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Business Loan Program Temporary Changes; Paycheck Protection Program — Eligibility of Certain Telephone Cooperatives

Summary

This Federal Register page, Vol. 85, No. 113, Thursday, June 11, 2020, includes a Small Business Administration interim final rule, Business Loan Program Temporary Changes; Paycheck Protection Program - Eligibility of Certain Telephone Cooperatives. The summary says it supplements previously published interim final rules by providing guidance on additional eligibility requirements for certain telephone cooperatives and requests public comment. It gives an effective date of June 8, 2020 and says the rule applies to applications submitted under the Paycheck Protection Program through June 30, 2020, or until funds made available for this purpose are exhausted. The same page also carries an Agricultural Marketing Service rule on salable quantities and allotment percentages for spearmint oil produced in the Far West.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Department Of The Treasury Interim Final Rule On Eligibility Of Certain Telephone Cooperat
Case
Department Of The Treasury Interim Final Rule On Eligibility Of Certain Telephone Cooperatives Home 8Cd2937025

Cite this document

“Business Loan Program Temporary Changes; Paycheck Protection Program — Eligibility of Certain Telephone Cooperatives.” Original at home.treasury.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/department-of-the-treasury-interim-final-rule-on-eligibility-of-certain-telephone-cooperatives-home-8cd2937025/, SHA-256 e9cbcbfdc8e0e913a0cb41d2215c0fc2391cc9423816a71974cff540d496b853.

