Federal Register / Vol. 76, No. 58 / Friday, March 25, 2011 / Proposed Rules 16703 

exceed 8 centimeters in length and 8.5 

millimeters in diameter. 

(c) Commercial consignments. French 

beans and runner beans must be 

imported as commercial consignments 

only. 

(d) Phytosanitary certificate. Each 

consignment of French beans or runner 

beans must be accompanied by a 

phytosanitary certificate issued by 

Kenya’s NPPO attesting that the 

conditions of this section have been met 

and that the consignment has been 

inspected and found free of the pests 

listed in this section. 

Done in Washington, DC, this 21st day of 

March 2011. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. 2011–7088 Filed 3–24–11; 8:45 am] 

BILLING CODE 3410–34–P 

SMALL BUSINESS ADMINISTRATION 

13 CFR Parts 121, 124, 125, 126, and 

127 

[Docket No. SBA–2011–0006] 

Small Business Jobs Act Tour: 

Selected Provisions Having an Effect 

on Government Contracting 

AGENCY: U.S. Small Business 

Administration. 

ACTION: Notice of Public Meetings. 

SUMMARY: The U.S. Small Business 

Administration’s (SBA) Office of 

Government Contracting and Business 

Development (GC/BD) is tasked with 

implementing several provisions of the 

Small Business Jobs Act of 2010 (SBJA). 

On Monday, March 7, 2011, SBA 

announced a series of public meetings 

on its implementation of these 

provisions. The dates, times and 

locations, as well as registration 

information, are set forth below. SBA is 

providing this supplementary 

information on the government 

contracting provisions of the SBJA to 

provide background and focus input. 

DATES: The meetings will be held on the 

dates and times specified in the Event 

Information section of the 

Supplementary Information below. It is 

recommended that all attendees register 

at least one week prior to the scheduled 

meeting date. In addition, comments to 

SBA docket number SBA–2011–0006 

must be received on or before April 16, 

2011. 

ADDRESSES: The meetings will be held at 

the locations specified in the Event 

Information section of the 

Supplementary Information below. 

Parties interested in attending a meeting 

must register by providing the requested 

registration information at http:// 

www.sba.gov/jobsacttour. In addition, 

you may submit comments, identified 

by SBA docket number SBA–2011–0006 

by any of the following methods: 

Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Mail: Small Business Jobs Act Tour— 

Office of Government Contracting and 

Business Development, U.S. Small 

Business Administration, 409 Third 

Street, SW., Suite 8000, Washington, DC 

20416. 

Hand Delivery/Courier: Richard L. 

Miller, Small Business Jobs Act Tour— 

Office of Government Contracting and 

Business Development, 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 Mr. 

Miller, address above. Highlight the 

information that you consider to be CBI 

and explain why you believe SBA 

should hold this information as 

confidential. SBA will review the 

information and make the final 

determination whether it will publish 

the information. 

FOR FURTHER INFORMATION CONTACT: 

Richard L. Miller, Small Business Job’s 

Act Tour—Office of Government 

Contracting and Business Development, 

409 Third Street, SW., Washington, DC 

20416, at (202) 205–6895; Fax: (202) 

481–4291; e-mail: 

richard.miller@sba.gov. 

SUPPLEMENTARY INFORMATION

I. Background 

On September 27, 2010, President 

Obama signed the SBJA, which makes 

many significant small business 

program improvements. The new law 

provides critical resources to help small 

businesses continue to drive economic 

recovery and create jobs. The new law 

extended the successful SBA enhanced 

loan provisions while offering billions 

more in lending support, tax cuts, and 

other opportunities for entrepreneurs 

and small business owners. The new 

law also contained numerous provisions 

to help enhance small businesses ability 

to compete in government contracting 

and subcontracting. For example, the 

law addresses small business set-asides 

on multiple award contracts, contract 

consolidation, and timely payments to 

small business subcontractors. The 

contracting provisions also dovetail 

with recommendations released by the 

Interagency Task Force on Small 

Business Contracting in September 

(http://www.sba.gov/content/ 

interagency-task-force-federalcontracting-opportunities-smallbusinesses). The Task Force was 

established by the President in April 

2010 to identify ways in which to 

increase small business participation in 

the federal marketplace so that agencies 

meet and exceed their small business 

contracting goals. 

