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Disaster Assistance Loan Program Statutory Updates (rule, 88 FR 24107, April 19, 2023)

Summary

A direct final rule from the U.S. Small Business Administration (SBA) amending the disaster assistance regulations to reflect changes made to the Small Business Act by several recent statutes. It was published in the Federal Register on April 19, 2023 (Vol. 88, No. 75). It provides two new types of disaster declaration authority and revises primary eligibility for the Military Reservist Economic Injury Disaster Loan (MREIDL) program. SBA revises 13 CFR 123.3, including a paragraph on the authority under section 1110(f) of the CARES Act to declare an economic injury disaster following a presidential emergency declaration under Section 501(b) of the Stafford Act. The rule is effective June 5, 2023 unless significant adverse comment is received by May 19, 2023.

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Cite this document

“Disaster Assistance Loan Program Statutory Updates (rule, 88 FR 24107, April 19, 2023).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/disaster-assistance-loan-program-statutory-updates-rule-88-fr-24107-ap-d5c617ab94/, SHA-256 191b7f442a1f0f42583ddee7e1752e151addb6abf6e29b0fc9b15988696dbddb.

Full text

                                                                                                                                                                                             24107

                                            Rules and Regulations                                                                                           Federal Register
                                                                                                                                                            Vol. 88, No. 75

