82_FR_11187 82 FR 11154 - VA Veteran-Owned Small Business Verification Guidelines

82 FR 11154 - VA Veteran-Owned Small Business Verification Guidelines

DEPARTMENT OF VETERANS AFFAIRS

Federal Register Volume 82, Issue 33 (February 21, 2017)

Page Range11154-11155
FR Document2017-03331

This document implements a portion of the Veterans Benefits, Health Care, and Information Technology Act of 2006, which requires the Department of Veterans Affairs (VA) to verify ownership and control of veteran-owned small businesses (VOSB), including service-disabled veteran-owned small businesses (SDVOSB) in order for these firms to participate in VA acquisitions set-aside for SDVOSB/VOSBs. This interim final rule contains a minor revision to require re-verification of SDVOSB/VOSB status only every three years rather than biennially. The purpose of this change is to reduce the administrative burden on SDVOSB/VOSBs regarding participation in VA acquisitions set asides for these types of firms.

Federal Register, Volume 82 Issue 33 (Tuesday, February 21, 2017)
[Federal Register Volume 82, Number 33 (Tuesday, February 21, 2017)]
[Rules and Regulations]
[Pages 11154-11155]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03331]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 74

RIN 2900-AP93


VA Veteran-Owned Small Business Verification Guidelines

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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

SUMMARY: This document implements a portion of the Veterans Benefits, 
Health Care, and Information Technology Act of 2006, which requires the 
Department of Veterans Affairs (VA) to verify ownership and control of 
veteran-owned small businesses (VOSB), including service-disabled 
veteran-owned small businesses (SDVOSB) in order for these firms to 
participate in VA acquisitions set-aside for SDVOSB/VOSBs. This interim 
final rule contains a minor revision to require re-verification of 
SDVOSB/VOSB status only every three years rather than biennially. The 
purpose of this change is to reduce the administrative burden on 
SDVOSB/VOSBs regarding participation in VA acquisitions set asides for 
these types of firms.

DATES: 
    Effective Date: February 21, 2017.
    Comment Date: Comments must be received on or before April 24, 
2017.

ADDRESSES: Written comments may be submitted by: Mail or hand-delivery 
to Director, Regulations Management (00REG1), Department of Veterans 
Affairs, 810 Vermont Ave. NW., Room 1068, Washington, DC 20420; fax to 
(202) 273-9026; or email through http://www.Regulations.gov. Comments 
should indicate that they are submitted in response to ``RIN 2900-
AP93--VA Veteran-Owned Small Business Verification Guidelines.'' All 
comments received will be available for public inspection in the Office 
of Regulation Policy and Management, Room 1063B, between the hours of 8 
a.m. and 4:30 p.m., Monday through Friday (except holidays). Please 
call (202) 273-9515 for an appointment.

FOR FURTHER INFORMATION CONTACT: Thomas McGrath, Director, Center for 
Verification and Evaluation (00VE), Department of Veterans Affairs, 810 
Vermont Ave. NW., Washington DC 20420, phone (202) 461-4300.

