81_FR_51462 81 FR 51312 - HUBZone and National Defense Authorization Act for Fiscal Year 2016 Amendments

81 FR 51312 - HUBZone and National Defense Authorization Act for Fiscal Year 2016 Amendments

SMALL BUSINESS ADMINISTRATION

Federal Register Volume 81, Issue 150 (August 4, 2016)

Page Range51312-51314
FR Document2016-18251

This direct final rule contains several amendments to the regulations governing the HUBZone Program. The U.S. Small Business Administration (SBA) is making changes to its regulations to implement section 866 of the National Defense Authorization Act for Fiscal Year 2016 (2016 NDAA). Section 866 of the 2016 NDAA made the following changes to the HUBZone program: authorized Native Hawaiian Organizations to own HUBZone small business concerns; expanded the definition of ``base closure area'' under the HUBZone program; and authorized the inclusion of ``qualified disaster areas'' under the HUBZone program. This direct final rule would implement these changes in SBA's regulations.

Federal Register, Volume 81 Issue 150 (Thursday, August 4, 2016)
[Federal Register Volume 81, Number 150 (Thursday, August 4, 2016)]
[Rules and Regulations]
[Pages 51312-51314]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-18251]


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SMALL BUSINESS ADMINISTRATION

13 CFR Part 126

RIN 3245-AG81


HUBZone and National Defense Authorization Act for Fiscal Year 
2016 Amendments

AGENCY: U.S. Small Business Administration.

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: This direct final rule contains several amendments to the 
regulations governing the HUBZone Program. The U.S. Small Business 
Administration (SBA) is making changes to its regulations to implement 
section 866 of the National Defense Authorization Act for Fiscal Year 
2016 (2016 NDAA). Section 866 of the 2016 NDAA made the following 
changes to the HUBZone program: authorized Native Hawaiian 
Organizations to own HUBZone small business concerns; expanded the 
definition of ``base closure area'' under the HUBZone program; and 
authorized the inclusion of ``qualified disaster areas'' under the 
HUBZone program. This direct final rule would implement these changes 
in SBA's regulations.

DATES: This rule is effective on October 3, 2016 without further 
action, unless significant adverse comment is received by September 6, 
2016. 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-AG81 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: 
    This direct final rule implements several conforming amendments to 
SBA regulations from the National Defense Authorization Act for Fiscal 
Year 2016, Public Law 114-92, 129 Stat. 726, November 25, 2015 (2016 
NDAA). The 2016 NDAA became effective on November 25, 2015. Section 866 
of the 2016 NDAA made the following changes to the HUBZone program: 
authorized Native Hawaiian Organizations (NHOs) to own HUBZone small 
business concerns; expanded the definition of ``base closure area'' 
under the HUBZone program; and authorized the inclusion of ``qualified 
disaster areas'' under the HUBZone program.
    SBA seeks to amend its HUBZone regulations to mirror the changes 
the 2016 NDAA made to the Small Business Act, and to avoid public 
confusion and possible misinterpretations of SBA's HUBZone program. 
Since these are conforming amendments, with no extraneous 
interpretation or other expanded materials, SBA expects no significant 
adverse comments. Based on that fact, SBA has decided to proceed with a 
direct final rule 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 new proposed rule. The statute 
makes the following changes:
     General Summary--Expands the HUBZone program to assist 
small businesses in disasters areas and base closure areas and provides 
equal treatment under the HUBZone program for small businesses owned by 
NHOs.
     ``Major Disaster'' Areas--Treats major disaster areas as 
HUBZones for a period of 5 years. Applies to census tracts and 
nonmetropolitan counties (NMC) located in ``major disaster'' areas, if 
such census tract or NMC lost its HUBZone eligibility within the past 5 
years or will lose its HUBZone eligibility within 2 years after the 
major disaster.
     ``Catastrophic Incident'' Areas--Treats areas where 
catastrophic incidents occurred as HUBZones for a period of 10 years. 
Applies to census tracts and NMCs located in areas where catastrophic 
incidents occurred, if such census tract or NMC lost its HUBZone 
eligibility within the past 5 years or will lose its HUBZone 
eligibility within 2 years after the catastrophic incident.
     Base Closures Areas (BRAC)--Extends HUBZone eligibility 
for BRACs to 8 years (up from 5) and expands HUBZone eligibility to 
census tracts and NMCs that (1) contain BRACs, (2) intersect with 
BRACs, (3) are contiguous to BRACs, or (4) are contiguous to any census 
tract or NMC described in (1) through (3).
     Native Hawaiian Organizations (NHO)--Allows small 
businesses owned by NHOs to qualify as HUBZone companies.
    In order to implement the changes made by section 866 of the 2016 
NDAA, SBA is amending Sec. Sec.  126.103 and 126.200 of its 
regulations.
    SBA is amending Sec.  126.103 by revising the definitions of the 
terms ``Base closure area'', ``HUBZone'', ``HUBZone small business 
concern (HUBZone SBC)'', and ``Qualified base closure area'', and by 
adding new definitions for the terms ``Native Hawaiian Organization 
(NHO)'' and ``Qualified disaster area''. This rules adopts the 
definitions of these terms provided in amended sections 3(p)(1), 
3(p)(3), 3(p)(4)(D), and new section 3(p)(4)(E), of the Small Business 
Act, 15 U.S.C. 632(p)(1), 632(p)(3), 632(p)(4)(D), 632(p)(4)(E).
    SBA is amending Sec.  126.200 by revising paragraph (b)(1) to 
implement the statutory authority for HUBZone small business concerns 
to be wholly or partly owned by NHOs. This rule adopts the language 
provided in new section 3(p)(3)(D) of the Small Business Act, 15 U.S.C. 
632(p)(3)(D).