                                                                                                                                                            Wednesday, April 19, 2023



                                            This section of the FEDERAL REGISTER                    information and make the final                          business concern, private nonprofit
                                            contains regulatory documents having general            determination whether it will publish                   organization, or small agricultural
                                            applicability and legal effect, most of which           the information.                                        cooperative in the rural area has
                                            are keyed to and codified in the Code of                                                                        incurred ‘‘significant damage.’’ The
                                                                                                    FOR FURTHER INFORMATION CONTACT: Eric
                                            Federal Regulations, which is published under                                                                   Disaster Assistance for Rural
                                            50 titles pursuant to 44 U.S.C. 1510.
                                                                                                    Wall, Office of Disaster Recovery and
                                                                                                    Resilience, 409 3rd St. SW, Washington,                 Communities Act defines ‘‘rural area’’ as
                                            The Code of Federal Regulations is sold by              DC 20416, (202) 205–6739.                               any county or other political
                                            the Superintendent of Documents.                        SUPPLEMENTARY INFORMATION:                              subdivision of a State, the District of
                                                                                                                                                            Columbia, or a territory or possession of
                                                                                                    I. Background                                           the United States that is designated as
                                            SMALL BUSINESS ADMINISTRATION                              This direct final rule implements                    a rural area by the Bureau of the Census.
                                                                                                    regulatory changes required by three                    The Act defines ‘‘significant damage’’ as
                                            13 CFR Part 123                                         recent laws amending the Small                          uninsured losses of 40 percent or more
                                            RIN 3245–AH33                                           Business Act: The Disaster Assistance                   of the estimated fair replacement value
                                                                                                    for Rural Communities Act, Public Law                   or pre-disaster fair market value of the
                                            Disaster Assistance Loan Program                        117–249 (December 20, 2022); the                        damaged property, whichever is lower.
                                            Statutory Updates                                       Coronavirus Aid, Relief, and Economic                   SBA has incorporated these new
                                            AGENCY: U.S. Small Business
                                                                                                    Security Act (CARES Act), Public Law                    statutory definitions into new
                                            Administration.                                         116–136 (March 27, 2020); and the                       § 123.3(a)(6).
                                                                                                    National Defense Authorization Act for                     SBA is also adding paragraph (a)(7) to
                                            ACTION: Direct final rule.
                                                                                                    Fiscal Year 2020 (NDAA 2020), Public                    describe SBA’s new declaration
                                            SUMMARY: SBA is amending the disaster                   Law 116–92 (December 20, 2019). SBA                     authority authorized by the CARES Act.
                                            assistance regulations to reflect changes               has already implemented all of these                    15 U.S.C. 636(b)(2)(D). Section 1110(f)
                                            made to the Small Business Act by                       statutory changes except for the new                    of the CARES Act provides SBA the
                                            several recent statutes. These changes                  rural declaration authority authorized                  authority to declare an economic injury
                                            provide two new types of disaster                       by the Disaster Assistance for Rural                    disaster following a declaration of an
                                            declaration authority and revise                        Communities Act, which requires SBA                     emergency involving Federal primary
                                            eligibility for the Military Reservist                  to issue implementing regulations                       responsibility under Section 501(b) of
                                            Economic Injury Disaster Loan                           within 120 days after enactment. The                    the Stafford Act by the President. 42
                                            (MREIDL) program. This direct final                     specific regulatory changes are further                 U.S.C. 5191(b). When the President
                                            rule conforms the regulations to the Act                described below.                                        makes such a declaration, SBA will
                                            by adopting the new statutory                           II. Description of Regulatory Changes                   ‘‘deem that such an emergency affects
                                            requirements without change.                                                                                    each State or subdivision thereof
                                                                                                       SBA is revising 13 CFR 123.3, How                    (including counties), and that each State
                                            DATES: This rule is effective June 5, 2023
                                                                                                    are disaster declarations made?, by                     or subdivision has sufficient economic
                                            without further action, unless
                                                                                                    adding two additional ways SBA is                       damage to small business concerns to
                                            significant adverse comment is received
                                                                                                    authorized to declare disasters. New                    qualify for assistance under this
                                            by May 19, 2023. If significant adverse
                                                                                                    paragraph (a)(6) describes SBA’s                        paragraph and [SBA] shall accept
                                            comment is received, SBA will publish
                                                                                                    declaration authority under the Disaster
                                            a timely withdrawal of the rule in the                                                                          applications for such assistance
                                                                                                    Assistance for Rural Communities Act.
                                            Federal Register.                                                                                               immediately.’’ See second proviso of
                                                                                                    15 U.S.C. 636(b)(16). Under this new
                                            ADDRESSES: You may submit comments,                                                                             paragraph following 15 U.S.C.
                                                                                                    authority, SBA is authorized to declare
                                            identified by number SBA–2023–0001                                                                              636(b)(2)(E). This means that after the
                                                                                                    a disaster in a ‘‘rural area’’ upon request
                                            through the Federal eRulemaking Portal:                                                                         President declares an emergency
                                                                                                    by the Governor of the State or the Chief
                                            http://www.regulations.gov. Follow the                                                                          involving Federal primary responsibility
                                                                                                    Executive of the Indian tribal
                                            instructions for submitting comments.                                                                           under Section 501(b) of the Stafford Act,
                                                                                                    government in which the rural area is
                                               SBA will post all comments on                                                                                SBA will immediately make an
                                                                                                    located if the following conditions are
                                            www.regulations.gov. If you wish to                                                                             economic injury disaster declaration
                                                                                                    met: (1) the rural area has received a
                                            submit confidential business                            major disaster declaration from the                     using this new authority. Once SBA
                                            information (CBI) as defined in the User                President under Section 401 of the                      makes this declaration, small businesses
                                            Notice at www.regulations.gov, please                   Robert T. Stafford Disaster Relief and                  and nonprofit organizations of any size
                                            send an email to Eric Wall at eric.wall@                Emergency Assistance Act (the Stafford                  would be eligible to apply for economic
                                            sba.gov and highlight the information                   Act) (42 U.S.C. 5170),1 (2) individual                  injury disaster loans.
                                            that you consider to be CBI and explain                 assistance under section 408 of the                        SBA is revising 13 CFR 123.4, What
                                            why you believe SBA should hold this                    Stafford Act was not authorized for the                 is a disaster area and why is it
                                            information as confidential. All other                  rural area, and (3) any home, small                     important?, to provide that contiguous
                                            comments must be submitted through                                                                              counties are not included in the disaster




