[Federal Register Volume 67, Number 156 (Tuesday, August 13, 2002)]
[Proposed Rules]
[Pages 52633-52641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20358]


=======================================================================
-----------------------------------------------------------------------

SMALL BUSINESS ADMINISTRATION

13 CFR Part 121

RIN 3245-AE99


Small Business Size Standards; Size Standards by 2002 North 
American Industry Classification System

AGENCY: Small Business Administration (SBA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The U.S. Small Business Administration (SBA) proposes to amend 
its Small Business Size Regulations by incorporating the Office of 
Management and Budget's (OMB) 2002 modifications of the North American 
Industry Classification System (NAICS) into its table of small business 
size standards. These modifications are limited to industries in six 
(6) NAICS Sectors. The modifications result in a small number of size 
standard changes to certain NAICS activities.
    SBA believes that the subject of this proposed rule is 
noncontroversial and routine, and SBA anticipates no adverse comments 
to this proposal. Therefore, SBA is publishing concurrently in this 
issue of the Federal Register a direct final rule to achieve the same 
result, that is, to modify its Small Business Size Regulations as 
proposed here.

DATES: SBA must receive comments to this proposed rule on or before 
September 12, 2002.

ADDRESSES: Address all comments concerning this rule to Gary M. 
Jackson, Assistant Administrator for Size Standards, Office of Size 
Standards, 409 3rd Street, SW., Washington, DC 20416, via email to 
[email protected], or via facsimile, (202) 205-6390. SBA will make 
all public comments available to any person or concern upon request.

FOR FURTHER INFORMATION CONTACT: Carl Jordan, Office of Size Standards, 
at (202) 205-6618 or [email protected].

SUPPLEMENTARY INFORMATION: SBA adopted NAICS industry definitions as a 
basis for its table of small business size standards effective October 
1, 2000. The final rule was published in the Federal Register on May 5, 
2000 (65 FR 30836) and states the SBA Administrator's determination 
that the industry descriptions in NAICS shall be the basis for small 
business size standards.
    OMB restructured and modified parts of NAICS effective January 1, 
2002. This rule both incorporates the restructuring and modifications 
into SBA's table of size standards. NAICS 2002 is the same as NAICS 
1997 for sixteen of the twenty industry sectors. Construction and 
wholesale trade are substantially changed. NAICS 2002 also modified a 
number of retail trade classifications and the organization of the 
information sector.
    13 CFR 121.101(b) states ``NAICS is described in the North American 
Industry Classification Manual--United States, 1997 * * *.'' At the 
time SBA published the final rule in the Federal Register, the only 
description of NAICS available was the NAICS 1997 manual. However, with 
OMB's 2002 modification of NAICS 1997, SBA believes that retaining a 
definition in its regulations based on a particular year is confusing 
and inconsistent with the

[[Page 52634]]

SBA Administrator's determination in the May 5, 2000, Federal Register 
notice, which does not refer to any specific year.

How SBA Arrived at the Size Standards for NAICS 2002 Industries

    On October 22, 1999, SBA published in the Federal Register (64 FR 
57188) a proposed rule to establish a new table of small business size 
standards based on NAICS. SBA developed guidelines to transition from 
the Standard Industrial Classification System to NAICS. The guidelines 
were intended to minimize the impact on SBA's small business size 
standards. Table A, below, lists those guidelines. SBA received no 
negative comments to the guidelines specified in the proposed rule. 
Because the guidelines produced the desired results and received public 
acceptance, SBA published its final rule on May 5, 2000 (corrected on 
September 5, 2000, 65 FR 53533), establishing a new table of size 
standards based on NAICS without change from its proposed rule. For 
purposes of adopting NAICS 2002, SBA is applying the same guidelines in 
this rule.

                                 Table A
------------------------------------------------------------------------
 If the NAICS 2002 industry is composed  The size standard for the NAICS
                  of:                           industry would be:
------------------------------------------------------------------------
1. One NAICS 1997 industry or part of    The same size standard as for
 one NAICS 1997 industry                  the NAICS 1997 industry or
                                          part.
2. More than one NAICS 1997 industry;    The same size standard as for
 parts of more than one NAICS 1997        those NAICS 1997 industries or
 industry; or one more NAICS 1997         parts of NAICS 1997
 industry and part(s) of one or more      industries.
 NAICS 1997 industry,
      and..............................
  they all have the same size standard.
3. More than one NAICS 1997 industry;    The same size standard as for
 parts of more than one NAICS 1997        the NAICS 1997 industry or
 industry; or one or more NAICS 1997      NAICS 1997 industry part(s)
 industry and part(s) of one or more      that most closely matches the
 NAICS 1997 industry,                     economic activity described by
  and..................................   the NAICS 2002 industry.
  they do not all have the same size
 standard..
4. One or more parts of an NAICS 1997    The same size standard as for
 industry for which SBA has established   that specific NAICS 1997
 specific size standards (i.e., further   industry part.
 segmented).
5. One or more NAICS 1997 industries     SBA will (a) apply a size
 and/or parts of NAICS 1997 industries    standard measure (e.g., number
 that were categorized broadly under      of employees, annual receipts)
 the NAICS system as Services, Retail     typical of the NAICS Sector;
 Trade, Wholesale Trade or                and (b) apply the
 Manufacturing, but are now categorized   corresponding ``anchor'' size
 differently under NAICS.                 standard. The ``anchor'' size
                                          standards are $6 million
                                          [effective February 22, 2002]
                                          for Services and Retail Trade,
                                          500 employees for
                                          Manufacturing and 100
                                          employees for Wholesale Trade
                                          (except for Federal
                                          procurement programs, where
                                          the standard is 500 employees
                                          under the non-manufacturer
                                          rule).
------------------------------------------------------------------------