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. 601-612)

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 51313]]

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.

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 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 13 CFR part 126 continues 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 definitions of ``Base closure 
area'', ``HUBZone'', ``HUBZone small business concern (HUBZone SBC)'', 
and ``Qualified base closure area'' and by adding new definitions 
alphabetically for the terms ``Native Hawaiian Organization (NHO)'' and 
``Qualified disaster area'', to read as follows:


Sec.  [thinsp]126.103  What definitions are important in the HUBZone 
program?

* * * * *
    Base closure area means:
    (1) Lands within the external boundaries of a military installation 
that were closed through a privatization process under the authority 
of:
    (i) The Defense Base Closure and Realignment Act of 1990 (part A of 
title XXIX of division B of Pub. L. 101-510; 10 U.S.C. 2687 note);
    (ii) Title II of the Defense Authorization Amendments and Base 
Closure and Realignment Act (Pub. L. 100-526; 10 U.S.C. 2687 note);
    (iii) 10 U.S.C. 2687; or
    (iv) Any other provision of law authorizing or directing the 
Secretary of Defense or the Secretary of a military department to 
dispose of real property at the military installation for purposes 
relating to base closures of redevelopment, while retaining the 
authority to enter into a leaseback of all or a portion of the property 
for military use;
    (2) The census tract or nonmetropolitan county (excluding any 
qualified census tract and any qualified non-metropolitan county) in 
which the lands described in paragraph (1) of this definition are 
wholly contained;
    (3) A census tract or nonmetropolitan county (excluding any 
qualified census tract and any qualified non-metropolitan county) the 
boundaries of which intersect the area described in paragraph (1) of 
this definition; and
    (4) A census tract or nonmetropolitan county (excluding any 
qualified census tract and any qualified non-metropolitan county) the 
boundaries of which are contiguous to the area described in paragraph 
(2) or paragraph (3) of this definition.
* * * * *
    HUBZone means a historically underutilized business zone, which is 
an area located within one or more:
    (1) Qualified census tracts;
    (2) Qualified non-metropolitan counties;
    (3) Lands within the external boundaries of an Indian reservation;
    (4) Qualified base closure areas;
    (5) Redesignated areas; or
    (6) Qualified disaster areas.
    HUBZone small business concern (HUBZone SBC) means an SBC that is:
    (1) At least 51% owned and controlled by 1 or more persons, each of 
whom is a United States citizen;
    (2) An ANC owned and controlled by Natives (as determined pursuant 
to section 29(e)(1) of the ANCSA, 43 U.S.C. 1626(e)(1));
    (3) A direct or indirect subsidiary corporation, joint venture, or 
partnership of an ANC qualifying pursuant to section 29(e)(1) of the 
ANCSA, 43 U.S.C. 1626(e)(1)), if that subsidiary, joint venture, or 
partnership is owned and controlled by Natives (as determined pursuant 
to section 29(e)(2) of the ANCSA, 43 U.S.C. 1626(e)(2));
    (4) Wholly owned by one or more Indian Tribal Governments, or by a 
corporation that is wholly owned by one or more Indian Tribal 
Governments;
    (5) An SBC that is owned in part by one or more Indian Tribal 
Governments or in part by a corporation that is wholly owned by one or 
more Indian Tribal Governments, if all other owners are either United 
States citizens or SBCs;
    (6) An SBC that is wholly owned by a CDC or owned in part by one or 
more CDCs, if all other owners are either United States citizens or 
SBCs;
    (7) An SBC that is a small agricultural cooperative organized or 
incorporated in the United States, wholly owned by one or more small 
agricultural cooperatives organized or incorporated in the United 
States or owned in part by one or more small agricultural cooperatives 
organized or incorporated in the United States, provided that all other 
owners are small business concerns or United States citizens;
    (8) Wholly owned by one or more Native Hawaiian Organizations, or 
by a corporation that is wholly owned by one or more Native Hawaiian 
Organizations; or
    (9) Owned in part by one or more Native Hawaiian Organizations or 
by a corporation that is wholly owned by one or more Native Hawaiian 
Organizations, if all other owners are either United States citizens or 
small business concerns.
* * * * *
    Native Hawaiian Organization (NHO) means any community service 
organization serving Native Hawaiians in the State of Hawaii which is a 
not-for-profit organziation chartered by the State of Hawaii, is 
controlled by Native Hawaiians, and whose business activities will 
principally benefit such Native Hawaiians.
* * * * *
    Qualified base closure area means:
    (1) A base closure area that is treated as a HUBZone for a period 
of not less than 8 years, beginning on the date the military 
installation undergoes final closure and ending on the latter of the 
following:
    (i) The date the Administrator makes a final determination as to 
whether or not to implement the applicable designations in accordance 
with the

