Vol. 78 Wednesday, No. 210 October 30, 2013

Pages 64873–65144

OFFICE OF THE FEDERAL REGISTER

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Contents Federal Register Vol. 78, No. 210

Wednesday, October 30, 2013

Agriculture Department Education Department See Forest Service NOTICES See National Agricultural Statistics Service Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Agency Information Collection Activities; Proposals, Annual Performance Reports for Title III and Title V Submissions, and Approvals, 64907–64909 Grantees, 64929 Beginning Postsecondary Students Longitudinal Study, Census Bureau 64927 NOTICES High School Equivalency Program Annual Performance 2013 Company Organization Survey, 64911–64912 Report, 64927–64928 Annual Retail Trade Survey, 64912 Rehabilitation Services Administration Grant Re- allotment Form, 64928–64929 Centers for Disease Control and Prevention Survey of Principals of Rural Schools Receiving School NOTICES Improvement Grants and Using the Transformation, Agency Information Collection Activities; Proposals, 64926–64927 Submissions, and Approvals, 64942–64943 Targeted Teacher Shortage Areas Nationwide Listing, 64929 Centers for Medicare & Medicaid Services Meetings: NOTICES National Advisory Committee on Institutional Quality Medicare Program: and Integrity, 64929–64930 Inpatient Hospital Deductible and Hospital and Extended Open Forum on College Value and Affordability and Care Services Coinsurance Amounts for CY 2014, College Ratings System, 64930–64931 64953–64956 Medicare Part B Monthly Actuarial Rates, Premium Rate, Employment Standards Administration and Annual Deductible Beginning January 1, 2014, See Wage and Hour Division 64943–64951 Part A Premiums for CY 2014 for the Uninsured Aged and for Certain Disabled Individuals Who Have Energy Department Exhausted Other Entitlement, 64951–64953 See Federal Energy Regulatory Commission NOTICES Coast Guard Meetings: RULES Advanced Scientific Computing Advisory Committee, Drawbridge Operations: 64931–64932 Atlantic Intracoastal Waterway, Albemarle and Biomass Research and Development Technical Advisory Chesapeake Canal, Chesapeake, VA, 64886–64887 Committee, 64932–64933 Upper Mississippi River, Hannibal, MO, 64887–64888 Environmental Management Site-Specific Advisory PROPOSED RULES Board, Nevada, 64932 Carriage of Conditionally Permitted Shale Gas Extraction Waste Water in Bulk, 64905–64906 Environmental Protection Agency Commerce Department PROPOSED RULES See Census Bureau Air Quality State Implementation Plans; Approvals and See Foreign-Trade Zones Board Promulgations: See International Trade Administration North Carolina; Non-interference Demonstration for See National Oceanic and Atmospheric Administration Removal of Federal Low-Reid Vapor Pressure See Patent and Trademark Office Requirement for the Raleigh–Durham–Chapel Hill Area, 64896–64905 Commission of Fine Arts NOTICES Meetings: NOTICES Dichloromethane and N–Methylpyrrolidone TSCA Meetings: Chemical Risk Assessment, 64936–64937 Commission of Fine Arts, 64926 Pesticide Products: Registration Applications for New Active Ingredients, Comptroller of the Currency 64937–64938 PROPOSED RULES Pesticide Registrations: Loans in Areas Having Special Flood Hazards, 65108– Product Cancellation Orders, 64938–64940 65144

Copyright Royalty Board Farm Credit Administration NOTICES PROPOSED RULES Distribution of the 2000, 2001, 2002 and 2003 Cable Loans in Areas Having Special Flood Hazards, 65108– Royalty Funds, 64984–65006 65144

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Federal Aviation Administration Gastrointestinal Drugs Advisory Committee and Drug PROPOSED RULES Safety and Risk Management Advisory Committee, Airworthiness Directives: 64957 B–N Group Ltd. Airplanes, 64894–64896 Foreign-Trade Zones Board Federal Deposit Insurance Corporation NOTICES PROPOSED RULES Expansions of Subzones: Loans in Areas Having Special Flood Hazards, 65108– Subzone 99E, Delaware City Refining Co. LLC, New 65144 Castle County, Delaware, 64912–64913 Federal Energy Regulatory Commission Forest Service NOTICES NOTICES Applications: Environmental Impact Statements; Availability, etc.: Pepperell Hydro Co., LLC, 64933–64934 Invasive Plant Control Project, Carson and Santa Fe Texas Eastern Transmission, LP, 64933 National Forests, New Mexico; Correction, 64909– Initial Market-Based Rate Filings Including Requests for 64910 Blanket Section 204 Authorization: Meetings: BTG Pactual Commodities (US) LLC, 64934–64935 Virginia Resource Advisory Committee, 64910 Petitions for Declaratory Orders: Enbridge Pipelines (FSP) LLC, 64935 Preliminary Determinations of Qualifying Conduit General Services Administration Hydropower Facilities: NOTICES Borough of Ellwood City, PA, 64935–64936 Meetings: Government-wide Travel Advisory Committee, 64941– Federal Maritime Commission 64942 NOTICES Presidential Commission on Election Administration, Agreements Filed, 64940–64941 64942 Ocean Transportation Intermediary License Reissuances, 64941 Geological Survey Ocean Transportation Intermediary License Revocations NOTICES and Terminations, 64941 Meetings: National Earthquake Prediction Evaluation Council, Federal Motor Carrier Safety Administration 64973 NOTICES Scientific Earthquake Studies Advisory Committee, 64973 Qualification of Drivers; Exemption Applications: Diabetes Mellitus, 65031–65032, 65034–65038 Health and Human Services Department Vision, 65032–65034 See Centers for Disease Control and Prevention See Centers for Medicare & Medicaid Services Federal Reserve System See Food and Drug Administration PROPOSED RULES See National Institutes of Health Loans in Areas Having Special Flood Hazards, 65108– RULES 65144 Patient Protection and Affordable Care Act; Program NOTICES Integrity: Formations of, Acquisitions by, and Mergers of Bank Exchange, Premium Stabilization Programs, and Market Holding Companies, 64941 Standards; Amendments to HHS Notice of Benefit and Payment Parameters for 2014, 65046–65105 Federal Trade Commission RULES Homeland Security Department Redelegation of Authority to Determine Appeals under the See Coast Guard Freedom of Information Act, 64885–64886 See U.S. Customs and Border Protection Fine Arts Commission See Commission of Fine Arts Interior Department See Fish and Wildlife Service Fish and Wildlife Service See Geological Survey NOTICES See Land Management Bureau Environmental Assessments; Availability, etc.: See Reclamation Bureau Tualatin River National Wildlife Refuge, Washington and Yamhill Counties, OR, 64969–64970 International Trade Administration New Deadlines for Public Comment on Draft Environmental NOTICES Documents, 64970–64971 Antidumping and Countervailing Duty Administrative Permits: Reviews; Results, Extensions, Amendments, etc.: Endangered and Threatened Species, 64971–64972 Circular Welded Carbon Steel Pipes and Tubes from Turkey, 64916–64918 Food and Drug Administration Antidumping and Countervailing Duty Orders; Results, NOTICES Extensions, Amendments, etc.: Meetings: Certain New Pneumatic Off-the-Road Tires from the Endocrinologic and Metabolic Drugs Advisory People’s Republic of China; Changed Circumstances Committee, 64956–64957 Review, 64913–64914

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Antidumping Duty Administrative Reviews; Results, National Highway Traffic Safety Administration Extensions, Amendments, etc.: NOTICES Citric Acid and Certain Citrate Salts from Canada, 64914– Agency Information Collection Activities; Proposals, 64915 Submissions, and Approvals, 65038–65040 Applications for Duty-Free Entry of Scientific Instruments, 64916 National Institutes of Health NOTICES International Trade Commission Meetings: NOTICES Center for Scientific Review, 64958–64968 Determinations: Center for Scientific Review; Amended, 64959 Computer and Computer Peripheral Devices, and National Cancer Institute, 64958–64959 Components Thereof, and Products Containing Same, National Center for Complementary and Alternative 64977–64979 Medicine, 64963 National Institute of Allergy and Infectious Diseases, Justice Department 64962, 64964 NOTICES National Institute of Biomedical Imaging and Agency Information Collection Activities; Proposals, Bioengineering, 64966 Submissions, and Approvals: National Institute on Aging, 64963 Community Oriented Policing Services Progress Report, National Institute on Drug Abuse, 64958, 64960, 64962, 64979 64965–64966 Office of the Director, 64964 Labor Department See Occupational Safety and Health Administration National Oceanic and Atmospheric Administration See Wage and Hour Division RULES NOTICES Coastal Migratory Pelagic Resources of the Gulf of Mexico Agency Information Collection Activities; Proposals, and South Atlantic: Submissions, and Approvals: Reopening of the Commercial Harvest of Gulf King Attestations by Employers Using Alien Crewmembers for Mackerel in Western Zone, 64888–64889 Longshore Activities in U.S. Ports, 64981–64982 Fisheries of the Exclusive Economic Zone Off Alaska: Disclosures for Participant Directed Individual Account Atka Mackerel in the Bering Sea and Aleutian Islands Plans, 64980–64981 Management Area, 64891 Notice of Law Enforcement Officer’s Injury or Atka Mackerel in the Bering Sea and Aleutian Islands Occupational Disease and Notice of Law Enforcement Management Area; Closure, 64892–64893 Officer’s Death, 64979–64980 Pacific Ocean Perch in the Bering Sea and Aleutian Land Management Bureau Islands Management Area; Closure, 64891–64892 Fisheries of the Northeastern United States: NOTICES Nominations: Northeast Multispecies Fishery; Emergency Rule Carrizo Plain National Monument Advisory Committee, Extension, Georges Bank Yellowtail Flounder and CA, 64973–64974 White Hake Catch Limits and GOM Cod Carryover Plats of Surveys: Revisions, 64889–64890 NOTICES New Mexico, 64974 Meetings: Realty Actions: Interagency Ocean Observation Committee, Data Modified Competitive Sealed-Bid Sale of Public Land at Management and Communications Steering Team, Schoolhouse Butte (N–85116), Humboldt County, 64918 NV; Correction, 64974 Takes of Marine Mammals Incidental to Specified Library of Congress Activities: Rocky Intertidal Monitoring Surveys along the Oregon See Copyright Royalty Board and California Coasts, 64918–64925 National Aeronautics and Space Administration NOTICES Nuclear Regulatory Commission Meetings: NOTICES National Space-Based Positioning, Navigation, and Inspections, Tests, Analyses, and Acceptance Criteria: Timing Advisory Board, 65006 Vogtle Electric Generating Plant, Unit 3, 65007 Meetings: National Agricultural Statistics Service ACRS Subcommittee on Fukushima, 65008 NOTICES ACRS Subcommittee on Planning and Procedures, Agency Information Collection Activities; Proposals, 65007–65008 Submissions, and Approvals, 64910–64911 ACRS Subcommittee on U.S. Evolutionary Power Reactor, 65008–65009 National Credit Union Administration Advisory Committee on Reactor Safeguards, 65009–65010 RULES Filing Financial and Other Reports, 64883–64885 Occupational Safety and Health Administration Liquidity and Contingency Funding Plans, 64879–64883 NOTICES PROPOSED RULES Agency Information Collection Activities; Proposals, Loans in Areas Having Special Flood Hazards, 65108– Submissions, and Approvals: 65144 Aerial Lifts Standard, 64982–64983

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Patent and Trademark Office Joint Relocation Project Exemptions: NOTICES BNSF Railway Co., CBEC Railway Inc.; Iowa Interstate Proposed Elimination of Patents Search Templates, 64925– Railroad, Ltd.; and Union Pacific Railroad Co., 64926 Council Bluffs, IA, 65040–65041

Personnel Management Office Transportation Department RULES See Federal Aviation Administration Federal Employees Health Benefits and Dental and Vision See Federal Motor Carrier Safety Administration Insurance Programs: See National Highway Traffic Safety Administration Expanding Coverage of Children; Federal Flexible See Surface Transportation Board Benefits Plan; Pre-Tax Payment of Health Benefits NOTICES Premiums, 64873–64879 Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals: Agency Information Collection Activities; Proposals, Approval of Underwriters of Marine Hull Insurance, Submissions, and Approvals: 65030–65031 Application for 10-Point Veteran Preference, 65010 Meetings: Treasury Department Hispanic Council on Federal Employment; Cancelling See Comptroller of the Currency and Re-scheduling, 65010–65011 NOTICES Privacy Act; Systems of Records, 65011–65014 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 65041–65044 Postal Regulatory Commission NOTICES U.S. Customs and Border Protection New Postal Products, 65014–65017 NOTICES Meetings: Reclamation Bureau Advisory Committee on Commercial Operations of NOTICES Customs and Border Protection, 64968–64969 Environmental Impact Statements; Availability, etc.: Elum Reservoir Pool Raise, Yakima River Basin Water Wage and Hour Division Enhancement Project, Integrated Water Resource NOTICES Management Plan, Kittitas County, WA, 64976–64977 Agency Information Collection Activities; Proposals, Keechelus Reservoir-to-Kachess Reservoir Conveyance Submissions, and Approvals, 64984 and Kachess Inactive Storage, Yakima River Basin Water Enhancement Project, Integrated Water Resource Management Plan, Kittitas County, WA, Separate Parts In This Issue 64975–64976 Part II Securities and Exchange Commission Health and Human Services Department, 65046–65105 NOTICES Applications: Part III VTL Associates, LLC, et al., 65017–65023 Farm Credit Administration, 65108–65144 Self-Regulatory Organizations; Proposed Rule Changes: Federal Deposit Insurance Corporation, 65108–65144 Chicago Board Options Exchange, Inc., 65023–65026 Federal Reserve System, 65108–65144 Options Clearing Corp., 65027–65030 National Credit Union Administration, 65108–65144 Treasury Department, Comptroller of the Currency, 65108– State Department 65144 NOTICES Appointments: Performance Review Board, 65030 Reader Aids Statistical Reporting Service Consult the Reader Aids section at the end of this page for See National Agricultural Statistics Service phone numbers, online resources, finding aids, reminders, and notice of recently enacted public laws. Surface Transportation Board To subscribe to the Federal Register Table of Contents NOTICES LISTSERV electronic mailing list, go to http:// Abandonment Exemptions: listserv.access.gpo.gov and select Online mailing list Chicago Central and Pacific Railroad Co., Linn County, archives, FEDREGTOC-L, Join or leave the list (or change IA, 65040 settings); then follow the instructions.

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CFR PARTS AFFECTED IN THIS ISSUE

A cumulative list of the parts affected this month can be found in the Reader Aids section at the end of this issue.

5 CFR 890...... 64873 892...... 64873 894...... 64873 12 CFR 741 (2 documents) ...... 64879, 64883 748...... 64883 Proposed Rules: 22...... 65108 172...... 65108 208...... 65108 339...... 65108 391...... 65108 614...... 65108 760...... 65108 14 CFR Proposed Rules: 39...... 64894 16 CFR 4...... 64885 33 CFR 117 (2 documents) ...... 64886, 64887 40 CFR Proposed Rules: 52...... 64896 45 CFR 144...... 65046 146...... 65046 147...... 65046 153...... 65046 155...... 65046 156...... 65046 46 CFR Proposed Rules: 153...... 64905 50 CFR 622...... 64888 648...... 64889 679 (4 documents) ...... 64891, 64892

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Rules and Regulations Federal Register Vol. 78, No. 210

Wednesday, October 30, 2013

This section of the FEDERAL REGISTER domestic partners is limited to those connection with the extension of FEHB contains regulatory documents having general states in which same-sex couples are coverage to children of same-sex applicability and legal effect, most of which unable to marry. We have also made domestic partners of Federal employees. are keyed to and codified in the Code of several other minor changes. First, we Analysis of and Responses to Public Federal Regulations, which is published under have added language reflecting that 50 titles pursuant to 44 U.S.C. 1510. Comments children under the age of 26, or children The Code of Federal Regulations is sold by of any age who are incapable of self- We received 17 comments on the the Superintendent of Documents. Prices of support because of a mental or physical proposed rule, with a majority relating new books are listed in the first FEDERAL disability which existed before age 26, to the extension of coverage to children REGISTER issue of each week. are considered family members under of same-sex domestic partners under the the FEHB Program. Second, the final FEHB Program and FEDVIP. A majority rule changes the period of time within of commenters (about 3 to 1) supported OFFICE OF PERSONNEL which notification of the termination of extending coverage to children of same- MANAGEMENT a domestic partnership must be sex domestic partners. Other comments provided to the employing office from 7 and OPM’s responses are detailed 5 CFR Parts 890, 892, 894 to 30 days, and permits either the below. One comment related to the RIN 3206–AM55 enrollee or the domestic partner to requirement that money deposited in a provide the notification. These changes flexible spending account be forfeited if Federal Employees Health Benefits will align the rules on such notifications eligible expenses are not incurred Program and Federal Employees with those for other programs OPM within the timeframe specified by the Dental and Vision Insurance Program: administers, such as the Federal Long Internal Revenue Service (IRS). That Expanding Coverage of Children; Term Care Insurance Program. Third, issue is outside of the scope of this Federal Flexible Benefits Plan: Pre-Tax the language in section 890.302(b)(6) proposed rule and is therefore not Payment of Health Benefits Premiums: has been modified slightly to make it addressed below. Conforming Amendments consistent with the language in sections Comment: Multiple commenters 892.102 and 894.403. Fourth, the recommended that OPM adopt the AGENCY: U.S. Office of Personnel Management. language in section 890.804(b)(i) has policy found in the FEHB Handbook been changed slightly to reflect the that allows stepchildren to remain on ACTION: Final rule. terminology used in the statute. Fifth, their Federal employee or annuitant SUMMARY: The United States Office of the definition of ‘‘stepchild’’ was parents’ insurance even after a domestic Personnel Management (OPM) is issuing modified to clarify that the term partnership between the Federal a final rule to amend the Federal includes children of former spouses or employee or annuitant and his or her Employees Health Benefits Program eligible same-sex domestic partners same-sex domestic partner has ended. (FEHB) regulations regarding coverage where the child continues to live with The commenters noted that currently, for children up to age 26. The the enrollee in a regular parent-child the policy governing the FEHB Program regulations also allow children of same- relationship. allows stepchildren to continue to be sex domestic partners living in states As explained in the proposed rule, covered by the enrollee’s Self and that do not allow same-sex couples to this regulation: (1) Brings FEHB rules Family enrollment after the enrollee marry to be covered family members into compliance with changes to health divorces the child’s natural parent if the under the FEHB and the Federal insurance coverage for children under child is living with the enrollee in a Employees Dental and Vision Insurance the Patient Protection and Affordable parent-child relationship. The Program (FEDVIP). Care Act, Public Law 111–148, as commenters asserted that extending this amended by the Health Care and policy to children of same-sex domestic DATES: This final rule is effective Education Reconciliation Act, Public partners would protect a child if a beginning January 1, 2014. Law 111–152 (the Affordable Care Act); relationship between the enrollee and FOR FURTHER INFORMATION CONTACT: (2) extends FEHB and FEDVIP benefits the child continues beyond the Rachel Royster, Program Analyst, to children of same-sex domestic enrollee’s relationship with his or her [email protected] or (202) 606– partners of Federal employees who live same-sex domestic partner. The 4181. in states that do not allow same-sex commenters also requested that OPM SUPPLEMENTARY INFORMATION: On July couples to marry, consistent with expand the current policy to provide 20, 2012, OPM published proposed Presidential Memoranda issued on June coverage for children after the domestic regulations in the Federal Register (77 17, 2009, and June 2, 2010; (3) makes partnership ends not only if the child FR 42914–42918) to expand coverage of other non-substantive, technical lives with the enrollee in a parent-child children under the FEHB Program and conforming amendments to the FEDVIP relationship, but also if the enrollee FEDVIP. Comments were requested to rules, which reference current FEHB provides ‘‘substantial ongoing support’’ be received on or before September 18, rules that are being amended by this for the child. 2012. After reviewing the comments rule; and (4) updates the Federal Response: OPM agrees with the received, OPM has decided to release Flexible Benefits Plan: Pre-Tax Payment commenters and has added language to this final regulation as proposed with of Health Benefits Premiums (Part 892) the definition of ‘‘stepchild’’ to clarify several changes. The most significant rules to reflect the above-referenced that the term shall continue to refer to change to this regulation is that changes required by the Affordable Care a child who continues to live with the eligibility for the children of same-sex Act and to implement changes in enrollee in a regular-parent child

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relationship after divorce from the relationship between the employee support a decision by OPM to move spouse, termination of the domestic (annuitant)/parent and the child. ahead with the uniform, national rule partnership, or the death of the spouse Although the comment that this originally contemplated in the proposed or domestic partner. OPM considers the regulation violates DOMA is no longer regulation, OPM has decided to limit fact that the child lives with the enrollee relevant in light of the Supreme Court’s this regulation to those same-sex in a regular parent-child relationship as June 26, 2013 decision striking down couples living in states where marriage integral in establishing the continued Section 3 of DOMA as unconstitutional, is not available to them. existence of the parent-child it is important to emphasize that this Only a minority of states currently relationship between the enrollee and regulation was not in violation of permits same-sex marriage, and the child. OPM intends for children of Section 3 of DOMA even while that therefore, many same-sex couples do same-sex domestic partners to be treated provision was in force. Section 3 of not have the same access to marriage the same as currently eligible DOMA limited the meaning of the terms that is available to opposite-sex couples. stepchildren. OPM does not intend to ‘‘marriage’’ and ‘‘spouse,’’ when used in Until marriage is available to same-sex expand its policy to cover children who Federal laws. Through this regulation, couples in all fifty states, the extension are not stepchildren, as defined here, OPM has expanded its definition of the of benefits to same-sex domestic whose only relationship to the enrollee term ‘‘stepchild’’ with respect to the partners will continue to play an is that of a child of a former spouse or provision of healthcare benefits for important role in bridging the gap in domestic partner. children. Consequently, Section 3 of legal treatment between same-sex and Comment: Two commenters suggested DOMA simply had no bearing on this opposite-sex couples. that OPM’s proposed definition of regulation, and these recommended For these reasons, this proposed stepchild to include the children of changes were always within the regulation to provide FEHB and FEDVIP same-sex domestic partners is beyond purview of OPM’s discretion. Finally, as benefits to the stepchildren of same-sex the scope of OPM’s authority and explained in the proposed rule and as domestic partners will not be violates Section 3 of the Defense of explained in greater detail below, the withdrawn in whole, but instead will be tailored to those couples who are unable Marriage Act (DOMA), 1 U.S.C. 7 (Pub. change is consistent with Executive to marry under the laws of the state in L. 104–199). Order 13563 and President Obama’s memoranda of June 17, 2009, and June which they reside. Response: OPM is granted the 2, 2010. Same-sex couples living in states that authority in 5 U.S.C. 8913 to prescribe Comment: One commenter suggested allow them to marry have access to regulations necessary to carry out the that OPM only recognize same-sex many, if not all, of the protections that FEHB Program. OPM’s authority with domestic partnerships in states that do married opposite-sex couples enjoy. respect to defining eligible children is not recognize same-sex marriage or Therefore, for employees living in states especially broad, as Congress, in the where a similar relationship, such as a where they are able to marry, there is FEHB Act, provided a non-exclusive list civil union, is not permitted. less need to create a separate path by of examples of the types of children Response: At the time this rule was which stepchildren of Federal who may be eligible for coverage. OPM issued in proposed form, Section 3 of employees can be deemed eligible for has historically, through its regulations DOMA, 1 U.S.C. 7, prohibited OPM coverage under FEHB and FEDVIP. For and other communications, established from recognizing same-sex marriages. those employees unable to marry under rules and provided guidance on specific Section 3 of DOMA provided that, when the laws of the states in which they live, parent-child relationships and eligibility used in a Federal law, the term however, it is appropriate to extend for FEHBP coverage. Here, exercising its ‘‘marriage’’ meant only a legal union FEHB and FEDVIP eligibility to long-held discretion in this area, OPM between one man and one woman as stepchildren, albeit in a potentially non- has determined that coverage may be husband and wife, and that the term tax preferred manner, in the form extended to children of the same-sex ‘‘spouse’’ referred only to a person of described in this regulation. domestic partners of certain Federal the opposite sex who is a husband or We recognize that the legal landscape employees and annuitants through a wife. Thus, the availability of same-sex is rapidly changing, and certain states regulation defining the term ‘‘stepchild’’ marriage in a particular state was not that currently do not allow same-sex as that term is used in the law governing relevant to our determination of couples to marry may soon allow them the FEHB Program. The definition of coverage eligibility for the children of to do so. Same-sex couples may also ‘‘stepchild’’ set forth in this regulation enrollees’ same-sex domestic partners. relocate from states where they cannot appropriately encompasses and reflects As explained above, on June 26, 2013, marry to states where they are permitted the variety of parent-child relationships the Supreme Court struck down Section to marry. The possibility that the that exist today. 3 of DOMA as unconstitutional. relevant state marriage laws may change It should be noted that, as an Subsequent to the Supreme Court’s mid-year has the potential to create alternative to adding a definition of the ruling, OPM issued administrative significant administrative difficulties. term ‘‘stepchild,’’ OPM also considered guidance explaining that legally married For this reason, eligibility for FEHB and including in the regulation a new same-sex spouses and any newly FEDVIP coverage will be determined category of child—the child of a same- eligible (step)children of Federal once annually, and will depend on sex domestic partner—that would have employees and annuitants would be whether an enrollee seeking to cover the expanded upon the examples of types of eligible to participate in the FEHB and child of his or her same-sex domestic children that Congress provided in the FEDVIP, irrespective of the employees’ partner lives in a state that authorizes statute (e.g., adopted child, recognized or annuitants’ state of residence. same-sex marriage as of the last day natural child, stepchild and foster Now that FEHB and FEDVIP coverage prior to Open Season for enrollment in child). While there are a number of is available to the children of an benefits for the following year. An approaches that would have been employee’s same-sex spouse, OPM has otherwise eligible stepchild whose reasonable, OPM chose the approach of reconsidered the need and scope of the parents lived in a state that did not adding a definition of the term proposed rule to extend benefits to the permit them to marry prior to the ‘‘stepchild’’ because this nomenclature children of same-sex domestic partners. commencement of Open Season will specifically recognizes the parent-child Although there are arguments that could remain eligible to receive those benefits

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for the entire calendar year, even if that domestic partners. Same-sex domestic enrollees concerning the tax state changes its marriage laws mid-year partners do currently have the option to consequences of covering children of to authorize same-sex marriage or if the marry in some states, and as discussed domestic partners. One commenter couple moves to a state that permits above, we have decided that where suggested that the process for an same-sex marriage. same-sex couples live in states that employee to establish favorable tax Nothing in this regulation changes the grant them equal marriage rights, they treatment for a child should not be more rules that otherwise apply when an will not be eligible for the domestic onerous than submitting an IRS W–4 enrollee experiences a qualifying life partner benefits made available through form. event, including marriage. See OPM this regulation. Finally, any enrollee Response: OPM cannot provide Benefits Administration Letter 13–203 seeking to cover a child of his or her individualized tax advice to enrollees, (clarifying that same-sex couples who same-sex domestic partner pursuant to as we do not administer the Tax Code. marry after June 26, 2013, have 60 days this regulation must certify that he or However, OPM plans to issue general after the marriage to change their FEHB she would marry his or her same-sex guidance on our Web site and to enrollment). OPM will issue guidance to domestic partner were that option employing agencies and payroll offices clarify, among other things, how available in his or her state of residence. informing enrollees of the enrollees should inform their employing Comment: One commenter argued documentation and information that the agency if a child they were covering that this regulation creates a legal enrollee will be required to submit to under a FEHB Self and Family anomaly and injustice by not providing the employing office in order to enrollment or a FEDVIP Self Plus One health coverage for other children in establish whether their child’s coverage or Self and Family enrollment pursuant non-marital households. The is eligible for favorable tax treatment, to this regulation, and for whom the commenter gives the example of Federal such as an annual certification. It will value of the benefit was not tax employees who have assumed be incumbent on the enrollee to consult preferred, becomes a stepchild who is responsibility for the care of a with appropriate professionals to the child of the enrollee’s spouse, thus grandchild or a niece where the child’s determine whether, taking into account eliminating the need to impute the natural parents are no longer living and the enrollee’s unique situation, FEHB value of the benefit to their income. able to care for these children as and/or FEDVIP coverage provided to his Finally, with respect to the suggestion ineligible for coverage under the FEHB or her stepchild meets applicable regarding civil unions, domestic Program. requirements for favorable tax partnership or other non-marital Response: OPM disagrees with the treatment. If the enrollee does not relationship, the fact that an employee contention of the commenter that the establish that the stepchild qualifies for may be in a state-created relationship children in the examples given are favorable tax treatment, then the fair with the child’s other parent other than ineligible for coverage under the FEHB market value of coverage provided to a marriage will not render the child Program and therefore are treated the child will be imputed to the enrollee eligible for coverage as a stepchild unfairly by this rule. OPM has broadly and subject to applicable taxes. OPM under the FEHB or FEDVIP. Therefore, defined the term ‘‘foster child’’ and guidance will also include the annual requiring employees to enter into one of allows Federal employees who have a fair market value calculations for each these other relationship statuses where relationship with a ‘‘foster child’’ to FEHB and FEDVIP plan to aid enrollees available is not appropriate. cover such a child under a Self and Comment: Several commenters Family enrollment. The definition is in understanding the financial requested that OPM extend coverage designed to ensure that children who implications of covering a stepchild for under the FEHB Program to same-sex have parent-child relationships with whom preferential tax treatment has not spouses and/or domestic partners. Federal employees and annuitants, been established. OPM believes that the Response: As a result of the Supreme including non-traditional relationships, specifics of the tax treatment of this Court’s decision striking down Section are eligible for coverage under the FEHB coverage will be best communicated 3 of DOMA as unconstitutional, same- Program. through annual guidance to employing sex spouses of Federal employees and Comment: One commenter requested agencies and enrollees as opposed to annuitants are now able to access that OPM make changes impacting regulatory language because IRS benefits that are provided to spouses, dependent eligibility so that FEHB guidance and policies may change from including FEHB benefits. 5 U.S.C. Program insurance carriers may year to year. OPM plans to create a 8901(5) defines ‘‘member of family’’ to consider the cost of any such expansion process that is minimally onerous for mean the employee’s ‘‘spouse’’ and during benefit and rate negotiations for enrollees, while ensuring that agencies certain children. Same-sex domestic the following year. receive required information that is partners are not encompassed within Response: We believe the addition of accurate. the statutory definition of member of these family members will only have a Comment: A commenter expressed family. OPM is therefore without negligible impact on costs for concern about the equity of imputing authority to extend coverage to domestic participating FEHB plans. income for these benefits to Federal partners. Comment: Multiple commenters employees in accordance with current Comment: One commenter argued recommended that OPM explicitly state IRS regulations and guidance. that extending coverage to children of that there are two interpretations under Response: OPM does not have the same-sex domestic partners is IRS regulations and guidance where authority to make changes to current inequitable because it does not include coverage for a child of a same-sex IRS regulations and guidance coverage for children of opposite-sex domestic partner may be treated concerning the tax treatment of health domestic partners. favorably for tax purposes: (1) If the insurance benefits; therefore this Response: Children of opposite-sex employee is considered the child’s comment is outside the scope of these domestic partners were not included stepparent under state law and (2) if the proposed regulations. FEHB and because opposite-sex partners may child is an employee’s qualifying FEDVIP enrollees will be subject to the obtain coverage for their children relative. In addition, several same State and Federal taxation rules as through marriage, an option that is not commenters requested that OPM other employees receiving employer- yet universally available to same-sex provide clear and detailed guidance to sponsored benefits in the United States.

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In the proposed rule, OPM also safety effects, distributive impacts, and person’s self and family enrollment in requested comments on how, in the case equity). A regulatory impact analysis the FEHB Program. of the provision of FEHB coverage to the must be prepared for major rules with (2) Dual enrollment. (i) A dual child of a same-sex domestic partner economically significant effects of $100 enrollment exists when an individual is who does not qualify for favorable tax million or more in any one year. I certify covered under more than one FEHB treatment under the Internal Revenue that this regulation will not have a Program enrollment. Dual enrollments Code, the fair market value (FMV) of significant economic impact because the are prohibited except when an eligible that coverage might be calculated for regulation only adds a small additional individual would otherwise not have different types of plan coverage. Several group of children to the list of groups access to coverage and the dual commenters suggested methods for eligible for coverage under FEHB and enrollment has been authorized by the calculating the FMV. FEDVIP. employing office. Two commenters suggested using the (ii) Exception. An individual methodology in Private Letter Ruling List of Subjects described in paragraph (a)(2)(i) of this 9603011, where the FMV is the 5 CFR Part 890 section may enroll if he or she or his or difference between the Self and Family her eligible family members would Administrative practice and premium and the Self Only premium for otherwise not have access to coverage, procedure, Government employees, the selected plan, net of employee in which case the individual may enroll Health facilities, Health insurance, contributions. One commenter in his or her own right for self only or Health professions, Hostages, Iraq, suggested that this is a preferable self and family coverage, as appropriate. method because it is calculated from Kuwait, Lebanon, Military personnel, However, an eligible individual is information that is publicly available Reporting and recordkeeping entitled to receive benefits under only and does not require complicated requirements, Retirement. one enrollment regardless of whether he actuarial calculations on the part of the 5 CFR Part 892 or she qualifies as a family member under a spouse’s or parent’s enrollment. FEHB Program carrier. One commenter Administrative practice and To ensure that no person receives suggested that OPM may calculate FMV procedure, Government employees, benefits under more than one using the difference between the Health insurance, Taxes, Wages. actuarial value of insurance for a single enrollment, each enrollee must person and that of insurance for a 5 CFR Part 894 promptly notify the insurance carrier as couple or family. One commenter Administrative practice and to which persons will be covered under suggested that OPM use the actual procedure, Government employees, his or her enrollment. These individuals premium cost the Federal Government Health insurance, Taxes, Wages are not covered under the other would have paid if the child was not enrollment. Examples include but are included in the policy, despite this U.S. Office of Personnel Management. not limited to: method being opposed by the IRS in Elaine Kaplan, (A) To protect the interests of married some private letter rulings. Several Acting Director. or legally separated Federal employees, commenters suggested that OPM Accordingly, OPM is amending 5 CFR annuitants and their children, an consider actuarial studies and data to chapter I as follows: employee or annuitant may enroll in his ensure that an accurate FMV is or her own right in a self only or self determined. PART 890—FEDERAL EMPLOYEES and family enrollment, as appropriate, OPM appreciates the input from HEALTH BENEFITS PROGRAM even though his or her spouse also has commenters on how to determine FMV a self and family enrollment if the for coverage of children of domestic ■ 1. The authority citation for Part 890 employee, annuitant or his or her partners. OPM plans to provide, in the continues to read as follows: children live apart from the spouse and form of guidance to agencies, the FMV Authority: 5 U.S.C. 8913; Sec. 890.301 also would otherwise not have access to calculation for each FEHB plan for those issued under sec. 311 of Pub. L. 111–03, 123 coverage due to a service area restriction who wish to cover children of domestic Stat. 64; Sec. 890.111 also issued under and the spouse refuses to change health partners in a Self and Family enrollment section 1622(b) of Pub. L. 104–106, 110 Stat. plans. (and for FEDVIP plans for those 521; Sec. 890.112 also issued under section (B) When an employee who is under covering such children under a Self Plus 1 of Pub. L. 110–279, 122 Stat. 2604; 5 U.S.C. age 26 and covered under a parent’s self One or Self and Family enrollment) 8913; Sec. 890.803 also issued under 50 and family enrollment acquires an where the children are not eligible for U.S.C. 403p, 22 U.S.C. 4069c and 4069c–1; eligible family member, the employee subpart L also issued under sec. 599C of Pub. may elect to enroll for self and family favorable tax treatment as a dependent. L. 101–513, 104 Stat. 2064, as amended; Sec. This calculation will be available to 890.102 also issued under sections 11202(f), coverage. Federal agencies, payroll offices and 11232(e), 11246 (b) and (c) of Pub. L. 105– (iii) Children are entitled to receive enrollees annually, beginning for plan 33, 111 Stat. 251; and section 721 of Pub. L. benefits under only one enrollment year 2014. 105–261, 112 Stat. 2061. regardless of whether the children ■ qualify as family members under the Regulatory Impact Analysis 2. Section 890.302 is revised to read as follows: enrollment of both parents or of a parent OPM has examined the impact of this and a stepparent and regardless of rule as required by Executive Order § 890.302 Coverage of family members. whether the parents are married, 12866 (September 1993, Regulatory (a)(1) An enrollment for self and unmarried, divorced, legally separated, Planning and Review) and Executive family includes all family members who or in a domestic partnership. To ensure Order 13563, which directs agencies to are eligible to be covered by the that no person receives benefits under assess all costs and benefits of available enrollment. Except as provided in more than one enrollment, each enrollee regulatory alternatives and, if regulation paragraph (a)(2) of this section, no must promptly notify the insurance is necessary, to select regulatory employee, former employee, annuitant, carrier as to which family members will approaches that maximize net benefits child, or former spouse may enroll or be be covered under his or her enrollment. (including potential economic, covered as a family member if he or she These individuals are not covered under environmental, public, health, and is already covered under another the other enrollment.

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(b)(1) A child under the age of 26, or documentation described in paragraph (1) State that the child is incapable of a child of any age who is incapable of (b)(4)(viii) of this section may lead to self-support because of a physical or self-support because of a mental or disciplinary action and the recovery of mental disability that existed before the physical disability which existed before the cost of benefits received related to child became 26 years of age and that age 26, is considered to be a family such falsification and may constitute a can be expected to continue for more member eligible to be covered by the criminal violation under 18 U.S.C. 1001. than 1 year; enrollment of an enrolled employee or (x) Certify that they would marry but (2) Include a statement of the name of annuitant or a former employee or child for the failure of their state of residence the child, the nature of the disability, enrolled under § 890.1103 of this part if to permit same-sex marriage. the period of time it has existed, and its he or she is— (5) Notwithstanding the provisions of probable future course and duration; (i) A child born within marriage; paragraph (b)(2) of this section, the and, (ii) A recognized natural child; child of an enrollee and a domestic (3) Be signed by the physician and (iii) An adopted child; partner who otherwise meet the show the physician’s office address. The (iv) A stepchild; or requirements of paragraphs (b)(4)(i) employing office must require the (v) A foster child. enrollee to submit the certificate on or (2) Meaning of stepchild. Except as through (viii) of this section but live in a state that has authorized marriage by before the date the child becomes 26 provided in paragraph (b)(5) of this years of age. However, the employing section, for purposes of this part, the same-sex couples prior to the first day of Open Season, shall not be considered office may accept otherwise satisfactory term ‘‘stepchild’’ refers to the child of evidence of incapacity that is not timely an enrollee’s spouse or domestic partner a stepchild who is the child of a domestic partner in the following plan filed. and shall continue to refer to such child (d) Renewal of certificates of after the enrollee’s divorce from the year. The determination of whether a state’s marriage laws render a child incapacity. The employing office must spouse, termination of the domestic require an enrollee who has submitted partnership, or death of the spouse or ineligible for coverage as a stepchild who is the child of a domestic partner a certificate of incapacity to renew that domestic partner, so long as the child certificate on the expiration of the continues to live with the enrollee in a shall be made once annually, based on the law of the state where the same-sex minimum period of disability certified. regular parent-child relationship. (e) Determination of incapacity. (1) (3) Meaning of domestic partner. For couple lives on the last day before Open Season begins for the following plan Except as provided in paragraph (e)(2) purposes of this part, the term of this section, the employing office ‘‘domestic partner’’ is a person in a year. A child’s eligibility for coverage as a stepchild who is the child of a shall make determinations of incapacity. domestic partnership with an employee, (2) Either the employing office or the domestic partner in a particular plan annuitant, former employee or child carrier may make a determination of year shall not be affected by a mid-year enrolled under § 890.1103. incapacity if a medical condition, as (4) Meaning of domestic partnership. change to a state’s marriage law or by specified by OPM, exists that would For purposes of this part, the term the couple’s relocation to a different cause a child to be incapable of self- ‘‘domestic partnership’’ is defined as a state. For mid-year enrollment changes support during adulthood. committed relationship between two involving the addition of a new adults of the same sex, in which the stepchild, as defined by this regulation, ■ 3. Section 890.804 is revised to read partners— outside of Open Season, the as follows: (i) Are each other’s sole domestic determination of whether a state’s § 890.804 Coverage. partner and intend to remain so marriage laws render the child ineligible (a) Type of enrollment. A former indefinitely; for coverage shall be made at the time spouse who meets the requirements of (ii) Maintain a common residence, the employee notifies the employing and intend to continue to do so (or § 890.803 may elect coverage for self office of his or her desire to cover the only or for self and family. A family would maintain a common residence child. but for an assignment abroad or other enrollment covers only the former (6) Termination of domestic spouse and any child of both the former employment-related, financial, or partnership. An enrollee or his or her similar obstacle); spouse and the employee, former domestic partner must notify the employee or employee annuitant, (iii) Are at least 18 years of age and employing office within thirty calendar mentally competent to consent to a provided such child is not otherwise days in the event that any of the covered by a health plan under this part. contract; conditions listed in paragraphs (b)(4)((i) (iv) Share responsibility for a A child must be under age 26 or through (vii) of this section are no significant measure of each other’s incapable of self-support because of a longer met, in which case a domestic financial obligations; mental or physical disability existing (v) Are not married or joined in a civil partnership will be deemed terminated. before age 26. No person may be union to anyone else; (7) Tax issues. The fair market value covered by two enrollments. (vi) Are not a domestic partner of of coverage provided to a stepchild who (b) A child is considered to be the anyone else; is the child of a domestic partner will child of the former spouse or the (vii) Are not related in a way that, if be taxed in accordance with applicable employee, former employee, or they were of opposite sex, would tax laws unless the enrollee establishes employee annuitant if he or she is— prohibit legal marriage in the U.S. that the stepchild qualifies for favorable (1) A natural child; or jurisdiction in which the domestic tax treatment. (2) An adopted child. partnership was formed; (c) Child incapable of self-support. (c) Child incapable of self-support. (viii) Provide documentation When an individual’s enrollment for When a former spouse enrolls for a demonstrating fulfillment of the self and family includes a child who has family enrollment which includes a requirements of paragraphs (b)(4)(i) become 26 years of age and is incapable child who has become 26 years of age through (vii) of this section as of self-support, the employing office and is incapable of self-support, the prescribed by OPM; and must require such enrollee to submit a employing office shall determine such (ix) Certify that they understand that physician’s certificate verifying the child’s eligibility in accordance with willful falsification of the child’s disability. The certificate must— § 890.302(c), (d), and (e).