SUPPLEMENTARY INFORMATION: In a final rule published in the Federal 
Register on February 8, 2010, (73 FR 6098), VA established new 38 CFR 
part 74 setting forth a mechanism for verifying ownership and control 
of VOSBs, including SDVOSBs. At that time, with respect to 38 CFR 
74.15, VA anticipated that annual examinations were necessary to ensure 
the integrity of the Verification Program. This was deemed consistent 
with the annual Federal size and status recertification requirement in 
the Central Contractor Registry. In June 2012, the period was extended 
to two years. Subsequently, VA has determined that a three-year 
eligibility period is warranted.
    In administering this program since February 2010, VA has concluded 
that an annual examination is not necessary to adequately maintain the 
integrity of the program and proposes a 3-year eligibility period. This 
change is appropriate because VA conducts a robust examination of 
personal and company documentation to verify ownership and control by 
Veterans of applicant businesses. In addition to verifying individual 
owners' service-disabled veteran status or veteran status, in 
accordance with 38 CFR 74.20(b), VA reviews an applicant's financial 
statements; Federal personal and business tax returns; personal history 
statements; articles of incorporation/organization; corporate by-laws 
or operating agreements; organizational, annual and board/member 
meeting records; stock ledgers and certificates; State-issued 
certificates of good standing; contract, lease and loan agreements; 
payroll records; bank account signature cards; and licenses. Given the 
depth of this review, annual or biennial re-verification examinations 
have become an unnecessary administrative burden on both applicants/
participants and VA.
    Given this extensive initial examination, VA is confident that the 
integrity of the verification program will not be compromised by 
establishing a 3-year eligibility period. This is borne out by fiscal 
year 2016 data that shows that out of 1,109 reverification 
applications, only ten were denied. Therefore, only 0.9 percent of 
firms submitting reverification applications were found to be 
ineligible after two years. Other integrity aspects of the program 
remain adequate to oversee a 3-year eligibility period. Once verified, 
38 CFR 74.15(a) mandates that the participant must maintain its 
eligibility during its tenure and, if ownership or control changes 
occur, must inform VA's Center for Verification and Evaluation (CVE) of 
any changes that would adversely affect its eligibility. Moreover, in 
accordance with 38 CFR part 74.20(a), VA has the right to conduct 
random, unannounced site examinations of participants or to conduct a 
further examination upon receipt of specific and credible information 
that a participant is no longer eligible. Lastly, in the course of 
specific SDVOSB/VOSB set-aside acquisitions, VA contracting officers 
and also competing SDVOSB/VOSBs have the right to raise a SDVOSB/VOSB 
status protest to VA's Office of Small and Disadvantaged Business 
Utilization (OSDBU) if either has a reasonable basis upon which to 
challenge the SDVOSB/VOSB status of a verified firm.
    Establishment of a longer, 3-year eligibility period is consistent 
with other Federal set-aside programs. With respect to the Historically 
Underutilized Business Zone (HUBZone) small business certification 
program, U.S. Small Business Administration (SBA) regulations at 13 CFR 
126.500 require that any qualified HUBZone small business concern 
seeking to remain on the HUBZone approved list must recertify every 3 
years with SBA. With regard to SBA's Section 8(a) Business Development 
program, SBA authorizes a program term of up to 9 years in 13 CFR 
124.2. For VA's SDVOSB/VOSB verification program, VA has now determined 
that a program term of 3 years is reasonable given the mandatory nature 
of VA's SDVOSB/VOSB set-aside authority in contrast to the 
discretionary nature of the HUBZone and Section 8(a) set-aside 
programs. In accordance with 38 U.S.C. 8127 and VA Acquisition 
Regulation, 48 CFR part 819, VA is required to set aside any open 
market procurement for SDVOSBs and then VOSBs, first and second 
respectively, if two or more such concerns are reasonably anticipated 
to submit offers at fair and reasonable pricing. Given the large volume 
of appropriated funds subject to these set-aside requirements, a 3-year 
eligibility period prior to re-examination is deemed reasonable to 
adequately balance the burden on SDVOSB/VOSBs and to protect the 
integrity of the program.

Administrative Procedure Act

    The Secretary of Veterans Affairs finds good cause to issue this 
interim final rule prior to notice and comment procedures. The interim 
rule makes a minor modification to extend the eligibility period for 
SDVOSB/VOSBs after VA's initial robust verification examination and 
approval from 2 years to 3 years. The rule will reduce the