[[Page 51314]]

results of the decennial census conducted after the area was initially 
designated as a base closure area; or
    (ii) The date 8 years after the base closure area was initially 
designated as a HUBZone.
    (2) However, if a base closure area was treated as a HUBZone at any 
time after 2010, it shall be treated as a HUBZone until such time as 
the Administrator makes a final determination as to whether or not to 
implement the applicable designations in accordance with the results of 
the 2020 decennial census.
* * * * *
    Qualified disaster area means any census tract or nonmetropolitan 
county located in an area for which the President has declared a major 
disaster under section 401 of the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act (42 U.S.C. 5170), or located in an area in 
which a catastrophic incident has occurred if such census tract or 
nonmetropolitan county ceased to be categorized as either a qualified 
census tract or qualified nonmetropolitan county, as applicable, during 
the period beginning 5 years before the date on which the President 
declared the major disaster or the catastrophic incident occurred and 
ending 2 years after such date. However, the following exceptions 
apply:
    (1) In the case of a major disaster declared by the President, a 
census tract or nonmetropolitan county may be a qualified disaster area 
only during the 5-year period beginning on the date on which the 
President declared the major disaster for the area in which the census 
tract or nonmetropolitan county is located; and
    (2) In the case of a catastrophic incident, a census tract or 
nonmetropolitan county may be a qualified disaster area only during the 
10-year period beginning on the date on which the catastrophic incident 
occurred in the area in which the census tract or nonmetropolitan 
county is located.
* * * * *

0
3. Amend Sec.  126.200 by revising paragraph (b)(1) to read as follows:


Sec.  126.200  What requirements must a concern meet to receive SBA 
certification as a qualified HUBZone SBC?

* * * * *
    (b) Concerns owned by U.S. citizens, ANCs, NHOs, or CDCs.--(1) 
Ownership. (i) The concern must be at least 51% unconditionally and 
directly owned and controlled by persons who are United States 
citizens;

    Example:  A concern that is a partnership owned 50% by an 
individual who is a United States citizen and 50% by someone who is 
not a United States citizen, is not an eligible concern because it 
is not at least 51% owned by United States citizens.

    (ii) The concern must be an ANC owned and controlled by Natives 
(determined pursuant to section 29(e)(1) of the ANCSA); or a direct or 
indirect subsidiary corporation, joint venture, or partnership of an 
ANC qualifying pursuant to section 29(e)(1) of ANCSA, if that 
subsidiary, joint venture, or partnership is owned and controlled by 
Natives (determined pursuant to section 29(e)(2)) of the ANCSA);
    (iii) The concern must be wholly owned by one or more NHOs, or by a 
corporation that is wholly owned by one or more NHOs, or owned in part 
by one or more NHOs, if all other owners are either United States 
citizens or small business concerns; or
    (iv) The concern must be wholly owned by a CDC, or owned in part by 
one or more CDCs, if all other owners are either United States citizens 
or SBCs.
* * * * *

    Dated: July 22, 2016.
Maria Contreras-Sweet,
Administrator.
[FR Doc. 2016-18251 Filed 8-3-16; 8:45 am]
 BILLING CODE 8025-01-P