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■ 4. In § 890.1102, revise the definition ■ 7. In § 890.1107, revise paragraph (b) § 892.101 Definitions. of ‘‘Qualifying event’’ to read as follows: to read as follows: * * * * * Dependent means a family member § 890.1102 Definitions. § 890.1107 Length of temporary who is both eligible for coverage under continuation of coverage. * * * * * the FEHB Program and either a Qualifying event means any of the * * * * * dependent as defined in section 152 of following events that qualify an (b)(1) Except as provided in paragraph the Internal Revenue Code or a child as individual for temporary continuation (b)(2) of this section, in the case of defined in section 152(f)(1) of the of coverage under subpart K of this part: individuals who are eligible for Internal Revenue Code who is under age (1) A separation from Government continued coverage under 27 as of the end of the employee’s service. § 890.1103(a)(2), the temporary taxable year. (2) A divorce or annulment. continuation of coverage ends on the * * * * * (3) A change in circumstances that date that is 36 months after the date the Qualifying life event means an event causes an individual to become individual first ceases to meet the that may permit changes to your FEHB ineligible to be considered a child who requirements for being considered a enrollment as well as changes to your is a covered family member under this child who is a covered family member, premium conversion election as part. unless it is terminated earlier under the described in Treasury regulations at 26 ■ 5. In § 890.1103, revise paragraphs (a) provisions of § 890.1110. CFR 1.125–4. For purposes of introductory text and (a)(2) to read as (2) The temporary continuation of determining whether a qualifying life follows: coverage ends on the date that is 36 event has occurred under this part, a months after the date of the separation § 890.1103 Eligibility. stepchild who is the child of an from service on which the former employee’s domestic partner as defined (a) Except as provided by paragraph employee’s continuation of coverage is in part 890 of this chapter shall be (b) of this section, individuals described based, unless it is terminated earlier treated as though the child were a by this section are eligible to elect under the provisions of § 890.1110, in dependent within the meaning of 26 temporary continuation of coverage the case of individuals who— CFR 1.125–4 even if the child does not under this subpart. Eligible individuals (i) Are eligible for continued coverage so qualify under such Treasury are as follows: under § 890.1103(a)(2); and regulations. Such events include the * * * * * (ii) As of the day before ceasing to following: (2) Individuals whose coverage as meet the requirements for being (1) * * * children under the family enrollment of considered children who are covered (iii) Last dependent child loses an employee, former employee, or family members, were covered family coverage, for example, the child reaches annuitant ends because they cease members of a former employee receiving age 26, disabled child becomes capable meeting the requirements for being continued coverage under this subpart; of self support, child acquires other considered covered family members. and coverage by court order; and * * * For the purpose of this section, children (iii) Cease meeting the requirements ■ 12. In § 892.102, add two sentences to who are enrolled under this part as for being considered children who are the end of the section to read as follows: survivors of deceased employees or covered family members before the end annuitants are considered to be children of the 18-month period specified in § 892.102 What is premium conversion under a family enrollment of an paragraph (a) of this section. and how does it work? employee or annuitant at the time of the * * * * * * * * There is one exception, qualifying event. however. If your FEHB enrollment * * * * * § 890.1202 [Amended] covers a stepchild who is the child of a domestic partner as defined in part ■ ■ 8. In § 890.1202, remove the words 6. In § 890.1104, revise paragraphs 890 of this chapter, and that stepchild (b)(2) and (3) to read as follows: ‘‘unmarried dependent’’ from the definition of ‘‘covered family members.’’ does not qualify for favorable tax § 890.1104 Notification by agency. treatment under applicable tax laws, * * * * * § 890.1203 [Amended] then the portion of the allotted amount described above that represents the (b) * * * ■ 9. In § 890.1203, in paragraph (b), employee’s contribution toward the fair (2) If the notice described in remove the word ‘‘dependent’’ each market value of FEHB coverage paragraph (b)(1) of this section is time it appears. received by the employing office within provided to the child will be separately 60 days after the date on which the PART 892—FEDERAL FLEXIBLE imputed to the employee as income and child ceased meeting the requirements BENEFITS PLAN: PRE-TAX subject to applicable taxes. for being considered a covered family PAYMENTS OF HEALTH BENEFITS § 892.208 [Amended] member, the employing office must PREMIUMS PROGRAM ■ notify the child of his or her rights 13. In § 892.208(b), the number ‘‘22’’ under this subpart within 14 days after ■ 10. The authority citation for part 892 is removed and the number ‘‘26’’ is receiving the notice. continues to read as follows: added in its place. (3) This paragraph does not preclude Authority: 5 U.S.C. 8913; 5 U.S.C. PART 894—FEDERAL EMPLOYEES the employing office from notifying the 1103(a)(7); 26 U.S.C. 125; Sec. 892.101 also DENTAL AND VISION INSURANCE issued under sec. 311 of Pub. L. 111–3, 123 child of his or her rights based on oral PROGRAM or written notification by the child, Stat. 64. another family member, or any other ■ 11. In § 892.101, the definition of ■ 14. The authority citation for part 894 source that the child no longer meets ‘‘Dependent’’ and the introductory text continues to read as follows: the requirements for being considered a and paragraph (1)(iii) of the definition of Authority: 5 U.S.C. 8962; 5 U.S.C. 8992; covered family member. ‘‘Qualifying life event’’ are revised to subpart C also issued under sec. 1 of Pub. L. * * * * * read as follows: 110–279, 122 Stat. 2604.

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■ 15. In § 894.101, the definition of the cost of benefits received related to § 894.308 How do I establish the ‘‘Acquiring an eligible child’’ is revised such falsification and may constitute a dependency of my recognized natural and definitions for ‘‘Domestic partner,’’ criminal violation under 18 U.S.C. 1001. child? ‘‘Domestic partnership’’ and (a) Dependency is established for a (10) Certify that they would marry but recognized natural child who lives with ‘‘Stepchild’’ are added in alphabetical for the failure of their state of residence order to read as follows: the enrollee in a regular parent-child to permit same-sex marriage. relationship, a recognized natural child § 894.101 Definitions. (11) Termination of Domestic for whom a judicial determination of * * * * * Partnership. An enrollee or his or her support has been obtained, or a Acquiring an eligible child means one domestic partner must notify the recognized natural child to whose of the following: employing office within thirty calendar support the enrollee makes regular and (1) Birth of a child; days in the event that any of the substantial contributions. (2) Adoption of a child; conditions listed in paragraphs (1) (b) The following are examples of (3) Acquisition of a foster child as through (7) of this definition are no proof of regular and substantial support. described in § 890.101(a)(8) of this longer met, in which case a domestic More than one of the following proofs chapter; partnership will be deemed terminated. may be required to show support of a (4) Acquisition of a stepchild who recognized natural child who does not lives with the enrollee in a regular * * * * * live with the enrollee in a regular parent-child relationship; Stepchild means: parent-child relationship and for whom (5) Establishment of a recognized (1) Except as provided in paragraph a judicial determination of support has natural child; (2) of this definition, the child of an not been obtained: (6) Residence change of the enrollee’s (1) Evidence of eligibility as a enrollee’s spouse or domestic partner stepchild or recognized natural child dependent child for benefits under other and shall continue to refer to such child who moves in with the enrollee; and State or Federal programs; (7) An otherwise eligible child after the enrollee’s divorce from the (2) Proof of inclusion of the child as becoming unmarried due to divorce or spouse, termination of the domestic a dependent on the enrollee’s income annulment of marriage, or death. partnership, or death of the spouse or tax returns; domestic partner, so long as the child * * * * * (3) Canceled checks, money orders, or Domestic partner means a person in a continues to live with the enrollee in a receipts for periodic payments from the domestic partnership with an employee regular parent-child relationship. enrollee for or on behalf of the child. or annuitant. (2) The child of an enrollee and a (4) Evidence of goods or services Domestic partnership means a domestic partner who otherwise meet which show regular and substantial committed relationship between two the requirements of paragraphs (1) contributions of considerable value; (5) Any other evidence which OPM adults of the same sex, in which the through (8), set forth in the definition of shall find to be sufficient proof of partners— Domestic Partnership, but live in a state support or of paternity or maternity. (1) Are each other’s sole domestic that has authorized marriage by same- ■ 17. In § 894.403, add a sentence to the partner and intend to remain so sex couples prior to the first day of end of paragraph (a) to read as follows: indefinitely; Open Season, shall not be considered a (2) Maintain a common residence, and stepchild who is the child of a domestic § 894.403 Are FEDVIP premiums paid on a intend to continue to do so (or would partner in the following plan year. The pre-tax basis? maintain a common residence but for an determination of whether a state’s (a) * * * However, if your enrollment assignment abroad or other marriage laws render a child ineligible covers a stepchild who is the child of employment-related, financial, or for coverage as a stepchild who is the a domestic partner as defined in similar obstacle); child of a domestic partner shall be § 894.101, and that stepchild does not (3) Are at least 18 years of age and made once annually, based on the law qualify for favorable tax treatment under mentally competent to consent to a of the state where the same-sex couple applicable tax laws, the allotted amount contract; lives on the last day before Open Season of premium that represents the fair (4) Share responsibility for a market value of the FEDVIP coverage significant measure of each other’s begins for enrollment for the following year. A child’s eligibility for coverage as provided to the stepchild will be financial obligations; separately imputed to the employee as (5) Are not married or joined in a civil a stepchild who is the child of a income and subject to applicable taxes. union to anyone else; domestic partner in a particular plan (6) Are not a domestic partner of year shall not be affected by a mid-year * * * * * anyone else; change to a state’s marriage law or by [FR Doc. 2013–25734 Filed 10–29–13; 8:45 am] (7) Are not related in a way that, if the couple’s relocation to a different BILLING CODE 6325–63–P they were of opposite sex, would state. For midyear enrollment changes prohibit legal marriage in the U.S. involving the addition of a new jurisdiction in which the domestic stepchild, as defined by this regulation, NATIONAL CREDIT UNION partnership was formed; outside of Open Season, the ADMINISTRATION (8) Provide documentation determination of whether a state’s 12 CFR Part 741 demonstrating fulfillment of the marriage laws render the child ineligible requirements of paragraphs (1) through for coverage shall be made at the time RIN 3133–AD96 (7) of this definition as prescribed by the employee notifies the employing OPM; and office of his or her desire to cover the Liquidity and Contingency Funding (9) Certify that they understand that child. Plans willful falsification of the * * * * * AGENCY: National Credit Union documentation described in paragraph Administration (NCUA). (8) of this definition may lead to ■ 16. Add § 894.308 to subpart C to read ACTION: Final rule. disciplinary action and the recovery of as follows:

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SUMMARY: The NCUA Board (Board) is prohibitively high. At the time, the Twenty commenters stated that any issuing a final rule to require federally borrowing authority of NCUA’s Central emergency liquidity regulation should insured credit unions (FICUs) with less Liquidity Facility (CLF) was more than include the option of membership in a than $50 million in assets to maintain $40 billion, and it was able to play a Federal Home Loan Bank (FHLB), and a basic written policy that provides a significant role in making liquidity ten stated that it should include the credit union board-approved framework available to credit unions. Because of option of holding marketable securities. for managing liquidity and a list of the 2012 closure of U.S. Central Credit A number of commenters praised the contingent liquidity sources that can be Union and the redemption of most of its three-tiered approach, although 12 employed under adverse circumstances. CLF stock, however, the CLF’s suggested that the lower threshold The rule requires FICUs with assets of borrowing authority has been reduced to should be raised to match NCUA’s then- $50 million or more to have a just over $2 billion. proposed amendment to the definition contingency funding plan that clearly These events followed several years of of ‘‘small entity.’’ 4 Seven commenters sets out strategies for addressing ample liquidity. The rapid reversal in suggested that the higher threshold liquidity shortfalls in emergency market conditions and availability of should be raised. Six stated that asset situations. Finally, the rule requires liquidity during the crisis illustrated size is a poor basis on which to FICUs with assets of $250 million or how quickly liquidity can evaporate. determine whether liquidity more to have access to a backup federal This illiquidity can last for an extended requirements should be imposed. liquidity source for emergency period, leading to an institution’s Several commenters seemed confused situations. inability to meet its financial obligations about the proposed requirement that and possibly its insolvency. Many of the FICUs with assets of $100 million or DATES: This rule is effective March 31, liquidity-related difficulties experienced 2014. more have access to the CLF or Discount by financial institutions were due to Window. Their comments suggested FOR FURTHER INFORMATION CONTACT: Lisa lapses in basic principles of liquidity they believed the requirement meant Henderson, Staff Attorney, Office of risk management. This rule will that these larger credit unions would be General Counsel, (703) 518–6540; or J. strengthen FICU liquidity risk prohibited from establishing other Owen Cole, Jr., Director, Division of management, which is crucial to sources of liquidity. This is incorrect. Capital and Credit Markets, Office of ensuring the credit union system’s As discussed in greater detail below, the Examination and Insurance, (703) 518– resiliency during periods of financial Board encourages all FICUs to have 6620. market stress. multiple sources of liquidity. SUPPLEMENTARY INFORMATION: B. What did the 2012 proposed rule say? Twenty-five commenters objected to Table of Contents The 2012 proposed liquidity rule the CLF’s structure, specifically the required FICUs with less than $10 required stock investment and the CLF’s I. Background inability to guarantee same-day funding. A. Why is NCUA adopting this final rule? million in assets to maintain a written The Board notes that the stock B. What did the 2012 proposed rule say? liquidity policy, including a list of investment is required under the C. How did the commenters respond to the contingent liquidity sources.1 It also Federal Credit Union Act.5 2012 proposed rule? required FICUs with assets of $10 The Board II. Final Rule million or more to have a contingency also notes that the CLF cannot guarantee A. In general funding plan (CFP) that clearly sets out same-day funding to credit unions B. How does the final rule affect FICUs strategies for addressing liquidity because it borrows the funds it lends with less than $50 million in assets? from the Federal Financing Bank under C. How does the final rule affect FICUs shortfalls in emergency situations. Finally, it required FICUs with assets of terms prescribed by the U.S. Treasury. with $50 million or more in assets? Eighteen commenters either opposed D. What additional requirements apply to $100 million or more to have access to applying Basel III liquidity measures FICUs with $250 million or more in either the CLF or the Federal Reserve assets? Discount Window (Discount Window). and monitoring tools to FICUs with E. How are a FICU’s assets calculated for The proposed rule also requested assets over $500 million or suggested purposes of the final rule? comment on the costs and benefits of that NCUA proceed very slowly in F. Request for Comment Regarding Basel applying Basel III liquidity measures to considering such application. Liquidity 2 III. Regulatory Procedures FICUs with assets over $500 million. II. Final Rule I. Background C. How did the commenters respond to A. In General the 2012 proposed rule? After careful consideration of the A. Why is NCUA adopting this final NCUA received 45 comments on the rule? comments, the Board has concluded proposed rule. More than half of the that a liquidity rule is necessary to The recent financial crisis commenters urged that the rule not go ensure that FICUs remain resilient in demonstrated the importance of good forward, stating that NCUA had not times of economic stress. It, therefore, is liquidity risk management to the safety justified a need for a liquidity regulation adopting as final a modified version of and soundness of financial institutions. and that the guidance provided by the the 2012 proposed rule. As discussed in Many institutions experienced 2010 Interagency Policy Statement on greater detail below, this final rule significant financial stress because they Funding and Liquidity Risk addresses concerns raised by the did not manage their liquidity in a Management (Policy Statement) 3 was commenters. Accordingly, the Board is prudent manner. In some cases, these sufficient to control liquidity risk. adding a new § 741.12 to part 741, titled institutions had difficulty meeting their ‘‘Liquidity and Contingency Funding obligations as they became due because 1 77 FR 44503 (July 30, 2012). Plans.’’ The Board believes that FICUs, sources of funding became severely 2 See Basel Committee on Banking Supervision, relying on the guidance provided in the restricted. In the financial crisis, even ‘‘Basel III: International Framework for Liquidity Risk Measurement, Standards and Monitoring,’’ Policy Statement, generally have institutions that were healthy used Dec. 2010, available at http://www.bis.org/publ/ emergency federal liquidity facilities bcbs188.htm. 4 See 77 FR 59139 (Sept. 26, 2012). when funding costs became 3 75 FR 13656 (Mar. 22, 2010). 5 See generally 12 U.S.C. 1795–1795k.

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managed liquidity risk adequately. can be employed under adverse balance sheet, these assets have proven However, the financial crisis circumstances. Such a policy establishes to be insufficient in a crisis. highlighted the importance for FICUs to liquidity measures and associated The Board emphasizes that all FICUs have strong policies and programs benchmarks, a reporting requirement to should have access to multiple sources explicitly addressing the credit union’s keep the board apprised of the of funding, from both their own balance liquidity risk management. The Board institution’s liquidity position, and a sheets and through market funding believes it is critical to expand the contingent source, or sources, of sources. In requiring the largest FICUs credit union industry’s borrowing funding, such as a corporate credit to have established access to the CLF or capacity after the liquidation of U.S. union or correspondent bank. the Discount Window, the Board is not Central Credit Union. The Board is retaining the tiered C. How does the final rule affect FICUs suggesting that these sources are approach of the proposed rule and is with $50 million or more in assets? sufficient by themselves. FICUs with assets of $250 million or more should continuing to base the tiers on asset Section 741.12(b) requires any FICU size. The Board believes that, while have three distinct sources of liquidity with assets of at least $50 million to readily available. there are exceptions, larger credit have a fully developed, written CFP that unions generally present greater clearly sets out strategies for addressing First, all FICUs should maintain a exposure to the NCUSIF. The Board is, liquidity shortfalls in emergency balance sheet cushion of highly liquid however, raising the triggering situations. In addition to the policy assets as a basic element of liquidity risk thresholds from those in the proposed items required for smaller FICUs, a fully management. It is essential for FICUs of rule. developed CFP also provides for all sizes to hold an adequate safeguard Since the proposed rule was issued, evaluation of adverse liquidity of cash and cash equivalents (such as the Board revised the definition of scenarios, outlines specific actions to be short-term deposits and Treasury ‘‘small entity’’ from a credit union with taken and specific sources of liquidity securities) on the balance sheet less than $10 million in assets to one continuously. A balance-sheet cushion 6 in emergency liquidity events, and with less than $50 million in assets. provides for periodic testing of affords an institution time to avoid The Board also amended two NCUA contingent liquidity sources. Section service disruptions and enter external regulations that grant relief based on an 741.12(d) of the final rule details all of funding arrangements if necessary. asset threshold, raising that threshold 7 the requirements of a CFP. The Board is A second element of liquidity from $10 million to $50 million. For imposing greater requirements on these regulatory relief and regulatory management is borrowing from market larger FICUs because of the critical counterparties, such as corporate credit consistency, the Board is raising the importance of a well-developed CFP to lowest threshold in this rule—requiring unions, correspondent banks, FHLBs, the viability of these institutions and, and repurchase agreement a basic written policy—to include credit ultimately, the safety of the NCUSIF. unions with less than $50 million in counterparties. The ability to borrow assets. D. What additional requirements apply from market sources requires having In response to comments, and to to FICUs with $250 million or more in unencumbered assets that can be readily reduce regulatory burden, the Board is assets? pledged against a loan. Larger FICUs raising the highest threshold—requiring with greater potential funding needs In addition to the requirement to have established access to a federal liquidity should have multiple stable borrowing a written CFP, § 741.12(c) of the final provider—from $100 million to $250 sources and a clear understanding of rule requires any FICU with assets of million. While the Board encourages which assets can be pledged. $250 million or more to ensure it has FICUs with assets between $100 million immediate, established access to either The third element of protection is and $250 million to have this access, the the CLF or the Discount Window. These access to a federal emergency liquidity Board is not requiring it at this time. larger credit unions have a greater provider: The CLF or the Discount B. How does the final rule affect FICUs degree of interconnectedness with other Window. These providers exist to with less than $50 million in assets? market entities. When they experience provide backup liquidity in circumstances where on-balance sheet The Board continues to believe that it unexpected or severe liquidity circumstances, they are more likely to liquidity and market sources prove is essential for every FICU, regardless of inadequate. Like the market funding size and complexity, to have a adversely affect the credit union system, public perception, and the NCUSIF. sources, the CLF and Discount Window management process for identifying, are both collateral-based lending The Board determined not to include measuring, monitoring, and controlling facilities. The Board believes that, to FHLB membership as a federal liquidity risk that is commensurate with protect the NCUSIF, it is essential for contingency source for purposes of its respective needs. FICUs with less FICUs with assets of at least $250 meeting the requirements of this rule. than $50 million in assets present million to have this third element of As discussed in the preamble to the relatively limited liquidity concerns, as liquidity in place. they tend to have lower loan-to-share proposed rule, FHLBs can be valuable ratios, shorter duration assets, and contingency funding sources. However, The rule provides that a FICU may higher amounts of balance sheet while government sponsored, FHLBs are demonstrate access by becoming a liquidity than larger credit unions. not federal facilities and are not regular member of the CLF, becoming a Accordingly, § 741.12(a) of the final rule obligated to meet emergency liquidity member of the CLF through an agent, or requires these smaller FICUs to demands in the same way that the CLF establishing borrowing access through maintain a basic written policy that and Discount Window are designed to the Discount Window. As discussed in provides a credit union board-approved do. The Board also declines to allow the preamble to the proposed rule, framework for managing liquidity and a large FICUs to meet the requirements of corporate credit unions may facilitate list of contingent liquidity sources that the rule by holding a portfolio of natural person credit unions becoming marketable securities. While it is regular CLF members by, for example, 6 78 FR 4032 (Jan. 18, 2013). prudent for every FICU to have a assisting with applications of credit, 7 Id. cushion of highly liquid assets on its serving as a collateral custodian and

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administrator, and assisting with credit Discount Window operation can be Window is designed to handle sudden reporting requirements.8 found at www.frbdiscountwindow.org. emergencies that require same-day The Discount Window serves all The Board notes that, while not access to liquidity. The CLF, on the depository institutions that meet required in the final rule, a FICU may other hand, is designed to handle eligibility requirements established by wish to both become a member of the sustained emergencies that require 9 Federal Reserve regulations. To gain CLF and establish borrowing access at federal backup liquidity for several access to the Discount Window, the the Discount Window. The combination months. Federal Reserve requires specific of the CLF and the Discount Window agreements to be executed. Information would provide the greatest protection in The following table shows some of the regarding these agreements, as set forth the event of a sudden and sustained similarities and differences between the in Operating Circular No. 10, and liquidity emergency. The Discount CLF and the Discount Window.

Federal reserve discount window Central Liquidity Facility (CLF)

Similarities ...... Both the Discount Window and the CLF function as safety valves to relieve liquidity pressure on individual depository institu- tions and to stabilize broader liquidity systems.

Both are fully secured collateral-based lenders.

Both met emergency liquidity needs for individual institutions and for entire systems during the latest financial crisis.

Differences ...... The Fed is able to advance same-day funds to qualifying CLF funding may take 1–10 business days depending on the credit unions (subject to collateral requirements). requested dollar amount (also subject to collateral require- ments). The Fed’s overnight loans may be renewable, but any series The CLF makes loans up to 90 days, and these 90-day of rollovers is expected to be brief in duration. loans may be renewed for an additional term under certain circumstances.

With established access to both, in a show its assets to be in that higher b. Paperwork Reduction Act liquidity crisis, when balance sheet and category. A FICU will then have 120 The Paperwork Reduction Act of 1995 market sources are not enough, a FICU days from the effective date of that (PRA) applies to rulemakings in which would have the ability to immediately second Call Report to meet the higher an agency by rule creates a new obtain federal backup liquidity through triggered requirements. paperwork burden on regulated entities the Discount Window. If the FICU’s 10 F. Request for Comment Regarding or modifies an existing burden. For emergency liquidity needs persist for Basel Liquidity purposes of the PRA, a paperwork more than a few days, the FICU would burden may take the form of a reporting, have the flexibility to maintain federal In the proposed rule, the Board recordkeeping, or disclosure backup liquidity through the CLF for requested comment on whether certain requirement, each referred to as an several months at a time. The amount of Basel III liquidity measures and information collection. liquidity advances available from either monitoring tools should be incorporated NCUA has determined the facility is a function of the eligible into NCUA’s supervisory expectations requirement to maintain a basic written collateral available to pledge. for the largest FICUs. In response to liquidity policy is an information A FICU with $250 million or more in comments, the Board has determined collection requirement. NCUA estimates assets will be in compliance with this not to take up the Basel measures at this that all 4,444 credit unions under $50 final rule if, by the effective date of time. million in total assets may have to March 31, 2014, it has submitted either formalize their liquidity risk policies a completed application for access to III. Regulatory Procedures and that this task should take the CLF or the necessary lending a. Regulatory Flexibility Act approximately 8 hours per credit union. agreements and corporate resolutions to The expected burden of the requirement obtain credit from the Discount The Regulatory Flexibility Act is: 4,444 FICUs × 8 hours = 35,552 Window. requires NCUA to prepare an analysis to hours. describe any significant economic NCUA has further determined the E. How are a FICU’s assets calculated impact any regulation may have on a requirement to establish and document for purposes of the final rule? substantial number of small entities a CFP constitutes an information Credit unions’ assets can grow and (those under $50 million in assets). The collection requirement but that, because shrink rapidly, and a particular FICU’s final rule requires small FICUs to of the Policy Statement, approximately assets may cross the $50 million or $250 establish a basic liquidity policy, which 447 out of 2,237 (or 20%) of FICUs with million threshold repeatedly over a is a best practice for every depository assets of at least $50 million will short period of time. In light of this institution. Because the policy requires already have established such a plan. fluctuation, § 741.12(e) of the final rule only modest effort, it will not have a NCUA estimates that 1,790 FICUs will provides that a FICU is subject to the significant economic impact on a have to develop a written CFP and that requirements of a higher asset category substantial number of small credit the task should take a FICU when two consecutive Call Reports unions. approximately 24 hours. The expected

8 A corporate acting as a CLF correspondent a regular member of the CLF, it must subscribe to liabilities’’ include transaction accounts and would not be an agent member of the CLF within CLF stock. 12 U.S.C. 1795c(a); 12 CFR 725.3. nonpersonal time deposits. For most credit unions, the meaning of 12 U.S.C. 1795c(b) or 12 CFR 725.4, 9 Any depository institution holding liabilities share draft accounts would be the principal as it would not subscribe to CLF stock for its potentially subject to reserve requirements under reserveable liability. See 12 CFR part 204. Federal Reserve regulations can establish access to members. For a natural person credit union to be 10 44 U.S.C. 3507(d); 5 CFR part 1320. the Discount Window. Such ‘‘reserveable

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burden of the requirement is: 1,790 instances where NCUA issues a final (Facility), as described in part 725 of FICUs × 24 hours = 42,960 hours. rule as defined by section 551 of the this chapter; NCUA has also determined the Administrative Procedure Act.11 NCUA (2) Maintaining membership in the requirement to either become a member does not believe this final rule is a Facility through an Agent, as described of the CLF or establish borrowing access ‘‘major rule’’ within the meaning of the in part 725 of this chapter; or through the Discount Window creates a relevant sections of SBREFA and has (3) Establishing borrowing access at new information collection requirement. submitted the rule to the Office of the Federal Reserve Discount Window There are 771 FICUs with assets of at Management and Budget for its by filing the necessary lending least $250 million, 374 of which are not determination in that regard. agreements and corporate resolutions to currently regular members of CLF and/ obtain credit from a Federal Reserve or do not report having established List of Subjects in 12 CFR Part 741 Bank pursuant to 12 CFR part 201. Discount Window access. NCUA Credit, Credit unions, Reporting and (d) Contingency Funding Plan: A estimates that it should take a FICU recordkeeping requirements. credit union must have a written CFP approximately 4 hours to complete the By the National Credit Union commensurate with its complexity, risk necessary paperwork to establish either Administration Board on October 24, 2013. profile, and scope of operations that sets CLF or Discount Window access. The Gerard Poliquin, out strategies for addressing liquidity expected burden of the requirement is: Secretary of the Board. shortfalls in emergency situations. The 374 FICUs × 4 hours = 1,496 hours. CFP may be a separate policy or may be While the regulation provides the For the reasons stated above, the incorporated into an existing policy option of establishing CLF membership National Credit Union Administration such as an asset/liability policy, a funds through an agent, NCUA estimates that amends 12 CFR part 741 as follows: management policy, or a business no corporates will opt to be agent continuity policy. The CFP must members at this time and, therefore, no PART 741—REQUIREMENTS FOR address, at a minimum, the following: FICUs will establish membership in this INSURANCE (1) The sufficiency of the institution’s manner. liquidity sources to meet normal ■ 1. The authority citation for part 741 As required by the PRA, NCUA operating requirements as well as continues to read as follows: submitted a copy of this final rule to contingent events; OMB for its review and approval. Authority: 12 U.S.C. 1757, 1766(a), 1781– (2) The identification of contingent 1790, and 1790d; 31 U.S.C. 3717. liquidity sources; c. Executive Order 13132 ■ 2. Add § 741.12 to subpart A to read (3) Policies to manage a range of stress Executive Order 13132 encourages as follows: environments, identification of some independent regulatory agencies to possible stress events, and identification consider the impact of their actions on § 741.12 Liquidity and Contingency Funding Plans. of likely liquidity responses to such state and local interests. NCUA, an events; independent regulatory agency as (a) Any credit union insured pursuant (4) Lines of responsibility within the defined in 44 U.S.C. 3502(5), voluntarily to Title II of the Act that has assets of institution to respond to liquidity complies with the executive order to less than $50 million must maintain a events; adhere to fundamental federalism basic written policy that provides a (5) Management processes that principles. This final rule does not have credit union board-approved framework include clear implementation and substantial direct effects on the states, for managing liquidity and a list of escalation procedures for liquidity on the relationship between the national contingent liquidity sources that can be events; and government and the states, or on the employed under adverse circumstances. (6) The frequency that the institution distribution of power and (b) Any credit union insured pursuant will test and update the plan. responsibilities among the various to Title II of the Act that has assets of (e) A credit union is subject to the levels of government. NCUA has $50 million or more must establish and requirements of paragraphs (b) or (c) of determined that this rule does not document a contingency funding plan this section when two consecutive Call constitute a policy that has federalism (CFP) that meets the requirements of Reports show its assets to be at least $50 implications for purposes of the paragraph (d) of this section. million or $250 million, respectively. A executive order. (c) In addition to the requirement FICU then has 120 days from the specified in paragraph (b) of this section effective date of that second Call Report d. The Treasury and General to establish and maintain a CFP, any to meet the greater requirements. Government Appropriations Act, 1999— credit union insured pursuant to Title II Assessment of Federal Regulations and of the Act that has assets of $250 million [FR Doc. 2013–25714 Filed 10–29–13; 8:45 am] Policies on Families or more must establish and document BILLING CODE 7535–01–P The NCUA has determined that this access to at least one contingent federal final rule will not affect family well- liquidity source for use in times of NATIONAL CREDIT UNION being within the meaning of section 654 financial emergency and distressed ADMINISTRATION of the Treasury and General economic circumstances. These credit Government Appropriations Act, 1999, unions must conduct advance planning 12 CFR Parts 741 and 748 Public Law 105–277, 112 Stat. 2681 and periodic testing to ensure that (1998). contingent funding sources are readily RIN 3313–AE25 available when needed. A credit union Filing Financial and Other Reports e. Small Business Regulatory subject to this paragraph may Enforcement Fairness Act demonstrate access to a contingent AGENCY: National Credit Union The Small Business Regulatory federal liquidity source by: Administration (NCUA). Enforcement Fairness Act of 1996 (Pub. (1) Maintaining regular membership ACTION: Final rule. L. 104–121) provides generally for in the Central Liquidity Facility congressional review of agency rules. A SUMMARY: The NCUA Board (Board) is reporting requirement is triggered in 11 5 U.S.C. 551. issuing a final rule to amend its

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regulations regarding filing financial, must file written reports in accordance proposed rule would sufficiently reduce statistical, and other reports and credit with NCUA instructions. costs and increase efficiency for NCUA, union profiles by requiring all federally and found that manual filings were not B. July 2013 Proposal insured credit unions (FICUs) to file this a significant burden on NCUA’s information electronically using Executive Order 13579 provides that resources. NCUA’s information management independent agencies, including NCUA, Commenters also made other system or other electronic means should consider if they can modify, recommendations. Some of these specified by NCUA. Under the current streamline, expand, or repeal existing recommendations include having rule, FICUs are required to file this rules to make their programs more NCUA: 1) Change the required filing information online only if they have the effective and less burdensome. NCUA date for call reports to be 30 days after capacity to do so. seeks to reduce operating costs and the end of the quarter; 2) encourage DATES: This rule is effective January 1, promote environmentally responsible manual filers to move toward electronic 2014. practices. NCUA estimates it costs the filing within a reasonable amount of agency $125 per filer per quarter to FOR FURTHER INFORMATION CONTACT: time, the duration of which should process manual filings of call reports Sarah Chung, Staff Attorney, Office of depend on the particular credit union; alone. In July 2013, NCUA proposed to General Counsel, at 1775 Duke Street, and 3) continue to work with small require all FICUs to submit call reports Alexandria, Virginia 22314–3428, credit unions, through its Office of and other data electronically, and to telephone (703) 518–1178, or Mark Small Credit Union Initiatives (OSCUI), update their credit union profiles online Vaughan, Director, Division of Analytics to help move them toward electronic to reduce the expense of printing and and Surveillance, Office of Examination filing. mailing paper forms and other and Insurance, at 1775 Duke Street, The Board has considered all public processing costs.6 Under the proposed Alexandria, Virginia 22314–3428, comments carefully. While NCUA rule, filing manually would no longer be telephone (703) 518–6622. appreciates the commenters’ concerns an option. SUPPLEMENTARY INFORMATION: for small credit unions, NCUA believes Additionally, NCUA would increase that electronic filing will save time and I. Background and Proposal efficiency, enhance accuracy of data, resources, as well as increase the II. Summary of Public Comments and Final and provide a secure access portal that efficiency in processing all reports. Rule is the sole means for FICUs to submit, III. Regulatory Procedures NCUA believes that once manual filers edit, and view data that NCUA collects. embrace online filing, they will find it I. Background and Proposal This permits FICUs to submit data is quicker and easier than manual filing, securely to NCUA from any computer A. Background and it will reduce their administrative with Internet access. To assist FICUs burden. NCUA will continue to help The Federal Credit Union Act (Act) making this transition, NCUA already small credit unions transition to provides NCUA with broad authority to provides instructions on how to report electronic filing and anticipates that require FICUs, including corporate online and has posted a ‘‘frequently OSCUI will continue to participate in credit unions, to submit financial data asked questions’’ section on NCUA’s this effort. Web site. and other information as required by the Accordingly, the Board is adopting 1 Board. The Act directs each FICU to II. Summary of Public Comments and the July 2013 proposed rule as final make reports of condition to the Board Final Rule without any changes. The final rule will 2 on dates selected by the Board. The be effective on January 1, 2014, which Board has broad discretion to set the NCUA received 12 comments on the proposed rule. The comments were from means it is applicable to the fourth conditions and information quarter 2013 call report data, which are 3 3 trade associations representing credit requirements for such reports. More due to NCUA later in January 2014. specifically, NCUA requires FICUs to unions, 6 state credit union leagues submit financial reports, reports of (some of these leagues represent more III. Regulatory Procedures than one state), a state-chartered, officials, credit union profiles, and other A. Regulatory Flexibility Act reports.4 federally insured credit union, a federal Section 741.6(a) of NCUA’s credit union, and a state regulators The Regulatory Flexibility Act regulations requires FICUs to file association. requires NCUA to prepare an analysis to financial, statistical, and other reports, Six commenters generally supported describe any significant economic including call reports. Section 748.1 of the proposed rule. Some commenters impact a regulation may have on a NCUA’s regulations requires the believed the proposal would lead to substantial number of small entities.7 president or managing official of each increased efficiencies and enhance the For purposes of this analysis, NCUA FICU to certify compliance with a accuracy and availability of data. Others considers small credit unions to be variety of requirements in its credit maintained that NCUA appropriately those having under $50 million in union profile. considered the burden on filers and assets.8 This final rule requires a very Under NCUA’s current regulations, a made hardware and training available to small number of manual filers to FICU must use NCUA’s information help small credit unions. transition to electronic filing. This final management system, or other electronic Six commenters generally did not rule would affect relatively few FICUs means specified by NCUA, to submit its support the proposed rule. Some and the associated cost is minimal. reportable data online, unless it is commenters expressed concerns about Accordingly, NCUA certifies this final unable to do so.5 In this case, a FICU the hardships that electronic filing may rule will not have a significant have on the smallest credit unions who economic impact on small entities. 1 12 U.S.C. 1756, 1766, 1781, and 1782. have limited staffing and electronic 2 Id. resources. Others did not believe the 7 5 U.S.C. 603(a). 3 Id. 8 Interpretive Ruling and Policy Statement 03–2, 4 12 CFR 741.6 and 748.1. different from the system used by natural person 68 FR 31949 (May 29, 2003), as amended by 5 Id. Currently, corporate credit unions use an FICUs. Interpretative Ruling and Policy Statement 13–1, 78 electronic system for submitting data online 6 78 FR 46850 (Aug. 2, 2013). FR 4032 (Jan. 18, 2013).

