[Federal Register Volume 64, Number 142 (Monday, July 26, 1999)]
[Rules and Regulations]
[Pages 40282-40283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18951]
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SMALL BUSINESS ADMINISTRATION
13 CFR Part 114
Administrative Claims Under the Tort Claims Act and
Representations and Indemnification of SBA Employees
AGENCY: Small Business Administration.
ACTION: Final rule.
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SUMMARY: With this rule, SBA revises a portion of its regulations
governing Administrative Claims under the Tort Claims Act. Previously,
a claim had to be presented to the SBA District Counsel for the SBA
District Office in the same State as the claim. The SBA District
Counsel had the authority to deny a tort claim of $5,000 or less or to
recommend any other action to the SBA General Counsel. This final rule
provides the same authority to Disaster Area Counsel when the claim is
based on the acts or omissions of employees of SBA's Disaster
Assistance Program. It also vests authority to approve or deny a tort
claim of $25,000 or less with SBA's Associate General Counsel for
Litigation, rather than the General Counsel.
DATES: This rule is effective July 26, 1999.
FOR FURTHER INFORMATION CONTACT: Timothy C. Treanor, Chief Counsel to
the Disaster Assistance Program, Office of General Counsel, at (202)
205-6885.
SUPPLEMENTARY INFORMATION: SBA promulgates, without change, a rule
which it proposed on April 29, 1999 (64 FR 23027). SBA received no
comments to the proposed rule.
Under the Disaster Assistance Program, SBA makes direct loans to
individual and business victims of natural disasters. SBA makes these
loans through an organizational structure that is separate and distinct
from other SBA lending programs. The Disaster Assistance Program
operates from four permanent Area Offices and from temporary local
offices that are from time to time established to handle such
disasters. SBA's Disaster Area Office employees and local office
employees are located in different offices from other SBA employees and
report to different managers.
Under the previous regulation, SBA's District Counsels who are not
located in disaster offices had exclusive authority to investigate any
claim arising within the jurisdiction covered by their Districts,
including claims based on acts or omissions of Disaster Assistance
employees. District Counsels also had the authority to deny or
recommend approval of a claim for $5,000 or less. Under the previous
regulation, District Counsels investigated claims exceeding $5,000 but
less than $25,000 and forwarded them with a recommendation to SBA's
General Counsel.
Under the new regulation, a claimant may file a tort claim against
SBA for the acts or omissions of an employee of SBA's Disaster
Assistance Program either at the State's District Office (the one
closest to the site of the injury if there is more than one District
Office) or at the nearest Disaster Area Office. The new regulation
provides authority identical to that of the District Counsel to the
Disaster Area Counsel to investigate and make recommendations
concerning claims arising from a Disaster Assistance employee's acts or
omissions. It also vests the Associate
[[Page 40283]]
General Counsel for Litigation with the authority to decide claims of
$25,000 or less, which is in line with the Agency's current practice.
The new regulation also removes inaccurate language from
Sec. 114.105 concerning the requirement that District Counsel consult
with the General Counsel before approving claims for less than $5,000
(the District Counsel does not have the authority to approve such
claims).
The new regulation also removes unnecessary language from
Secs. 114.106 and 114.108 which purport to characterize Sec. 114.107,
and makes other, minor, technical changes.
Compliance With Executive Orders 12612, 12988, and 12866, the
Regulatory Flexibility Act (5 U.S.C. 601-612), and the Paperwork
Reduction Act (44 U.S.C. Ch. 35)
SBA certifies that this rule does 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-
612. It merely changes SBA's internal procedures and serves to make
tort claim resolution more accessible to the general public. It will
not 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. Ch. 35, SBA
certifies that this rule contains no new reporting or recordkeeping
requirements.
For purposes of Executive Order 12612, SBA certifies that this rule
has no federalism implications warranting the preparation of a
federalism assessment.
For purposes of Executive Order 12988, SBA certifies that this rule
is drafted, to the extent practicable, in accordance with the standards
set forth in Section 3 of that Order.