Accordingly, SBA will conduct a 

Small Business Jobs Act Tour that will 

cover 13 cities. The objective of the tour 

is to provide information on SBJA 

provisions and to receive input on key 

SBJA provisions. 

II. Topics and Agenda 

While the agenda may vary from city 

to city, a typical agenda is below. Please 

visit http://www.sba.gov/jobsacttour for 

updates on each location’s agenda. 

9 to 10 am .......................... Opening Keynote & Overview of Small Business Jobs Act. 

10 to 10:15 am ................... Break. 

10:15 to 11:30 am .............. Room 1—CONTRACTING 

Discussion and intake session surrounding key Jobs Act provisions: multiple-award set-asides, bundling, consolidation of requirements, subcontracting, mentor-prote ́ge ́ programs, presumption of loss and misrepresentation 

issues, and annual certification issues. 

Room 2—LENDER ROUNDTABLE 

Discussion for current and prospective SBA lenders: new efforts to simplify/streamline, enhance customer service 

in areas such as lending policy, processing, and oversight. 

Room 3—EXPORTING 

Discussion of new exporting tools: increased loan sizes, the Export Express program, state-level STEP grants, and 

additional efforts under the National Export Initiative. 

11:30 am to 12:45 pm ........ Room 1—CONTRACTING (session above continues) 

Room 2—LENDER ROUNDTABLE (session above continues) 


erowe on DSK5CLS3C1PROD with PROPOSALS
16704 Federal Register / Vol. 76, No. 58 / Friday, March 25, 2011 / Proposed Rules 

Room 3—COUNSELING 

Discussion of counseling and training resources: Jobs Act support for Small Business Development Centers, enhanced efforts to support export counseling. 

12:45 to 1:45 pm ................ Break for Lunch. 

1:45 to 3 pm ....................... Room 1—CONTRACTING 

Discussion of Size Standards: basics of SBA’s small business size standards, current comprehensive review of 

size standards including methodology, other policy issues. 

Room 2—CAPITAL 

Discussion of opportunities in accessing capital: how SBA loan programs can help small business owners. 

Room 3—EXPORTING (repeat) 

Discussion of new exporting tools: Increased loan sizes, the Export Express program, state-level STEP grants, 

and additional efforts under the National Export Initiative. 

3 to 4:15 pm ....................... Room 1—CONTRACTING 

Discussion of local/regional contracting environment and resources: ‘‘meet-and-greet’’ with representatives such as 

regional/local SBA officials, 8(a) experts, and resource partners. 

Room 2—CAPITAL 

Discussion of new SBA loan programs and initiatives: Advantage loans, 504 re-financing (Jobs Act), the Dealer 

Floor Plan pilot (Jobs Act), and more. 

Room 3—COUNSELING (repeat) 

Discussion of counseling and training resources: Jobs Act support for Small Business Development Centers, enhanced efforts to support export counseling. 

A. Putting More Capital in the Hands of 

Small Business Owners 

SBA loans continue to be a critical 

tool for helping small businesses get the 

capital they need to grow and create 

jobs. The Small Business Jobs Act made 

permanent enhancements to SBA loan 

programs, such as raising the maximum 

loan sizes of the 7(a) and 504 programs. 

In addition, temporary provisions in the 

new law include a Dealer Floor Plan 

financing pilot as well as a program that 

allows some owner-occupied businesses 

to refinance their commercial real estate 

mortgages using an SBA loan. Beyond 

the SBJA, SBA is taking several steps to 

better serve its lending partners and 

borrowers, to simplify and streamline 

loan programs, and to improve oversight 

of SBA lending. Small business owners, 

prospective and current SBA lenders are 

especially encouraged to attend, share 

their ideas with the SBA, and learn 

more about new tools being offered. 