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B. Paperwork Reduction Act rule as defined by Section 551 of the Authority: 12 U.S.C. 1766(a), 1786(q); 15 12 U.S.C. 6801–6809; 31 U.S.C. 5311 and 5318. The Paperwork Reduction Act of 1995 Administrative Procedure Act. NCUA ■ (PRA) applies to rulemakings in which does not believe this final rule is a 4. In § 748.1, revise paragraph (a) to an agency by rule creates a new ‘‘major rule’’ within the meaning of the read as follows: relevant sections of SBREFA. This final paperwork burden on regulated entities § 748.1 Filing of reports. or modifies an existing burden.9 For rule requires a very small number of manual filers to file financial, statistical, (a) The president or managing official purposes of the PRA, a paperwork of each federally insured credit union burden may take the form of either a and other reports electronically, which is minimally intrusive and economically must certify compliance with the reporting or a recordkeeping requirements of this part in its Credit requirement, both referred to as negligible. NCUA has submitted the rule to the Office of Management and Budget Union Profile annually through NCUA’s information collections. This final rule online information management system. requires the same information for its determination in that regard. previously required in a different * * * * * List of Subjects [FR Doc. 2013–25716 Filed 10–29–13; 8:45 am] format, which NCUA believes will require the same or a lesser amount of 12 CFR Part 741 BILLING CODE 7535–01–P time to produce. This final rule will not Credit, Credit unions, Reporting and create new paperwork burdens or recordkeeping requirements, Share FEDERAL TRADE COMMISSION modify any existing paperwork insurance. burdens.10 12 CFR Part 748 16 CFR Part 4 C. Executive Order 13132 Credit unions, Reporting and Freedom of Information Act (FOIA); Executive Order 13132 encourages recordkeeping requirements, Security Miscellaneous Rules Redelegation of independent regulatory agencies to measures. Authority To Determine Appeals Under consider the impact of their actions on By the National Credit Union the FOIA state and local interests. In adherence to Administration Board on October 24, 2013. fundamental federalism principles, AGENCY: Federal Trade Commission Gerard Poliquin, NCUA, an independent regulatory (FTC). Secretary of the Board. agency as defined in 44 U.S.C. 3502(5), ACTION: Final rule amendments. voluntarily complies with the executive For the reasons stated above, NCUA order. This final rule will not have a amends 12 CFR parts 741 and 748 as SUMMARY: The Commission is revising substantial direct effect on the states, on follows: its rules to authorize the General the connection between the national Counsel to redelegate his or her government and the states, or on the PART 741—REQUIREMENTS FOR authority to determine appeals related distribution of power and INSURANCE to the Freedom of Information Act responsibilities among the various (‘‘FOIA’’). The Commission is adopting ■ 1. The authority for part 741 levels of government. NCUA has these changes in order to improve and continues to read as follows: determined this final rule does not expedite the process for responding to constitute a policy that has federalism Authority: 12 U.S.C. 1757, 1766(a), 1781– such appeals. The changes will affect implications for purposes of the 1790, and 1790d; 31 U.S.C. 3717. internal procedures only and are not executive order. ■ 2. In § 741.6, revise paragraph (a) intended to influence the outcomes of introductory text to read as follows: appeals made under the rules. The D. Treasury and General Government Commission is also adding a new Appropriations Act, 1999—Assessment § 741.6 Financial and statistical and other provision that explicitly provides the reports. of Federal Regulations and Policies on right to appeal fee waiver Families (a) Upon written notice from the determinations under the FOIA. NCUA Board, Regional Director, NCUA has determined that this final DATES: These amendments are effective rule will not affect family well-being Director of the Office of Examination October 30, 2013. and Insurance, or Director of the Office within the meaning of Section 654 of FOR FURTHER INFORMATION CONTACT: W. the Treasury and General Government of National Examinations and Supervision, insured credit unions must Ashley Gum, Attorney, Office of the Appropriations Act, 1999, Public Law General Counsel, FTC, 600 105–277, 112 Stat. 2681 (1998). file financial and other reports in accordance with the instructions in the Pennsylvania Avenue NW., Washington, E. Small Business Regulatory notice. Insured credit unions must use DC 20580, 202–326–3006. Enforcement Fairness Act NCUA’s information management SUPPLEMENTARY INFORMATION: Under the The Small Business Regulatory system, or other electronic means Commission’s current rule governing FOIA appeals (16 CFR 4.11(a)), appeals Enforcement Fairness Act of 1996 11 specified by NCUA, to submit their data from initial denials of requests for (SBREFA) provides generally for online. extensions, and initial denials of congressional review of agency rules. A * * * * * requests for information under the reporting requirement is triggered in FOIA, are addressed to the General instances where NCUA issues a final PART 748—SECURITY PROGRAM, REPORT OF SUSPECTED CRIMES, Counsel. 16 CFR 4.11(a)(3)(i)(A)(4). 9 44 U.S.C. 3507(d); 5 CFR part 1320. SUSPICIOUS TRANSACTIONS, Reorganization Plan No. 4 of 1961, 75 10 The information collection in Call Reports and CATASTROPHIC ACTS AND BANK Stat. 837, authorizes the Commission to Credit Union Profiles for natural person credit SECRECY ACT COMPLIANCE delegate any of its functions. It imposes unions (NCUA Form 5300) is currently approved no restrictions on the Commission’s under OMB Control Number 3133–0004. For ■ 3. The authority for part 748 capacity to authorize a Commission corporate credit unions (NCUA Form 5310), the information collection in Call Reports is pending continues to read as follows: official to designate others to carry out under OMB Control Number 3133–0067. delegated functions (i.e., to redelegate). 11 Public Law 104–121, 110 Stat. 857 (1996). 12 5 U.S.C. 551. The Commission notes that generally

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FOIA appeals are time-consuming 4.11(a)(3)(i)(A)(3),1 but that proposed DEPARTMENT OF HOMELAND because they cannot be decided addition did not elicit any comments. SECURITY generically. Each appeal can involve List of Subjects in 16 CFR Part 4 numerous documents that must be Coast Guard analyzed individually on the basis of Administrative practice and 33 CFR Part 117 the standards provided in the FOIA. The procedure, Freedom of Information Act. Commission believes that this [Docket No. [USCG–2013–0900]] redelegation authority would be in the For the reasons set forth in the public interest because it would enable preamble, the Federal Trade Drawbridge Operation Regulations; the administrative review process to be Commission amends Title 16, Chapter I, Atlantic Intracoastal Waterway (AICW), carried out more expeditiously. The Subchapter A of the Code of Federal Albemarle and Chesapeake Canal, Commission is therefore revising Regulations as follows: Chesapeake, VA paragraph (a)(3)(iii)(B) of the rule to PART 4—MISCELLANEOUS RULES AGENCY: Coast Guard, DHS. authorize the General Counsel to ACTION: Notice of deviation from redelegate any FOIA appeal function to ■ drawbridge regulation. a Deputy General Counsel because it is 1. The authority citation for Part 4 continues to read as follows: primarily a legal review to assure SUMMARY: The Coast Guard has issued a compliance with existing law and to Authority : 15 U.S.C. 46, unless otherwise temporary deviation from the operating assure implementation of existing noted. schedule that governs the SR 170/ Commission policy. Decisions of a Centerville Turnpike Bridge, at AICW ■ Deputy General Counsel on appeal shall 2. Amend § 4.11 by adding paragraph mile 15.2, across Albemarle and constitute final agency action. In (a)(3)(i)(A)(3) and revising paragraph Chesapeake Canal, at Chesapeake, VA. unusual or difficult cases, such as those (a)(3)(iii)(B), to read as follows: The deviation is necessary to facilitate that present novel policy issues, the § 4.11. Disclosure requests. structural repairs to the superstructure General Counsel, in his/her discretion, of the SR 170/Centerville Turnpike may make the determination himself or (a) * * * Bridge. This temporary deviation will refer an appeal to the Commission for (3) * * * allow the drawbridge to change the determination. operating schedule on specific dates and (i) * * * As noted above, the Commission is times. (A) * * * also adding a new Rule DATES: This deviation is effective from 4.11(a)(3)(i)(A)(3), which is currently (3) If an initial request for a fee waiver 7 a.m. on November 2, 2013 until 7 p.m. reserved in the CFR, to provide FOIA or reduction is denied, the requester November 10, 2013. requesters with the explicit right to may, within 30 days of the date of the ADDRESSES: The docket for this appeal fee waiver and reduction letter notifying the requester of that deviation, [USCG–2013–0900] is determinations and to include a clear decision, appeal such denial to the available at http://www.regulations.gov. deadline for filing such appeals. General Counsel. In unusual Type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ The Commission believes that the circumstances, the time to appeal may Click on Open Docket Folder on the line proposed rule amendments do not be extended by the General Counsel or his or her designee. associated with this deviation. You may require an initial or final regulatory also visit the Docket Management * * * * * analysis under the Regulatory Facility in Room W12–140 on the Flexibility Act because the amendments (iii) * * * ground floor of the Department of will not have a significant economic (B) The General Counsel may Transportation West Building, 1200 impact on a substantial number of small designate a Deputy General Counsel to New Jersey Avenue SE., Washington, entities. See 5 U.S.C. 605(b). Most make any determination assigned to the DC 20590, between 9 a.m. and 5 p.m., requests for access to FTC records are General Counsel by paragraph (a) of this Monday through Friday, except Federal filed by individuals, who are not ‘‘small section. The General Counsel or the holidays. entities’’ within the meaning of that Act, FOR FURTHER INFORMATION CONTACT: If 5 U.S.C. 601(6), and, in any event, the official designated by the General Counsel to make the determination shall you have questions on this temporary economic impact of the rule changes on deviation, call or email Mr. Jim all requesters is expected to be minimal, be deemed solely responsible for the denial of all appeals, except where an Rousseau, Bridge Administration if any. Moreover, these proposed rule Branch Fifth District, Coast Guard, amendments are matters of agency appeal is denied by the Commission. In such instances, the Commission shall be telephone (757) 398–6557, email practice and procedure that are exempt [email protected]. If you from notice-and-comment requirements deemed solely responsible for the denial. have questions on viewing the docket, of the Administrative Procedure Act, 5 call Barbara Hairston, Program Manager, U.S.C. 553(b), which also exempts the * * * * * Docket Operations, telephone (202) proposed amendments from the analysis By direction of the Commission. 366–9826. requirements of the Regulatory Donald S. Clark, SUPPLEMENTARY INFORMATION: The City Flexibility Act, 5 U.S.C. 601(2). of Chesapeake, who owns and operates Likewise, the amendments do not Secretary. [FR Doc. 2013–25709 Filed 10–29–13; 8:45 am] this swing bridge, has requested a contain information collection temporary deviation from the current requirements within the meaning of the BILLING CODE 6750–01–P operating regulations set out in 33 CFR Paperwork Reduction Act, 44 U.S.C. 117.997(i), to facilitate structural 3501–3520. The Commission repairs. nonetheless solicited comments Under the regular operating schedule, regarding the new Rule 1 See 78 FR 13570, 13573 (Feb. 28, 2013). the S.R. 170/Centerville Turnpike

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Bridge, Albemarle and Chesapeake additional waterway users through our Transportation West Building, 1200 Canal mile 15.2, at Chesapeake, VA Local and Broadcast Notices to Mariners New Jersey Avenue SE., Washington, shall open on signal at any time for of the closure periods for the bridge so DC 20590, between 9 a.m. and 5 p.m., commercial vessels carrying liquefied that vessels can arrange their transits to Monday through Friday, except Federal flammable gas or other hazardous minimize any impacts caused by the holidays. materials; From 6:30 a.m. to 8:30 a.m., temporary deviation. and from 4 p.m. to 6 p.m., Monday In accordance with 33 CFR 117.35(e), FOR FURTHER INFORMATION CONTACT: If through Friday, except Federal holidays the drawbridge must return to its regular you have questions on this temporary the draw need not open for the passage operating schedule immediately at the deviation, call or email Eric A. of recreational or commercial vessels end of the effective period of this Washburn, Bridge Administrator, that do not qualify; Need not open for temporary deviation. Western Rivers, Coast Guard; telephone commercial cargo vessels, including tug, This deviation from the operating (314) 269–2378, email Eric.Washburn@ and tug with tows, unless 2 hours regulations is authorized under 33 CFR uscg.mil. If you have questions on advance notice has been given to the 117.35. viewing the docket, call Barbara S.R. 170/Centerville Turnpike Bridge at Dated: October 16, 2013. Hairston, Program Manager, Docket (757) 547–3632; and from 8:30 a.m. to Waverly W. Gregory, Jr., Operations, telephone (202) 366–9826. 4 p.m., Monday through Friday, except Federal holidays, the draw need only be Bridge Program Manager, Fifth Coast Guard SUPPLEMENTARY INFORMATION: The District. opened on the hour and half hour. If any Norfolk Southern Railroad requested a vessel is approaching the bridge and [FR Doc. 2013–25624 Filed 10–29–13; 8:45 am] temporary deviation for the Hannibal cannot reach the draw exactly on the BILLING CODE 9110–04–P Railroad Drawbridge, mile 309.9, at hour or half hour, the draw tender may Hannibal, Missouri across the Upper delay the opening ten minutes past the Mississippi River. It has a vertical DEPARTMENT OF HOMELAND hour or half hour for the passage of the clearance of 21.1 feet above normal pool SECURITY approaching vessel and any other in the closed position. The Hannibal vessels that are waiting to pass. It shall Coast Guard Railroad Drawbridge currently operates open on signal at all other times. in accordance with 33 CFR 117.5, which The S.R. 170/Centerville Turnpike 33 CFR Part 117 states the general requirement that Bridge has a vertical clearance in the drawbridges shall open promptly and open and closed position of unlimited [Docket No. USCG–2013–0828] fully for the passage of vessels when a and 4 feet, above mean high water, request to open is given in accordance respectively. Drawbridge Operation Regulation; Under this temporary deviation, the Upper Mississippi River, Hannibal, MO with the subpart. drawbridge will be operated under the The deviation period is from 7 a.m., AGENCY: Coast Guard, DHS. following schedule to facilitate January 7, 2014 to 5 p.m., February 14, superstructure repairs, beginning at 7 ACTION: Notice of deviation from 2014 when the draw span will remain a.m., on Saturday, November 2, 2013 drawbridge regulation. in the closed-to-navigation position. and ending at 7 p.m., on Sunday, SUMMARY: The Coast Guard has issued a During this time the bridge owner will November 3, 2013, the drawbridge will temporary deviation from the operating replace critical control components that open on signal every three hours on the schedule that governs the Hannibal are essential to the continued safe following schedule: on Saturday, Railroad Drawbridge across the Upper operation of the drawbridge. The bridge November 2nd at 7 a.m., 10 a.m., 1 p.m., Mississippi River, mile 309.9, at will not be able to open for emergencies 4 p.m., 7 p.m., 10 p.m. and on Sunday, Hannibal, Missouri. The deviation is and there is no immediate alternate November 3rd at 1 a.m., 4 a.m., 7 a.m., necessary to allow the bridge owner route for vessels to pass this section of 10 a.m., 1 p.m., 4 p.m. and 7 p.m.; will time to replace critical control the Upper Mississippi River. The Coast open on signal for hazardous material components that are essential to the Guard will also inform the users of the vessels with a one-hour advance notice continued safe operation of the by calling (757–547–3631); and will waterway through our Local and drawbridge. The work is scheduled in open for an emergency as soon as safely Broadcast Notices to Mariners of the the winter, when the impact on possible. In case of inclement weather, change in operating schedule for the navigation is minimal, instead of the alternate dates will be rescheduled bridge so that vessels can arrange their scheduling the work at other times in to weekend of November 9 and transits to minimize any impact caused the year, when river traffic is prevalent. November 10, 2013. The bridge will by the temporary deviation. This deviation allows the bridge to operate under its current operating remain in the closed-to-navigation Winter conditions on the Upper schedule at all other times. The Coast position for 39 days. Mississippi River coupled with the Guard has carefully reviewed bridge closure of Army Corps of Engineer’s DATES: This deviation is effective from opening logs and coordinated the Lock No. 18 (Mile 410.5 UMR) and Lock restrictions with commercial and 7 a.m., January 7, 2014 to 5 p.m., February 14, 2014. No. 22 (Mile 301.2 UMR) till 11 a.m., recreational waterway users. March 4, 2014 will preclude any Vessels able to pass under the bridge ADDRESSES: The docket for this significant navigation demands for the in the closed position may do so at deviation, [USCG–2013–0828], is drawspan opening. anytime and are advised to proceed available at http://www.regulations.gov. with caution. The drawbridge will be Type the docket number in the In accordance with 33 CFR 117.35(e), able to open for emergencies as soon as ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ the drawbridge must return to its regular safely possible. There is no immediate Click on Open Docket Folder on the line operating schedule immediately at the alternate route for vessels transiting this associated with this deviation. You may end of the effective period of this section of the AICW but vessels may also visit the Docket Management temporary deviation. This deviation pass before and after the closure each Facility in Room W12–140 on the from the operating regulations is day. The Coast Guard will also inform ground floor of the Department of authorized under 33 CFR 117.35.

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Dated: September 24, 2013. Management Plan for the Coastal in king mackerel from the closed zone Eric A. Washburn, Migratory Pelagic Resources of the Gulf that were harvested, landed ashore, and Bridge Administrator, Western Rivers. of Mexico and South Atlantic (FMP). sold prior to the closure and were held [FR Doc. 2013–25635 Filed 10–29–13; 8:45 am] The FMP was prepared by the Gulf of in cold storage by a dealer or processor BILLING CODE 9110–04–P Mexico and South Atlantic Fishery (50 CFR 622.384(e)(3)). Management Councils and is implemented under the authority of the Classification Magnuson-Stevens Fishery The Regional Administrator, DEPARTMENT OF COMMERCE Conservation and Management Act Southeast Region, NMFS, has National Oceanic and Atmospheric (Magnuson-Stevens Act) by regulations determined this temporary rule is Administration at 50 CFR part 622. necessary for the conservation and NMFS projected that the commercial management of Gulf king mackerel and 50 CFR Part 622 annual catch limit (ACL) (equal to the is consistent with the Magnuson- commercial quota) for king mackerel in Stevens Act and other applicable laws. [Docket No. 001005281–0369–02] the western zone of the Gulf EEZ would This action is taken under 50 CFR be reached on September 20, 2013, and RIN 0648–XC928 622.8(c) and is exempt from review published a temporary rule to close the under Executive Order 12866. Coastal Migratory Pelagic Resources western zone of the Gulf to commercial These measures are exempt from the of the Gulf of Mexico and South king mackerel fishing in the EEZ (78 FR procedures of the Regulatory Flexibility Atlantic; Reopening of the Commercial 58248). However, since that closure, the Act because the temporary rule is issued Harvest of Gulf King Mackerel in Science and Research Director has without opportunity for prior notice and Western Zone received additional landings data and comment. has determined that the commercial This action responds to the best AGENCY: National Marine Fisheries ACL (commercial quota) was not scientific information available. The Service (NMFS), National Oceanic and harvested prior to September 20, 2013. Assistant Administrator for Fisheries, Atmospheric Administration (NOAA), Therefore, in accordance with 50 CFR NOAA (AA), finds good cause to waive Commerce. 622.8(c), NMFS is reopening the the requirements to provide prior notice ACTION: Temporary rule; reopening. western zone of the Gulf to commercial and opportunity for public comment king mackerel fishing in the EEZ at pursuant to the authority set forth at 5 SUMMARY: NMFS reopens the 2013–2014 12:01 a.m., local time, on November 1, U.S.C. 553(b)(B) as such prior notice commercial sector for king mackerel in 2013, until 12:01 a.m., local time, on and opportunity for public comment is the western zone of the Gulf of Mexico November 3, 2013. unnecessary and contrary to the public (Gulf) exclusive economic zone (EEZ). The Gulf group king mackerel western interest. Such procedures are NMFS previously projected that the zone begins at the United States/Mexico unnecessary because NMFS previously commercial annual catch limit (ACL) border (near Brownsville, Texas) and determined the commercial ACL (equal to the commercial quota) for king continues to the boundary between the (commercial quota) for king mackerel in mackerel in the western zone of the Gulf eastern and western zones at 87°31.1′ W. the western zone of the Gulf EEZ would EEZ would be reached by September 20, long., which is a line directly south be reached by September 20, 2013, and 2013, and closed the western zone of the from the Alabama/Florida boundary. therefore, closed the commercial sector Gulf to commercial king mackerel After the commercial sector closes, no for king mackerel in the western zone of fishing in the EEZ at noon, local time, person aboard a vessel for which a the Gulf EEZ at noon, local time, on September 20, 2013, until 12:01 a.m., commercial permit for king mackerel September 20, 2013. However, updated local time, on July 1, 2014. However, has been issued, except for a person landings estimates indicate the updated landings estimates indicate the aboard a charter vessel or headboat, may commercial ACL (commercial quota) for commercial ACL (commercial quota) for fish for or retain Gulf group king king mackerel in the western zone of the king mackerel in the western zone of the mackerel in the EEZ in the closed zone Gulf EEZ has not been reached at this Gulf EEZ has not been reached at this (50 CFR 622.384(e)(1)). During the time, and therefore additional harvest is time. Therefore, NMFS is reopening the closure, a person aboard a vessel that available in order to achieve optimum western zone of the Gulf to commercial has a valid charter vessel/headboat yield. All that remains is to notify the king mackerel fishing in the EEZ at permit for coastal migratory pelagic fish public that additional harvest is 12:01 a.m., local time, on November 1, may continue to retain king mackerel in available under the established 2013, until 12:01 a.m., local time, on or from the closed zones or subzones commercial ACL (commercial quota) November 3, 2013. The intended effect under the bag and possession limits set and, therefore, the commercial sector for of this temporary rule is to maximize forth in 50 CFR 622.382(a)(1)(ii) and king mackerel in the western zone of the harvest benefits for the commercial (a)(2), provided the vessel is operating Gulf EEZ will reopen. sector for Gulf king mackerel in the as a charter vessel or headboat (50 CER Prior notice and an opportunity to western zone. 622.384(e)(2)). A charter vessel or headboat that also has a commercial comment is contrary to the public DATES: The reopening is effective 12:01 king mackerel permit is considered to be interest because king mackerel is a a.m., local time, November 1, 2013, operating as a charter vessel or headboat migratory species, making the harvest of until 12:01 a.m., local time, on when it carries a passenger who pays a the commercial ACL (commercial quota) November 3, 2013. fee or when there are more than three for the western zone of the Gulf EEZ FOR FURTHER INFORMATION CONTACT: persons aboard, including operator and time-sensitive. Reopening quickly will Steve Branstetter, 727–824–5305, email: crew. likely make additional king mackerel [email protected]. During the closure, king mackerel available to consumers and result in SUPPLEMENTARY INFORMATION: The from the closed zone, including those revenue increases to commercial fishery for coastal migratory pelagic fish harvested under the bag and possession vessels. (king mackerel, Spanish mackerel, and limits, may not be purchased or sold. For the aforementioned reasons, the cobia) is managed under the Fishery This prohibition does not apply to trade AA also finds good cause to waive the

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30-day delay in the effectiveness of this intended effect of the emergency that certain criteria are met: (1) The action under 5 U.S.C. 553(d)(3). measures is to prevent overfishing on public has had an opportunity to Authority: 16 U.S.C. 1801 et seq. GB yellowtail flounder and GOM cod, comment on the emergency regulation, and to incorporate the best available and (2) in the case of a Council Dated: October 24, 2013. science into the management of white recommendation for emergency action, Kelly Denit, hake. the Council is actively developing an Acting Deputy Director, Office of Sustainable FMP amendment or regulations to Fisheries, National Marine Fisheries Service. DATES: This rule is effective October 30, 2013, through April 30, 2014. address the emergency or overfishing on [FR Doc. 2013–25695 Filed 10–25–13; 11:15 am] The expiration date of the emergency a permanent basis. NMFS accepted BILLING CODE 3510–22–P measures for GB yellowtail flounder and public comment on the emergency white hake specifications, and GOM cod measures in the final rule through June 17, 2013, but no comments were DEPARTMENT OF COMMERCE carryover in the preamble of the final rule published May 3, 2013, (78 FR submitted. Because these extensions do not change the measures already in National Oceanic and Atmospheric 26172) is extended through April 30, place, we are not accepting additional Administration 2014. public comment on their extension, ADDRESSES: Copies of Framework 50, NMFS has determined that all the 50 CFR Part 648 associated emergency rules, and other necessary criteria have been met and, [Docket No. 130219149–3397–02] measures, the environmental assessment therefore, is extending these emergency (EA), its Regulatory Impact Review measures. RIN 0648–BC97 (RIR), and the Final Regulatory Flexibility Act (FRFA) analysis prepared 1. FY 2013 GB Yellowtail Flounder ABC Fisheries of the Northeastern United by the New England Fishery States; Northeast Multispecies The emergency specifications Management Council (Council) and extended through this final rule are the Fishery; Emergency Rule Extension, NMFS are available from John K. Georges Bank Yellowtail Flounder and revised GB yellowtail flounder catch Bullard, Regional Administrator, NMFS limits for FY 2013, as follows: A U.S. White Hake Catch Limits and GOM Cod Northeast Regional Office (NERO), 55 Carryover Revisions Overfishing Limit (OFL) of 882 mt; a Great Republic Drive, Gloucester, MA U.S. ABC of 215 mt; a total ACL of 208.5 AGENCY: National Marine Fisheries 01930. The FRFA analysis consists of mt; a groundfish sub-ACL of 116.8 mt; Service (NMFS), National Oceanic and the FRFA, public comments and a scallop fishery sub-ACL of 83.4 mt; a Atmospheric Administration (NOAA), responses, and the summary of impacts small-mesh fisheries sub-ACL of 4.0 mt; Commerce. and alternatives contained in the final and an Other ACL sub-component of 4.3 ACTION: Temporary final rule; rule for Framework 50, Associated mt. The initial emergency action emergency action extended. Emergency Rules, and Other Measures. modified GB yellowtail flounder catch The EA/RIR/FRFA is also accessible via limits from those originally proposed SUMMARY: This rule extends, pursuant to the Internet at: http:// based on a determination that the NMFS’s emergency authority in the www.nero.noaa.gov/sfd/sfdmulti.html. Framework 50 proposed catch limits Magnuson-Stevens Fishery FOR FURTHER INFORMATION CONTACT: were not based upon the Council’s Conservation and Management Act Melissa Hooper, Fishery Policy Analyst, Scientific and Statistical Committee (Magnuson-Stevens Act), the Georges (978) 281–9166, fax (978) 281–9135. (SSC) recommendation, were not Bank (GB) yellowtail flounder and white SUPPLEMENTARY INFORMATION: consistent with the best available hake specifications for fishing year (FY) scientific information, and had a high Background 2013 and the GOM cod sector carryover likelihood of resulting in overfishing. reduction that were published on May This temporary final rule extends the Although the Framework 50 final rule 3, 2013, which were implemented as revised GB yellowtail flounder and contained preliminary information emergency actions concurrently with white hake catch limits and GOM cod regarding the more specific components the Framework Adjustment (FW) 50 carryover implemented through of the groundfish sub-ACL (the division final rule under the Northeast (NE) emergency authority in the Magnuson- of the groundfish sub-ACL between Multispecies Fishery Management Plan Stevens Act, as published in the sectors and the common pool and the (FMP). These measures were scheduled Framework 50 final rule on May 3, Incidental Catch Total Allowable to expire on October 30, 2013. 2013, to maintain those measures Catches for common pool vessels), it did Specifically, this temporary rule through the end of FY 2013 (April 30, not implement the final specification of maintains the current Acceptable 2014). The May 3, 2013, final rule (78 these components (and this rule does Biological Catch (ABC) and Annual FR 26172) included detailed not need to address those aspects of the Catch Limit (ACL) for GB yellowtail information on the background, reasons, FMP). The components of the GB flounder and white hake, and the 1.85- and justification to revise through yellowtail flounder groundfish sub-ACL percent allowable carryover of unused emergency action, the GB yellowtail are specified in the final rule that FY 2012 GOM cod Annual Catch flounder and white hake catch limits adjusted the FY 2013 groundfish sub- Entitlement (ACE) for sectors for an from those originally proposed in the ACL components for all stocks (78 FR additional 183 days, i.e., through the Framework 50 proposed rule (78 FR 34928; June 11, 2013). end of FY 2013 (May 1, 2013, through 19368; March 29, 2013) and from the April 30, 2014). The need for the standard 10-percent allowable carryover 2. FY 2013 White Hake ABC emergency measures is unchanged, for GOM cod. That information is not The emergency specifications which is to establish FY 2013 catch repeated here. extended through this final rule are the limits for GB yellowtail flounder and Section 305(c) of the Magnuson- revised white hake catch limits for FY white hake based upon the best Stevens Act allows for the extension of 2013, as follows: A U.S. OFL of 5,462 available scientific information, and to an emergency action, which is mt; a U.S. ABC of 4,177 mt; a total ACL reduce available carryover of unused FY otherwise effective for up to 180 days, of 3,974 mt; a groundfish sub-ACL of 2012 GOM cod ACE for sectors. The for up to another 186 days, provided 3,849 mt; a state waters sub-component

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of 42 mt; and an Other ACL sub- this temporary rule extends, was exceed their allocations. For some component of 84 mt. NMFS modified determined to be significant for components of the fishery, this would the white hake catch limits from those purposes of E.O. 12866. trigger inseason accountability proposed and approved through The Framework 50 final rule measures, temporarily closing Framework 50 at the request of the including the emergency measures that productive fishing grounds to some Council, because more recent this temporary rule extends does not vessels and resulting in foregone yield assessment information became contain policies with Federalism or and economic losses that may negate available during rulemaking that ‘‘takings’’ implications as those terms any mitigating economic benefits of the are defined in E.O. 13132 and E.O. indicated an increase was warranted. original emergency action. Thus, even a 12630, respectively. The emergency action was intended to temporary gap in effectiveness could incorporate the best available scientific Because the original emergency rule have substantial economic impacts to information into the management of provided for public comment on these white hake and to help mitigate some of measures, it is not necessary to waive the fishing industry and severely the anticipated impacts of reductions to prior notice and comment procedures. disrupt operations. For all of these catch limits for other stocks. The Under 5 U.S.C. 553(d)(1), the Assistant reasons, a 30-day delay in the specific emergency action to increase Administrator for Fisheries finds good effectiveness of this rule is the white hake catch limits was at the cause to waive the 30-day delayed impracticable and contrary to the public request of the Council (Council motion effectiveness of this action. Because the interest. April 24, 2013), because the Council extension of these emergency measures A FRFA was prepared for the could not act quickly enough to revise merely continues regulations already in Framework 50 final rule and associated the catch limits on its own for FY 2013. place, it would be contrary to the public emergency measures as required by The Council is currently developing interest to allow the expiration of the section 604 of the Regulatory Flexibility revised GB yellowtail flounder and Framework 51, which would address Act, 5 U.S.C. 604, and is not repeated white hake catch limits and reduced the emergency on a permanent basis by here. The FRFA analyzed the effects of GOM cod carryover, or a gap in specifying white hake ABCs based on the emergency measures for the this recent assessment for FY 2014– effectiveness of these measures after October 29, 2013. As described more duration of the year in anticipation of 2015. this extension. A copy of the full As explained under Item 1, the fully in the original May 3, 2013, Framework 50 final rule contained emergency action (78 FR 26172), the analysis is available from NMFS (see preliminary information regarding the reasons justifying promulgation of the ADDRESSES). more specific components of the rule on an emergency basis make a The EA prepared for Framework 50 groundfish sub-ACL and the final delay in effectiveness contrary to the analyzed the impacts of the emergency distribution of these components are as public interest. The revised catch limits specifications for the duration of a full specified in the June 11, 2013, final and carryover are necessary to prevent year. Therefore, the impacts of this adjustment rule. overfishing on GB yellowtail flounder emergency action extension have been and GOM cod. If the revised GB 3. FY 2013 Sector Carryover for GOM analyzed, and are within the scope of yellowtail flounder ABC were allowed the Finding of No Significant Impact. Cod to expire, it would revert to the default This temporary rule extends the ABC specified in Framework 47, which List of Subjects in 50 CFR Part 648 emergency reduction to the amount of NMFS has determined would be likely unused GOM cod ACE that sectors were to result in overfishing and severe harm Fisheries, Fishing, Recordkeeping and allowed to carryover from FY 2012 to to the stock. Similarly, if the allowable reporting requirements. FY 2013 to 1.85 percent. NMFS GOM cod carryover were to revert to the Dated: October 23, 2013. determined, based on analysis, that if standard 10 percent of FY 2012 ACE, Alan D. Risenhoover, sectors carried over the full 10 percent total potential catch could exceed the Director, Office of Sustainable Fisheries, of their unused FY 2013 ACE for GOM OFL by 12 percent. This would represent a serious conservation and performing the functions and duties of the cod, it would increase the likelihood of Deputy Assistant Administrator for management threat to the GOM cod overfishing on this stock. Thus, through Regulatory Programs, National Marine the Framework 50 final rule, NMFS stock. Furthermore, a gap in the revised Fisheries Service. reduced the amount of allowable GOM GB yellowtail flounder catch limits and cod carryover to 1.85 percent of the GOM cod carryover due to a delay of For the reasons stated in the sectors’ FY 2012 ACE to ensure the total this temporary rule would severely preamble, 50 CFR part 648 is amended potential catch (ACL + carryover) did disrupt the fishery. The revised white as follows: not exceed the FY 2013 GOM cod OFL. hake catch limits were intended to As described above, no comments incorporate the most recent, best PART 648—FISHERIES OF THE were received on these measures. available scientific information into the NORTHEASTERN UNITED STATES management of this stock. Increasing Classification this catch limit was also intended to ■ 1. The authority citation for part 648 The Regional Administrator, mitigate the negative economic impacts continues to read as follows: Northeast Region, NMFS, has to the fishing industry from substantial determined that the emergency reductions in catch limits for other Authority: 16 U.S.C. 1801 et seq. measures extended by this temporary groundfish stocks that were necessary to § 648.87 [Amended] rule are necessary for the conservation prevent overfishing. If the revised white and management of the NE multispecies hake catch limits were to expire, they ■ 2. Section 648.87 is amended by fishery and are consistent with the would default to the lower catch limits suspending paragraph (b)(1)(i)(C). Magnuson-Stevens Act and other approved in Framework 50, which were [FR Doc. 2013–25720 Filed 10–29–13; 8:45 am] applicable law. based on outdated assessment The Framework 50 final rule, information. This could cause some BILLING CODE 3510–22–P including the emergency measures that fishery components to temporarily

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DEPARTMENT OF COMMERCE amounts at § 679.20(e) and (f) apply at Central Aleutian district (CAI) of the any time during a trip. Bering Sea and Aleutian Islands National Oceanic and Atmospheric management area (BSAI) by vessels Classification Administration participating in the BSAI trawl limited This action responds to the best access fishery. This action is necessary 50 CFR Part 679 available information recently obtained to prevent exceeding the 2013 total from the fishery. The Acting Assistant [Docket No. 121018563–3148–02] allowable catch (TAC) of Pacific ocean Administrator for Fisheries, NOAA, perch in this area allocated to vessels RIN 0648–XC946 (AA) finds good cause to waive the participating in the BSAI trawl limited requirement to provide prior notice and access fishery. Fisheries of the Exclusive Economic opportunity for public comment DATES: Effective 1200 hrs, Alaska local Zone Off Alaska; Atka Mackerel in the pursuant to the authority set forth at 5 Bering Sea and Aleutian Islands time (A.l.t.), October 25, 2013, through U.S.C. 553(b)(B) as such a requirement 2400 hrs, A.l.t., December 31, 2013. Management Area is impracticable and contrary to the FOR FURTHER INFORMATION CONTACT: public interest. This requirement is AGENCY: National Marine Fisheries Steve Whitney, 907–586–7269. Service (NMFS), National Oceanic and impracticable and contrary to the public interest as it would prevent NMFS from SUPPLEMENTARY INFORMATION: NMFS Atmospheric Administration (NOAA), manages the groundfish fishery in the Commerce. responding to the most recent fisheries data in a timely fashion and would BSAI exclusive economic zone ACTION: Temporary rule; closure. delay the closure of the Atka mackerel according to the Fishery Management Plan for Groundfish of the Bering Sea SUMMARY: NMFS is prohibiting directed directed fishery in the CAI for vessels and Aleutian Islands Management Area fishing for Atka mackerel in the Central participating in the BSAI trawl limited (FMP) prepared by the North Pacific Aleutian district (CAI) of the Bering Sea access fishery. NMFS was unable to Fishery Management Council under and Aleutian Islands management area publish a notice providing time for authority of the Magnuson-Stevens (BSAI) by vessels participating in the public comment because the most Fishery Conservation and Management BSAI trawl limited access fishery. This recent, relevant data only became Act. Regulations governing fishing by action is necessary to prevent exceeding available as of October 24, 2013. The U.S. vessels in accordance with the FMP the 2013 total allowable catch (TAC) of AA also finds good cause to waive the appear at subpart H of 50 CFR part 600 Atka mackerel in this area allocated to 30-day delay in the effective date of this and 50 CFR part 679. vessels participating in the BSAI trawl action under 5 U.S.C. 553(d)(3). This The 2013 TAC of Pacific ocean perch, limited access fishery. finding is based upon the reasons in the CAI, allocated to vessels DATES: Effective 1200 hrs, Alaska local provided above for waiver of prior notice and opportunity for public participating in the BSAI trawl limited time (A.l.t.), October 25, 2013, through access fishery was established as a 2400 hrs, A.l.t., December 31, 2013. comment. This action is required by § 679.20 directed fishing allowance of 616 metric FOR FURTHER INFORMATION CONTACT: and is exempt from review under tons by the final 2013 and 2014 harvest Steve Whitney, 907–586–7269. Executive Order 12866. specifications for groundfish in the SUPPLEMENTARY INFORMATION: NMFS BSAI (78 FR 13813, March 1, 2013). manages the groundfish fishery in the Authority: 16 U.S.C. 1801 et seq. In accordance with § 679.20(d)(1)(iii), BSAI exclusive economic zone Dated: October 25, 2013. the Regional Administrator finds that according to the Fishery Management Kelly Denit, this directed fishing allowance has been Plan for Groundfish of the Bering Sea Acting Deputy Director, Office of Sustainable reached. Consequently, NMFS is and Aleutian Islands Management Area Fisheries, National Marine Fisheries Service. prohibiting directed fishing for Pacific (FMP) prepared by the North Pacific [FR Doc. 2013–25671 Filed 10–25–13; 11:15 am] ocean perch in the CAI by vessels Fishery Management Council under BILLING CODE 3510–22–P participating in the BSAI trawl limited authority of the Magnuson-Stevens access fishery. Fishery Conservation and Management After the effective dates of this Act. Regulations governing fishing by DEPARTMENT OF COMMERCE closure, the maximum retainable U.S. vessels in accordance with the FMP amounts at § 679.20(e) and (f) apply at appear at subpart H of 50 CFR part 600 National Oceanic and Atmospheric any time during a trip. and 50 CFR part 679. Administration Classification The 2013 TAC of Atka mackerel, in the CAI, allocated to vessels 50 CFR Part 679 This action responds to the best available information recently obtained participating in the BSAI trawl limited [Docket No. 121018563–3148–02] access fishery was established as a from the fishery. The Acting Assistant directed fishing allowance of 664 metric RIN 0648–XC944 Administrator for Fisheries, NOAA, tons by the final 2013 and 2014 harvest (AA) finds good cause to waive the specifications for groundfish in the Fisheries of the Exclusive Economic requirement to provide prior notice and BSAI (78 FR 13813, March 1, 2013). Zone Off Alaska; Pacific Ocean Perch opportunity for public comment In accordance with § 679.20(d)(1)(iii), in the Bering Sea and Aleutian Islands pursuant to the authority set forth at 5 the Regional Administrator finds that Management Area U.S.C. 553(b)(B) as such a requirement this directed fishing allowance has been AGENCY: National Marine Fisheries is impracticable and contrary to the reached. Consequently, NMFS is Service (NMFS), National Oceanic and public interest. This requirement is prohibiting directed fishing for Atka Atmospheric Administration (NOAA), impracticable and contrary to the public mackerel in the CAI by vessels Commerce. interest as it would prevent NMFS from participating in the BSAI trawl limited ACTION: Temporary rule; closure. responding to the most recent fisheries access fishery. data in a timely fashion and would After the effective dates of this SUMMARY: NMFS is prohibiting directed delay the closure of the Pacific ocean closure, the maximum retainable fishing for Pacific ocean perch in the perch directed fishery in the CAI for

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vessels participating in the BSAI trawl and Aleutian Islands Management Area Dated: October 25, 2013. limited access fishery. NMFS was (FMP) prepared by the North Pacific Kelly Denit, unable to publish a notice providing Fishery Management Council under Acting Deputy Director, Office of Sustainable time for public comment because the authority of the Magnuson-Stevens Fisheries, National Marine Fisheries Service. most recent, relevant data only became Fishery Conservation and Management [FR Doc. 2013–25718 Filed 10–25–13; 4:15 pm] available as of October 24, 2013. The Act. Regulations governing fishing by BILLING CODE 3510–22–P AA also finds good cause to waive the U.S. vessels in accordance with the FMP 30-day delay in the effective date of this appear at subpart H of 50 CFR part 600 action under 5 U.S.C. 553(d)(3). This and 50 CFR part 679. DEPARTMENT OF COMMERCE finding is based upon the reasons provided above for waiver of prior The 2013 TAC of Pacific ocean perch, National Oceanic and Atmospheric notice and opportunity for public in the EAI, allocated to vessels Administration comment. participating in the BSAI trawl limited This action is required by § 679.20 access fishery was established as a 50 CFR Part 679 and is exempt from review under directed fishing allowance of 854 metric Executive Order 12866. tons by the final 2013 and 2014 harvest [Docket No. 121018563–3148–02] specifications for groundfish in the RIN 0648–XC945 Authority: 16 U.S.C. 1801 et seq. BSAI (78 FR 13813, March 1, 2013). Dated: October 25, 2013. In accordance with § 679.20(d)(1)(iii), Fisheries of the Exclusive Economic Kelly Denit, the Regional Administrator finds that Zone Off Alaska; Atka Mackerel in the Acting Deputy Director, Office of Sustainable this directed fishing allowance has been Bering Sea and Aleutian Islands Fisheries, National Marine Fisheries Service. reached. Consequently, NMFS is Management Area [FR Doc. 2013–25704 Filed 10–25–13; 4:15 pm] prohibiting directed fishing for Pacific AGENCY: National Marine Fisheries BILLING CODE 3510–22–P ocean perch in the EAI by vessels Service (NMFS), National Oceanic and participating in the BSAI trawl limited Atmospheric Administration (NOAA), access fishery. DEPARTMENT OF COMMERCE Commerce. After the effective dates of this ACTION: Temporary rule; closure. National Oceanic and Atmospheric closure, the maximum retainable Administration amounts at § 679.20(e) and (f) apply at SUMMARY: NMFS is prohibiting directed any time during a trip. fishing for Atka mackerel in the Bering 50 CFR Part 679 Sea subarea and Eastern Aleutian Classification [Docket No. 121018563–3148–02] district (BS/EAI) of the Bering Sea and This action responds to the best Aleutian Islands management area RIN 0648–XC943 available information recently obtained (BSAI) by vessels participating in the from the fishery. The Acting Assistant BSAI trawl limited access fishery. This Fisheries of the Exclusive Economic action is necessary to prevent exceeding Zone Off Alaska; Pacific Ocean Perch Administrator for Fisheries, NOAA, (AA) finds good cause to waive the the 2013 total allowable catch (TAC) of in the Bering Sea and Aleutian Islands Atka mackerel in this area allocated to Management Area requirement to provide prior notice and opportunity for public comment vessels participating in the BSAI trawl AGENCY: National Marine Fisheries pursuant to the authority set forth at 5 limited access fishery. Service (NMFS), National Oceanic and U.S.C. 553(b)(B) as such a requirement DATES: Effective 1200 hrs, Alaska local Atmospheric Administration (NOAA), is impracticable and contrary to the time (A.l.t.), October 25, 2013, through Commerce. public interest. This requirement is 2400 hrs, A.l.t., December 31, 2013. ACTION: Temporary rule; closure. impracticable and contrary to the public FOR FURTHER INFORMATION CONTACT: interest as it would prevent NMFS from Steve Whitney, 907–586–7269. SUMMARY: NMFS is prohibiting directed responding to the most recent fisheries SUPPLEMENTARY INFORMATION: NMFS fishing for Pacific ocean perch in the data in a timely fashion and would manages the groundfish fishery in the Eastern Aleutian district (EAI) of the delay the closure of the Pacific ocean BSAI exclusive economic zone Bering Sea and Aleutian Islands perch directed fishery in the EAI for according to the Fishery Management management area (BSAI) by vessels vessels participating in the BSAI trawl Plan for Groundfish of the Bering Sea participating in the BSAI trawl limited and Aleutian Islands Management Area access fishery. This action is necessary limited access fishery. NMFS was (FMP) prepared by the North Pacific to prevent exceeding the 2013 total unable to publish a notice providing Fishery Management Council under allowable catch (TAC) of Pacific ocean time for public comment because the authority of the Magnuson-Stevens perch in this area allocated to vessels most recent, relevant data only became Fishery Conservation and Management participating in the BSAI trawl limited available as of October 24, 2013. The Act. Regulations governing fishing by access fishery. AA also finds good cause to waive the 30-day delay in the effective date of this U.S. vessels in accordance with the FMP DATES: Effective 1200 hrs, Alaska local action under 5 U.S.C. 553(d)(3). This appear at subpart H of 50 CFR part 600 time (A.l.t.), October 25, 2013, through finding is based upon the reasons and 50 CFR part 679. 2400 hrs, A.l.t., December 31, 2013. provided above for waiver of prior The 2013 TAC of Atka mackerel, in FOR FURTHER INFORMATION CONTACT: notice and opportunity for public the BS/EAI, allocated to vessels Steve Whitney, 907–586–7269. comment. participating in the BSAI trawl limited SUPPLEMENTARY INFORMATION: NMFS access fishery was established as a manages the groundfish fishery in the This action is required by § 679.20 directed fishing allowance of 1,402 BSAI exclusive economic zone and is exempt from review under metric tons by the final 2013 and 2014 according to the Fishery Management Executive Order 12866. harvest specifications for groundfish in Plan for Groundfish of the Bering Sea Authority: 16 U.S.C. 1801 et seq. the BSAI (78 FR 13813, March 1, 2013).

