[Federal Register: January 13, 2009 (Volume 74, Number 8)]
[Rules and Regulations]
[Page 1867-1869]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13ja09-13]
[[Page 1867]]
-----------------------------------------------------------------------
Part V
Department of Housing and Urban Development
-----------------------------------------------------------------------
24 CFR Part 1003
Prohibition on Use of Indian Community Development Block Grant
Assistance for Employment Relocation Activities; Final Rule
[[Page 1868]]
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 1003
[Docket No. FR-5115-F-02]
RIN 2577-AC78
Prohibition on Use of Indian Community Development Block Grant
Assistance for Employment Relocation Activities; Final Rule
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule amends HUD's regulations for the Indian Community
Development Block Grant (ICDBG) program by prohibiting Indian tribes
and Alaska Native villages from using ICDBG funds to facilitate the
relocation of for-profit businesses from one labor market area to
another, if the relocation is likely to result in significant job loss.
More specifically, the rule prohibits Indian tribes and Alaska Native
villages from using ICDBG funds for ``job pirating'' activities that
are likely to result in significant job loss. ``Job pirating,'' in this
context, refers to the use of ICDBG funds to lure or attract a business
and its jobs from one community to another. To prevent the rule from
having an effect in situations where the relocation of a business
causes only an insignificant loss of jobs, the rule provides that a
loss of 25 or fewer jobs from an area, as a result of an ICDBG-funded
economic development project, would not constitute a significant loss
of jobs. This rule follows a September 8, 2008, proposed rule, for
which no public comments were received. This rule adopts the proposed
rule without change.
DATES: Effective Date: February 12, 2009.
FOR FURTHER INFORMATION CONTACT: Deborah Lalancette, Director, Office
of Grants Management, Office of Native American Programs, 1670
Broadway, 23rd Floor, Denver, CO 80202, telephone number 303-675-1600
(this is not a toll-free number). Hearing- or speech-impaired
individuals may access this number through TTY by calling the Federal
Information Relay Service toll-free at 800-877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
Title I of the Housing and Community Development Act of 1974, as
amended, (42 U.S.C. 5301-5320) (1974 HCD Act) establishes the statutory
framework for the Community Development Block Grant (CDBG) program.
Section 106(a)(1) of the 1974 HCD Act authorizes grants to Indian
tribes for the ICDBG program. HUD's regulations implementing the ICDBG
program are located at 24 CFR part 1003 (entitled ``Community
Development Block Grants for Indian Tribes and Alaska Native
Villages''). The purpose of the ICDBG program is the development of
viable Indian and Alaska Native communities, including the creation of
decent housing, suitable living environments, and economic
opportunities primarily for persons with low and moderate incomes.
Grantees may use their ICDBG funds for activities authorized by section
105(a) of the 1974 HCD Act.
Section 588 of the Quality Housing and Work Responsibility Act of
1998 amended section 105 of the 1974 HCD Act (42 U.S.C. 5305).
Specifically, section 588 added to section 105 a new subsection (h)
entitled ``Prohibition on Use of Assistance for Employment Relocation
Activities.'' This subsection prohibits the use of CDBG funds to
facilitate the relocation of for-profit businesses from one labor
market area to another, if the relocation is likely to result in
significant job loss. Subsection (h) states:
(h) Prohibition on Use of Assistance for Employment Relocation
Activities--Notwithstanding any other provision of law, no amount
from a grant under section 106 made in fiscal year 1999 or any
succeeding fiscal year may be used to assist directly in the
relocation of any industrial or commercial plant, facility, or
operation, from 1 area to another area, if the relocation is likely
to result in a significant loss of employment in the labor market
area from which the relocation occurs.
Applicants for ICDBG grants have been notified of this statutory
requirement in annual Notices of Funding Availability.
II. The September 8, 2008, Proposed Rule
On September 8, 2008, at 73 FR 52166, HUD published a rule that
proposed to implement subsection (h) of the 1974 HCD Act by revising
HUD's ICDBG program regulations in 24 CFR part 1003. The rule proposed
to establish a new Sec. 1003.209 (entitled ``Prohibition on Use of
Assistance for Employment Relocation Activities''), which would
describe the ICDBG job-piracy provisions. The September 8, 2008, rule
also proposed to amend Sec. 1003.505 (entitled ``Records to be
Maintained''), to ensure that appropriate recordkeeping requirements
are met. The preamble to the September 8, 2008, proposed rule provides
at 73 FR 52166 through 52168, a more detailed discussion of the
specific regulatory amendments proposed to be made to 24 CFR part 1003.
The September 8, 2008, proposed rule provided a 60-day public
comment period. HUD received no public comments by the date of the
close of the public comment period on November 7, 2008.
III. This Final Rule
At this final rule stage, HUD adopts the proposed rule without
change.
IV. Findings and Certifications
Paperwork Reduction Act
The information collection requirements contained in this rule have
been submitted to the Office of Management and Budget (OMB) for review
and approval under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3520), and assigned OMB control number 2577-0191.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
was made at the proposed rule stage in accordance with HUD regulations
at 24 CFR part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of
No Significant Impact remains applicable to this final rule and is
available for public inspection between the hours of 8 a.m. and 5 p.m.
eastern time on weekdays in the Regulations Division, Office of General
Counsel, Department of Housing and Urban Development, 451 7th Street,
SW., Room 10276, Washington, DC 20410-0500.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.)
generally requires an agency to conduct a regulatory flexibility
analysis of any rule subject to notice and comment rulemaking
requirements, unless the agency certifies that the rule will not have a
significant economic impact on a substantial number of small entities.