[[Page 11155]]

administrative burden on SDVOSB/VOSB participants by extending the re-
verification submissions. The integrity of the program remains 
protected by the initial robust and detailed verification examination, 
the regulatory requirement of participants to report changes to 
ownership and control during their eligibility period, VA's authority 
to conduct random site examinations and to re-examine eligibility upon 
receipt of any reasonably credible information affecting SDVOSB/VOSB 
verified status, and, for individual acquisitions, the status protest 
process, where VA contracting officers or competing vendors can 
challenge the SDVOSB/VOSB status of offerors if a reasonable basis can 
be asserted to be decided by VA OSDBU on SDVOSB/VOSB set-aside 
acquisitions.
    For these reasons, the Secretary of Veterans Affairs is issuing 
this as an interim final rule. In view of the detrimental effects of 
continuing an unnecessary administrative burden on program participants 
and verifying officials, and to avoid delays in verification caused by 
repetitive biennial reviews, the Secretary finds it is impracticable, 
unnecessary, and contrary to public interest to delay the effective 
date of this regulation for the purpose of soliciting advance public 
comment. The Secretary of Veterans Affairs will consider and address 
comments that are received within 60 days of the date this interim 
final rule is published in the Federal Register.
    For these same reasons, and because this interim final rule 
relieves a restriction, the Secretary finds that this rule will be 
effective on the date of publication.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601-612, applies to this 
final rule. This interim final rule is generally neutral in its effect 
on small businesses because it relates only to small businesses 
applying for verified status in VA's SDVOSB/VOSB verified database. The 
overall impact of the rule will benefit small businesses owned by 
veterans or service-disabled veterans because it will reduce their 
administrative burden associated with maintaining verified status by 
extending the need for re-verification by VA from 2 years to 3 years. 
VA has estimated the cost to an individual business to be null. 
Increasing the verification period will decrease the frequency of any 
costs. On this basis, the Secretary certifies that the adoption of this 
interim final rule would not have a significant economic impact on a 
substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore, under 5 U.S.C. 
605(b), this regulation is exempt from the initial and final regulatory 
flexibility analysis requirements of sections 603 and 604.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' which requires review by the Office 
of Management and Budget (OMB), as ``any regulatory action that is 
likely to result in a rule that may: (1) Have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined and it has 
been determined not to be a significant regulatory action under 
Executive Order 12866.
    VA has already established the SDVOSB/VOSB verification program in 
regulation at 38 CFR part 74, and the minor change in this interim 
final rule will modify the term of eligibility after initial 
verification from 2 years to 3 years before re-verification would be 
required.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any given year. This interim final rule would have no 
such effect on State, local, and tribal governments, or on the private 
sector.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Catalog of Federal Domestic Assistance

    This interim final rule affects the verification guidelines of 
veteran-owned small businesses, for which there is no Catalog of 
Federal Domestic Assistance program number.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Gina S. 
Farrisee, Deputy Chief of Staff, Department of Veterans Affairs, 
approved this document on February 15, 2017 for publication.

List of Subjects in 38 CFR Part 74

    Administrative practice and procedures, Privacy, Reporting and 
recordkeeping requirements, Small business, Veteran, Veteran-owned 
small business, Verification.

    Approved: February 15, 2017.
Jeffrey Martin,
Office Program Manager, Office of Regulation Policy & Management, 
Office of the Secretary, Department of Veterans Affairs.

    For the reasons set out in the preamble, VA amends 38 CFR part 74 
as follows:

PART 74--VETERANS SMALL BUSINESS REGULATIONS

0
1. The authority citation for part 74 continues to read as follows:

    Authority:  38 U.S.C. 501, 513, and as noted in specific 
sections.


Sec.  74.15   [Amended]

0
2. Section 74.15(a) is amended by removing ``2 years'' and adding, in 
its place, ``3 years''.

