[Federal Register Volume 62, Number 20 (Thursday, January 30, 1997)]
[Proposed Rules]
[Pages 4497-4499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-2316]
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DEPARTMENT OF THE INTERIOR
Bureau of Indian Affairs
25 CFR Part 286
RIN 1076-AD70
Indian Business Development Program
AGENCY: Bureau of Indian Affairs, Interior.
Action: Proposed rule.
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SUMMARY: The Bureau of Indian Affairs (BIA) is proposing to revise the
regulations governing Indian Business Development Program (IBDP)
grants. The rule has been abbreviated and rewritten in plain English as
a part of the President's initiative to make rules easier to
understand.
DATES: Comments must be received on or before March 31, 1997.
ADDRESSES: Mail comments to Nancy Jemison, Director, Office of Economic
Development, Bureau of Indian Affairs, Department of the Interior, 1849
C St. NW, Mail Stop 2061-MIB, Washington, DC 20240; OR, hand deliver
them to Room 2061 at the above address. Comments will be available for
inspection at this address from 9:00 a.m. to 4:00 p.m., Monday through
Friday beginning approximately 2 weeks after publication of this
document in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Woody Sneed, Financial Analyst, Office
of Economic Development, Bureau of Indian Affairs at telephone (202)
208-4796.
SUPPLEMENTARY INFORMATION:
Background
The IBDP grant program has been discontinued but grantees having
already received grants must report on the financial status of their
businesses for five years after date of receipt of the grants. The new
rule deletes references to applications and their required contents but
retains reporting requirements.
Supplementary Information
Publication of the proposed rule by the Department of the Interior
(Department) provides the public an opportunity to participate in the
rulemaking process. Interested persons may submit written comments
regarding the proposed rule to the location identified in the ADDRESSES
section of this document.
Executive Order 12778
The Department has certified to the Office of Management and Budget
(OMB) that these proposed regulations meet the applicable standards
provided in sections 2(a) and 2(b)(2) of Executive Order 12778.
Executive Order 12866
This proposed rule is not a significant regulatory action under
Executive Order 12866 and has not been reviewed by the Office of
Management and Budget.
[[Page 4498]]
Regulatory Flexibility Act
This proposed rule will not have a significant economic impact on a
substantial number of small entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.).
Executive Order 12630
The Department has determined that this proposed rule does not have
``significant takings'' implications. The proposed rule does not
pertain to ``taking'' of private property interests, nor does it impact
private property.
Executive Order 12612
The Department has determined that this proposed rule does not have
significant federalism effects because it pertains solely to Federal-
tribal relations and will not interfere with the roles, rights and
responsibilities of states.
NEPA Statement
The Department has determined that this proposed rule does not
constitute a major Federal action significantly affecting the quality
of the human environment and that no detailed statement is required
pursuant to the National Environmental Policy Act of 1969.
Unfunded Mandates Act
This rule imposes no unfunded mandates on any governmental or
private entity and is in compliance with the provisions of the Unfunded
Mandates Act of 1995.
Paperwork Reduction Act of 1995
Section 286.7 contains information collection requirements. As
required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)),
the Department of the Interior has submitted a copy of these sections
to the Office of Management and Budget (OMB) for its review.
Indian tribes and individuals who have received grants must furnish
comparative balance sheets and profit and loss statements semiannually
for the first two years after the grant and annually for the next three
years. There is no BIA form for these statements since industry
standards dictate the financial statement requirements. The annual
reporting and recordkeeping burden for this collection of information
is estimated to average 1 hour for each response, including the time
for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing
collection of information. There are 252 grantees who report
semiannually and 377 who report annually. Thus, the total annual
reporting and record keeping burden for this collection is estimated to
be 881 hours. Respondents' hourly rate is similar to a Federal employee
GS-9 or $19.25 per hour.
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Total Burden Annual
CFR section 286.6 Number of Frequency annual hours per burden Cost to Total cost
respondents of response responses response hours respondents
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Annual....................................................... 377 1 377 1 377 $7,257 ...........
Semiannual................................................... 252 2 504 1 504 9,702 $16,959
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Organizations and individuals desiring to submit comments on the
information collection requirement should direct them to the Office of
Information and Regulatory Affairs, OMB, Room 10202, New Executive
Office Building, Washington, D.C. 20503; Attention: Desk Officer for
the U.S. Department of the Interior.
The Department considers comments by the public on this proposed
collection of information in:
Evaluating whether the proposed collection of information is
necessary for the proper performance of the functions of the
Department, including whether the information will have practical
utility;
Evaluating the accuracy of the Department's estimate of the burden
of the proposed collection of information, including the validity of
the methodology and assumptions used;
Enhancing the quality, usefulness, and clarity of the information
to be collected; and;
Minimizing the burden of the collection of information on those who
are to respond, including through the use of appropriate automated,
electronic, mechanical, or other collection techniques or other forms
of information technology.
OMB is required to make a decision concerning the collection of
information contained in these proposed regulations between 30 and 60
days after publication of this document in the Federal Register.
Therefore, a comment to the OMB is best assured of having its full
effect if OMB receives it within 30 days of publication. This does not
affect the deadline for the public to comment to the Bureau of Indian
Affairs on the proposed regulations.
Drafting Information
The primary author of this document is Woody Sneed, Office of
Economic Development, Bureau of Indian Affairs, Department of the
Interior.
List of Subjects in 25 CFR Part 286
Indians--business and finance.