                                           51312             Federal Register / Vol. 81, No. 150 / Thursday, August 4, 2016 / Rules and Regulations

                                           Subpart B—[Reserved]                                    information that you consider to be CBI               tracts and NMCs located in areas where
                                                                                                   and explain why you believe this                      catastrophic incidents occurred, if such
                                             Dated: July 27, 2016.                                 information should be held confidential.              census tract or NMC lost its HUBZone
                                           Elanor Starmer,                                         SBA will review the information and                   eligibility within the past 5 years or will
                                           Administrator, Agricultural Marketing                   make a final determination of whether                 lose its HUBZone eligibility within 2
                                           Service.                                                the information will be published or                  years after the catastrophic incident.
                                           [FR Doc. 2016–18346 Filed 8–3–16; 8:45 am]              not.                                                     • Base Closures Areas (BRAC)—
                                                                                                                                                         Extends HUBZone eligibility for BRACs
                                           BILLING CODE 3410–02–P                                  FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                         to 8 years (up from 5) and expands
                                                                                                   Mariana Pardo, Director, HUBZone
                                                                                                                                                         HUBZone eligibility to census tracts and
                                                                                                   Program, 409 Third Street SW.,
                                                                                                                                                         NMCs that (1) contain BRACs, (2)
                                           SMALL BUSINESS ADMINISTRATION                           Washington, DC 20416, 202–205–2985,
                                                                                                                                                         intersect with BRACs, (3) are contiguous
                                                                                                   hubzone@sba.gov.
                                                                                                                                                         to BRACs, or (4) are contiguous to any
                                           13 CFR Part 126                                         SUPPLEMENTARY INFORMATION:                            census tract or NMC described in (1)
                                           RIN 3245–AG81                                              This direct final rule implements                  through (3).
                                                                                                   several conforming amendments to SBA                     • Native Hawaiian Organizations
                                           HUBZone and National Defense                            regulations from the National Defense                 (NHO)—Allows small businesses owned
                                           Authorization Act for Fiscal Year 2016                  Authorization Act for Fiscal Year 2016,               by NHOs to qualify as HUBZone
                                           Amendments                                              Public Law 114–92, 129 Stat. 726,                     companies.
                                                                                                   November 25, 2015 (2016 NDAA). The                       In order to implement the changes
                                           AGENCY: U.S. Small Business                             2016 NDAA became effective on                         made by section 866 of the 2016 NDAA,
                                           Administration.                                         November 25, 2015. Section 866 of the                 SBA is amending §§ 126.103 and
                                           ACTION: Direct final rule.                              2016 NDAA made the following changes                  126.200 of its regulations.
                                                                                                   to the HUBZone program: authorized                       SBA is amending § 126.103 by
                                           SUMMARY:   This direct final rule contains
                                                                                                   Native Hawaiian Organizations (NHOs)                  revising the definitions of the terms
                                           several amendments to the regulations
                                                                                                   to own HUBZone small business                         ‘‘Base closure area’’, ‘‘HUBZone’’,
                                           governing the HUBZone Program. The
                                                                                                   concerns; expanded the definition of                  ‘‘HUBZone small business concern
                                           U.S. Small Business Administration
                                                                                                   ‘‘base closure area’’ under the HUBZone               (HUBZone SBC)’’, and ‘‘Qualified base
                                           (SBA) is making changes to its
                                                                                                   program; and authorized the inclusion                 closure area’’, and by adding new
                                           regulations to implement section 866 of
                                                                                                   of ‘‘qualified disaster areas’’ under the             definitions for the terms ‘‘Native
                                           the National Defense Authorization Act
                                                                                                   HUBZone program.                                      Hawaiian Organization (NHO)’’ and
                                           for Fiscal Year 2016 (2016 NDAA).                          SBA seeks to amend its HUBZone                     ‘‘Qualified disaster area’’. This rules
                                           Section 866 of the 2016 NDAA made the                   regulations to mirror the changes the                 adopts the definitions of these terms
                                           following changes to the HUBZone                        2016 NDAA made to the Small Business                  provided in amended sections 3(p)(1),
                                           program: authorized Native Hawaiian                     Act, and to avoid public confusion and                3(p)(3), 3(p)(4)(D), and new section
                                           Organizations to own HUBZone small                      possible misinterpretations of SBA’s                  3(p)(4)(E), of the Small Business Act, 15
                                           business concerns; expanded the                         HUBZone program. Since these are                      U.S.C. 632(p)(1), 632(p)(3), 632(p)(4)(D),
                                           definition of ‘‘base closure area’’ under               conforming amendments, with no                        632(p)(4)(E).
                                           the HUBZone program; and authorized                     extraneous interpretation or other                       SBA is amending § 126.200 by
                                           the inclusion of ‘‘qualified disaster                   expanded materials, SBA expects no                    revising paragraph (b)(1) to implement
                                           areas’’ under the HUBZone program.                      significant adverse comments. Based on                the statutory authority for HUBZone
                                           This direct final rule would implement                  that fact, SBA has decided to proceed                 small business concerns to be wholly or
                                           these changes in SBA’s regulations.                     with a direct final rule giving the public            partly owned by NHOs. This rule adopts
                                           DATES: This rule is effective on October                30 days to comment. If SBA receives a                 the language provided in new section
                                           3, 2016 without further action, unless                  significant adverse comment during the                3(p)(3)(D) of the Small Business Act, 15
                                           significant adverse comment is received                 comment period, SBA will withdraw                     U.S.C. 632(p)(3)(D).
                                           by September 6, 2016. If significant                    the rule, and proceed with a new
                                           adverse comment is received, SBA will                                                                         Compliance With Executive Orders
                                                                                                   proposed rule. The statute makes the                  12866, 12988, and 13132, the
                                           publish a timely withdrawal of the rule                 following changes:                                    Paperwork Reduction Act (44 U.S.C. Ch.
                                           in the Federal Register.                                   • General Summary—Expands the                      35) and the Regulatory Flexibility Act (5
                                           ADDRESSES: You may submit comments,                     HUBZone program to assist small                       U.S.C. 601–612)
                                           identified by RIN 3245–AG81 by any of                   businesses in disasters areas and base
                                           the following methods:                                  closure areas and provides equal                      Executive Order 12866
                                              • Federal Rulemaking Portal: http://                 treatment under the HUBZone program                      The Office of Management and Budget
                                           www.regulations.gov. Follow the                         for small businesses owned by NHOs.                   (OMB) has determined that this direct
                                           instructions for submitting comments.                      • ‘‘Major Disaster’’ Areas—Treats                  final rule does not constitute a
                                              • Mail or Hand Delivery/Courier:                     major disaster areas as HUBZones for a                significant regulatory action under
                                           Mariana Pardo, Director, HUBZone                        period of 5 years. Applies to census                  Executive Order 12866. This rule is also
                                           Program, 409 Third Street SW.,                          tracts and nonmetropolitan counties                   not a major rule under the
                                           Washington, DC 20416.                                   (NMC) located in ‘‘major disaster’’ areas,            Congressional Review Act, 5 U.S.C. 800.
                                              SBA will post all comments on http://                if such census tract or NMC lost its
                                           www.Regulations.gov. If you wish to                     HUBZone eligibility within the past 5                 Executive Order 12988
                                           submit confidential business                            years or will lose its HUBZone                           This action meets applicable
ehiers on DSK5VPTVN1PROD with RULES




