[Federal Register Volume 73, Number 8 (Friday, January 11, 2008)]
[Rules and Regulations]
[Pages 1962-1964]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-338]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 101

RIN 3245-AF68


Seals and Insignia

AGENCY: U.S. Small Business Administration.

ACTION: Direct final rule.

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SUMMARY: The U.S. Small Business Administration (SBA) is revising its 
regulations specifying the description and authorized use of its 
official seal. These revisions will further define the authorized and 
unauthorized use of the official seal by SBA and add criteria for 
approving and denying requests to use the official seal.
    SBA believes that this rule is non-controversial, and the Agency 
anticipates no significant adverse comment. If SBA receives a 
significant adverse comment, it will withdraw the rule.

DATES: This rule is effective February 25, 2008 without further action, 
unless significant adverse comment is received by February 11, 2008. If 
significant adverse comment is received, SBA will publish a timely 
withdrawal of the rule in the Federal Register.

ADDRESSES: You may submit comments, identified by RIN 3245-AF68, by one 
of the following methods: (1) Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments; 
or (2) Mail/Hand Delivery/Courier: Julie Clowes, Attorney Advisor, 
Office of

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General Counsel, 409 Third Street, SW., Washington, DC 20416.
    SBA will post all comments on http:/ /www.Regulations.gov. If you 
wish to submit comments that contain confidential business information 
(CBI) as defined in the User Notice at http://www.Regulations.gov, 
please submit the comments to Julie Clowes, at 409 Third Street, SW., 
Washington, DC 20416, or send an e-mail to [email protected]. 
Highlight the comments that you consider to contain the CBI and explain 
why you believe SBA should hold this information as confidential. SBA 
will review the information and make the final determination of whether 
it will publish the information or not.

FOR FURTHER INFORMATION CONTACT: Julie Clowes, Office of General 
Counsel, at (202) 619-0445 or by e-mail at: [email protected].

SUPPLEMENTARY INFORMATION: 

A. Statutory Authority and Background

    Section 5(a) of the Small Business Act (15 U.S.C. 634(a)) gives SBA 
the power to adopt, alter and use a seal which shall be judicially 
noticed. When initially created, the official seal was only used to 
certify or authenticate official SBA records. SBA's regulations at 13 
CFR 101.105 were narrowly constructed to reflect that one use. Through 
the years, the Agency has discovered a need to formally identify itself 
to the public through use of the official seal. This revision to 13 CFR 
101.105 broadens SBA's regulatory authority to use its official seal 
and establishes penalties for unauthorized use.
    In order to gain a better understanding of what may or may not be 
an appropriate use of an official Federal agency seal, SBA first 
researched the Federal laws affecting use of an agency's seal and the 
seal regulations of other Federal agencies. The research showed that 
use of seals by Federal agencies is rather varied. Many agencies 
authorize use for marketing and outreach purposes such as awards, 
certificates, plaques, flags, business cards, signage and publications. 
Because this type of use identifies with the mission of the Agency, SBA 
incorporated these marketing uses into the revised regulations.
    Additionally, SBA identified unauthorized uses of the seal, 
emphasizing the need to prevent an actual or implied endorsement of a 
commercial product or service. A subsection on how to request written 
permission from the Administrator to use the SBA seal and a statement 
of the penalties, as defined in the U.S. Code, were also incorporated 
into the revised regulations.
    The Agency believes there is good cause to bypass notice and 
comment and proceed to a direct final rule pursuant to 5 U.S.C. 553(b). 
The rule is non-controversial and merely alters who may use SBA's 
official seal and for what purpose. Because this rule only impacts 
Agency procedure and practice, notice and comment is unnecessary. 
Although SBA believes this direct final rule will not elicit any 
significant adverse comments, if such comments are received, SBA will 
publish a timely notice of withdrawal in the Federal Register.