B. Expanding Resources for Counseling 

and Training 

SBA has at least one District Office in 

each state, as well as about 14,000 

affiliated counselors at Small Business 

Development Centers, Women’s 

Business Centers and SCORE chapters. 

The Small Business Jobs Act is helping 

support these groups in a number of 

ways. For example, $50 million more is 

being provided to support the network 

of about 900 Small Business 

Development Centers throughout the 

country. Also, SBA is working with a 

broad group of counselors to equip them 

with more tools and information to help 

small firms start or increase exporting. 

All small business owners are 

encouraged to attend and learn more 

about the knowledge, tools, and contacts 

that SBA affiliated counselors can help 

provide. 

C. Expanding Exporting Opportunities 

for Small Business 

Small businesses looking for new 

opportunities to increase sales and 

profit, and take advantage of increased 

demand for high-quality U.S. goods and 

services, should consider exporting. The 

Small Business Jobs Act includes 

exporting resources to help small 

businesses by making the SBA Export 

Express pilot loan program permanent, 

increasing maximum sizes for SBA’s 

three export loan programs, and creating 

a new State Trade and Export Promotion 

(STEP) grants pilot program which will 

provide funds to states to assist small 

business interested in exporting. See 

Notice of Grant Opportunities to States: 

STEP Grant Program, 76 FR 10082 (Feb. 

23, 2011). These expanded 

opportunities also help build upon the 

goal of doubling exports in the next five 

years via the National Export Initiative. 

Small business owners with a current or 

prospective interest in exporting are 

especially encouraged to attend. 

D. Strengthening Small Businesses’ 

Ability To Compete for and Win Federal 

Contracts 

The federal government awards 

hundreds of billions of dollars each year 

in federal contracts, nearly one-fourth of 

which goes to small firms. The Small 

Business Jobs Act contained 19 

provisions that will help small 

businesses compete more effectively for 

federal contracts and subcontracts. SBA 

is rolling out these provisions that will 

help ensure more fairness, more 

opportunities, and more tools to help 

match federal agencies with small 

businesses that provide high-quality 

products and services. SBA wants to 

hear from interested parties about how 

it can effectively roll out new 

provisions, such as those relating to 

Multiple Award Contract set asides, 

subcontracting, Mentor Prote ́ge ́

Programs, and, at select events, its size 

process. Small business contractors are 

encouraged to attend, learn more about 

these new tools, and share their 

thoughts on improving the environment 

for small business contracting. In 

addition, SBA seeks input and 

suggestions on the following specific 

SBJA government contracting 

provisions: 

E. Multiple Award Contract Set-Asides 

(Pub. L. 111–240 §§ 1311 1331) 

Section 1311 of the SBJA defines the 

term ‘‘multiple award contract.’’ In 

addition, § 1331 of the SBJA requires the 

Administrator of SBA and the 

Administrator for Federal Procurement 

Policy, in consultation with the 

Administrator of the General Services 

Administration (GSA) to issue 

regulations under which ‘‘Federal 

agencies may, at their discretion—(1) 

Set aside part or parts of a multiple 

award contract for small business 

concerns, including the subcategories of 

small business concerns * * * (2) 

notwithstanding the fair opportunity 

requirements under section 2304c(b) of 

title 10, United States Code, and section 

303J(b) of the Federal Property and 

Administrative Services act of 1949 (41 

U.S.C. 253j(b)), set aside orders placed 

against multiple award contracts for 

small business concerns, including the 

subcategories of small business 

concerns * * * and (3) reserve one or 

more contract awards for small business 

concerns under full and open multiple 

award procurements, including the 

subcategories of small business 

concerns.’’ In reviewing these 

provisions, the SBA would like input 

and suggestions on the following 

questions: 


erowe on DSK5CLS3C1PROD with PROPOSALS
Federal Register / Vol. 76, No. 58 / Friday, March 25, 2011 / Proposed Rules 16705 

1. How should guidance differentiate 

between a total set-aside, a partial setaside, and a procurement otherwise 

‘‘reserved’’ for small businesses When it 

is appropriate for each to be used? 