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                                            the Federal eRulemaking Portal                             1 SBA notes that the Senate Report to the Disaster   area for rural disaster declarations. SBA
                                            described above. Highlight the                          Assistance for Rural Communities Act states that        is adopting this interpretation based on
                                            information that you consider to be CBI                 Congress intends that SBA’s rural disaster              clear Congressional intent, as stated in
                                            and explain why you believe SBA                         declaration authority is triggered solely in            the Senate Report to the Disaster
                                                                                                    situations where the President has declared a major
                                            should hold this information as                         disaster limited to public assistance only. S. Rep.     Assistance for Rural Communities Act:
                                            confidential. SBA will review the                       No. 117–103, Section I (May 3, 2022).                   ‘‘The SBA declaration authorized under


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                                            24108              Federal Register / Vol. 88, No. 75 / Wednesday, April 19, 2023 / Rules and Regulations

                                            paragraph 16 of section 7(b) may not be                    member of a reserve component of the                rural disaster declaration authority, all
                                            applied to contiguous counties.’’ S. Rep.                  Armed Forces ordered to active service.             of the changes are already in effect—
                                            No. 117–103, Section IV (May 3, 2022).                     SBA is also revising paragraph (c) to               SBA is merely updating the regulations
                                            When SBA makes a rural disaster                            remove the definition of ‘‘period of                in order to conform to the statute. In
                                            declaration, physical and economic                         military conflict’’ and replace it with the         implementing the rural disaster
                                            injury disaster loans will be available                    definition of ‘‘active service’’, as                declaration authority, SBA is adopting
                                            only in the declared disaster area, not in                 provided in the NDAA 2020.                          regulations that conform to the statute
                                            any counties or political subdivisions                        SBA is revising 13 CFR 123.501,                  and legislative history without any
                                            that are contiguous to the declared area.                  Under what circumstances is our                     extraneous interpretation. Because the
                                               SBA is also revising this provision to                  business eligible to be considered for a            changes in this rule are prescribed by
                                            state that when SBA issues an economic                     Military Reservist Economic Injury                  statute, SBA does not expect significant
                                            injury disaster declaration in response                    Disaster Loan?, to remove the words                 adverse comments.
                                            to a determination of an emergency                         ‘‘active duty’’ and replace them with
                                            involving Federal primary responsibility                   ‘‘active service’’ in paragraph (a). SBA is         Compliance With Executive Orders
                                            by the President, the disaster area shall                  also revising paragraph (c) to remove the           12866, 12988, 13132, 13175, the
                                            include each State or subdivision                          requirement that the essential employee             Congressional Review Act (5 U.S.C.
                                            thereof (including counties) included in                   be called to active duty during a                   801–808), Paperwork Reduction Act (44
                                            the President’s emergency                                  military conflict and replace it with the           U.S.C., Ch. 35), and the Regulatory
                                            determination. If the President                            requirement that the essential employee             Flexibility Act (5 U.S.C. 601–612)
                                            determines that a nation-wide                              be called to active service for a period            Executive Orders 12866 and 13563
                                            emergency exists, then SBA will issue a                    of more than 30 consecutive days.                     The Office of Management and Budget
                                            nation-wide economic injury disaster                          SBA is similarly revising 13 CFR
                                                                                                                                                           has determined that this rule is not a
                                            declaration.                                               123.507, Under what circumstances will
                                                                                                                                                           significant regulatory action under
                                               SBA is revising several sections in 13                  SBA consider waiving the $2 million
                                                                                                                                                           Executive Order 12866, and a
                                            CFR part 123, subpart F, Military                          loan limit?, to remove the requirement
                                                                                                                                                           Regulatory Impact Analysis is not
                                            Reservist Economic Injury Disaster                         that the essential employee be called to
                                                                                                                                                           required. No action is warranted for
                                            Loans, to reflect changes made by Sec.                     active duty during a military conflict
                                                                                                                                                           Executive Order 13563 as the rule is not
                                            877 of the NDAA 2020. The NDAA 2020                        and replace it with the requirement that