                                           information (CBI) as defined in the User                eligibility within 2 years after the major            standards set forth in Sections 3(a) and
                                           Notice at http://www.Regulations.gov,                   disaster.                                             3(b)(2) of Executive Order 12988, Civil
                                           please submit the information to                           • ‘‘Catastrophic Incident’’ Areas—                 Justice Reform, to minimize litigation,
                                           Mariana Pardo, Director, HUBZone                        Treats areas where catastrophic                       eliminate ambiguity, and reduce
                                           Program, 409 Third Street SW.,                          incidents occurred as HUBZones for a                  burden. The action does not have
                                           Washington, DC 20416 and highlight the                  period of 10 years. Applies to census                 retroactive or preemptive effect.


                                      VerDate Sep<11>2014   13:37 Aug 03, 2016   Jkt 238001   PO 00000   Frm 00016   Fmt 4700   Sfmt 4700   E:\FR\FM\04AUR1.SGM   04AUR1


                                                             Federal Register / Vol. 81, No. 150 / Thursday, August 4, 2016 / Rules and Regulations                                        51313

                                           Executive Order 13132                                   Organization (NHO)’’ and ‘‘Qualified                     (3) A direct or indirect subsidiary
                                             For the purposes of Executive Order                   disaster area’’, to read as follows:                  corporation, joint venture, or
                                           13132, SBA has determined that this                                                                           partnership of an ANC qualifying
                                                                                                   § 126.103 What definitions are important
                                           direct final rule will not have                                                                               pursuant to section 29(e)(1) of the
                                                                                                   in the HUBZone program?
                                           substantial, direct effects on the States,                                                                    ANCSA, 43 U.S.C. 1626(e)(1)), if that
                                                                                                   *       *     *      *    *                           subsidiary, joint venture, or partnership
                                           on the relationship between the national                   Base closure area means:
                                           government and the States, or on the                                                                          is owned and controlled by Natives (as
                                                                                                      (1) Lands within the external
                                           distribution of power and                                                                                     determined pursuant to section 29(e)(2)
                                                                                                   boundaries of a military installation that
                                           responsibilities among the various                                                                            of the ANCSA, 43 U.S.C. 1626(e)(2));
                                                                                                   were closed through a privatization
                                           levels of government. Therefore, for the                                                                         (4) Wholly owned by one or more
                                                                                                   process under the authority of:
                                           purpose of Executive Order 13132,                          (i) The Defense Base Closure and                   Indian Tribal Governments, or by a
                                           Federalism, SBA has determined that                     Realignment Act of 1990 (part A of title              corporation that is wholly owned by one
                                           this direct final rule has no federalism                XXIX of division B of Pub. L. 101–510;                or more Indian Tribal Governments;
                                           implications warranting preparation of a                10 U.S.C. 2687 note);                                    (5) An SBC that is owned in part by
                                           federalism assessment.                                     (ii) Title II of the Defense                       one or more Indian Tribal Governments
                                                                                                   Authorization Amendments and Base                     or in part by a corporation that is wholly
                                           Paperwork Reduction Act, 44 U.S.C.,                     Closure and Realignment Act (Pub. L.                  owned by one or more Indian Tribal
                                           Ch. 35                                                  100–526; 10 U.S.C. 2687 note);                        Governments, if all other owners are
                                              SBA has determined that this direct                     (iii) 10 U.S.C. 2687; or                           either United States citizens or SBCs;
                                           final rule does not impose additional                      (iv) Any other provision of law                       (6) An SBC that is wholly owned by
                                           reporting or recordkeeping requirements                 authorizing or directing the Secretary of             a CDC or owned in part by one or more
                                           under the Paperwork Reduction Act, 44                   Defense or the Secretary of a military                CDCs, if all other owners are either
                                           U.S.C., Chapter 35.                                     department to dispose of real property                United States citizens or SBCs;
                                                                                                   at the military installation for purposes                (7) An SBC that is a small agricultural
                                           Regulatory Flexibility Act, 5 U.S.C. 601–               relating to base closures of                          cooperative organized or incorporated
                                           612                                                     redevelopment, while retaining the                    in the United States, wholly owned by
                                              The Regulatory Flexibility Act (RFA),                authority to enter into a leaseback of all            one or more small agricultural
                                           5 U.S.C. 601, requires administrative                   or a portion of the property for military             cooperatives organized or incorporated
