[Federal Register Volume 65, Number 229 (Tuesday, November 28, 2000)]
[Rules and Regulations]
[Pages 71022-71026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29957]



[[Page 71021]]

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Part IV





Department of Commerce





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Economic Development Administration



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13 CFR Part 300, et al.



Implementation of the Economic Development Administration Reform Act of 
1998 Including Economic Adjustment Grants-Revolving Loan Funds; Final 
Rule

Federal Register / Vol. 65, No. 229 / Tuesday, November 28, 2000 / 
Rules and Regulations

[[Page 71022]]


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DEPARTMENT OF COMMERCE

Economic Development Administration

13 CFR Parts 300, 301, 302, 303, 305, 306, 307, 308, 314, 315, 316 
and 317

[Docket No. 001024292-0292-01]
RIN 0610-AA62


Implementation of the Economic Development Administration Reform 
Act of 1998 Including Economic Adjustment Grants-Revolving Loan Funds

AGENCY: Economic Development Administration (EDA), Department of 
Commerce (DoC).

ACTION: Final rule.

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SUMMARY: The Economic Development Administration (EDA) is clarifying 
and further streamlining previously published regulations to implement 
the Economic Development Administration Reform Act of 1998 and is 
finalizing its interim-final rule on Economic Adjustment Assistance 
Revolving Loan Funds.

DATES: Effective Date: November 28, 2000.

ADDRESSES: Send comments to Edward M. Levin, Chief Counsel, Economic 
Development Administration, U.S. Department of Commerce, Herbert C. 
Hoover Building, 1401 Constitution Avenue, NW, Room 7005, Washington, 
DC 20230.

FOR FURTHER INFORMATION CONTACT: Edward M. Levin, Chief Counsel, 
Telephone Number 202-482-4687, fax 202-482-5671, e-mail <a href="/cdn-cgi/l/email-protection#34515851425d5a74505b571a535b42"><span class="__cf_email__" data-cfemail="c7a2aba2b1aea987a3a8a4e9a0a8b1">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Background

    The Economic Development Administration (EDA) was reauthorized for 
a five-year period by legislation enacted on November 13, 1998, 
creating stability and opportunities for EDA to better serve 
economically distressed communities across the country. On February 3, 
1999, EDA published an interim-final rule, Economic Development 
Administration Regulation: Revision to Implement the Economic 
Development Reform Act of 1998, Public Law 105-393 (the Reform Act), 
(64 FR 5347-5486). The public was invited to submit comments on the 
interim-final rule for a period of sixty (60) days ending April 5, 
1999. EDA's final rule without RLF changes was published on December 
14, 1999, 64 FR 69867. EDA reviewed comments on the RLF Task Force 
Recommendations as well as other comments on RLF matters and published 
an interim-final rule on January 18, 2000, 65 FR 2530, requesting 
comments on or before March 18, 2000.