[FR Doc. 2017-03331 Filed 2-17-17; 8:45 am]
 BILLING CODE 8320-01-P



                                             11154            Federal Register / Vol. 82, No. 33 / Tuesday, February 21, 2017 / Rules and Regulations

                                               Approved: February 15, 2017.                          Vermont Ave. NW., Washington DC                       occur, must inform VA’s Center for
                                             Jeffrey Martin,                                         20420, phone (202) 461–4300.                          Verification and Evaluation (CVE) of
                                             Office Program Manager, Office of Regulation            SUPPLEMENTARY INFORMATION: In a final                 any changes that would adversely affect
                                             Policy & Management, Office of the Secretary,           rule published in the Federal Register                its eligibility. Moreover, in accordance
                                             Department of Veterans Affairs.                         on February 8, 2010, (73 FR 6098), VA                 with 38 CFR part 74.20(a), VA has the
                                             [FR Doc. 2017–03329 Filed 2–17–17; 8:45 am]             established new 38 CFR part 74 setting                right to conduct random, unannounced
                                             BILLING CODE 8320–01–P                                  forth a mechanism for verifying                       site examinations of participants or to
                                                                                                     ownership and control of VOSBs,                       conduct a further examination upon
                                                                                                     including SDVOSBs. At that time, with                 receipt of specific and credible
                                             DEPARTMENT OF VETERANS                                  respect to 38 CFR 74.15, VA anticipated               information that a participant is no
                                             AFFAIRS                                                 that annual examinations were                         longer eligible. Lastly, in the course of
                                                                                                     necessary to ensure the integrity of the              specific SDVOSB/VOSB set-aside
                                             38 CFR Part 74                                                                                                acquisitions, VA contracting officers
                                                                                                     Verification Program. This was deemed
                                             RIN 2900–AP93                                           consistent with the annual Federal size               and also competing SDVOSB/VOSBs
                                                                                                     and status recertification requirement in             have the right to raise a SDVOSB/VOSB
                                             VA Veteran-Owned Small Business                         the Central Contractor Registry. In June              status protest to VA’s Office of Small
                                             Verification Guidelines                                 2012, the period was extended to two                  and Disadvantaged Business Utilization
                                                                                                     years. Subsequently, VA has determined                (OSDBU) if either has a reasonable basis
                                             AGENCY:    Department of Veterans Affairs.                                                                    upon which to challenge the SDVOSB/
                                                                                                     that a three-year eligibility period is
                                             ACTION:   Interim final rule.                           warranted.                                            VOSB status of a verified firm.
                                                                                                                                                              Establishment of a longer, 3-year
                                             SUMMARY:    This document implements a                     In administering this program since
                                                                                                                                                           eligibility period is consistent with
                                             portion of the Veterans Benefits, Health                February 2010, VA has concluded that
                                                                                                                                                           other Federal set-aside programs. With
                                             Care, and Information Technology Act                    an annual examination is not necessary
                                                                                                                                                           respect to the Historically Underutilized
                                             of 2006, which requires the Department                  to adequately maintain the integrity of
                                                                                                                                                           Business Zone (HUBZone) small
                                             of Veterans Affairs (VA) to verify                      the program and proposes a 3-year
                                                                                                                                                           business certification program, U.S.
                                             ownership and control of veteran-                       eligibility period. This change is
                                                                                                                                                           Small Business Administration (SBA)
                                             owned small businesses (VOSB),                          appropriate because VA conducts a
                                                                                                                                                           regulations at 13 CFR 126.500 require
                                             including service-disabled veteran-                     robust examination of personal and                    that any qualified HUBZone small
                                             owned small businesses (SDVOSB) in                      company documentation to verify                       business concern seeking to remain on
                                             order for these firms to participate in                 ownership and control by Veterans of                  the HUBZone approved list must