                                                                                                                                                           significant and no Regulatory Impact
                                            expanded eligibility for Military                          the essential employee be called to
                                                                                                                                                           Analysis is required.
                                            Reservist Economic Injury Disaster                         active service for a period of more than
                                            Loans (MREIDLs) from reservists called                     30 consecutive days.                                Executive Order 12988
                                            to ‘‘active duty’’ to reservists called to                    Finally, SBA is revising §§ 123.503,                This action meets applicable
                                            ‘‘active service.’’ The term ‘‘active                      123.504(a) and (f), 123.505, 123.506,               standards set forth in sections 3(a) and
                                            service’’ has the meaning given in 10                      123.507, and 123.511 to remove the                  3(b)(2) of Executive Order 12988, Civil
                                            U.S.C. 101(d)(3) and includes both                         words ‘‘active duty’’ and replace them              Justice Reform, to minimize litigation,
                                            ‘‘active duty’’ and ‘‘full time National                   with ‘‘active service.’’ All of the changes         eliminate ambiguity, and reduce
                                            Guard duty.’’ 2 The NDAA also removed                      to 13 CFR subpart F have already been               burden. The action does not have
                                            the requirement that the reservist be                      implemented; this direct final rule                 preemptive effect or retroactive effect.
                                            serving during a ‘‘period of military                      merely updates the regulations to reflect
                                            conflict’’ and replaced it with the                        current statutory requirements.                     Executive Order 13132
                                            requirement that the reservist be serving                                                                        This rule does not have federalism
                                                                                                       II. Justification for Direct Final Rule
                                            for a period of more than 30 consecutive                                                                       implications as defined in Executive
                                            days.3                                                        Agencies typically utilize direct final          Order 13132. It will not have substantial
                                               SBA is revising 13 CFR 123.500,                         rulemakings for routine, non-                       direct effects on the States, on the
                                            Definitions, paragraph (b) to reflect the                  controversial regulatory actions that are           relationship between the National
                                            new definition of military reservist as a                  unlikely to receive adverse comments.               Government and the States, or on the
                                                                                                       In direct final rulemaking, an agency               distribution of power and
                                               2 ‘‘Active duty’’ is defined as full-time duty in the   publishes a final rule with a statement             responsibilities among the various
                                            active military service of the United States. Such         that the rule will go into effect unless
                                            term includes full-time training duty, annual                                                                  levels of government, as specified in the
                                            training duty, and attendance, while in the active
                                                                                                       the agency receives significant adverse             Executive Order. As such it does not
                                            military service, at a school designated as a service      comment within a specified period.                  warrant the preparation of a Federalism
                                            school by law or by the Secretary of the military          Significant adverse comments are                    Assessment.
                                            department concerned. 10 U.S.C. 101(d)(1). The             comments that provide strong
                                            term ‘‘full-time National Guard duty’’ means                                                                   Executive Order 13175
                                            training or other duty, other than inactive duty,
                                                                                                       justifications why the rule should not be
                                            performed by a member of the Army National                 adopted or for changing the rule. If the               This rule does not have tribal
                                            Guard of the United States or the Air National             agency receives no significant adverse              implications under Executive Order
                                            Guard of the United States in the member’s status          comment in response to the direct final             13175, Consultation and Coordination
                                            as a member of the National Guard of a State or
                                            territory, the Commonwealth of Puerto Rico, or the
                                                                                                       rule, the rule goes into effect. If the             with Indian Tribal Governments,
                                            District of Columbia under section 316, 502, 503,          agency receives significant adverse                 because it does not have a substantial
                                            504, or 505 of title 32 [32 USCS §§ 316, 502, 503,         comment, the agency withdraws the                   direct effect on one or more Indian
                                            504, or 505] for which the member is entitled to pay       direct final rule and may instead issue             tribes, on the relationship between the
                                            from the United States or for which the member has
                                            waived pay from the United States. 10 U.S.C.
                                                                                                       a proposed rulemaking.                              Federal Government and Indian tribes,
                                            101(d)(5).                                                    SBA has determined that the                      or on the distribution of power and




