2394 Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations

impact on a substantial number of small

entities.

The information collection

requirements contained in the

referenced section have been previously

approved by the Office of Management

and Budget (OMB) under the provisions

of 44 U.S.C. Chapter 35 and have been

assigned OMB number 0581–0099.

After consideration of all relevant

matters presented, it is hereby found

that the issuance of this rule will tend

to effectuate the declared policy of the

Act.

List of Subjects in 7 CFR Part 999

Dates, Filberts, Food grades and

standards, Imports, Nuts, Prunes,

Raisins, Reporting and recordkeeping

requirements, Walnuts.

For the reasons set forth in the

preamble, 7 CFR part 999 is amended to

read as follows:

PART 999—SPECIALTY CROPS;

IMPORT REGULATIONS

Accordingly, the interim final rule

amending 7 CFR Part 999 which was

published at 60 FR 57910 on November

24, 1995, is adopted as a final rule

without change.

Dated: January 22, 1996.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 96–1296 Filed 1–25–96; 8:45 am]

BILLING CODE 3410–02–P

SMALL BUSINESS ADMINISTRATION

13 CFR Parts 101, 133, and 135

Administration, Index to Approved

SBA Reporting and Recordkeeping

Requirements, and Intergovernmental

Review of Small Business

Administration Programs and

Activities

AGENCY: Small Business Administration.

ACTION: Final rule.

SUMMARY: In response to President

Clinton’s government-wide regulatory

reform directive, the Small Business

Administration completed a page-bypage and line-by-line review of all of its

existing regulations. As a result, SBA

now clarifies and streamlines its

regulations, revising or eliminating any

duplicative, outdated, inconsistent or

confusing provisions. This rule

reorganizes all of present Parts 101, 133,

and 135 and consolidates them into one

new rule. As part of this streamlining

process large portions of present Part

101 have been removed from the

regulations and will be published in the

Federal Register. Present Parts 133 and

135 are revised, updated and

consolidated with Part 101. Finally, the

remaining sections are rewritten into a

straightforward ‘‘plain English’’ style of

writing.

EFFECTIVE DATE: This rule is effective

February 26, 1996.

FOR FURTHER INFORMATION CONTACT:

Cheri C. Wolff, Chief Counsel for

General Litigation; Office of General

Counsel, at (202) 205–6643.

SUPPLEMENTARY INFORMATION: On March

4, 1995, President Clinton issued a

Memorandum to Federal agencies

directing them to simplify their

regulations and eliminate those that are

unnecessary. In response to this

directive SBA completed a page-bypage, line-by-line review of all of its

existing regulations to determine which

should be revised or eliminated. This

rule revises, amends, reorganizes, and

consolidates all of present 13 CFR Parts

101, 133, and 135. This new

consolidated rule reorganizes Part 101

into four subparts and renumbers all

remaining sections to reflect this new

configuration.

Proposed changes to Parts 101, 133,

and 135 were published in the Federal

Register on November 24, 1995 (60 FR

57965). The public was invited to

comment during a thirty day comment

period. SBA received no comments

concerning this part during that time

period. Therefore, the following final

rule contains no changes to the

proposed rule, except minor

typographical ones.

For a detailed description of the

changes to each subpart and the new

organization of Part 101, please refer to

SBA’s proposed rules, published at 60

FR 57965 (November 24, 1995).

Compliance With Executive Orders

12612, 12778, and 12866, the

Regulatory Flexibility Act (5 U.S.C. 601,

et seq.), and the Paperwork Reduction

Act (44 U.S.C. 35)

SBA certifies that this rule will not

have a significant economic impact on

a substantial number of small entities

within the meaning of Executive Order

12866 or the Regulatory Flexibility Act,

5 U.S.C. 601, et seq. This rule

consolidates three Parts of SBA’s

current regulations, moves substantial

amounts of general organizational

information from SBA’s regulations to

other sources, and rewrites the

remaining provisions into plain English.

Contracting opportunities and financial

assistance for small business will not be

affected by this rule. Therefore, it is not

likely to have an annual economic effect

of $100 million or more, result in a

major increase in costs or prices, or have

a significant adverse effect on

competition or the United States

economy.