Changes in Size Standards

    Applying the guidelines to the NAICS 2002 restructuring and 
modifications results in a limited number of changes to current small 
business size standards. Specifically, there are 12 economic activities 
within nine (9) NAICS 1997 industries that reflect a size standard 
change when related to NAICS 2002. Eight (8) of those 12 economic 
activities increase, three (3) decrease, and for the remaining activity 
the basis for the size standard changes from annual receipts to number 
of employees. For the balance of the NAICS 1997 codes and their size 
standards, there are no size standards changes as a result of the NAICS 
2002 reclassifications and recategorizations.
    For complete information on the relationship between NAICS 1997 and 
NAICS 2002, please see the U.S. Bureau of the Census (Census Bureau) 
Web site at 
http://www.census.gov/epcd/naics02/ 
That Web site contains complete information on the establishment and 
implementation of NAICS 2002, including the January 16, 2001 (66 FR 
3825) Federal Register notice of final decision to adopt NAICS 2002. 
The Census Bureau's Web site also contains three correspondence tables: 
(1) 2002 NAICS-US matched to 1997 NAICS-US; (2) 1997 NAICS-US matched 
to 2002 NAICS-US; and (3) 2002 NAICS-US matched to 1987 Standard 
Industrial Classification.
    Table B below identifies the twelve (12) NAICS 1997 industries and 
economic activities that have revised size standards in the new table 
based on industries as they are described in NAICS 2002.

                                                     Table B
----------------------------------------------------------------------------------------------------------------
            NAICS 1997                                                 NAICS 2002
----------------------------------                          --------------------------------
                    Size std. ($      NAICS 1997 activity                     Size std. ($   NAICS 2002 industry
       Code           million)                                    Code          million)
----------------------------------------------------------------------------------------------------------------
213112...........            $6.0  Construction of Field             237120           $28.5  Oil and Gas
                                    Gathering Lines on a                                      Pipeline and
                                    Contract Basis (one                                       Related Structures
                                    activity of the Support                                   Construction.
                                    Activities for Oil and
                                    Gas Operations
                                    Industry).
213112...........             6.0  Site Preparation and              238910            12.0  Site Preparation
                                    Related Construction                                      Contractors.
                                    Activities on a
                                    Contract Basis (one
                                    activity of the Support
                                    Activities for Oil and
                                    Gas Operations
                                    Industry).
213113...........             6.0  Site Preparation and              238910            12.0  Site Preparation
                                    Related Construction                                      Contractors.
                                    Activities on a
                                    Contract Basis (one
                                    activity of the Support
                                    Activities for Coal
                                    Mining Industry).
213114...........             6.0  Site Preparation and              238910            12.0  Site Preparation
                                    Related Construction                                      Contractors.
                                    Activities on a
                                    Contract Basis (one
                                    activity of the Support
                                    Activities for Metal
                                    Mining Industry).

[[Page 52635]]

 
213115...........             6.0  Site Preparation and              238910            12.0  Site Preparation
                                    Related Construction                                      Contractors.
                                    Activities on a
                                    Contract Basis (one
                                    activity of the Support
                                    Activities for
                                    Nonmetallic Minerals
                                    Industry).
234990...........            28.5  Right-of-way Clearing             238910            12.0  Site Preparation
                                    and Line Slashing,                                        Contractors.
                                    Blasting, Trenching,
                                    and Equipment Rental
                                    (Except Cranes) With
                                    Operator (three
                                    activities of the All
                                    Other Heavy
                                    Construction Industry).
234990...........            28.5  Rental of Cranes With             238990            12.0  All Other Specialty
                                    Operator (one activity                                    Trade Contractors.
                                    of the All Other Heavy
                                    Construction Industry).
235810...........            12.0  Water Well Drilling               237110            28.5  Water and Sewer
                                    Contractors (Entire                                       Line and Related
                                    Industry).                                                Structures
                                                                                              Construction.
235990...........            12.0  Indoor Swimming Pools             236220            28.5  Commercial and
                                    (one activity if the                                      Institutional
                                    All Other Special Trade                                   Building
                                    Contractors Industry).                                    Construction.
235990...........            12.0  Anchored Earth Retention          237990            28.5  Other Heavy and
                                    Contractors (one                                          Civil Engineering
                                    activity if the All                                       Construction.
                                    Other Special Trade
                                    Contractors Industry).
514199...........             6.0  Internet Broadcasting             516110           (\1\)  Internet Publishing
                                    (one activity of the                                      and Broadcasting.
                                    All Other Information
                                    Services Industry).
561720...........            14.0  Cleaning Buildings                238990            12.0  All Other Specialty
                                    During and Immediately                                    Trade Contractors.
                                    after Construction (one
                                    activity of the
                                    Janitorial Services
                                    Industry).
----------------------------------------------------------------------------------------------------------------
\1\ 500 Emp.