Explanation of Changes

    A commenter suggested that the table at Sec. 300.3(b), be modified 
to add the OMB Control Number for the Certification Form filled out and 
submitted by firms alleging injury due to imports under EDA's Trade 
Adjustment Assistance Program (see 13 CFR part 315). EDA concurs and 
has modified the rule by adding Control Number 0610-0091 to the Table 
at Sec. 300.3(b).
    A commenter suggested that Sec. 301.1(b) be modified to add a 
reference to part 308 as providing for an exception to the requirement 
for evidence of cooperation (by letter or resolution) with officials of 
a general purpose political subdivision of a state or an Indian tribe, 
as applicable when applicant is a nonprofit organization. We concur and 
have revised the rule accordingly.
    A commenter suggested that Sec. 302.1(b) be modified for 
consistency and clarification to state that strategies required for 
District designation meet the CEDS requirements under Sec. 303.3. We 
concur and have modified the rule accordingly.
    A commenter suggested that Sec. 302.4 (b)(4) be modified to add the 
letter ``s'' to the word ``requirement'' when referring to CEDS 
requirements under part 303. Since this was an inadvertent 
typographical error, EDA concurs and has corrected the rule 
accordingly.
    A commenter suggested that Sec. 303.2 be modified to state the 
statutory requirement placed upon any district located in the 
Appalachian region to ensure that a copy of the CEDS of such district 
is provided to the Appalachian Regional Commission. We concur and have 
revised the rule accordingly.
    A commenter suggested that Subpart B to part 305--Requirements for 
Approved Projects, be added to the rule. EDA concurs since this was 
inadvertently not printed as was intended, and has corrected the rule 
to include the Subpart to immediately precede ``Sec. 305.5-Pilot 
program.''
    Commenters suggested that Sec. 305.5 be revised to remove specific 
references to the Chicago Regional Office's pilot program and certain 
aspects thereof and to provide instead, without setting any timetables, 
that Regional Offices, upon approval of the Deputy Assistant Secretary 
for Program Operations, may institute pilot programs for post-approval 
construction monitoring, thereby continuing EDA's efforts to streamline 
and simplify. We concur and have modified the rule accordingly.
    A commenter suggested that Sec. 306.1 be revised to state EDA's 
longstanding policy and practice of supporting partnership planning 
grants with Districts, Indian Tribes and other eligible applicants, as 
well as funding short term grants to eligible grantees. We concur and 
have revised the rule accordingly.
    A commenter suggested that Sec. 307.7(c) should be removed because 
post-approval requirements are found in Sec. 307.12. We concur and have 
revised the rule accordingly.
    A commenter suggested that Sec. Sec. 308.4 (b) and (c)(1)(i) be 
modified so that not all strategy grants or implementation grants must 
meet the CEDS requirements under Sec. 303.3, since there might be a 
non-construction non-CEDS project to develop a non-CEDS strategy or 
implementation which would not need to follow CEDS requirements to meet 
the objectives of the Economic Adjustment program. EDA concurs and has 
changed the rule accordingly.
    Commenters suggested that Sec. 308.4(c)(1)(i) be modified for 
consistency to state that implementation grants for CEDS must meet the 
CEDS requirements at Sec. 303.3. EDA concurs and has changed the rule 
accordingly.
    A commenter suggested that Sec. 308.5(a) be modified to state that 
for Technical Assistance under the Economic Adjustment program, when 
the project is regional or national in scope, EDA may determine that 
the requirement that public or private nonprofit organizations must act 
in cooperation with officials of a political subdivision of a state is 
satisfied by the nature of the project. We concur and have revised the 
rule accordingly.
    A commenter noted that Sec. 308.9 is not clear about what RLF Plan 
requirements do not apply to states and political subdivisions of 
states. EDA concurs and has clarified the rule to indicate what RLF 
Plan approval requirements must be met by States/political subdivisions 
of states.
    A commenter suggested that Sec. 308.11(a) be modified to state that 
for a determination of eligibility for new RLF lending areas, such 
areas must be included in or added to a CEDS in accordance with 
requirements under Sec. 301.3. EDA concurs and we have modified the 
rule accordingly.
    Commenters suggested that EDA clarify the meaning of 
Sec. 308.11(a)(1). EDA concurs (this was an inadvertent typographical 
error) and has rewritten the rule accordingly.
    A commenter suggested that Sec. 308.12(b) be modified to add ``Loan

[[Page 71023]]

