[Federal Register Volume 67, Number 199 (Tuesday, October 15, 2002)]
[Rules and Regulations]
[Pages 63537-63538]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-26109]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Rural Utilities Service

7 CFR Part 4284

RIN 0570-AA37


Rural Business Opportunity Grants; Definition of ``Rural and 
Rural Area''

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Business-Cooperative Service (RBS) revises its 
regulation to amend the definition of rural and rural area. This action 
is needed to comply with the amendment to Section 343(a) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)) made by 
Section 6020 of the Farm Security and Rural Investment Act of 2002. The 
intended effect of this action is to provide a consistent definition of 
rural and rural area for programs administered by RBS under the Rural 
Community Advancement Program. This action will result in additional 
eligible areas and demand for the RBOG Program.

EFFECTIVE DATE: October 15, 2002.

FOR FURTHER INFORMATION CONTACT: Amy Cavanaugh, Rural Development 
Specialist, Specialty Lenders Division, Rural Business-Cooperative 
Service, U.S. Department of Agriculture, STOP 3225, 1400 Independence 
Ave., SW., Washington, DC 20250, Telephone (202) 690-2516. The TDD 
number is (800) 877-8339 or (202) 708-9300.

SUPPLEMENTARY INFORMATION:

Classification

    This rule has been determined to be non-significant under Executive 
Order 12866 and was reviewed by the Office of Management and Budget 
(OMB).

Programs Affected

    The Catalog of Federal Domestic Assistance number for the program 
impacted by this action is 10.773, Rural Business Opportunity Grants.

Paperwork Reduction Act

    There are no reporting and recordkeeping requirements associated 
with this final rule.

Intergovernmental Review

    The Rural Business Opportunity Grants Program is subject to the 
provisions of Executive Order 12372, which requires intergovernmental 
consultation with State and local officials. RBS will conduct

[[Page 63538]]

intergovernmental consultation in the manner delineated in RD 
Instruction 1940-J, ``Intergovernmental Review of Rural Development 
Programs and Activities,'' and in the notice related to 7 CFR part 
3015, subpart V (48 FR 29115, June 24, 1983).

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
602), the undersigned has determined and certified by signature of this 
document that this rule will not have a significant economic impact on 
a substantial number of small entities. New provisions included in this 
rule will not impact a substantial number of small entities to a 
greater extent than large entities. Therefore, a regulatory flexibility 
analysis was not performed.

Civil Justice Reform

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. In accordance with this rule: (1) All State and local 
laws and regulations that are in conflict with this rule will be 
preempted, (2) no retroactive effect will be given to this rule, and 
(3) administrative proceedings in accordance with 7 CFR part 11 must be 
exhausted before bringing suit in court challenging action taken under 
this rule, unless those regulations specifically allow bringing suit at 
an earlier time.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' RBS has determined that this 
action does not constitute a major Federal action significantly 
affecting the quality of the human environment, and, in accordance with 
the National Environmental Policy Act of 1969, Pub. L 91-190, an 
Environmental Impact Statement is not required.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub. 
L. 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, RBS 
must prepare a written statement, including a cost-benefit analysis, 
for proposed and final rules with ``Federal mandates'' that may result 
in expenditures to State, local or tribal governments, in the 
aggregate, or to the private sector of $100 million or more in any 1 
year. When such a statement is needed for a rule, section 205 of UMRA 
generally requires RBS to identify and consider a reasonable number of 
regulatory alternatives and adopt the least costly, more cost-
effective, or least burdensome alternative that achieves the objectives 
of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of title II of the UMRA) for State, local, and tribal 
governments or the private sector. Thus, this rule is not subject to 
the requirements of sections 202 and 205 of UMRA.

Executive Order 13132, Federalism

    It has been determined under Executive Order 13132, Federalism, 
that this rule does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The provisions 
contained in this rule will not have a substantial direct effect on 
States or their political subdivisions or on the distribution of power 
and responsibilities among the various levels of government.

Background

    This regulatory package is an initiative mandated from Congress to 
provide a consistent definition of rural and rural area for programs 
administered by RBS under the Rural Community Advancement Program. This 
action will increase eligible areas and demand for the Rural Business 
Opportunity Grants Program by amending the definition of rural and 
rural areas. The current definition of rural and rural areas limits 
eligible areas to any area of a State that is not within the boundaries 
of a city with a population in excess of 10,000 inhabitants. The 
amended definition will increase the eligible area to 50,000 or less 
inhabitants.

List of Subjects in 7 CFR Part 4284

    Business and industry, Economic development, Grant programs--
Housing and community development, Rural areas.

    Accordingly, Chapter XLII, title 7, of the Code of Federal 
Regulations is amended as follows:

PART 4284--GRANTS

    1. The authority citation for part 4284 is revised to read as 
follows:

    Authority: 5 U.S.C. 301, 7 U.S.C. 1989, 7 U.S.C. 1991, 16 U.S.C. 
1005.

Subpart G--Rural Business Opportunity Grants

    2. Section 4284.603 is amended by revising the definition of 
``rural and rural area'' to read as follows:


Sec.  4284.603  Definitions.

* * * * *
    Rural and rural area. Any area other than a city or town that has a 
population of greater than 50,000 inhabitants including the urbanized 
area contiguous and adjacent to such a city or town. The population 
figure used must be in accordance with the latest decennial census of 
the United States.
* * * * *

    Dated: October 4, 2002.
Thomas C. Dorr,
Under Secretary, Rural Development.
[FR Doc. 02-26109 Filed 10-11-02; 8:45 am]
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