Full text

                                          35550              Federal Register / Vol. 85, No. 113 / Thursday, June 11, 2020 / Rules and Regulations

                                          each class of oil, including whether the                access to Government information and                      (b) Class 3 (Native) oil—a salable
                                          estimated season average price to                       services, and for other purposes.                      quantity of 1,230,531 pounds and an
                                          producers is likely to exceed parity.                     A proposed rule concerning this                      allotment percentage of 49 percent.
                                             Based on its review, the Committee                   action was published in the Federal                    Bruce Summers,
                                          believes that the salable quantities and                Register on February 20, 2020 (85 FR                   Administrator, Agricultural Marketing
                                          allotment percentages established in                    9699). Copies of the proposed rule were                Service.
                                          this rule will achieve the objectives
                                                                                                  also mailed or sent via facsimile to all               [FR Doc. 2020–10945 Filed 6–10–20; 8:45 am]
                                          sought. The Committee also believes
                                                                                                  Far West spearmint oil handlers. The                   BILLING CODE 3410–02–P
                                          that, should there be no volume
                                          regulation in effect for the upcoming                   proposal was made available through
                                          marketing year, the Far West spearmint                  the internet by USDA and the Office of
                                          oil industry will return to the                         the Federal Register. A 60-day comment                 SMALL BUSINESS ADMINISTRATION
                                          pronounced cyclical price patterns that                 period ending April 20, 2020, was
                                          occurred prior to the promulgation of                   provided for interested persons to                     13 CFR Parts 120 and 121
                                          the Order. As previously stated, annual                 respond to the proposal. No comments                   [Docket Number SBA–2020–0034]
                                          salable quantities and allotment                        were received during the comment
                                                                                                                                                         RIN 3245–AH48
                                          percentages have been issued for both                   period. Accordingly, no changes will be
                                          classes of spearmint oil since the                      made to the rule as proposed.                          Business Loan Program Temporary
                                          Order’s inception. The salable quantities                 A small business guide on complying                  Changes; Paycheck Protection
                                          and allotment percentages established                   with fruit, vegetable, and specialty crop              Program—Eligibility of Certain
                                          herein are expected to facilitate the goal              marketing agreements and orders may                    Telephone Cooperatives
                                          of maintaining orderly marketing                        be viewed at: https://
                                          conditions for Far West spearmint oil                                                                          AGENCY: U.S. Small Business
                                                                                                  www.ams.usda.gov/rules-regulations/
                                          for the 2020–2021 and future marketing                                                                         Administration.
                                                                                                  moa/small-businesses. Any questions
                                          years.                                                  about the compliance guide should be                   ACTION: Interim final rule.
                                             Costs to producers and handlers, large               sent to Richard Lower at the previously
                                          and small, resulting from this action are                                                                      SUMMARY: On April 2, 2020, the U.S.
                                                                                                  mentioned address in the FOR FURTHER                   Small Business Administration (SBA)
                                          expected to be offset by the benefits
                                                                                                  INFORMATION CONTACT section.                           posted an interim final rule announcing
                                          derived from a more stable market and
                                          increased returns. The benefits of this                   After consideration of all relevant                  the implementation of the Coronavirus
                                          rule are expected to be equally available               material presented, including the                      Aid, Relief, and Economic Security Act
                                          to all producers and handlers regardless                information and recommendation                         (CARES Act). The CARES Act
                                          of their size.                                          submitted by the Committee and other                   temporarily adds a new program, titled
                                             In accordance with the Paperwork                     available information, it is hereby found              the ‘‘Paycheck Protection Program,’’ to
                                          Reduction Act of 1995 (44 U.S.C.                        that this rule will tend to effectuate the             the SBA’s 7(a) Loan Program. The
                                          Chapter 35), the Order’s information                    declared policy of the Act.                            CARES Act also provides for forgiveness
                                          collection requirements have been                                                                              of up to the full principal amount of
                                          previously approved by OMB and                          List of Subjects in 7 CFR Part 985                     qualifying loans guaranteed under the
                                          assigned OMB No. 0581–0178,                                                                                    Paycheck Protection Program (PPP). The
                                                                                                    Marketing agreements, Oils and fats,                 PPP is intended to provide economic
                                          Vegetable and Specialty Crops. No                       Reporting and recordkeeping
                                          changes are necessary in those                                                                                 relief to small businesses nationwide
                                                                                                  requirements, Spearmint oil.                           adversely impacted by the Coronavirus
                                          requirements as a result of this action.
                                          Should any changes become necessary,                      For the reasons set forth in the                     Disease 2019 (COVID–19). This interim
                                          they would be submitted to OMB for                      preamble, 7 CFR part 985 is amended as                 final rule supplements previously
                                          approval.                                               follows:                                               published interim final rules by
                                             This rule establishes the salable                                                                           providing guidance on additional
                                          quantities and allotment percentages for                PART 985—MARKETING ORDER                               eligibility requirements for certain
                                          Scotch spearmint oil and Native                         REGULATING THE HANDLING OF                             telephone cooperatives, and requests
                                          spearmint oil produced in the Far West                  SPEARMINT OIL PRODUCED IN THE                          public comment.
                                          during the 2020–2021 marketing year.                    FAR WEST                                               DATES:
                                          Accordingly, this rule does not impose                                                                            Effective date: This rule is effective
                                          any additional reporting or                             ■ 1. The authority citation for 7 CFR                  June 8, 2020.
                                          recordkeeping requirements on either                    part 985 continues to read as follows:                    Applicability date: This interim final
                                          small or large spearmint oil producers                                                                         rule applies to applications submitted
                                                                                                    Authority: 7 U.S.C. 601–674.
                                          or handlers. As with all Federal                                                                               under the Paycheck Protection Program
                                          marketing order programs, reports and                   ■ 2. Add § 985.235 to read as follows:                 through June 30, 2020, or until funds
                                          forms are periodically reviewed to                                                                             made available for this purpose are
                                          reduce information requirements and                     § 985.235 Salable quantities and allotment             exhausted.
                                          duplication by industry and public-                     percentages—2020–2021 marketing year.                     Comment date: Comments must be
                                          sector agencies. USDA has not                              The salable quantity and allotment                  received on or before July 13, 2020.
                                          identified any relevant Federal rules                   percentage for each class of spearmint                 ADDRESSES: You may submit comments,
                                          that duplicate, overlap, or conflict with               oil during the marketing year beginning                identified by number SBA–2020–0034