For purposes of the Paperwork

Reduction Act, 44 U.S.C. 35, SBA

certifies that this final rule contains no

new reporting or record keeping

requirements. For purposes of Executive

Order 12612, SBA certifies that this rule

will not have any federalism

implications warranting the preparation

of a Federalism Assessment. For

purposes of Executive Order 12778,

SBA certifies that this rule is drafted, to

the extent practicable, in accordance

with the standards set forth in Section

2 of that Order.

List of Subjects

13 CFR Part 101

Administrative practice and

procedure; Authority delegations

(Government agencies); Investigations;

Organization and functions

(Government agencies); Reporting and

recordkeeping requirements.

13 CFR Part 133

Reporting and recordkeeping

requirements.

13 CFR Part 135

Intergovernmental relations.

For the reasons set forth above, and

under the authority of 15 U.S.C.

634(b)(6), SBA hereby amends 13 CFR

Chapter I as follows:

1. Part 101 is revised to read as

follows:

PART 101—ADMINISTRATION

Subpart A—Overview

101.100 What is the purpose of SBA?

101.101 Who manages SBA?

101.102 Where is SBA’s Headquarters

located?

101.103 Where are SBA’s field offices

located?

101.104 What are the functions of SBA’s

field offices?

101.105 Who may use SBA’s official seal

and for what purposes?

101.106 Does Federal law apply to SBA

programs and activities?

101.107 What SBA forms are authorized for

public use?

101.108 Has SBA waived any of the public

participation exemptions of the

Administrative Procedure Act?

101.109 Do SBA regulations include the

section headings?

Subpart B—Employment of Private Counsel

101.200 When does SBA hire private

counsel?

101.201 What are the minimum terms of

private counsel’s employment?
Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations 2395

Subpart C—Inspector General

101.300 What is the Inspector General’s

authority to conduct audits,

investigations, and inspections?

101.301 Who should receive information or

allegations of waste, fraud, and abuse?

101.302 What is the scope of the Inspector

General’s authority?

101.303 How are Inspector General

subpoenas served?

Subpart D—Intergovernmental Partnership

101.400 What is the purpose of this

subpart?

101.401 What programs and activities of

SBA are subject to this subpart?

101.402 What procedures apply to the

selection of SBA programs and

activities?

101.403 What are the notice and comment

procedures?

101.404 How does the Administrator

receive comments?

101.405 How does the Administrator

respond to comments?

101.406 What are the Administrator’s

responsibilities in interstate situations?

101.407 May the Administrator waive these

regulations?

Authority: 5 U.S.C. 552 and App. 3, secs.

2, 4(a), 6(a), and 9(a)(1)(T); 15 U.S.C. 633,

634, 687; 31 U.S.C. 6506; 44 U.S.C. 3512;

E.O. 12372 (July 14, 1982), 47 FR 30959, 3

CFR, 1982 Comp., p. 197, as amended by E.O.

12416 (April 8, 1983), 48 FR 15887, 3 CFR,

1983 Comp., p. 186.

Subpart A—Overview

§ 101.100 What is the purpose of SBA?

The U.S. Small Business

Administration (SBA) aids, counsels,

assists, and protects the interests of

small business concerns, and advocates

on their behalf within the Government.

It also helps victims of disasters. It

provides financial assistance,

contractual assistance, and business

development assistance. For a more

detailed description of the functions of

SBA see The United States Government

Manual, a special publication of the

Federal Register, which is available

from Superintendent of Documents,

P.O. Box 371954, Pittsburgh, PA 15250–

7954.

§ 101.101 Who manages SBA?

(a) An Administrator, appointed by

the President with the advice and

consent of the Senate, manages SBA.

The Administrator—

(1) Is responsible to the President and

Congress for exercising direction,

authority, and control over SBA.

(2) Determines and approves all

policies covering SBA’s programs to aid,

counsel, assist, and protect the interests

of the nation’s small businesses.

(3) Employs or appoints employees

necessary to implement the Small

Business Act, as amended, the Small

Business Investment Act, as amended,

and other laws and directives.

(4) Delegates certain activities, by

issuing regulations or otherwise, to

Headquarters and field positions.