                                             VA acquisitions set-aside for SDVOSB/                   applicant businesses. In addition to                  recertify every 3 years with SBA. With
                                             VOSBs. This interim final rule contains                 verifying individual owners’ service-                 regard to SBA’s Section 8(a) Business
                                             a minor revision to require re-                         disabled veteran status or veteran status,            Development program, SBA authorizes a
                                             verification of SDVOSB/VOSB status                      in accordance with 38 CFR 74.20(b), VA                program term of up to 9 years in 13 CFR
                                             only every three years rather than                      reviews an applicant’s financial                      124.2. For VA’s SDVOSB/VOSB
                                             biennially. The purpose of this change                  statements; Federal personal and                      verification program, VA has now
                                             is to reduce the administrative burden                  business tax returns; personal history                determined that a program term of 3
                                             on SDVOSB/VOSBs regarding                               statements; articles of incorporation/                years is reasonable given the mandatory
                                             participation in VA acquisitions set                    organization; corporate by-laws or                    nature of VA’s SDVOSB/VOSB set-aside
                                             asides for these types of firms.                        operating agreements; organizational,                 authority in contrast to the discretionary
                                                                                                     annual and board/member meeting                       nature of the HUBZone and Section 8(a)
                                             DATES:
                                                                                                     records; stock ledgers and certificates;              set-aside programs. In accordance with
                                                Effective Date: February 21, 2017.                   State-issued certificates of good
                                                Comment Date: Comments must be                                                                             38 U.S.C. 8127 and VA Acquisition
                                                                                                     standing; contract, lease and loan                    Regulation, 48 CFR part 819, VA is
                                             received on or before April 24, 2017.                   agreements; payroll records; bank                     required to set aside any open market
                                             ADDRESSES: Written comments may be                      account signature cards; and licenses.                procurement for SDVOSBs and then
                                             submitted by: Mail or hand-delivery to                  Given the depth of this review, annual                VOSBs, first and second respectively, if
                                             Director, Regulations Management                        or biennial re-verification examinations              two or more such concerns are
                                             (00REG1), Department of Veterans                        have become an unnecessary                            reasonably anticipated to submit offers
                                             Affairs, 810 Vermont Ave. NW., Room                     administrative burden on both                         at fair and reasonable pricing. Given the
                                             1068, Washington, DC 20420; fax to                      applicants/participants and VA.                       large volume of appropriated funds
                                             (202) 273–9026; or email through http://                   Given this extensive initial                       subject to these set-aside requirements,
                                             www.Regulations.gov. Comments                           examination, VA is confident that the                 a 3-year eligibility period prior to re-
                                             should indicate that they are submitted                 integrity of the verification program will            examination is deemed reasonable to
                                             in response to ‘‘RIN 2900–AP93—VA                       not be compromised by establishing a 3-               adequately balance the burden on
                                             Veteran-Owned Small Business                            year eligibility period. This is borne out            SDVOSB/VOSBs and to protect the
                                             Verification Guidelines.’’ All comments                 by fiscal year 2016 data that shows that              integrity of the program.
                                             received will be available for public                   out of 1,109 reverification applications,
                                             inspection in the Office of Regulation                  only ten were denied. Therefore, only                 Administrative Procedure Act
                                             Policy and Management, Room 1063B,                      0.9 percent of firms submitting                          The Secretary of Veterans Affairs
                                             between the hours of 8 a.m. and 4:30                    reverification applications were found                finds good cause to issue this interim
                                             p.m., Monday through Friday (except                     to be ineligible after two years. Other               final rule prior to notice and comment
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                                             holidays). Please call (202) 273–9515 for               integrity aspects of the program remain               procedures. The interim rule makes a
                                             an appointment.                                         adequate to oversee a 3-year eligibility              minor modification to extend the
                                             FOR FURTHER INFORMATION CONTACT:                        period. Once verified, 38 CFR 74.15(a)                eligibility period for SDVOSB/VOSBs
                                             Thomas McGrath, Director, Center for                    mandates that the participant must                    after VA’s initial robust verification
                                             Verification and Evaluation (00VE),                     maintain its eligibility during its tenure            examination and approval from 2 years
                                             Department of Veterans Affairs, 810                     and, if ownership or control changes                  to 3 years. The rule will reduce the