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                                          this final rule.                                        on June 1, 2020, shall be as follows:                  through the Federal eRulemaking Portal:
                                             AMS is committed to complying with                                                                          http://www.regulations.gov. Follow the
                                          the E-Government Act, to promote the                       (a) Class 1 (Scotch) oil—a salable                  instructions for submitting comments.
                                          use of the internet and other                           quantity of 838,404 pounds and an                      SBA will post all comments on
                                          information technologies to provide                     allotment percentage of 38 percent.                    www.regulations.gov. If you wish to
                                          increased opportunities for citizen                                                                            submit confidential business


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                                                             Federal Register / Vol. 85, No. 113 / Thursday, June 11, 2020 / Rules and Regulations                                         35551

                                          information (CBI) as defined in the User                affected by the coronavirus pandemic.                  that they may be exempt from taxation
                                          Notice at www.regulations.gov, please                   The Small Business Administration                      or organized under state nonprofit
                                          send an email to ppp-ifr@sba.gov.                       (SBA) received funding and authority                   statutes in certain jurisdictions, while
                                          Highlight the information that you                      through the CARES Act to modify                        they operate as businesses. For example,
                                          consider to be CBI and explain why you                  existing loan programs and establish a                 telephone cooperatives provide
                                          believe SBA should hold this                            new loan program to assist small                       telecommunications services and
                                          information as confidential. SBA will                   businesses nationwide adversely                        distribute capital credits to their
                                          review the information and make the                     impacted by the COVID–19 emergency.                    member-owners.
                                          final determination whether it will                     Section 1102 of the CARES Act                             On May 14, 2020, SBA posted an
                                          publish the information.                                temporarily permits SBA to guarantee                   interim final rule providing that certain
                                          FOR FURTHER INFORMATION CONTACT: A                      100 percent of 7(a) loans under a new                  electric cooperatives, which may also be
                                          Call Center Representative at 833–572–                  program titled the ‘‘Paycheck Protection               exempt from taxation or organized
                                          0502, or the local SBA Field Office; the                Program.’’ Section 1106 of the CARES                   under state nonprofit statutes, but
                                          list of offices can be found at https://                Act provides for forgiveness of up to the              which return any excess of net operating
                                          www.sba.gov/tools/local-assistance/                     full principal amount of qualifying                    revenues over their cost of operations to
                                          districtoffices.                                        loans guaranteed under the Paycheck                    their member-owners, will be
                                                                                                  Protection Program (PPP). On April 24,                 considered to be ‘‘a business entity
                                          SUPPLEMENTARY INFORMATION: SBA                                                                                 organized for profit’’ under 13 CFR
                                                                                                  2020, the President signed the Paycheck
                                          posted additional interim final rules on                Protection Program and Health Care                     121.105(a)(1) for purposes of the PPP
                                          April 3, 2020, April 14, 2020, April 24,                Enhancement Act (Pub. L. 116–139),                     and therefore eligible to receive PPP
                                          2020, April 28, 2020, April 30, 2020,                   which provided additional funding and                  loans, provided they meet other
                                          May 5, 2020, May 8, 2020, May 13,                       authority for the PPP.                                 eligibility criteria. See 85 FR 29847.
                                          2020, May 14, 2020, May 18, 2020, May                      Among the categories of entities that               Because telephone cooperatives also
                                          20, 2020, and May 22, 2020; SBA and                     are eligible PPP borrowers are business                operate as businesses, as described
                                          Treasury posted an additional interim                   concerns and certain nonprofit                         below, and to provide certainty to
                                          final rule on May 22, 2020; and the                     organizations described in section                     potential PPP applicants, this interim
                                          Department of the Treasury posted an                    501(c)(3) of the Internal Revenue Code                 final rule provides that, for purposes of
                                          additional interim final rule on April                  (the Code). This interim final rule                    the PPP, a telephone cooperative that is
