30 May 2012
Arab Americans Seek Disadvantaged Minority Help
[Federal Register Volume 77, Number 104 (Wednesday, May 30, 2012)]
[Proposed Rules]
[Pages 31765-31767]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-12968]
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DEPARTMENT OF COMMERCE
Minority Business Development Agency
15 CFR Part 1400
[Docket No. 120517080-2080-01]
Petition for Inclusion of the Arab-American Community in the
Groups Eligible for MBDA Services
AGENCY: Minority Business Development Agency, Commerce.
ACTION: Notice of proposed rulemaking and request for comments.
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SUMMARY: The Minority Business Development Agency (MBDA) publishes this
notice regarding the petition received on January 11, 2012 from the
American-Arab Anti-Discrimination Committee (ADC) requesting formal
designation of Arab-Americans as a minority group that is socially or
economically disadvantaged pursuant to 15 CFR art 1400. The formal
designation of the Arab-American community as a group that is socially
or economically disadvantaged would allow the members of this community
to receive assistance from MBDA funded programs, such as the MBDA
Business Center program. The ADC filed a petition, pursuant to 15 CFR
part 1400.3, including information specifically related to social and
economic discrimination against Arab-Americans. This Notice provides
public notice that the United States Department of Commerce
(Department) will consider the petition and requests public comment on
the propriety of this designation. MBDA will make a decision on the
application no later than June 27, 2012.
DATES: Comments must be received by MBDA no later than June 29, 2012.
ADDRESSES: You may submit comments, identified with Docket No.
120517080-2080-01, using any of the following methods:
Mail, Hand/Delivery/Courier: Ms. Josephine Arnold, Chief
Counsel,
[[Page 31766]]
Minority Business Development Agency, Department of Commerce, 1401
Constitution Avenue NW., Room 5093, Washington, DC 20230.
Electronic mail: Submit comments in Microsoft Word or .pdf
format to AAComments@mbda.gov.
All comments will be posted on the MBDA Web site at http://www.mbda.gov.
If you wish to submit confidential business information,
please submit the comments to the attention of Josephine Arnold and
highlight the information that you consider to be CBI and explain why
you believe this information should be held confidential. MBDA will
make a final determination as to whether the comments will be published
or not.
FOR FURTHER INFORMATION CONTACT: Robert Cobbs, Minority Business
Development Agency, 1401 Constitution Avenue NW., Room 5053,
Washington, DC 20230. Mr. Cobbs may be reached by telephone at (202)
482-2332 and by email at rcobbs@mbda.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The MBDA, pursuant to Executive Order 11625, funds business centers
that provide business development services to business concerns owned
and controlled by individuals who are members of groups determined by
the Department to be socially or economically disadvantaged. Based on
the current definitions, the groups considered ``socially and
economically disadvantaged,'' listed in Executive Order 11625, are
``Black, Puerto-Ricans, Spanish-speaking Americans, American Indians,
Eskimos, and Aleuts.'' \1\ In addition, Hasidic Jews, Asian Pacific
Americans and Asian Indians have been included in the list of the
groups who are socially or economically disadvantaged and thus eligible
for assistance from the MBDA in 15 CFR part 1400.1(c).
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\1\ Exec. Order No. 11625, 3 CFR part 616 (1971-1975).
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The Department is considering the petition of the ADC requesting
the addition of Arab-Americans to the list of persons considered
``socially and economically disadvantaged'' pursuant to E.O. 11625 and
15 CFR part 1400. An Arab-American may be defined as an American who
traces his or her ethnic roots to one of the countries in the Arab
World, including Algeria, Bahrain, Djoubti, Egypt, Iraq, Jordan,
Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Somalia,
Saudi Arabia, Sudan, Syria, Tunisia, United Arab Emirates, and Yemen.
According to the petition, Palestinians also fall under this category.
The ADC petition describes the social and economic conditions that
Arab-Americans have faced allegedly amounting to discrimination and
prejudice in American society and resulting in conditions under which
Arab-American individuals have been unable to compete in a business
world.\2\ The petition provides details of the social and economic
discrimination faced by Arab-Americans. A summary of those details from
the ADC petition are presented below in Section II.
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\2\ American-Arab Anti-Discrimination Committee (ADC) Petition
(filed, January 11, 2012) (ADC Petition or Pet.).