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                                                              Federal Register / Vol. 82, No. 33 / Tuesday, February 21, 2017 / Rules and Regulations                                              11155

                                             administrative burden on SDVOSB/                        Flexibility Act, 5 U.S.C. 601–612.                    expenditure by State, local, and tribal
                                             VOSB participants by extending the re-                  Therefore, under 5 U.S.C. 605(b), this                governments, in the aggregate, or by the
                                             verification submissions. The integrity                 regulation is exempt from the initial and             private sector, of $100 million or more
                                             of the program remains protected by the                 final regulatory flexibility analysis                 (adjusted annually for inflation) in any
                                             initial robust and detailed verification                requirements of sections 603 and 604.                 given year. This interim final rule
                                             examination, the regulatory requirement                                                                       would have no such effect on State,
                                                                                                     Executive Orders 12866 and 13563
                                             of participants to report changes to                                                                          local, and tribal governments, or on the
                                             ownership and control during their                         Executive Orders 12866 and 13563                   private sector.
                                             eligibility period, VA’s authority to                   direct agencies to assess the costs and
                                             conduct random site examinations and                    benefits of available regulatory                      Paperwork Reduction Act
                                             to re-examine eligibility upon receipt of               alternatives and, when regulation is
                                                                                                     necessary, to select regulatory                         This document contains no provisions
                                             any reasonably credible information
                                             affecting SDVOSB/VOSB verified status,                  approaches that maximize net benefits                 constituting a collection of information
                                             and, for individual acquisitions, the                   (including potential economic,                        under the Paperwork Reduction Act of
                                             status protest process, where VA                        environmental, public health and safety               1995 (44 U.S.C. 3501–3521).
                                             contracting officers or competing                       effects, and other advantages;                        Catalog of Federal Domestic Assistance
                                             vendors can challenge the SDVOSB/                       distributive impacts; and equity).
                                             VOSB status of offerors if a reasonable                 Executive Order 13563 (Improving                        This interim final rule affects the
                                             basis can be asserted to be decided by                  Regulation and Regulatory Review)                     verification guidelines of veteran-owned
                                             VA OSDBU on SDVOSB/VOSB set-aside                       emphasizes the importance of                          small businesses, for which there is no
                                             acquisitions.                                           quantifying both costs and benefits,                  Catalog of Federal Domestic Assistance
                                                For these reasons, the Secretary of                  reducing costs, harmonizing rules, and                program number.
                                             Veterans Affairs is issuing this as an                  promoting flexibility. Executive Order
                                             interim final rule. In view of the                      12866 (Regulatory Planning and                        Signing Authority
                                             detrimental effects of continuing an                    Review) defines a ‘‘significant
                                                                                                     regulatory action,’’ which requires                     The Secretary of Veterans Affairs, or
                                             unnecessary administrative burden on
                                                                                                     review by the Office of Management and                designee, approved this document and
                                             program participants and verifying
                                                                                                     Budget (OMB), as ‘‘any regulatory action              authorized the undersigned to sign and
                                             officials, and to avoid delays in
                                             verification caused by repetitive                       that is likely to result in a rule that may:          submit the document to the Office of the
                                             biennial reviews, the Secretary finds it                (1) Have an annual effect on the                      Federal Register for publication
                                             is impracticable, unnecessary, and                      economy of $100 million or more or                    electronically as an official document of
                                             contrary to public interest to delay the                adversely affect in a material way the                the Department of Veterans Affairs. Gina
                                             effective date of this regulation for the               economy, a sector of the economy,                     S. Farrisee, Deputy Chief of Staff,
                                             purpose of soliciting advance public                    productivity, competition, jobs, the                  Department of Veterans Affairs,
                                             comment. The Secretary of Veterans                      environment, public health or safety, or              approved this document on February
                                             Affairs will consider and address                       State, local, or tribal governments or                15, 2017 for publication.
                                             comments that are received within 60                    communities; (2) Create a serious                     List of Subjects in 38 CFR Part 74
                                             days of the date this interim final rule                inconsistency or otherwise interfere
                                             is published in the Federal Register.                   with an action taken or planned by                      Administrative practice and
                                                For these same reasons, and because                  another agency; (3) Materially alter the              procedures, Privacy, Reporting and
                                             this interim final rule relieves a                      budgetary impact of entitlements,                     recordkeeping requirements, Small
                                             restriction, the Secretary finds that this              grants, user fees, or loan programs or the            business, Veteran, Veteran-owned small
                                             rule will be effective on the date of                   rights and obligations of recipients                  business, Verification.
                                             publication.                                            thereof; or (4) Raise novel legal or policy
                                                                                                                                                             Approved: February 15, 2017.
                                             Regulatory Flexibility Act                              issues arising out of legal mandates, the
                                                                                                     President’s priorities, or the principles             Jeffrey Martin,
                                               The Regulatory Flexibility Act, 5                     set forth in this Executive Order.’’                  Office Program Manager, Office of Regulation
                                             U.S.C. 601–612, applies to this final                      The economic, interagency,                         Policy & Management, Office of the Secretary,
                                             rule. This interim final rule is generally              budgetary, legal, and policy                          Department of Veterans Affairs.
                                             neutral in its effect on small businesses               implications of this regulatory action
                                             because it relates only to small                                                                                For the reasons set out in the
                                                                                                     have been examined and it has been
                                             businesses applying for verified status                                                                       preamble, VA amends 38 CFR part 74 as
                                                                                                     determined not to be a significant
                                             in VA’s SDVOSB/VOSB verified                                                                                  follows:
                                                                                                     regulatory action under Executive Order
                                             database. The overall impact of the rule                12866.
                                             will benefit small businesses owned by                                                                        PART 74—VETERANS SMALL
                                                                                                        VA has already established the
                                             veterans or service-disabled veterans                                                                         BUSINESS REGULATIONS
                                                                                                     SDVOSB/VOSB verification program in
                                             because it will reduce their                            regulation at 38 CFR part 74, and the
                                             administrative burden associated with                   minor change in this interim final rule               ■ 1. The authority citation for part 74
                                             maintaining verified status by extending                will modify the term of eligibility after             continues to read as follows:
                                             the need for re-verification by VA from                 initial verification from 2 years to 3                  Authority: 38 U.S.C. 501, 513, and as
                                             2 years to 3 years. VA has estimated the                years before re-verification would be                 noted in specific sections.
                                             cost to an individual business to be null.              required.
                                             Increasing the verification period will                                                                       § 74.15    [Amended]
rmajette on DSK2TPTVN1PROD with RULES