                                           agencies to consider the effect of their                use;                                                  in the United States or owned in part by
                                           actions on small entities, small non-                      (2) The census tract or                            one or more small agricultural
                                           profit enterprises, and small local                     nonmetropolitan county (excluding any                 cooperatives organized or incorporated
                                           governments. Pursuant to the RFA,                       qualified census tract and any qualified              in the United States, provided that all
                                           when an agency issues a rulemaking,                     non-metropolitan county) in which the                 other owners are small business
                                           the agency must prepare a regulatory                    lands described in paragraph (1) of this              concerns or United States citizens;
                                           flexibility analysis which describes the                definition are wholly contained;                         (8) Wholly owned by one or more
                                           impact of the rule on small entities.                      (3) A census tract or nonmetropolitan              Native Hawaiian Organizations, or by a
                                           However, section 605 of the RFA allows                  county (excluding any qualified census                corporation that is wholly owned by one
                                           an agency to certify a rule, in lieu of                 tract and any qualified non-                          or more Native Hawaiian Organizations;
                                           preparing an analysis, if the rulemaking                metropolitan county) the boundaries of                or
                                           is not expected to have a significant                   which intersect the area described in                    (9) Owned in part by one or more
                                           economic impact on a substantial                        paragraph (1) of this definition; and                 Native Hawaiian Organizations or by a
                                           number of small entities. Within the                       (4) A census tract or nonmetropolitan              corporation that is wholly owned by one
                                           meaning of RFA, SBA certifies that this                 county (excluding any qualified census                or more Native Hawaiian Organizations,
                                           direct rule will not have a significant                 tract and any qualified non-                          if all other owners are either United
                                           economic impact on a substantial                        metropolitan county) the boundaries of                States citizens or small business
                                           number of small entities.                               which are contiguous to the area                      concerns.
                                                                                                   described in paragraph (2) or paragraph               *      *     *     *    *
                                           List of Subjects in 13 CFR Part 126                     (3) of this definition.                                  Native Hawaiian Organization (NHO)
                                             Administrative practice and                           *       *     *      *    *                           means any community service
                                           procedure, Government procurement,                         HUBZone means a historically                       organization serving Native Hawaiians
                                           Small businesses.                                       underutilized business zone, which is                 in the State of Hawaii which is a not-
                                             Accordingly, for the reasons stated in                an area located within one or more:                   for-profit organziation chartered by the
                                           the supplementary information, SBA                         (1) Qualified census tracts;                       State of Hawaii, is controlled by Native
                                           amends 13 CFR part 126 as follows:                         (2) Qualified non-metropolitan                     Hawaiians, and whose business
                                                                                                   counties;                                             activities will principally benefit such
                                           PART 126—HUBZONE PROGRAM                                   (3) Lands within the external                      Native Hawaiians.
                                                                                                   boundaries of an Indian reservation;
                                           ■ 1. The authority for 13 CFR part 126                     (4) Qualified base closure areas;                  *      *     *     *    *
                                           continues to read as follows:                              (5) Redesignated areas; or                            Qualified base closure area means:
                                                                                                      (6) Qualified disaster areas.                         (1) A base closure area that is treated
                                             Authority: 15 U.S.C. 632(a), 632(j), 632(p),
                                                                                                      HUBZone small business concern                     as a HUBZone for a period of not less
                                           644 and 657a.
                                                                                                   (HUBZone SBC) means an SBC that is:                   than 8 years, beginning on the date the
                                           ■ 2. Amend § 126.103 by revising the                       (1) At least 51% owned and                         military installation undergoes final
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                                           definitions of ‘‘Base closure area’’,                   controlled by 1 or more persons, each of              closure and ending on the latter of the
                                           ‘‘HUBZone’’, ‘‘HUBZone small business                   whom is a United States citizen;                      following:
                                           concern (HUBZone SBC)’’, and                               (2) An ANC owned and controlled by                    (i) The date the Administrator makes
                                           ‘‘Qualified base closure area’’ and by                  Natives (as determined pursuant to                    a final determination as to whether or
                                           adding new definitions alphabetically                   section 29(e)(1) of the ANCSA, 43 U.S.C.              not to implement the applicable
                                           for the terms ‘‘Native Hawaiian                         1626(e)(1));                                          designations in accordance with the