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                                               3 ‘‘Period of military conflict’’ was defined as (i)    regulatory changes addressed in this                responsibilities between the Federal
                                            a period of war declared by the Congress; (ii) a           direct final rulemaking are routine, non-           Government and Indian tribes.
                                            period of national emergency declared by the               controversial, and not likely to result in
                                            Congress or by the President; or (iii) a period of a
                                                                                                       adverse comments. SBA is                            Congressional Review Act
                                            contingency operation, as defined in section 101(a)
                                            of title 10, United States Code. See Sec. 402(a) of        implementing changes required by                      Subtitle E of the Small Business
                                            Public Law 106–50, (August 17, 1999).                      statute and, with the exception of the              Regulatory Enforcement Fairness Act of


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                                                             Federal Register / Vol. 88, No. 75 / Wednesday, April 19, 2023 / Rules and Regulations                                           24109

                                            1996, also known as the Congressional                     Authority: 15 U.S.C. 632, 634(b)(6), 636(b),        include contiguous counties for both
                                            Review Act or CRA, generally provides                   636(d), 657n, and 9009.                               physical, economic injury and, in some
                                            that before a rule may take effect, the                 ■ 2. Amend § 123.3 by revising                        cases IDAP assistance. Rural disaster
                                            agency promulgating the rule must                       paragraph (a) introductory text and                   declarations do not include assistance
                                            submit a rule report, which includes a                  adding paragraphs (a)(6) and (7) to read              for contiguous counties. Contiguous
                                            copy of the rule, to each House of the                  as follows:                                           counties or other political subdivisions
                                            Congress and to the Comptroller General                                                                       are those land areas which abut the land
                                            of the United States. SBA will submit a                 § 123.3    How are disaster declarations              area of the declared disaster area
                                            report containing this rule and other                   made?                                                 without geographic separation other
                                            required information to the U.S. Senate,                  (a) There are seven ways in which                   than by a minor body of water, not to
                                            the U.S. House of Representatives, and                  disaster declarations are issued which                exceed one mile between the land areas
                                            the Comptroller General of the United                   make SBA disaster loans possible:                     of such counties. When SBA issues an
                                            States. A major rule under the CRA                      *      *    *     *     *                             economic injury disaster declaration in
                                            cannot take effect until 60 days after it                 (6) SBA makes a physical disaster                   response to a determination of an
                                            is published in the Federal Register.                   declaration in a rural area (rural disaster           emergency involving Federal primary
                                            The Office of Information and                           declaration) upon request from the                    responsibility by the President, the
                                            Regulatory Affairs has determined that                  Governor of the State or the Chief                    disaster area shall include each State or
                                            this rule is not a ‘‘major rule’’ as defined            Executive of the Indian tribal                        subdivision thereof (including counties)
                                            by 5 U.S.C. 804(2). Therefore, this rule                government in which the rural area is                 included in the President’s emergency
                                            is not subject to the 60-day restriction.               located. Rural area means any county or               determination.
                                            Paperwork Reduction Act, 44 U.S.C.                      other political subdivision of a State, the           ■ 4. Amend § 123.500 by revising
                                            Ch. 35                                                  District of Columbia, or a territory or               paragraphs (b) and (c) to read as follows:
                                                                                                    possession of the United States that is
                                              SBA has determined that this rule                     designated as a rural area by the Bureau              § 123.500    Definitions.
                                            does not impose additional reporting or                 of the Census. The following conditions               *     *     *     *     *
                                            recordkeeping requirements under the                    must be met:                                            (b) Military reservist is a member of a
                                            Paperwork Reduction Act, 44 U.S.C.,                       (i) The President has declared a Major              reserve component of the Armed Forces
                                            Chapter 35.                                             Disaster for the rural area, but has not              ordered to active service.
                                            Regulatory Flexibility Act, 5 U.S.C. 601                authorized individual assistance; and