(b) A Deputy Administrator,

appointed by the President with the

advice and consent of the Senate, serves

as Acting Administrator during the

absence or disability of the

Administrator or in the event of a

vacancy in the Office of the

Administrator.

§ 101.102 Where is SBA’s Headquarters

located?

The Headquarters of SBA is at 409 3rd

Street, S.W., Washington, D.C. 20416.

§ 101.103 Where are SBA field offices

located?

A list of SBA’s field offices with

addresses, phone numbers and

jurisdictions served is periodically

published in the Federal Register. You

can also obtain the address and phone

number of an SBA office to serve you by

calling 1–800–8–ASK–SBA or 1–800–

827–5722.

§ 101.104 What are the functions of SBA

field offices?

(a) Regional offices. Regional offices

are managed by a Regional

Administrator who is responsible to the

Administrator and to the Associate

Administrator for Field Operations.

They are located in major cities and

have geographical boundaries which

cover multi-state areas. Regional offices

exercise limited authority over field

activities within their region.

(b) District offices. District offices are

managed by a District Director and are

located in cities within a region. District

offices are responsible to Headquarters,

the Associate Administrator for Field

Operations, and to a regional office.

Within their delegated authority, district

offices have authority for—

(1) Conducting all program delivery

activities within the district boundaries;

(2) Supervising all branch offices

located within the district boundaries;

and

(3) Providing subordinate branch

offices with the technical capability

necessary to execute assigned programs.

(c) Branch offices. Branch offices are

managed by a Branch Manager and are

located in cities within a district.

Branch offices are responsible to the

district office within whose boundaries

it is located. Branch offices execute one

or more elements of the business or

disaster loan programs and have limited

authority for program execution.

(d) Disaster area offices. Disaster area

offices are managed by Area Directors

and are located in cities within defined

geographical areas. Disaster area offices

are responsible to Headquarters and

provide loan services to victims of

declared disasters. Temporary disaster

offices are often established in areas

where disasters have occurred.

(e) Responsibilities. Each field office

has responsibilities within a defined

geographical area as periodically set

forth in the Federal Register.

§ 101.105 Who may use SBA’s official seal

and for what purposes?

(a) The SBA’s seal shall be in a

manner and form set forth as follows:

BILLING CODE 8025–01–P

BILLING CODE 8025–01–C

(b) The Administrator, Deputy

Administrator, General Counsel,

Assistant Administrator for

Administration, Assistant Administrator

for Hearings and Appeals, Associate

Administrator for Minority Enterprise

Development, Regional Administrators,

District Directors, Branch Managers, the

Inspector General, and Disaster Area

Directors are authorized to—

(1) Certify and authenticate originals

and copies of any books, records,

papers, or other documents on file

within SBA, or extracts taken from

them.

(2) Certify the nonexistence of

records.

(3) Affix the Seal of SBA to all such

certifications for those purposes

authorized by 28 U.S.C. 1733.

§ 101.106 Does Federal law apply to SBA

programs and activities?

(a) SBA makes loans and provides

other services that are authorized and

executed under Federal programs to

achieve national purposes.

(b) The following are construed and

enforced in accordance with Federal

law—

(1) Instruments evidencing loans;

(2) Security interests in real or

personal property payable to or held by

SBA or the Administrator such as
2396 Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations

promissory notes, bonds, guarantee

agreements, mortgages, and deeds of

trust;

(3) Other evidences of debt or

security;

(4) Contracts or agreements to which

SBA is a party, unless expressly

provided otherwise.

(c) To the extent feasible, SBA uses

local or state procedures, especially for

recordation and notification purposes,

in implementing and facilitating SBA’s

loan programs. This use of local or state

procedures is not a waiver by SBA of

any Federal immunity from any local or

state control, penalty, tax, or liability.

(d) No person, corporation, or

organization that applies for and

receives any benefit or assistance from

SBA, or that offers any assurance or

security upon which SBA relies for the

granting of such benefit or assistance, is

entitled to claim or assert any local or

state law to defeat the obligation

incurred in obtaining or assuring such

Federal benefit or assistance.

§ 101.107 What SBA forms are approved

for public use?