When would it be inappropriate for 

each to be used? What types of 

‘‘reserves’’ might be effective in a full 

and open competition for a task and 

delivery order contract to facilitate 

access to small businesses (e.g., 

designating a certain number of the 

multiple awards for award to small 

businesses or subcategories of small 

business, or permitting a small business 

to receive a multiple award contract to 

compete for only a specified subset of 

functions on the task or delivery orders 

issued against the contract)? Should 

small businesses compete solely against 

other small businesses for contracts that 

are ‘‘reserved’’ for small business? 

2. Should set-asides be authorized 

under GSA’s Multiple Award Schedule 

(MAS) contracts? Should they be 

required under certain circumstances? 

Why or why not? What additional steps 

might be considered to increase small 

business participation on the 

Schedules? (Note: GSA has created a 

new section of its GSA MAS Web site 

focused on small business contracting at 

http://www.gsa.gov/portal/content/ 

202261. Readers are encouraged to 

review this site in considering their 

response to this question). 

3. Will small business utilization 

under ‘‘multiple award contracts’’ 

including GSA MAS contracts be 

increased through mandatory or 

discretionary use of set-asides? 

4. If small business set-asides are 

mandated either at the contract level or 

ordering level, how will it affect a 

procuring agency’s use of ‘‘multiple 

award contracts’’ including MAS 

contracts? 

5. If set-asides are applied to 

‘‘multiple award contracts’’ including 

GSA MAS contracts at the order level, 

what are some of the potential benefits 

or drawbacks? 

6. At what time should small business 

size be determined for a multiple-award 

contract—at the time of (1) submission 

of a proposal for the contract, (2) 

submission of a quotation for the order, 

or some combination? What affect 

would requiring size determinations at 

the order level have on the procurement 

process for multiple award contracts? 

7. How should the small business 

requirements (e.g., limitation on 

subcontracting; non-manufacturer rule) 

apply to orders set aside for small 

business? 

F. Bundling Accountability, 

Consolidation of Contracts 

Requirements (Pub. L. 111–240 §§ 1312– 

1313) 

Section 1313 of the SBJA provide that 

an agency may not conduct an 

acquisition involving contract 

requirements with a total value of more 

than $2,000,000, unless the senior 

procurement executive or Chief 

Acquisition Officer for the Federal 

agency, before carrying out the 

acquisition strategy—(A) Conducts 

market research; (B) identifies any 

alternative contracting approaches that 

would involve a lesser degree of 

consolidation of contract requirements; 

(C) makes a written determination that 

the consolidation of contract 

requirements is necessary and justified; 

(D) identifies any negative impact by the 

acquisition strategy on contracting with 

small business concerns; and (E) 

certifies to the head of the Federal 

agency that steps will be taken to 

include small business concerns in the 

acquisition strategy. In addition, § 1312 

of the SBJA requires agencies to post 

their rationale for a bundled 

requirement. In reviewing these 

provisions, the SBA would like input 

and suggestions on the following 

questions: 

1. If you are a small business, do you 

frequently form teams (i.e., when small 

businesses joint venture or form a prime 

and subcontractor relationship) for 

bundled contracts? Do you ever enter 

into any other types of arrangements 

besides joint ventures or prime/ 

subcontract relationships to compete for 

bundled contracts? If so, please describe 

these arrangements. 

G. Subcontracting; Misrepresentations, 

Plan Improvements, and Timeliness of 

Payment (Pub. L. 111–240 §§ 1321, 

1322, 1334) 

The SBJA requires the Administrator 

to establish a policy on small business 

subcontracting compliance, including 

assignment of periodic oversight and 

review responsibilities between 

contracting offices, small business 

offices, and program offices (see § 1321). 