                                                                                                                                                            (c) Active service has the meaning
                                                                                                      (ii) Any home, small business
                                                                                                                                                          given in 10 U.S.C. 101(d)(3):
                                               The Regulatory Flexibility Act (RFA),                concern, private nonprofit organization,
                                            5 U.S.C. 601–612, generally requires                    or small agricultural cooperative in the                (1) Service on active duty; or
                                            that when an agency issues a proposed                   rural area has incurred significant                     (2) Full-time National Guard duty.
                                            rule, or a final rule pursuant to section               damage. Significant damage means                      *     *     *     *     *
                                            553(b) of the APA or another law, the                   uninsured losses of 40 percent or more                ■ 5. Amend § 123.501 by revising
                                            agency must prepare a regulatory                        of the estimated fair replacement value               paragraphs (a) and (c) to read as follows:
                                            flexibility analysis that meets the                     or pre-disaster fair market value of the
                                            requirements of the RFA and publish                     damaged property, whichever is lower.                 § 123.501 Under what circumstances is
                                            such analysis in the Federal Register. 5                  (7) SBA makes an economic injury                    our business eligible to be considered for
                                            U.S.C. 603, 604.                                        disaster declaration in response to a                 a Military Reservist Economic Injury
                                               Rules that are exempt from notice and                determination of an emergency                         Disaster Loan?
                                            comment are also exempt from the RFA                    involving Federal primary responsibility              *     *       *    *    *
                                            requirements, including conducting a                    by the President.                                       (a) It is a small business as defined in
                                            regulatory flexibility analysis, such as                *      *    *     *     *                             13 CFR part 121 when the essential
                                            when—among other exceptions—the                         ■ 3. Revise § 123.4 to read as follows:               employee was called to active service,
                                            agency for good cause finds that notice                                                                       *     *       *    *    *
                                            and public procedure are impracticable,                 § 123.4 What is a disaster area and why is
                                                                                                    it important?                                           (c) The essential employee has been
                                            unnecessary, or contrary to the public
                                                                                                                                                          called-up to active service for a period
                                            interest. SBA Office of Advocacy Guide:                   Each disaster declaration defines the               of more than 30 consecutive days,
                                            How to Comply with the Regulatory                       geographical areas affected by the
                                            Flexibility Act, Ch. 1. p. 9. Since this                disaster. Only those victims located in               *     *       *    *    *
                                            rule is exempt from notice and                          the declared disaster area are eligible to            ■ 6. Amend § 123.507 by revising
                                            comment, SBA is not required to                         apply for SBA disaster loans. When the                paragraph (b) to read as follows:
                                            conduct a regulatory flexibility analysis.              President declares a major disaster, the
                                                                                                    Federal Emergency Management Agency                   § 123.507 Under what circumstances will
                                            List of Subjects in 13 CFR Part 123                                                                           SBA consider waiving the $2 million loan
                                                                                                    defines the disaster area. In major                   limit?
                                              Disaster assistance, Loan mitigation,                 disasters, economic injury disaster loans
                                            Loan programs—physical disaster                         and IDAP loans may be made for                        *     *     *     *     *
                                            (home, business).                                       victims in contiguous counties or other                 (b) Your small business is in
                                                                                                    political subdivisions, provided,                     imminent danger of going out of
                                              For the reasons set forth in the
                                                                                                    however that with respect to major                    business as a result of one or more
                                            preamble, the SBA amends 13 CFR part
                                                                                                    disasters which authorize public                      essential employees being called up to
                                            123 as follows:




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                                                                                                    assistance only, SBA shall not make                   active service for a period of more than
                                            PART 123—DISASTER LOAN                                  economic injury disaster or IDAP loans                30 consecutive days, and a loan in
                                            PROGRAM                                                 in counties contiguous to the disaster                excess of $2 million is necessary to
                                                                                                    area. Except for rural disaster                       reopen or keep open the small business;
                                            ■ 1. The authority citation for part 123                declarations (as defined in § 123.3),                 and
                                            is revised to read as follows:                          disaster declarations issued by SBA                   *     *     *     *     *


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                                            24110            Federal Register / Vol. 88, No. 75 / Wednesday, April 19, 2023 / Rules and Regulations

                                            § 123.503, 123.504, 123.505, 123.506, 123.511           concerning the process for submitting                 Definitions
                                               [Amended]                                            comments should be submitted to Anna                     The rule follows the definitional
                                            ■ 7. In addition to the amendments set                  Kelley at 202–482–2200 or anna.kelley@                template provided in the HAVANA Act
                                            forth above, in part 123, remove the                    trade.gov. The information collection                 and its predecessors. The rule defines
                                            words ‘‘active duty’’ and add in their                  form associated with this rule,                       certain categories of individuals as
                                            place the words ‘‘active service’’ in the               Eligibility Questionnaire for HAVANA                  employees, as well as those who are not
                                            following places:                                       Act Patients, is available at https://                considered employees.
                                            ■ a. Section 123.503;                                   www.Regulations.gov under Docket No.                     The term ‘‘covered employee’’
                                            ■ b. Section 123.504(a) (three places)                  DOC–2023–0001 and at https://                         captures Department Foreign Service
                                            and (f);                                                www.commerce.gov/havana-act.                          and Civil Service employees (regardless
                                            ■ c. Section 123.505 heading and text;                  FOR FURTHER INFORMATION CONTACT:                      of the nature of their appointment), as
                                            ■ d. Section 123.506; and                               Charles Cutshall, Chief Privacy Officer,              well as National Oceanic and
                                            ■ e. Section 123.511 (two places).                      at 202–482–5735 or ccutshall@doc.gov.                 Atmospheric Administration
                                            Isabella Casillas Guzman,                               SUPPLEMENTARY INFORMATION:                            Commissioned Corps Officers and
                                            Administrator.                                                                                                students providing voluntary services
                                                                                                    Background
                                            [FR Doc. 2023–08010 Filed 4–18–23; 8:45 am]
                                                                                                                                                          under 5 U.S.C. 3111 who, on or after
                                                                                                       On December 20, 2019, Congress gave                January 1, 2016, became injured by a
                                            BILLING CODE P
                                                                                                    authority (Pub. L. 116–94, division J,                qualifying injury to the brain while they
                                                                                                    title IX, section 901) to the Department              were an employee of the Department.
                                                                                                    of State to pay benefits to certain                      The term ‘‘covered individual’’
                                            DEPARTMENT OF COMMERCE                                  individuals for injuries suffered after               captures any former employee of the
                                                                                                    January 1, 2016 in the Republic of Cuba,              Department (including retired or
                                            Office of the Secretary
                                                                                                    the People’s Republic of China or                     separated employees) who, on or after
                                                                                                    another foreign country designated by                 January 1, 2016, became injured by a
                                            15 CFR Part 3
                                                                                                    the Department of State, in connection                qualifying injury to the brain while they
                                            [Docket No. 230412–0101]                                with certain injuries designated by the               were an employee of the Department.
                                            RIN 0605–AA64                                           Secretary of State. These benefits were                  The term ‘‘covered dependent’’
                                                                                                    limited to Department of State                        captures a family member of a
                                            Implementation of HAVANA Act of                         employees, their dependents and other                 Department current or former employee
                                            2021                                                    individuals affiliated with the                       who, on or after January 1, 2016, became
