[Federal Register Volume 82, Number 203 (Monday, October 23, 2017)]
[Rules and Regulations]
[Pages 48903-48904]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22935]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 82, No. 203 / Monday, October 23, 2017 /
Rules and Regulations
[[Page 48903]]
SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
RIN 3245-AG92
HUBZone and Puerto Rico Oversight, Management, and Economic
Stability Act (PROMESA) Amendments
AGENCY: U.S. Small Business Administration.
ACTION: Direct final rule; request for comments.
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SUMMARY: This direct final rule amends the definition of ``qualified
census tract'' in the HUBZone program regulations. The U.S. Small
Business Administration (SBA) is making this change to its regulations
to implement section 412(a) of the Puerto Rico Oversight, Management,
and Economic Stability Act (PROMESA). Section 412(a) of PROMESA amended
the definition of ``qualified census tract'' contained in section
3(p)(4)(A) of the Small Business Act.
DATES: This rule is effective on December 22, 2017 without further
action, unless significant adverse comment is received by November 22,
2017. 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-AG92 by any
of the following methods:
Federal Rulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Mail or Hand Delivery/Courier: Mariana Pardo, Director,
HUBZone Program, 409 Third Street SW., Washington, DC 20416.
SBA will post all comments on http://www.regulations.gov. If you
wish to submit confidential business information (CBI) as defined in
the User Notice at http://www.regulations.gov, please submit the
information to Mariana Pardo, Director, HUBZone Program, 409 Third
Street SW., Washington, DC 20416 and highlight the information that you
consider to be CBI and explain why you believe this information should
be held confidential. SBA will review the information and make a final
determination of whether the information will be published or not.
FOR FURTHER INFORMATION CONTACT: Mariana Pardo, Director, HUBZone
Program, 409 Third Street SW., Washington, DC 20416, 202-205-2985,
[email protected].
SUPPLEMENTARY INFORMATION: On June 30, 2016, the President signed into
law the Puerto Rico Oversight, Management, and Economic Stability Act
(PROMESA), Public Law 114-187, 130 Stat. 149. Section 412(a) of PROMESA
amended the definition of ``qualified census tract'' (QCT) contained in
section 3(p)(4)(A) of the Small Business Act, 15 U.S.C. 632(p)(4)(A),
which is relevant to SBA's HUBZone program. Amended section 3(p)(4)(A)
provides that a QCT is defined as set forth in section 42(d)(5)(B)(ii)
of the Internal Revenue Code of 1986, except for areas in Puerto Rico,
which for a limited time will use the Internal Revenue Code definition
without regard to subclause (II) of that definition.
Section 42(d)(5)(B)(ii) of the Internal Revenue Code of 1986
provides that a QCT is a tract in which either 50 percent or more of
the households have an income which is less than 60 percent of the
area's median gross income, or which has a poverty rate of at least 25
percent. However, subclause (II) of section 42(d)(5)(B)(ii) sets forth
a population cap that limits the portion of a metropolitan statistical
area (MSA) which may be designated as a QCT to an area having 20
percent of the population of such MSA. If more than 20 percent of the
population in an MSA would otherwise qualify, the U.S. Department of
Housing and Urban Development (HUD) ranks the tracts in that area from
highest percentage of eligible households to lowest, and then
designates as QCTs those tracts with the highest percentages of
eligible households until the 20 percent population cap is reached.
Since PROMESA's passage, the amended definition of QCT in the Small
Business Act provides that the definition of QCT contained in section
42(d)(5)(B)(ii) of the Internal Revenue Code shall apply to the HUBZone
program--with one enumerated exception. The exception states that the
20 percent population cap shall not apply to census tracts located in
Puerto Rico, for a period of 10 years after the date the Administrator
implements this clause (or until the Financial Oversight and Management
Board for the Commonwealth of Puerto Rico ceases to exist), whichever
event occurs first. This change will result in approximately 516 new
HUBZones in Puerto Rico.
This direct final rule merely adopts the statutory change that is
specific to Puerto Rico as a conforming amendment. The statutory
language is specific, limited and requires no interpretation. As such,
SBA expects no significant adverse comments. Based on that fact, SBA
has decided to proceed with a direct final rule but giving the public
30 days to comment. If SBA receives a significant adverse comment
during the comment period, SBA will withdraw the rule, and proceed with
a proposed rule.
In order to implement the change made by section 412(a) of PROMESA,
SBA is amending Sec. 126.103 of its regulations by revising the
definition of the term ``Qualified census tract''. This rules adopts
the definition of this term provided in amended section 3(p)(4)(A) of
the Small Business Act, 15 U.S.C. 632(p)(4)(A).
Compliance With Executive Orders 12866, 12988, 13132, and 13771, the
Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory
Flexibility Act (5 U.S.C. 601-612)
Executive Order 12866
The Office of Management and Budget (OMB) has determined that this
direct final rule does not constitute a significant regulatory action
under Executive Order 12866. This rule is also not a major rule under
the Congressional Review Act, 5 U.S.C. 800.
Executive Order 12988
This action meets applicable standards set forth in Sections 3(a)
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize
litigation, eliminate ambiguity, and reduce burden. The action does not
have retroactive or preemptive effect.
[[Page 48904]]
Executive Order 13132
For the purposes of Executive Order 13132, SBA has determined that
this direct final rule will not have substantial, direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government. Therefore, for the purpose of Executive
Order 13132, Federalism, SBA has determined that this direct final rule
has no federalism implications warranting preparation of a federalism
assessment.
Executive Order 13771
This final rule is not an E.O. 13771 regulatory action because it
is not significant under E.O. 12866.
Paperwork Reduction Act, 44 U.S.C., Ch. 35
SBA has determined that this direct final rule does not impose
additional reporting or recordkeeping requirements under the Paperwork
Reduction Act, 44 U.S.C., Chapter 35.
Regulatory Flexibility Act, 5 U.S.C. 601-612
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 rulemaking,
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. Within the
meaning of RFA, SBA certifies that this direct final rule will not have
a significant economic impact on a substantial number of small
entities.
List of Subjects in 13 CFR Part 126
Administrative practice and procedure, Government procurement,
Small businesses.
Accordingly, for the reasons stated in the SUPPLEMENTARY
INFORMATION, SBA amends 13 CFR part 126 as follows:
PART 126--HUBZONE PROGRAM
0
1. The authority for part 126 is revised to read as follows:
Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a.
0
2. Amend Sec. 126.103 by revising the definition of ``Qualified census
tract'', to read as follows:
Sec. [thinsp]126.103 What definitions are important in the HUBZone
program?
* * * * *
Qualified census tract has the meaning given that term in section
42(d)(5)(B)(ii) of the Internal Revenue Code of 1986. However, for any
metropolitan statistical area in the Commonwealth of Puerto Rico, the
term ``qualified census tract'' has the meaning given that term in
section 42(d)(5)(B)(ii) of the Internal Revenue Code of 1986 as applied
without regard to subclause (II) of such section, except that this
clause shall apply only until December 22, 2027, or the date on which
the Financial Oversight and Management Board for the Commonwealth of
Puerto Rico created by the Puerto Rico Oversight, Management, and
Economic Stability Act ceases to exist, whichever event occurs first.
* * * * *
Dated: October 10, 2017.
Linda E. McMahon,
Administrator.
[FR Doc. 2017-22935 Filed 10-20-17; 8:45 am]
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