                                          28, 2020. This interim final rule                       addresses the eligibility of mutual or                 exempt from federal income taxation
                                          supplements the previously posted                       cooperative telephone companies that                   under section 501(c)(12) of the Code
                                          interim final rules by providing                        are described in section 501(c)(12) of the             also will be considered to be ‘‘a business
                                          guidance on additional eligibility                      Internal Revenue Code (telephone                       entity organized for profit’’ under 13
                                          requirements for certain telephone                      cooperatives) as PPP borrowers. Existing               CFR 121.105(a)(1). As a result, such
                                          cooperatives, and requests public                       SBA regulations define ‘‘business                      telephone cooperatives are eligible PPP
                                          comment.                                                concern’’ as ‘‘a business entity                       borrowers, as long as other eligibility
                                          I. Background Information                               organized for profit,’’ subject to certain             requirements are met.
                                                                                                  limitations. 13 CFR 121.105(a)(1).
                                             On March 13, 2020, President Trump                                                                          II. Comments and Immediate Effective
                                                                                                  Generally, telephone cooperatives are
                                          declared the ongoing Coronavirus                                                                               Date
                                                                                                  organizations that are owned and
                                          Disease 2019 (COVID–19) pandemic of                     controlled by members who receive                         The intent of the Act is that SBA
                                          sufficient severity and magnitude to                    telecommunications services from the                   provide relief to America’s small
                                          warrant an emergency declaration for all                cooperative. Telephone cooperatives                    businesses expeditiously. This intent,
                                          States, territories, and the District of                periodically return any excess of net                  along with the dramatic decrease in
                                          Columbia. With the COVID–19                             operating revenues over their cost of                  economic activity nationwide, provides
                                          emergency, many small businesses                        operations—such as through ‘‘capital                   good cause for SBA to dispense with the
                                          nationwide are experiencing economic                    credits’’—to their member-owners. In                   30-day delayed effective date provided
                                          hardship as a direct result of the                      addition, telephone cooperatives                       in the Administrative Procedure Act.
                                          Federal, State, tribal, and local public                meeting the description of section                     Specifically, it is critical to meet
                                          health measures that are being taken to                 501(c)(12) of the Code may be exempt                   lenders’ and borrowers’ need for clarity
                                          minimize the public’s exposure to the                   from federal income taxation under                     concerning program requirements as
                                          virus. These measures, some of which                    section 501(a) of the Code. To qualify                 rapidly as possible because the last day
                                          are government-mandated, are being                      for the exemption, a telephone                         eligible borrowers can apply for and
                                          implemented nationwide and include                      cooperative must receive at least 85                   receive a loan is June 30, 2020.
                                          the closures of restaurants, bars, and                  percent of its income each year from its                  This interim final rule supplements
                                          gyms. In addition, based on the advice                  members. The 85 percent member                         previous regulations and guidance on an
                                          of public health officials, other                       income test is computed annually. A                    important, discrete issue. The
                                          measures, such as keeping a safe                        telephone cooperative may be exempt in                 immediate effective date of this interim
                                          distance from others or even stay-at-                   one year, lose exemption in another year               final rule will benefit lenders so that
                                          home orders, are being implemented,                     if it does not derive at least 85 percent              they can swiftly close and disburse
                                          resulting in a dramatic decrease in                     of its income from members, and                        loans to small businesses. This interim
                                          economic activity as the public avoids                  become exempt in a third year. Because                 final rule is effective without advance
                                          malls, retail stores, and other                         of their potential tax exemption under                 notice and public comment because
                                          businesses.                                             section 501(c)(12) of the Code,                        section 1114 of the Act authorizes SBA