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II. Social and Economic Discrimination Against Arab-Americans
A. Social Discrimination
According to the Petition, Arab-Americans are subject to many
prejudices as a result of their distinct cultural and ethnic
characteristics. While many of those who consider themselves Arabs are
Muslim, the Arab-American Institute states that most Arab-Americans are
Christian.\3\ Most Arab-Americans speak Arabic, a language that has
become one of the defining characteristics of the group.\4\ Further,
Arab-Americans are known for their different food dishes (tabouli,
kibbah, and kabshah) and their unique music tradition that includes the
use of percussion instruments not normally found in American
culture.\5\ These are just a number of ways in which Arab-American
culture differs from American culture and the distinctions that have
resulted in the prejudices aimed towards the group.
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\3\ Pet. at 4.
\4\ Pet. at 4.
\5\ Pet. at 5.
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The petition states that Arab-Americans have faced discrimination
since the late 1800s, similar to most other minority groups.\6\ They
were treated the same way as many other minority groups in the United
States and had specific derogatory names directed towards them.\7\
While this discrimination initially did not hinder their ability to
obtain American citizenship, the situation changed in 1910 when the
U.S. Census Bureau classified Syrian and Palestinian Arabs as
``Asiatics.'' \8\ The Bureau of Immigration and Naturalization, which
initially considered Syrians and Palestinians as ``Caucasians,''
subsequently issued a nationwide directive ordering the rejection of
citizenship petitions for persons who were not ``free white persons''
or of ``African nativity.'' \9\ Some courts declared that Syrians could
be considered ``white'' while other courts ruled that they were not
``free white persons.'' \10\ For example, after World War I, the
government passed the Quota Act that limited the annual quota of
nationality to 3 percent of the foreign-born persons from that
country.\11\ According to the ADC petition, even though the policy was
facially race neutral, the implications for Arab-Americans, was
dire.\12\ The ADC petition notes that Arab immigrants were denied
citizenship, except 100 persons annually, under the Quota Act which is
widely viewed as an attempt to limit immigration from Arab
countries.\13\ While the policy was negated by the Immigration Bill in
1965, the ADC petition asserts that Arab-Americans continue to face
discrimination in public and private employment, housing, government
contracts and government benefits.\14\
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\6\ Pet. at 8.
\7\ Pet. at 9.
\8\ Pet. at 10.
\9\ Pet. at 10.
\10\ Pet. at 10-11.
\11\ Pet. at 13.
\12\ Pet. at 13.
\13\ Pet. at 13.
\14\ Pet. at 14-15.
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The ADC petition mentions a number of court cases that highlight
discrimination against Arab Americans on the sole basis of their ethnic
background, including a case where three elevator employees were
awarded $30,000 in damages as a result of the years of harassment they
endured.\15\ This level of discrimination increased drastically after
the September 11 attacks.\16\ According to the petition, while the
attacks were carried out by a small group of extremists, the entire
Arab-American community suffered from the prejudices other American
citizens formed.\17\
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\15\ Zaytoun v. Embassy Row Hotel, Inc., No. 6744-83 (D.C.
Super. Ct. June 21, 1985).
\16\ Pet. at 17.
\17\ Pet. at 17.
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The Petition notes that following September 11, 2001, the FBI and
other institutions reported a substantial increase in reports of
discrimination and harassment against Arab-Americans (the FBI reported
a 1600 percent increase).\18\ According to the ADC petition, these
reports were exacerbated by government-implemented policies that
inherently targeted Arab-Americans. The ADC petition asserts that, in
the government's efforts to protect Americans, they essentially took
away the rights of other Americans and provides the following as
examples of
[[Page 31767]]
such government-sponsored programs: The National Security Entry Exit
Registration System NSEERS, which required non-immigrants to register
at ports of entry and targeted males from Arab nations; stricter travel
guidelines; and ``no-fly'' lists which predominantly contained the
names of Arab-Americans. According to the Petition, these restrictions
hindered the Arab-American community's freedom and as a result, their
ability to contribute to a healthy American economy.\19\
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\18\ Pet. at 18.
\19\ Pet. at 18-21.
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B. Economic Discrimination
According to the ADC Petition, Arab-Americans also face economic
discrimination as employees and business owners. Citing instances where
employees are continuously harassed because of their ethnicity and are
subject to constant name-calling and racial profiling, the petition
asserts that Arab-Americans either have to constantly deal with
discrimination enforced by their employers, their fellow employees or
customers that frequent their places of employment.\20\ The petition
also notes that Arab-Americans have fewer job opportunities, a
situation that has been exacerbated by the September 11 attacks and
asserts that this fact is supported by a number of studies that
highlight employment discrimination against Arab Americans as well as
the high number of complaints the ADC receives yearly despite the time
that has passed since 9/11.\21\
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\20\ Pet. at 21.
