[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Rules and Regulations]
[Pages 23863-23865]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09397]
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Rules and Regulations
Federal Register
________________________________________________________________________
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. 86, No. 85 / Wednesday, May 5, 2021 / Rules
and Regulations
[[Page 23863]]
SMALL BUSINESS ADMINISTRATION
13 CFR Part 126
RIN 3245-AH66
HUBZone Program: Extending Map Freeze
AGENCY: U.S. Small Business Administration.
ACTION: Direct final rule.
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SUMMARY: This direct final rule extends the HUBZone map freeze mandated
by the National Defense Authorization Act for Fiscal Year 2018 (NDAA
2018) from December 31, 2021, to June 30, 2023. The NDAA 2018 requires
that certain certified HUBZone small business concerns shall maintain
their HUBZone status until the HUBZone map is updated in accordance
with the results of the 2020 census. SBA previously issued a rule to
implement this provision and ``freeze'' the HUBZone map until December
31, 2021. However, SBA has learned that the data necessary to update
the HUBZone map to reflect the 2020 census results will not be
available to SBA until December 2022. Thus, SBA must extend the HUBZone
``freeze'' through June 30, 2023, which will permit SBA to process the
data, update the HUBZone map, and provide adequate notice to the
HUBZone small business community. This amendment is necessary to avoid
public confusion about when certain HUBZone designations will be
expiring.
DATES: This rule is effective on June 21, 2021 without further action,
unless significant adverse comment is received by June 4, 2021. 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-AH66, by
any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Mail or Hand Delivery/Courier: Laura Maas, 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 Laura Maas, HUBZone Program, 409 Third Street SW,
Washington, DC 20416, 202-205-7341, or send an email to
[email protected]. Highlight the information that you consider to be CBI
and explain why you believe SBA should hold this information as
confidential. SBA will review the information and make the final
determination on whether it will publish the information.
FOR FURTHER INFORMATION CONTACT: Laura Maas, HUBZone Program, 409 Third
Street SW, Washington, DC 20416, 202-205-7341, [email protected].
SUPPLEMENTARY INFORMATION: Section 1701(i) of the National Defense
Authorization Act for Fiscal Year 2018 (NDAA 2018), Public Law 115-91,
December 12, 2017, provides that certain certified HUBZone small
business concerns shall maintain their HUBZone status until the HUBZone
map is updated in accordance with the results of the 2020 census. To
implement this provision, on November 26, 2019, SBA published a final
rule ``freezing'' the HUBZone map until the map could be updated based
on the results of the 2020 census. 84 FR 65222. In the preamble to the
final rule, SBA explained:
In enacting section 1701(i), Congress intended for small
businesses located in expiring redesignated areas to retain their
HUBZone eligibility until the date on which SBA updates the HUBZone
maps in accordance with the broader changes described in section
1701. In other words, firms that were certified HUBZone small
business concerns as of the date of enactment of the NDAA 2018
(December 12, 2017), and that had principal offices located in
redesignated areas set to expire prior to January 1, 2020, shall
remain certified HUBZone small business concerns until SBA updates
the HUBZone maps after the 2020 decennial census . . . SBA notes
that to implement this change, SBA will `freeze' the HUBZone maps
with respect to qualified census tracts, qualified non-metropolitan
counties, and redesignated areas. As a result, for all redesignated
areas in existence on December 12, 2017, the expiration of their
HUBZone treatment has been extended until December 31, 2021. SBA
selected this date because SBA estimates that the HUBZone maps will
have been updated to incorporate the results of the 2020 census and
to reflect the broad changes mandated by section 1701 by that time,
and selecting a specific date provides stability to program
participants. SBA did not receive any comments on the proposed
definition of `HUBZone small business concern' and is implementing
the changes as proposed. (84 FR 65222, 65226).
In the time since the publication of this final rule, SBA has
learned that the datasets necessary for SBA to update the HUBZone map
based on the results of the 2020 census will not be available to SBA
until approximately December 2022. These datasets include the
Department of Housing and Urban Development's designation of qualified
census tracts. Consequently, SBA must extend the HUBZone map freeze
beyond December 31, 2021. SBA has determined that the map freeze should
be extended through June 30, 2023, which will permit SBA to process the
data, update the HUBZone map, and provide adequate notice to the
HUBZone small business community.
In order to extend the map freeze through June 30, 2023, SBA must
amend the date set forth in the definitions of the terms HUBZone small
business concern or certified HUBZone small business concern and
Redesignated area contained in Sec. 126.103 of the HUBZone
regulations. This amendment is necessary to avoid public confusion
about when certain HUBZone designations will be expiring.
Compliance With Executive Orders 12866, 12988, 13132, 13175, 13563, the
Congressional Review Act (5 U.S.C. 801-808), the Paperwork Reduction
Act (44 U.S.C. Ch. 35), and the Regulatory Flexibility Act (5 U.S.C.