For the reasons given in the preamble, Part 286 of Title 25,
Chapter I, Subchapter N of the Code of Federal Regulations is proposed
to be revised as set forth below.
PART 286--INDIAN BUSINESS DEVELOPMENT PROGRAM
Sec.
286.1 Definitions.
286.2 What is the purpose of these regulations?
286.3 Information collection.
286.4 What are the grant limitations and requirements that apply?
286.5 Do I need to return unused funds?
286.6 What reports must I submit?
Authority: 25 U.S.C. 1524.
Sec. 286.1 Definitions.
As used in this part 286:
Economic enterprise means any profit oriented Indian-owned,
commercial, industrial, agricultural, or business activity which must
be at least 51 per cent Indian owned.
Grantee means the recipient of a nonreimbursable grant under this
part.
Indian means a member of a Federally recognized Indian or Alaska
Native tribe or village who is eligible for assistance from the Bureau
of Indian Affairs.
Reservation means Indian reservation, California rancheria, public
domain Indian allotment, former Indian reservation in Oklahoma, and
land held by an incorporated Alaska Native group, regional corporation,
or village corporation under the provisions of the Alaska Native Claims
Settlement Act (85 Stat. 688), as amended.
Tribe means any Indian tribe, band, nation, rancheria, pueblo,
colony, or community. It includes any Alaska Native village or any
regional, village, urban, or group corporation--as defined in the
Alaska Native Claims Settlement
[[Page 4499]]
Act (85 Stat. 688) and recognized by the federal government as eligible
for services from the Bureau of Indian Affairs.
We, us, or our mean the Secretary of the Interior or the official
in the Bureau of Indian Affairs to whom the Secretary has delegated
authority.
Sec. 286.2 What is the purpose of these regulations?
This part prescribes regulations and procedures pertaining to the
Indian Business Development Program which has provided grants to
further economic development on Indian reservations. It gives
requirements you must follow on reporting the status of grants and
complying with grant conditions. It also establishes the circumstances
under which you must return grant funds.
Sec. 286.3 Information collection.
(a) The Office of Management and Budget has approved our collection
of information under 44 U.S.C. 3501 et seq. under clearance number
1076-0093. The collection of information helps the BIA to provide
assistance to failing businesses funded with grants and to compile
reports on the program's effectiveness.
(b) We estimate the public reporting for this information to
average 1 hour per response, including the time for reviewing
instructions, searching existing data sources, gathering and
maintaining the data needed, and completing and reviewing the
collection of information. These may be copies of financial statements
required by and furnished to the lender which provided the loan portion
of the total financing required. Send comments regarding this burden
estimate or any other aspect of this collection of information,
including suggestions for reducing the burden, to the Director of
Management and Administration, Bureau of Indian Affairs, 1849 C Street,
NW., Washington, DC 20240 and the Office of Management and Budget,
Paperwork Reduction Project (1076-0093), Washington, DC 20503.
Sec. 286.4 What are the grant limitations and requirements that apply?
An Indian tribe cannot receive over $250,000 in grants from this
program. The total of grants to an individual or any other non-tribal
business entity cannot exceed $100,000. Grantees must have obtained at
least 75 percent of the necessary financing from sources other than the
direct and guaranteed loan programs.
Sec. 286.5 Do I need to return unused funds?
(a) You must return all or a portion of the funds in the following
circumstances:
You Must Return the Entire Grant if, Within 3 Years of the Grant
You sell the business which received the grant and did not reinvest the
proceeds, with our approval, in a new business which contributes to the
reservation economy.
You move the business off the reservation and it no longer contributes
to the reservation economy.
Indian ownership and/or active management falls below 51 percent.
If a cooperative association, profits are not allocated for later
distribution to members.
(b) When do I need to return unused funds? We require you to return
unused grant funds if you do not initiate the economic enterprise
within the time stated in your grant agreement. Grant funds owed will
be deemed debt owed to the United States. The following table indicates
circumstances in which you must return funds.
You Must Return Unused Funds if You Did Not Initiate Your Grant Through
These Types of Actions
You have not obtained a lease if you needed to do this for your
enterprise.
You have not started construction, if that was necessary.
You have not purchased equipment or other materials needed for the
enterprise.
You have not performed other actions which were necessary to initiate
the enterprise.
(c) Can I obtain an extension of time to allow me to start my
enterprise? If we determine that circumstances exist beyond your
control we may extend the time we allow you to initiate the enterprise.
No program may be initiated and no funding may be disbursed after
September 30, 1997.
(d) What additional information do I need to provide for an
extension? You must provide assurance that you will initiate the
enterprise within the extended time period. We will write to the lender
regarding any actions which we propose requiring you to return grant
funds or of any proposal to extend the time.
Sec. 286.6 What reports must I submit?
(a) After receiving a grant, you must furnish us the following
information:
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Semiannually And annually
You must submit during during
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comparative balance sheets...... the first two years three
years of through five of
operation. operation.
profit and loss statements...... the first two years three
years of through five of
operation. operation.
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(b) You may use copies of financial statements which you furnish to
the lender who provides partial financing.
(c) If you fail to provide the necessary reports, we will require
repayment of grant funds. Grant funds owed will be deemed debt owed to
the United States.
Dated: January 10, 1997.
Ada E. Deer,
Assistant Secretary--Indian Affairs.
[FR Doc. 97-2316 Filed 1-29-97; 8:45 am]
BILLING CODE 4310-22-P