\21\ Pet. at 21-25.
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According to the ADC Petition, the discrimination that Arab-
American employees face has decreased their earnings.\22\ One study
showed that the earning potential of Arab American men dropped
considerably between 2000 and 2002 as compared to U.S.-born non-
Hispanic white men.\23\ Their ability to positively contribute to the
economy has also been significantly altered as a result of the
increased instances of government-sponsored inspections of workplaces
that may have hired individuals with suspected terrorist ties.\24\
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\22\ Id. at 23, citing American-Arab Anti-Discrimination
Committee (ADC), 2010 Legal Department: Legal and Policy Review, p.
1.
\23\ Pet. at 26, citing Alberto Davila and Marie Mora, Changes
in Earnings of Arab Men in the U.S., Journal of Population
Economics, 2005, vol. 18, issue 4, p. 588.
\24\ Pet. at 25-27.
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Arab-American business owners and entrepreneurs also face economic
discrimination. Individuals from the Arab-American community are unable
to earn up to their potential as compared to their non-Hispanic white
counterparts in similar industries. The Petition notes that while many
Arab-Americans are educated and would contribute tremendously to the
U.S. economy if they were able to enter into the market, they are held
back because of their ethnic background. Also, many times Arab-
Americans are confined solely to the small Arab-American communities in
which they live because they face harassment if they attempt to expand
their business. The Petition further asserts that Arab Americans
receive few prime government contracts, as exemplified by a case study
conducted in San Francisco between 1992 and 1995.\25\ During that time
period, Arab-Americans received no construction contracts despite
representing a significant amount of the available professional service
firms. This can be compared to Latino-Americans, a group already
included in the definition of ``minority business enterprise,'' who
only received 1 percent of professional service dollars despite
representing 6 percent of the professional service firms.\26\
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\25\ Pet. at 29.
\26\ Pet. at 29-31.
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III. Objectives and Scope
By categorizing Arab-Americans as ``socially and economically
disadvantaged business concerns'' under 15 CFR part 1400, the same the
benefits granted to other socially and economically disadvantaged
persons specified under Part 1400 will be available to Arab-American
persons and businesses. Specifically, under 15 CFR part 1400, Arab-
Americans will be eligible to qualify for MBDA programs and
opportunities that help minority businesses overcome discrimination and
prejudice as business owners.\27\
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\27\ Pursuant to 15 CFR 1400.1, the designation for eligibility
under Executive Order 11625 will not establish eligibility for any
other Federal or Federally-funded program.
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The comments received will be reviewed for applicability to the
issues to be addressed. MBDA will consider only those comments that
address the relevance of including Arab-Americans in the definition of
those who are ``socially and economically disadvantaged.'' Commenters
should address the following issues in the context of the requirements
of the applicable regulations.\28\ If any comments received meet the
criterion, they will be included in the final decision.
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\28\ See 15 CFR 1400.4.
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MBDA solicits general comments and comments on the Petition that
address the following specific issues:
A. Societal Discrimination
1. Are there specific instances of social discrimination against
Arab-Americans that occur over a sustained period of time, which
results in significant social or economic disadvantage?
2. Are there any additional characteristics specific to the Arab-
American community, other than those described in the ADC Petition,
that invoke societal discrimination?
3. Is there evidence that demonstrates Arab-Americans have been
subject to employment or educational discrimination? If so, please
describe.
4. Is there evidence that demonstrates that Arab-Americans have
been denied access to organizations, groups, professional societies or
other types of business opportunities in comparison to individuals who
are not considered socially or economically disadvantaged?
B. Economic Discrimination
1. What evidence exists that demonstrates Arab-Americans have faced
economic discrimination over a sustained period of time resulting in
social or economic disadvantage?
2. Please provide any specific information which demonstrates that
Arab-Americans have experienced difficulty in obtaining access to
capital, technical, or managerial resources as compared to individuals
who are not considered socially or economically disadvantaged.
3. Is there any additional evidence of denied opportunities for
Arab-Americans to access to those things which would enable them to
participate more successfully in the American economic system that is
readily available to individuals not considered to be socially or
economically disadvantaged?
Josephine Arnold,
Chief Counsel, Minority Business Development Agency.
[FR Doc. 2012-12968 Filed 5-29-12; 8:45 am]
BILLING CODE 3510-21-P
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