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                                             On March 27, 2020, the President                     telephone cooperatives have faced                      to issue regulations to implement Title
                                          signed the Coronavirus Aid, Relief, and                 uncertainty about their eligibility to                 I of the Act without regard to notice
                                          Economic Security Act (the CARES Act)                   receive PPP loans.                                     requirements. This rule is being issued
                                          (Pub. L. 116–136) to provide emergency                     The Administrator, in consultation                  to allow for immediate implementation
                                          assistance and health care response for                 with the Secretary, understands that                   of this program. Although this interim
                                          individuals, families, and businesses                   telephone cooperatives are unusual in                  final rule is effective immediately,


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                                          35552              Federal Register / Vol. 85, No. 113 / Thursday, June 11, 2020 / Rules and Regulations

                                          comments are solicited from interested                  Administrator, in consultation with the                 SBA has determined that this rule has
                                          members of the public on all aspects of                 Secretary, has determined that this                     no federalism implications warranting
                                          the interim final rule, including section               treatment is appropriate to effectuate the              preparation of a federalism assessment.
                                          III below. These comments must be                       purposes of the CARES Act to provide
                                                                                                                                                          Paperwork Reduction Act, 44 U.S.C.
                                          submitted on or before July 13, 2020.                   assistance to eligible PPP borrowers,
                                                                                                                                                          Chapter 35
                                          SBA will consider these comments and                    including business concerns, affected by
                                          the need for making any revisions as a                  the COVID–19 emergency.                                   SBA has determined that this rule
                                          result of these comments.                                                                                       will not impose new or modify existing
                                                                                                  2. Additional Information                               recordkeeping or reporting requirements
                                          III. Paycheck Protection Program                           SBA may provide further guidance, if                 under the Paperwork Reduction Act.
                                          Additional Eligibility Criteria                         needed, through SBA notices that will
                                                                                                                                                          Regulatory Flexibility Act (RFA)
                                          Overview                                                be posted on SBA’s website at
                                                                                                  www.sba.gov. Questions on the                              The Regulatory Flexibility Act (RFA)
                                             The CARES Act was enacted to                                                                                 generally requires that when an agency
                                                                                                  Paycheck Protection Program may be
                                          provide immediate assistance to                                                                                 issues a proposed rule, or a final rule
                                                                                                  directed to the Lender Relations
                                          individuals, families, and organizations                                                                        pursuant to section 553(b) of the APA or
                                                                                                  Specialist in the local SBA Field Office.
                                          affected by the COVID–19 emergency.                                                                             another law, the agency must prepare a
                                                                                                  The local SBA Field Office may be
                                          Among the provisions contained in the                                                                           regulatory flexibility analysis that meets
                                                                                                  found at https://www.sba.gov/tools/
                                          CARES Act are provisions authorizing                                                                            the requirements of the RFA and
                                                                                                  local-assistance/districtoffices.
                                          SBA to temporarily guarantee loans                                                                              publish such analysis in the Federal
                                          under the PPP. Loans under the PPP                      Compliance With Executive Orders                        Register. 5 U.S.C. 603, 604. Specifically,
                                          will be 100 percent guaranteed by SBA,                  12866, 12988, 13132, 13563, and 13771,                  the RFA normally requires agencies to
                                          and the full principal amount of the                    the Paperwork Reduction Act (44 U.S.C.                  describe the impact of a rulemaking on
                                          loans and any accrued interest may                      Ch. 35), and the Regulatory Flexibility                 small entities by providing a regulatory
                                          qualify for loan forgiveness. Additional                Act (5 U.S.C. 601–612)                                  impact analysis. Such analysis must
                                          information about the PPP is available                                                                          address the consideration of regulatory
                                                                                                  Executive Orders 12866, 13563, and
                                          in interim final rules published by SBA                                                                         options that would lessen the economic
                                                                                                  13771
                                          and the Department of the Treasury in                                                                           effect of the rule on small entities. The
                                          the Federal Register (85 FR 20811, 85                      This interim final rule is
                                                                                                                                                          RFA defines a ‘‘small entity’’ as (1) a
                                          FR 20817, 85 FR 21747, 85 FR 23450,                     economically significant for the
