[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
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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.
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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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