[Federal Register: December 23, 2002 (Volume 67, Number 246)]
[Rules and Regulations]
[Page 78128-78130]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23de02-2]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Parts 1980 and 4279
RIN 0570-AA38
Business and Industry Loans; Revision to Definition of Rural Area
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
[[Page 78129]]
SUMMARY: The Rural Business-Cooperative Service (RBS) revises its
regulations to amend the definition of rural area. This action is taken
to comply with the amendment to section 343(a) of the Consolidated Farm
and Rural Development Act. The intended effect of this action is to
implement the revised definition of rural area for the Business and
Industry Guaranteed and Direct Loan Programs mandated by section 6020
of the Farm Security and Rural Investment Act of 2002.
EFFECTIVE DATE: December 23, 2002.
FOR FURTHER INFORMATION CONTACT: Brenda Griffin, Loan Specialist,
Business and Industry Division, Rural Business-Cooperative Service,
U.S. Department of Agriculture, STOP 3224, 1400 Independence Ave. SW.,
Washington, DC 20250, Telephone (202) 720-6802. The TDD number is (800)
877-8339 or (202) 708-9300.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be non-significant and was
reviewed by the Office of Management and Budget under Executive Order
12866.
Programs Affected
The Catalog of Federal Domestic Assistance number for the program
impacted by this action is 10.768, Business and Industry Loans.
Paperwork Reduction Act
There are no reporting and recordkeeping requirements associated
with this rule.
Intergovernmental Review
The Business and Industry loan programs are subject to the
provisions of Executive Order 12372, which requires intergovernmental
consultation with state and local officials. RBS will conduct
intergovernmental consultation in the manner delineated in RD
Instruction 1940-J, ``Intergovernmental Review of Rural Development
Programs and Activities,'' and in 7 CFR part 3015, subpart V.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the undersigned has determined and certified by signature of this
document that this rule will not have a significant economic impact on
a substantial number of small entities. New provisions included in this
rule will not impact a substantial number of small entities to a
greater extent than large entities. Therefore, a regulatory flexibility
analysis was not performed.
Civil Justice Reform
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. In accordance with this Executive Order: (1) All State
and local laws and regulations that are in conflict with this rule will
be preempted, (2) no retroactive effect will be given to this rule, and
(3) administrative proceedings in accordance with the regulations of
the Agency at 7 CFR part 11 must be exhausted before bringing
litigation challenging action taken under this rule unless those
regulations specifically allow bringing suit at an earlier time.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR part 1940,
subpart G, ``Environmental Program.'' RBS has determined that this
action does not constitute a major Federal action significantly
affecting the quality of the human environment and, in accordance with
the National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq,
an Environmental Impact Statement is not required.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Pub.
L. 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, RBS
must prepare a written statement, including a cost-benefit analysis,
for proposed and final rules with ``Federal mandates'' that may result
in expenditures to State, local or tribal governments, in the
aggregate, or to the private sector, of $100 million or more in any 1
year. When such a statement is needed for a rule, section 205 of UMRA
generally requires RBS to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, more cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
This rule contains no Federal mandates (under the regulatory
provisions of title II of the UMRA) for State, local, and tribal
governments or the private sector. Thus, this rule is not subject to
the requirements of sections 202 and 205 of the UMRA.
Executive Order 13132
It has been determined under Executive Order 13132, Federalism,
that this rule does not have sufficient federalism implications to
warrant the preparation of a Federalism Assessment. The provisions
contained in this rule will not have a substantial direct effect on
States or their political subdivisions or on the distribution of power
and responsibilities among the various levels of government.
Background
Section 6020 of the Farm Security and Rural Investment Act of 2002,
Public Law 107-424, amended section 343(a) of the Consolidated Farm and
Rural Development Act (Con Act) to change the definition of rural area
for several programs under that Act, including the RBS Business and
Industry loan programs. Section 343(a)(13) of the Con Act provides, in
part, as follows:
(13) Rural and Rural Area.