                                                                                                                                                          proprietary firm meeting the size
                                          85 FR 23917, 85 FR 26321, 85 FR 26324,                  purposes of Executive Orders 12866 and
                                                                                                                                                          standards of the Small Business
                                          85 FR 27287, 85 FR 29845, 85 FR 29842,                  13563, and is considered a major rule
                                                                                                                                                          Administration (SBA); (2) a nonprofit
                                          85 FR 29847, 85 FR 30835, 85 FR 31357,                  under the Congressional Review Act.
                                                                                                                                                          organization that is not dominant in its
                                          85 FR 33004, and 85 FR 33010),                          SBA, however, is proceeding under the
                                                                                                                                                          field; or (3) a small government
                                          collectively, the PPP Interim Final                     emergency provision at Executive Order
                                                                                                                                                          jurisdiction with a population of less
                                          Rules.                                                  12866 Section 6(a)(3)(D) based on the
                                                                                                                                                          than 50,000. 5 U.S.C. 601(3)–(6). Except
                                                                                                  need to move expeditiously to mitigate
                                          1. Eligibility of Certain Telephone                                                                             for such small government jurisdictions,
                                                                                                  the current economic conditions arising
                                          Cooperatives                                                                                                    neither State nor local governments are
                                                                                                  from the COVID–19 emergency. This
                                                                                                                                                          ‘‘small entities.’’ Similarly, for purposes
                                             Are telephone cooperatives that are                  rule’s designation under Executive
                                                                                                                                                          of the RFA, individual persons are not
                                          exempt from federal income taxation                     Order 13771 will be informed by public
                                                                                                                                                          small entities. The requirement to
                                          under section 501(c)(12) of the Internal                comment.
                                                                                                                                                          conduct a regulatory impact analysis
                                          Revenue Code eligible for a PPP loan?
                                             Yes. Telephone cooperatives provide                  Executive Order 12988                                   does not apply if the head of the agency
                                          telecommunications services and return                    SBA has drafted this rule, to the                     ‘‘certifies that the rule will not, if
                                          any excess of net operating revenues                    extent practicable, in accordance with                  promulgated, have a significant
                                          over their cost of operations to their                  the standards set forth in section 3(a)                 economic impact on a substantial
                                          member-owners, such as through capital                  and 3(b)(2) of Executive Order 12988, to                number of small entities.’’ 5 U.S.C.
                                          credits. Accordingly, for purposes of the               minimize litigation, eliminate                          605(b). The agency must, however,
                                          PPP, the Administrator, in consultation                 ambiguity, and reduce burden. The rule                  publish the certification in the Federal
                                          with the Secretary, has determined that                 has no preemptive or retroactive effect.                Register at the time of publication of the
                                          a telephone cooperative that is exempt                                                                          rule, ‘‘along with a statement providing
                                                                                                  Executive Order 13132                                   the factual basis for such certification.’’
                                          from federal income taxation under
                                          section 501(c)(12) of the Internal                        SBA has determined that this rule                     If the agency head has not waived the
                                          Revenue Code will be considered to be                   will not have substantial direct effects                requirements for a regulatory flexibility
                                          ‘‘a business entity organized for profit’’              on the States, on the relationship                      analysis in accordance with the RFA’s
                                          for purposes of 13 CFR 121.105(a)(1). As                between the National Government and                     waiver provision, and no other RFA
                                          a result, such entities are eligible PPP                the States, or on the distribution of                   exception applies, the agency must
                                          borrowers, as long as other eligibility                 power and responsibilities among the                    prepare the regulatory flexibility
                                          requirements are met. To be eligible, a                 various layers of government. Therefore,                analysis and publish it in the Federal
                                          telephone cooperative must satisfy the                                                                          Register at the time of promulgation or,
                                          employee-based size standard                            qualify for the PPP as a small business concern if,     if the rule is promulgated in response to
                                                                                                  as of March 27, 2020: (1) The maximum tangible net      an emergency that makes timely
                                          established in the CARES Act, SBA’s                     worth of the business was not more than $15
                                          employee-based size standard                            million; and (2) the average net income after
                                                                                                                                                          compliance impracticable, within 180