It further provides that for contracts 

requiring subcontracting plans, a large 

business contractor must notify the 

contracting officer in writing when the 

prime fails to use a small business 

concern in contract performance that 

the prime used in preparing the bid or 

offer (see § 1322). In addition, the SBJA 

provides that for contracts requiring 

subcontracting plans, a large business 

contractor must notify the contracting 

officer in writing when the prime has 

been paid, the subcontractor has 

performed, and the prime’s payment to 

the subcontractor is 90 days past due, or 

the prime has paid the subcontractor a 

reduced amount. Finally, the SBJA 

further provides that a contracting 

officer may record the identity of a 

contractor with a history of unjustified, 

untimely payments in the Federal 

Awardee Performance and Integrity 

System (see § 1334). In reviewing these 

provisions, SBA would like input and 

suggestions on the following questions: 

1. With respect to Section 1321, who 

is currently responsible for monitoring 

small business subcontracting plan 

compliance and performance? Is there a 

function or office that can better 

monitor performance and compliance? 

2. In implementing sections 1322 and 

1334, what factors should SBA take into 

account to ensure the provision 

facilitates opportunities for small 

businesses in a manner that is 

consistent with economy and efficiency 

in federal contracting? For example, 

should the contracting officer be 

responsible for determining whether a 

prime contractor used a particular 

subcontractor in creating a bid or 

proposal? Should the contracting officer 

be responsible for determining whether 

the subcontractor has satisfactorily 

completed performance? How should 

the prime contractor report to the 

contracting officer? How should the 

contracting officer use the reported 

information? Are subcontractors able to 

report to the contracting officer when a 

prime contractor fails to utilize a 

subcontractor or fails to pay a 

subcontractor, or do prime contractors 

restrict subcontractors’ ability to contact 

the contacting officer? 

3. With respect to section 1334, what, 

if any, consequences should a prime 

contractor’s late or reduced payment to 

a small business subcontractor have on 

that contractor’s future ability to receive 

federal contracts? 

H. Mentor Prote ́ge ́ Programs for WOSB, 

HUBZONE, and SDVOSB (Pub. L. 111– 

240 §§ 1331–1343) 

The SBA’s 8(a) Business Development 

Program currently authorizes a MentorProte ́ge ́ Program as a tool to aid small 

Participant firms gain needed business 

development assistance, including 

expertise within their specific industries 

to successfully compete in the 

marketplace. The SBJA authorizes SBA 

to implement a Mentor-Prote ́ge ́ Program 

for HUBZone small businesses, service 

disabled veteran owned (SDVO) small 

businesses, and women-owned small 

businesses (WOSB) similar in structure 

to the current SBA 8(a) Mentor-Prote ́ge ́

Program. SBA is seeking input and 

suggestions on the following questions: 


erowe on DSK5CLS3C1PROD with PROPOSALS
16706 Federal Register / Vol. 76, No. 58 / Friday, March 25, 2011 / Proposed Rules 

1. If SBA implements a Governmentwide Mentor-Prote ́ge ́ program for 

HUBZone small businesses, SDVO small 

businesses and WOSBs, how should 

these government-wide programs 

interact with Mentor-Prote ́ge ́ programs 

sponsored by individual agencies? 

Should agency-specific Mentor-Prote ́ge ́

programs of other agencies be 

maintained? What, if any, challenges 

might this pose? 

2. Should the Mentor-Prote ́ge ́

programs be identical for each of the 

programs (HUBZone, SDVO, WOSB) or 

should current differences contained in 

the programs be continued (e.g., 

HUBZone program regulations currently 

allow joint ventures for HUBZone 

contracts only between 2 or more 

certified HUBZone firms; if continued, a 

mentor that is not a HUBZone firm 

could not perform a HUBZone contract 

as a joint venture with its HUBZone 

prote ́ge ́ firm)? 

3. Are there specific industry sectors 

where small business development 

through Mentor-Prote ́ge ́ programs 

should be focused? 

4. What types of incentives should be 

considered to encourage the formation 

of Mentor-Prote ́ge ́ relationships? Are 

there examples of incentives used by 

other agencies in their Mentor-Prote ́ge ́

programs (other than those requiring 

additional outlays of funds) that would 

benefit SBA’s program? 

5. What metrics should be considered 

to gauge a successful Mentor Prote ́ge ́

relationship? 