(a) SBA uses forms approved by the

Office of Management and Budget

(OMB) under the Paperwork Reduction

Act of 1995 (44 U.S.C. 3501 et seq.), as

amended. You may obtain approved

forms for use by the public when

applying for or obtaining SBA

assistance, or when providing services

for SBA, from any field office (see

§ 101.103). You may also use forms

which you have prepared yourself, or

have obtained from another source, if

those forms are identical in every

respect to the forms approved by OMB

for the same purpose.

(b) Any member of the public who has

reason to believe any SBA office or

agent is in violation of the Public

Protection Clause of the Paperwork

Reduction Act (44 U.S.C. 3512 and see

5 CFR 1320.6) should notify SBA. Direct

such comments to the Assistant

Administrator for Administration at 409

3rd Street, S.W., Washington, DC 20416.

§ 101.108 Has SBA waived any of the

public participation exemptions of the

Administrative Procedure Act?

Yes. Despite these exemptions, SBA

will follow the public participation

requirements of the Administrative

Procedure Act, 5 U.S.C. 553, in

rulemakings relating to public property,

loans, grants, benefits, or contracts.

§ 101.109 Do SBA regulations include the

section headings?

Yes. All SBA regulations must be

interpreted as including the section

headings.

Subpart B—Employment of Private

Counsel

§ 101.200 When does SBA hire private

counsel?

(a) Business loans. SBA may hire

private counsel to represent it in regard

to business loans when the volume of

activity in an area is not sufficient to

require a full-time SBA employee, or the

area is too remote for economical use of

a full-time SBA employee.

(b) Disaster loans. SBA may hire

private counsel in regard to disaster

loans when the disaster presents an

emergency and a volume of activity that

cannot be promptly and economically

serviced by available SBA employees.

§ 101.201 What are the minimum terms of

private counsel’s employment?

(a) Private counsel must perform all

requested work in compliance with

SBA’s regulations, policies, and

instructions, and take such action as is

legally required under the Small

Business Act, the Small Business

Investment Act, and other laws

applicable to SBA.

(b) Private counsel must adhere to the

highest standards of professional

conduct and maintain confidentiality

appropriate to the attorney-client

relationship.

(c) Private counsel acts under the

supervision of the SBA General Counsel

(and designees).

(d) Private counsel usually is

compensated at an hourly rate as

approved by SBA. Contingency fee

agreements may be used if approved by

the General Counsel.

(e) Either party may terminate the

employment upon written notice.

Subpart C—Inspector General

§ 101.300 What is the Inspector General’s

authority to conduct audits, investigations,

and inspections?

The Inspector General Act of 1978, as

amended (5 U.S.C. App. 3) authorizes

SBA’s Inspector General to provide

policy direction for, and to conduct,

supervise, and coordinate such audits,

investigations, and inspections relating

to the programs and operations of SBA

as appears necessary or desirable.

§ 101.301 Who should receive information

or allegations of waste, fraud and abuse?

The Office of Inspector General

should receive all information or

allegations of waste, fraud, or abuse

regarding SBA programs and operations.

§ 101.302 What is the scope of the

Inspector General’s authority?

To obtain the necessary information

and evidence, the Inspector General

(and designees) have the right to:

(a) Have access to all records, reports,

audits, reviews, documents, papers,

recommendations, and other materials

available to SBA and relating to SBA’s

programs and operations;

(b) Require by subpoena the

production of all information,

documents, reports, answers, records,

accounts, papers, and other data and

documentary evidence;

(c) Administer oaths and affirmations

or take affidavits; and

(d) Request information or assistance

from any Federal, state, or local

government agency or unit.

§ 101.303 How are Inspector General

subpoenas served?

(a) Service of subpoenas may be

effected by any of the following

means—

(1) If by mail, a copy of the subpoena

must be addressed to the person,

partnership, corporation, or

unincorporated association to be served

at a residence or usual dwelling place,

or a principal office or place of business,

and mailed first class by registered or

certified mail (postage prepaid, return

receipt requested), or by a commercial

or U.S. Postal Service overnight or

express delivery service.

(2) If by personal delivery, a copy of

the subpoena must be delivered to the

person to be served, or to a member of

the partnership to be served, or to an

executive officer or a director of the

corporation or unincorporated

association to be served, or to a person

authorized by appointment or by law to

receive process for the person or entity

named in the subpoena.