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In accordance with § 679.20(d)(1)(iii), requirement to provide prior notice and AA also finds good cause to waive the the Regional Administrator finds that opportunity for public comment 30-day delay in the effective date of this this directed fishing allowance has been pursuant to the authority set forth at 5 action under 5 U.S.C. 553(d)(3). This reached. Consequently, NMFS is U.S.C. 553(b)(B) as such a requirement finding is based upon the reasons prohibiting directed fishing for Atka is impracticable and contrary to the provided above for waiver of prior mackerel in the BS/EAI by vessels public interest. This requirement is notice and opportunity for public participating in the BSAI trawl limited impracticable and contrary to the public comment. access fishery. interest as it would prevent NMFS from This action is required by § 679.20 After the effective dates of this responding to the most recent fisheries and is exempt from review under closure, the maximum retainable data in a timely fashion and would Executive Order 12866. amounts at § 679.20(e) and (f) apply at any time during a trip. delay the closure of the Atka mackerel Authority: 16 U.S.C. 1801 et seq. directed fishery in the BS/EAI for Classification vessels participating in the BSAI trawl Dated: October 25, 2013. This action responds to the best limited access fishery. NMFS was Kelly Denit, available information recently obtained unable to publish a notice providing Acting Deputy Director, Office of Sustainable from the fishery. The Acting Assistant time for public comment because the Fisheries, National Marine Fisheries Service. Administrator for Fisheries, NOAA, most recent, relevant data only became [FR Doc. 2013–25721 Filed 10–25–13; 4:15 pm] (AA) finds good cause to waive the available as of October 24, 2013. The BILLING CODE 3510–22–P

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Proposed Rules Federal Register Vol. 78, No. 210

Wednesday, October 30, 2013

This section of the FEDERAL REGISTER • Hand Delivery: U.S. Department of proposed AD because of those contains notices to the public of the proposed Transportation, Docket Operations, M– comments. issuance of rules and regulations. The 30, West Building Ground Floor, Room We will post all comments we purpose of these notices is to give interested W12–140, 1200 New Jersey Avenue SE., receive, without change, to http:// persons an opportunity to participate in the Washington, DC 20590, between 9 a.m. regulations.gov, including any personal rule making prior to the adoption of the final information you provide. We will also rules. and 5 p.m., Monday through Friday, except Federal holidays. post a report summarizing each For service information identified in substantive verbal contact we receive DEPARTMENT OF TRANSPORTATION this proposed AD, contact Britten- about this proposed AD. Norman Aircraft Limited, Commodore Discussion Federal Aviation Administration House, Mountbatten Business Centre, Millbrook Road East, Southampton The European Aviation Safety Agency 14 CFR Part 39 SO15 1HY, United Kingdom; telephone: (EASA), which is the Technical Agent +44 20 3371 4000; fax: +44 20 3371 for the Member States of the European [Docket No. FAA–2013–0924; Directorate Community, has issued EASA AD No.: Identifier 2013–CE–032–AD] 4001; email: [email protected]; Internet: http://www.britten- 2013–0215, dated September 16, 2013 RIN 2120–AA64 norman.com/customer-support/. You (referred to after this as ‘‘the MCAI’’), to may review this referenced service correct an unsafe condition for the Airworthiness Directives; B–N Group information at the FAA, Small Airplane specified products. The MCAI states: Ltd. Airplanes Directorate, 901 Locust, Kansas City, Britten-Norman Aircraft Limited has been AGENCY: Federal Aviation Missouri 64106. For information on the made aware of two occurrences where a Administration (FAA), Department of availability of this material at the FAA, failure of engine control cable assemblies has Transportation (DOT). call (816) 329–4148. caused engine control difficulties. In both reported cases, the cable sliding end ACTION: Notice of proposed rulemaking Examining the AD Docket assemblies were in poor condition and in (NPRM). You may examine the AD docket on both cases, an incorrect end-fitting was SUMMARY: We propose to adopt a new the Internet at http:// installed which may have contributed to the airworthiness directive (AD) for B–N failures. www.regulations.gov; or in person at the This condition, if not detected and Group Ltd. Models BN–2, BN–2A, BN– Docket Management Facility between 9 corrected, could result in reduced engine 2A–2, BN–2A–3, BN–2A–6, BN–2A–8, a.m. and 5 p.m., Monday through control, possibly resulting in reduced control BN–2A–9, BN–2A–20, BN–2A–21, BN– Friday, except Federal holidays. The AD of the aeroplane. 2A–26, BN–2A–27, BN–2B–20, BN–2B– docket contains this proposed AD, the To address this potential unsafe condition, 21, BN–2B–26, BN–2B–27, BN2A MK. regulatory evaluation, any comments Britten-Norman Aircraft have issued Service III, BN2A MK. III–2, and BN2A MK. III– received, and other information. The Bulletin (SB) 334 to provide inspection 3 airplanes. This proposed AD results street address for the Docket Office instructions. from mandatory continuing (telephone (800) 647–5527) is in the For the reason described above, this AD requires a one-time inspection and functional airworthiness information (MCAI) ADDRESSES section. Comments will be originated by an aviation authority of test of the engine control cables and, available in the AD docket shortly after depending on findings, replacement of the another country to identify and correct receipt. cables. an unsafe condition on an aviation FOR FURTHER INFORMATION CONTACT: product. The MCAI describes the unsafe You may examine the MCAI on the Taylor Martin, Aerospace Engineer, Internet at http://www.regulations.gov condition as damage of the cable sliding FAA, Small Airplane Directorate, 901 end assembly and installation of the by searching for and locating it in Locust, Room 301, Kansas City, Docket No. FAA–2013–0924. incorrect end fitting on engine control Missouri 64106; telephone: (816) 329– cable assemblies. We are issuing this 4138; fax: (816) 329–4090; email: Relevant Service Information proposed AD to require actions to [email protected]. address the unsafe condition on these Britten-Norman Aircraft Limited has SUPPLEMENTARY INFORMATION: products. issued Service Bulletin No. SB 334, Issue 1, dated August 30, 2013. The Comments Invited DATES: We must receive comments on actions described in this service this proposed AD by December 16, We invite you to send any written information are intended to correct the 2013. relevant data, views, or arguments about unsafe condition identified in the ADDRESSES: You may send comments by this proposed AD. Send your comments MCAI. to an address listed under the any of the following methods: FAA’s Determination and Requirements • Federal eRulemaking Portal: Go to ADDRESSES section. Include ‘‘Docket No. of the Proposed AD http://www.regulations.gov. Follow the FAA–2013–0924; Directorate Identifier instructions for submitting comments. 2013–CE–032–AD’’ at the beginning of This product has been approved by • Fax: (202) 493–2251. your comments. We specifically invite the aviation authority of another Mail: U.S. Department of comments on the overall regulatory, country, and is approved for operation Transportation, Docket Operations, M– economic, environmental, and energy in the United States. Pursuant to our 30, West Building Ground Floor, Room aspects of this proposed AD. We will bilateral agreement with this State of W12–140, 1200 New Jersey Avenue SE., consider all comments received by the Design Authority, they have notified us Washington, DC 20590. closing date and may amend this of the unsafe condition described in the

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MCAI and service information (2) Is not a ‘‘significant rule’’ under (f) Actions and Compliance referenced above. We are proposing this the DOT Regulatory Policies and Unless already done, do the following AD because we evaluated all Procedures (44 FR 11034, February 26, actions: information and determined the unsafe 1979), (1) Within the next 6 months after the condition exists and is likely to exist or (3) Will not affect intrastate aviation effective date of this AD, do a one-time develop on other products of the same in Alaska, and inspection of the engine control cable type design. (4) Will not have a significant assemblies, part number (P/N) 137835, P/N economic impact, positive or negative, 172449–1, P/N 17250, and P/N 172451, and Costs of Compliance surrounding areas for damage (cracking, on a substantial number of small entities distortion, corrosion) and correct cable end- We estimate that this proposed AD under the criteria of the Regulatory fitting and to assure the wire locking is intact will affect 101 products of U.S. registry. Flexibility Act. following section 6 ACTION of Britten- We also estimate that it would take List of Subjects in 14 CFR Part 39 Norman Aircraft Limited Service Bulletin No. about 1 work-hour per product to SB 334, Issue 1, dated August 30, 2013. comply with the basic requirements of Air transportation, Aircraft, Aviation (2) If no discrepancies are found during the this proposed AD. The average labor safety, Incorporation by reference, inspection required in paragraph (f)(1) of this Safety. AD, inspect the control linkages for proper rate is $85 per work-hour. adjustment and, before further flight, make Based on these figures, we estimate The Proposed Amendment any necessary changes following section 6 the cost of the proposed AD on U.S. Accordingly, under the authority ACTION of Britten-Norman Aircraft Limited operators to be $8,585, or $85 per delegated to me by the Administrator, Service Bulletin No. SB 334, Issue 1, dated product. August 30, 2013. the FAA proposes to amend 14 CFR part (3) If any discrepancies are found during In addition, we estimate that any 39 as follows: necessary follow-on actions would take the inspection required in paragraph (f)(1) of this AD and/or the control linkages cannot be about 10 work-hours and require parts PART 39—AIRWORTHINESS properly adjusted as specified in paragraph costing $4,800 (4 per airplane), for a cost DIRECTIVES (f)(2) of this AD, before further flight, replace of $5,650 per product. We have no way the engine control cable assembly with a of determining the number of products ■ 1. The authority citation for part 39 serviceable unit following section 6 ACTION that may need these actions. continues to read as follows: of Britten-Norman Aircraft Limited Service Authority: 49 U.S.C. 106(g), 40113, 44701. Bulletin No. SB 334, Issue 1, dated August Authority for This Rulemaking 30, 2013. Title 49 of the United States Code § 39.13 [Amended] (4) After the effective date of this AD, do not install on any airplane engine control specifies the FAA’s authority to issue ■ 2. The FAA amends § 39.13 by adding the following new AD: cable assemblies, part number (P/N) 137835, rules on aviation safety. Subtitle I, P/N 172449–1, P/N 17250, and P/N 172451, section 106, describes the authority of B–N Group Ltd.: Docket No. FAA–2013– unless they are new or have been inspected the FAA Administrator. ‘‘Subtitle VII: 0924; Directorate Identifier 2013–CE– as required in paragraphs (f)(1) and (f)(2) of Aviation Programs,’’ describes in more 032–AD. this AD and found free of any discrepancies detail the scope of the Agency’s (a) Comments Due Date and have proper adjustment. authority. We must receive comments by December (g) Other FAA AD Provisions We are issuing this rulemaking under 16, 2013. The following provisions also apply to this the authority described in ‘‘Subtitle VII, (b) Affected ADs AD: Part A, Subpart III, Section 44701: (1) Alternative Methods of Compliance General requirements.’’ Under that None. (AMOCs): The Manager, Standards Office, section, Congress charges the FAA with (c) Applicability FAA, has the authority to approve AMOCs for this AD, if requested using the procedures promoting safe flight of civil aircraft in This AD applies to B–N Group Ltd. Models found in 14 CFR 39.19. Send information to air commerce by prescribing regulations BN–2, BN–2A, BN–2A–2, BN–2A–3, BN–2A– ATTN: Taylor Martin, Aerospace Engineer, for practices, methods, and procedures 6, BN–2A–8, BN–2A–9, BN–2A–20, BN–2A– the Administrator finds necessary for 21, BN–2A–26, BN–2A–27, BN–2B–20, BN– FAA, Small Airplane Directorate, 901 Locust, safety in air commerce. This regulation 2B–21, BN–2B–26, BN–2B–27, BN2A MK. III, Room 301, Kansas City, Missouri 64106; BN2A MK. III–2, and BN2A MK. III–3 telephone: (816) 329–4138; fax: (816) 329– is within the scope of that authority 4090; email: [email protected]. Before because it addresses an unsafe condition airplanes, all serial numbers, certificated in any category. using any approved AMOC on any airplane that is likely to exist or develop on to which the AMOC applies, notify your products identified in this rulemaking (d) Subject appropriate principal inspector (PI) in the action. Air Transport Association of America FAA Flight Standards District Office (FSDO), (ATA) Code 76: Engine Controls. or lacking a PI, your local FSDO. Regulatory Findings (2) Airworthy Product: For any requirement (e) Reason We determined that this proposed AD in this AD to obtain corrective actions from would not have federalism implications This AD was prompted by mandatory a manufacturer or other source, use these actions if they are FAA-approved. Corrective under Executive Order 13132. This continuing airworthiness information (MCAI) originated by an aviation authority of another actions are considered FAA-approved if they proposed AD would not have a country to identify and correct an unsafe are approved by the State of Design Authority substantial direct effect on the States, on condition on an aviation product. The MCAI (or their delegated agent). You are required the relationship between the national describes the unsafe condition as damage of to assure the product is airworthy before it Government and the States, or on the the cable sliding end assembly and is returned to service. installation of the incorrect end fitting on distribution of power and (h) Related Information responsibilities among the various engine control cable assemblies. We are levels of government. issuing this AD to detect and correct damage Refer to MCAI European Aviation Safety of the cable sliding end assembly (cracking, Agency (EASA) AD No.: 2013–0215, dated For the reasons discussed above, I distortion, corrosion) and incorrect end September 16, 2013, for related information. certify this proposed regulation: fittings on the engine control assemblies, You may examine the MCAI on the Internet (1) Is not a ‘‘significant regulatory which could lead to reduced engine control at http://www.regulations.gov by searching action’’ under Executive Order 12866, with consequent loss of control. for and locating it in Docket No. FAA–2013–

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0924. For service information related to this this SIP revision is a prerequisite for received will be included in the public AD, contact Britten-Norman Aircraft Limited, EPA’s consideration of an amendment docket without change and may be Commodore House, Mountbatten Business to the regulations to remove the made available online at Centre, Millbrook Road East, Southampton aforementioned portions of the Triangle www.regulations.gov, including any SO15 1HY, United Kingdom; telephone: +44 20 3371 4000; fax: +44 20 3371 4001; email: Area from the list of areas that are personal information provided, unless [email protected]; Internet: http:// currently subject to the Federal 7.8 psi the comment includes information www.britten-norman.com/customer-support/. RVP requirements. In addition, EPA is claimed to be Confidential Business You may review this referenced service also proposing to approve changes to Information (CBI) or other information information at the FAA, Small Airplane the motor vehicle emission budgets whose disclosure is restricted by statute. Directorate, 901 Locust, Kansas City, (MVEBs) used in the 1997 8-hour ozone Do not submit through Missouri 64106. For information on the maintenance plan for the Triangle Area. www.regulations.gov or email, availability of this material at the FAA, call The use of new models and the information that you consider to be CBI (816) 329–4148. relaxation of the RVP requirement has or otherwise protected. The Issued in Kansas City, Missouri, on resulted in a revised safety margin www.regulations.gov Web site is an October 23, 2013. which North Carolina is reallocating ‘‘anonymous access’’ system, which Earl Lawrence, among the MVEBs associated the means EPA will not know your identity Manager, Small Airplane Directorate, Aircraft Maintenance Plan. EPA has or contact information unless you Certification Service. preliminarily determined that North provide it in the body of your comment. [FR Doc. 2013–25703 Filed 10–29–13; 8:45 am] Carolina’s March 27, 2013, SIP revision If you send an email comment directly BILLING CODE 4910–13–P with respect to the changes to the to EPA without going through modeling and associated technical www.regulations.gov, your email demonstration associated with the address will be automatically captured ENVIRONMENTAL PROTECTION State’s request for the removal of the and included as part of the comment AGENCY Federal RVP requirements, and with that is placed in the public docket and respect to the updated MVEBs, is made available on the Internet. If you 40 CFR Part 52 consistent with the applicable submit an electronic comment, EPA provisions of the Clean Air Act (CAA or recommends that you include your EPA–R04–OAR–2013–0563; FRL–9902– Act). Should EPA decide to remove the name and other contact information in 18–Region 4] subject portions of the Triangle Area the body of your comment and with any from those areas subject to the 7.8 psi disk or CD–ROM you submit. If EPA Approval and Promulgation of Federal RVP requirements, such action cannot read your comment due to Implementation Plans; North Carolina: will occur in a subsequent rulemaking. technical difficulties and cannot contact Non-Interference Demonstration for DATES: Written comments must be you for clarification, EPA may not be Removal of Federal Low-Reid Vapor received on or before November 29, able to consider your comment. Pressure Requirement for the Raleigh- 2013. Electronic files should avoid the use of Durham-Chapel Hill Area special characters, any form of ADDRESSES: Submit your comments, encryption, and be free of any defects or AGENCY: Environmental Protection identified by Docket ID Number EPA– viruses. For additional information Agency (EPA). R04–OAR–2013–0563 by one of the about EPA’s public docket visit the EPA ACTION: Proposed rule. following methods: Docket Center homepage at http:// 1. www.regulations.gov: Follow the www.epa.gov/epahome/dockets.htm. SUMMARY: EPA is proposing to approve on-line instructions for submitting the State of North Carolina’s March 27, comments. Docket: All documents in the 2013, State Implementation Plan (SIP) 2. Email: R4–[email protected]. electronic docket are listed in the revision to the State’s approved 3. Fax: (404) 562–9019. www.regulations.gov index. Although Maintenance Plan for the Raleigh- 4. Mail: EPA–R04–OAR–2013–0563, listed in the index, some information is Durham-Chapel Hill (Triangle) 1997 8- Regulatory Development Section, Air not publicly available, i.e., CBI or other hour Ozone Maintenance Area. Planning Branch, Air, Pesticides and information whose disclosure is Specifically, North Carolina’s revision, Toxics Management Division, U.S. restricted by statute. Certain other including updated modeling, shows that Environmental Protection Agency, material, such as copyrighted material, the Triangle Area would continue to Region 4, 61 Forsyth Street SW., is not placed on the Internet and will be maintain the 1997 8-hour ozone Atlanta, Georgia 30303–8960. publicly available only in hard copy standard if the currently applicable 5. Hand Delivery or Courier: Ms. form. Publicly available docket Federal Reid Vapor Pressure (RVP) Lynorae Benjamin, Chief, Regulatory materials are available either standard for gasoline from 7.8 pounds Development Section, Air Planning electronically in www.regulations.gov or per square inch (psi) were modified to Branch, Air, Pesticides and Toxics in hard copy at the Regulatory 9.0 psi for three portions (Wake and Management Division, U.S. Development Section, Air Planning Durham Counties, and a portion of Environmental Protection Agency, Branch, Air, Pesticides and Toxics Granville County) of the ‘‘Triangle Region 4, 61 Forsyth Street SW., Management Division, U.S. Area’’ of North Carolina during the Atlanta, Georgia 30303–8960. Such Environmental Protection Agency, high-ozone season. The State has deliveries are only accepted during the Region 4, 61 Forsyth Street SW., included a technical demonstration Regional Office’s normal hours of Atlanta, Georgia 30303–8960. EPA with the revision to demonstrate that a operation. The Regional Office’s official requests that if at all possible, you less-stringent RVP standard of 9.0 psi in hours of business are Monday through contact the person listed in the FOR these areas would not interfere with Friday, 8:30 a.m. to 4:30 p.m., excluding FURTHER INFORMATION CONTACT section to continued maintenance of the 1997 8- Federal holidays. schedule your inspection. The Regional hour Ozone National Ambient Air Instructions: Direct your comments to Office’s official hours of business are Quality Standards (NAAQS) or any Docket ID No. EPA–R04–OAR–2013– Monday through Friday, 8:30 a.m. to other applicable standard. Approval of 0563. EPA’s policy is that all comments 4:30 p.m., excluding federal holidays.

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FOR FURTHER INFORMATION CONTACT: would not interfere with other redesignation request for the 1-hour Sean Lakeman of the Regulatory applicable requirements. ozone Triangle Area did not, however, Development Section, in the Air The new modeling conducted by include a request for the Area to be Planning Branch, Air, Pesticides and North Carolina to account for the removed from the list of areas subject to Toxics Management Division, U.S. proposed relaxation of the applicable the 7.8 psi RVP standard. As such, the Environmental Protection Agency, RVP standard in a portion of the 7.8 RVP requirement remained in place Region 4, 61 Forsyth Street SW., Triangle Area also results in changes to for Durham and Wake Counties, and the Atlanta, Georgia 30303–8960. Mr. the safety margin associated with the Dutchville Township portion of Lakeman may be reached by phone at maintenance plan.2 As such, the North Granville County when the Triangle (404) 562–9043, or via electronic mail at Carolina revision includes a reallocation Area was designated nonattainment for [email protected]. of the safety margin among the NOx the 1997 8-hour ozone NAAQS. Under SUPPLEMENTARY INFORMATION: MVEBs for the Triangle Area. EPA is the 1997 8-hour ozone NAAQS, the also proposing approval of this revision. Triangle Area was expanded from Table of Contents This preamble is hereafter organized Durham and Wake Counties, and the I. What is being proposed? into five parts. Section II provides the Dutchville Township portion of II. What is the background of the Triangle background of the Triangle Area Granville County, to also include Area? designation status with respect to the Franklin, Johnston, Orange, and Person III. What is the history of the gasoline various Ozone NAAQS. Section III Counties, the remainder of Granville volatility requirement? County and Baldwin, Center, New Hope IV. What are the section 110(l) requirements? describes the applicable history of V. What is EPA’s analysis of North Carolina’s federal gasoline regulation. Section IV and Williams Townships in Chatham submittal? provides the Agency’s policy regarding County. See 69 FR 23857. In 2007, the VI. Mobile Source Inventories and Motor relaxation of the volatility standards. Triangle Area was redesignated to Vehicle Emission Budgets Update Section V provides EPA’s analysis of the attainment for the 1997 8-hour ozone VII. Proposed Action information submitted by North NAAQS. See 72 FR 72948, December 26, VIII. Statutory and Executive Order Reviews Carolina to support a relaxation of the 2007. The Triangle Area was later I. What is being proposed? more stringent volatility standard in the designated as attainment for the 2008 8- Triangle Area. Finally, Section VI hour ozone NAAQS. See 77 FR 30088, The Triangle Area in North Carolina describes the changes to the MVEBs May 21, 2012. is currently designated attainment for associated with Maintenance Plan for the 1997 8-hour ozone NAAQS. The III. What is the history of the gasoline the Triangle Area and provides EPA’s Area was redesignated from volatility requirement? analysis regarding the proposed nonattainment of the 1997 8-hour ozone revision. On August 19, 1987 (52 FR 31274), NAAQS on December 26, 2007. See 72 EPA determined that gasoline FR 72948. This rulemaking proposes to II. What is the background of the nationwide had become increasingly approve a revision to the 1997 8-hour Triangle Area? volatile, causing an increase in ozone Maintenance Plan for the Triangle In 1991, the Triangle Area was evaporative emissions from gasoline- Area submitted by the North Carolina designated as a moderate nonattainment powered vehicles and equipment. Department of Environment and Natural area pursuant to the 1-hour ozone Evaporative emissions from gasoline, Resources (NC DENR). Specifically, EPA NAAQS. See 56 FR 56694 (November 6, referred to as volatile organic is proposing to approve changes to the 1991). Under the 1-hour ozone NAAQS, compounds (VOC), are precursors to the maintenance plan, including updated the Triangle nonattainment area was formation of tropospheric ozone and modeling, that show that the Triangle composed of Durham and Wake contribute to the nation’s ground-level Area can continue to maintain the 1997 Counties, and the Dutchville Township ozone problem. Exposure to ground- ozone standard without reliance on portion of Granville County. Among the level ozone can reduce lung function emission reductions based upon the use requirements applicable to (thereby aggravating asthma or other of gasoline with an RVP of 7.8 psi in any nonattainment areas for the 1-hour respiratory conditions), increase of the Triangle Area counties during the ozone NAAQS was the requirement to susceptibility to respiratory infection, high ozone season—June 1 through meet certain volatility standards (known and may contribute to premature death September 15.1 EPA is also proposing to in people with heart and lung disease. conclude that the new modeling as Reid Vapor Pressure or RVP) for gasoline sold commercially. See 55 FR The most common measure of fuel demonstrates that the area would volatility that is useful in evaluating 23658 (June 11, 1990). As discussed in continue to attain the 1997 8-hour ozone gasoline evaporative emissions is RVP. greater detail below, as part of the RVP standard with the use of gasoline with Under section 211(c) of CAA, EPA requirements associated with its an RVP of 9.0 psi throughout the promulgated regulations on March 22, nonattainment designation, gasoline Triangle Area during the high ozone 1989 (54 FR 11868), that set maximum sold in the Triangle 1-hour season. Consistent with section 110(l) of limits for the RVP of gasoline sold nonattainment area could not exceed 7.8 the Act, EPA also proposes to conclude during the high ozone season. These psi RVP during the high-ozone season that the use of gasoline with an RVP of regulations constituted Phase I of a two- months. 9.0 psi throughout the Maintenance phase nationwide program, which was Following implementation of the 7.8 Plan Areas during the high ozone season designed to reduce the volatility of psi RVP requirement in the Triangle commercial gasoline during the high Area, on April 18, 1994, the Area was 1 As discussed further below, a separate ozone season. On June 11, 1990 (55 FR redesignated to attainment for the 1- rulemaking is required for relaxation of the current 23658), EPA promulgated more requirement to use gasoline with an RVP of 7.8 psi hour ozone standard, based on 1989– stringent volatility controls as Phase II in the Triangle Area. While EPA evaluates the 1992 ambient air quality monitoring approvability of North Carolina’s revision to the of the volatility control program. These data. See 59 FR 18300. North Carolina’s maintenance plan pursuant to section 110(l), the requirements established maximum decision regarding removal of Federal RVP requirements pursuant to section 211(h) in the 2 In addition to a less stringent RVP standard, the RVP standards of 9.0 psi or 7.8 psi Triangle Area is made at the discretion of the new modeling also utilizes updated models for on- (depending on the State, the month, and Administrator. road and off-road mobile emission sources. the area’s initial ozone attainment

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designation with respect to the 1-hour state to make a showing, pursuant to circumstances of each SIP revision. EPA ozone NAAQS during the high ozone section 175A of the Act, that the area is interprets 110(l) as applying to all season). capable of maintaining attainment for NAAQS that are in effect, including The 1990 CAA Amendments the ozone NAAQS for ten years after those that have been promulgated but established a new section, 211(h), to redesignation. Depending on the area’s for which the EPA has not yet made address fuel volatility. Section 211(h) circumstances, this maintenance plan designations. The specific elements of requires EPA to promulgate regulations will either demonstrate that the area is the 110(l) analysis contained in the SIP making it unlawful to sell, offer for sale, capable of maintaining attainment for revision depend on the circumstances dispense, supply, offer for supply, ten years without the more stringent and emissions analyses associated with transport, or introduce into commerce volatility standard or that the more that revision. EPA’s analysis of North gasoline with an RVP level in excess of stringent volatility standard may be Carolina’s March 27, 2013, SIP revision, 9.0 psi during the high ozone season. necessary for the area to maintain its including review of section 110(l) Section 211(h) prohibits EPA from attainment with the ozone NAAQS. requirements is provided below. establishing a volatility standard more Therefore, in the context of a request for Finally, EPA notes that this stringent than 9.0 psi in an attainment redesignation, EPA will not relax the rulemaking is only proposing to approve area, except that we may impose a lower volatility standard unless the state the State’s revision to its existing (more stringent) standard in any former requests a relaxation and the maintenance plan for the Triangle Area ozone nonattainment area redesignated maintenance plan demonstrates, to the showing that the area can continue to to attainment. satisfaction of EPA, that the area will maintain the standard without relying On December 12, 1991 (56 FR 64704), maintain attainment for ten years upon gasoline with an RVP of 7.8 psi EPA modified the Phase II volatility without the need for the more stringent being sold in the Triangle area during regulations to be consistent with section volatility standard. As noted above, the high ozone season. Consistent with 211(h) of the CAA. The modified however, North Carolina did not request CAA section 211(h) and the Phase II regulations prohibited the sale of relaxation of the applicable 7.8 psi RVP volatility regulations a separate gasoline with an RVP above 9.0 psi in standard when the Triangle Area was rulemaking is required for relaxation of all areas designated attainment for redesignated to attainment for the either the current requirement to use gasoline ozone, beginning in 1992. For areas the 1-hour or the 1997 8-hour ozone with an RVP of 7.8 psi in the Triangle designated as nonattainment, the NAAQS. Rather, North Carolina is now area.4 regulations retained the original Phase II seeking to relax the 7.8 psi RVP V. What is EPA’s analysis of North standards published on June 11, 1990 standard after the Triangle Area has Carolina’s submittal? (55 FR 23658). been redesignated to attainment for the As stated in the preamble to the Phase 1997 8-hour ozone NAAQS. a. Overall Preliminary Non-Interference II volatility controls and reiterated in Accordingly, the original modeling and Analyses Conclusions for North the proposed change to the volatility maintenance demonstration supporting Carolina’s Request for the Revision of standards published in 1991, EPA will the 1997 8-hour ozone maintenance the Maintenance Plan rely on states to initiate changes to plan must be revised to reflect As discussed above, on March 27, EPA’s volatility program that they continued attainment under the relaxed 2013, NC DENR submitted a revision to believe will enhance local air quality 9.0 psi RVP standard that the State has the existing maintenance plan for the and/or increase the economic efficiency requested. Triangle 1997 8-hour ozone of the program within the limits of CAA maintenance area. Specifically, NC section 211(h).3 In those rulemakings, IV. What are the section 110(l) requirements? DENR revised the modeling for on-road EPA explained that the Governor of a mobile, off-road mobile, and area source State may petition EPA to set a volatility Section 110(l) requires that a revision emissions. The modeling was revised to standard less stringent than 7.8 psi for to the SIP not interfere with any show the emission changes that would some month or months in a applicable requirement concerning result from relaxing the gasoline RVP nonattainment area. The petition must attainment and reasonable further requirement from 7.8 psi to 9.0 psi for demonstrate such a change is progress (RFP) (as defined in section the Triangle Area during the high ozone appropriate because of a particular local 171), or any other applicable season. North Carolina’s March 27, economic impact and that sufficient requirement of the Act. EPA’s criterion 2013, SIP revision also included an alternative programs are available to for determining the approvability of evaluation of the impact that the achieve attainment and maintenance of North Carolina’s March 27, 2013, SIP removal of the 7.8 psi RVP requirement the 1-hour ozone NAAQS. A current revision is whether this requested action would have on maintenance of the 1997 listing of the RVP requirements for complies with section 110(l) of the and 2008 ozone standards and on other CAA. Because the modeling associated states can be found on EPA’s Web site applicable NAAQS. For the purposes of with the current maintenance plan for at: http://www.epa.gov/otaq/fuels/ this proposed change to the applicable North Carolina is premised in part upon gasolinefuels/volatility/standards.htm. RVP requirement, EPA is making the the 7.8 psi RVP requirements, a request As explained in the December 12, preliminary determination that the to revise the maintenance plan 1991 (56 FR 64704), Phase II relevant NAAQS 5 for consideration in modeling to no longer rely on the 7.8 psi rulemaking, EPA believes that the non-interference demonstration RVP requirement is subject to the relaxation of an applicable RVP required by section 110(l) of the CAA standard in a nonattainment area is best requirements of CAA section 110(l). Therefore, the State must demonstrate accomplished in conjunction with the 4 While EPA evaluates the approvability of North redesignation process. In order for an that this revision will not interfere with Carolina’s revision to the maintenance plan ozone nonattainment area to be the attainment or maintenance of any of pursuant to section 110(l), the decision regarding redesignated as an attainment area, the NAAQS or any other applicable removal of Federal RVP requirements pursuant to requirement of the CAA. section 211(h) in the Triangle Area is made at the section 107(d)(3) of the Act requires the discretion of the Administrator. This section 110(l) non-interference 5 The six NAAQS for which EPA establishes 3 See 55 FR 23658 (June 11, 1990), 56 FR 24242 demonstration is a case-by-case health and welfare based standards are CO, lead, (May 29, 1991) and 56 FR 64704 (Dec. 12, 1991). determination based upon the NO2, ozone, PM, and SO2.

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are the ozone, particulate matter and these years are also expected to show based on Standard Industrial nitrogen dioxide (NO2) standards. continued maintenance of all NAAQS. Classification codes. The growth factors VOC and NOX emissions are Also, in North Carolina’s March 27, are generated using the EPA’s Economic precursors for ozone and particulate 2013, SIP revision, NC DENR provided Growth Analysis System version 5.0 (E– matter (PM), and NO2 is a component of an updated analysis utilizing the GAS 5.0) program. Area sources are NOX. In addition, EPA also believes MOVES model to calculate on-road those stationary sources whose that, in this instance, it is appropriate to emissions that are used as part of the emissions are relatively small but due to also evaluate non-interference with evaluation of the potential impacts for the large number of these sources, the respect to the carbon monoxide (CO) the ozone NAAQS that might result collective emissions could be significant NAAQS. Typically, EPA would not exclusively from changing the high (i.e., dry cleaners, service stations, etc.). expect the CO NAAQS to be affected by ozone season RVP requirements from For area sources, emissions are a change to RVP requirements because 7.8 psi to the requirement of 9.0 psi. estimated by multiplying an emission VOC and NOX are not precursors to CO. Relaxation of the RVP standard from 7.8 factor by some known indicator of The revised modeling submitted by psi to 9.0 psi revealed a slight increase collective activity such as production, North Carolina, however, demonstrates in emissions of 0.30 tons per day (tpd) number of employees, or population. a slight increase in CO emissions, and (a 0.20 percent increase) in NOX and These types of emissions are estimated as such, EPA believes a non-interference 3.88 tpd (a 2.44 percent increase) in on the county level. For the projected review for CO is also appropriate in this VOC for Durham, Granville and Wake year’s inventory, area source emissions case. Counties. While the modeling showed a are changed by population growth, There are no emissions reductions slight increase in NOX and VOC projected production growth, or when attributable to the emissions of lead and emissions resulting from the use of 9.0 applicable, by E–GAS 5.0 growth sulfur dioxide (SO ) from RVP psi RVP as opposed to 7.8 psi, the most 2 factors. On-road mobile sources are requirements. As a result, there is no appropriate analysis for purposes of those vehicles that travel on the information indicating the proposed evaluating non-interference is whether roadways. For on-road mobile sources, change would have any impact on those total area emissions from all emissions the MOVES model results represent the NAAQS. Additionally, the Triangle inventory sources (i.e., point and area new motor vehicle emission budgets for Area is currently designated attainment stationary, and on-road and non-road the Triangle area. Off-road mobile for the lead NAAQS, and is continuing mobile) in the future years would sources are equipment that can move to attain the standard. As for the SO remain at or below the level determined 2 but do not use the roadways (e.g., lawn NAAQS, the Triangle Area is not to be consistent with maintenance of the mowers, construction equipment, designated nonattainment, and there is 1997 ozone NAAQS. To provide this no available monitoring data indicating full evaluation, the State compared total railroad locomotives, and aircraft). With the exception of the railroad an exceedance of the NAAQS. man-made emissions of VOC and NOX Therefore, the analysis below focuses on for the year 2005 (base year), 2008 and locomotives and aircraft engines, the the impact of North Carolina’s changes 2011 using a RVP of 7.8 psi (for emissions from this category are to the RVP requirements on the ozone, Durham, Granville and Wake Counties calculated using the EPA’s NONROAD2008a non-road mobile particulate matter, NO2 and CO NAAQS. only as the remaining Triangle Area To determine the emissions reviewed Counties are currently using a RVP of model. The railroad locomotive and in the technical demonstration included 9.0 psi) to emissions generated for the aircraft engine emissions are estimated with the March 27, 2013, SIP revision, years 2014 and 2017, using a RVP of 9.0 by taking an activity and multiply by an NC DENR compared the 2005 baseline psi. emission factor. All emissions are also emissions inventory to the 2017 There are four different man-made estimated at the county level. Total off- projected emissions inventory. The emission inventory source road mobile source emissions represent baseline emissions inventory represents classifications; 1) point, 2) area, 3) on- the sum of emissions generated by the an emission level for a period when the road mobile and 4) off-road mobile. NONROAD 2008a model and emissions applicable ambient air quality standard Point sources are those stationary calculated for aircraft and railroad was not violated, 2004–2006. NC DENR sources that emit more than 10 tons per locomotives. concluded that if projected emissions year of VOC or 100 tons per year of NOX Despite the small increases in remain at or below the baseline from a single facility. The source emissions from the change to the RVP emissions, continued maintenance is emissions are tabulated from data control, the Triangle Area continues to demonstrated and the ambient air collected by direct on-site demonstrate a downward trend in NOX quality standard should not be violated measurements of emissions or mass and VOC emissions through 2017. in the future. In addition to comparing balance calculations utilizing emission Tables 1 and 2 below provide the results the final year of the maintenance plan, factors from EPA’s AP–42, Compilation of this analysis for the entire Triangle NC DENR’s technical demonstration of Air Pollutant Emission Factors. For Area (including the three Counties also compares all of the interim years to the projected year’s inventory, point (noted in italics) affected by the the 2005 baseline to demonstrate that sources are adjusted by growth factors proposed RVP relaxation).

TABLE 1—TOTAL MAN-MADE VOC EMISSIONS (tpd) FOR THE TRIANGLE MAINTENANCE AREA

County 2005 2008 2011 2014 2017

Chatham * ...... 5.52 5.57 5.23 5.00 4.85 Durham ...... 25.94 23.27 20.93 19.47 18.31 Franklin ...... 11.81 11.55 11.20 11.14 11.23 Granville ...... 12.78 12.38 11.98 11.85 11.90 Johnston ...... 30.58 29.43 28.31 27.73 27.57 Orange ...... 15.42 14.35 13.10 12.13 11.35 Person ...... 9.00 8.65 8.32 8.12 8.07

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TABLE 1—TOTAL MAN-MADE VOC EMISSIONS (tpd) FOR THE TRIANGLE MAINTENANCE AREA—Continued

County 2005 2008 2011 2014 2017

Wake ...... 87.45 81.34 75.61 72.33 69.85

Total ...... 198.50 186.54 174.68 167.77 163.13 * Emissions for Center, New Hope and Williams Townships in Chatham County only.

TABLE 2—TOTAL MAN-MADE NOX EMISSIONS (tpd) FOR THE TRIANGLE MAINTENANCE AREA

County 2005 2008 2011 2014 2017

Chatham * ...... 5.01 4.44 3.79 3.17 2.73 Durham ...... 39.48 35.16 28.45 23.52 19.73 Franklin ...... 7.68 6.55 5.37 4.49 3.82 Granville ...... 10.94 8.98 7.01 5.56 4.57 Johnston ...... 34.22 28.94 23.19 19.32 16.47 Orange ...... 23.37 20.64 16.53 13.52 11.31 Person ...... 37.48 31.38 31.20 31.02 29.72 Wake ...... 106.52 98.12 83.82 69.97 59.06

Total ...... 264.70 234.21 199.36 170.57 147.41 * Emissions for Center, New Hope and Williams Townships in Chatham County only.

As Table 1 and 2 indicate, NOX and Durham and Wake Counties and a The 2008 ozone NAAQS is met when VOC emissions in the Triangle Area will portion of Granville County for the 1997 the annual fourth-highest daily continue to decrease, even with the and 2008 8-hour ozone NAAQS, and are maximum 8-hour average concentration, increase in high ozone season fuel RVP still in effect. averaged over 3 years is 75 parts per to 9.0 psi. The slight increase in On June 7, 2007, NC DENR submitted million (ppm) or less. a redesignation request and emissions is being mitigated area-wide As mentioned above, on December 26, by a steady decrease in tailpipe maintenance plan for the 1997 8-hour 2007 (72 FR 72948), EPA approved emissions, which is the result of cleaner ozone NAAQS. NC DENR used the North Carolina’s June 7, 2007, new vehicle fleet replacing the older MOBILE6.2 mobile source emissions fleet and other Federal and State model to estimate the emissions for on- maintenance plan for the Triangle Area. emissions reduction programs. As road sources and NONROAD2005c non- This maintenance plan contained discussed below, based on this data, road mobile model for off-road sources. MVEBs for NOX and an insignificance together with air quality data, and In the years 2014 and 2017, NC DENR determination for VOC contribution maintenance demonstrations and projected a reduction from the 2005 from motor vehicles to the 8-hour ozone attainment designations for the NAAQS, base year inventory of approximately 38 pollution in the Triangle Area. For the EPA is making the preliminary percent and 45 percent (respectively) in purposes of regional emissions analysis, determination that the slight increase in NOX emissions (in tpd). The projected the information provided by North NOX and VOC emissions resulting from reduction of VOC emissions (in tpd) for Carolina supported EPA’s determination this change will not interfere with the the years 2014 and 2017 is that VOC contribution to 8-hour ozone Area’s ability to maintain the 1997 8- approximately 36 percent and 44 pollution from motor vehicles in the hour ozone NAAQS, or any other percent, respectively, from the 2005 Triangle Area as insignificant for the applicable requirement. More details on base year emissions inventory. 1997 8-hour ozone NAAQS. There is an overall downward trend the individual non-interference analyses Specifically, the future on-road VOC in ozone concentration in the Triangle for the ozone, PM, NO2 and CO NAAQS emissions were projected to be less than are provided below. Area that can be attributed to Federal and State programs that have led to 10 percent in the Triangle Area, in the b. Non-Interference Analysis for the significant emissions reductions. On context of the total SIP inventory. Ozone NAAQS December 26, 2007, (72 FR 72948), EPA According to information provided by approved North Carolina’s 1997 8-hour North Carolina, biogenic emissions Effective June 15, 2004, the Triangle ozone maintenance plan for the Triangle account for approximately 90 percent of Area was designated as nonattainment Area, and redesignated the Area to the VOC emissions in future years in the for the 1997 8-hour ozone NAAQS. The attainment for the 1997 8-hour ozone Triangle Area. primary precursors for ozone are VOC NAAQS. The Triangle Area is In addition, North Carolina conducted and NO emissions. As a previous 1- X continuing to meet the 1-hour and 1997 a emissions sensitivity analysis that hour ozone nonattainment area, Durham 6 8-hour ozone NAAQS, and is meeting indicated that 1997 and 2008 8-hour and Wake Counties and a portion of the 2008 8-hour ozone NAAQS, based ozone levels in the Triangle Area were Granville County in the Triangle Area on recent air quality monitoring data. were already subject to the Federal RVP not impacted by reductions in man- made VOC emissions (e.g., reductions requirements for high ozone season 6 The air quality design value for the 8-hour gasoline to aid the Area with ozone NAAQS is the 3-year average of the annual from motor vehicles). Specifically, the compliance with the ozone NAAQS. 4th highest daily maximum 8-hour ozone photochemical model was run for a 39- Although originally implemented for concentration. The level of the 2008 8-hour ozone day scenario in 2009 with a 30 percent NAAQS is 0.075 ppm. The 2008 8-hour ozone reduction in all man-made VOC the 1-hour ozone NAAQS, the Federal NAAQS is not met when the design value is greater RVP requirements continued to apply to than 0.075 ppm. emissions. In addition, two mobile

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source specific sensitivity simulations 7 ppm and the preliminary 2011–2013 submitted modeling, including the fact were conducted by NCDAQ over a 7-day design value is 0.071 ppm for this Area. that the NOX emissions inventories are period to specifically focus on the EPA also evaluated the potential projected to continue to significantly 8 impact of mobile source emissions on increase in the VOC and NOX precursor decrease, EPA has preliminarily ozone formation. None of these emissions, and whether it is reasonable determined that North Carolina’s emissions sensitivity simulations to conclude that the requested change to revision of the maintenance plan to no resulted in a significant response in RVP requirements in Durham, Granville longer rely on gasoline with 7.8 psi RVP ozone formation. This supports the and Wake Counties during the high requirement in Durham, Granville and State’s proposal that the highway ozone season would cause the Area to Wake Counties will not interfere with mobile VOC emissions are insignificant be out of compliance with the 2008 8- attainment or maintenance of the ozone contributors to ozone formation. hour ozone NAAQS. NAAQS. As Table 3 indicates the design The current design value for ozone for In light of the current designations, value (DV) for the Triangle Area shows the Triangle Area for 2010–2012 is 0.075 monitoring and emissions data, and the that the Area is meeting the NAAQS.

TABLE 3—TRIANGLE AREA DESIGN VALUE

2004–2006 DV 2005–2007 DV 2006–2008 DV 2007–2009 DV 2008–2010 DV 2009–2011 DV 2010–2012 DV (ppm) (ppm) (ppm) (ppm) (ppm) (ppm) (ppm)

0.080 ...... 0.081 0.080 0.077 0.074 0.073 0.075

c. Non-Interference Analysis for the PM See ‘‘Redesignation Demonstration and at 15.0 mg/m3 based on a 3-year average NAAQS Maintenance Plan for the Hickory of annual mean PM2.5 concentrations, (Catawba County) and Greensboro/ and promulgated a new 24-hour The precursors for PM2.5 are NOX, Winston-Salem/High Point (Davidson NAAQS of 35 mg/m3 based on a 3-year SO2, VOC and ammonia. For the Triangle Area, on-road mobile, off-road and Guilford Counties) Fine Particulate average of the 98th percentile of 24-hour mobile and area sources are not believed Matter Nonattainment Areas’’, concentrations. On January 15, 2013 (78 to be large contributors to directly submitted to EPA on 18 December 2009, FR 3086), EPA established an annual 3 emitted fine particulate matter less than Figure 4–2, p. 4–4, which can be primary PM2.5 NAAQS at 12.0 mg/m 2.5 micrometers (PM2.5) or indirectly accessed at www.regulations.gov using based on a 3-year average of annual formed PM2.5 concentrations. As docket ID No. EPA–R04–OAR–2009– mean PM2.5 concentrations. At that time, mentioned earlier in this rulemaking, 1010. A 2009 analysis of SO2 emissions, EPA retained the 2006 24-hour NAAQS the RVP requirements result in which is a primary contributor to the at 35 mg/m3 based on a 3-year average emissions benefits for VOC and NOX so formation of PM2.5 within North of the 98th percentile of 24-hour EPA focused on these precursors for the Carolina, found about 3.3 percent of concentrations. analysis of the potential impact of North total SO2 emissions came from on-road, On January 5, 2005 (70 FR 944), all Carolina’s SIP change. However, as off-road and area sources combined, counties in the Triangle Area were described in North Carolina’s March 27, while the remaining 96.7 percent came designated unclassifiable/attainment for 2013, submission, directly emitted from point sources. the 1997 annual PM2.5 standard, and on PM2.5 is a very small component of the On July 18, 1997 (62 FR 38652), EPA November 13, 2009 (74 FR 58688), all overall PM2.5 ambient concentrations. established an annual PM2.5 NAAQS at counties in the Triangle Area were Instead, the primary species impacting 15.0 micrograms per cubic meter (mg/ designated unclassifiable/attainment for 3 PM2.5 concentrations are the secondarily m ) based on a 3-year average of annual the 2006 24-hour PM2.5 standard. As formed sulfates and organic carbons. mean PM2.5 concentrations. At that time, Table 4 indicates the PM2.5 annual and Sulfates are formed through the EPA also established a 24-hour NAAQS 24-hour design values demonstrate 3 chemical reaction of SO2 and ammonia, of 65 mg/m . See 40 CFR 50.7. On attainment of the respective NAAQS and the majority of the organic carbons October 17, 2006 (71 FR 61144), EPA and those for the annual standard have come from natural sources like trees. retained the 1997 annual PM2.5 NAAQS been decreasing.