losses should be expense [sic] first to current RLF income after 
deducting administrative costs. If the net current RLF income is 
depleted, retained RLF income from previous annual periods may be used 
with the written approval of EDA.'' EDA does not concur. In accordance 
with Sec. 308.12(c), RLF income not used for administrative expenses 
must be added to the capital base for lending. While this can have the 
effect of compensating or partially compensating for actual loan losses 
that may occur from time to time, EDA does not believe that expensing 
losses against RLF income is necessary.
    A commenter suggested that Sec. 308.12(d) be modified to cite to 
the applicable OMB Cost Circular(s) and to list any costs which would 
be allowable for RLFs with EDA's approval, even though such costs are 
not allowable under the OMB Circular. It is not possible to develop 
such a list in advance because any extraordinary costs that might be 
allowed, with EDA's approval, would be handled on a case by case basis. 
We have, however, revised the rule to cite the applicable OMB Cost 
Circulars.
    A commenter suggested that Sec. 308.14(a) be modified to allow 
those RLFs that have received recapitalization funds within the past 
two years, and have successfully managed and reported on previously 
awarded RLF funds for more than two years, to report on an annual basis 
for all funds. EDA does not concur. EDA's grant monitoring 
responsibility requires semi-annual reports from all active grants in 
their disbursement phase plus one year, after which EDA will consider a 
request to submit annual reports.
    A commenter suggested that Sec. 308.17(c) be modified to allow for 
securitization of loan funds, as well as borrowing to generate 
additional capital with EDA approval. EDA does not concur that a change 
to the regulation is necessary to allow securitization. EDA's 
definition of securitization is intentionally sufficiently broad to 
permit, with EDA approval, other similar activities, such as 
collateralized borrowing. In granting approval for such activities, EDA 
can suspend the capital utilization standard of Sec. 308.17(c) as 
necessary to allow the leveraged/borrowed funds to be lent. Note that 
the definition of the term ``Securitization'' at Sec. 308.8, is also 
applicable to Sec. 314.10.
    A commenter suggested that Sec. 308.18, introductory paragraph, be 
revised to delete the word ``agreement'' (after ``loan'') and to insert 
instead, the word ``application'. EDA does not agree because the loan 
purpose should be noted directly or by reference in the loan agreement.
    A commenter suggested that EDA revise Sec. 308.18(c) (credit 
otherwise available) to include a provision allowing RLFs to provide 
incentive financing for specific community objectives in rural areas to 
attract business, eliminate blight, and revitalize downtown areas and 
that this suggested revision not supersede specific uses and terms of 
RLF loan proceeds previously granted by EDA. EDA does not concur. EDA 
authority to approve variances is sufficiently broad to accommodate 
case by case circumstances as described by the commenter.
    A commenter suggested that EDA establish a permanent RLF working 
group composed of RLF managers and representatives from other federal 
loan fund programs. EDA does not agree that a working group should be 
established by regulation. EDA is committed to the development of 
better communications between the Agency and the RLF community 
utilizing other vehicles.
    A commenter suggested that the authority citation for parts 315 and 
316 be corrected to refer to 19 U.S.C. 2341 (instead of 19 U.S.C. 
2391), to remove a reference in part 315 to Executive Order 12372 as 
unnecessary, to remove a reference in part 315 to 42 U.S.C. 5141 as 
incorrect, and to add a reference to 42 U.S.C. 5141 to part 316. We 
concur and have modified the rule accordingly.
    A commenter suggested that Sec. 315.9 be modified to include 
standards for certification of firms on the basis of interim employment 
decline or an interim decrease in sales or production to codify 
longstanding EDA policy and practice. We concur and have modified the 
rule accordingly.
    A commenter suggested that Sec. 316.9(c) be modified to provide for 
the possibility of project changes when no-year funds are involved. We 
concur and have modified the rule accordingly.
    A commenter suggested that Sec. 317.1(f)(3)(vi) concerning required 
information about employees of EDA assisted planning organizations, be 
revised to correct an inadvertent typographical error by deleting the 
word ``data'' and inserting in lieu thereof, the word ``date''. We 
concur and have modified the rule accordingly.
    A commenter suggested that Sec. 317.1(f)(5) concerning annual civil 
rights compliance reviews for districts and other planning 
organizations, be revised to correct an inadvertent typographical error 
by deleting the reference to requirements under paragraph (f)(3), and 
inserting in lieu thereof, reference to requirements under paragraph 
(f)(4). We concur and have modified the rule accordingly.

Executive Order 12866 and 12875

    This rule has been determined to be not significant for purposes of 
Executive Order 12866, Regulatory Planning and Review. In addition, it 
has been determined that, consistent with the requirements of Executive 
Order 12875, Enhancing Intergovernmental Partnership, this final rule 
will not impose any unfunded mandates upon state, local, and tribal 
governments.

Regulatory Flexibility Act

    Since notice and an opportunity for comment are not required to be 
given for the rule under 5 U.S.C. 553 or any other law, under sections 
603(a) and 604(a) of the Regulatory Flexibility Act (5 U.S.C. 601-612) 
no initial or final Regulatory Flexibility Analysis is required, and 
none has been prepared.

Paperwork Reduction Act

    This rule imposes no new information collection or record keeping 
requirements under the Paperwork Reduction Act of 1980 (44 U.S.C. 3501 
et seq.), as amended, and has been cleared under OMB's clearance 
process under OMB approval numbers 0610-0093, 0610-0094, and 0610-0096, 
valid until November 30, 2002, and 0610-0095 valid until August 31, 
2002.