(3) If by delivery to an address, a copy

of the subpoena must be left at the

principal office or place of business of

the person, partnership, corporation, or

unincorporated association to be served,

or at the residence or usual dwelling

place of the person, member of the

partnership, or officer or director of the

corporation or unincorporated

association to be served, with someone

of suitable age and discretion.

(b) Proof of service—

(1) When service is by registered,

certified, overnight, or express mail, it is

complete upon delivery of the

document by the Postal Service or

commercial service.

(2) The return Postal Service receipt

for a document that was registered or

certified and mailed, the signed receipt

for a document delivered by an

overnight or express delivery service, or

the Return of Service completed by the

individual serving the subpoena by

personal delivery shall be proof of

service.
Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations 2397

Subpart D—Intergovernmental

Partnership

§ 101.400 What is the purpose of this

subpart?

(a) This subpart implements section

401 of the Intergovernmental

Cooperation Act (31 U.S.C. 6506 et seq.)

which promotes intergovernmental

partnership and strengthens Federalism

by relying on state processes and state,

area-wide, regional, and local

coordination for the review of proposed

Federal financial assistance and direct

Federal development.

(b) While guiding SBA’s management,

this subpart does not create any right or

benefit enforceable at law.

§ 101.401 What programs and activities of

SBA are subject to this subpart?

SBA publishes in the Federal Register

a list of programs and activities subject

to this subpart.

§ 101.402 What procedures apply to the

selection of SBA programs and activities?

(a) A state may—

(1) Select any program or activity

published in the Federal Register under

§ 101.401 for intergovernmental review

(providing it consults with local elected

officials before doing so) and then notify

the Administrator of the programs and

activities selected; and

(2) Notify the Administrator of

changes in its selections at any time. For

each change, the state submits to the

Administrator an assurance that it

consulted with local elected officials

regarding the change.

(b) SBA may establish deadlines by

which states must inform the

Administrator of changes in their

program selections.

(c) After receiving notice of a state’s

selections, the Administrator uses a

state’s process as soon as feasible

depending on individual programs and

activities.

(d) ‘‘State’’ means any of the 50 States,

the District of Columbia, the

Commonwealth of Puerto Rico, the

Commonwealth of the Northern Mariana

Islands, Guam, American Samoa, the

U.S. Virgin Islands, or the Trust

Territory of the Pacific Islands.

§ 101.403 What are the notice and

comment procedures?

(a) The Administrator provides notice

to directly affected state, area-wide,

regional, and local entities in a state of

proposed SBA financial assistance or

direct SBA development if—

(1) The state has not adopted a

process under Executive Order 12372 (3

CFR, 1982 Comp., p. 197), as amended

by Executive Order 12416 (3 CFR, 1983

Comp., p. 186); or

(2) The assistance or development

involves a program or activity not

selected for the state process.

(b) Notice may be made by

publication in the Federal Register or

other means as SBA deems appropriate.

(c) Except in unusual circumstances

the Administrator gives state processes

or directly affected state, area-wide,

regional, and local officials and entities

at least 60 days to comment on

proposed SBA financial assistance or

direct SBA development.

(d) In cases where SBA delegates the

review, coordination, and

communication authority under this

subpart, this section also applies.

§ 101.404 How does the Administrator

receive comments?

(a) The Administrator follows the

procedures of § 101.405 if—

(1) A state office or official is

designated to act as a single point of

contact between a state process and all

Federal agencies; and

(2) That office or official transmits a

state process recommendation for a

program selected under § 101.402(a).

(b)(1) The single point of contact is

not obligated to transmit comments

from state, area-wide, regional, or local

officials and entities where there is no

state process recommendation.

(2) If a state process recommendation

is transmitted by a single point of

contact, all comments from state, areawide, regional, and local officials and

entities that differ from it must also be

transmitted.

(c) If a state has not established a

process, or is unable to submit a state

process recommendation, state, areawide, regional, and local officials and

entities may submit comments to SBA.

(d) If a program or activity is not

selected for a state process, state, areawide, regional, and local officials and

entities may submit comments to SBA.

In addition, if a state process

recommendation for a non-selected

program or activity is transmitted to

SBA by the single point of contact, the

Administrator follows the procedures of

§ 101.405.