List of Subjects in 13 CFR Part 114
Tort claims.
For the reasons stated in the preamble, the SBA amends 13 CFR part
114 as follows:
PART 114--ADMINISTRATIVE CLAIMS UNDER THE FEDERAL TORT CLAIMS ACT
AND REPRESENTATION AND INDEMNIFICATION OF SBA EMPLOYEES
Subpart A--Administrative Tort Claims
1. The authority citation for part 114 continues to read as
follows:
Authority: 15 U.S.C. 634 (b)(1), (b)(6); 28 U.S.C. 2672; 28 CFR
14.11.
2. Revise Sec. 114.102 to read as follows:
Sec. 114.102 When, where and how do I present a claim?
(a) When. You must present your claim within 2 years of the date of
accrual.
(b) Where. You may present your claim at the SBA District Office
nearest to the site of the action giving rise to the claim and within
the same state as the site. If your claim is based on the acts or
omissions of an employee of SBA's Disaster Assistance Program, you may
present your claim either to the appropriate SBA District Office or to
the Disaster Assistance Office nearest to the site of the action giving
rise to the claim.
(c) How. You must use an official form which can be obtained from
the SBA office where you file the claim or give other written notice of
your claim, stating the specific amount of your alleged damages and
providing enough information to enable SBA to investigate your claim.
You may present your claim in person or by mail, but your claim will
not be considered presented until SBA receives the written information.
3. In Sec. 114.105, revise paragraphs (b) and (c) to read as
follows:
Sec. 114.105 Who investigates and considers my claim?
* * * * *
(b) In those cases in which SBA investigates your claim, and which
arise out of the acts or omissions of employees other than employees of
the Disaster Assistance Program, the SBA District Counsel in the office
with jurisdiction over the site where the action giving rise to the
claim occurred will investigate and make recommendations or
determination with respect to your claim. In those cases in which SBA
investigates your claim, and which arise out of acts or omissions of
Disaster Assistance Program employees, the SBA Disaster Area Counsel in
the office with jurisdiction over the site where the action giving rise
to the claim occurred will investigate and make recommendations or a
determination with respect to your claim. The District Counsel, or
Disaster Area Counsel, where appropriate, may negotiate with you, and
is authorized to use alternative dispute resolution mechanisms, which
are nonbinding on SBA, when they may promote the prompt, fair and
efficient resolution of your claim.
(c) If your claim is for $5,000 or less, the District Counsel or
Disaster Area Counsel who investigates your claim may deny the claim,
or may recommend approval, compromise, or settlement of the claim to
the Associate General Counsel for Litigation, who will in such a case
take final action.
4. Revise Sec. 114.106 to read as follows:
Sec. 114.106 What if my claim exceeds $5,000?
The District Counsel or Disaster Area Counsel, as appropriate, must
review and investigate your claim and forward it with a report and
recommendation to the Associate General Counsel for Litigation, who may
approve or deny an award, compromise, or settlement of claims in excess
of $5,000, but not exceeding $25,000.
5. Revise Sec. 114.108 to read as follows:
Sec. 114.108 What if my claim is approved?
SBA will notify you in writing if it approves your claim. The
District Counsel or Disaster Area Counsel investigating your claim will
forward to you, your agent or legal representative the forms necessary
to indicate satisfaction of your claim and your acceptance of the
payment. Acceptance by you, your agent or your legal representative of
any award, compromise or settlement releases all your claims against
the United States under the Federal Tort Claims Act. This means that it
binds you, your agent or your legal representative, and any other
person on whose behalf or for whose benefit the claim was presented. It
also constitutes a complete release of your claim against the United
States and its employees. If you are represented by counsel, SBA will
designate you and your counsel as joint payees and will deliver the
check to counsel. Payment is contingent upon the waiver of your claim
and is subject to the availability of appropriated funds.
Dated: July 20, 1999.
Aida Alvarez,
Administrator.
[FR Doc. 99-18951 Filed 7-23-99; 8:45 am]
BILLING CODE 8025-01-P