6. What controls should be considered 

to mitigate potential fraud, waste, and 

abuse in the Mentor-Prote ́ge ́

relationship? 

7. Would small businesses be better 

served if created a Government-wide 

Mentor-Prote ́ge ́ program to provide 

oversight and offer best practices, or 

would small businesses prefer MentorProte ́ge ́ programs for each individual 

socioeconomic group? 

I. Presumption of Loss/ 

Misrepresentation and Annual 

Certification of Size (Pub. L. 111–240 

§§ 1341–1343) 

Section 1341 of the SBJA provides 

that there shall be a presumption of loss 

equal to the value of the contract, 

subcontract, grant, cooperative 

agreement or cooperative research and 

development agreement set aside or 

intended for award to a small business 

when a concern willfully sought and 

received the award by 

misrepresentation. Section 1341 also 

provides that the submission of a bid or 

proposal for a contract, subcontract, 

grant, cooperative agreement or 

cooperative research and development 

set aside for small business concerns 

shall be deemed an affirmative, willful 

and intentional certification of size or 

status. Section 1341 further provides 

that an offer or application for a 

contract, subcontract or grant shall 

contain a certification of size or status 

signed by an authorized official on the 

same page containing the certification. 

Finally, Section 1341 also provides that 

SBA shall promulgate regulations to 

protect concerns from liability for 

misrepresentations in the case of 

unintentional errors, technical 

malfunctions and other situations. 

Section 1342 of the SBJA provides that 

concerns shall update their size or 

status in federal procurement databases 

at least annually, and firms that fail to 

update its status shall no longer be 

identified as small or some other status 

in the database. SBA is seeking input 

and suggestions on the following 

questions: 

1. How does the deemed certification 

provision interact or relate to the 

requirement to provide a signature in 

connection with a size or status 

representation or certification? 

2. How can an individual or firm 

claim a misrepresentation was 

unintentional or a technical malfunction 

when the individual signed a 

certification that contained the precise 

size or status being claimed? 

3. What effect will the requirement to 

update size or status in federal 

procurement databases annually have 

on multi-year contracts? 

III. Event Information 

Location Date Address 

Columbus, OH ................................. March 28, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

The Ohio State University, Ohio Union, 1739 N. High St., Columbus, 

OH 43210. 

Miami, FL ........................................ March 28, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

Miami Dade College, Wolfson Campus, Chapman Center (Building 

3), 300 NE., 2nd Avenue, Miami, FL 33132. 

New York, NY ................................. March 30, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

26 Federal Plaza, 6th Floor Conference Room A/B, New York, NY 

10278. 

Atlanta, GA ...................................... March 30, 2011, Begins 9:30 a.m., 

Ends 4:45 p.m.

Loudermilk Center, 40 Courtland Street, NE., Atlanta, 30303. 

Boston, MA ...................................... April 1, 2011, Begins 9 a.m., Ends 

4:15 p.m.

O’Neill Federal Building, 10 Causeway Street, Boston, MA 02222. 

San Antonio, TX .............................. April 1, 2011, Begins 9 a.m., Ends 

4:15 p.m.

The Norris Conference Center, 4522 Fredericksburg Road, San Antonio, TX 78201. 

Albuquerque, NM ............................ April 11, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

Embassy Suites Albuquerque, 1000 Woodward Place, NE., Albuquerque, NM 87102. 

San Diego, CA ................................ April 11, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

County Health Services Complex, 3851 Rosecrans St., San Diego, 

CA 92110. 

Denver, CO ..................................... April 13, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

Lowry Conference Center, 1061 Akron Wy. Bldg. 697, Denver, CO 

80230. 

Seattle, WA ..................................... April 13, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

Holiday Inn, Seattle-SeaTac International Airport, 17338 International 

Blvd., Seattle, WA 98188. 

Huntsville, AL .................................. April 15, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

Chan Auditorium, College of Business, 801 Sparkman Drive, Huntsville, AL 35899. 

Chicago, IL ...................................... April 15, 2011, Begins 9 a.m., 

Ends 4:15 p.m.

