[Federal Register: March 26, 2003 (Volume 68, Number 58)]
[Rules and Regulations]
[Page 14527-14528]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26mr03-1]
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Rules and Regulations
Federal Register
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having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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[[Page 14527]]
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Rural Housing Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1940
RIN 0570-AA30
Methodology and Formulas for Allocation of Loan and Grant Program
Funds
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Final rule.
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SUMMARY: The Rural Business-Cooperative Service (RBS) is amending the
regulations for allocating program funds to its State Offices. This
action is needed to add the Rural Business Opportunity Grant (RBOG)
Program and update the formulas used for the Rural Business Enterprise
Grant (RBEG) and Business and Industry (B&I) Guaranteed and Direct Loan
programs. The intended effect of this action is to update the formula
used for allocating B&I and RBEG funds among State Offices and provide
a regulatory formula for allocating RBOG funds.
EFFECTIVE DATE: April 25, 2003.
FOR FURTHER INFORMATION CONTACT: Diane Berger, Loan Specialist,
Specialty Lenders Division, Rural Business-Cooperative Service, U.S.
Department of Agriculture, STOP 3225, Room 6868, 1400 Independence Ave.
SW., Washington, DC 20250-3225, Telephone (202) 720-2383. The TTD
number is (800) 877-8339 or (202) 708-9300.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be not-significant and has not
been reviewed by the Office of Management and Budget.
Programs Affected
The Catalog of Federal Domestic Assistance numbers for the programs
impacted by this action are 10.773, Rural Business Opportunity Grants;
10.769, Rural Business Enterprise Grants; and 10.768, Business and
Industry loans.
Intergovernmental Consultation
The Programs listed are subject to the provisions of Executive
Order 12372 which requires intergovernmental consultation with state
and local officials.
Paperwork Reduction Act
There are no reporting and recordkeeping requirements associated
with this final rule.
Executive Order 13132
The policies contained in this rule do not have any substantial
direct effect on 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. Nor does this
rule impose substantial direct compliance costs on state and local
governments. This rule is intended to foster cooperation between the
Federal Government and the states and local governments, and reduces,
where possible, any regulatory burden imposed by the Federal Government
that impedes the ability of states and local governments to solve
pressing economic, social and physical problems in their state.
Civil Justice Reform
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. In accordance with this rule: (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 this rule; and (3)
administrative proceedings in accordance with the regulations of the
Agency at 7 CFR part 11 must be exhausted before bringing suit in court
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, Pub. L. 91-190, an
Environmental Impact Statement is not required.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA)
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 the 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.
Background
RBS is amending its regulations for allocating program funds among
its State Offices. This action is necessary to provide a regulatory
basis for allocating funds for a new program, RBOG. Also, adjustments
need to be made in the formulas for allocating RBEG and B&I funds to
reflect current policies and to add that one of the factors used for
RBEG is the State percentage of national rural population with income
below the poverty level.
Discussion of Comments
This rule was published in the Federal Register as a proposed rule
on
[[Page 14528]]
August 3, 2000 (65 FR 47695) with public comments invited through
October 2, 2000. No comments were received.
List of Subjects in 7 CFR Part 1940
Administrative practice and procedure, Agriculture, Allocations,
Grant programs--Housing and community development, Loan programs--
Agriculture, Rural areas.
Therefore, chapter XVIII, title 7, Code of Federal Regulations, is
amended as follows:
PART 1940--GENERAL
1. The authority citation for part 1940 continues to read as
follows:
Authority: 5 U.S.C. 301, 7 U.S.C. 1989, 42 U.S.C. 1480.
Subpart L--Methodology and Formulas for Allocation of Loan and
Grant Program Funds
2. Amend section 1940.588 by removing paragraph (k) and revising
the heading and paragraphs (d), (g), (h), and (j) to read as follows:
Sec. 1940.588 Business and Industry Guaranteed and Direct Loans.
* * * * *
(d) Transition formula. The transition formula is not used for B&I
Guaranteed and Direct Loans.
* * * * *
(g) Reserve. See Sec. 1940.552(g). States may request reserve
funds from the B&I reserve when all of the state allocation has been
obligated or will be obligated to the project for which the request is
made.
(h) Pooling of funds. See Sec. 1940.552(h). Funds are pooled near
fiscal year-end. Pooled funds will be placed in a reserve and made
available on a priority basis to all States.
* * * * *
(j) Suballocation by the State Director. Suballocation by the State
Director is authorized for this program.
3. Amend section 1940.589 by removing paragraph (k) and revising
paragraphs (b)(1)(ii), (g), and (h) to read as follows:
Sec. 1940.589 Rural Business Enterprise Grants.
* * * * *
(b) * * *
(1) * * *
(ii) State's percentage of national rural population with incomes
below the poverty level--25 percent.
* * * * *
(g) Reserve. See Sec. 1940.552(g).
(h) Pooling of funds. See Sec. 1940.552(h). Funds are pooled near
fiscal year-end. Pooled funds will be placed in the National Office
reserve and will be made available administratively.
* * * * *
4. Add section 1940.593 to read as follows:
Sec. 1940.593 Rural Business Opportunity Grants.
(a) Amount available for allocations. See Sec. 1940.552(a).
(b) Basic formula criteria, data source, and weight. See Sec.
1940.552(b).
(1) The criteria used in the basic formula are:
(i) State's percentage of national rural population--50 percent.
(ii) State's percentage of national rural population with incomes
below the poverty level--25 percent.
(iii) State's percentage of national nonmetropolitan unemployment--
25 percent.
(2) The data source for each criterion is based on the latest
census data available. The percentage representing each criterion is
multiplied by the weight factor and added to arrive at a State Factor
(SF). The SF cannot exceed .05.
SF = (criterion (b)(1)(i) x 50 percent) +
(criterion (b)(1)(ii) x 25 percent) +
(criterion (b)(1)(iii) x 25 percent)
(c) Basic formula allocation. See Sec. 1940.552(c).
(d) Transition formula. The transition formula is not used for
Rural Business Opportunity Grants (RBOG).
(e) Base allocation. See Sec. 1940.552(e).
(f) Administrative allocation. The administrative allocation is not
used for RBOG.
(a) Reserve. See Sec. 1940.552(g).
(h) Pooling of funds. See Sec. 1940.552(h). Funds are pooled near
fiscal year-end. Pooled funds will be placed in the National Office
reserve and will be made available administratively.
(i) Availability of the allocation. See Sec. 1940.552(i). The
allocation of funds is made available to States on an annual basis.
(j) Suballocation by the State Director. Suballocation by the State
Director is authorized for this program.
Dated: March 17, 2003.
Thomas C. Dorr,
Under Secretary, Rural Development.
[FR Doc. 03-7237 Filed 3-25-03; 8:45 am]