Administrative Procedure Act (APA)

    This rule is exempt from the rulemaking requirements of the APA, 
see 5 U.S.C. 533, pursuant to authority at 5 U.S.C. 533(a)(2).

Executive Order 12612 (Federalism Assessment)

    This action has been reviewed in accordance with the principles and 
criteria contained in Executive Order 12612. It has been determined 
that this final rule does not have significant Federalism implications 
to warrant a full Federalism Assessment under the principles and 
criteria contained in Executive Order 12612.

List of Subjects

13 CFR Part 300

    Organizations and functions (Government agencies), Reporting and 
recordkeeping requirements.

13 CFR Part 301

    Community development, Grant programs--housing and community 
development.

13 CFR Part 302

    Community development, Grant programs--business, Grant programs--

[[Page 71024]]

housing and community development, Technical assistance.

13 CFR Part 303

    Community development, Grant programs--housing and community 
development, Reporting and recordkeeping requirements.

13 CFR Part 305

    Community development, Community facilities, Grant programs--
housing and community development.

13 CFR Part 306

    Community development, Grant programs--housing and community 
development.

13 CFR Part 307

    Business and industry, Community development, Grant programs--
business, Grant programs--housing and community development, Research, 
Technical assistance.

13 CFR Part 308

    Business and industry, Community development, Community facilities, 
Grant programs--business, Grant programs--housing and community 
development, Manpower training programs, Mortgages, Reporting and 
recordkeeping requirements, Research, Technical assistance.

13 CFR Part 314

    Community development, Grant programs--housing and community 
development.

13 CFR Part 315

    Administrative practice and procedure, Community development, Grant 
programs--business, Grant programs--housing and community development, 
Technical assistance, Trade adjustment assistance.

13 CFR Part 316

    Community development, Community facilities, Environmental 
protection, Freedom of information, Grant programs--housing and 
community development, Loan programs--business, Loan programs--housing 
and community development, Reporting and recordkeeping requirements.

13 CFR Part 317

    Aged, Civil rights, Equal employment opportunity, Individuals with 
disabilities, Reporting and recordkeeping requirements, Sex 
discrimination.
    Accordingly, 13 CFR Chapter III is amended as set forth below, and 
the interim final rule amending 13 CFR Parts 308 and 314, which was 
published at 65 FR 2530 on January 18, 2000, is adopted as final with 
the following changes:

PART 300--GENERAL INFORMATION

    1. The authority citation for part 300 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.

    2. Section 300.3 is amended by revising paragraph (b) to read as 
follows:


Sec. 300.3  OMB control numbers.

* * * * *
    (b) Control number table:

------------------------------------------------------------------------
   13 CFR part or section where
      identified an described              Current OMB control No.
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301...............................  0610-0094
302...............................  0610-0094
303...............................  0610-0093
304...............................  0610-0094
305...............................  0610-0094 and 0610-0096
306...............................  0610-0094
307...............................  0610-0094
308...............................  0610-0094 and 0610-0095
314...............................  0610-0094
315...............................  0610-0091 and 0610-0094
316...............................  0610-0094
------------------------------------------------------------------------

PART 301--GENERAL ELIGIBILITY AND GRANT RATE REQUIREMENTS

    1. The authority citation for part 301 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.

    2. Section 301.1 is amended by revising paragraph (b) to read as 
follows:


Sec. 301.1  Applicants.

* * * * *
    (b) Except as otherwise provided in parts 307 and 308 of this 
chapter, a public or private nonprofit organization applicant must 
include in its application for assistance, a resolution passed by, or a 
letter signed by, an authorized representative of a general purpose 
political subdivision of a State or an Indian tribe, acknowledging that 
the applicant is acting in cooperation with officials of the political 
subdivision or Indian tribe, as applicable.

PART 302--ECONOMIC DEVELOPMENT DISTRICTS; STANDARDS FOR 
DESIGNATION, MODIFICATION AND TERMINATION

    1. The authority citation for part 302 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.

    2. Section 302.1 is amended by revising paragraph (b) to read as 
follows:


Sec. 302.1  Designation of Economic Development Districts.