601-612), and the Administrative Procedure Act, 5 U.S.C. 553
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 (Regulatory Planning and Review).
Executive Order 12988
This action meets applicable standards set forth in sections 3(a)
and
[[Page 23864]]
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.
Executive Order 13132
For the purposes of Executive Order 13132 (Federalism), 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, SBA has determined that this
direct final rule has no federalism implications warranting preparation
of a federalism assessment. If you believe this direct final rule has
implications for federalism, please call or email the person listed in
the FOR FURTHER INFORMATION CONTACT section.
Executive Order 13175
SBA has determined that this direct final rule would not have
tribal implications under Executive Order 13175 (Consultation and
Coordination with Indian Tribal Governments) because it would not have
a substantial direct effect on one or more Indian tribes, on the
relationship between the Federal Government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian tribes. If you believe this direct final rule has
implications for Indian tribes, please call or email the person listed
in the FOR FURTHER INFORMATION CONTACT section.
Executive Order 13563
Executive Order 13563 (Improving Regulation and Regulatory Review)
reaffirms the principles of Executive Order 12866 while calling for
improvements in the nation's regulatory system to promote
predictability, to reduce uncertainty, and to use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
The executive order directs agencies to consider regulatory approaches
that reduce burdens and maintain flexibility and freedom of choice for
the public where these approaches are relevant, feasible, and
consistent with regulatory objectives. Executive Order 13563 also
requires that regulations be based on the open exchange of information
and perspectives among state and local officials, affected stakeholders
in the private sector, and the public as a whole. SBA has developed
this rule in a manner consistent with these requirements. While
developing this rule, SBA responded to specific inquiries from
government officials and the public regarding the extension of the
HUBZone map freeze.
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
because it will directly impact only certified HUBZone small business
concerns with principal offices located in Redesignated Areas.
Justification for Direct Final Rule
SBA is publishing this rule as a direct final rule because SBA
views this as a non-controversial administrative action because it
merely changes a date in SBA's regulations to reflect updated
information about when the 2020 Census results will be incorporated
into the Department of Housing and Urban Development's designation of
qualified census tracts. This rule will be effective on the date shown
in the DATES section unless SBA receives any significant adverse
comments on or before the deadline for comments set forth in the DATES
section. Significant adverse comments are comments that provide strong
justifications why the rule should not be adopted or for changing the
rule. SBA does not expect to receive any significant adverse comments
because section 1701(i) of the 2018 NDAA requires SBA to maintain the
HUBZone status of certain certified HUBZone small business concerns
until the HUBZone maps can be updated to reflect the results of the
2020 census. Implementation of this change will benefit the public by
allowing the HUBZone small business community to plan for the update of
the maps on July 1, 2023, rather than January 1, 2022. If SBA receives
any significant adverse comments, SBA will publish a notice in the
Federal Register withdrawing this rule before the effective date. If
SBA receives no significant adverse comments, SBA will publish a
document in the Federal Register confirming the effective date.
Congressional Review Act, 5 U.S.C. 801-808
Subtitle E of the Small Business Regulatory Enforcement Fairness
Act of 1996 (codified at 5 U.S.C. 801-808), also known as the
Congressional Review Act (CRA), generally provides that before a rule
may take effect, the agency promulgating the rule must submit a rule
report, which includes a copy of the rule, to each House of the
Congress and to the Comptroller General of the United States. SBA will
submit a report containing this rule and other required information to
the U.S. Senate, the U.S. House of Representatives, and the Comptroller
General of the United States. Additionally, the CRA provides that a
major rule under the CRA cannot take effect until 60 days after it is
published in the Federal Register; however, the Office of Information
and Regulatory Affairs has determined that this rule is not a ``major
rule'' as defined by 5 U.S.C. 804(2).
List of Subjects in 13 CFR Part 126
Administrative practice and procedure, Government procurement,
Small businesses.
Accordingly, for the reasons stated in the preamble, SBA amends 13
CFR part 126 as follows:
PART 126--HUBZONE PROGRAM
0
1. The authority for 13 CFR part 126 continues to read as follows:
Authority: 15 U.S.C. 632(a), 632(j), 632(p), 644 and 657a; Pub.
L. 111-240, 24 Stat. 2504.
Sec. 126.103 Amended
0
2. Amend Sec. 126.103 as follows:
0
a. Amend the definition of the term HUBZone small business concern or
certified HUBZone small business concern by removing the date
``December 31, 2021'' and adding in its place the date ``June 30,
2023''; and
0
b. Amend the definition of the term Redesignated area by removing the
date
[[Page 23865]]
``December 31, 2021'' and adding in its place the date ``June 30,
2023''.
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2021-09397 Filed 5-4-21; 8:45 am]
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