(e) The Administrator considers

comments which do not constitute a

state process recommendation

submitted under this subpart and for

which the Administrator is not required

to apply the procedures of § 101.405

when such comments are provided by a

single point of contact directly to SBA

by a commenting party.

§ 101.405 How does the Administrator

respond to comments?

(a) If a state process provides a

recommendation to SBA through its

single point of contact, the

Administrator:

(1) Accepts the recommendation; or

(2) Reaches a mutually agreeable

solution with the state process; or

(3) Provides the single point of

contact with a written explanation of

the decision in a form the Administrator

deems appropriate. The Administrator

may also supplement the written

explanation by telephone or other

means.

(b) In any explanation under

paragraph (a)(3) of this section, the

Administrator informs the single point

of contact that—

(1) SBA will not implement its

decision for at least 10 days after the

single point of contact receives the

explanation; or

(2) Because of unusual circumstances

the waiting period of at least 10 days is

not feasible.

(c) For purposes of computing the

waiting period under paragraph (b)(1) of

this section, a single point of contact is

presumed to have received written

notification 5 days after the date of

mailing.

§ 101.406 What are the Administrator’s

responsibilities in interstate situations?

The Administrator is responsible

for—

(a) Identifying proposed SBA

financial assistance and direct SBA

development that have an impact on

interstate areas;

(b) Notifying appropriate officials and

entities in states which have adopted a

process and selected an SBA program or

activity;

(c) Making efforts to identify and

notify the affected state, area-wide,

regional, and local officials and entities

in states that have not adopted a process

or selected an SBA program or activity;

(d) Using the procedures of § 101.405

if a recommendation of a designated

area-wide agency is transmitted by a

single point of contact in cases in which

the review, coordination, and

communication with SBA has been

delegated; and

(e) Using the procedures of § 101.405

if a state process provides a state

recommendation to SBA through a

single point of contact.

§ 101.407 May the Administrator waive

these regulations?

The Administrator may waive any

provision of §§ 101.400 through and

including 101.406 in an emergency.

PARTS 133 AND 135—[REMOVED]

2. Parts 133 and 135 are removed.
2398 Federal Register / Vol. 61, No. 18 / Friday, January 26, 1996 / Rules and Regulations

Dated: January 19, 1996.

Philip Lader,

Administrator.

[FR Doc. 96–1163 Filed 1–25–96; 8:45 am]

BILLING CODE 8025–01–P

13 CFR Part 105

Standards of Conduct and Other

Employee Responsibilities

AGENCY: Small Business Administration.

ACTION: Final rule.

SUMMARY: The Small Business

Administration (SBA) amends its

regulations governing employee

standards of conduct. This amendment

repeals provisions that are superseded

by the Office of Government Ethics

(OGE) Uniform Standards of Conduct

for Employees of the Executive Branch

(5 CFR Part 2635); amends one

provision by adding the Associate

General Counsel for General Law as an

Assistant Standards of Conduct

Counselor; and renumbers the

remaining provisions with several

minor technical amendments.

EFFECTIVE DATE: This rule is effective

February 26, 1996.

FOR FURTHER INFORMATION CONTACT:

Robinson S. Nunn, Chief Counsel for

Ethics, Office of the General Counsel,

U.S. Small Business Administration,

409 Third Street SW., Washington, D.C.

20416, (202) 205–6867, or Martin D.

Teckler, Deputy General Counsel (202)

205–6642.

SUPPLEMENTARY INFORMATION: The Small

Business Administration repeals

numerous provisions of its existing

standards of conduct regulations at 13

CFR Part 105 as either superseded by

the Office of Government Ethics’ (OGE)

Uniform Standards of Ethical Conduct

for Employees of the Executive Branch

(5 CFR Part 2635), eliminated by other

regulatory authority, or determined to

be inappropriate for continued

inclusion in this part. SBA repeals the

following sections of 13 CFR Part 105:

105.101 through 105.301; 105.401;

105.402; 105.405; 105.406 through

105.408; 105.501 through 105.505;

105.506 except paragraph (g)(1); 105.507

through 105.515; 105.518 through

105.521 and 105.901. The remaining

provisions of 13 CFR Part 105 are

renumbered and renamed ‘‘Standards of

Conduct and Employee Restrictions and

Responsibilities.’’

