[Federal Register: September 17, 1999 (Volume 64, Number 180)]
[Notices]               
[Page 50548]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se99-103]                         

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SMALL BUSINESS ADMINISTRATION

 
Notice of Establishment of Point of Contact Between SBA and Small 
Business Concerns With Respect to Failure To Comply With Federal Rules 
or Regulations Due to Y2K Problems

AGENCY: Small Business Administration.

ACTION: Notice.

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SUMMARY: Through this notice, SBA establishes a point of contact with 
small business concerns who fail to comply with Federal rules or 
regulations due to Y2K problems. This action is required by section 18 
of the Y2K Act (Pub. L. 106-37).

DATES: Effective September 17, 1999.

FOR FURTHER INFORMATION CONTACT: Mark A. Spellman, Office of General 
Counsel, 409 Third Street, SW, Suite 700, Washington, DC 20416, (202) 
205-6642.

SUPPLEMENTARY INFORMATION: On July 20, 1999, the President signed H.R. 
775, the ``Y2K Act.'' The Act provides temporary relief for small 
business concerns that cannot comply with Federal rules and regulations 
because of Y2K problems.
    Among other things, the Y2K Act requires agencies to waive civil 
penalties for a first time violation of any federally enforceable rule 
by a small business (defined as 50 employees or less), due to a Y2K 
failure, if the small business meets the standards for a waiver. An 
agency must provide a waiver of civil penalties for a first-time 
violation, if the small business concern demonstrates, and the agency 
determines that:
    1. The small business concern previously made a reasonable good 
faith effort to anticipate, prevent, and effectively remediate a 
potential Y2K failure;
    2. A first-time violation occurred as a result of the Y2K failure 
of the small business concern or other entity, which significantly 
affected the small business concern's ability to comply with a Federal 
rule or regulation;
    3. The first-time violation was unavoidable in the face of a Y2K 
failure or occurred as a result of efforts to prevent the disruption of 
critical functions or services that could result in harm to life or 
property;
    4. Upon identification of a first-time violation, the small 
business concern initiated reasonable and prompt measures to correct 
the violation; and
    5. The small business concern submitted notice to the appropriate 
agency of the first-time violation within a reasonable time not to 
exceed 5 business days from the time that the small business concern 
became aware that the first-time violation had occurred.
    An agency may impose civil money penalties authorized under Federal 
law on a small business concern for a first-time violation if:
    1. The small business concern's failure to comply with Federal 
rules or regulations resulted in actual harm, or constitutes or creates 
an imminent threat to public health, safety, or the environment; or
    2. The small business concern fails to correct the violation not 
later than 1 month after initial notification to the agency.
    This relief does not apply to first-time violations caused by a Y2K 
failure occurring after December 31, 2000.
    The Act requires that each agency must establish a point of contact 
for small businesses ``with respect to problems arising out of Y2K 
failures and compliance with Federal rules or regulations.''
    SBA's point of contact for this purpose is Mark A. Spellman, Office 
of General Counsel, 409 Third Street, SW, Suite 700, Washington, DC 
20416, (202) 205-6642.
David R. Kohler,
Acting General Counsel.
[FR Doc. 99-24209 Filed 9-16-99; 8:45 am]
BILLING CODE 8025-01-P