TABLE 4—PM2.5 DESIGN VALUES

Year 2008–2010 2009–2011 2010–2012

Annual Standard

Design Value ...... 10.4 9.8 10.0

24-hour Standard

Design Value ...... 22 22 22

In light of the fact that a change to the requirement will only result in a slight a change to the Federal RVP NC Maintenance Plan to no longer rely increase in VOC and NOX emissions, requirement for Durham, Granville and on gasoline with a 7.8 psi RVP EPA has preliminarily determined that Wake Counties would not interfere with

7 One simulation ran a 50 percent increase in percent decrease in mobile source emissions in the 8 Future decreases in the inventory are an order mobile source emissions in the Triangle ozone counties. of magnitude greater than the increases associated nonattainment counties and the second ran a 50 with the change in RVP.

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the Triangle Area maintaining the 1997 cause the Area to be out of compliance e. Non-Interference Analysis for the CO PM2.5 annual or the 2006 24-hour PM2.5 with the 2010 NO2 NAAQS. The slight NAAQS standards. increase in NOX emissions is being Durham and Wake Counties in the mitigated by a steady decrease in d. Non-Interference Analysis for the Triangle Area were previously tailpipe emissions,9 which is the result 2010 NO2 NAAQS designated nonattainment for the 8-hour of cleaner new vehicle fleet replacing CO NAAQS. See 56 FR 56694, On February 17, 2012 (77 FR 9532), the older fleet. See table 2 above. November 6, 1991. Subsequently, EPA finalized designations for 2010 NO2 In light of the current designation, Durham and Wake Counties attained the NAAQS. Counties in North Carolina, monitoring and emissions trend data 8-hour CO NAAQS and was including those in the Triangle Area, and the submitted modeling, including redesignated from nonattainment to were designated unclassifiable/ the fact that NOX emissions inventories attainment. On August 2, 1995, EPA attainment for the 2010 NO2 NAAQS. are projected to continue to significantly redesignated Durham and Wake Based on North Carolina’s March 27, decrease, EPA has preliminarily Counties to attainment for the 8-hour 2013, SIP revision, EPA has evaluated determined that a change to the Federal CO NAAQS based on the measured air

the potential increase in the NOX RVP requirements for the Triangle Area quality data and the 10-year emissions (approximately a quarter of a maintenance plan submitted. See 60 FR would not interfere with the continued ton per day between June 1st and 39258. The 8-hour CO NAAQS is 9 ppm decline in NO emissions, nor with September 15th) and whether it is X and the 1-hour CO NAAQS is 35 ppm. reasonable to believe that North attainment or maintenance of the 2010 Monitoring data from 2009–2012 shows Carolina’s requested change for its high NO2 NAAQS. Wake County is well below the 8-hour ozone season RVP requirement would CO NAAQS values as listed in Table 5.

TABLE 5—CO 8-HOUR MONITORED CONCENTRATION NAAQS [ppm]

County Monitor ID 2009 2010 2011 2012

8-hr NAAQS

Wake ...... 371830014 1.3 1.3 1.4 1.3

1-hr NAAQS

Wake ...... 371830014 2.1 2.1 1.8 1.9

Based upon the revised modeling subject to the more stringent standard, and 2017. This projected increase associated with the proposed relaxation it is estimated that Triangle Area on- represents an increase in the total of the RVP standard in the three road CO emissions will increase inventory of less than 1 percent. portions of the Triangle Area currently approximately 6.3 tons per day in 2014

TABLE 6—2010 CO EMISSIONS (TONS/DAY) FOR MAINTENANCE AREAS

County Point source Area source On-road Non-road Total

Raleigh-Durham Maintenance Area

Durham ...... 0.97 1.54 186.00 19.04 207.55 Wake ...... 1.17 4.26 642.97 70.62 719.02

Total ...... 2.14 5.80 828.97 89.66 926.57

In light of the slight increase in CO VI. Mobile Source Inventories and On December 26, 2007 (72 FR 72948), emissions, and the existing air quality Motor Vehicle Emission Budgets EPA approved the redesignation request data showing a wide margin of Update for the Triangle Area. Additionally, EPA compliance with the CO NAAQS, EPA a. Background approved the 1997 8-hour ozone has preliminarily determined that a maintenance plan including NOX change to the Federal RVP requirement On June 7, 2007, the State of North MVEBs for the Triangle Area.10 These for Durham, Granville and Wake Carolina, through NC DENR, submitted approvals were based on EPA’s Counties would not interfere with the a final request for EPA to: (1) determination that the State of North Raleigh-Durham Area maintaining the Redesignate the Triangle Area to Carolina had demonstrated that the CO standards. As Table 5 above attainment for the 1997 8-hour ozone Triangle Area met the criteria for standard; and (2) approve a North indicates the CO design value is well redesignation to attainment specified in Carolina SIP revision containing a below the standard. the CAA, including the determination maintenance plan for the Triangle Area.

9 See table 2 above. emissions of VOCs are insignificant for addressing that insignificance finding in today’s 10 In the December 26, 2007 final rule EPA also transportation conformity purposes. We are not proposal. approved NC DENR’s determination that on-road

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that the entire Triangle Area had from the previous margins included running the MOVES mobile model for attained the 1997 8-hour ozone NAAQS. with the original maintenance plan. the future year with the projected VMT At the time of original redesignation Therefore, North Carolina’s revision to generate emissions that take into request, the on-road motor vehicle includes a reallocation of the safety consideration expected Federal tailpipe inventory was generating by the margin to the NOX MVEB based upon standards, fleet turnover and new fuel MOBILE6.2 model, which at the time the revised calculations. EPA’s standards. was the current MVEB model. The preliminary analysis of these changes is Table 7 shows the on-road Chatham, proposed change to the maintenance described below. plan discussed above includes a MVEB Franklin, Johnston, Orange and Person generated by the MOVES model which b. On-Road Inventory Counties emissions based on the current has since replaced MOBILE6.2 model. As discussed above, the on-road RVP of 9.0 psi and the on-road Wake, In addition, the model used to calculate motor vehicle emissions in the revised Durham, and Granville Counties the original non-road inventory maintenance plan are calculated using emissions based on the current RVP of (NONROAD2005c) has also since been the MOVES model. The MOVES model 7.8 psi. Table 8 shows the on-road updated by a new non-road inventory uses the road class vehicle miles emissions data for Durham, Granville model (NONROAD2008a). traveled (VMT) and other operating and Wake Counties for 2005, 2008 and As a result of these new models and conditions as input parameters to 2011 based on 7.8 psi and the the revised emission associated with a generate an output file that contains comparison of the projected 2014 and relaxed RVP standard, the safety estimated emissions. For the projected 2017 emissions based on a RVP margin 11 calculations provided in the years inventories, the on-road mobile relaxation to 9.0 psi for the three revised maintenance plan have changes sources emissions are calculated by counties.

TABLE 7—MOVES ON-ROAD EMISSIONS FOR THE TRIANGLE AREA *

2005 2008 2011 2014 2017

VOC Emissions (tons/day)

MOVES ...... 87.66 74.10 59.13 48.22 38.97

NOX Emissions (tons/day)

MOVES ...... 175.18 152.05 117.46 91.84 72.88 * Wake, Durham, and Granville Counties emissions based on the current RVP of 7.8 psi.

TABLE 8—MOVES ON-ROAD EMISSIONS COMPARISON *

2005 2008 2011 2014 ** 2017 **

VOC Emissions (tons/day)

MOVES ...... 57.69 49.01 39.21 31.90/32.94 25.64/26.44

NOX Emissions (tons/day)

MOVES ...... 116.11 102.92 80.09 62.56/62.99 49.48/49.78 * Emissions data for Durham, Granville and Wake Counties only. ** Wake, Durham, and Granville Counties emissions based on relaxation of RVP of 7.8 psi to 9.0 psi.

c. Non-Road Inventory nuclear generating units at Duke- NC DENR is currently allocating Progress Energy Company in Wake portions of the available safety margin In the original 2007 redesignation County. to the MVEBs to allow for unanticipated demonstration and maintenance plan, VMT growth as well as changes to the model used to generate off-road d. Motor Vehicle Emissions Budgets future vehicle mix assumptions that emissions was the NONROAD2005c In the March 27, 2013, SIP revision, influence the emission estimations. In model. Since 2007, EPA has updated the North Carolina provided an increase for the March 2013 SIP revision, North non-road model to NONROAD2008a. the amount of safety margins allocated Carolina is seeking to adjust the safety NONROAD2008a is the latest USEPA to the NOX MVEBs to account for approved non-road model. In this changes in the projection models. The margins. The following tables provide revision, the NONROAD2008a model is MVEBs in this SIP revision which EPA the adjusted NOX MVEBs, in kilograms used to generate non-road emissions for is proposing to approve update the per day (kg/d) for the 2008 base all inventory years—2005, 2008, 2011, MVEBs which were originally approved attainment year inventories, as well as 2014, and 2017. Also, the non-road by EPA on December 26, 2007. The the projected NOX emissions inventory emissions documentation includes the updated MVEBs are outlined in table 9 2017 for each County. general conformity analysis for two new below.

11 A safety margin is the difference between the categories. The State may choose to allocate some remains equal to or less than the attainment level attainment level of emissions from all source of the safety margin to the MVEBs, for of emissions. (40 CFR 93.124(a)) categories (i.e., point, area, and mobile) and the transportation conformity purposes, so long as the projected level of emissions from all source total level of emissions from all source categories

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TABLE 9—TRIANGLE AREA (COUNTY LEVEL) NOX MVEB IN KILOGRAMS PER DAY

2008 NOX 2017 NOX County (kg/d) (kg/d)

Chatham* ...... Base Emissions ...... 3,033 1,690 Safety Margin ...... 455 422 NOX Conformity MVEB ...... 3,488 2,112 Durham ...... Base Emissions ...... 22,438 10,509 Safety Margin ...... 2,244 2,101 NOX Conformity MVEB ...... 24,682 12,610 Franklin ...... Base Emissions ...... 4,537 2,204 Safety Margin ...... 454 441 NOX Conformity MVEB ...... 4,991 2,645 Granville ...... Base Emissions ...... 6,105 2,622 Safety Margin ...... 916 656 NOX Conformity MVEB ...... 7,021 3,278 Johnston ...... Base Emissions ...... 20,320 9,865 Safety Margin ...... 2,032 1,972 NOX Conformity MVEB ...... 22,352 11,838 Orange ...... Base Emissions ...... 13,820 6,137 Safety Margin ...... 1,382 1,227 NOX Conformity MVEB ...... 15,202 7,364 Person ...... Base Emissions ...... 2,871 1,340 Safety Margin ...... 431 335 NOX Conformity MVEB ...... 3,302 1,674 Wake ...... Base Emissions ...... 64,825 32,034 Safety Margin ...... 6,483 6,407 NOX Conformity MVEB ...... 71,308 38,441

Total ...... New Safety Margin ...... 14,396 13,563 * Chatham County emissions for maintenance area only.

A total of 14,396 kg (15.87 tpd) and ozone standard if the applicable RVP not impose additional requirements 13,563 kg (14.95 tpd) from the available standard in the three portions of the beyond those imposed by state law. For NOX safety margins in 2008 and 2017, Triangle Area, the North Carolina that reason, this proposed action: respectively, were added to the MVEBs revision is changed. EPA is also • Is not a ‘‘significant regulatory for the Triangle Area. proposing to approve the revised NOX action’’ subject to review by the Office As demonstrated above, the Triangle MVEBs for 2008 and 2017 including the of Management and Budget under Area is projected to steadily decrease its revised and reallocated safety margin Executive Order 12866 (58 FR 51735, total NOX emissions from the base year among the NOX MVEBs for the Triangle October 4, 1993); of 2005 to the maintenance year of 2017. Area. • Does not impose an information This NOX emission decrease EPA has preliminarily determined collection burden under the provisions demonstrates continued attainment/ that North Carolina’s March 27, 2013, of the Paperwork Reduction Act (44 maintenance of the 1997 8-hour ozone SIP revision, including the technical U.S.C. 3501 et seq.); NAAQS for ten years from 2007 (the demonstration associated with the • Is certified as not having a year the Area was effectively designated State’s request for the removal of the significant economic impact on a attainment for the 1997 8-hour ozone Federal RVP requirements, and the substantial number of small entities NAAQS) as required by the CAA. updated MVEBs are consistent with the under the Regulatory Flexibility Act (5 applicable provisions of the CAA. U.S.C. 601 et seq.); VII. Proposed Action Should EPA decide to remove the • Does not contain any unfunded EPA is proposing to approve the State subject portions of the Triangle Area mandate or significantly or uniquely of North Carolina’s March 27, 2013, from those areas subject to the 7.8 psi affect small governments, as described revision to its Maintenance Plan for the Federal RVP requirements, such action in the Unfunded Mandates Reform Act Triangle 1997 8-hour Ozone will occur in a separate, subsequent of 1995 (Pub. L. 104–4); Maintenance Area. Specifically, EPA is rulemaking. • Does not have Federalism proposing to approve the State’s implications as specified in Executive VIII. Statutory and Executive Order showing that the Triangle Area can Order 13132 (64 FR 43255, October 7, Reviews continue to maintain the 1997 ozone 1999); standard without emissions reductions Under the CAA, the Administrator is • Is not an economically significant associated with the use of 7.8 psi RVP required to approve a SIP submittal that regulatory action based on health or gasoline in the three portions of the complies with the provisions of the Act safety risks subject to Executive Order Triangle Area currently subject to the and applicable federal regulations. 42 13045 (62 FR 19885, April 23, 1997); 7.8 psi RVP standard during the high U.S.C. 7410(k); 40 CFR 52.02(a). Thus, • Is not a significant regulatory action ozone season—June 1 through in reviewing SIP submissions, EPA’s subject to Executive Order 13211 (66 FR September 15. role is to approve state choices, 28355, May 22, 2001); EPA proposes to approve the revised provided that they meet the criteria of • Is not subject to requirements of and updated modeling submitted by the the CAA. Accordingly, this proposed Section 12(d) of the National State, which shows that the Triangle action merely approves state law as Technology Transfer and Advancement Area can continue to maintain the 1997 meeting Federal requirements and does Act of 1995 (15 U.S.C. 272 note) because

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application of those requirements would comments received on this proposed any personal information you have be inconsistent with the CAA; and policy letter, Coast Guard will issue the provided. • Does not provide EPA with the final policy letter and specify its Submitting comments: If you submit a discretionary authority to address, as effective date. comment, please include the docket appropriate, disproportionate human DATES: Comments and related material number for this notice (USCG–2013– health or environmental effects, using must either be submitted to our online 0915) and provide a reason for each practicable and legally permissible docket via http://www.regulations.gov suggestion or recommendation. You methods, under Executive Order 12898 on or before November 29, 2013 or reach may submit your comments and (59 FR 7629, February 16, 1994). the Docket Management Facility by that material online, or by fax, mail or hand In addition, this proposed rule does date. delivery, but please use only one of not have tribal implications as specified these means. We recommend that you ADDRESSES: You may submit comments by Executive Order 13175 (65 FR 67249, identified by docket number USCG– include your name and a mailing November 9, 2000), because the SIP is 2013–0915 using any one of the address, an email address, or a not approved to apply in Indian country following methods: telephone number in the body of your located in the state, and EPA notes that (1) Federal eRulemaking Portal: document so that we can contact you if it will not impose substantial direct http://www.regulations.gov. we have questions regarding your costs on tribal governments or preempt submission. (2) Fax: 202–493–2251. tribal law. To submit your comment online, go to (3) Mail: Docket Management Facility http://www.regulations.gov, click on the List of Subjects in 40 CFR Part 52 (M–30), U.S. Department of ‘‘submit a comment’’ box, which will Transportation, West Building Ground Environmental protection, Air then become highlighted in blue. In the Floor, Room W12–140, 1200 New Jersey pollution control, Incorporation by ‘‘Document Type’’ drop down menu Avenue SE., Washington, DC 20590– reference, Intergovernmental relations, select ‘‘Notices’’ and insert ‘‘USCG– 0001. Lead, Reporting and recordkeeping 2013–0915’’ in the ‘‘Keyword’’ box. (4) Hand delivery: Same as mail requirements. Click ‘‘Search’’ then click on the balloon address above, between 9 a.m. and 5 shape in the ‘‘Actions’’ column. If you Authority: 42 U.S.C. 7401 et seq. p.m., Monday through Friday, except submit your comments by mail or hand Dated: October 21, 2013. Federal holidays. The telephone number delivery, submit them in an unbound Beverly H. Banister, is 202–366–9329. format, no larger than 81⁄2 by 11 inches, To avoid duplication, please use only Acting Regional Administrator, Region 4. suitable for copying and electronic one of these four methods. See the [FR Doc. 2013–25782 Filed 10–29–13; 8:45 am] filing. If you submit them by mail and ‘‘Public Participation and Request for BILLING CODE 6560–50–P would like to know that they reached Comments’’ portion of the the Facility, please enclose a stamped, SUPPLEMENTARY INFORMATION section self-addressed postcard or envelope. We below for instructions on submitting DEPARTMENT OF HOMELAND will consider all comments and material comments. SECURITY received during the comment period. FOR FURTHER INFORMATION CONTACT: If Viewing the comments and proposed Coast Guard you have questions on this notice, call new policy letter: To view the comments or email Dr. Cynthia A. Znati, Office of and the policy letter, go to http:// 46 CFR Part 153 Design and Engineering Standards, www.regulations.gov, click on the ‘‘read [Docket No. USCG–2013–0915] Hazardous Materials Division, U.S. comments’’ box, which will then Coast Guard; telephone 202–372–1412, become highlighted in blue. In the RIN 1625–ZA31 email [email protected]. If ‘‘Keyword’’ box insert ‘‘USCG–2013– you have questions on viewing or 0915’’ and click ‘‘Search.’’ Click the Carriage of Conditionally Permitted submitting material to the docket, call ‘‘Open Docket Folder’’ in the ‘‘Actions’’ Shale Gas Extraction Waste Water in Barbara Hairston, Program Manager, column. If you do not have access to the Bulk Docket Operations, telephone 202–366– internet, you may view the docket AGENCY: Coast Guard, DHS. 9826. online by visiting the Docket ACTION: Notice of availability and SUPPLEMENTARY INFORMATION: Management Facility in Room W12–140 request for comments. on the ground floor of the Department Public Participation and Request for of Transportation West Building, 1200 Comments SUMMARY: The Coast Guard announces New Jersey Avenue SE., Washington, the availability of a proposed policy We encourage you to submit DC 20590, between 9 a.m. and 5 p.m., letter concerning the carriage of shale comments and related material on the Monday through Friday, except Federal gas extraction waste water in bulk via proposed policy letter concerning the holidays. We have an agreement with barge, and invites public comment. The carriage of conditionally permitted shale the Department of Transportation to use policy letter specifies the conditions gas extraction waste water in bulk. In the Docket Management Facility. under which a barge owner may request particular, we specifically request Privacy Act: Anyone can search the and be granted a Certificate of public comment regarding the electronic form of comments received Inspection endorsement or letter disclosure of proprietary information to into any of our dockets by the name of allowing the barge to transport shale gas the Coast Guard, and regarding the the individual submitting the comment extraction waste water in bulk. The applicability of testing requirements for (or signing the comment, if submitted policy letter also defines the radioactive materials to all regions on behalf of an association, business, information the Coast Guard may where shale gas extraction waste water labor union, etc.). You may review a require the barge owner to provide and may be transported by barge. All Privacy Act, system of records notice specifies the additional requirements comments received will be posted, regarding our public dockets in the the Coast Guard is considering imposing without change, to http:// January 17, 2008, issue of the Federal on such barges. Upon reviewing www.regulations.gov and will include Register (73 FR 3316).

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Background and Purpose SGEWW is a by-product of drilling for be treated as a ‘‘listed cargo’’ because natural gas using unconventional the specific chemical composition of This notice is issued under authority hydraulic fracturing technology, which SGEWW varies from one consignment of 5 U.S.C. 552(a). The purpose of this involves the injection of water, sand, load to another and may contain one or notice is to announce the availability of and chemical additives. The sand more hazardous materials as defined in the Coast Guard’s proposed policy letter remains in the well but a substantial 46 CFR 153.2, including radioactive entitled ‘‘Carriage of Conditionally portion of the injected fluid re-surfaces isotopes such as radium-226 and Permitted Shale Gas Extraction Waste after the drilling and must be handled radium-228. Variables affecting the Water in Bulk,’’ and to request public as SGEWW. At present, this SGEWW is chemical composition of SGEWW comments on the policy the letter either stored at the drilling site or include the chemicals present in the describes. The policy letter specifies the transported by rail or truck to remote initial drilling fluid, the specific site conditions under which a barge owner storage or reprocessing centers. There is being drilled, and the age of the well. In may request and be granted a Certificate commercial interest in transporting addition, each load can be a mixture of of Inspection endorsement or letter, SGEWW from northern Appalachia via SGEWW from different wells. under 46 CFR part 153, allowing the inland waterways to storage or Upon reviewing comments received barge to transport shale gas extraction reprocessing centers and final disposal on this proposed policy letter, Coast waste water (SGEWW) in bulk as sites in Ohio, Texas, and Louisiana. Guard will issue the final policy letter and specify its effective date. Conditionally Permitted SGEWW. The Pursuant to 46 CFR 153.900(a) and (c), policy letter also defines the under certain circumstances a bulk Dated: October 23, 2013. information the Coast Guard may liquid hazardous material may be J.G. Lantz, require the barge owner to provide and transported by a tank vessel if it is a Director of Commercial Regulations and specifies the additional requirements ‘‘listed cargo’’ (listed in any of several Standards, United States Coast Guard. the Coast Guard is considering imposing specified tables in Coast Guard [FR Doc. 2013–25628 Filed 10–29–13; 8:45 am] on such barges. regulations). SGEWW, however, cannot BILLING CODE 9110–04–P

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Notices Federal Register Vol. 78, No. 210

Wednesday, October 30, 2013

This section of the FEDERAL REGISTER unless the collection of information Frequency of Responses: Reporting: contains documents other than rules or displays a currently valid OMB control Daily; weekly; monthly. proposed rules that are applicable to the number and the agency informs Total Burden Hours: 61,161. public. Notices of hearings and investigations, potential persons who are to respond to Agricultural Marketing Service. committee meetings, agency decisions and the collection of information that such rulings, delegations of authority, filing of persons are not required to respond to Title: Regulations for Voluntary petitions and applications and agency Grading of Poultry Products and Rabbit statements of organization and functions are the collection of information unless it examples of documents appearing in this displays a currently valid OMB control Products, 7 CFR Part 70. section. number. OMB Control Number: 0581–0127. Summary of Collection: The Agricultural Marketing Service Agricultural Marketing Act of 1946 (60 DEPARTMENT OF AGRICULTURE Title: Fruit and Vegetable Market Stat. 1087–1091, as amended; 7 U.S.C. News Reports. 1621–1627) (AMA) directs and Submission for OMB Review; OMB Control Number: 0581–0006. authorizes the Department to develop Comment Request Summary of Collection: Section 203(g) standards of quality, grades, grading programs, and services to enable a more October 24, 2013. of the Agricultural Marketing Act of 1946 (7 U.S.C. 1621) directs and orderly marketing of agricultural The Department of Agriculture will products so trading may be facilitated submit the following information authorizes the collection of information and disseminating of marketing and so consumers may be able to obtain collection requirement(s) to OMB for products graded and identified under review and clearance under the information including adequate outlook information on a market-area basis for USDA programs. Regulations in 7 CFR Paperwork Reduction Act of 1995, Part 70 provide for a voluntary program Public Law 104–13 on or after the date the purpose of anticipating and meeting consumer requirements, aiding in the for grading poultry and rabbits on the of publication of this notice. Comments basis of U.S. classes, standards and regarding (a) Whether the collection of maintenance of farm income and bring about balance between production and grades. The Agricultural Marketing information is necessary for the proper Service (AMS) carries out the performance of the functions of the utilization of agriculture products. Market News provides all interested regulations, which provide a voluntary agency, including whether the program for grading poultry and rabbit information will have practical utility; segments of the market chain with market information tends to equalize the products. (b) the accuracy of the agency’s estimate Need and Use of the Information: of burden including the validity of the competitive position of all market participants. The fruit and vegetable This is a voluntary program on a fee for methodology and assumptions used; (c) service basis. Respondents need to ways to enhance the quality, utility and industries, through their organizations, or government agencies present formal provide their name and address and clarity of the information to be other relevant information to request or collected; (d) ways to minimize the requests that the Department of Agriculture issue daily, weekly, semi- apply for the specific service they want. burden of the collection of information The information is needed to administer on those who are to respond, including monthly, or monthly market news reports on various aspects of the the program, assess the cost of providing through the use of appropriate service, and to assure graded poultry automated, electronic, mechanical, or industry. Need and Use of the Information: and rabbits are properly labeled. other technological collection Without this information the agency techniques or other forms of information AMS will collect information on some 330 ornamentals, fresh fruit and could not ensure properly labeled technology should be addressed to: Desk poultry and rabbit products and the Officer for Agriculture, Office of vegetables, and specialty crops for the production of Market News reports that integrity of the USDA grade mark if each Information and Regulatory Affairs, new label was not submitted for Office of Management and Budget are then available to the industry and other interested parties in various approval. (OMB), New Executive Office Building, Description of Respondents: Business formats. Information is provided on a Washington, DC; New Executive Office or other for profit; farms. Building, 725 17th Street NW., voluntary basis and collected in person Number of Respondents: 690. Washington, DC 20503. Commenters are through face-to-face interviews and by Frequency of Responses: Reporting: encouraged to submit their comments to confidential telephone throughout the Daily; monthly; semi-annually; OMB via email to: OIRA_Submission@ country by market reporters. The annually; Other: On occasion. omb.eop.gov or fax (202) 395–5806 and absence of these data would deny Total Burden Hours: 2,006. to Departmental Clearance Office, primary and secondary users USDA, OCIO, Mail Stop 7602, information that otherwise would be Agricultural Marketing Service Washington, DC 20250–7602. available to aid them in their production Title: Tart Cherries Grown in the Comments regarding these and marketing decisions, analyses, states of MI, NY, PA, OR, UT, WA, and information collections are best assured research and knowledge of current WI. of having their full effect if received by market conditions. The omission of OMB Control Number: 0581–0177. November 29, 2013. Copies of the these data could adversely affect prices, Summary of Collection: Marketing submission(s) may be obtained by supply, and demand. Order No. 930 (7 CFR Part 930) regulates calling (202) 720–8681. Description of Respondents: Farms; the handling of tart cherries grown in An agency may not conduct or business or other for-profit. Michigan, New York, Pennsylvania, sponsor a collection of information Number of Respondents: 3,168. Oregon, Utah, Washington and

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Wisconsin. The Agricultural Marketing collected; (d) ways to minimize the Organisms or Vectors (VS Form 16–3); Agreement Act of 1937 was designed to burden of the collection of information a United States Veterinary Permit for permit regulation of certain agricultural on those who are to respond, including Importation and Transportation of commodities for the purpose of through the use of appropriate Controlled Materials and Organisms and providing orderly marketing conditions automated, electronic, mechanical, or Vectors (VS Form 16–6A); an in inter and intrastate commerce and other technological collection Application for Approval or Report of improving returns to growers. The techniques or other forms of information Inspection Establishment Handling primary objective of the Order is to technology. Restricted Animal Byproducts or stabilize the supply of tart cherries. Comments regarding this information Controlled Materials (VS Form 16–25); Only tart cherries that will be canned or collection received by November 29, USDA–APHIS–VS Agreement for frozen will be regulated. The Order is 2013 will be considered. Written Handling Restricted Imports of Animal administered by an 18 member Board comments should be addressed to: Desk By-Products and Controlled Materials comprised of producers, handlers and Officer for Agriculture, Office of (VS Form 16–26); USDA–APHIS–VS one public member, plus alternates for Information and Regulatory Affairs, Report of Entry, Shipment of Restricted each. The members will serve for a Office of Management and Budget Imported Animal Products and Animal three-year term of office. (OMB), New Executive Office Building, By-Products, and Other Material (VS Need and Use of the Information: 725 17th Street NW., Washington, DC Form 16–78); USDA–APHIS–VS Various forms were developed by the 20502. Commenters are encouraged to Application for Import or in Transit Board for persons to file required submit their comments to OMB via Permit (Animals, Animal Semen, information relating to tart cherry email to: OIRA_Submission@ Animal Embryos, Birds, Poultry, and inventories, shipments, diversions and OMB.EOP.GOV or fax (202) 395–5806 Hatching Eggs) (VS Form 17–129); other needed information to effectively and to Departmental Clearance Office, USDA–APHIS Agreement of Pet Bird carry out the requirements of the Order. USDA, OCIO, Mail Stop 7602, Owner (VS Form 17–8); application of The information collected is used to Washington, DC 20250–7602. Copies of seals and agreements; notarized ensure compliance, verify eligibility, the submission(s) may be obtained by declaration or affirmation; notification and vote on amendments, monitor and calling (202) 720–8958. of signs of disease in a recently record grower’s information. Authorized An agency may not conduct or imported bird; cooperative service Board employees and the industry are sponsor a collection of information agreements, and recordkeeping by the primary users of the information. If unless the collection of information processing establishments. APHIS will information were not collected, it would displays a currently valid OMB control collect information to ensure that U.S. eliminate needed data to keep the number and the agency informs birds and poultry undergo appropriate industry and the Secretary abreast of potential persons who are to respond to examinations before entering the United changes at the State and local level. the collection of information that such States. Without the information, it Description of Respondents: Business persons are not required to respond to would be impossible for APHIS to or other for profit; not-for-profit the collection of information unless it establish an effective line of defense institutions. displays a currently valid OMB control against an introduction of HPAI and Number of Respondents: 640. number. Newcastle Disease. Frequency of Responses: Reporting: Description of Respondents: Animal and Plant Health Inspection Annually; quarterly; on occasion. Individuals or households; Business or Service Total Burden Hours: 727. other for-profit; Not-for-profit Charlene Parker, Title: Highly Pathogenic Avian institutions; Federal Government. Influenza, All Subtypes, and Newcastle Departmental Information Collection Number of Respondents: 1,680. Clearance Officer. Disease; Additional Restrictions. Frequency of Responses: Reporting OMB Control Number: 0579–0245. and Recordkeeping: On occasion. [FR Doc. 2013–25613 Filed 10–29–13; 8:45 am] Summary of Collection: The Animal Total Burden Hours: 1,055. BILLING CODE 3410–02–P Health Protection Act (AHPA), 7 U.S.C 8301, is the primary Federal law Ruth Brown, governing the protection of animal Departmental Information Collection DEPARTMENT OF AGRICULTURE health. The law gives the Secretary of Clearance Officer. [FR Doc. 2013–25715 Filed 10–29–13; 8:45 am] Submission for OMB Review; Agriculture broad authority to detect, BILLING CODE 3410–34–P Comment Request control, or eradicate pests or diseases of livestock or poultry. The agency charged October 25, 2013. with carrying out this disease DEPARTMENT OF AGRICULTURE The Department of Agriculture has prevention mission is the Animal and submitted the following information Plant Health Inspection Service Submission for OMB Review; collection requirement(s) to OMB for (APHIS), through its Veterinary Services Comment Request review and clearance under the (VS) Program. Highly pathogenic avian Paperwork Reduction Act of 1995, influenza (HPAI) and Newcastle Disease October 23, 2013. Public Law 104–13. Comments are extremely infectious and often fatal The Department of Agriculture has regarding (a) whether the collection of disease affecting all types of birds and submitted the following information information is necessary for the proper poultry. collection requirement(s) to OMB for performance of the functions of the Need and Use of the Information: To review and clearance under the agency, including whether the protect the United States against an Paperwork Reduction Act of 1995, information will have practical utility; incursion of HPAI and Newcastle Public Law 104–13. Comments (b) the accuracy of the agency’s estimate Disease, APHIS requires the use of regarding (a) Whether the collection of of burden including the validity of the several information collection activities, information is necessary for the proper methodology and assumptions used; (c) including an USDA–APHIS–VS performance of the functions of the ways to enhance the quality, utility and Application For Permit To Import or agency, including whether the clarity of the information to be Transport Controlled Materials or information will have practical utility;

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(b) the accuracy of the agency’s estimate Inspection and/or Treatment, PPQ 587, (1) Complete the analysis of effects on of burden including the validity of the Application for Permit to Import Plants the Management Indicator Species methodology and assumptions used; (c) or Plant Products and box labeling. The population trend for ptarmigan. ways to enhance the quality, utility and information from the forms will be used (2) Strengthen the disclosure of clarity of the information to be to certify that unshu oranges from Japan cumulative effects to wildlife species. collected; (d) ways to minimize the are free of citrus canker. To ensure that (3) Address the concern about the use burden of the collection of information the oranges from Kyushu Island are not of picloram in municipal watersheds. on those who are to respond, including imported into citrus-producing areas of On September 10, 2009, the USDA through the use of appropriate the United States such as Florida and Forest Service published a corrected automated, electronic, mechanical, or California, individuals boxes must be NOI in the Federal Register (74 FR other technological collection stamped or printed with a statement 46562). The NOI listed the date of techniques or other forms of information specifying the State into which the completion and distribution for the draft technology. oranges may be imported and from supplemental environmental impact Comments regarding this information which they are prohibited removal statement (DSEIS) as being December collection received by November 29, under a Federal quarantine. Failing to 2009. 2013 will be considered. Written collect this information would cripple DATES: Revised dates: It is estimated the comments should be addressed to: Desk APHIS’ ability to ensure that Unshu Officer for Agriculture, Office of DSEIS will be completed and available oranges from Japan are not carrying for review no later than March 31, 2014. Information and Regulatory Affairs, citrus canker. Office of Management and Budget A 45-day comment period will follow. Description of Respondents: Business (OMB), New Executive Office Building, The Forest Service estimates the final or other for-profit; State, Local or Tribal 725 17th Street NW., Washington, DC supplemental environmental impact Government. 20502. Commenters are encouraged to statement (FSEIS) and draft records of submit their comments to OMB via Number of Respondents: 23. decision (each forest is preparing its email to: OIRA_Submission@ Frequency of Responses: Reporting: own record of decision) will be released OMB.EOP.GOV or fax (202) 395–5806 On occasion. in July 2014. Pursuant to 36 CFR 218, a 45-day objection period will follow. and to Departmental Clearance Office, Total Burden Hours: 5,535. USDA, OCIO, Mail Stop 7602, The final records of decision are Washington, DC 20250–7602. Copies of Ruth Brown, expected to be released no later than the submission(s) may be obtained by Departmental Information Collection December 2014. calling (202) 720–8958. Clearance Officer. ADDRESSES: The DSEIS will be posted An agency may not conduct or [FR Doc. 2013–25371 Filed 10–29–13; 8:45 am] on these Web sites: sponsor a collection of information BILLING CODE 3410–34–P Carson National Forest: http:// unless the collection of information www.fs.usda.gov/land/carson/ displays a currently valid OMB control landmanagement number and the agency informs DEPARTMENT OF AGRICULTURE Santa Fe National Forest: http:// potential persons who are to respond to www.fs.usda.gov/projects/santafe/ Forest Service the collection of information that such landmanagement persons are not required to respond to Southwestern Region: Invasive Plant A limited number of paper copies will the collection of information unless it Control Project, Carson and Santa Fe be available upon request from either displays a currently valid OMB control National Forests, New Mexico forest: Carson Forest Supervisor’s number. Office, 208 Cruz Alta Road, Taos, NM 87571, Attn: Planning; or Santa Fe Animal and Plant Health Inspection AGENCY: Forest Service, USDA. National Forest Supervisor’s Office, 11 Service ACTION: Notice; correction. Forest Lane, Santa Fe, NM 87508, Attn: Title: Importation of Unshu Oranges. Julie Bain. The address to which to send OMB Control Number: 0579–0173. SUMMARY: On December 15, 2000, the comments will be published with the Summary of Collection: The Plant USDA Forest Service published a notice DSEIS. Protection Act (7 U.S.C. 7701–7772) of intent (NOI) in the Federal Register authorizes the Secretary of Agriculture (65 FR 78464) to prepare an FOR FURTHER INFORMATION CONTACT: Julie to restrict the importation, entry or environmental impact statement (EIS) Bain, Forest Environmental Coordinator, interstate movement of plants, plant for controlling invasive plants in the Santa Fe National Forest Supervisor’s products, and other articles to prevent Carson and Santa Fe National Forests. Office, 11 Forest Lane, Santa Fe, NM the introduction of plant pest in the The agency published a notice of 87508, (505) 438–5443, [email protected]. United States or their dissemination availability (NOA) for the Draft EIS in SUPPLEMENTARY INFORMATION: An SEIS is within the United States. The the Federal Register (69 FR 42722) on needed to update certain elements of the regulations in ‘‘Subpart-Citrus Fruit’’ (7 July 16, 2004. A record of decision was analysis and correct deficiencies CFR 319.28) allow the importation of signed on September 12, 2005 and an identified in the 2005 Invasive Plant unshu oranges from Kyushu Island and NOA was subsequently published in the Control Project Final Environmental Honshu Island, Japan, into the United Federal Register (70 FR 69967) on Impact Statement and records of States under certain conditions. A November 18, 2005. Members of the decision. The DSEIS will document the certificate must accompany the unshu public appealed the decision before the analysis of effects for the same range of oranges from the Japanese plant Regional Forester of the Southwestern alternatives as the 2005 final EIS. The protection service certifying that the Region, who reviewed the decision in proposed action, which includes the use fruit is apparently free of citrus canker. accordance with 36 CFR 215.7. The of herbicides to control invasive species, Need and Use of the Information: The Regional Forester’s decision, issued on remains the preferred alternative. The Animal and Plant Health Inspection February 23, 2006, reversed the Forest Supervisors of the Carson and (APHIS) will collect information using Responsible Officials’ decision on the Santa Fe National Forests are the form PPQ 203, Foreign Site Certificate of project, with the following instructions: responsible officials. Each responsible

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official will decide whether the project February 7, 2014 from 10 a.m. to 6 p.m. comments and requests for time for oral will be implemented on their respective Exact meeting dates are: comments must be sent to Michael national forest and each will prepare a • December 6, 2013: 10 a.m. to 6 p.m. Williams, Public Affairs Specialist, separate record of decision. • December 13, 2013: 10 a.m. to 6 George Washington and Jefferson Importance of Public Participation in p.m. National Forests Supervisor’s Office at Subsequent Environmental Review: The • January 10, 2014: 10 a.m. to 6 p.m. 5162 Valleypointe Parkway, Roanoke, comment period for the DSEIS will be • January 17, 2014: 10 a.m. to 6 p.m. Virginia 24019; by email to 45 days in duration and commence the • January 24, 2014: 10 a.m. to 6 p.m. [email protected]; or via facsimile • day after the NOA is published in the January 31, 2014: 10 a.m. to 6 p.m. to 540–265–5145. A summary of the • Federal Register. Legal notices February 7, 2014: 10 a.m. to 6 p.m. meeting will be posted at www.fs.fed.us/ announcing the availability of the DSEIS All Resource Advisory Committee r8/gwj within 21 days of the meeting. will also be published in the meetings are subject to change or Meeting Accommodations: If you are newspapers of record, the Albuquerque cancellation. Contact Michael Williams, a person requiring reasonable Journal and The Taos News, and posted Public Affairs Specialist, Supervisor’s accommodation, please make requests on the Forests’ Web sites. This project Office, 540–265–5173, mrwilliams04@ in advance for sign language implements the land management plans fs.fed.us for status of Resource Advisory interpreting, assistive listening devices and is not authorized under the Healthy Committee meetings prior to attending or other reasonable accommodation for Forest Restoration Act, and is therefore each meeting. access to the facility or proceedings by subject to subparts A and B of 36 CFR ADDRESSES: The meeting will be held at contacting the person listed under For part 218. Objections to the draft records the George Washington and Jefferson Further Information Contact. All of decision will be accepted only from National Forests Supervisor’s Office reasonable accommodation requests are those who have previously submitted conference room at 5162 Valleypointe managed on a case by case basis. specific written comments regarding the Parkway, Roanoke, Virginia 24019. Resource Advisory Committee proposed project during the designated Written comments may be submitted as Positions Available: Those interested in opportunity for public comment in described under Supplementary serving as a member of the Resource accordance with 36 CFR 218.5(a). Issues Information. All comments, including Advisory Committee should contact the raised in objections must be based on names and addresses when provided, person listed under FOR FURTHER previously submitted timely, specific are placed in the record and are INFORMATION CONTACT. written comments regarding the available for public inspection and Dated: October 24, 2013. proposed project. Issues raised based on copying. The public may inspect Ken Landgraf, new information arising after the comments received at the George Acting Forest Supervisor. opportunity to comment will be Washington and Jefferson National considered as well. Forest Supervisor’s Office. Please call [FR Doc. 2013–25693 Filed 10–29–13; 8:45 am] BILLING CODE 3410–11–P Dated: October 21, 2013. ahead to 540–265–5100 to facilitate Joseph Norrell, entry into the building. Deputy Forest Supervisor, Santa Fe National FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF AGRICULTURE Forest. Michael Williams, Public Affairs [FR Doc. 2013–25708 Filed 10–29–13; 8:45 am] Specialist, Supervisor’s Office, 540– National Agricultural Statistics Service BILLING CODE 3410–11–P 265–5173, [email protected]. Individuals who use telecommunication Notice of Intent To Request Revision devices for the deaf (TDD) may call the and Extension of a Currently Approved DEPARTMENT OF AGRICULTURE Federal Information Relay Service Information Collection (FIRS) at 1–800–877–8339 between 8:00 AGENCY: Forest Service National Agricultural Statistics a.m. and 8:00 p.m., Eastern Standard Service, USDA. Time, Monday through Friday. Please Virginia Resource Advisory Committee ACTION: Notice and request for make requests in advance for sign comments. AGENCY: Forest Service, USDA. language interpreting, assistive listening ACTION: Notice of meetings. devices or other reasonable SUMMARY: In accordance with the accommodation for access to the facility Paperwork Reduction Act of 1995, this SUMMARY: The Virginia Resource or proceedings by contacting the person notice announces the intention of the Advisory Committee will meet in listed For Further Information. National Agricultural Statistics Service Roanoke, Virginia. The committee is SUPPLEMENTARY INFORMATION: (NASS) to request revision and authorized under the Secure Rural Additional information on the Virginia extension of a currently approved Schools and Community Self- Resource Advisory Committee can be information collection, the Equine Determination Act (Pub. L. 110–343) found by visiting the George Survey. Revision to burden hours may (the Act) and operates in compliance Washington and Jefferson National be needed due to changes in the size of with the Federal Advisory Committee Forests’ Web site at: www.fs.fed.us/r8/ the target population, sampling design, Act. The purpose of the committee is to gwj. Anyone who would like to bring and/or questionnaire length. improve collaborative relationships and related matters to the attention of the DATES: Comments on this notice must be to provide advice and recommendations committee may file written statements received by December 30, 2013 to be to the Forest Service concerning projects with the committee staff before or after assured of consideration. and funding consistent with Title II of the meeting. The agenda will include ADDRESSES: You may submit comments, the Act. The meeting is open to the time for people to make oral statements identified by docket number 0535–0227, public. The purpose of the meeting is to of three minutes or less. Individuals by any of the following methods: prioritize and recommend projects for wishing to make an oral statement • Email: [email protected]. funding. should request in writing within one Include docket number above in the DATES: The meetings will be held on week of each scheduled meeting to be subject line of the message. Fridays between December 6, 2013 and scheduled on the agenda. Written • Fax: (202) 720–6396.