    The 12 activities with a size standard change moved to seven (7) 
NAICS 2002 industries. Tables 3 through 9 show the composition of these 
NAICS 2002 industries and discuss the basis for selecting their size 
standards.

1. NAICS 236220, Commercial and Institutional Building Construction, 
$28.5 Million

    This industry is the same as NAICS 233320 (NAICS 1997) with the 
addition of several activities from parts of three other construction 
(NAICS 1997) industries (see Table 1). Only one activity within the 
revised industry did not have a size standard of $28.5 million under 
NAICS 1997. The activities of the previously defined industry continue 
to represent most activities in the industry. Therefore, the $28.5 
million size standard for this industry is retained.

                                 Table 1
------------------------------------------------------------------------
                                            NAICS 1997     Size standard
           NAICS 1997 activity            code  (*=part)    ($ million)
------------------------------------------------------------------------
Barrack and Dormitory Construction (one           233220           $28.5
 activity of the Multifamily Housing
 Construction Industry).................
Grain Elevators, Dry Cleaning Plants,            *233310            28.5
 and Manufacturing and Industrial
 Warehouses (activities of the
 Manufacturing and Industrial Building
 Construction Industry).................
Commercial and Institutional Building            *233320            28.5
 Construction (entire industry).........
Indoor Swimming Pools (one activity of           *235990            12.0
 the All Other Special Trade Contractors
 Industry)..............................
------------------------------------------------------------------------

2. NAICS 237110, Water and Sewer Line and Related Structures 
Construction, $28.5 Million

    This industry is the same as NAICS 234910 (NAICS 1997) with the 
addition of several heavy construction related activities and the Water 
Well Drilling industry (see Table 2). Water and sewer line activities 
constituted a large majority of the previously defined industry. The 
inclusion of the Water Well Drilling industry accounts for less than 15 
percent of the revised industry. The activities of the previously 
defined industry continue to represent most activities in the industry. 
Therefore, the $28.5 million size standard for this industry is 
retained.

                                 Table 2
------------------------------------------------------------------------
                                            NAICS 1997     Size standard
           NAICS 1997 activity            code  (*=part)    ($ million)
------------------------------------------------------------------------
Water/Sewer Pumping Stations, Sewage              234910           $28.5
 Collection and Disposal Lines, Storm
 Sewers, Sewer/Water Mains and Lines,
 Water Storage Tanks and Towers, and
 Construction Management of these
 Projects (activities of the Water,
 Sewer, and Pipeline Construction
 Industry)..............................
Irrigation Systems, Sewage Treatment and         *234990            28.5
 Water Treatment Plants, Construction
 Management of these Projects
 (activities of the All Other Heavy
 Construction Industry).................
Water Well Drilling Contractors (entire           235810            12.0
 industry)..............................
------------------------------------------------------------------------


[[Page 52636]]

3. NAICS 237120, Oil and Gas Pipeline and Related Structures 
Construction, $28.5 Million

    This is a new industry under the Heavy and Civil Engineering 
Subsector. It is comprised of activities from parts of three NAICS 1997 
industries (see Table 3). All but one activity comprising this new 
industry had a $28.5 million size standard under NAICS 1997. Therefore, 
a $28.5 million size standard is adopted for this industry.

                                 Table 3
------------------------------------------------------------------------
                                            NAICS 1997     Size standard
           NAICS 1997 activity            code  (*=part)    ($ million)
------------------------------------------------------------------------
Construction of Field Gathering Lines on         *213112            $6.0
 a Contract Basis (one activity of the
 Support Activities for Oil and Gas
 Operations Industry)...................
Gas and Oil Pumping Stations, Gas and            *234910            28.5
 Oil Pipeline Construction, Gas Mains,
 Gas and Oil Storage Tank Construction,
 and Construction Management of these
 Projects (activities of the Water,
 Sewer, and Pipeline Construction
 Industry)..............................
Petrochemical Plants, Refineries, and            *234930            28.5
 Construction Management of these
 Projects (activities of the Industrial
 Nonbuilding Structure Construction
 Industry)..............................
------------------------------------------------------------------------

4. NAICS 237990, Other Heavy and Civil Engineering Construction, $28.5 
Million

    This industry is the same as NAICS 234990 (NAICS 1997) with a few 
minor changes (see Table 4). Two activities of parts of two 
construction industries were added to the previous NAICS 1997 industry 
and several activities were transferred from NAICS 234990 to other 
construction industries. Only one activity had a size standard 
different than $28.5 million under NAICS 1997. The activities of the 
previously defined industry continue to represent most activities in 
the industry. Therefore, the $28.5 million size standard for this 
industry is retained.