                                                                                                    Department of State.                                  injured by reason of a qualifying injury
                                            AGENCY: Department of Commerce.                            On January 1, 2021, Congress                       to the brain while the dependent’s
                                            ACTION: Interim final rule; request for                 amended that law (Pub. L. 116–283, div.               sponsor was an employee of the
                                            comments.                                               A, title XI, section 1110), authorizing               Department. For purposes of
                                                                                                    other Federal Government agencies                     determining whether an individual is a
                                            SUMMARY: This rule implements the                       (such as the Department) to provide                   covered dependent, the term ‘‘family
                                            HAVANA Act of 2021 (the Act) for the                    similar benefits to their own employees               members’’ includes unmarried children
                                            Department of Commerce (Department).                    for those injuries. Those provisions are              under 21 years of age (or certain other
                                            The Act provides the authority for the                  codified at 22 U.S.C. 2680b.                          children) at the time of injury; parents;
                                            Secretary of Commerce and other                            On October 8, 2021, the ‘‘Helping                  sisters and brothers; and spouses. Step-
                                            agency heads to provide payments to                     American Victims Afflicted by                         parents and step-siblings are included
                                            certain individuals who have incurred                   Neurological Attacks’’ (HAVANA) Act                   in the definition.
                                            qualifying injuries to the brain. The rule              of 2021 became law (Pub. L. 117–46). In                  The definition of ‘‘qualifying injury to
                                            covers current and former Department                    the latest Act, Congress authorized                   the brain’’ is based on current medical
                                            employees, and dependents of current                    Federal Government agencies to                        practices related to brain injuries.
                                            or former employees.                                    compensate affected current employees,                Further, the injury must have occurred
                                            DATES:                                                  former employees, and their dependents                in connection with certain hostile acts,
                                               Effective date: This interim final rule              for qualifying injuries to the brain.                 including war, terrorist activity, or other
                                            is effective on April 19, 2023.                         Section 3 of the HAVANA Act of 2021                   incidents designated by the Secretary of
                                               Comments due date: To be assured of                  removed the requirement in Public Law                 State or the Secretary of Commerce, as
                                            consideration, written comments on the                  116–94, division J, title IX, section 901,            permitted by law, and must not have
                                            interim final rule must be received no                  that the qualifying injury occur in ‘‘the             been the result of the willful
                                            later than May 19, 2023.                                Republic of Cuba, People’s Republic of                misconduct of the individual. The
                                            ADDRESSES: Submit comments on this                      China, or other foreign country                       individual must have: an acute injury to
                                            interim final rule through the Federal                  designated by the Secretary of State’’ for            the brain such as, but not limited to, a
                                            eRulemaking Portal at https://                          the purpose of making a payment under                 concussion, penetrating injury, or as the
                                            www.Regulations.gov, Docket No. DOC–                    the HAVANA Act. The Act also requires                 consequence of an event that leads to
                                            2023–0001. All comments submitted                       the Department (and other agencies) to                permanent alterations in brain function
                                            during the comment period permitted                     ‘‘prescribe regulations’’ implementing                as demonstrated by confirming
                                            by this document will be a matter of                    the HAVANA Act not later than 180                     correlative findings on imaging studies
                                            public record and will generally be                     days after the effective date of the Act.             (to include computed tomography scan
                                            available on the Federal eRulemaking                    This interim final rule implements the                (CT), or magnetic resonance imaging




lotter on DSK11XQN23PROD with RULES1
                                            Portal at https://www.Regulations.gov.                  HAVANA Act of 2021.                                   scan (MRI)), or electroencephalogram
                                               Comments may also be submitted by                       The regulation herein applies only to              (EEG); or a medical diagnosis of a
                                            mail to: HAVANA Rule Comments,                          current and former employees of the                   traumatic brain injury (TBI) that
                                            Attention: Anna Kelley, Rooms 1844–                     Department, and dependents of current                 required active medical treatment for 12
                                            1846, 1401 Constitution Avenue NW,                      or former employees, as defined in § 3.2              months or more; or acute onset of new
                                            Washington, DC 20230. Any questions                     of this rule.                                         persistent, disabling neurologic


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