In place of SBA’s former standards at

13 CFR Part 105, SBA issues a residual

cross reference provision at new 13 CFR

section 105.101 to refer to the uniform

Standards of Conduct and financial

disclosure regulations for Executive

Branch employees and SBA’s

Supplemental Standards of Conduct

regulation. Additionally, SBA reissues,

in the new 13 CFR Part 105, several

provisions regarding other employee

responsibilities.

Proposed changes to Part 105 were

published in the Federal Register on

November 27, 1995 (60 FR 58260). The

public was invited to comment during

a thirty day comment period. SBA

received seven comments (all of which

concerned post-employment

restrictions) during that time period.

SBA discusses the comments and SBA’s

response here.

Section 105.201, ‘‘Definitions’’: This

section provides definitions unique to

SBA which are applicable throughout

Part 105. The definition of ‘‘SBA

Assistance’’ (§ 105.201(e)) was proposed

to be amended to include all

participating lenders, including banks,

as recipients of SBA Assistance. This

proposal generated several comments,

which noted that SBA employees with

specialized knowledge losing jobs due

to downsizing would now be precluded

from employment with participating

lenders, and that such employment is

often the only means available to such

employees to maintain a customary

standard of living and make use of

education and skills. SBA employees

commented that the SBA would be

unable to attract private sector

employees to the SBA if they believe

that they will be unmarketable when

they leave the government. In addition,

participants in SBA’s financial programs

commented that the interpretation

would deny them a qualified universe of

potential employees to the detriment of

the delivery of SBA’s programs.

As a result of these comments, and

those relative to the other sections

contained in the proposal (discussed

below), SBA has determined that

revision of the definition will be

deferred. This final rule therefore

merely restates the existing definition of

SBA Assistance, and does not adopt the

proposed change, pending further

review.

SBA also received three comments

concerning Section 105.202,

‘‘Employment of Former Employee by

Person Previously the Recipient of SBA

Assistance’’. This section, the first of

two sections providing restrictions

relating to former SBA employees, was

not changed by the proposed rule,

although the preamble to this section

did not make that fact completely clear.

All of the comments were directed at

the effect on § 105.202 of the addition of

participating lenders as recipients of

SBA Assistance to the definition section

of section 105.201(e).

All three commenters were concerned

that agency employees losing their

employment as a result of an

involuntary separation or those

otherwise seeking post-SBA

employment would be unfairly denied

employment best suited for their

specialized knowledge and education

and would be unable the maintain their

lifestyles and support their families by

virtue of section 105.202. One of the

commenters also argued that 105.202

should not apply to Certified

Development Companies (CDC’s),

because they are not business

enterprises receiving loans from the

agency and should therefore be exempt

from this rule.

As set forth above, the proposed rule

made no change to section 105.202

which is based upon section 13 of the

Small Business Act. To the extent all of

these comments were directed at the

addition of participating lenders to the

§ 105.201 definition of SBA Assistance,

that issue is addressed by the

withdrawal of the proposal.

The same issue arises in connection

with section 105.203 ‘‘SBA Assistance

to Person Employing Former SBA

Employee.’’ This section is based on the

same provision of the Small Business

Act as section 105.202. It prohibits SBA

from providing assistance to any Person

who has as an employee, owner,

partner, attorney, agent, owner of stock,

officer, director, creditor, or debtor, any

individual who, within one year prior to

the request for such assistance, was an

SBA employee, without the prior

approval of the SBA Standards of

Conduct Counselor.

Additionally, this section sets forth

the criteria to be used in reviewing such

applications for SBA Assistance.

SBA received one comment on this

section to the effect that this provision

unfairly penalizes a business which

hires a qualified former SBA employee.

As discussed above, to the extent that

the impact of this section was proposed

to be altered by adding Participating

lenders as recipients of Assistance, the

provision is unaffected by this rule.

However, it is SBA’s intent to revisit

both sections 105.202 and 105.203 at a

later point keeping in mind the

comments received in this rulemaking.

SBA received no other comments on

this rule. For a detailed description of

the other changes made to this rule,

please refer to SBA’s proposed rules,

published at 60 FR 58260 (November

27, 1995).