                                 Table 4
------------------------------------------------------------------------
                                            NAICS 1997     Size standard
           NAICS 1997 activity            code  (*=part)    ($ million)
------------------------------------------------------------------------
Tunnel Construction (one activity of the         *234910           $28.5
 Bridge and Tunnel Construction
 Industry)..............................
All Other Heavy Construction (Except              234990            28.5
 Waste Disposal Plant Construction,
 Irrigation Systems, Sewage Treatment
 and Water Treatment Plants, Right-of-
 way Clearing and Line Slashing,
 Blasting, Trenching, and Equipment
 Rental with Operator)..................
Anchored Earth Retention Contractors             *235810            12.0
 (one activity of the Other Special
 Trade Contractors Industry)............
------------------------------------------------------------------------

5. NAICS 238910, Site Preparation Contractors, $12.0 Million

    This is a revised industry under the Special Trade Contractors 
Subsector. It is comprised predominately of two Special Trade 
Contractors industries. In addition, the revised industry includes one 
activity from parts of four mining support industries, several 
activities from part of one heavy construction industry, and several 
activities from parts of two other Special Trade Contractors industries 
(see Table 5). Because most of the activities of the revised industry 
are from NAICS 1997 Special Trade Contractors industries, a $12.0 
million size standard is adopted for this industry.

                                 Table 5
------------------------------------------------------------------------
                                            NAICS 1997     Size standard
           NAICS 1997 activity            code  (*=part)    ($ million)
------------------------------------------------------------------------
Site Preparation and Related                     *213112            $6.0
 Construction Activities on a Contract
 Basis (one activity of the Support
 Activities for Oil and Gas Operations
 Industry)..............................
Site Preparation and Related                     *213113             6.0
 Construction Activities on a Contract
 Basis (one activity of the Support
 Activities for Coal Mining Industry)...
Site Preparation and Related                     *213114             6.0
 Construction Activities on a Contract
 Basis (one activity of the Support
 Activities for Metal Mining Industry)..
Site Preparation and Related                     *213115             6.0
 Construction Activities on a Contract
 Basis (one activity of the Support
 Activities for Nonmetallic Minerals
 (except Fuels) Industry................
Right-of-way Clearing and Line Slashing,         *234990            28.5
 Blasting, Trenching, and Equipment
 Rental (except cranes) with Operator
 (Activities of the All Other Heavy
 Construction Industry).................
Septic Tank, Cesspool, and Dry Well              *235110            12.0
 Construction Contractors (Activities of
 the Plumbing, Heating, and Air-
 Conditioning Contractors Industry).....
Excavation Contractors (Entire Industry)          235930            12.0
Wrecking and Demolition Contractors               235940            12.0
 (Entire Industry)......................
Dewatering Contractors, Core Drilling            *235990            12.0
 for Construction, and Test Drilling for
 Construction (Activities of the All
 Other Special Trade Contractors
 Industry)..............................
------------------------------------------------------------------------

6. NAICS 238990, All Other Specialty Trade Contractors, $12.0 Million

    This industry is the same as NAICS 235990 under NAICS 1997 with a 
few minor changes. Several activities of the previous NAICS 1997 
industry transferred to other construction industries and three 
activities from parts of three

[[Page 52637]]

other industries were incorporated (see Table 6). The activities of the 
previously defined industry continue to represent most activities in 
the industry. Therefore, the $12.0 million size standard is retained.

                                 Table 6
------------------------------------------------------------------------
                                            NAICS 1997     Size standard
           NAICS 1997 activity            code  (*=part)    ($ million)
------------------------------------------------------------------------
Rental of Cranes with Operator (one              *234990           $28.5
 activity of the All Other Heavy
 Construction Industry).................
Residential and Commercial Asphalt,              *235710            12.0
 Brick, and Concrete Paving) (one
 activity of the Concrete Contractors
 Industry)..............................
All Other Special Trade Contractors              *235990            12.0
 (except Indoor Swimming Pools, Earth
 Retention Contractors, Forming
 Contractors, Ornamental Metal Work,
 Building Equipment Contractors,
 Building Finishing Contractors,
 Dewatering Contractors, Core Drilling
 for Construction, and Test Boring for
 Construction)..........................
Cleaning Buildings During and                    *561720            14.0
 Immediately after Construction (one
 activity of the Janitorial Services
 Industry)..............................
------------------------------------------------------------------------

7. NAICS 516110, Internet Publishing and Broadcasting, 500 Employees

    This is a new industry under NAICS 2002. It is comprised of 
activities related to the publishing of materials via the Internet (see 
Table 7). All but one of these activities had a 500 employee size 
standard under NAICS 1997. Therefore, 500 employees is established for 
this industry because it represents the most prevalent size standard 
for the activities within this new industry.

                                 Table 7
------------------------------------------------------------------------
                                            NAICS 1997
           NAICS 1997 activity            code  (*=part)   Size standard
------------------------------------------------------------------------
Internet Newspaper Publishers (one               *511110  500 employees.
 activity of the Newspaper Publishers
 Industry)..............................
Internet Book Publishers (one activity           *511120  500 employees.
 of the Book Publishers Industry).......
Internet Periodical Publishers (one              *511130  500 employees.
 activity of the Periodical Publishers
 Industry)..............................
(Internet Directory Publishers (one              *511140  500 employees.
 activity of the Directory and Database
 Publishers Industry)...................
Internet Greeting Card Publishers (one           *511191  500 employees.
 activity of the Greeting Card
 Publishers Industry)...................
All Other Internet Publishers                    *511199  500 employees.
 (activities of the All Other Publishers
 Industry)..............................
Internet Broadcasting (one activity of           *514199   $6.0 million.
 the All Other Information Services
 Industry)..............................
------------------------------------------------------------------------

Alternatives to Adopting NAICS 2002 That SBA Considered

    SBA considered retaining the NAICS 1997 codes as the basis for 
small business size standards. However, SBA believes that doing so will 
lead to inconsistency with other Federal agencies that adopt NAICS 2002 
for their programs. More importantly, if SBA does not adopt NAICS 2002 
it will not be able to analyze and evaluate small business size 
standards adequately because available Census Bureau data based on 
NAICS 2002 industries will not be compatible with NAICS 1997 industry 
data. Without useful data SBA cannot properly analyze size standards 
and their effects on businesses.
    An alternative to not adopting NAICS 2002 as a basis for size 
standards is to adopt part(s) of NAICS 2002. SBA believes this 
alternative is impractical because of the inherent inconsistencies that 
would result in using industry definitions from two systems.