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                                          corresponding to its primary industry, if               Federal income taxes (excluding any carry-over          days of publication of the final rule. 5
                                          higher, or both tests in SBA’s                          losses) of the business for the two full fiscal years   U.S.C. 604(a), 608(b). Rules that are
                                                                                                  before the date of the application is not more than     exempt from notice and comment are
                                          ‘‘alternative size standard.’’ 1 The                    $5 million. For a telephone cooperative that does
                                                                                                  not have net income, the telephone cooperative’s
                                                                                                                                                          also exempt from the RFA requirements,
                                            1 Under the alternative size standard, a business     capital credits distributed to its owner-members        including conducting a regulatory
                                          concern, including a telephone cooperative, can         will be considered its net income.                      flexibility analysis, when among other


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                                                             Federal Register / Vol. 85, No. 113 / Thursday, June 11, 2020 / Rules and Regulations                                         35553

                                          things the agency for good cause finds                     • Federal eRulemaking Portal: Go to                 located behind crew seat 2 and forward
                                          that notice and public procedure are                    https://www.regulations.gov. Follow the                of passenger seat 5. The investigation
                                          impracticable, unnecessary, or contrary                 instructions for submitting comments.                  into the incident determined the
                                          to the public interest. SBA Office of                      • Fax: 202–493–2251.                                probable root cause was a malfunction
                                          Advocacy guide: How to Comply with                         • Mail: U.S. Department of                          of the headset amplifier (part number
                                          the Regulatory Flexibility Act, Ch.1. p.9.              Transportation, Docket Operations, M–                  (P/N) 38849–001) and the microphone
                                          Accordingly, SBA is not required to                     30, West Building Ground Floor, Room                   interface (P/N 35809–001) circuit card
                                          conduct a regulatory flexibility analysis.              W12–140, 1200 New Jersey Avenue SE,                    assemblies for the 3.5 millimeter (mm)
                                          Jovita Carranza,
                                                                                                  Washington, DC 20590.                                  audio and microphone jacks. This
                                                                                                     • Hand Delivery: Deliver to Mail                    malfunction can result in an electrical
                                          Administrator.
                                                                                                  address above between 9 a.m. and 5                     short and subsequent uncontained cabin
                                          [FR Doc. 2020–12623 Filed 6–8–20; 2:00 pm]
                                                                                                  p.m., Monday through Friday, except                    fire without activating circuit
                                          BILLING CODE 8026–03–P
                                                                                                  Federal holidays.                                      protection.
                                                                                                     For service information identified in                  This condition, if not addressed,
                                                                                                  this final rule, contact Cirrus Design                 could lead to an uncontained cabin fire,
                                          DEPARTMENT OF TRANSPORTATION                            Corporation; 4515 Taylor Circle Duluth,                resulting in possible occupant injury or
                                                                                                  MN 55811; phone: (800) 279–4322;                       loss of airplane control.
                                          Federal Aviation Administration
                                                                                                  email: info@cirrusaircraft.com; internet:              Related Service Information Under 1
                                                                                                  https://cirrusaircraft.com. You may                    CFR Part 51
                                          14 CFR Part 39
                                                                                                  view the referenced service information
                                          [Docket No. FAA–2020–0546; Project                      at the FAA, Airworthiness Products                       The FAA reviewed Cirrus Alert
                                          Identifier 2020–CE–001–AD; Amendment                    Section, Operational Safety Branch, 901                Service Bulletin Number SBA5X–23–03,
                                          39–21137; AD 2020–03–50]                                Locust, Kansas City, Missouri 64106.                   dated February 7, 2020 (SBA5X–23–03).
                                          RIN 2120–AA64                                           For information on the availability of                 The service information contains
                                                                                                  this material at the FAA, call (816) 329–              instructions to disconnect and remove
                                          Airworthiness Directives; Cirrus                        4148. It is also available on the internet             the headset amplifier and microphone
                                          Design Corporation Airplanes                            at https://www.regulations.gov by                      interface circuit card assemblies for the
                                                                                                  searching for and locating Docket No.                  3.5 mm audio and microphone jacks.
                                          AGENCY: Federal Aviation                                                                                       This service information is reasonably
                                          Administration (FAA), DOT.                              FAA–2020–0546.
                                                                                                                                                         available because the interested parties