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• Mail: Mail any paper, disk, or CD– Reduction Act of 1995 (Pub. L. 104–13) which has been conducted annually ROM submissions to: David Hancock, and Office of Management and Budget since 1974, is designed to collect NASS Clearance Officer, U.S. regulations at 5 CFR part 1320 (60 FR information on the number of Department of Agriculture, Room 5336 44978, August 29, 1995). NASS also employees, payroll, geographic location, South Building, 1400 Independence complies with OMB Implementation current operational status, and kind of Avenue SW., Washington, DC 20250– Guidance, ‘‘Implementation Guidance business for each establishment of 2024. for Title V of the E-Government Act, companies with more than one location. • Hand Delivery/Courier: Hand Confidential Information Protection and We have determined that annual data deliver to: David Hancock, NASS Statistical Efficiency Act of 2002 collected from this survey are needed to Clearance Officer, U.S. Department of (CIPSEA),’’ Federal Register, Vol. 72, aid the efficient performance of Agriculture, Room 5336 South Building, No. 115, June 15, 2007, p. 33376. essential governmental functions, and 1400 Independence Avenue SW., Estimate of Burden: Public reporting that these data have significant Washington, DC 20250–2024. burden for this collection of information application to the needs of the public FOR FURTHER INFORMATION CONTACT: is estimated to be between 20 and 25 and industry. The data derived from this Joseph T. Reilly, Associate minutes per response. survey are not available from any other Administrator, National Agricultural Respondents: Horse owners, breeders, source. Statistics Service, U.S. Department of trainers, boarders. ADDRESSES: The Census Bureau will Agriculture, (202) 720–4333. Copies of Estimated Number of Respondents: furnish report forms to organizations this information collection and related 40,000. included in the survey, and additional instructions can be obtained without Estimated Total Annual Burden on copies are available upon written charge from David Hancock, NASS Respondents: 15,000 hours. request to the Director, U.S. Census Clearance Officer, at (202) 690–2388. Comments: Comments are invited on: Bureau, Washington, DC 20233–0101. SUPPLEMENTARY INFORMATION: (a) Whether the proposed collection of FOR FURTHER INFORMATION CONTACT: Joy Title: Equine Survey. information is necessary for the proper P. Pierson, Economic Planning and OMB Number: 0535–0227. performance of the functions of the Coordination Division, U.S. Census Expiration Date: 03/31/2014. agency, including whether the Bureau, Room 8K319, Washington, DC Type of Request: To revise and extend information will have practical utility; 20233–6100 or by email at a currently approved information (b) the accuracy of the agency’s estimate [email protected]. collection for a period of three years. of the burden of the proposed collection SUPPLEMENTARY INFORMATION: Sections Abstract: To improve information of information including the validity of 182, 224, and 225 of Title 13, United regarding the equine industry, several the methodology and assumptions used; States Code (U.S.C.), authorize the State Departments of Agriculture are (c) ways to enhance the quality, utility, Census Bureau to undertake surveys expected to contract the National and clarity of the information to be necessary to furnish current data on the Agricultural Statistics Service to collected; and (d) ways to minimize the subjects covered by the major censuses. conduct an Equine Survey in their State burden of the collection of information Years that end in 2 and 7 are considered within the next 3 years. Equine on those who are to respond, through ‘‘census years.’’ In non-census years, activities offer unusually varied the use of appropriate automated, companies report only on basic opportunities for rural development. In electronic, mechanical, technological or company affiliation and operations of addition to providing the livelihood for other forms of information technology establishments not within the scope of breeders, trainers, veterinarians, and collection methods. All responses to the economic censuses. In these non- many others, the horse remains this notice will become a matter of census years, all multi-establishment important to recreation. The number of public record and be summarized in the companies with 250 or more employees operations, number of animals, and request for OMB approval. report survey information. Also, groups economic information will quantify the Signed at Washington, DC, September 27, of smaller companies that are divided importance of the equine industry to 2013. into panels may be selected to report State economies. Income data provides Joseph T. Reilly information for one of the non-census a view of the benefits that the industry Associate Administrator. years. Smaller companies may be provides to the State economy and a [FR Doc. 2013–25633 Filed 10–29–13; 8:45 am] selected if an organizational change ranking of its relative importance within BILLING CODE 3410–20–P within the company is indicated, or if both the agricultural sector and the they have been selected through the State’s total economic sector. The probability sampling procedure. The expenditure information provides data DEPARTMENT OF COMMERCE next economic census will be conducted regarding the multiplier effect of money for the year 2017. The data collected in from the equine industry, effects of Bureau of the Census the Company Organization Survey will wage rates paid to both permanent and be within the general scope, type, and part-time employees, and secondary [Docket Number 130926838–3838–01] character of those that are covered in the businesses supported by the industry. 2013 Company Organization Survey economic censuses. Forms NC–99001 Authority: These data will be (for multi-establishment companies) and collected under authority of 7 U.S.C. AGENCY: Bureau of the Census, NC–99007 (for single-location 2204(a). Individually identifiable data Commerce. companies) will be used to collect the collected under this authority are ACTION: Notice of Determination. desired data. governed by Section 1770 of the Food Notwithstanding any other provision Security Act of 1985 as amended, 7 SUMMARY: The Bureau of the Census of law, no person is required to respond U.S.C. 2276, which requires USDA to (Census Bureau) is conducting the 2013 to, nor shall a person be subject to a afford strict confidentiality to non- Company Organization Survey. The penalty for failure to comply with a aggregated data provided by survey’s data are needed, in part, to collection of information subject to the respondents. This Notice is submitted in update the multilocation companies in requirements of the Paperwork accordance with the Paperwork the Business Register. The survey, Reduction Act unless that collection of

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information displays a current valid ADDRESSES: The Census Bureau will basis for the formation of policy by Office of Management and Budget provide report forms to businesses various government agencies. Results (OMB) control number. In accordance included in the survey. Additional will be available for use for a variety of with the Paperwork Reduction Act, 44 copies are available upon written public and business needs including U.S.C., Chapter 35, the OMB approved request to the Director, U.S. Census economic and market analysis, company Forms NC–99001 and NC–99007 under Bureau, Washington, DC 20233–0101. performance, and forecasting future OMB Control Number 0607–0444. We FOR FURTHER INFORMATION CONTACT: demand. will furnish report forms to Aneta Erdie, Service Sector Statistics Notwithstanding any other provision organizations included in the survey, Division, at (301) 763–4841 or by email of law, no person is required to respond and additional copies are available upon at to, nor shall a person be subject to a written request to the Director, U.S. SUPPLEMENTARY INFORMATION: Sections penalty for failure to comply with, a Census Bureau, Washington, DC 20233– 182, 224, and 225 of Title 13 of the collection of information subject to the 0101. United States Code (U.S.C.) authorize requirements of the Paperwork I have, therefore, directed that the the Census Bureau to take surveys that Reduction Act (PRA) unless that 2013 Company Organization Survey be are necessary to produce current data on collection of information displays a conducted for the purpose of collecting the subjects covered by the major current valid Office of Management and these data. censuses. As part of this authorization, Budget (OMB) control number. In Dated: October 23, 2013. the Census Bureau conducts the ARTS accordance with the PRA, 44 U.S.C. John H. Thompson, to provide continuing and timely 3501–3521, OMB has approved the Director, Bureau of the Census. national statistical data on retail trade, Annual Retail Trade Survey under OMB [FR Doc. 2013–25604 Filed 10–29–13; 8:45 am] and accommodation and food services Control Number 0607–0013. Based upon the foregoing, I have BILLING CODE 3510–07–P activity for the period between economic censuses. ARTS is a directed that an annual survey be continuation of similar retail trade conducted for the purpose of collecting DEPARTMENT OF COMMERCE surveys conducted each year since 1951 these data. (except 1954). ARTS covers employer Dated: October 23, 2013. Bureau of the Census firms with establishments located in the John H. Thompson, [Docket Number 130925831–3831–01] United States and classified in the Retail Director, Bureau of the Census. Trade and/or Accommodation and Food [FR Doc. 2013–25610 Filed 10–29–13; 8:45 am] Annual Retail Trade Survey Services sectors as defined by the 2007 BILLING CODE 3510–07–P North American Industry Classification AGENCY: Bureau of the Census, Department of Commerce. System (NAICS). ARTS provides, on a comparable classification basis, annual ACTION: Notice of determination. DEPARTMENT OF COMMERCE sales, annual e-commerce sales, year- SUMMARY: The United States Department end inventories held inside and outside Foreign-Trade Zones Board the United States, total operating of Commerce’s Bureau of the Census [Order No. 1918] (Census Bureau) publishes this notice to expenses, purchases, accounts announce that the Director of the receivables, and, for selected industries, Approval of Expansion of Subzone Census Bureau has determined the need merchandise line sales for 2013. The 99E, Delaware City Refining Company to conduct the 2013 Annual Retail Census Bureau has determined that the LLC, New Castle County, Delaware Trade Survey (ARTS). ARTS covers conduct of this survey is necessary employer firms with establishments because these data are not available Pursuant to its authority under the Foreign- located in the United States and publicly on a timely basis from any Trade Zones Act of June 18, 1934, as classified in the Retail Trade and/or other sources. amended (19 U.S.C. 81a–81u), the Foreign- Accommodation and Food Services Firms are selected for the ARTS Trade Zones Board (the Board) adopts the following Order: sectors as defined by the 2007 North survey using a stratified random sample American Industry Classification based on industry groupings and annual Whereas, the State of Delaware System (NAICS). Through this survey, sales size. We will provide report forms (grantee of FTZ 99), through the the Census Bureau will collect data to the firms covered by this survey in Delaware Economic Development covering annual sales, annual e- February 2014, and will require their Office, has made application to the commerce sales, year-end inventories responses within 50 days after receipt. Board to expand Subzone 99E at the held inside and outside the United Firms’ responses to the ARTS survey are facilities of Delaware City Refining States, total operating expenses, required by law (Title 13 U.S.C. Company LLC, located in New Castle purchases, accounts receivables, and, Sections 182, 224, and 225). The sample County, Delaware (FTZ Docket B–38– for selected industries, merchandise line of firms selected will provide, with 2013, docketed 04–26–2013); sales. These data are collected to measurable reliability, statistics on Whereas, notice inviting public provide a sound statistical basis for the annual sales, annual e-commerce sales, comment has been given in the Federal formation of policy by various year-end inventories held inside and Register (78 FR 25698–25699, 05–02– government agencies. Results will be outside the United States, total 13) and the application has been available for use for a variety of public operating expenses, purchases, accounts processed pursuant to the FTZ Act and and business needs such as economic receivables, and, for selected industries, the Board’s regulations; and, and market analysis, company merchandise line sales for 2013. Whereas, the Board adopts the performance, and forecasting future The data collected in this survey will findings and recommendations of the demand. The Census Bureau conducts be similar to that collected in the past examiner, and finds that the the ARTS to provide continuing and and within the general scope and nature requirements of the FTZ Act and the timely national statistical data on retail of those inquiries covered in the Board’s regulations are satisfied; trade, and accommodation and food economic census. These data are Now, therefore, the Board hereby services activity annually. collected to provide a sound statistical approves the expansion of Subzone 99E

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at the facilities of the Delaware City OTR tires from the PRC.1 Under the convenience and customs purposes Refining Company LLC, located in New Order, Leo Rubber received the only; the written product description of Castle County, Delaware, as described in separate-rate respondent amended rate the scope of the order is dispositive. the application and Federal Register of 12.91 percent.2 Initiation of Changed Circumstances notice, subject to the FTZ Act and the On August 26, 2013, Shandong Review Board’s regulations, including Section Linglong filed a submission requesting 400.13. that the Department conduct a changed Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended (‘‘the Signed at Washington, DC, this 30th day of circumstances review of the Order to September 2013. confirm that Shandong Linglong is the Act’’), the Department will conduct a changed circumstances review upon Paul Piquado, successor-in-interest to Leo Rubber. In its submission, Shandong Linglong receipt of information concerning, or a Assistant Secretary of Commerce for Import request from, an interested party for a Administration, Alternate Chairman, Foreign- provided a board of directors resolution Trade Zones Board. authorizing the change of company review of an antidumping duty order which shows changed circumstances Andrew McGilvray, name; a notice from the Yantai City sufficient to warrant a review of the Executive Secretary. Administration for Industry and Commerce approving the name change order. In the event that the Department [FR Doc. 2013–25257 Filed 10–29–13; 8:45 am] from Leo Rubber to Shandong Linglong; determines that expedited action is BILLING CODE 3510–DS–P business licenses for Leo Rubber and warranted, 19 CFR 351.221(c)(3)(ii) Shandong Linglong, before and after the permits the Department to combine the notices of initiation and preliminary DEPARTMENT OF COMMERCE name change, respectively; legal structure charts and company results. International Trade Administration management before and after the name In accordance with 19 CFR change; and a list of suppliers before 351.216(d), the Department has [A–570–912] and after the name change.3 determined that the information submitted by Shandong Linglong Certain New Pneumatic Off-the-Road Scope of the Order constitutes sufficient evidence to Tires From the People’s Republic of The merchandise covered by this conduct a changed circumstances China: Initiation of Changed Order includes new pneumatic tires review. In an antidumping duty Circumstances Review designed for off-the-road and off- changed circumstances review AGENCY: Enforcement and Compliance, highway use, subject to certain involving a successor-in-interest formerly Import Administration, exceptions.4 The subject merchandise is determination, the Department typically International Trade Administration, currently classifiable under Harmonized examines several factors including, but Department of Commerce. Tariff Schedule of the United States not limited to, changes in: (1) (‘‘HTSUS’’) subheadings: 4011.20.10.25, Management; (2) production facilities; SUMMARY: The Department of Commerce 4011.20.10.35, 4011.20.50.30, (3) supplier relationships; and (4) (‘‘the Department’’) has received 5 information sufficient to warrant 4011.20.50.50, 4011.61.00.00, customer base. While no single factor initiation of a changed circumstances 4011.62.00.00, 4011.63.00.00, or combination of factors will review of the antidumping duty order 4011.69.00.00, 4011.92.00.00, necessarily be dispositive, the 4011.93.40.00, 4011.93.80.00, Department generally will consider the on certain new pneumatic off-the-road 4011.94.40.00, and 4011.94.80.00. The new company to be the successor to the tires (‘‘OTR tires’’) from the People’s HTSUS subheadings are provided for predecessor if the resulting operations Republic of China (‘‘PRC’’). Specifically, are essentially the same as those of the based upon a request filed by Shandong 1 See Certain New Pneumatic Off-the-Road Tires predecessor company.6 Thus, if the Linglong Tyre Co., Ltd. (‘‘Shandong From the People’s Republic of China: Notice of record demonstrates that, with respect Linglong’’), an exporter to the United Amended Final Affirmative Determination of Sales to the production and sale of the subject States of subject merchandise, the at Less Than Fair Value and Antidumping Duty merchandise, the new company Department is initiating a changed Order, 73 FR 51624 (September 4, 2008) (‘‘Order’’). 2 operates as the same business entity as circumstances review to determine On August 30, 2012, the Department published in the Federal Register a final determination, under the predecessor company, the whether Shandong Linglong is the section 129 of the Uruguay Round Agreements Act Department may assign the new successor-in-interest to Zhaoyuan Leo (‘‘URAA’’), regarding the antidumping duty company the cash deposit rate of its Rubber Co., Ltd. (‘‘Leo Rubber’’), a investigation on OTR Tires from the PRC. See predecessor.7 separate-rate respondent in the original Implementation of Determinations Under Section 129 of the Uruguay Round Agreements Act: Certain Based on the information provided in investigation. New Pneumatic Off-the-Road Tires; Circular its submission, Shandong Linglong has DATES: Effective: October 30, 2013. Welded Carbon Quality Steel Pipe; Laminated Woven Sacks; and Light-Walled Rectangular Pipe provided sufficient evidence to warrant FOR FURTHER INFORMATION CONTACT: and Tube From the People’s Republic of China, 77 a review to determine if it is the Andrew Medley or Eugene Degnan, AD/ FR 52683 (August 30, 2012). As part the successor-in-interest to Leo Rubber. CVD Operations, Office III, Enforcement Department’s final determination under section 129 Therefore, pursuant to section 751(b)(1) and Compliance, International Trade of the URAA, Leo Rubber was assigned a revised cash deposit rate of 12.83 percent. Id., 77 FR at of the Act and 19 CFR 351.216(d), we Administration, U.S. Department of 51627. Commerce, 1401 Constitution Avenue 3 See Letter from Shandong Linglong to the 5 See, e.g., Certain Activated Carbon From the NW., Washington, DC 20230; telephone: Department regarding New Pneumatic Off-The- People’s Republic of China: Notice of Initiation of 202–482–4987 or 202–482–0414, Road Tires from the People’s Republic of China: Changed Circumstances Review, 74 FR 19934, respectively. Request for Changed Circumstances Review (August 19935 (April 30, 2009). 26, 2013). 6 See, e.g., Notice of Initiation of Antidumping SUPPLEMENTARY INFORMATION: 4 For a complete description of the Scope of the Duty Changed Circumstances Review: Certain Order, see Certain New Pneumatic Off-the-Road Forged Stainless Steel Flanges from India, 71 FR Background Tires From the People’s Republic of China: Final 327 (January 4, 2006). Results of Antidumping Duty New Shipper Review; 7 See, e.g., Fresh and Chilled Atlantic Salmon On September 4, 2008, the 2011–2012, 78 FR 33341 (June 4, 4013), and From Norway; Final Results of Changed Department published in the Federal accompanying Issues and Decision Memorandum at Circumstances Antidumping Duty Administrative Register an antidumping duty order on ‘‘Scope’’. Review, 64 FR 9979, 9980 (March 1, 1999).

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are initiating a changed circumstances International Trade Administration, the United States (HTSUS) at item review.8 However, the Department finds Department of Commerce. numbers 2918.14.0000 and its necessary to issue a questionnaire SUMMARY: On June 7, 2013, the 2918.15.1000, 2918.15.5000 and requesting additional information for Department of Commerce (the 3824.90.9290. Although the HTSUS the review as provided for by 19 CFR Department) published the preliminary numbers are provided for convenience 351.221(b)(2). For that reason, the results of the third administrative and customs purposes, the full written Department is not conducting this review of the antidumping duty order scope description, as published in the review on an expedited basis by on citric acid and certain citrate salts antidumping duty order 2 and described publishing preliminary results in from Canada.1 The review covers one in the memorandum entitled ‘‘Issues conjunction with this notice of producer and exporter of the subject and Decision Memorandum for the initiation. The Department will publish merchandise, Jungbunzlauer Canada Final Results of the 2011–2012 in the Federal Register a notice of the Inc. (JBL Canada). The period of review Antidumping Duty Administrative preliminary results of the antidumping (POR) is May 1, 2011, through April 30, Review of Citric Acid and Certain duty changed circumstances review, in 2012. Citrate Salts from Canada’’ (Issues and accordance with 19 CFR 351.221(b)(4), Based on our analysis of the Decision Memorandum), remains and 19 CFR 351.221(c)(3)(i). That notice comments received, we have made no dispositive. will set forth the factual and legal changes to our calculations. Therefore, Period of Review conclusions upon which our the final results do not differ from the preliminary results are based and a preliminary results. The final weighted- The POR is May 1, 2011, through description of any action proposed. average dumping margin for JBL Canada April 30, 2012. Pursuant to 19 CFR 351.221(b)(4)(ii), is listed below in the ‘‘Final Results of interested parties will have an Review’’ section of this notice. Analysis of Comments Received opportunity to comment on the DATES: Effective: October 30, 2013. All issues raised in the case and preliminary results of review. In FOR FURTHER INFORMATION CONTACT: rebuttal briefs by parties are addressed accordance with 19 CFR 351.216(e), the Rebecca Trainor or Kate Johnson, AD/ in the memorandum entitled, ‘‘Issues Department will issue the final results CVD Operations, Office II, Enforcement and Decision Memorandum for the of its antidumping duty changed and Compliance, International Trade Final Results of the 2011–2012 circumstances review not later than 270 Administration, U.S. Department of Antidumping Duty Administrative days after the date on which the review Commerce, 14th Street and Constitution Review of Citric Acid and Certain is initiated, or not later than 45 days if Avenue NW., Washington, DC, 20230; Citrate Salts from Canada’’ (Issues and all parties to the proceeding agree to the telephone (202) 482–4007 or (202) 482– Decision Memo), which is dated outcome of the review. 4929, respectively. concurrently with, and adopted by, this This notice is published in SUPPLEMENTARY INFORMATION: notice. A list of the issues which parties accordance with sections 751(b)(1) and raised and to which we respond in the 777(i) of the Act and 19 CFR 351.216(b) Background Issues and Decision Memo is attached to and 351.221(b)(1). The review covers one producer and this notice as Appendix I. The Issues Dated: October 24, 2013. exporter of the subject merchandise, JBL and Decision Memo is a public Christian Marsh, Canada. On June 7, 2013, the document and is on file electronically Department published in the Federal Deputy Assistant Secretary for Antidumping via Enforcement and Compliance’s and Countervailing Duty Operations. Register the preliminary results of Antidumping and Countervailing Duty administrative review of the [FR Doc. 2013–25821 Filed 10–29–13; 8:45 am] Centralized Electronic Service System antidumping duty order on citric acid BILLING CODE 3510–DS–P (IA ACCESS). IA ACCESS is available to and certain citrate salts from Canada. registered users at http:// We invited parties to comment on the iaaccess.trade.gov and in the Central DEPARTMENT OF COMMERCE preliminary results of the review. In July Records Unit (CRU), room 7046 of the 2013, we received case and rebuttal main Department of Commerce International Trade Administration briefs from Archer Daniels Midland building. In addition, a complete Company, Cargill, Incorporated, and version of the Issues and Decision [A–122–853] Tate & Lyle Ingredients Americas LLC Memo can be accessed directly on the (collectively, the petitioners) and JBL Internet at http://www.trade.gov/ia/. Citric Acid and Certain Citrate Salts Canada. On July 8, 2013, the petitioners From Canada: Final Results of The signed Issues and Decision Memo requested that the Department conduct and the electronic version of the Issues Antidumping Duty Administrative a hearing in this review. On August 1, Review; 2011–2012 and Decision Memo are identical in 2013, the petitioners withdrew their content. hearing request. The Department has AGENCY: Enforcement and Compliance, conducted this administrative review in Changes Since the Preliminary Results formerly Import Administration, accordance with section 751 of the Tariff Act of 1930, as amended (the Act). Based on a review of the record and 8 As explained in the memorandum from the comments received from interested Assistant Secretary for Enforcement and Scope of the Order parties regarding our Preliminary Compliance, the Department has exercised its discretion to toll deadlines for the duration of the The merchandise covered by this Results, we have made no changes to closure of the Federal Government from October 1, order is citric acid and certain citrate our calculations. Therefore, the final through October 16, 2013. See Memorandum for the salts. The product is currently classified results do not differ from the Record from Paul Piquado, Assistant Secretary for preliminary results. Enforcement and Compliance, ‘‘Deadlines Affected in the Harmonized Tariff Schedule of by the Shutdown of the Federal Government’’ (October 18, 2013). Therefore, the deadline for the 1 See Citric Acid and Certain Citrate Salts from 2 Citric Acid and Certain Citrate Salts from initiation of this changed circumstances review has Canada: Preliminary Results of Antidumping Duty Canada and the People’s Republic of China: been extended by 16 days; the revised deadline is Administrative Review; 2011–2012, 78 FR 34338 Antidumping Duty Orders, 74 FR 25703 (May 29, now October 28, 2013. (June 7, 2013) (Preliminary Results). 2009) (Citric Acid Duty Orders).

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Final Results of the Review Countervailing Duty Proceedings: Notification to Interested Parties We determine that a weighted-average Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) (Assessment In accordance with 19 CFR dumping margin of 1.20 percent exists 351.305(a)(3), this notice serves as the for entries of subject merchandise that Policy Notice). This clarification will only reminder to parties subject to were produced and/or exported by JBL apply to entries of subject merchandise administrative protective order (APO) of Canada and that entered, or were during the POR produced by JBL withdrawn from warehouse, for Canada for which it did not know that their responsibility concerning the consumption during the period May 1, the merchandise it sold to the disposition of proprietary information 2011, through April 30, 2012. intermediary (e.g., a reseller, trading disclosed under APO, which continues company, or exporter) was destined for to govern business proprietary Assessment Rates the United States. In such instances, we information in this segment of the Purusant to 19 CFR 351.212(b)(1), the will instruct CBP to liquidate proceeding. Timely written notification Department shall determine, and U.S. unreviewed entries at the all-others rate of the return or destruction of APO Customs and Border Protection (CBP) effective during the POR if there is no materials, or conversion to judicial shall assess, antidumping duties on all rate for the intermediary involved in the protective order, is hereby requested. appropriate entries in accordance with transaction. See Assessment Policy Failure to comply with the regulations the final results of this review.3 Notice for a full discussion of this and the terms of an APO is a Pursuant to 19 CFR 356.8(a), the clarification. sanctionable violation. Department intends to issue appropriate appraisement instructions for the Cash Deposit Requirements Tolling of Deadlines respondent subject to this review directly to CBP 41 days after the date of The following cash deposit As explained in the memorandum publication of the final results of this requirements will be effective for all from the Assistant Secretary for review. shipments of the subject merchandise Enforcement and Compliance, the As we stated in the Preliminary entered, or withdrawn from warehouse, Department has exercised its discretion Results, we determined it is appropriate for consumption on or after the to toll deadlines for the duration of the to calculate importer-specific per-unit publication date of the final results of closure of the Federal Government from duty assessment rates.4 We calculated this administrative review, as provided October 1, through October 16, 2013. importer-specific per-unit duty by section 751(a)(2)(C) of the Act: (1) See Memorandum for the Record from assessment rates by aggregating the total The cash deposit rate for JBL Canada Paul Piquado, Assistant Secretary for amount of antidumping duties will be that established in the final Enforcement and Compliance, calculated for the examined sales and results of this review, (2) for previously ‘‘Deadlines Affected by the Shutdown of dividing this amount by the total reviewed or investigated companies not the Federal Government’’ (October 18, quantity of those sales. To determine participating in this review, the cash 2013). Therefore, all deadlines in this whether the per-unit duty assessment deposit rate will continue to be the segment of the proceeding have been rates are de minimis, in accordance with company-specific rate published for the extended by 16 days. If the new the requirement set forth in 19 CFR most recent period; (3) if the exporter is deadline falls on a non-business day, in 351.106(c)(1), we calculated customer- accordance with the Department’s specific ad valorem ratios based on the not a firm covered in this review, a estimated entered value. previous review, or the original less- practice, the deadline will become the We will instruct CBP to assess than-fair-value (LTFV) investigation, but next business day. The revised deadline antidumping duties on all appropriate the manufacturer is, the cash deposit for the final results of this review is now entries covered by this review if any rate will be the rate established for the October 23, 2013. importer-specific assessment rate most recent period for the manufacturer This administrative review and notice calculated in the final results of this of the merchandise; and (4) the cash are published in accordance with review is above de minimis (i.e., at or deposit rate for all other manufacturers sections 751(a)(1) and 777(i)(1) of the above 0.50 percent). Pursuant to 19 CFR or exporters will continue to be 23.21 Act. 351.106(c)(2), we will instruct CBP to percent, the all-others rate made liquidate without regard to antidumping effective by the LTFV investigation. See Dated: October 23, 2013. duties any entries for which the Citric Acid Duty Orders, 74 FR 25703. Paul Piquado, assessment rate is de minimis (i.e., less These deposit requirements, when Assistant Secretary for Enforcement and than 0.50 percent). The final results of imposed, shall remain in effect until Compliance. this review shall be the basis for the further notice. Appendix I assessment of antidumping duties on entries of merchandise covered by the Notification to Importers List of Topics Discussed in the Issues and final results of this review and for future This notice also serves as a final Decision Memorandum deposits of estimated duties, where reminder to importers of their 1. Price Adjustment of a Business Proprietary applicable. responsibility under 19 CFR 351.402(f) Nature for Certain Constructed Export The Department clarified its to file a certificate regarding the Price Sales ‘‘automatic assessment’’ regulation on reimbursement of antidumping duties 2. Allocation of U.S. Indirect Selling May 6, 2003. See Antidumping and prior to liquidation of the relevant Expenses entries during this review period. 3. Calculation of Home Market Indirect 3 In these final results, the Department applied Selling Expensees the assessment rate calculation method adopted in Failure to comply with this requirement Antidumping Proceedings: Calculation of the could result in the Secretary’s [FR Doc. 2013–25818 Filed 10–29–13; 8:45 am] Weighted-Average Dumping Margin and presumption that reimbursement of BILLING CODE 3510–DS–P Assessment Rate in Certain Antidumping Proceedings: Final Modification, 77 FR 8101 antidumping duties occurred and the (February 14, 2012). subsequent assessment of double 4 See Preliminary Results, 78 FR at 34339. antidumping duties.

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DEPARTMENT OF COMMERCE Intended Use: The instrument will be DEPARTMENT OF COMMERCE used to create transition metal oxides, International Trade Administration including oxides of iron, manganese, International Trade Administration copper, cobalt, vanadium, iridium, Application(s) for Duty-Free Entry of ruthenium, rhenium, titanium, nickel, [C–489–502] Scientific Instruments and zinc. It will also be used to grow Circular Welded Carbon Steel Pipes Pursuant to Section 6(c) of the crystals of intermetallic phases, which and Tubes From Turkey: Final Results Educational, Scientific and Cultural are non-oxides of these same transition of Countervailing Duty Administrative Materials Importation Act of 1966 (Pub. metals, alloyed with lanthanide metals Review; Calendar Year 2011 L. 89–651, as amended by Pub. L. 106– and/or main group metals (e.g., Al, Si, 36; 80 Stat. 897; 15 CFR part 301), we Bi). These materials will be created to AGENCY: Enforcement and Compliance invite comments on the question of understand a variety of physical (Formerly Import Administration), whether instruments of equivalent phenomena including International Trade Administration, scientific value, for the purposes for superconductivity, metal-insulator Department of Commerce. which the instruments shown below are transitions, and magnetism. With the SUMMARY: On April 9, 2013, the intended to be used, are being crystals grown on the instrument, a Department of Commerce (the manufactured in the United States. variety of tests will be performed Department) published in the Federal Comments must comply with 15 CFR including magnetic measurements, Register its preliminary results of 301.5(a)(3) and (4) of the regulations and structural determination by x-ray or administrative review of the be postmarked on or before November neutron scattering, and electrical countervailing duty (CVD) order on 19, 2013. Address written comments to circular welded carbon steel pipes and Statutory Import Programs Staff, Room transport. The unique characteristics of this instrument required for the research tubes (steel pipes and tubes) from 3720, U.S. Department of Commerce, Turkey for the January 1, 2011, through Washington, DC 20230. Applications objectives include operation at pressures of oxygen or inert gases up to December 31, 2011, period of review may be examined between 8:30 a.m. and 1 150 atm, measurement of image zone (POR). The Department preliminarily 5:00 p.m. at the U.S. Department of found that the following producers/ Commerce in Room 3720. using pyrometric probes, and cleansing ¥ exporters of subject merchandise Docket Number: 13–034. Applicant: of inert gas stream to better than 10 12 ppm oxygen with monitoring during covered by this review had de minimis University of Minnesota—Twin Cities, net subsidy rates for the POR: (1) process. Justification for Duty-Free 421 Washington Avenue SE., Borusan Group, Borusan Mannesmann Entry: There are no instruments of the Minneapolis, MN 55455. Instrument: Boru Sanayi ve Ticaret A.S. (BMB), and same general category manufactured in Diode-Pumped Solid-State Femtosecond Borusan Istikbal Ticaret T.A.S. (Istikbal) the United States. Application accepted Laser. Manufacturer: Light Conversion, (collectively, Borusan); (2) Erbosan Lithuania. Intended Use: The by Commissioner of Customs: August Erciyas Boru Sanayi ve Ticaret A.S. instrument will be used to study non- 19, 2013. (Erbosan AS) and Erbosan Erciyas Pipe equilibrium materials processes ranging Docket Number: 13–037. Applicant: Industry and Trade Co. Kayseri Free spatially from the atomic-scale up to Georgia Health Sciences University, Zone Branch (Erbosan FZB), micrometers and temporally from 1120 15th Street, Augusta, GA 30912. (collectively Erbosan), and (3) Tosyali femtoseconds to seconds, including Instrument: Imaging System/Digital dis Ticaret A.S. (Tosyali) and Toscelik thermal transport, energy conversion Microscope & Accessories. Profil ve Sac Endustrisi A.S. (Toscelik (e.g., light to heat), crystallization, Manufacturer: Till Photonics, Germany. Profil), (collectively, Toscelik). The melting, phase transformations, fracture, Intended Use: The instrument will be Department has now completed the and other dynamic events. The unique used for fluorescence imaging of cellular administrative review in accordance characteristics of the instrument organelles and calcium flux, photo- with section 751(a) of the Tariff of 1930, required for the research objectives activation and photo-bleaching as amended (the Act). Based on our include a variable repetition rate from analysis of comments received, the net single-shot to 1 MHz controlled with fluorescent proteins to study cellular organelles (mitochondria) and subsidy rates for Borusan and Erbosan, TTL input for external triggering or via although revised, continue to be de computer interface, 0.2 mJ/pulse (<30 intracellular ion flux. The unique characteristics of the instrument include minimis. The Department has also kHz), 6 Watts at 1 MHz, collinear output revised the net subsidy rate for Toscelik. from a harmonics module of fast wavelength change, a dichromotome system, and two different Further discussion of our analysis of the fundamental (1030 nm), second comments received is provided in the harmonic (515 nm), and third harmonic light sources that are incorporated and readily switchable, incorporated into a accompanying Final Decision (343 nm) with additional optics for Memorandum.2 The final net subsidy single unit of a wide field fluorescence operation at low and high repetition rates for Borusan, Erbosan, and Toscelik rates. Justification for Duty-Free Entry: microscope. Justification for Duty-Free There are no instruments of the same Entry: There are no instruments of the 1 See Circular Welded Carbon Steel Pipes and general category manufactured in the same general category manufactured in Tubes from Turkey: Preliminary Results of United States. Application accepted by the United States. Application accepted Countervailing Duty Administrative Review; Commissioner of Customs: July 30, by Commissioner of Customs: August Calendar Year 2011, 78 FR 21107 (April 9, 2013) 2013. 22, 2013. (Preliminary Results). 2 Docket Number: 13–036. Applicant: See Decision Memorandum for Final Results of Dated: October 22, 2013. Countervailing Duty (CVD) Administrative Review: UChicago Argonne, 9700 South Cass Gregory W. Campbell, Circular Welded Carbon Steel Pipes and Tubes from Avenue, Lemont, IL 60439. Instrument: Turkey from Christian Marsh, Deputy Assistant High pressure crystal growth furnace Director of Subsidies Enforcement, Secretary for Antidumping and Countervailing Duty Enforcement and Compliance. Operations, to Paul Piquado, Assistant Secretary for with Siemens programmable logic Enforcement and Compliance dated concurrently [FR Doc. 2013–25599 Filed 10–29–13; 8:45 am] controller. Manufacturer: SCIDRE— with these final results (Final Decision Scientific Instruments, Germany. BILLING CODE 3510–DS–P Memorandum).