Consideration of Comments

    SBA will consider all comments submitted to this proposed rule. 
Commenters should address whether they agree SBA should adopt NAICS 
2002 and what they believe the impact on small businesses will be. SBA 
will carefully consider these comments prior to making a final decision 
on adopting the NAICS 2002.

Other Change

    SBA also proposes to make an administrative change to the heading 
of the size standards table. In the table titled ``Small Business Size 
Standards by NAICS Industry'' (13 CFR 121.201), SBA is removing 
``N.E.C. = Not Elsewhere Classified'' from the heading. ``N.E.C.'' is 
not used in NAICS because NAICS contains no unclassified industries, 
unlike the Standard Industrial Classification system.

Compliance With Executive Orders 12866, 12988, and 13132, the 
Paperwork Reduction Act (44 U.S.C. Ch. 35.) and the Regulatory 
Flexibility Act (5 U.S.C. 601-612)

    OMB has determined that this rule is not a ``significant'' 
regulatory action for purposes of Executive Order (E.O.) 12866. This 
rule incorporates the latest revisions of the NAICS, which is being 
used by SBA to identify industries in the economy for purposes of 
establishing small business size standards. As discussed in the 
preamble, the size standard of a limited number of activities will 
change as a result the NAICS revisions. Almost all businesses currently 
defined as small under the NAICS 1997 industries will continue to be 
small under the NAICS 2002 industries. The rule also affects Federal 
Government programs that provide a benefit for businesses. SBA welcomes 
comments describing the impact on small businesses of the size

[[Page 52638]]

standard changes resulting from this rule.
    Furthermore, SBA was made aware that some Federal Government 
programs had already begun to use, albeit improperly, the NAICS 2002 
codes and assigned small business size standards to them. SBA believes 
that these actions indicate that Federal agencies expect to use and 
will readily accept the NAICS 2002 codes.
    For purposes of E.O. 12988, SBA has determined that this rule is 
drafted, to the extent practicable, in accordance with the standards 
set forth in that order.
    For purposes of E.O. 13132, SBA has determined that this rule does 
not have any federalism implications warranting the preparation of a 
Federalism Assessment.
    For purposes of the Paperwork Reduction Act, 44 U.S.C. Ch. 35, SBA 
has determined that this rule does not impose any new reporting or 
recordkeeping requirements.
    When an agency promulgates a rule, the Regulatory Flexibility Act 
(5 U.S.C. 601-612) requires the agency to prepare a regulatory 
flexibility analysis describing the economic impact of the rule on 
small entities and alternatives that may minimize that impact. Section 
605 of the RFA allows an agency to certify a rule, in lieu of preparing 
an analysis, if the rulemaking is not expected to have a significant 
economic impact on a substantial number of small entities. SBA has 
determined that this rule as drafted, including the alternatives 
discussed in the supplementary information above, will not have a 
significant impact on a substantial number of small entities. OMB's 
modifications are the restructuring and recategorization of the 
construction and wholesale trade sectors, and a small number of 
industries in the retail and information sectors. The modifications 
result in size standards changes to a minimal number of activities 
within certain NAICS industries detailed above in the supplementary 
information, with little, if any, effect on small businesses. Those 
activities now relate to more appropriate NAICS codes.
    As part of OMB's restructuring of certain NAICS industries, a small 
number of specific activities within certain NAICS 1997 codes were 
classified within NAICS 2002 industries that have size standards 
different from what they had been in NAICS 1997. They are listed in 
Table B, above. These activities are very specialized, and the Census 
Bureau does not publish data on these activities upon which to 
precisely assess the impact on small businesses. SBA believes that the 
impact on small businesses is minimal because these activities 
represent minor components of the NAICS 1997 industries from which they 
are derived. Only NAICS 235810, Water Well Drilling Contractors, is 
reclassified in its entirety to an industry with a different size 
standard, namely NAICS 237110, Water and Sewer Line and Related 
Structures Construction. Based on 1997 Economic Census data, there were 
only four water well drilling contractors out of a total of 3,795 that 
had annual receipts between $12.0 million and $28.5 million. SBA does 
not consider this number of businesses affected by a size standard 
change to be substantial.

List of Subjects in 13 CFR Part 121

    Administrative practice and procedure, Government procurement, 
Government property, Grant programs--business, Loan programs--business, 
Reporting and recordkeeping requirements, Small businesses.