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                                           51314             Federal Register / Vol. 81, No. 150 / Thursday, August 4, 2016 / Rules and Regulations

                                           results of the decennial census                         States citizen and 50% by someone who is              wiring of the solenoid of the level
                                           conducted after the area was initially                  not a United States citizen, is not an eligible       control pilot valve, the reed switch of
                                           designated as a base closure area; or                   concern because it is not at least 51% owned          the main tank overflow valve, the level
                                              (ii) The date 8 years after the base                 by United States citizens.                            float switch of the collector tank, and
                                           closure area was initially designated as                   (ii) The concern must be an ANC                    the solenoid of the main tank fueling
                                           a HUBZone.                                              owned and controlled by Natives                       shut-off valve, as applicable. This AD
                                              (2) However, if a base closure area                  (determined pursuant to section 29(e)(1)              also requires accomplishing concurrent
                                           was treated as a HUBZone at any time                    of the ANCSA); or a direct or indirect                actions and revising the airplane
                                           after 2010, it shall be treated as a                    subsidiary corporation, joint venture, or             maintenance or inspection program, as
                                           HUBZone until such time as the                          partnership of an ANC qualifying                      applicable, by incorporating fuel
                                           Administrator makes a final                             pursuant to section 29(e)(1) of ANCSA,                airworthiness limitation items and
                                           determination as to whether or not to                   if that subsidiary, joint venture, or                 critical design configuration control
                                           implement the applicable designations                   partnership is owned and controlled by                limitations (CDCCLs). We are issuing
                                           in accordance with the results of the                   Natives (determined pursuant to section               this AD to prevent an ignition source in
                                           2020 decennial census.                                  29(e)(2)) of the ANCSA);                              the main fuel tank vapor space, which
                                           *       *    *     *     *                                 (iii) The concern must be wholly                   could result in a fuel tank explosion and
                                              Qualified disaster area means any                    owned by one or more NHOs, or by a                    consequent loss of the airplane.
                                           census tract or nonmetropolitan county                  corporation that is wholly owned by one               DATES: This AD is effective September 8,
                                           located in an area for which the                        or more NHOs, or owned in part by one
                                           President has declared a major disaster                                                                       2016.
                                                                                                   or more NHOs, if all other owners are
                                           under section 401 of the Robert T.                                                                               The Director of the Federal Register
                                                                                                   either United States citizens or small
                                           Stafford Disaster Relief and Emergency                                                                        approved the incorporation by reference
                                                                                                   business concerns; or
                                           Assistance Act (42 U.S.C. 5170), or                                                                           of certain publications listed in this AD
                                                                                                      (iv) The concern must be wholly
                                           located in an area in which a                                                                                 as of September 8, 2016.
                                                                                                   owned by a CDC, or owned in part by
                                           catastrophic incident has occurred if                   one or more CDCs, if all other owners                 ADDRESSES: For service information
                                           such census tract or nonmetropolitan                    are either United States citizens or                  identified in this final rule, contact
                                           county ceased to be categorized as either               SBCs.                                                 Fokker Services B.V., Technical
                                           a qualified census tract or qualified                                                                         Services Dept., P.O. Box 1357, 2130 EL
                                                                                                   *       *    *    *     *
                                           nonmetropolitan county, as applicable,                                                                        Hoofddorp, the Netherlands; telephone
                                           during the period beginning 5 years                      Dated: July 22, 2016.                                +31 (0)88–6280–350; fax +31 (0)88–
                                           before the date on which the President                  Maria Contreras-Sweet,                                6280–111; email technicalservices@
                                           declared the major disaster or the                      Administrator.                                        fokker.com; Internet http://
                                           catastrophic incident occurred and                      [FR Doc. 2016–18251 Filed 8–3–16; 8:45 am]            www.myfokkerfleet.com. You may view
                                           ending 2 years after such date. However,                BILLING CODE 8025–01–P                                this referenced service information at
                                           the following exceptions apply:                                                                               the FAA, Transport Airplane
                                              (1) In the case of a major disaster                                                                        Directorate, 1601 Lind Avenue SW.,