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are listed below in the ‘‘Final Results of electronically via IA ACCESS. IA cash deposits at the most recent Review’’ section. ACCESS is available to registered users company-specific or country-wide rate DATES: Effective: October 30, 2013. at http://iaaccess.trade.gov and in the applicable to the company. Accordingly, FOR FURTHER INFORMATION CONTACT: Central Records Unit, room 7046 of the the cash deposit rates that will be Jolanta Lawska at 202–482–8362 (for main Department of Commerce applied to companies covered by this Borusan and Erbosan) at 202–482–8362 building. In addition, a complete order, but not examined in this review, and John Conniff at 202–482–1009 (for version of the Final Decision are those established in the most Toscelik), AD/CVD Operations, Office Memorandum can be accessed directly recently completed administrative III, Enforcement and Compliance, on the Internet at http:// proceeding for each company. The cash International Trade Administration, enforcement.ita.doc.gov/frn/index.html. deposit rates for all companies not U.S. Department of Commerce, 14th The signed Final Decision covered by this review are not changed Street and Constitution Avenue NW., Memorandum and the electronic by the results of this review, and remain Washington, DC 20230. versions of the Final Decision in effect until further notice. Memorandum are identical in content. Background Return or Destruction of Proprietary Final Results of Review Information On March 7, 1986, the Department published in the Federal Register the Consistent with the Preliminary This notice also serves as a reminder CVD order on steel pipes and tubes from Results, the total net subsidy rate for to parties subject to administrative Turkey.3 On April 9, 2013, the Erbosan remained 0.30 percent ad protective order (APO) of their Department published in the Federal valorem. In these final results, we have responsibility concerning the Register the preliminary results for this revised Borusan’s total net subsidy rate disposition of proprietary information review. In the Preliminary Results, we to 0.19 percent ad valorem. Pursuant to disclosed under APO in accordance invited interested parties to submit case 19 CFR 351.106(c), the calculated rates with 19 CFR 351.305(a)(3). Timely briefs commenting on the preliminary for Erbosan and Borusan are de minimis. written notification of the return/ results and to request a hearing.4 On We have also revised the net subsidy destruction of APO materials or May 9, 2013, we received case briefs rate for Toscelik. In these final results, conversion to judicial protective order is from Borusan and Petitioners.5 On May we have calculated a total net subsidy hereby requested. Failure to comply 14, 2013, we received a rebuttal brief rate of 0.83 percent for Toscelik. with the regulations and the terms of an from Toscelik. We did not hold a Assessment Rates/Cash Deposits APO is a sanctionable violation. hearing in this review, as none was We are issuing and publishing these The Department intends to issue requested by interested parties. final results in accordance with sections assessment instructions to U.S. Customs 751(a)(1) and 777(i)(1) of the Act. Scope of Order and Border Protection (CBP) 15 days Dated: October 23, 2013. The products covered by this order after the date of publication of these Paul Piquado, are certain welded carbon steel pipe and final results, to liquidate shipments of tube with an outside diameter of 0.375 subject merchandise by Borusan and Assistant Secretary for Enforcement and Compliance. inch or more, but not over 16 inches, of Erbosan entered, or withdrawn from any wall thickness (pipe and tube) from warehouse, for consumption on or after Appendix January 1, 2011, through December 31, Turkey. These products are currently I. Methodology and Background Information provided for under the Harmonized 2011, without regard to CVDs because a Tariff Schedule of the United States de minimis subsidy rate was calculated Subsidies Valuation Information (HTSUS) as item numbers 7306.30.10, for each company. We will also instruct A. Attribution of Subsidies 7306.30.50, and 7306.90.10. Although CBP to continue to suspend liquidation B. Benchmark Interest Rates but to collect no cash deposits of the HTSUS subheadings are provided II. Analysis of Programs estimated CVDs on shipments of the for convenience and customs purposes, I. Programs Determined To Be the written description of the subject merchandise by Borusan and Erbosan, entered, or withdrawn from Countervailable merchandise is dispositive. A. Deduction from Taxable Income for warehouse, for consumption on or after Analysis of Comments Received Export Revenue the date of publication of the final B. Short Term Pre-Shipment Rediscount All issues raised in the case and results of this review. Program rebuttal briefs by parties to this For Toscelik, the Department intends C. Law 5084: Withholding of Income Tax administrative review are addressed in to issue assessment instructions to CBP on Wages and Salaries the Final Decision Memorandum, dated 15 days after the date of publication of D. Law 5084: Incentive for Employers’ concurrently with this notice and which these final results of review to liquidate Share in Insurance Premiums E. Law 5084: Allocation of Free Land and is hereby adopted by this notice. A list shipments of subject merchandise by Toscelik entered, or withdrawn from Purchase of Land for Less Than of the issues which parties have raised, Adequate Remuneration (LTAR) and to which we have responded in the warehouse, for consumption on or after F. Law 5084: Energy Support Final Decision Memorandum, is January 1, 2011, through December 31, G. Organized Industrial Zone (OIZ): attached to this notice as an Appendix. 2011, at the ad valorem assessment rate Exemption From Property Tax The Final Decision Memorandum is a listed above. We will also instruct CBP H. Corporate Income Tax Exemption Under public document and is on file to collect cash deposits for Toscelik at the Free Zones Law the CVD cash deposit rate indicated I. Investment Encouragement Program (IEP): Customs Duty Exemptions 3 See Countervailing Duty Order: Certain Welded above on all shipments of the subject II. Programs Determined To Not Confer Carbon Steel Pipe and Tube Products From Turkey, merchandise entered, or withdrawn Countervailable Benefits During the POR 51 FR 7984 (March 7, 1986). from warehouse, for consumption on or 4 A. Inward Processing Certificate See Preliminary Results. after the date of publication of these 5 Petitioners in this review are Wheatland Tube Exemption Company (Wheatland), Allied Tube and Conduit final results of review. B. Provision of Buildings and Land Use Corporation and TMK IPSCO, and United States For all non-reviewed companies, we Rights for LTAR Under the Free Zones Steel Corporation (collectively, Petitioners). will instruct CBP to continue to collect Law

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III. Programs Found Not Countervailable Remuneration under the Free Zones Law The DMAC–ST was subsequently During the POR Program Countervailable chartered by the IOOC in December A. Deductions on Social Security Payments Toscelik 2010 to assist with technical guidance Program Under Law 5510 with respect to the management of B. Deductions on Social Security Payments Comment 4: Benchmark Used to Calculate ocean data collected under the U.S. Program Under Law 5921 the Benefit under the Osmaniye Organized ® C. Customs Duties and Value-Added Tax Industrial Zone Program Used by Toscelik IOOS . The IOOC’s Web site (http:// (VAT) Exemptions Under the Free Zones Comment 5: Treatment of Investment www.iooc.us/) contains more Law Encouragement Program (IEP) information about their charter and IV. Programs Determined To Not Be Used [FR Doc. 2013–25816 Filed 10–29–13; 8:45 am] responsibilities. A summary of the During the POR BILLING CODE 3510–DS–P DMAC–ST meetings, documentations, A. Stamp Duties and Fees Exemptions activities and terms of reference can also Under the Free Zones Law be found on-line, at the following B. Other Programs Not Used • Post-Shipment Export Loans DEPARTMENT OF COMMERCE address: http://www.iooc.us/committee- • Export Credit Bank of Turkey Buyer news/dmac. Credits National Oceanic and Atmospheric Authority: 33 U.S.C. 3601–3610. • Subsidized Turkish Lira Credit Facilities Administration • Subsidized Credit for Proportion of Dated: October 21, 2013. Fixed Expenditures Interagency Ocean Observation Zdenka S. Willis, • Subsidized Credit in Foreign Currency Committee, Meeting of the Data Director, Integrated Ocean Observing System • Regional Subsidies Management and Communications Program. • VAT Support Program (Incentive Steering Team [FR Doc. 2013–25706 Filed 10–29–13; 8:45 am] Premium on Domestically Obtained BILLING CODE 3510–JE–P Goods) AGENCY: National Ocean Service (NOS), • IEP: VAT Exemptions National Oceanic and Atmospheric • IEP: Reductions in Corporate Taxes Administration (NOAA), U.S. • DEPARTMENT OF COMMERCE IEP: Interest Support Department of Commerce (DOC). • IEP: Social Security Premium Support • IEP: Land Allocation ACTION: Notice of open meeting. National Oceanic and Atmospheric • National Restructuring Program Administration • SUMMARY: NOAA’s Integrated Ocean Regional Incentive Scheme: Reduced ® RIN 0648–XC893 Corporate Tax Rates Observing System (IOOS ) Program • publishes this notice on behalf of the Regional Incentive Scheme: Social Takes of Marine Mammals Incidental to Security Premium Contribution for Interagency Ocean Observation Employees Committee (IOOC) to announce a formal Specified Activities; Taking Marine • Regional Incentive Scheme: Allocation of meeting of the IOOC’s Data Management Mammals Incidental to Rocky Intertidal State Land and Communications Steering Team Monitoring Surveys Along the Oregon • Regional Incentive Scheme: Interest (DMAC–ST). The DMAC–ST and California Coasts Support membership is comprised of IOOC- • OIZ: Waste Water Charges AGENCY: National Marine Fisheries • OIZ: Exemptions From Customs Duties, approved federal agency representatives Service (NMFS), National Oceanic and VAT, and Payments for Public Housing and non-federal participants Atmospheric Administration (NOAA), Fund, for Investments for Which an representing academic, non-profit, Commerce. Income Certificate Is Received private, regional and state sectors who ACTION: • Notice; proposed incidental OIZ: Credits for Research and will discuss issues outlined in the harassment authorization; request for Development Investments, agenda. Environmental Investments, Certain comments. DATES: The meeting is scheduled for Technology Investments, Certain SUMMARY: November 19, 2013, between 9 a.m. and NMFS has received an ‘‘Regional Development’’ Investments, application from the Partnership for and Investments Moved From Developed 5 p.m. and November 20, 2013, between Regions to ‘‘Regions of Special Purpose’’ 9 a.m. and noon, Eastern Standard Interdisciplinary Study of Coastal • Foreign Trade Companies Short Term Time. Oceans (PISCO) at the University of Export Credits California (UC) Santa Cruz for an • Pre-Export Credits ADDRESSES: The meeting will be Incidental Harassment Authorization • Pre-shipment Export Credits broadcast via a conference telephone (IHA) to take marine mammals, by • OIZ: Exemption From Building and call. Public access is available at the harassment, incidental to rocky Construction Charges Consortium for Ocean Leadership, 1201 • intertidal monitoring surveys. Pursuant OIZ: Exemption From Amalgamation New York Avenue NW., 4th Floor, to the Marine Mammal Protection Act and Allotment Transaction Charges Washington, DC 20005. (MMPA), NMFS is requesting comments Analysis of Comments FOR FURTHER INFORMATION CONTACT: For on its proposal to issue an IHA to PISCO Borusan further information about this notice, to incidentally take, by Level B please contact the U.S. IOOS Program harassment only, marine mammals Comment 1: Whether the Department Should (Charles Alexander, 301–427–2429, Grant an Offset to the Gross Subsidy Found during the specified activity. on Turkish Eximbank Loans for the Bank [email protected]) or the DATES: Comments and information must Guarantee Fees IOOC Support Office (Joshua Young, be received no later than November 29, Comment 2: Whether the Department Erred 202–787–1622, jyoung@ 2013. in Including Certain Eximbank Loans in oceanleadership.org). ADDRESSES: Comments on the the Department’s Preliminary Benefit SUPPLEMENTARY INFORMATION: The IOOC application should be addressed to Calculations was established by Congress under the Michael Payne, Chief, Permits and Erbosan Integrated Coastal and Ocean Conservation Division, Office of Comment 3: Whether the Department Should Observation System Act of 2009 and Protected Resources, National Marine Find Provision of Buildings and Land Use created under the National Ocean Fisheries Service, 1315 East-West Rights for Less than Adequate Research Leadership Council (NORLC). Highway, Silver Spring, MD 20910. The

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mailbox address for providing email from the specified activity that cannot to two times per year over a 4–6 hour comments is [email protected]. be reasonably expected to, and is not period during a negative low tide series. NMFS is not responsible for email reasonably likely to, adversely affect the This IHA, if issued, though, would only comments sent to addresses other than species or stock through effects on be effective for a 12-month period from the one provided here. Comments sent annual rates of recruitment or survival.’’ the date of its issuance. The following via email, including all attachments, Section 101(a)(5)(D) of the MMPA specific aspects of the proposed must not exceed a 25-megabyte file size. established an expedited process by activities are likely to result in the take Instructions: All comments received which citizens of the United States can of marine mammals: presence of survey are a part of the public record and will apply for an authorization to personnel near pinniped haulout sites generally be posted to http:// incidentally take small numbers of and approach of survey personnel www.nmfs.noaa.gov/pr/permits/ marine mammals by harassment. towards hauled out pinnipeds. Take, by incidental.htm without change. All Section 101(a)(5)(D) establishes a 45-day Level B harassment only, of individuals Personal Identifying Information (e.g., time limit for NMFS review of an of three species of marine mammals is name, address) voluntarily submitted by application followed by a 30-day public anticipated to result from the specified the commenter may be publicly notice and comment period on any activity. accessible. Do not submit Confidential proposed authorizations for the incidental harassment of marine Description of the Specified Activity Business Information or otherwise and Specified Geographic Region sensitive or protected information. mammals. Within 45 days of the close An electronic copy of the application of the comment period, NMFS must PISCO focuses on understanding the containing a list of the references used either issue or deny the authorization. nearshore ecosystems of the U.S. west in this document and associated Except with respect to certain activities coast through a number of Environmental Assessment (EA) may be not pertinent here, the MMPA defines interdisciplinary collaborations. PISCO obtained by writing to the address ‘‘harassment’’ as: ‘‘any act of pursuit, integrates long-term monitoring of specified above, telephoning the contact torment, or annoyance which (i) has the ecological and oceanographic processes listed below (see FOR FURTHER potential to injure a marine mammal or at dozens of sites with experimental INFORMATION CONTACT), or visiting the marine mammal stock in the wild [Level work in the lab and field. A short internet at: http://www.nmfs.noaa.gov/ A harassment]; or (ii) has the potential description of each project is contained pr/permits/incidental.htm. PISCO’s to disturb a marine mammal or marine here. Additional information can be 2012–2013 monitoring report can also mammal stock in the wild by causing found in PISCO’s application (see be found at this Web site. Documents disruption of behavioral patterns, ADDRESSES). Community Structure Monitoring cited in this notice may also be viewed, including, but not limited to, migration, involves the use of permanent photoplot by appointment, during regular business breathing, nursing, breeding, feeding, or quadrats which target specific algal and hours, at the aforementioned address. sheltering [Level B harassment].’’ invertebrate assemblages (e.g. mussels, FOR FURTHER INFORMATION CONTACT: Summary of Request rockweeds, barnacles). Each photoplot Candace Nachman, Office of Protected On July 10, 2013, NMFS received an is photographed and scored for percent Resources, NMFS, (301) 427–8401. application from PISCO for the taking of cover. The Community Structure SUPPLEMENTARY INFORMATION: marine mammals incidental to rocky Monitoring approach is based largely on Background intertidal monitoring surveys along the surveys that quantify the percent cover Oregon and California coasts. NMFS and distribution of algae and Sections 101(a)(5)(A) and (D) of the determined that the application was invertebrates that constitute these MMPA (16 U.S.C. 1361 et seq.) direct adequate and complete on July 31, 2013. communities. This approach allows the Secretary of Commerce to allow, In December 2012, NMFS issued a 1- researchers to quantify both the patterns upon request, the incidental, but not year IHA to PISCO to take marine of abundance of targeted species, as well intentional, taking of small numbers of mammals incidental to these same as characterize changes in the marine mammals by U.S. citizens who proposed activities (77 FR 72327, communities in which they reside. Such engage in a specified activity (other than December 5, 2012). This IHA will expire information provides managers with commercial fishing) within a specified on December 2, 2013. insight into the causes and geographical region if certain findings The research group at UC Santa Cruz consequences of changes in species are made and either regulations are operates in collaboration with two large- abundance. Each Community Structure issued or, if the taking is limited to scale marine research programs: PISCO site is surveyed over a 1-day period harassment, a notice of a proposed and the Multi-agency Rocky Intertidal during a low tide series one to two times authorization is provided to the public Network. The research group at UC a year. Sites, location, number of times for review. Santa Cruz (PISCO) is responsible for sampled per year, and typical sampling Authorization for incidental takings many of the ongoing rocky intertidal months for each site are presented in shall be granted if NMFS finds that the monitoring programs along the Pacific Table 1 in PISCO’s application (see taking will have a negligible impact on coast. Monitoring occurs at rocky ADDRESSES). the species or stock(s), will not have an intertidal sites, often large bedrock Biodiversity Surveys, which are part unmitigable adverse impact on the benches, from the high intertidal to the of a long-term monitoring project and availability of the species or stock(s) for water’s edge. Long-term monitoring are conducted every 3–5 years at subsistence uses (where relevant), and if projects include Community Structure established sites, involve point contact the permissible methods of taking, other Monitoring, Intertidal Biodiversity identification along permanent means of effecting the least practicable Surveys, Marine Protected Area transects, mobile invertebrate quadrat impact on the species or stock and its Baseline Monitoring, Intertidal counts, sea star band counts, and tidal habitat, and requirements pertaining to Recruitment Monitoring, and Ocean height topographic measurements. Table the mitigation, monitoring and reporting Acidification. Research is conducted 2 in PISCO’s application (see of such takings are set forth. NMFS has throughout the year along the California ADDRESSES) lists established defined ‘‘negligible impact’’ in 50 CFR and Oregon coasts and will continue biodiversity sites in Oregon and 216.103 as ‘‘. . .an impact resulting indefinitely. Most sites are sampled one California. No Biodiversity Surveys are

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planned to be conducted during the 12- several wave energy conversion device www.nmfs.noaa.gov/pr/sars/pdf/ month period that this proposed IHA arrays. This baseline will be used to po2012.pdf. Additional information on would be effective (if issued). assess the effects of the arrays on the status, distribution, seasonal In September 2007, the state of nearshore communities. distribution, and life history can also be California began establishing a network found in PISCO’s application. of Marine Protected Areas along the Specified Geographic Location and California coast as part of the Marine Activity Timeframe Northern Elephant Seal Life Protection Act (MLPA). Under PISCO’s research is conducted Northern elephant seals are not listed baseline monitoring programs funded by throughout the year along the California as threatened or endangered under the Sea Grant and the Ocean Protection and Oregon coasts. Most sites are Endangered Species Act (ESA), nor are Council, PISCO established additional sampled one to two times per year over they categorized as depleted under the intertidal monitoring sites in the Central a 1-day period (4–6 hours per site) MMPA. The estimated population of the Coast (Table 3 in PISCO’s application), during a negative low tide series. Due to California breeding stock is North Central Coast (Table 4 in PISCO’s the large number of research sites, approximately 124,000 animals with a application), and South Coast (Table 5 scheduling constraints, the necessity for minimum estimate of 74,913 (Carretta in PISCO’s application) study regions. negative low tides and favorable et. al., 2013). Baseline characterization of newly weather/ocean conditions, exact survey Northern elephant seals range in the established areas involves sampling of dates are variable and difficult to eastern and central North Pacific Ocean, these new sites, as well as established predict. Table 1 in PISCO’s application from as far north as Alaska and as far sites both within and outside of marine (see ADDRESSES) outlines the typical south as Mexico. Northern elephant protected areas. These sites were sampling season for the various seals spend much of the year, generally sampled using existing Community locations. Some sampling is anticipated about nine months, in the ocean. They Structure and Biodiversity protocols for to occur in all months, except for are usually underwater, diving to depths consistency. Resampling of newly January, August, and September. of about 330–800 m (1,000–2,500 ft) for established sites may take place every 5 The intertidal zones where PISCO 20- to 30-minute intervals with only years as part of future marine protected conducts intertidal monitoring are also short breaks at the surface. They are area evaluation. areas where pinnipeds can be found rarely seen out at sea for this reason. Intertidal recruitment monitoring hauled out on the shore at or adjacent While on land, they prefer sandy collects data on invertebrate larval to some research sites. Accessing beaches. recruitment. Mussel and other bivalve portions of the intertidal habitat may Northern elephant seals breed and recruits are collected in mesh pot- cause incidental Level B (behavioral) give birth in California (U.S.) and Baja scrubbers bolted into the substrate. harassment of pinnipeds through some California (Mexico), primarily on Barnacle recruits and cyprids are unavoidable approaches if pinnipeds offshore islands (Stewart et al., 1994), collected on PVC plates covered in non- are hauled out directly in the study from December to March (Stewart and slip tape and bolted to the substrate. plots or while biologists walk from one Huber, 1993). Males feed near the Both are collected once a month and location to another. No motorized eastern Aleutian Islands and in the Gulf processed in the lab. Intertidal equipment is involved in conducting of Alaska, and females feed further recruitment monitoring is currently these surveys. The species for which south, south of 45° N (Stewart and conducted on a monthly basis at two Level B harassment is requested are: Huber, 1993; Le Boeuf et al., 1993). central California sites: Terrace Point California sea lions (Zalophus Adults return to land between March and Hopkins. californianus californianus); harbor and August to molt, with males The Ocean Margin Ecosystems Group seals (Phoca vitulina richardii); and returning later than females. Adults for Acidification Studies is a National northern elephant seals (Mirounga return to their feeding areas again Science Foundation funded project that angustirostris). between their spring/summer molting involves research at eight sites along the and their winter breeding seasons. California Current upwelling system Description of Marine Mammals in the During PISCO research activities, the from Southern California into Oregon. Area of the Specified Activity maximum number of northern elephant PISCO is responsible for research at Several pinniped species can be seals observed at a single site was at three of these sites—Hopkins, Terrace found along the California and Oregon least 10 adults plus an unknown Point, and Soberanes—located in the coasts. The three that are most likely to number of pups. These were observed Monterey Bay region of mainland occur at some of the research sites are offshore of Piedras Blancas. A small California. The intention of this California sea lion, harbor seal, and group of five adult elephant seals and collaboration is to monitor oceanic pH northern elephant seal. On rare five pups has been observed in the on large spatial and temporal scales and occasions, PISCO researchers have seen vicinity of our site at Piedras Blancas, to determine if any relationship exists very small numbers (i.e., five or fewer) and one elephant seal has been observed between changing ocean chemistry and of Steller sea lions at one of the at Pigeon Point. the state of intertidal calcifying sampling sites. These sightings are rare. organisms. The project involves field Therefore, encounters are not expected. California Sea Lion experiments, as well as lab studies. However, if Steller sea lions are sighted California sea lions are not listed as Currently these sites are visited two to before approaching a sampling site, threatened or endangered under the three times per month for sampling and researchers will abandon approach and ESA, nor are they categorized as equipment maintenance. return at a later date. For this reason, depleted under the MMPA. The During summer 2014, PISCO will this species is not considered further in California sea lion is now a full species, sample eight sites along the Oregon this proposed IHA notice. separated from the Galapagos sea lion coast (see Table 7 in PISCO’s We refer the public to Carretta et al. (Z. wollebaeki) and the extinct Japanese application) using a combination of (2013) for general information on these sea lion (Z. japonicus) (Brunner, 2003; community structure and biodiversity species which are presented below this Wolf et al., 2007; Schramm et al., 2009). survey methods to establish a baseline section. The publication is available on The estimated population of the U.S. prior to the proposed installation of the internet at: http:// stock of California sea lion is

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approximately 296,750 animals with a near Japan, and P. v. richardii in the change the speed or direction of their minimum of 153,337 individuals, and northeast Pacific Ocean. The latter movement in response to the presence the current maximum population subspecies, recognized as three separate of researchers are behaviorally harassed, growth rate is 12 percent (Carretta et al., stocks, inhabits the west coast of the and thus subject to Level B taking. 2013). continental U.S., including: The outer Animals that respond to the presence of California sea lion breeding areas are coastal waters of Oregon and researchers by becoming alert, but do on islands located in southern Washington states; Washington state not move or change the nature of California, in western Baja California, inland waters; and Alaska coastal and locomotion as described, are not Mexico, and the Gulf of California. inland waters. considered to have been subject to During the breeding season, most In California, over 500 harbor seal behavioral harassment. California sea lions inhabit southern haulout sites are widely distributed Numerous studies have shown that California and Mexico. Rookery sites in along the mainland and offshore human activity can flush harbor seals southern California are limited to the islands, and include rocky shores, off haulout sites (Allen et al., 1984; San Miguel Islands and the southerly beaches and intertidal sandbars (Lowry Calambokidis et al., 1991; Suryan and Channel Islands of San Nicolas, Santa et al., 2005). Harbor seals mate at sea, Harvey, 1999; Mortenson et al., 2000). Barbara, and San Clemente (Carretta et and females give birth during the spring The Hawaiian monk seal (Monachus al., 2011). Males establish breeding and summer, although, the pupping schauinslandi) has been shown to avoid territories during May through July on season varies with latitude. Pups are beaches that have been disturbed often both land and in the water. Females nursed for an average of 24 days and are by humans (Kenyon, 1972). And in one come ashore in mid-May and June ready to swim minutes after being born. case, human disturbance appeared to where they give birth to a single pup Harbor seal pupping takes place at many cause Steller sea lions to desert a approximately 4–5 days after arrival and locations, and rookery size varies from breeding area at Northeast Point on St. will nurse pups for about a week before a few pups to many hundreds of pups. Paul Island, Alaska (Kenyon, 1962). going on their first feeding trip. Females Pupping generally occurs between Typically, even those reactions will alternate feeding trips with nursing March and June, and molting occurs constituting Level B harassment would bouts until the pup is weaned between between May and July (NCCOS, 2007). result at most in temporary, short-term 4 and 10 months of age (NMML, 2010). At several sites, harbor seals are often disturbance. In any given study season, In central California, a small number of observed and have the potential to be researchers will visit sites one to two pups are born on Ano Nuevo Island, disturbed by researchers accessing or times per year for a total of 4–6 hours Southeast Farallon Island, and sampling the site. The largest number of per visit. Therefore, disturbance of occasionally at a few other locations; harbor seals occurs at Hopkins where pinnipeds resulting from the presence of otherwise, the central California often 20–30 adults and 10–15 pups are researchers lasts only for short periods population is composed of non- hauled-out on a small beach adjacent to of time and is separated by significant breeders. the sampling site. amounts of time in which no A 2005 haul-out count of California disturbance occurs. Because such sea lions between the Oregon/California Other Marine Mammals in the Proposed disturbance is sporadic, rather than border and Point Conception as well as Action Area chronic, and of low intensity, individual the Channel Islands found 141,842 California (southern) sea otters marine mammals are unlikely to incur individuals (Carretta et al., 2010). The (Enhydra lutris nereis), listed as any detrimental impacts to vital rates or number of sea lions found at any one of threatened under the ESA and ability to forage and, thus, loss of PISCO’s study sites is variable, and categorized as depleted under the fitness. Correspondingly, even local often no California sea lions are MMPA, usually range in coastal waters populations, much less the overall observed during sampling. within 2 km (1.2 mi) of shore. This stocks of animals, are extremely species is managed by the U.S. Fish and unlikely to accrue any significantly Pacific Harbor Seal Wildlife Service and is not considered detrimental impacts. Pacific harbor seals are not listed as further in this notice. There are three ways in which threatened or endangered under the disturbance, as described previously, ESA, nor are they categorized as Potential Effects of the Specified could result in more than Level B depleted under the MMPA. The Activity on Marine Mammals harassment of marine mammals. All estimated population of the California The appearance of researchers may three are most likely to be consequences stock of Pacific harbor seals is have the potential to cause Level B of stampeding, a potentially dangerous approximately 30,196 animals with a harassment of any pinnipeds hauled out occurrence in which large numbers of minimum estimated population size of at sampling sites. Although marine animals succumb to mass panic and 26,667 (Carretta et al., 2013). No current mammals are never deliberately rush away from a stimulus, an estimation of annual growth rate has approached by abalone survey occurrence that is not expected at the been made for the California stock personnel, approach may be proposed sampling sites. The three (Carretta et al., 2013). A 1999 census of unavoidable if pinnipeds are hauled out situations are (1) Falling when entering the Oregon/Washington harbor seal in the immediate vicinity of the the water at high-relief locations; (2) stock found 16,165 individuals, of permanent study plots. Disturbance may extended separation of mothers and which 5,735 were in Oregon (Carretta et result in reactions ranging from an pups; and (3) crushing of elephant seal al., 2013). This stock is growing at a animal simply becoming alert to the pups by large males during a stampede. maximum annual rate of 12% (Carretta presence of researchers (e.g., turning the Because hauled-out animals may et al., 2013). head, assuming a more upright posture) move towards the water when The animals inhabit near-shore to flushing from the haul-out site into disturbed, there is the risk of injury if coastal and estuarine areas from Baja the water. NMFS does not consider the animals stampede towards shorelines California, Mexico, to the Pribilof lesser reactions to constitute behavioral with precipitous relief (e.g., cliffs). Islands in Alaska. Pacific harbor seals harassment, or Level B harassment However, while cliffs do exist along the are divided into two subspecies: P. v. takes, but rather assumes that pinnipeds coast, shoreline habitats near the stejnegeri in the western North Pacific, that move greater than 1 m (3.3 ft) or abalone study sites are of steeply

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sloping rocks with unimpeded and non- many rookeries occur on the offshore Anticipated Effects on Marine Mammal obstructive access to the water. If islands and not the mainland areas Habitat disturbed, hauled-out animals in these where the proposed activities would The only habitat modification situations may move toward the water occur. In addition, researchers will associated with the proposed activity is without risk of encountering barriers or exercise appropriate caution the placement of permanent bolts and hazards that would otherwise prevent approaching sites, especially when pups other sampling equipment in the them from leaving the area. In these are present and will redirect activities intertidal. Bolts are installed during the circumstances, the risk of injury, serious when pups are present. set-up of a site and, at existing sites, this injury, or death to hauled-out animals is Summary of Previous Monitoring has already occurred. In some instances, very low. Thus, abalone research bolts will need to be replaced or activity poses no risk that disturbed PISCO complied with the mitigation installed for new plots. Bolts are 7.6 to animals may fall and be injured or and monitoring that we required under 12.7 cm (2 to 5 in) long, stainless steel killed as a result of disturbance at high- the IHA issued in December 2012. In 1 cm (3/8 in) Hex or Carriage bolts. They relief locations. compliance with the IHA, PISCO The risk of marine mammal injury, submitted a reporting detailing the are installed by drilling a hole with a serious injury, or mortality associated activities and marine mammal battery powered DeWalt 24 volt rotary with rocky intertidal monitoring monitoring they conducted. The IHA hammer drill with a 1 cm (3/8 in) bit. increases somewhat if disturbances required PISCO to conduct counts of The bolts protrude 1.3–7.6 cm (0.5–3 in) occur during breeding season. These pinnipeds present at study sites prior to above the rock surface and are held in situations present increased potential approaching the sites and to record place with marine epoxy. Although the for mothers and dependent pups to species counts and any observed drill does produce noticeable noise, become separated and, if separated pairs reactions to the presence of the researchers have never observed an do not quickly reunite, the risk of researchers. instance where near-by or offshore mortality to pups (through starvation) From December 3, 2012, through marine mammals were disturbed by it. may increase. Separately, adult male August 31, 2013, PISCO researchers Any marine mammal at the site would elephant seals may trample elephant conducted rocky intertidal sampling at likely be disturbed by the presence of seal pups if disturbed, which could 73 sites during 79 days. During this time researchers and retreat to a distance potentially result in the injury, serious period, no injured, stranded, or dead where the noise of the drill would not injury, or mortality of the pups. The risk pinnipeds were observed. Tables 9, 10, increase the disturbance. In most of either of these situations is greater in and 11 in PISCO’s monitoring report instances, wind and wave noise also the event of a stampede. (see ADDRESSES) outline marine drown out the noise of the drill. The Very few pups are anticipated to be mammal observations and reactions. No installation of bolts and other sampling encountered during the proposed takes of northern elephant seals equipment is conducted under the monitoring surveys. No California sea occurred at any of the sites. Level B appropriate permits (Monterey Bay lion pups are anticipated to be harassment takes of harbor seals and National Marine Sanctuary, California encountered, as rookery sites are California sea lions included short State Parks). Once a particular study has typically limited to the islands. A very movements of 1–3 m (3.3–10 ft) away ended, the respective sampling small number of harbor seal and from researchers and in some instances equipment is removed. No trash or field northern elephant seal pups have been flushing into the water. gear is left at a site. Thus, the proposed observed at a couple of the proposed Based on the results from the previous activity is not expected to have any monitoring sites over the past years. monitoring report, we conclude that habitat-related effects, including to Though elephant seal pups are these results support our original marine mammal prey species, that could occasionally present when researchers findings that the mitigation measures set cause significant or long-term visit survey sites, risk of pup mortalities forth in the 2012–2012 IHA effected the consequences for individual marine is very low because elephant seals are least practicable impact on the species mammals or their populations. or stocks. During periods of low tide far less reactive to researcher presence Proposed Mitigation than the other two species. Further, (e.g., when tides are 0.6 m (2 ft) or less pups are typically found on sand and low enough for pinnipeds to haul- In order to issue an incidental take beaches, while study sites are located in out), we would expect the pinnipeds to authorization (ITA) under Section the rocky intertidal zone, meaning that return to the haulout site within 60 101(a)(5)(D) of the MMPA, NMFS must, there is typically a buffer between minutes of the disturbance (Allen et al., where applicable, set forth the researchers and pups. Finally, the 1985). The effects to pinnipeds appear permissible methods of taking pursuant caution used by researchers in at the most to displace the animals to such activity, and other means of approaching sites generally precludes temporarily from their haul out sites, effecting the least practicable impact on the possibility of behavior, such as and we do not expect that the pinnipeds such species or stock and its habitat, stampeding, that could result in would permanently abandon a haul-out paying particular attention to rookeries, extended separation of mothers and site during the conduct of rocky mating grounds, and areas of similar dependent pups or trampling of pups. intertidal surveys. significance, and on the availability of No research would occur where The potential effects to marine such species or stock for taking for separation of mother and her nursing mammals described in this section of certain subsistence uses (where pup or crushing of pups can become a the document do not take into relevant). concern. consideration the proposed monitoring PISCO proposes to implement several In summary, NMFS does not and mitigation measures described later mitigation measures to reduce potential anticipate that the proposed activities in this document (see the ‘‘Proposed take by Level B (behavioral disturbance) would result in the injury, serious Mitigation’’ and ‘‘Proposed Monitoring harassment. Measures include: (1) injury, or mortality of pinnipeds and Reporting’’ sections) which, as Conducting slow movements and because pups are only found at a couple noted, should effect the least practicable staying close to the ground to prevent or of the proposed sampling locations impact on affected marine mammal minimize stampeding; (2) avoiding loud during certain times of the year and that species and stocks. noises (i.e., using hushed voices); (3)

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avoiding pinnipeds along access ways to consideration of the following factors in of unusual behaviors, numbers, or sites by locating and taking a different relation to one another: distributions of pinnipeds will be access way and vacating the area as • The manner in which, and the reported to NMFS so that any potential soon as sampling of the site is degree to which, the successful follow-up observations can be completed; (4) monitoring the offshore implementation of the measure is conducted by the appropriate personnel. area for predators (such as killer whales expected to minimize adverse impacts In addition, observations of tag-bearing and white sharks) and avoid flushing of to marine mammals; pinniped carcasses as well as any rare pinnipeds when predators are observed • the proven or likely efficacy of the or unusual species of marine mammals in nearshore waters; (5) using binoculars specific measure to minimize adverse will be reported to NMFS. Information to detect pinnipeds before close impacts as planned; and regarding physical and biological approach to avoid being seen by • the practicability of the measure for conditions pertaining to a site, as well animals; (6) only flushing pinnipeds if applicant implementation. as the date and time that research was they are located in the sampling plots Based on our evaluation of the conducted will also be noted. and there are no other means to applicant’s proposed measures, NMFS If at any time injury, serious injury, or accomplish the survey (however, has preliminarily determined that the mortality of the species for which take flushing must be done slowly and proposed mitigation measures provide is authorized should occur, or if take of quietly so as not to cause a stampede); the means of effecting the least any kind of any other marine mammal (7) no intentional flushing if pups are practicable impact on marine mammal occurs, and such action may be a result present at the sampling site; and (8) species or stocks and their habitat, of the proposed research, PISCO will rescheduling sampling if Steller sea paying particular attention to rookeries, suspend research activities and contact lions are present at the site. mating grounds, and areas of similar NMFS immediately to determine how The methodologies and actions noted significance. best to proceed to ensure that another in this section will be utilized and Proposed Monitoring and Reporting injury or death does not occur and to included as mitigation measures in any ensure that the applicant remains in issued IHA to ensure that impacts to In order to issue an ITA for an compliance with the MMPA. marine mammals are mitigated to the activity, Section 101(a)(5)(D) of the A draft final report must be submitted lowest level practicable. The primary MMPA states that NMFS must, where to NMFS Office of Protected Resources method of mitigating the risk of applicable, set forth ‘‘requirements within 60 days after the conclusion of disturbance to pinnipeds, which will be pertaining to the monitoring and the 2013–2014 field season or 60 days in use at all times, is the selection of reporting of such taking’’. The MMPA prior to the start of the next field season judicious routes of approach to study implementing regulations at 50 CFR if a new IHA will be requested. The sites, avoiding close contact with 216.104(a)(13) indicate that requests for report will include a summary of the pinnipeds hauled out on shore, and the ITAs must include the suggested means information gathered pursuant to the use of extreme caution upon approach. of accomplishing the necessary monitoring requirements set forth in the In no case will marine mammals be monitoring and reporting that will result IHA. A final report must be submitted deliberately approached by survey in increased knowledge of the species to the Director of the NMFS Office of personnel, and in all cases every and of the level of taking or impacts on Protected Resources and to the NMFS possible measure will be taken to select populations of marine mammals that are Southwest Office Regional a pathway of approach to study sites expected to be present in the proposed Administrator within 30 days after that minimizes the number of marine action area. receiving comments from NMFS on the mammals potentially harassed. In PISCO can add to the knowledge of draft final report. If no comments are general, researchers will stay inshore of pinnipeds in California and Oregon by received from NMFS, the draft final pinnipeds whenever possible to allow noting observations of: (1) Unusual report will be considered to be the final maximum escape to the ocean. Each behaviors, numbers, or distributions of report. visit to a given study site will last for pinnipeds, such that any potential Estimated Take by Incidental approximately 4–6 hours, after which follow-up research can be conducted by Harassment the site is vacated and can be re- the appropriate personnel; (2) tag- occupied by any marine mammals that bearing carcasses of pinnipeds, allowing Except with respect to certain may have been disturbed by the transmittal of the information to activities not pertinent here, the MMPA presence of researchers. By arriving appropriate agencies and personnel; and defines ‘‘harassment’’ as: any act of before low tide, worker presence will (3) rare or unusual species of marine pursuit, torment, or annoyance which (i) tend to encourage pinnipeds to move to mammals for agency follow-up. has the potential to injure a marine other areas for the day before they haul Proposed monitoring requirements in mammal or marine mammal stock in the out and settle onto rocks at low tide. relation to PISCO’s rocky intertidal wild [Level A harassment]; or (ii) has PISCO will suspend sampling and monitoring will include observations the potential to disturb a marine monitoring operations immediately if an made by the applicant. Information mammal or marine mammal stock in the injured marine mammal is found in the recorded will include species counts wild by causing disruption of behavioral vicinity of the project area and the (with numbers of pups/juveniles when patterns, including, but not limited to, monitoring activities could aggravate its possible), numbers of observed migration, breathing, nursing, breeding, condition. disturbances, and descriptions of the feeding, or sheltering [Level B NMFS has carefully evaluated disturbance behaviors during the harassment]. PISCO’s proposed mitigation measures monitoring surveys, including location, All anticipated takes would be by and considered a range of other date, and time of the event. In addition, Level B harassment, involving measures in the context of ensuring that observations regarding the number and temporary changes in behavior. The NMFS prescribes the means of effecting species of any marine mammals proposed mitigation and monitoring the least practicable impact on the observed, either in the water or hauled measures are expected to minimize the affected marine mammal species and out, at or adjacent to the site, will be possibility of injurious or lethal takes stocks and their habitat. Our evaluation recorded as part of field observations such that take by injury, serious injury, of potential measures included during research activities. Observations or mortality is considered remote.

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Animals hauled out close to the actual estimated the actual number of marine the number, nature, intensity, and survey sites may be disturbed by the mammals that may be subject to take. In duration of Level B harassment; and (4) presence of biologists and may alter most cases the number of takes is based the context in which the take occurs. their behavior or attempt to move away on the maximum number of marine No injuries or mortalities are from the researchers. mammals that have been observed at a anticipated to occur as a result of As discussed earlier, NMFS considers site throughout the history of the site PISCO’s rocky intertidal monitoring, an animal to have been harassed if it (2–3 observation per year for 5–10 years and none are proposed to be authorized. moved greater than 1 m (3.3 ft) in or more). Section 6 in PISCO’s The behavioral harassments that could response to the researcher’s presence or application outlines the number of visits occur would be of limited duration, as if the animal was already moving and per year for each sampling site and the researchers only conduct sampling one changed direction and/or speed, or if potential number of pinnipeds to two times per year at each site for a the animal flushed into the water. anticipated to be encountered at each total of 4–6 hours per sampling event. Animals that became alert without such site. Table 8 in PISCO’s application Therefore, disturbance will be limited to movements were not considered outlines the number of potential takes a short duration, allowing pinnipeds to harassed. per site (see ADDRESSES). reoccupy the sites within a short For the purpose of this proposed IHA, Based on this information, NMFS amount of time. only Oregon and California sites that are proposes to authorize the take, by Level Some of the pinniped species may use frequently sampled and have a marine B harassment only, of 60 California sea some of the sites during certain times of mammal presence during sampling were lions, 337 harbor seals, and 36 northern year to conduct pupping and/or included in take estimates. Sites where elephant seals. These numbers are breeding. However, some of these only Biodiversity Surveys are conducted considered to be maximum take species prefer to use the offshore islands were not included due to the estimates; therefore, actual take may be for these activities. At the sites where infrequency of sampling and rarity of slightly less if animals decide to haul pups may be present, PISCO has occurrences of pinnipeds during out at a different location for the day or proposed to implement certain sampling. In addition, Steller sea lions animals are out foraging at the time of mitigation measures, such as no are not included in take estimates as the survey activities. intentional flushing if dependent pups they will not be disturbed by are present, which will avoid mother/ Negligible Impact and Small Numbers researchers or research activities since pup separation and trampling of pups. Analysis and Preliminary activities will not occur or will be Of the three marine mammal species Determination suspended if Steller sea lions are anticipated to occur in the proposed present. A small number of harbor seal NMFS typically includes our activity areas, none are listed under the and northern elephant seal pup takes negligible impact and small numbers ESA. Table 1 in this document presents are anticipated as pups may be present analyses and determinations under the the abundance of each species or stock, at several sites during spring and same section heading of our Federal the proposed take estimates, and the summer sampling Register notices. Despite co-locating percentage of the affected populations Takes estimates are based on marine these terms, we acknowledge that or stocks that may be taken by mammal observations from each site. negligible impact and small numbers are harassment. Based on these estimates, Marine mammal observations are done distinct standards under the MMPA and PISCO would take less than 2.1% of as part of PISCO site observations, treat them as such. The analyses each species or stock. Because these are which include notes on physical and presented below do not conflate the two maximum estimates, actual take biological conditions at the site. The standards; instead, each standard has numbers are likely to be lower, as some maximum number of marine mammals, been considered independently, and we animals may select other haulout sites by species, seen at any given time have applied the relevant factors to the day the researchers are present. throughout the sampling day is recorded inform our negligible impact and small Based on the analysis contained at the conclusion of sampling. A marine numbers determinations. herein of the likely effects of the mammal is counted if it is seen on NMFS has defined ‘‘negligible specified activity on marine mammals access ways to the site, at the site, or impact’’ in 50 CFR 216.103 as ‘‘. . . an and their habitat, and taking into immediately up-coast or down-coast of impact resulting from the specified consideration the implementation of the the site. Marine mammals in the water activity that cannot be reasonably proposed mitigation and monitoring immediately offshore are also recorded. expected to, and is not reasonably likely measures, NMFS preliminarily finds Any other relevant information, to, adversely affect the species or stock that the rocky intertidal monitoring including the location of a marine through effects on annual rates of program will result in the incidental mammal relevant to the site, any recruitment or survival.’’ In making a take of small numbers of marine unusual behavior, and the presence of negligible impact determination, NMFS mammals, by Level B harassment only, pups is also noted. considers a variety of factors, including and that the total taking from the rocky These observations formed the basis but not limited to: (1) The number of intertidal monitoring program will have from which researchers with extensive anticipated mortalities; (2) the number a negligible impact on the affected knowledge and experience at each site and nature of anticipated injuries; (3) species or stocks.

TABLE 1—POPULATION ABUNDANCE ESTIMATES, TOTAL PROPOSED LEVEL B TAKE, AND PERCENTAGE OF POPULATION THAT MAY BE TAKEN FOR THE POTENTIALLY AFFECTED SPECIES DURING THE PROPOSED ROCKY INTERTIDAL MONI- TORING PROGRAM

Percentage of Species Abundance * Total proposed stock or Level B take population

Harbor Seal ...... 1 30,196 337 1.1–2.1 2 16,165 ......

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TABLE 1—POPULATION ABUNDANCE ESTIMATES, TOTAL PROPOSED LEVEL B TAKE, AND PERCENTAGE OF POPULATION THAT MAY BE TAKEN FOR THE POTENTIALLY AFFECTED SPECIES DURING THE PROPOSED ROCKY INTERTIDAL MONI- TORING PROGRAM—Continued

Percentage of Species Abundance * Total proposed stock or Level B take population

California Sea Lion ...... 296,750 60 0.02 Northern Elephant Seal ...... 124,000 36 0.03 * Abundance estimates are taken from the 2012 U.S. Pacific Marine Mammal Stock Assessments (Carretta et al., 2013). 1 California stock abundance estimate; 2 Oregon/Washington stock abundance estimate.