* * * * *
    (b) It has an EDA approved strategy which meets CEDS requirements 
under Sec. 303.3 of this chapter.
* * * * *

    3. Section 302.4 is amended by revising paragraph (b)(4) to read as 
follows:


Sec. 302.4  District organization functions and responsibilities.

* * * * *
    (b) * * *
    (4) Comply with the requirements of part 303 of this chapter.

PART 303--PLANNING PROCESS AND STRATEGIES FOR DISTRICT AND OTHER 
PLANNING ORGANIZATIONS SUPPORTED BY EDA

    1. The authority citation for part 303 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.

    2. Section 303.2 is amended by adding paragraph (g) to read as 
follows:


Sec. 303.2  Planning process.

* * * * *
    (g) If any part of a district is in the Appalachian region (as 
defined in section 403 of the Appalachian Regional Development Act of 
1965 (40 U.S.C. App.)) the district shall ensure that a copy of the 
district's CEDS is provided to the Appalachian Regional Commission.

PART 305--GRANTS FOR PUBLIC WORKS AND DEVELOPMENT FACILITIES

    1. The authority citation for part 305 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.

    2. The heading for Subpart B is revised to read as follows:

Subpart B--Requirements for Approved Projects

    3. Section 305.5 is revised to read as follows:


Sec. 305.5  Pilot program.

    (a) EDA's Regional Offices may, upon approval of the Deputy 
Assistant Secretary for Program Operations, institute pilot programs 
for post-approval construction monitoring, thereby continuing EDA's 
efforts to

[[Page 71025]]

streamline and simplify procedures for monitoring approved EDA 
construction projects. The knowledge and efficiencies gained from the 
pilot programs will be evaluated and used to improve and revise EDA's 
post-approval project management requirements and procedures.
    (b) As part of a pilot program, the procedures developed by a 
Regional Office may vary from those listed in this subpart B. No 
additional requirements are imposed by pilot program procedures. A 
Regional Office will provide guidelines, in its version of the 
``Requirements for Approved Projects,'' to all recipients of grants for 
construction projects monitored by the Office. The recipient may not be 
required to submit to EDA certain documentation at any set time, but 
will be required to maintain all documentation supporting any and all 
certifications submitted to the Regional Office, for the period of time 
provided in 15 CFR part 14 or 24, as appropriate.

    4. Section 305.19 is amended by revising paragraph (d) to read as 
follows:


Sec. 305.19  Contract change orders.

* * * * *
    (d) When a change order is for a project funded with one-year 
funds, EDA approval of such change order must be based on a finding by 
EDA that the work called for in the change order is within the project 
scope and is required for satisfactory operation or functioning of the 
project.

PART 306--PLANNING ASSISTANCE

    1. The authority citation for part 306 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.

    2. Section 306.1 is amended by revising the introductory text to 
read as follows:


Sec. 306.1  Purpose and scope.

    The primary objective of planning assistance is to provide funding 
for administrative expenses to support the formulation and 
implementation of economic development planning programs and for the 
conduct of planning activities designed to create and retain permanent 
jobs and increase incomes, particularly for the unemployed and 
underemployed in the nation's most economically distressed areas. EDA's 
planning assistance is for partnership planning grants with Districts, 
Indian Tribes and other eligible applicants, as well as for short term 
grants to eligible grantees. Planning activities supported by these 
funds must be part of a continuous process involving the active 
participation of public officials and private citizens, and include the 
following:
* * * * *

PART 307--LOCAL TECHNICAL ASSISTANCE, UNIVERSITY CENTER TECHNICAL 
ASSISTANCE, NATIONAL TECHNICAL ASSISTANCE, TRAINING, RESEARCH, AND 
EVALUATION

    1. The authority citation for part 307 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.


Sec. 307.7  [Amended]

    2. Section 307.7 is amended to remove paragraph (c) and to 
redesignate paragraphs (d) and (e) as paragraphs (c) and (d) 
respectively.

PART 308--REQUIREMENTS FOR ECONOMIC ADJUSTMENT GRANTS

    1. The authority citation for part 308 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; Department of Commerce Organization 
Order 10-4.

    2. Section 308.4 is amended by revising paragraphs (b) and 
(c)(1)(i) to read as follows:


Sec. 308.4  Selection and evaluation factors.

