[Federal Register Volume 64, Number 82 (Thursday, April 29, 1999)]
[Proposed Rules]
[Pages 23027-23028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-10680]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 64, No. 82 / Thursday, April 29, 1999 /
Proposed Rules
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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: Proposed rule.
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SUMMARY: SBA is revising a portion of its rules governing
Administrative Claims under the Tort Claims Act. Presently a claim must
be presented to the SBA District Counsel for the SBA District Office in
the same State as the claim. The SBA District Counsel has the authority
to deny a tort claim of $5,000 or less or to recommend any other action
to the SBA General Counsel. This proposed rule will provide 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 will
also vest 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: Submit comments must on or before June 1, 1999.
ADDRESSES: Address comments Timothy Treanor, Chief Counsel to the
Disaster Assistance Program, U.S. Small Business Administration, 409
3rd Street, SW., Suite 7500, Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT: Timothy Treanor, (202) 205-6885.
SUPPLEMENTARY INFORMATION: 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.
Currently, SBA's District Counsels who are not located in disaster
offices have 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 have the authority to deny or recommend approval of a
claim for $5,000 or less. Currently, for claims exceeding $5,000 but
less than $25,000, District Counsels investigate claims and forward
them with a recommendation to SBA's General Counsel.
Under this proposed regulation, a claimant could 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 are more than one District
Offices) or at the nearest Disaster Area Office. The proposed
regulation would provide 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 would also vest the Associate 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 proposed 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 proposed regulation also removes unnecessary language from
Secs. 114.106 and 114.108 which purports to characterize Sec. 114.107,
and makes other minor, technical changes.
Compliance with Executive Orders 12612, 12778, 12866, the
Regulatory Flexibility Act (5 U.S.C. Sec. 601 et seq.), and the
Paperwork Reduction Act (44 U.S.C. Ch. 35)
SBA certifies that this proposed rule is not a significant rule
within the meaning of Executive Order 12866; it is not likely to have
an annual economic effect of $100 million or more, result in a major
increase in cost or prices, or have a significant adverse effect on
competition or the United States economy. SBA also certifies that this
rule will not have a significant economic impact on a substantial
number of small entities within the meaning of the Regulatory
Flexibility Act, 5 U.S.C. Sec. 601 et seq. This rule provides for the
more efficient administration of SBA's responsibilities under the
Federal Tort Claims Act and imposes neither fees or additional
administrative responsibilities on small businesses. For purposes of
the Paperwork Reduction Act, 44 U.S.C. Ch. 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
has no 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 in 13 CFR Part 114
Claims.
For the reasons stated in the preamble, SBA proposes to amend 13
CFR part 114 as follows:
PART 114--ADMINISTRATIVE CLAIMS UNDER THE FEDERAL TORT CLAIMS ACT
AND REPRESENTATION AND INDEMNIFICATION OF SBA EMPLOYEES
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 you 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,
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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. Revise Sec. 114.105 (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 non-binding 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 or
designee, 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 our 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.
Aida Alvarez,
Administrator.
[FR Doc. 99-10680 Filed 4-28-99; 8:45 am]
BILLING CODE 8025-01-U