    For the reasons stated in the preamble, SBA amends part 121 of 
title 13 of the Code of Federal Regulations as follows:

PART 121--SMALL BUSINESS SIZE REGULATIONS

    1. The authority citation for part 121 continues to read as 
follows:

    Authority: 15 U.S.C. 632(a), 634(b)(6), 637(a), 644(c), and 
662(5); and Sec. 304, Pub. L. 103-403,108 Stat. 4175, 4188.

    2. Amend the first sentence of Sec. 121.101(b) to remove ``1997''.
    3. Amend Sec. 121.201 as follows:
    a. In the table ``Small Business Size Standards by NAICS 
Industry,'' remove the heading ``Description (N.E.C. = Not Elsewhere 
Classified)'' and add in its place ``NAICS U.S. industry title''.
    b. In the table ``Small Business Size Standards by NAICS 
Industry,'' remove the following three (3) Subsectors together with all 
entries within those Subsectors: Subsector 233--Building, Developing 
and General Contracting, Subsector 234--Heavy Construction, and 
Subsector 235--Special Trade Contractors, and add in their place the 
following:

             Small Business Size Standards by NAICS Industry
------------------------------------------------------------------------
                                                          Size standards
                                                           in number of
        NAICS codes           NAICS U.S. industry title    employees or
                                                            million of
                                                              dollars
------------------------------------------------------------------------
 
*                *                *                *                *
                                  *                *
------------------------------------------------------------------------
                Subsector 236--Construction of Buildings
------------------------------------------------------------------------
236115.....................  New Single-Family Housing             $28.5
                              Construction (except
                              Operative Builders).
236116.....................  New Multifamily Housing                28.5
                              Construction (except
                              Operative Builders).
236117.....................  New Housing Operative                  28.5
                              Builders.
236118.....................  Residential Remodelers.....            28.5
236210.....................  Industrial Building                    28.5
                              Construction.
236220.....................  Commercial and                         28.5
                              Institutional Building
                              Construction.
------------------------------------------------------------------------
         Subsector 237--Heavy and Civil Engineering Construction
------------------------------------------------------------------------
237110.....................  Water and Sewer Line and               28.5
                              Related Structures
                              Construction.
237120.....................  Oil and Gas Pipeline and               28.5
                              Related Structures
                              Construction.
237130.....................  Power and Communication                28.5
                              Line and Related
                              Structures Construction.
237210.....................  Land Subdivision...........             6.0
237310.....................  Highway, Street, and Bridge            28.5
                              Construction.
237990.....................  Other Heavy and Civil                  28.5
                              Engineering Construction.

[[Page 52639]]

 
Except.....................  Except Dredging and Surface          17.0 2
                              Cleanup Activities.
------------------------------------------------------------------------
               Subsector 238--Specialty Trade Contractors
------------------------------------------------------------------------
238110.....................  Poured Concrete Foundation             12.0
                              and Structure Contractors.
238120.....................  Structural Steel and                   12.0
                              Precast Concrete
                              Contractors.
238130.....................  Framing Contractors........            12.0
238140.....................  Masonry Contractors........            12.0
238150.....................  Glass and Glazing                      12.0
                              Contractors.
238160.....................  Roofing Contractors........            12.0
238170.....................  Siding Contractors.........            12.0
238190.....................  Other Foundation,                      12.0
                              Structure, and Building
                              Exterior Contractors.
238210.....................  Electrical Contractors.....            12.0
238220.....................  Plumbing, Heating, and Air             12.0
                              Conditioning Contractors.
238290.....................  Other Building Equipment               12.0
                              Contractors.
238310.....................  Drywall and Insulation                 12.0
                              Contractors.
238320.....................  Painting and Wall Covering             12.0
                              Contractors.
238330.....................  Flooring Contractors.......            12.0
238340.....................  Tile and Terrazzo                      12.0
                              Contractors.
238350.....................  Finish Carpentry                       12.0
                              Contractors.
238390.....................  Other Building Finishing               12.0
                              Contractors.
238910.....................  Site Preparation                       12.0
                              Contractors.
238990.....................  All Other Specialty Trade              12.0
                              Contractors.
Except.....................  Base Housing Maintenance 13         12.0 13
------------------------------------------------------------------------

    c. In the table ``Small Business Size Standards by NAICS 
Industry,'' remove the following two (2) Subsectors together with all 
entries within those Subsectors: Subsector 421--Wholesale Trade--
Durable Goods and Subsector 422--Wholesale Trade--Nondurable Goods, and 
add in their place the following:

 
------------------------------------------------------------------------
                                                          Size standards
                                                           in number of
        NAICS codes           NAICS U.S. industry title    employees or
                                                            million of
                                                              dollars
------------------------------------------------------------------------
           Subsector 423--Merchant Wholesalers, Durable Goods
------------------------------------------------------------------------
423110.....................  Automobile and Other Motor              100
                              Vehicle Merchant
                              Wholesalers.
423120.....................  Motor Vehicle Supplies and              100
                              New Parts Merchant
                              Wholesalers.
42313......................  Tire and Tube Merchant                  100
                              Wholesalers.
423140.....................  Motor Vehicle Parts (Used)              100
                              Merchant Wholesalers.
423210.....................  Furniture Merchant                      100
                              Wholesalers.
423220.....................  Home Furnishing Merchant                100
                              Wholesalers.
423310.....................  Lumber, Plywood, Millwork,              100
                              and Wood Panel Merchant
                              Wholesalers.
423320.....................  Brick, Stone, and Related               100
                              Construction Material
                              Merchant Wholesalers.
423330.....................  Roofing, Siding, and                    100
                              Insulation Material
                              Merchant Wholesalers.
423390.....................  Other Construction Material             100
                              Merchant Wholesalers.
423410.....................  Photographic Equipment and              100
                              Supplies Merchant
                              Wholesalers.
423420.....................  Office Equipment Merchant               100
                              Wholesalers.
423430.....................  Computer and Computer                   100
                              Peripheral Equipment and
                              Software Merchant
                              Wholesalers.
423440.....................  Other Commercial Equipment              100
                              Merchant Wholesalers.
423450.....................  Medical, Dental, and                    100
                              Hospital Equipment and
                              Supplies Merchant
                              Wholesalers.
423460.....................  Ophthalmic Goods Merchant               100
                              Wholesalers.
423490.....................  Other Professional                      100
                              Equipment and Supplies
                              Merchant Wholesalers.
423510.....................  Metal Service Centers and               100
                              Other Metal Merchant
                              Wholesalers.
423520.....................  Coal and Other Mineral and              100
                              Ore Merchant Wholesalers.
423610.....................  Electrical Apparatus and                100
                              Equipment, Wiring
                              Supplies, and Related
                              Equipment Merchant
                              Wholesalers.
423620.....................  Electrical and Electronic               100
                              Appliance, Television, and
                              Radio Set Merchant
                              Wholesalers.
423690.....................  Other Electronic Parts and              100
                              Equipment Merchant
                              Wholesalers.
423710.....................  Hardware Merchant                       100
                              Wholesalers.
423720.....................  Plumbing and Heating                    100
                              Equipment and Supplies
                              (Hydronics) Merchant
                              Wholesalers.
423730.....................  Warm Air Heating and Air-               100
                              Conditioning Equipment and
                              Supplies Merchant
                              Wholesalers.
423740.....................  Refrigeration Equipment and             100
                              Supplies Merchant
                              Wholesalers.
423810.....................  Construction and Mining                 100
                              (except Oil Well)
                              Machinery and Equipment
                              Merchant Wholesalers.
423820.....................  Farm and Garden Machinery               100
                              and Equipment Merchant
                              Wholesalers.
423830.....................  Industrial Machinery and                100
                              Equipment Merchant
                              Wholesalers.

[[Page 52640]]

 
423840.....................  Industrial Supplies                     100
                              Merchant Wholesalers.
423850.....................  Service Establishment                   100
                              Equipment and Supplies
                              Merchant Wholesalers.
423860.....................  Transportation Equipment                100
                              and Supplies (except Motor
                              Vehicle) Merchant
                              Wholesalers.
423910.....................  Sporting and Recreational               100
                              Goods and Supplies
                              Merchant Wholesalers.
423920.....................  Toy and Hobby Goods and                 100
                              Supplies Merchant
                              Wholesalers.
423930.....................  Recyclable Material                     100
                              Merchant Wholesalers.
423940.....................  Jewelry, Watch, Precious                100
                              Stone, and Precious Metal
                              Merchant Wholesalers.
423990.....................  Other Miscellaneous Durable             100
                              Goods Merchant Wholesalers.
------------------------------------------------------------------------
          Subsector 424--Merchant Wholesalers, Nondurable Goods
------------------------------------------------------------------------
424110.....................  Printing and Writing Paper              100
                              Merchant Wholesalers.
424120.....................  Stationery and Office                   100
                              Supplies Merchant
                              Wholesalers.
424130.....................  Industrial and Personal                 100
                              Service Paper Merchant
                              Wholesalers.
424210.....................  Drugs and Druggists'                    100
                              Sundries Merchant
                              Wholesalers.
424310.....................  Piece Goods, Notions, and               100
                              Other Dry Goods Merchant
                              Wholesalers.
424320.....................  Men's and Boys' Clothing                100
                              and Furnishings Merchant
                              Wholesalers.
424330.....................  Women's, Children's, and                100
                              Infants' Clothing and
                              Accessories Merchant
                              Wholesalers.
424340.....................  Footwear Merchant                       100
                              Wholesalers.
424410.....................  General Line Grocery                    100
                              Merchant Wholesalers.
424420.....................  Packaged Frozen Food                    100
                              Merchant Wholesalers.
424430.....................  Dairy Product (except Dried             100
                              or Canned) Merchant
                              Wholesalers.
424440.....................  Poultry and Poultry Product             100
                              Merchant Wholesalers.
424450.....................  Confectionery Merchant                  100
                              Wholesalers.
424460.....................  Fish and Seafood Merchant               100
                              Wholesalers.
424470.....................  Meat and Meat Product                   100
                              Merchant Wholesalers.
424480.....................  Fresh Fruit and Vegetable               100
                              Merchant Wholesalers.
424490.....................  Other Grocery and Related               100
                              Products Merchant
                              Wholesalers.
424510.....................  Grain and Field Bean                    100
                              Merchant Wholesalers.
424520.....................  Livestock Merchant                      100
                              Wholesalers.
424590.....................  Other Farm Product Raw                  100
                              Material Merchant
                              Wholesalers.
424610.....................  Plastics Materials and                  100
                              Basic Forms and Shapes
                              Merchant Wholesalers.
424690.....................  Other Chemical and Allied               100
                              Products Merchant
                              Wholesalers.
424710.....................  Petroleum Bulk Stations and             100
                              Terminals.
424720.....................  Petroleum and Petroleum                 100
                              Products Merchant
                              Wholesalers (except Bulk
                              Stations and Terminals).
424810.....................  Beer and Ale Merchant                   100
                              Wholesalers.
424820.....................  Wine and Distilled                      100
                              Alcoholic Beverage
                              Merchant Wholesalers.
424910.....................  Farm Supplies Merchant                  100
                              Wholesalers.
424920.....................  Book, Periodical, and                   100
                              Newspaper Merchant
                              Wholesalers.
424930.....................  Flower, Nursery Stock, and              100
                              Florists' Supplies
                              Merchant Wholesalers.
424940.....................  Tobacco and Tobacco Product             100
                              Merchant Wholesalers.
424950.....................  Paint, Varnish, and                     100
                              Supplies Merchant
                              Wholesalers.
424990.....................  Other Miscellaneous                     100
                              Nondurable Goods Merchant
                              Wholesalers.
------------------------------------------------------------------------
   Subsector 425--Wholesale Electronic Markets and Agents and Brokers
------------------------------------------------------------------------
425110.....................  Business to Business                    100
                              Electronic Markets.
425120.....................  Wholesale Trade Agents and              100
                              Brokers.
------------------------------------------------------------------------