B. 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. 601-602)

    The Office of Management and Budget (OMB) has determined that this 
rule does not constitute a significant regulatory action under 
Executive Order 12866.
    This rule meets applicable standards set forth in Sec. Sec.  3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden. This action does 
not have retroactive or preemptive effect.
    This rule will not have substantial direct effects on the States, 
on the relationship between the Federal government and the States, or 
on the distribution of power and responsibilities among the various 
levels of government. Therefore, for the purposes of Executive Order 
13132, SBA determines that this rule has no federalism implications 
warranting preparation of a federalism assessment.
    SBA has determined that this rule does not impose additional 
reporting or recordkeeping requirements under the Paperwork Reduction 
Act, 44 U.S.C., Chapter 35.
    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601, requires 
administrative agencies to consider the effect of their actions on 
small entities, small non-profit enterprises, and small local 
governments. Pursuant to the RFA, when an agency issues a rule, the 
agency must prepare a regulatory flexibility analysis which describes 
the impact of the rule on small entities. However, 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. In this 
case, the regulations address the administrative requirements for the 
Agency's use of its official seal. In other words, this rule will not 
result in the direct regulation of small entities, so no further 
analysis is required by the RFA. Therefore, SBA certifies that this 
rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of RFA.

List of Subjects in 13 CFR Part 101

    Administrative practice and procedure, Authority delegations, 
Intergovernmental relations, Investigations, Organizations and 
functions, Reporting and recordkeeping requirements, Seals and 
insignia.

0
For the reasons set forth in the preamble, amend part 101 of title 13 
of the Code of Federal Regulations as follows:

PART 101--ADMINISTRATION

0
1. The authority citation for part 101 continues to read as follows:

    Authority: 5 U.S.C. 552 and App. 3, secs. 2, 4(a), 6(a), and 
9(a)(1)(T); 15 U.S.C. 633, 634, 687; 31 U.S.C. 6506; 44 U.S.C. 3512; 
E.O. 12372 (July 14, 1982), 47 FR 30959, 3 CFR, 1982 Comp., p. 197, 
as amended by E.O. 12416 (April 8, 1983), 48 FR 15887, 3 CFR, 1983 
Comp., p. 186.


0
2. Revise Sec.  101.105 to read as follows:


Sec.  101.105  Who may use SBA's official seal and for what purpose?

    (a) General. This section describes the official seal of the SBA 
and prescribes rules for its use.
    (b) Official Seal. The official seal of the SBA is illustrated 
below.
[GRAPHIC] [TIFF OMITTED] TR11JA08.000


    (c) Authorized Use. The official seal and reproductions of the seal 
may only be used as follows:
    (1) Certify and authenticate originals and copies of any books, 
records, papers or other documents on file within SBA or extracts taken 
from them or to provide certification for the purposes authorized in 28 
U.S.C. 1733;

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    (2) SBA award certificates and medals;
    (3) SBA awards for career service;
    (4) Security credentials and employee identification cards;
    (5) Business cards for SBA employees;
    (6) Official SBA signs;
    (7) Plaques; the design of the SBA seal may be incorporated in 
plaques for display in Agency auditoriums, presentation rooms, lobbies, 
offices and on buildings occupied by SBA;
    (8) The SBA flag;
    (9) Officially authorized reports or publications of the SBA; or
    (10) For such other purposes as determined necessary by the 
Administrator.
    (d) Unauthorized use. The official seal shall not be used, except 
as authorized by the Administrator, in connection with:
    (1) Contractor operated facilities;
    (2) Souvenir or novelty items;
    (3) Toys or commercial gifts or premiums;
    (4) Letterhead design, except on official SBA stationery;
    (5) Clothing or equipment; or
    (6) Any article which may disparage the seal or reflect unfavorably 
upon SBA.
    (e) SBA's seal will not be used in any manner which implies SBA 
endorsement of commercial products or services or of the user's 
policies or activities.
    (f) Reproduction of Official Seal. Requests for permission to 
reproduce the SBA seal in circumstances other than those listed in 
paragraph (c) of this section must be made in writing to the 
Administrator. The decision whether to grant permission will be made in 
writing on a case-by-case basis, in consultation with the General 
Counsel, with consideration of any relevant factors which may include 
the benefit or cost to the Agency of granting the request; the 
unintended appearance of endorsement or authentication by SBA; the 
potential for misuse; the reputability of the use; the extent of 
control by SBA over the use; and the extent of control by SBA over 
distribution of any products or publications bearing the SBA seal.
    (g) Penalties for Unauthorized Use. Fraudulent or wrongful use of 
SBA's seal can lead to criminal penalties under 18 U.S.C. 506 or 18 
U.S.C. 1017.

    Dated: January 4, 2008.
Steven C. Preston,
Administrator.
 [FR Doc. E8-338 Filed 1-10-08; 8:45 am]
BILLING CODE 8025-01-P