* * * * *
    (b) Strategy grants. EDA will, as appropriate, review strategy 
grant applications for assurances that the proposed activities will 
conform to the CEDS requirements in Sec. 303.3 of this chapter.
    (c) Implementation Grants. (1) * * *
    (i) If appropriate, strategy meets the CEDS requirements in 
Sec. 303.3 of this chapter.
* * * * *

    3. Section 308.5 is amended by revising paragraph (a) to read as 
follows:


Sec. 308.5  Applicant requirements.

* * * * *
    (a) Include evidence of area and applicant eligibility (see part 
301 of this chapter). For Technical Assistance under the Economic 
Adjustment program, if the project is regional or national in scope, 
EDA may determine that the requirement that public or private nonprofit 
organizations must act in cooperation with officials of a political 
subdivision of a State is satisfied by the nature of the project;
* * * * *

    4. Section 308.9 is amended by revising the introductory text to 
read as follows:


Sec. 308.9  Revolving Loan Fund Plan.

    All RLF recipients must manage RLFs in accordance with an RLF Plan 
(Plan) as described in this part. For all RLF recipients, the Plan must 
be submitted to and approved by EDA prior to the grant award. For RLF 
recipients other than states, the RLF Plan must have been approved by 
resolution of the organizations' governing board and such resolution 
must be submitted to EDA along with the Plan prior to the grant award; 
with EDA's approval, political subdivisions of states may be exempted 
from the resolution requirement.
* * * * *

    5. Section 308.11 is amended by revising paragraphs (a) 
introductory text and (a)(1) to read as follows:


Sec. 308.11  Lending areas and modification of lending areas.

    (a) The economic activity and benefits of RLF loans must be located 
within the eligible areas identified in the grant award. For a 
determination of eligibility for new RLF lending areas, such areas must 
be included in or added to a CEDS in accordance with requirements under 
Sec. 301.3 of this chapter.
    (1) Where such RLFs have a grant condition that permits new areas 
that subsequently become eligible to be added to the lending area, RLFs 
that were awarded assistance (RLF capitalization or recapitalization) 
before February 11, 1999, whether fully disbursed or not, and fully 
disbursed RLFs that were awarded assistance (RLF capitalization or 
recapitalization) on or after February 11, 1999, may add such areas 
with EDA approval.
* * * * *

    6. Section 308.12 is amended by revising paragraph (d) to read as 
follows:


Sec. 308.12  Revolving Loan Fund income.

* * * * *
    (d) RLF recipients must comply with applicable OMB cost principles 
(as found in OMB Circular A-87 for State, Local or Indian tribal 
governments, OMB Circular A-122 for non-profit organizations other than 
institutions of higher education, hospitals, or organizations named in 
OMB Circular A-122 as not subject to that circular, and OMB Circular A-
21 for educational institutions) and with RLF Audit Guidelines (as 
found in OMB Circular A-133, Single Audit Act Requirements for State 
and Local Governments, Indian tribal governments, Institutions of 
Higher Education and Other Nonprofit Organizations, or the Compliance 
Supplement, as appropriate) when charging costs against RLF income. For

[[Page 71026]]

availability of OMB circulars, see 5 CFR 1310.3.
* * * * *

PART 315--CERTIFICATION AND ADJUSTMENT ASSISTANCE FOR FIRMS

    1. The authority citation for part 315 is revised to read as 
follows:

    Authority: 42 U.S.C. 3211; 19 U.S.C. 2341, et seq.; Department 
of Commerce Organization Order 10-4.

    2. Section 315.9 is revised to read as follows:


Sec. 315.9  Certification requirements.