                                           declared by the President, a census tract                                                                     Renton, WA. For information on the
                                           or nonmetropolitan county may be a                      DEPARTMENT OF TRANSPORTATION
                                                                                                                                                         availability of this material at the FAA,
                                           qualified disaster area only during the 5-              Federal Aviation Administration                       call 425–227–1221. It is also available
                                           year period beginning on the date on                                                                          on the Internet at http://
                                           which the President declared the major                  14 CFR Part 39                                        www.regulations.gov by searching for
                                           disaster for the area in which the census                                                                     and locating Docket No. FAA–2015–
                                           tract or nonmetropolitan county is                      [Docket No. FAA–2015–8472; Directorate                8472.
                                           located; and                                            Identifier 2014–NM–106–AD; Amendment
                                              (2) In the case of a catastrophic                    39–18603; AD 2016–16–05]                              Examining the AD Docket
                                           incident, a census tract or
                                                                                                   RIN 2120–AA64                                           You may examine the AD docket on
                                           nonmetropolitan county may be a
                                                                                                                                                         the Internet at http://
                                           qualified disaster area only during the                 Airworthiness Directives; Fokker                      www.regulations.gov by searching for
                                           10-year period beginning on the date on                 Services B.V. Airplanes                               and locating Docket No. FAA–2015–
                                           which the catastrophic incident
                                                                                                   AGENCY:  Federal Aviation                             8472; or in person at the Docket
                                           occurred in the area in which the census
                                                                                                   Administration (FAA), Department of                   Management Facility between 9 a.m.
                                           tract or nonmetropolitan county is
                                                                                                   Transportation (DOT).                                 and 5 p.m., Monday through Friday,
                                           located.
                                                                                                                                                         except Federal holidays. The AD docket
                                           *       *    *     *     *                              ACTION: Final rule.
                                                                                                                                                         contains this AD, the regulatory
                                           ■ 3. Amend § 126.200 by revising                                                                              evaluation, any comments received, and
                                           paragraph (b)(1) to read as follows:                    SUMMARY:   We are adopting a new
                                                                                                   airworthiness directive (AD) for all                  other information. The street address for
                                           § 126.200 What requirements must a                      Fokker Services B.V. Model F.28 Mark                  the Docket Office (telephone 800–647–
                                           concern meet to receive SBA certification               1000, 2000, 3000, and 4000 airplanes.                 5527) is Docket Management Facility,
                                           as a qualified HUBZone SBC?                             This AD was prompted by a design                      U.S. Department of Transportation,
                                           *      *    *    *    *                                 review that revealed a hot spot may                   Docket Operations, M–30, West
                                              (b) Concerns owned by U.S. citizens,                 develop in the main fuel tank under                   Building Ground Floor, Room W12–140,
                                           ANCs, NHOs, or CDCs.—(1) Ownership.                     certain failure conditions of the                     1200 New Jersey Avenue SE.,
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                                           (i) The concern must be at least 51%                    solenoid of the level control pilot valve,            Washington, DC 20590.
                                           unconditionally and directly owned and                  the reed switch of the main tank                      FOR FURTHER INFORMATION CONTACT: Tom
                                           controlled by persons who are United                    overflow valve, the level float switch of             Rodriguez, Aerospace Engineer,
                                           States citizens;                                        the collector tank, or the solenoid of the            International Branch, ANM–116,
                                             Example: A concern that is a partnership              main tank fueling shut-off valve. This                Transport Airplane Directorate, FAA,
                                           owned 50% by an individual who is a United              AD requires installing fuses in the                   1601 Lind Avenue SW., Renton, WA


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Document Created: 2016-08-04 02:53:31
Document Modified: 2016-08-04 02:53:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionDirect final rule.
DatesThis rule is effective on October 3, 2016 without further action, unless significant adverse comment is received by September 6, 2016. If significant adverse comment is received, SBA will publish a timely withdrawal of the rule in the Federal Register.
ContactMariana Pardo, Director, HUBZone Program, 409 Third Street SW., Washington, DC 20416, 202-205-2985, [email protected]
FR Citation81 FR 51312 
RIN Number3245-AG81
CFR AssociatedAdministrative Practice and Procedure; Government Procurement and Small Businesses

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