Citigroup Center Building, 500 West Madison Street, Suite 1150, Chicago, IL 60661. 

Washington, DC .............................. TBD ................................................ TBD. 

IV. Registration and Oral Presentation 

Any individual interested in 

attending and making an oral 

presentation shall pre-register in 

advance with SBA. Oral presentations 

may consist of comments on existing 

rules and procedures, general questions, 

or new ideas for the SBA to consider. 

Presentations will be made in the 

breakout sessions, pursuant to the 

format of each session. Based on the 


erowe on DSK5CLS3C1PROD with PROPOSALS
Federal Register / Vol. 76, No. 58 / Friday, March 25, 2011 / Proposed Rules 16707 

1 Dodd-Frank Wall Street Reform and Consumer 

Protection Act, Pub. L. 111–203, 124 Stat. 1376 

(2010). 

2See id. at Preamble. 

3See id. § 901 (‘‘This section may be cited as the 

‘Investor Protection and Securities Reform Act of 

2010’.’’); Title IX (‘‘Investor Protections and 

Improvements to the Regulation of Securities’’). 

4 17 CFR 240.17Ad–17. 

5Rule 17Ad–17(b)(2) defines a ‘‘lost 

securityholder’’ to mean ‘‘a securityholder: (i) To 

whom an item of correspondence that was sent to 

the securityholder at the address contained in the 

transfer agent’s master securityholder file has been 

returned as undeliverable; provided, however, that 

if such item is re-sent within one month to the lost 

securityholder, the transfer agent may deem the 

securityholder to be a lost securityholder as of the 

day the resent item is returned as undeliverable; 

and (ii) for whom the transfer agent has not 

received information regarding the securityholder’s 

new address.’’ 

6Section 17A(g)(1)(A), 15 U.S.C. 78q–1(g)(1)(A). 

We note that Congress, in drafting Exchange Act 

Section 17A(g), used a two-word formulation of the 

term ‘‘security holder.’’ In Rule 17Ad–17, however, 

there is a one-word formulation of the term 

‘‘securityholder.’’ For the sake of consistency within 

Rule 17Ad–17, we are proposing to use the term 

‘‘missing securityholder’’ in Rule 17Ad–17. 

Throughout this release, we have used the term 

‘‘securityholder’’ when discussing Rule 17Ad–17, 

and we have used the term ‘‘security holder’’ when 

discussing Section 929W of the Dodd-Frank Act or 

Section 17A(g) of the Exchange Act. 

7 Id. Section 17A(g) provides that written 

notification may be sent along with a check or other 

mailing subsequently sent to the missing security 

holder. 

number of registrants it may be 

necessary to impose time limits to 

ensure that everyone who wishes to 

speak has the opportunity to do so. 

Please refer to http://www.sba.gov/ 

jobsacttour for registration information. 

SBA will attempt to accommodate all 

interested parties. 

V. Information on Service for 

Individuals With Disabilities 

Reasonable accommodations will be 

provided to those who request 

assistance at least one week in advance 

of the meeting for which assistance is 

being requested. For a complete list of 

meeting dates, locations and points of 

contact please visit http://www.sba.gov/ 

jobsacttour. 

Authority: Pub. L. 111–240. 

Ana Ma, 

Chief of Staff. 

[FR Doc. 2011–7135 Filed 3–24–11; 8:45 am] 

BILLING CODE 8025–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 240 

[Release No. 34–64099; File No. S7–11–11] 

RIN 3235–AL11 

Rule 17Ad–17; Transfer Agents’, 

Brokers’, and Dealers’ Obligation To 

Search for Lost Securityholders; 

Paying Agents’ Obligation To Search 

for Missing Securityholders 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Proposed rule. 