    A firm will be certified eligible to apply for adjustment 
assistance based upon the petition for certification if EDA determines, 
under section 251(c) of the Trade Act, that:
    (a) Based upon a comparison of the most recent 12 month period for 
which data are available and the immediately preceding 12 month period, 
the following conditions have been met:
    (1) A significant number or proportion of workers in such firm have 
become totally or partially separated, or are threatened to become 
totally or partially separated;
    (2) Either sales or production, or both of the firm have decreased 
absolutely; or sales or production, or both of any article that 
accounted for not less than 25 percent of the total production or sales 
of the firm during the 12-month period preceding the most recent 12-
month period for which data are available have decreased absolutely; 
and
    (3) Increases of imports (absolute or relative to domestic 
production) of articles like or directly competitive with articles 
produced by such firm contributed importantly to such total or partial 
separation or threat thereof, and to such decline in sales or 
production; provided that imports will not be considered to have 
contributed importantly if other factors were so dominant, acting 
singly or in combination, that the worker separation or threat thereof, 
or decline in sales or production would have been essentially the same 
irrespective of the influence of imports; or
    (b) Based upon an interim sales or production decline, the 
following conditions have been met:
    (1) There has been an absolute decrease in sales or production for, 
at minimum, a three month period during the most recent 12 month period 
for which data are available as compared to the same period of time 
during the immediately preceding 12 month period;
    (2) During the same base and comparative period of time as the 
period of absolute decrease in sales or production, a significant 
number or proportion of workers in such firm have become totally or 
partially separated; and
    (3) During the same base and comparative period of time as the 
period of absolute decrease in sales or production, there has been an 
increase of imports (absolute or relative to domestic production) of 
articles like or directly competitive with articles produced by such 
firm which contributed importantly to such total or partial separation, 
and to such decline in sales or production; provided that imports will 
not be considered to have contributed importantly if other factors were 
so dominant, acting singly or in combination, that the worker 
separation, or decline in sales or production would have been 
essentially the same irrespective of the influence of imports; or
    (c) Based upon an interim employment decline, the following 
conditions have been met:
    (1) A significant number or proportion of workers in such firm have 
become totally or partially separated, or are threatened to become 
totally or partially separated during, at a minimum, the most recent 
month during the most recent 12 month period for which data are 
available as compared to the same period of time during the immediately 
preceding 12 month period; and
    (2) Either sales or production, or both of the firm have decreased 
absolutely during the 12-month period preceding the most recent 12-
month period for which data are available; and
    (3) There has been an increase of imports (absolute or relative to 
domestic production) of articles like or directly competitive with 
articles produced by such firm which contributed importantly to such 
total or partial separation or threat thereof, and to such decline in 
sales or production; provided that imports will not be considered to 
have contributed importantly if other factors were so dominant, acting 
singly or in combination, that the worker separation or threat thereof, 
or decline in sales or production would have been essentially the same 
irrespective of the influence of imports.

PART 316--GENERAL REQUIREMENTS FOR FINANCIAL ASSISTANCE

    1. The authority citation for part 316 is revised to read as 
follows:

    Authority: 42 U.S.C. 3211, 42 U.S.C. 5141; 19 U.S.C. 2341, et 
seq., Department of Commerce Organization Order 10-4.

    2. Section 316.9 is amended by revising paragraph (c) to read as 
follows:


Sec. 316.9  Amendments and changes.

* * * * *
    (c) Changes of project scope after the time the project grant funds 
could be obligated will not be approved by EDA. Projects funded with no 
year funds are not subject to the change of scope rule.

PART 317--CIVIL RIGHTS

    1. The authority citation for part 317 continues to read as 
follows:

    Authority: 42 U.S.C. 3211; 42 U.S.C. 2000d-1; 29 U.S.C. 794; 42 
U.S.C. 3123; 42 U.S.C. 6709; 20 U.S.C. 1681; 42 U.S.C. 6101; 
Department of Commerce Organization Order 10-4.

    2. Section 317.1 is amended by revising paragraphs (f)(3)(vi) and 
(f)(5)to read as follows:


Sec. 317.1  Civil rights.

* * * * *
    (f) * * *
    (3) * * *
    (vi) A list of employees on the staff of the organization by name, 
position title, salary, funding source, and hiring date, indicating 
race, sex, national origin, and age; and
* * * * *
    (5) In order to determine whether districts and other planning 
organizations supported by EDA are complying with the requirements in 
paragraph (f)(4) of this section, EDA shall conduct annual compliance 
reviews of these organizations through either an in-depth desk audit or 
onsite review.
* * * * *

    Dated: November 15, 2000.
Arthur C. Campbell,
Assistant Secretary for Economic Development.
[FR Doc. 00-29957 Filed 11-27-00; 8:45 am]
BILLING CODE 3510-24-U


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