(A) In General. Except as otherwise provided in this paragraph, the
terms `rural' and `rural area' mean any area other than
(i) A city or town that has a population of greater than 50,000
inhabitants; and
(ii) The urbanized area contiguous and adjacent to such a city or
town.
The revised definition in section 343(a)(13) of the Con Act
supercedes the current definition for rural area used for the Business
and Industry loan program. The current definition includes all
territory of a State that is not within the outer boundary of any city
having a population of 50,000 or more and its immediately adjacent
urbanized and urbanizing area with a population density of more than
100 persons per square mile, as determined by the Secretary of
Agriculture according to the latest decennial census of the United
States. The new definition in section 343(a)(13) expands eligibility to
include urbanizing areas; adds ``town'' to an area which can have a
population of 50,000 or more; and deletes the requirement that the
urbanized area be ``immediately'' adjacent to the city requiring only
that it be ``contiguous and adjacent'' to the city or town. Cities or
towns with populations greater than 50,000 inhabitants and the
urbanized areas which are contiguous and adjacent to such cities and
towns are ineligible for Business and Industry program loans.
This regulation is being published as a final rule without a Notice
of Prior Rulemaking because the change being made is mandated by
section 6020 which provides no administrative discretion in choosing
the language to be used. Therefore, public comment is unnecessary and
impracticable and contrary to the public interest. For this same
reason, this final rule will be effective immediately upon publication.
[[Page 78130]]
List of Subjects
7 CFR Part 1980
Loan programs--Business and industry--Rural development assistance,
Rural areas.
7 CFR Part 4279
Loan programs--Business and industry, Loan programs--Rural
development assistance, Rural areas.
Accordingly, Chapters XVIII and XLII, Title 7, Code of Federal
Regulations, are amended as follows:
Chapter XVIII--Rural Housing Service, Rural Business-Cooperative
Service, Rural Utilities Service, and Farm Service Agency, Department
of Agriculture
PART 1980--GENERAL
1. The authority citation for part 1980 is amended to read as
follows:
Authority: 7 U.S.C. 1989.
Subpart E--Business and Industrial Loan Program
2. Section 1980.402 is amended by removing the definition of
``Rural area.''
3. Section 1980.405 is revised to read as follows:
Sec. 1980.405 Rural areas.
The business financed with a B&I loan must be located in a rural
area. Loans to borrowers with facilities located in both rural and non-
rural areas will be limited to the amount necessary to finance the
facility located in the eligible rural area. Cooperatives that are
headquartered in a non-rural area may be eligible for a B&I loan if the
loan is used for a project or venture that is located in a rural area.
Rural areas are any areas other than:
(a) A city or town that has a population of greater than 50,000
inhabitants; and
(b) The urbanized area contiguous and adjacent to such a city or
town, as defined by the U.S. Bureau of the Census using the latest
decennial census of the United States.
Chapter XLII--Rural Business-Cooperative Service and Rural
Utilities Service, Department of Agriculture
PART 4279--GUARANTEED LOANMAKING
4. The authority citation for part 4279 is amended to read as
follows:
Authority: 7 U.S.C. 1989.
Subpart B--Business and Industry Loans
5. Section 4279.108 is amended by revising paragraph (c) to read as
follows:
Sec. 4279.108 Eligible borrowers.
* * * * *
(c) Rural area. The business financed with a B&I Guaranteed Loan
must be located in a rural area. Loans to borrowers with facilities
located in both rural and non-rural areas will be limited to the amount
necessary to finance the facility located in the eligible rural area.
Rural areas are any areas other than:
(1) A city or town that has a population of greater than 50,000
inhabitants; and
(2) The urbanized area contiguous and adjacent to such a city or
town, as defined by the U.S. Bureau of the Census using the latest
decennial census of the United States.
* * * * *
Dated: December 6, 2002.
Thomas C. Dorr,
Under Secretary, Rural Development.
[FR Doc. 02-32241 Filed 12-20-02; 8:45 am]