There are no anti-competitive discriminatory aspects of the rule with
regard to small entities and there are no unusual procedures that would
need to be complied with by small entities. Accordingly, the
undersigned certifies that this rule will not have a significant
economic impact on a substantial number of small entities.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from
[[Page 1869]]
publishing any rule that has federalism implications if the rule either
imposes substantial direct compliance costs on state and local
governments and is not required by statute, or the rule preempts state
law, unless the agency meets the consultation and funding requirements
of section 6 of the Order. This rule does not have federalism
implications and would not impose substantial direct compliance costs
on state and local governments nor preempt state law within the meaning
of the Order.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for federal agencies to
assess the effects of their regulatory actions on state, local, and
tribal governments and the private sector. This rule does not impose
any federal mandates on any state, local, or tribal governments or the
private sector within the meaning of the UMRA.
Catalog of Federal Domestic Assistance
The Catalog of Federal Domestic Assistance (CFDA) number for the
ICDBG program is 14.862.
List of Subjects in 24 CFR Part 1003
Alaska; Community development block grants; Grant programs--housing
and community development; Grant programs--Indians; Indians; Reporting
and recordkeeping requirements.
0
Accordingly, for the reasons discussed in the preamble, HUD amends 24
CFR part 1003 to read as follows:
PART 1003--COMMUNITY DEVELOPMENT BLOCK GRANTS FOR INDIAN TRIBES AND
ALASKA NATIVE VILLAGES
0
1. The authority citation for part 1003 continues to read as follows:
Authority: 42 U.S.C. 3535(d) and 5301-5320.
0
2. Add Sec. 1003.209 to read as follows:
Sec. 1003.209 Prohibition on use of assistance for employment
relocation activities.
(a) Prohibition. ICDBG funds may not be used to directly assist a
business, including a business expansion, in the relocation of a plant,
facility, or operation from one Identified Service Area to another
Identified Service Area, if the relocation is likely to result in a
significant loss of jobs in the Identified Service Area from which the
relocation occurs.
(b) Definitions. The following definitions apply to this section:
(1) Directly assist. Directly assist means the provision of ICDBG
funds for activities pursuant to:
(i) Sec. 1003.203(b); or
(ii) Sec. Sec. 1003.201(a)-(d), 1003.201(k), 1003.203(a), or Sec.
1003.204 when the grantee, subrecipient, or, in the case of an activity
carried out pursuant to Sec. 1003.204, a Community Based Development
Organization (CBDO) enters into an agreement with a business to
undertake one or more of these activities as a condition of the
business relocating a facility, plant, or operation to the grantee's
Identified Service Area. Provision of public facilities and indirect
assistance that will provide benefit to multiple businesses does not
fall under the definition of ``directly assist,'' unless it includes
the provision of infrastructure to aid a specific business that is the
subject of an agreement with the specific assisted business.
(2) Area. The relevant definition of ``area'' for a Native American
economic development project is the ``Identified Service Area'' for the
eligible applicant, as defined in Sec. 1003.4.
(3) Operation. A business operation includes, but is not limited
to, any equipment, employment opportunity, production capacity, or
product line of the business.
(4) Significant loss of jobs. (i) A loss of jobs is significant if
the number of jobs to be lost in the Identified Service Area in which
the affected business is currently located is equal to or greater than
one-tenth of one percent of the total number of persons in the labor
force of that area; or, in all cases, a loss of 500 or more jobs.
Notwithstanding the aforementioned, a loss of 25 jobs or fewer does not
constitute a significant loss of jobs.
(ii) A job is considered to be lost due to the provision of ICDBG
assistance if the job is relocated within 3 years of the provision of
assistance to the business; or the time period within which jobs are to
be created, as specified by the agreement between the business and the
recipient, is longer than 3 years.
(c) Written agreement. Before directly assisting a business with
ICDBG funds, the recipient, subrecipient, or a CBDO (in the case of an
activity carried out pursuant to Sec. 1003.204) shall sign a written
agreement with the assisted business. The written agreement shall
include:
(1) Statement. A statement from the assisted business as to whether
the assisted activity will result in the relocation of any industrial
or commercial plant, facility, or operation from one Identified Service
Area to another, and, if so, the number of jobs that will be relocated
from each Identified Service Area; and
(2) Required certification. If the assistance will not result in a
relocation covered by this section, a certification from the assisted
business that neither it, nor any of its subsidiaries, has plans to
relocate jobs, at the time the agreement is signed, that would result
in a significant job loss as defined in this rule.
(d) Assistance not covered by this section. This section does not
apply to:
(1) Relocation assistance. Relocation assistance under Sec.
1003.602(b), (c), or (d);
(2) Microenterprises. Assistance to microenterprises as defined by
section 102(a)(22) of the Housing and Community Development Act of
1974; and
(3) Arms-length transactions. Assistance to a business that
purchases business equipment, inventory, or other physical assets in an
arms-length transaction, including the assets of an existing business,
provided that the purchase does not result in the relocation of the
sellers' business operation (including customer base or list, goodwill,
product lines, or trade names) from one Identified Service Area to
another Identified Service Area and does not produce a significant loss
of jobs in the Identified Service Area from which the relocation
occurs.
0
3. Revise Sec. 1003.505 to read as follows:
Sec. 1003.505 Records to be maintained.
Each grantee shall establish and maintain sufficient records to
enable the Secretary to determine whether the grantee has met the
requirements of this part. This includes establishing and maintaining
records demonstrating that the recipient has made the determinations
required as a condition of eligibility of certain activities, including
as prescribed in Sec. 1003.209.
Dated: January 5, 2009.
Paula O. Blunt,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. E9-378 Filed 1-12-09; 8:45 am]
BILLING CODE 4210-67-P