    d. In the table ``Small Business Size Standards by NAICS 
Industry,'' remove the entry 452110, and add in its place the 
following:

 
------------------------------------------------------------------------
                                                          Size standards
                                                           in number of
        NAICS codes           NAICS U.S. industry title    employees or
                                                            million of
                                                              dollars
------------------------------------------------------------------------
452111.....................  Department Stores (except             $23.0
                              Discount Department
                              Stores).
452112.....................  Discount Department Stores.            23.0
------------------------------------------------------------------------

    e. In the table ``Small Business Size Standards by NAICS 
Industry,'' remove the entry 454110, and add in its place the 
following:

[[Page 52641]]



 
------------------------------------------------------------------------
                                                          Size standards
                                                           in number of
        NAICS codes           NAICS U.S. industry title    employees or
                                                            million of
                                                              dollars
------------------------------------------------------------------------
454111.....................  Electronic Shopping........           $21.0
454112.....................  Electronic Auctions........            21.0
454113.....................  Mail-Order Houses..........            21.0
------------------------------------------------------------------------

    f. In the table ``Small Business Size Standards by NAICS 
Industry,'' revise the heading ``Subsector 511--Publishing Industries'' 
to read ``Subsector 511--Publishing Industries (except internet).''
    g. In the table ``Small Business Size Standards by NAICS 
Industry,'' in NAICS 511140 revise ``Database and Directory 
Publishers'' to read ``Directory and Mailing List Publishers.''
    h. In the table ``Small Business Size Standards by NAICS 
Industry,'' remove the following two (2) Subsectors together with all 
entries within those Subsectors: Subsector 513--Broadcasting and 
Telecommunications and Subsector 514 Information Services and Data 
Processing Services, and add in their place the following:

 
------------------------------------------------------------------------
                                                          Size standards
                                                           in number of
        NAICS codes           NAICS U.S. industry title    employees or
                                                            million of
                                                              dollars
------------------------------------------------------------------------
              Subsector 515--Broadcasting (except Internet)
------------------------------------------------------------------------
515111.....................  Radio Networks.............            $6.0
515112.....................  Radio Stations.............             6.0
515120.....................  Television Broadcasting....            12.0
515210.....................  Cable and Other                        12.5
                              Subscription Programming.
------------------------------------------------------------------------
           Subsector 516--Internet Publishing and Broadcasting
------------------------------------------------------------------------
516110.....................  Internet Publishing and                12.5
                              Broadcasting.
------------------------------------------------------------------------
                    Subsector 517--Telecommunications
------------------------------------------------------------------------
517110.....................  Wired Telecommunications              1,500
                              Carriers.
517211.....................  Paging.....................           1,500
517212.....................  Cellular and Other Wireless           1,500
                              Telecommunications.
517310.....................  Telecommunications                    1,500
                              Resellers.
517410.....................  Satellite                              12.5
                              Telecommunications.
517510.....................  Cable and Other Program                12.5
                              Distribution.
517910.....................  Other Telecommunications...            21.0
------------------------------------------------------------------------
 Subsector 518--Internet Service Providers, Web Search Portals, and Data
                           Processing Services
------------------------------------------------------------------------
518111.....................  Internet Service Providers.            21.0
518112.....................  Web Search Portals.........             6.0
518210.....................  Data Processing, Hosting,              21.0
                              and Related Services.
------------------------------------------------------------------------
    Subsector 519--Information Services and Data Processing Services
------------------------------------------------------------------------
519110.....................  News Syndicates............             6.0
519120.....................  Libraries and Archive......             6.0
519190.....................  All Other Information                   6.0
                              Services.
------------------------------------------------------------------------


    Dated: August 5, 2002.
Hector V. Barreto,
Administrator.
[FR Doc. 02-20358 Filed 8-12-02; 8:45 am]
BILLING CODE 8025-01-P