                                          ACTION: Final rule; request for                         Examining the AD Docket                                have access to it through their normal
                                          comments.                                                  You may examine the AD docket on                    course of business or by the means
                                          SUMMARY: The FAA is adopting a new                      the internet at https://                               identified in the ADDRESSES section.
                                          airworthiness directive (AD) for certain                www.regulations.gov by searching for                   FAA’s Determination
                                          Cirrus Design Corporation (Cirrus)                      and locating Docket No. FAA–2020–
                                                                                                  0546; or in person at Docket Operations                   The FAA is issuing this AD because
                                          Model SF–50 airplanes. This AD was                                                                             it evaluated all the relevant information
                                          sent previously as an emergency AD to                   between 9 a.m. and 5 p.m., Monday
                                                                                                  through Friday, except Federal holidays.               and determined the unsafe condition
                                          all known U.S. owners and operators of                                                                         described previously is likely to exist or
                                          these airplanes. This AD requires                       The AD docket contains this final rule,
                                                                                                  the regulatory evaluation, any                         develop in other products of the same
                                          disconnecting and removing the headset                                                                         type design.
                                          amplifier and microphone interface                      comments received, and other
                                          circuit card assemblies for the 3.5 mm                  information. The street address for                    AD Requirements
                                          audio and microphone jacks. This AD                     Docket Operations is listed above.
                                                                                                                                                           This AD requires accomplishing the
                                          was prompted by a cabin fire incident                   Comments will be available in the AD
                                                                                                                                                         actions specified in SBA5X–23–03 as
                                          that occurred on a Cirrus Model SF50                    docket shortly after receipt.
                                                                                                                                                         described previously.
                                          airplane during ground operations                       FOR FURTHER INFORMATION CONTACT:
                                          where the operator observed smoke                       Joseph Dubusky, Aerospace Engineer,                    FAA’s Justification and Determination
                                          exiting from behind the right sidewall                  Chicago ACO Branch, FAA, 2300 East                     of the Effective Date
                                          interior panel. The FAA is issuing this                 Devon Avenue, Room 107, Des Plaines,                      An unsafe condition exists that
                                          AD to address the unsafe condition on                   Illinois 60018; phone: 847–294–7543;                   required the immediate adoption of
                                          these products.                                         fax: 847–294–7834; email:                              Emergency AD 2020–03–50, issued on
                                          DATES: This AD is effective June 11,                    joseph.dubusky@faa.gov.                                February 14, 2020, to all known U.S.
                                          2020 to all persons except those persons                SUPPLEMENTARY INFORMATION:                             owners and operators of these airplanes.
                                          to whom it was made immediately                                                                                The FAA found that the risk to the
                                          effective by Emergency AD 2020–03–50,                   Discussion                                             flying public justified waiving notice
                                          issued on February 14, 2020, which                         On February 14, 2020, the FAA issued                and comment prior to adoption of this
                                          contained the requirements of this                      Emergency AD 2020–03–05, which                         rule because immediate corrective
                                          amendment.                                              requires disconnecting and removing                    action was necessary to prevent an
                                             The Director of the Federal Register                 the headset amplifier and microphone                   electrical short and subsequent
                                          approved the incorporation by reference                 interface circuit card assemblies. This                uncontained cabin fire, which could
                                          of a certain publication identified in this             emergency AD was sent previously to                    result in occupant injury or loss of
                                          AD as of June 11, 2020.                                 all known U.S. owners and operators of                 airplane control. These conditions still
                                             The FAA must receive comments on




jbell on DSKJLSW7X2PROD with RULES
                                                                                                  these airplanes. This action was                       exist and the AD is hereby published in
                                          this AD by July 27, 2020.                               prompted by a cabin fire incident that                 the Federal Register as an amendment
                                          ADDRESSES: You may send comments,                       occurred on a Cirrus Model SF50                        to section 39.13 of the Federal Aviation
                                          using the procedures found in 14 CFR                    airplane during ground operations. The                 Regulations (14 CFR 39.13) to make it
                                          11.43 and 11.45, by any of the following                operator observed smoke exiting from                   effective to all persons. Therefore, the
                                          methods:                                                behind the right sidewall interior panel               FAA finds good cause that notice and


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