                                             decrease the frequency of any costs. On                 Unfunded Mandates
                                             this basis, the Secretary certifies that the               The Unfunded Mandates Reform Act                   ■ 2. Section 74.15(a) is amended by
                                             adoption of this interim final rule would               of 1995 requires, at 2 U.S.C. 1532, that              removing ‘‘2 years’’ and adding, in its
                                             not have a significant economic impact                  agencies prepare an assessment of                     place, ‘‘3 years’’.
                                             on a substantial number of small entities               anticipated costs and benefits before                 [FR Doc. 2017–03331 Filed 2–17–17; 8:45 am]
                                             as they are defined in the Regulatory                   issuing any rule that may result in the               BILLING CODE 8320–01–P




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Document Created: 2018-02-01 15:04:40
Document Modified: 2018-02-01 15:04:40
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
ActionInterim final rule.
DatesEffective Date: February 21, 2017.
ContactThomas McGrath, Director, Center for Verification and Evaluation (00VE), Department of Veterans Affairs, 810 Vermont Ave. NW., Washington DC 20420, phone (202) 461-4300.
FR Citation82 FR 11154 
RIN Number2900-AP93
CFR AssociatedAdministrative Practice and Procedures; Privacy; Reporting and Recordkeeping Requirements; Small Business; Veteran; Veteran-Owned Small Business and Verification

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