    The proposed regulation also removes inaccurate language from 
Sec. 114.105 concerning the requirement that District Counsel consult 
with the General Counsel before approving claims for less than $5,000 
(the District Counsel does not have the authority to approve such 
claims).
    The proposed regulation also removes unnecessary language from 
Secs. 114.106 and 114.108 which purports to characterize Sec. 114.107, 
and makes other minor, technical changes.

Compliance with Executive Orders 12612, 12778, 12866, the 
Regulatory Flexibility Act (5 U.S.C. Sec. 601 et seq.), and the 
Paperwork Reduction Act (44 U.S.C. Ch. 35)

    SBA certifies that this proposed rule is not a significant rule 
within the meaning of Executive Order 12866; it is not likely to have 
an annual economic effect of $100 million or more, result in a major 
increase in cost or prices, or have a significant adverse effect on 
competition or the United States economy. SBA also certifies that this 
rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. Sec. 601 et seq. This rule provides for the 
more efficient administration of SBA's responsibilities under the 
Federal Tort Claims Act and imposes neither fees or additional 
administrative responsibilities on small businesses. For purposes of 
the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA certifies that this 
final rule contains no new reporting or record keeping requirements.
    For purposes of Executive Order 12612, SBA certifies that this rule 
has no federalism implications warranting the preparation of a 
Federalism Assessment. For purposes of Executive Order 12778, SBA 
certifies that this rule is drafted, to the extent practicable, in 
accordance with the standards set forth in Section 2 of that Order.

List of Subjects in 13 CFR Part 114

    Claims.

    For the reasons stated in the preamble, SBA proposes to amend 13 
CFR part 114 as follows:

PART 114--ADMINISTRATIVE CLAIMS UNDER THE FEDERAL TORT CLAIMS ACT 
AND REPRESENTATION AND INDEMNIFICATION OF SBA EMPLOYEES

    1. The authority citation for part 114 continues to read as 
follows:

    Authority: 15 U.S.C. 634(b)(1), (b)(6); 28 U.S.C. 2672; 28 CFR 
14.11.

    2. Revise Sec. 114.102 to read as follows:


Sec. 114.102.  When, where, and how do I present a claim?

    (a) When. You must present your claim within 2 years of the date of 
accrual.
    (b) Where. You may present your claim at the SBA District Office 
nearest to the site of the action giving rise to the claim and within 
the same State as the site. If you claim is based on the acts or 
omissions of an employee of SBA's Disaster Assistance Program, you may 
present your claim either to the appropriate SBA District Office or to 
the Disaster Assistance Office nearest to the site of the action giving 
rise to the claim.
    (c) How. You must use an official form which can be obtained from 
the SBA office where you file the claim or give other written notice of 
your claim,

[[Page 23028]]

stating the specific amount of your alleged damages and providing 
enough information to enable SBA to investigate your claim. You may 
present your claim in person or by mail, but your claim will not be 
considered presented until SBA receives the written information.
    3. Revise Sec. 114.105 (b) and (c) to read as follows:


Sec. 114.105  Who investigates and considers my claim?

* * * * *
    (b) In those cases in which SBA investigates your claim, and which 
arise out of the acts or omissions of employees other than employees of 
the Disaster Assistance program, the SBA District Counsel in the office 
with jurisdiction over the site where the action giving rise to the 
claim occurred will investigate and make recommendations or 
determination with respect to your claim. In those cases in which SBA 
investigates your claim, and which arise out of acts or omissions of 
Disaster Assistance Program employees, the SBA Disaster Area Counsel in 
the office with jurisdiction over the site where the action giving rise 
to the claim occurred will investigate and make recommendations or a 
determination with respect to your claim. The District Counsel, or 
Disaster Area Counsel, where appropriate, may negotiate with you, and 
is authorized to use alternative dispute resolution mechanisms, which 
are non-binding on SBA, when they may promote the prompt, fair, and 
efficient resolution of your claim.
    (c) If your claim is for $5,000 or less, the District Counsel or 
Disaster Area Counsel who investigates your claim may deny the claim, 
or may recommend approval, compromise, or settlement of the claim to 
the Associate General Counsel for Litigation, who will in such a case 
take final action.
    4. Revise Sec. 114.106 to read as follows:


Sec. 114.106  What if my claim exceeds $5,000?

    The District Counsel or Disaster Area Counsel, as appropriate, must 
review and investigate your claim and forward it with a report and 
recommendation to the Associate General Counsel for Litigation or 
designee, who may approve or deny an award, compromise, or settlement 
of claims in excess of $5,000, but not exceeding $25,000.
    5. Revise Sec. 114.108 to read as follows:


Sec. 114.108  What if my claim is approved?

    SBA will notify you in writing if it approves your claim. The 
District Counsel or Disaster Area Counsel investigating your claim will 
forward to you, your agent, or legal representative the forms necessary 
to indicate satisfaction of your claim and your acceptance of the 
payment. Acceptance by you, your agent, or your legal representative of 
any award, compromise, or settlement releases all your claims against 
the United States under the Federal Tort Claims Act. This means that it 
binds you, your agent, or your legal representative, and any other 
person on whose behalf or for whose benefit the claim was presented. It 
also constitutes a complete release of our claim against the United 
States and its employees. If you are represented by counsel, SBA will 
designate you and your counsel as joint payees and will deliver the 
check to counsel. Payment is contingent upon the waiver of your claim 
and is subject to the availability of appropriated funds.
Aida Alvarez,
Administrator.
[FR Doc. 99-10680 Filed 4-28-99; 8:45 am]
BILLING CODE 8025-01-U