SUMMARY: The Dodd-Frank Wall Street 

Reform and Consumer Protection Act 

(‘‘Dodd-Frank Act’’) amended the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) by adding a subsection 

entitled, ‘‘Due Diligence for the Delivery 

of Dividends, Interest, and Other 

Valuable Property Rights.’’ The 

amendment directs the Securities and 

Exchange Commission (‘‘Commission’’) 

to revise Exchange Act Rule 17Ad–17, 

‘‘Transfer Agents’ Obligation to Search 

for Lost Securityholders’’ to: extend to 

brokers and dealers the requirement of 

Rule 17Ad–17 to search for lost 

securityholders; add to Rule 17Ad–17 a 

requirement that ‘‘paying agents’’ notify 

‘‘missing security holders’’ in writing 

that the paying agent has sent the 

missing security holder a check that has 

not yet been negotiated; add to Rule 

17Ad–17 an exclusion for paying agents 

from the notification requirements when 

the value of the not yet negotiated check 

is less than $25; and add to Rule 17Ad– 

17 a provision clarifying that the written 

notification requirements shall have no 

effect on State escheatment laws. The 

amendment also requires the 

Commission to ‘‘adopt such rules, 

regulations, and orders necessary to 

implement this subsection no later than 

1 year after the date of enactment of this 

subsection.’’ The Commission is 

publishing for comment proposed 

amendments to Rule 17Ad–17 to 

implement the statutory requirements. 

DATES: Comments should be received on 

or before May 9, 2011. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

Electronic Comments 

• Use the Commission’s Internet 

comment form (http://www.sec.gov/ 

rules/proposed.shtml); 

• Send an e-mail to rulecomments@sec.gov and include File 

Number S7–11–11 on the subject line; 

or 

• Use the Federal eRulemaking Portal 

(http://www.regulations.gov) and follow 

the instructions for submitting 

comments. 

Paper Comments 

• Send paper comments in triplicate 

to Elizabeth M. Murphy, Secretary, 

Securities and Exchange Commission, 

100 F Street, NE., Washington, DC 

20549–1090. 

All submissions should refer to File 

Number S7–11–11. To help us process 

and review your comments more 

efficiently, please use only one method. 

The Commission will post all comments 

on the Commission’s Internet Web site 

(http://www.sec.gov/rules/ 

proposed.shtml). Comments are also 

available for Web site viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street, NE., 

Washington, DC 20549, on official 

business days between the hours of 

10 a.m. and 3 p.m. All comments 

received will be posted without change; 

the Commission does not edit personal 

identifying information from 

submissions. You should submit only 

information that you wish to make 

publicly available. 

FOR FURTHER INFORMATION CONTACT: Jerry 

W. Carpenter, Assistant Director, or 

Thomas C. Etter, Jr., Special Counsel, at 

(202) 551–5710, Division of Trading and 

Markets, Securities and Exchange 

Commission, 100 F Street, NE., 

Washington, DC 20549–7010. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

On July 21, 2010, the President signed 

the Dodd-Frank Act into law.1 The 

Dodd-Frank Act was enacted to, among 

other things, promote the financial 

stability of the United States by 

improving accountability and 

transparency in the financial system.2

Title IX of the Dodd-Frank Act provides 

the Commission with new tools to 

protect investors and improve the 

regulation of securities.3

Section 929W of the Dodd-Frank Act 

added subsection (g) to Section 17A of 

the Exchange Act (‘‘Section 17A(g)’’), 

which requires the Commission to 

revise Rule 17Ad–17 under the 

Exchange Act (‘‘Rule 17Ad–17’’) 4 to 

extend the rule’s requirement that 

transfer agents search for ‘‘lost 

securityholders’’ to brokers and dealers.5

Section 17A(g) further directs the 

Commission to revise Rule 17Ad–17 to 

provide a requirement that the ‘‘paying 

agent provide a single written 

notification to each missing security 

holder that the missing security holder 

has been sent a check that has not yet 

been negotiated.’’ 6 Under Section 

17A(g), written notification must be sent 

to a missing security holder no later 

than seven months after the sending of 

the not yet negotiated check.7

Section 17A(g)(1)(D)(ii) defines 

‘‘paying agent’’ to include ‘‘any issuer, 


erowe on DSK5CLS3C1PROD with PROPOSALS