Impact on Availability of Affected Proposed Authorization the Cooperative Patent Classification Species or Stock for Taking for As a result of these preliminary (CPC) system, in January 2013 that is Subsistence Uses determinations, NMFS proposes to based on the International Patent There are no relevant subsistence uses authorize the take of marine mammals Classification (IPC) system. The CPC, a of marine mammals implicated by this incidental to PISCO’s rocky intertidal joint patent classification system action. Therefore, NMFS has monitoring research activities, provided developed by the USPTO and the determined that the total taking of the previously mentioned mitigation, European Patent Office (EPO), affected species or stocks would not monitoring, and reporting requirements incorporates the best classification have an unmitigable adverse impact on are incorporated. practices of both the U.S. and European systems. Since CPC is a detailed, the availability of such species or stocks Dated: October 25, 2013. for taking for subsistence purposes. collaborative, and dynamic system that Donna S. Wieting, will enable patent examiners and the Endangered Species Act (ESA) Director, Office of Protected Resources, public to efficiently conduct thorough National Marine Fisheries Service. None of the marine mammals for patent searches, the search templates which incidental take is proposed are [FR Doc. 2013–25717 Filed 10–29–13; 8:45 am] will become obsolete. Before listed as threatened or endangered BILLING CODE 3510–22–P eliminating the search templates from under the ESA. NMFS’ Permits and the USPTO Web site, the Office is Conservation Division worked with the requesting comments from the public. DEPARTMENT OF COMMERCE NMFS Southwest Regional Office to DATES: Comment Deadline Date: Written comments must be received on or before ensure that Steller sea lions would be United States Patent and Trademark November 29, 2013 to ensure avoided and incidental take would not Office occur. Therefore, NMFS has determined consideration. No public hearing will be that issuance of the proposed IHA to [Docket No. PTO–P–2013–0011] held. PISCO under section 101(a)(5)(D) of the ADDRESSES: Comments should be sent Request for Comments on Proposed MMPA will have no effect on species by electronic mail message over the Elimination of Patents Search listed as threatened or endangered Internet addressed to: SearchTemplates Templates under the ESA. [email protected]. Comments may also be AGENCY: United States Patent and submitted by postal mail addressed to: National Environmental Policy Act United States Patent and Trademark (NEPA) Trademark Office, Commerce. ACTION: Request for comments. Office, Mail Stop Comments—Patents, In 2012, we prepared an EA analyzing Office of Commissioner for Patents, P.O. the potential effects to the human SUMMARY: The USPTO is proposing to Box 1450, Alexandria, VA 22313–1450, environment from conducting rocky eliminate the Patents Search Templates marked to the attention of Pinchus M. intertidal surveys along the California from the USPTO Web site. In 2006, the Laufer. Although comments may be and Oregon coasts and issued a Finding United States Patent and Trademark submitted by postal mail, the Office of No Significant Impact (FONSI) on the Office (USPTO) implemented Patents prefers to receive comments by issuance of an IHA for PISCO’s rocky Search Templates, which are United electronic mail message over the intertidal surveys in accordance with States Patent Classification (USPC) Internet in order to facilitate posting on section 6.01 of the NOAA indexed search templates that were the Office’s Internet Web site. Administrative Order 216–6 created to better identify the field of The comments will be available for (Environmental Review Procedures for search, search tools, and search public inspection at the Office of the Implementing the National methodologies which should be Commissioner for Patents, located at Environmental Policy Act, May 20, considered each time an invention Madison Building East, Tenth Floor, 600 1999). PISCO’s proposed activities and related to a particular USPC is searched. Dulany Street, Alexandria, Virginia. impacts for 2013–2014 are within the There are over 1200 search templates Comments also will be available for scope of our 2012 EA and FONSI. We covering more than 600 USPC classes viewing via the Office’s Internet Web have reviewed the 2012 EA and and subclasses. Historically, usage of site (http://www.uspto.gov). Because determined that there are no new direct, the search templates by the public has comments will be made available for indirect, or cumulative impacts to the been extremely low. Additionally, public inspection, information that is human and natural environment various aspects of the search templates, not desired to be made public, such as associated with the IHA requiring such as references to commercial an address or phone number, should not evaluation in a supplemental EA and database vendor information, are in be included in the comments. we, therefore, intend to reaffirm the need of updating. Further, the USPTO FOR FURTHER INFORMATION CONTACT: 2012 FONSI. launched a new classification system, Pinchus M. Laufer, Senior Legal

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Advisor, Office of Patent Legal benefit of the public’s views on the SUMMARY: In accordance with the Administration, Office of the Deputy Office’s proposed removal of the search Paperwork Reduction Act of 1995 (44 Commissioner for Patent Examination templates. If, after consideration of the U.S.C. chapter 3501 et seq.), ED is Policy, by telephone at 571–272–7726; comments, the Office goes forward with proposing a new information collection. or by mail addressed to: Mail Stop the elimination of the search templates, DATES: Interested persons are invited to Comments—Patents, Commissioner for a notice to that effect will be published, submit comments on or before Patents, P.O. Box 1450, Alexandria, VA and any references to the search December 30, 2013. 22313–1450. templates in USPTO documentation (for ADDRESSES: Comments submitted in SUPPLEMENTARY INFORMATION: The example, in the Accelerated response to this notice should be USPTO published a notice for a request Examination FAQs) will be updated. submitted electronically through the for comments on the search templates Dated: October 23, 2013. Federal eRulemaking Portal at http:// on May 16, 2006. See Request for Teresa Stanek Rea, www.regulations.gov by selecting Comments on Patents Search Deputy Under Secretary of Commerce for Docket ID number ED–2013–ICCD–0133 Templates, 94 FR 28309 (May 16, 2006). Intellectual Property and Deputy Director of or via postal mail, commercial delivery, The search templates were created to the United States Patent and Trademark or hand delivery. Please note that better identify the field of search, search Office. comments submitted by fax or email tools, and search methodologies which [FR Doc. 2013–25685 Filed 10–29–13; 8:45 am] and those submitted after the comment should be considered each time an BILLING CODE 3510–16–P period will not be accepted. Written invention related to a particular USPC is requests for information or comments searched. submitted by postal mail or delivery The USPTO is proposing to remove should be addressed to the Acting the search templates from its Web site. COMMISSION OF FINE ARTS Director of the Information Collection Clearance Division, U.S. Department of The search templates are currently out- Notice of Meeting of-date since they include, for example, Education, 400 Maryland Avenue SW., outdated commercial database vendor The next meeting of the U.S. LBJ, Room 2E105, Washington, DC information that could be misleading for Commission of Fine Arts is scheduled 20202–4537. external stakeholders. Also, the search for 21 November 2013, at 9:00 a.m. in FOR FURTHER INFORMATION CONTACT: For templates are indexed under USPC, the Commission offices at the National questions related to collection activities which will no longer be used. Updating Building Museum, Suite 312, Judiciary or burden, please call Katrina Ingalls at the search templates, which would Square, 401 F Street NW., Washington 703–620–3655 or electronically mail require the editing of over 1200 pages, DC, 20001–2728. Items of discussion [email protected]. Please do not would not be an efficient use of USPTO may include buildings, parks, and send comments here. resources since the templates are rarely memorials. Draft agendas and additional SUPPLEMENTARY INFORMATION: The used by the public. Additionally, CPC, information regarding the Commission Department of Education (ED), in the new internationally compatible are available on our Web site: accordance with the Paperwork classification system, was launched in www.cfa.gov. Inquiries regarding the Reduction Act of 1995 (PRA) (44 U.S.C. January 2013. CPC is a detailed, agenda and requests to submit written 3506(c)(2)(A)), provides the general dynamic classification system that is or oral statements should be addressed public and Federal agencies with an based on the IPC and enables patent to Thomas Luebke, Secretary, U.S. opportunity to comment on proposed, examiners and the public to efficiently Commission of Fine Arts, at the above revised, and continuing collections of conduct thorough patent searches. As a address; by emailing [email protected]; information. This helps the Department result of the implementation of the CPC, or by calling 202–504–2000. Individuals assess the impact of its information the search templates will become requiring sign language interpretation collection requirements and minimize obsolete. CPC has been jointly for the hearing impaired should contact the public’s reporting burden. It also developed with the EPO and the Secretary at least 10 days before the helps the public understand the incorporates the best classification meeting date. Department’s information collection practices of both the U.S. and European Dated: October 22, 2013, in Washington requirements and provide the requested systems. The USPTO and the EPO also DC. data in the desired format. ED is believe that CPC will enhance efficiency Thomas Luebke, soliciting comments on the proposed and support work sharing initiatives information collection request (ICR) that AIA, Secretary. with a view to reducing unnecessary is described below. The Department of duplication of work, thereby leading to [FR Doc. 2013–25509 Filed 10–29–13; 8:45 am] Education is especially interested in enhanced patent quality and timelier BILLING CODE 6331–01–M public comment addressing the examination of pending applications. following issues: (1) Is this collection Initial feedback from stakeholders necessary to the proper functions of the confirms that the transition to CPC is a DEPARTMENT OF EDUCATION Department; (2) will this information be positive development. More information processed and used in a timely manner; about CPC can be found at http:// [Docket No. ED–2013–ICCD–0133] (3) is the estimate of burden accurate; www.cooperativepatent (4) how might the Department enhance classification.org. Agency Information Collection the quality, utility, and clarity of the Due to the factors discussed above, Activities; Comment Request: Survey information to be collected; and (5) how the Office is proposing the removal of of Principals of Rural Schools might the Department minimize the the search templates from the USPTO Receiving School Improvement Grants burden of this collection on the Web site. Notice and opportunity for and Using the Transformation respondents, including through the use public comment are not required prior AGENCY: Institute of Education Sciences of information technology. Please note to removal of the search templates. The (IES), Department of Education (ED). that written comments received in Office, however, is publishing this response to this notice will be ACTION: Notice. notice for comment as it seeks the considered public records.

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Title of Collection: Survey of proposing a revision of an existing Title of Collection: 2012/14 Beginning Principals of Rural Schools Receiving information collection. Postsecondary Students Longitudinal School Improvement Grants and Using Study: (BPS:12/14). DATES: Interested persons are invited to the Transformation. OMB Control Number: 1850–0631. submit comments on or before OMB Control Number: 1850-New. Type of Review: A revision of an Type of Review: A new information November 29, 2013. existing information collection. collection. ADDRESSES: Comments submitted in Respondents/Affected Public: Respondents/Affected Public: response to this notice should be Individuals or households. Individuals or households. submitted electronically through the Total Estimated Number of Annual Total Estimated Number of Annual Federal eRulemaking Portal at http:// Responses: 29,355. Responses: 221. www.regulations.gov by selecting Total Estimated Number of Annual Total Estimated Number of Annual Docket ID number ED–2013–ICCD–0137 Burden Hours: 12,532. Burden Hours: 58. Abstract: The 2012/14 Beginning Abstract: This study collects survey or via postal mail, commercial delivery, Postsecondary Students Longitudinal data from principals of schools that or hand delivery. Please note that Study (BPS:12/14), conducted by the received federal School Improvement comments submitted by fax or email National Center for Education Statistics Grants (SIGs) in cohort 1 and and those submitted after the comment (NCES), is designed to follow a cohort implemented the school transformation period will not be accepted. Written of students who enroll in postsecondary model. Rural schools and districts often requests for information or comments education for the first time during the face steep challenges when trying to submitted by postal mail or delivery 2011–2012 academic year, irrespective implement the kinds of staff should be addressed to the Acting of date of high school completion. The replacement and on-site professional Director of the Information Collection study collects data on student development practices required in the Clearance Division, U.S. Department of persistence in, and completion of, transformation model. By examining the Education, 400 Maryland Avenue SW., postsecondary education programs; implementation of the SIG LBJ, Room 2E105, Washington, DC their transition to employment; transformation model in challenging 20202–4537. demographic characteristics; and rural settings, the study will produce FOR FURTHER INFORMATION CONTACT: For changes over time in their goals, marital findings that can help policymakers, questions related to collection activities status, income, and debt, among other rural schools, and their partners plan for or burden, please call Kathy Axt at 540– measures. Data from BPS are used to school improvement. Our study will do 776–7742 or electronically mail help researchers and policymakers this in two ways: (1) By asking [email protected]. Please do not better understand how financial aid principals to specify the extent to which send comments here. influences persistence and completion, the transformation activities were what percentages of students complete implemented and the challenges to SUPPLEMENTARY INFORMATION: The various degree programs, what early implementation, and (2) by identifying Department of Education (ED), in employment and wage outcomes are for which activities were supported by accordance with the Paperwork certificate and degree attainers, and why technical assistance providers and how Reduction Act of 1995 (PRA) (44 U.S.C. students leave school. This request is to sufficient principals found this support. 3506(c)(2)(A)), provides the general public and Federal agencies with an conduct the BPS:12/14 first follow-up, Dated: October 25, 2013. opportunity to comment on proposed, including panel maintenance, student Kate Mullan, revised, and continuing collections of interviews, and administrative record Acting Director, Information Collection information. This helps the Department matching. NCES conducted the BPS:12/ Clearance Division, Privacy, Information and assess the impact of its information 14 field test data collection in spring Records Management Services, Office of collection requirements and minimize 2013, and this submission is for the full Management. the public’s reporting burden. It also scale data collection. [FR Doc. 2013–25784 Filed 10–29–13; 8:45 am] helps the public understand the Dated: October 25, 2013. BILLING CODE 4000–01–P Department’s information collection Kate Mullan, requirements and provide the requested Acting Director, Information Collection data in the desired format. ED is DEPARTMENT OF EDUCATION Clearance Division, Privacy, Information and soliciting comments on the proposed Records Management Services, Office of [Docket No.: ED–2013–ICCD–0137] information collection request (ICR) that Management. is described below. The Department of [FR Doc. 2013–25786 Filed 10–29–13; 8:45 am] Agency Information Collection Education is especially interested in BILLING CODE 4000–01–P Activities; Agency Information public comment addressing the Collection Activities; Submission to following issues: (1) Is this collection the Office of Management and Budget necessary to the proper functions of the DEPARTMENT OF EDUCATION for Review and Approval; Comment Department; (2) will this information be Request; 2012/14 Beginning processed and used in a timely manner; [Docket No.: ED–2013–ICCD–0135] Postsecondary Students Longitudinal (3) is the estimate of burden accurate; Study: (BPS:12/14) Agency Information Collection (4) how might the Department enhance Activities; Comment Request; High AGENCY: Institute of Education Sciences the quality, utility, and clarity of the School Equivalency Program (HEP) (IES), National Center for Education information to be collected; and (5) how Annual Performance Report Statistics; Department of Education might the Department minimize the (ED). burden of this collection on the AGENCY: Office of Elementary and ACTION: Notice. respondents, including through the use Secondary Education (OESE), ED. of information technology. Please note ACTION: Notice. SUMMARY: In accordance with the that written comments received in Paperwork Reduction Act of 1995 (44 response to this notice will be SUMMARY: In accordance with the U.S.C. chapter 3501 et seq.), ED is considered public records. Paperwork Reduction Act of 1995, ED is

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proposing an extension of an existing Title of Collection: High School ADDRESSES: Comments submitted in information collection. Equivalency Program (HEP) Annual response to this notice should be Performance Report. submitted electronically through the DATES: Interested persons are invited to OMB Control Number: 1810–0684. Federal eRulemaking Portal at http:// submit comments on or before Type of Review: An extension of an www.regulations.gov by selecting December 30, 2013. existing information collection. Docket ID number ED–2013–ICCD–0134 ADDRESSES: Comments submitted in Respondents/Affected Public: State, or via postal mail, commercial delivery, response to this notice should be local and tribal governments. or hand delivery. Please note that submitted electronically through the Total Estimated Number of Annual comments submitted by fax or email Federal eRulemaking Portal at http:// Responses: 44. and those submitted after the comment www.regulations.gov by selecting Total Estimated Number of Annual period will not be accepted. Written Docket ID number ED–2013–ICCD–0135 Burden Hours: 1,408. requests for information or comments or via postal mail, commercial delivery, Abstract: The Office of Migrant submitted by postal mail or delivery or hand delivery. Please note that Education (OME) is collecting should be addressed to the Director of comments submitted by fax or email information for the High School the Information Collection Clearance and those submitted after the comment Equivalency Program (HEP) Annual Division, U.S. Department of Education, period will not be accepted. Written Performance Report (APR) in 400 Maryland Avenue SW., LBJ, Room requests for information or comments compliance with Higher Education Act 2E115, Washington, DC 20202–4537. submitted by postal mail or delivery of 1965, as amended, Title IV, Sec. FOR FURTHER INFORMATION CONTACT: For should be addressed to the Director of 418A; 20 U.S.C. 1070d–2 (special questions related to collection activities the Information Collection Clearance programs for students whose families or burden, please call Tomakie Division, U.S. Department of Education, are engaged in migrant and seasonal Washington, 202–401–1097 or 400 Maryland Avenue SW., LBJ, Room farm work) (shown in appendix A), the electronically mail ICDocketMgr@ 2E115, Washington, DC 20202–4537. Government Performance Results Act ed.gov. Please do not send comments (GPRA) of 1993, Section 4 (1115) FOR FURTHER INFORMATION CONTACT: For here. (shown in appendix B), and the questions related to collection activities Education Department General SUPPLEMENTARY INFORMATION: The or burden, please call Tomakie Administrative Regulations (EDGAR), Department of Education (ED), in Washington, 202–401–1097 or 34 CFR 75.253. EDGAR states that accordance with the Paperwork electronically mail ICDocketMgr@ recipients of multi-year discretionary Reduction Act of 1995 (PRA) (44 U.S.C. ed.gov. Please do not send comments grants must submit an APR 3506(c)(2)(A)), provides the general here. demonstrating that substantial progress public and Federal agencies with an SUPPLEMENTARY INFORMATION: The has been made towards meeting the opportunity to comment on proposed, Department of Education (ED), in approved objectives of the project. In revised, and continuing collections of accordance with the Paperwork addition, discretionary grantees are information. This helps the Department Reduction Act of 1995 (PRA) (44 U.S.C. required to report on their progress assess the impact of its information 3506(c)(2)(A)), provides the general toward meeting the performance collection requirements and minimize public and Federal agencies with an measures established for the ED grant the public’s reporting burden. It also opportunity to comment on proposed, program. helps the public understand the Department’s information collection revised, and continuing collections of Dated: October 24, 2013. information. This helps the Department requirements and provide the requested Tomakie Washington, data in the desired format. ED is assess the impact of its information Acting Director, Information Collection collection requirements and minimize soliciting comments on the proposed Clearance Division, Privacy, Information and information collection request (ICR) that the public’s reporting burden. It also Records Management Services, Office of helps the public understand the Management. is described below. The Department of Education is especially interested in Department’s information collection [FR Doc. 2013–25638 Filed 10–29–13; 8:45 am] public comment addressing the requirements and provide the requested BILLING CODE 4000–01–P data in the desired format. ED is following issues: (1) Is this collection soliciting comments on the proposed necessary to the proper functions of the information collection request (ICR) that DEPARTMENT OF EDUCATION Department; (2) will this information be is described below. The Department of processed and used in a timely manner; [Docket No.: ED–2013–ICCD–0134] Education is especially interested in (3) is the estimate of burden accurate; public comment addressing the (4) how might the Department enhance Agency Information Collection the quality, utility, and clarity of the following issues: (1) Is this collection Activities; Comment Request; necessary to the proper functions of the information to be collected; and (5) how Rehabilitation Services Administration might the Department minimize the Department; (2) will this information be Grant Re-Allotment Form processed and used in a timely manner; burden of this collection on the (3) is the estimate of burden accurate; AGENCY: Office of Special Education and respondents, including through the use (4) how might the Department enhance Rehabilitative Services (OSERS), ED. of information technology. Please note that written comments received in the quality, utility, and clarity of the ACTION: Notice. information to be collected; and (5) how response to this notice will be might the Department minimize the SUMMARY: In accordance with the considered public records. burden of this collection on the Paperwork Reduction Act of 1995, ED is Title of Collection: Rehabilitation respondents, including through the use proposing; an extension of an existing Services Administration Grant Re- of information technology. Please note information collection. allotment Form. that written comments received in DATES: Interested persons are invited to OMB Control Number: 1820–0692. response to this notice will be submit comments on or before Type of Review: an extension of an considered public records. December 30, 2013. existing information collection.

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Respondents/Affected Public: State, DEPARTMENT OF EDUCATION Department; (2) will this information be local and tribal governments. processed and used in a timely manner; [Docket No. ED–2013–ICCD–0138] Total Estimated Number of Annual (3) is the estimate of burden accurate; Responses: 402. Agency Information Collection (4) how might the Department enhance Activities; Comment Request; Annual the quality, utility, and clarity of the Total Estimated Number of Annual information to be collected; and (5) how Burden Hours: 14. Performance Reports for Title III and Title V Grantees might the Department minimize the Abstract: The Rehabilitation Act of burden of this collection on the 1973, as amended (the Act), authorizes AGENCY: Office of Postsecondary respondents, including through the use the Commissioner to reallot to other Education (OPE), Department of of information technology. Please note grant recipients that portion of a Education (ED). that written comments received in recipient’s annual grant that cannot be ACTION: Notice. response to this notice will be used. To maximize the use of considered public records. appropriated funds under the formula SUMMARY: In accordance with the Title of Collection: Annual grant programs, RSA has established a Paperwork Reduction Act of 1995 (44 Performance Reports for Title III and re-allotment process for the Basic U.S.C. chapter 3501 et seq.), ED is Title V Grantees. Vocational Rehabilitation State Grants proposing an extension of an existing OMB Control Number: 1840–0766. information collection. (VR); Supported Employment State Type of Review: Extension without Grants (SEP); Independent Living State DATES: Interested persons are invited to change of an existing collection of Grants, Part B (IL–Part B); Independent submit comments on or before information. Living Services for Older Individuals December 30, 2013. Respondents/Affected Public: Private Who Are Blind (IL/OB); Client ADDRESSES: Comments submitted in sector. Assistance (CAP); and Protection and response to this notice should be Total Estimated Number of Annual Advocacy of Individual Rights Programs submitted electronically through the Responses: 782. (PAIR). The authority for RSA to reallot Federal eRulemaking Portal at http:// Total Estimated Number of Annual formula grant funds is found at sections www.regulations.gov by selecting Burden Hours: 16,415. 110(b)(2) (VR), 622(b) (SEP), 711(c) (IL– Docket ID number ED–2013–ICCD–0138 Abstract: Titles III and V of the Higher Part B), 752(j)(4) (IL–OB), 112(e)(2) or via postal mail, commercial delivery, Education Act of 1965, as amended (CAP), and 509(e) (PAIR) of the Act. The or hand delivery. Please note that (HEA), provide discretionary and information will continue to be used by comments submitted by fax or email formula grant programs that make the RSA State Monitoring and Program and those submitted after the comment competitive awards to eligible Improvement Division (SMPID) to period will not be accepted. Written institutions of Higher Education and reallot formula grant funds for the requests for information or comments organizations (Title III, Part E) to assist awards mentioned above. submitted by postal mail or delivery these institutions expand their capacity Dated: October 24, 2013. should be addressed to the Director of to serve minority and low-income the Information Collection Clearance Tomakie Washington, students. Grantees annually submit a Division, U.S. Department of Education, yearly performance report to Acting Director, Information Collection 400 Maryland Avenue SW., LBJ, Room Clearance Division, Privacy, Information and demonstrate that substantial progress is Records Management Services, Office of 2E 103, Washington, DC 20202–4537. being made towards meeting the Management. FOR FURTHER INFORMATION CONTACT: For objectives of their project. questions related to collection activities [FR Doc. 2013–25637 Filed 10–29–13; 8:45 am] Dated: October 25, 2013. BILLING CODE 4000–01–P or burden, please call Kate Mullan, 202– 401–0563 or electronically mail Kate Mullan, [email protected]. Please do not Acting Director, Information Collection DEPARTMENT OF EDUCATION send comments here. Clearance Division, Privacy, Information and Records Management Services, Office of SUPPLEMENTARY INFORMATION: The Management. Department of Education (ED), in [Docket No.: ED–2013–ICCD–0076] [FR Doc. 2013–25694 Filed 10–29–13; 8:45 am] accordance with the Paperwork BILLING CODE 4000–01–P Agency Information Collection Reduction Act of 1995 (PRA) (44 U.S.C. Activities; Submission to the Office of 3506(c)(2)(A)), provides the general Management and Budget for Review public and Federal agencies with an DEPARTMENT OF EDUCATION and Approval; Comment Request; opportunity to comment on proposed, Targeted Teacher Shortage Areas revised, and continuing collections of National Advisory Committee on Nationwide Listing information. This helps the Department Institutional Quality and Integrity assess the impact of its information (NACIQI) Correction collection requirements and minimize the public’s reporting burden. It also AGENCY: U.S. Department of Education, In notice document 2013–24594 Office of Postsecondary Education, appearing on pages 62602–62603 in the helps the public understand the Department’s information collection National Advisory Committee on issue of Tuesday, October 22, 2013, Institutional Quality and Integrity. make the following correction: requirements and provide the requested data in the desired format. ED is ACTION: Announcement of the time and On page 62603, in the first column, soliciting comments on the proposed location of the December 12–13, 2013 beginning on the second line, ‘‘[insert information collection request (ICR) that National Advisory Committee on the 30th day after publication of this is described below. The Department of Institutional Quality and Integrity notice]’’ should read ‘‘November 21, Education is especially interested in (NACIQI) meeting. 2013’’. public comment addressing the [FR Doc. C1–2013–25939 Filed 10–29–13; 8:45 am] following issues: (1) Is this collection ADDRESSES: U.S. Department of BILLING CODE 1505–01–D necessary to the proper functions of the Education, Office of Postsecondary

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Education, 1990 K Street NW., Room 1990 K Street NW., Room 8073, • Wednesday, November 6, 2013, at 8072, Washington, DC 20006. Washington, DC 20006–8129, telephone: The California State University- NACIQI’S Statutory Authority and (202) 219–7035, fax: (202) 219–7005, or Dominguez Hills, Los Angeles, CA; Function: The NACIQI is established email: [email protected]. • Wednesday, November 13, 2013, at under Section 114 of the HEA of 1965, Electronic Access to This Document: George Mason University, Arlington, as amended, 20 U.S.C. 1011c. The The official version of this document is VA; NACIQI advises the Secretary of the document published in the Federal • Friday, November 15, 2013, at the Education about: Register. Free Internet access to the University of Northern Iowa, Cedar • The establishment and enforcement official edition of the Federal Register Falls, IA; and of the criteria for recognition of and the Code of Federal Regulations is • Thursday, November 21, 2013, at accrediting agencies or associations available via the Federal Digital System Louisiana State University, Baton under Subpart 2, Part H, Title IV, of the at: www.gpo.gov/fdsys. At this site you Rouge, LA. HEA, as amended. can view this document, as well as all All forums are open to the public. • The recognition of specific other documents of this Department ADDRESSES: You may submit comments accrediting agencies or associations or a published in the Federal Register, in regarding the Administration’s specific State approval agency. text or Adobe Portable Document proposals by electronic mail or by U.S. • The preparation and publication of Format (PDF). To use PDF, you must Mail, commercial delivery, or hand the list of nationally recognized have Adobe Acrobat Reader, which is delivery. Submit electronic mail to accrediting agencies and associations. available free at the site. • [email protected]. If you mail or The eligibility and certification You may also access documents of the deliver your comments, address them to process for institutions of higher Department published in the Federal Josh Henderson, U.S. Department of education under Title IV, of the HEA, Register by using the article search Education, 400 Maryland Avenue SW., together with recommendations for feature at: www.federalregister.gov. Room 7E313, Washington, DC 20202– improvement in such process. Specifically, through the advanced • 0001. The relationship between (1) search feature at this site, you can limit Privacy Note: The Department’s accreditation of institutions of higher your search to documents published by policy is to make all comments received education and the certification and the Department. from members of the public available. eligibility of such institutions, and (2) Brenda Dann-Messier, Therefore, commenters should be State licensing responsibilities with careful to include in their comments respect to such institutions. Assistant Secretary for Vocational and Adult • Education, delegated the authority to perform only information that they wish to make Any other advisory function publicly available. relating to accreditation and the functions and duties of the Assistant Secretary for Postsecondary Education. institutional eligibility that the FOR FURTHER INFORMATION CONTACT: For Secretary may prescribe. [FR Doc. 2013–25736 Filed 10–29–13; 8:45 am] information, including information SUMMARY: This meeting notice is an BILLING CODE P about the process for collecting public update to the previous notice (78 FR input, contact: Josh Henderson, Office of the Under Secretary, U.S. Department of 50401) published on August 19, 2013, DEPARTMENT OF EDUCATION and sets forth the time and location for Education, 400 Maryland Avenue SW., Washington, DC 20202. Telephone: the December 12–13, 2013, meeting of Open Forum on College Value and the National Advisory Committee on (202) 453–7239 or by email: Affordability and College Ratings [email protected]. Institutional Quality and Integrity System (NACIQI). If you use a telecommunications AGENCY: Office of the Under Secretary, device for the deaf (TDD) or text DATES: Meeting Date and Place: The Department of Education. telephone (TTY), call the Federal Relay NACIQI meeting will be held on ACTION: Notice. Service (FRS), toll free, at 1–800–877– December 12, 2013, from 8:00 a.m. to 8339. 5:30 p.m., and on December 13, 2013 SUMMARY: In August 2013, President If you have difficulty understanding from 8:00 a.m. to 5:30 p.m., at the Barack Obama outlined the English you may request language Liaison Capitol Hill Hotel, 415 New Administration’s plans and proposals assistance services for Department Jersey Ave. NW., Washington, DC for combating rising college costs and information that is available to the 20001. making college affordable for American public. These language assistance Reasonable Accommodations: The families. As part of an effort to gather services are available free of charge. If meeting site is accessible to individuals public input about these proposals, and you need more information about with disabilities. If you will need an in particular the development of a interpretation or translation services, auxiliary aid or service to participate in college ratings system, the Department please call 1–800–USA–LEARN (1–800– the meeting (e.g., interpreting service, has scheduled four open forums around 872–5327) (TTY: 1–800–437–0833), or assistive listening device, or materials in the country. At each open forum, a email us at: Ed.Language.Assistance@ an alternate format), notify the contact senior Administration official will be ed.gov. Or write to: U.S. Department of person listed in this notice at least two present to introduce the themes and key Education, Information Resource Center, weeks before the scheduled meeting questions about the college value and LBJ Education Building, 400 Maryland date. Although we will attempt to meet affordability agenda and to receive Ave. SW., Washington, DC 20202–0001. a request received after that date, we feedback about the development of a SUPPLEMENTARY INFORMATION: may not be able to make available the college ratings system. Forum requested auxiliary aid or service participants are welcome to share their Background because of insufficient time to arrange views on measuring value and A higher education is one of the most it. affordability, and in particular on the important investments individuals can FOR FURTHER INFORMATION CONTACT: metrics and weighting of the ratings make in their futures. At the same time, Carol Griffiths, Executive Director, system. higher education has never been more NACIQI, U.S. Department of Education, DATES: The open forums will be held: expensive. College tuition keeps rising.

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The average tuition at a public four-year Individuals desiring to present may also access documents of the college has increased by more than 250 comments or feedback at an open forum Department published in the Federal percent over the past three decades, must register by sending an email at Register by using the article search while incomes for families in the least three days prior to the open forum feature at: www.federalregister.gov. middle three quintiles (that is, incomes to [email protected] with the Specifically, through the advanced ranging from $27,219 to $115,896) grew subject ‘‘Open Forum Registration.’’ It is search feature at this site, you can limit by only 7, 14, and 24 percent likely that each participant will be your search to documents published by respectively, according to data from the limited to five minutes for comments. the Department. College Board and the U.S. Census. The Department will notify registrants Dated: October 25, 2013. Declining state funding has forced of the location and time slot reserved for Martha Kanter, students to shoulder a higher proportion them. An individual may make only one of college costs, and tuition has almost presentation at the open forums. If we Under Secretary of Education. doubled as a share of public college receive more registrations than we are [FR Doc. 2013–25739 Filed 10–29–13; 8:45 am] revenues over the past 25 years, growing able to accommodate, the Department BILLING CODE 4000–01–P from 25 percent to 47 percent, according reserves the right to reject the to data from the State Higher Education registration of an entity or individual Executive Officers Association. While a that is affiliated with an entity or DEPARTMENT OF ENERGY college education remains a worthwhile individual that is already scheduled to investment overall, the average present comments and to select among Advanced Scientific Computing borrower now graduates with more than registrants to ensure that a broad range Advisory Committee $26,000 in debt. Only 58 percent of first- of entities and individuals is allowed to AGENCY: Office of Science, Department time, full-time students who began present. We will accept walk-in of Energy. college in 2004 earned a four-year registrations for any remaining time ACTION: Notice of Open Teleconference. degree within six years. Loan default slots on a first-come, first-served basis at rates are rising, and too many young the Department’s on-site registration SUMMARY: This notice announces an adults are burdened with debt as they table. Transcripts from the open forums open meeting of the Advanced seek to start a family, buy a home, will be made available on the Scientific Computing Advisory launch a business, or save for www.ed.gov Web site for public Committee (ASCAC). This meeting retirement. viewing. Speakers may also submit replaces the cancelled ASCAC meeting In August 2013, President Obama written comments. Please see the that was to be held in Washington, DC outlined his agenda for combating rising ADDRESSES section for instructions. on October 8–9, 2013, due to the college costs and making college Other Feedback government shutdown. The Federal affordable for American families. His Advisory Committee Act (Pub. L. 92– plan will measure college performance In addition to the open forums, the 463, 86 Stat. 770) requires that public through a new ratings system so Department will seek input in a variety notice of these meetings be announced students and families have the of venues and formats. During the in the Federal Register. information to select schools that months of October, November, and DATES: Monday, November 18, 2013; provide the best value. After this ratings December 2013, the Department will 1:00 p.m. to 5:00 p.m. (Mountain Time) system is well established, Congress can host town halls and roundtables, and it tie Federal student aid to college will participate in events organized by ADDRESSES: The meeting is open to the performance so that students maximize other organizations. We also encourage public. To access the call: their Federal aid at institutions the public to submit comments. Please 1. Dial Toll-Free Number: 866–740– 1260 (U.S. & Canada) providing the best value. The plan will see the ADDRESSES section for 2. International participants dial: also promote innovation and instructions. competition by taking down barriers http://www.readytalk.com/intl that stand in their way and shining a Accessible Format 3. Enter access code 8083012, light on the most cutting-edge college Individuals with disabilities can followed by ‘‘#’’ To ensure we have sufficient access practices and new technologies for obtain this document in an accessible lines for the public, we request that providing high value at low costs. And format (e.g., braille, large print, members of the public notify the DFO, to help student borrowers struggling audiotape, or compact disc) on request Christine Chalk, that you intend to call- with their existing debt, the President is to the program contact person listed into the meeting via email at: committed to ensuring that all under FOR FURTHER INFORMATION [email protected]. borrowers who need it can have access CONTACT. FOR FURTHER INFORMATION CONTACT: to the Pay As You Earn plan that caps Electronic Access to This Document loan payments at 10 percent of income. Melea Baker, Office of Advanced Additional information on the The official version of this document Scientific Computing Research; SC–21/ proposals is available in the ‘‘FACT is the document published in the Germantown Building; U. S. Department SHEET on the President’s Plan to Make Federal Register. Free Internet access to of Energy; 1000 Independence Avenue College More Affordable: A Better the official edition of the Federal SW., Washington, DC 20585–1290; Bargain for the Middle Class,’’ which is Register and the Code of Federal Telephone (301) 903–7486, (Email: posted online at www.whitehouse.gov/ Regulations is available via the Federal [email protected]). the-press-office/2013/08/22/fact-sheet- Digital System at: www.gpo.gov/fdsys. SUPPLEMENTARY INFORMATION: president-s-plan-make-college-more- At this site you can view this document, Purpose of the Meeting: The purpose affordable-better-bargain-. as well as all other documents of the of this meeting is to provide advice and Department published in the Federal guidance on a continuing basis to the Open Forum Arrangements Register, in text or Adobe Portable Department of Energy on scientific Please check for updated information Document Format (PDF). To use PDF priorities within the field of advanced on the forum locations, logistics, and you must have Adobe Acrobat Reader, scientific computing research. other outreach activities, at www.ed.gov. which is available free at the site. You Tentative Agenda Topics:

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• View from Germantown areas of environmental restoration, 2008. The Federal Advisory Committee • Update on Exascale waste management, and related Act (Public Law No. 92–463, 86 Stat. • Applied Math Committee of Visitors activities. 770) requires that agencies publish these Public Participation: The Tentative Agenda: notices in the Federal Register to allow teleconference meeting is open to the 1. Corrective Action Alternatives for for public participation. This notice public. Corrective Action Unit 550, Smokey announces the meeting of the Biomass If you would like to file a written Contamination Area—Work Plan Research and Development Technical statement with the Committee, you may Item #1 Advisory Committee. do so either before or after the meeting. 2. External Peer Review for Yucca Flat— DATES: If you would like to make oral Work Plan Item #2 November 21, 2013 8:30 a.m.–5:30 p.m. 3. Radionuclide Decay at Use-Restricted statements regarding any of the items on November 22, 2013 8:30 a.m.–1:00 p.m. the agenda, you should contact Melea Soil Sites—Work Plan Item #3 ADDRESSES: American Geophysical Baker via FAX at 301–903–4846 or via 4. Overview of the Groundwater Open Union, 2000 Florida Avenue NW., email ([email protected]). House—Work Plan Item #4 Washington, DC 20009. You must make your request for an oral Public Participation: The EM SSAB, statement at least 5 business days prior Nevada, welcomes the attendance of the FOR FURTHER INFORMATION CONTACT: to the meeting. Reasonable provision public at its advisory committee Elliott Levine, Designated Federal will be made to include the scheduled meetings and will make every effort to Official for the Committee, Office of oral statements on the agenda. The accommodate persons with physical Energy Efficiency and Renewable Chairperson of the Committee will disabilities or special needs. If you Energy, U.S. Department of Energy, conduct the meeting to facilitate the require special accommodations due to 1000 Independence Avenue SW., orderly conduct of business. Public a disability, please contact Barbara Washington, DC 20585; (202) 586–1476; comment will follow the 10-minute Ulmer at least seven days in advance of Email: [email protected] or Roy rule. the meeting at the phone number listed Tiley at (410) 997–7778 ext. 220; Email: Minutes: The minutes of this meeting above. Written statements may be filed [email protected]. will be available for public review and with the Board either before or after the SUPPLEMENTARY INFORMATION: copying within 45 days by contacting meeting. Individuals who wish to make Purpose of Meeting: To provide Ms. Melea Baker at the address listed oral presentations pertaining to agenda advice and guidance that promotes above. items should contact Barbara Ulmer at research and development leading to the Issued in Washington, DC, on October 23, the telephone number listed above. The production of biobased fuels and 2013. request must be received five days prior biobased products. LaTanya R. Butler, to the meeting and reasonable provision Tentative Agenda: Agenda will will be made to include the presentation include the following: Deputy Committee Management Officer. in the agenda. The Deputy Designated • Update on USDA Biomass R&D [FR Doc. 2013–25811 Filed 10–29–13; 8:45 am] Federal Officer is empowered to Activities BILLING CODE 6450–01–P conduct the meeting in a fashion that • Update on DOE Biomass R&D will facilitate the orderly conduct of Activities • DEPARTMENT OF ENERGY business. Individuals wishing to make Annual Committee Recommendations public comments can do so during the • Presentations on the Use of Marginal Environmental Management Site- 15 minutes allotted for public Lands for Bioenergy Specific Advisory Board, Nevada comments. • Overview of the Bioenergy Knowledge Minutes: Minutes will be available by Discovery Framework (KDF) Tool AGENCY: Department of Energy. writing to Barbara Ulmer at the address Public Participation: In keeping with ACTION: Notice of Open Meeting. listed above or at the following Web procedures, members of the public are site: http://nv.energy.gov/nssab/ welcome to observe the business of the SUMMARY: This notice announces a MeetingMinutes.aspx. meeting of the Environmental Biomass Research and Development Issued at Washington, DC, on October 23, Technical Advisory Committee. To Management Site-Specific Advisory 2013. Board (EM SSAB), Nevada. The Federal attend the meeting and/or to make oral LaTanya R. Butler, Advisory Committee Act (Pub. L. 92– statements regarding any of the items on 463, 86 Stat. 770) requires that public Deputy Committee Management Officer. the agenda, you must contact Elliott notice of this meeting be announced in [FR Doc. 2013–25814 Filed 10–29–13; 8:45 am] Levine at 202–586–1476; Email: the Federal Register. BILLING CODE 6450–01–P [email protected] or Roy Tiley at (410) 997–7778 ext. 220; Email: rtiley@ DATES: Wednesday, November 20, 2013, bcs-hq.com at least 5 business days 5:00 p.m. DEPARTMENT OF ENERGY prior to the meeting. Members of the ADDRESSES: National Atomic Testing public will be heard in the order in Museum, 755 E. Flamingo Road, Las Biomass Research and Development which they sign up at the beginning of Vegas, Nevada 89119. Technical Advisory Committee the meeting. Reasonable provision will FOR FURTHER INFORMATION CONTACT: AGENCY: Energy Efficiency and be made to include the scheduled oral Barbara Ulmer, Board Administrator, Renewable Energy, Department of statements on the agenda. The Co-chairs 232 Energy Way, M/S 505, North Las Energy. of the Committee will make every effort Vegas, Nevada 89030. Phone: (702) 630– ACTION: Notice of open meeting. to hear the views of all interested 0522; Fax (702) 295–5300 or Email: parties. If you would like to file a [email protected]. SUMMARY: This notice announces an written statement with the Committee, SUPPLEMENTARY INFORMATION: open meeting of the Biomass Research you may do so either before or after the Purpose of the Board: The purpose of and Development Technical Advisory meeting. The Co-chairs will conduct the the Board is to make recommendations Committee under Section 9008(d) of the meeting to facilitate the orderly conduct to DOE–EM and site management in the Food, Conservation, and Energy Act of of business.

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Minutes: The minutes of the meeting (713) 627–4102 (telephone) or (713) provide copies of their protests only to will be available within 45 days for 627–5947 (fax) laconnolly@ the party or parties directly involved in public review and copying at http:// spectraenergy.com. the protest. biomassboard.gov/committee/ Pursuant to section 157.9 of the Persons who wish to comment only meetings.html. Commission’s regulations, 18 CFR on the environmental review of this Issued at Washington, DC, on October 23, 157.9, within 90 days of this Notice, the project should submit an original and 2013. Commission’s staff will either complete two copies of their comments to the its environmental assessment (EA) and LaTanya R. Butler, Secretary of the Commission. place it into the Commission’s public Deputy Committee Management Officer. Environmental commenters will be record (eLibrary) for this proceeding; or placed on the Commission’s [FR Doc. 2013–25813 Filed 10–29–13; 8:45 am] issue a Notice of Schedule for environmental mailing list, will receive BILLING CODE 6450–01–P Environmental Review. If a Notice of copies of the environmental documents, Schedule for Environmental Review is and will be notified of meetings issued, it will indicate, among other DEPARTMENT OF ENERGY associated with the Commission’s milestones, the anticipated date for the environmental review process. Federal Energy Regulatory Commission’s staff issuance of the EA Environmental commenters will not be Commission for this proposal. The filing of the EA required to serve copies of filed in the Commission’s public record for documents on all other parties. [Docket No. CP14–4–000] this proceeding or the issuance of a However, the non-party commenters Notice of Schedule for Environmental will not receive copies of all documents Texas Eastern Transmission, LP; Review will serve to notify federal and filed by other parties or issued by the Notice of Application state agencies of the timing for the Commission (except for the mailing of completion of all necessary reviews, and Take notice that on October 10, 2013, environmental documents issued by the the subsequent need to reach a final Texas Eastern Transmission, (Texas Commission) and will not have the right decision on a request for federal Eastern), having its principal place of to seek court review of the authorization within 90 days of the date business at 5400 Westheimer Court, Commission’s final order. of issuance of the Commission staff’s Houston, Texas, 77056, filed an The Commission strongly encourages EA. electronic filings of comments, protests application in Docket No. CP14–4–000 There are two ways to become pursuant to Section 7(b) and Section and interventions in lieu of paper using involved in the Commission’s review of the ‘‘eFiling’’ link at http:// 7(c) of the Natural Gas Act (NGA), and this project. First, any person wishing to Part 157 of the Commission’s www.ferc.gov. Persons unable to file obtain legal status by becoming a party electronically should submit an original regulations, for a certificate of public to the proceedings for this project and 5 copies of the protest or convenience and necessity to construct should, on or before the comment date intervention to the Federal Energy its Emerald Longwall Mine Panel D1 stated below, file with the Federal Regulatory Commission, 888 First Street Project. Texas Eastern states in its Energy Regulatory Commission, 888 NE., Washington, DC 20426. See, 18 application that, due to anticipated First Street NE., Washington, DC 20426, CFR 385.2001(a)(1)(iii) and the longwall mining activities of Emerald a motion to intervene in accordance instructions on the Commission’s Web Coal Resources, LP (Emerald) in Greene with the requirements of the site under the ‘‘e-Filing’’ link. County, Pennsylvania in Panel D1 of Commission’s Rules of Practice and Comment Date: November 13, 2013. Emerald’s mine, ground subsidence may Procedure (18 CFR 385.214 or 385.211) occur. In order to maintain the and the Regulations under the NGA (18 Dated: October 23, 2013. operation of their existing pipeline CFR 157.10). A person obtaining party Kimberly D. Bose, facilities throughout the duration of the status will be placed on the service list Secretary. subsidence anticipated from the mining maintained by the Secretary of the [FR Doc. 2013–25699 Filed 10–29–13; 8:45 am] activities, Texas Eastern proposes to Commission and will receive copies of BILLING CODE 6717–01–P excavate, elevate, replace, and/or all documents filed by the applicant and abandon by removal certain sections of by all other parties. A party must submit five different pipelines and appurtenant 7 copies of filings made with the DEPARTMENT OF ENERGY facilities located in Greene County, Commission and must mail a copy to Pennsylvania, all as more fully set forth the applicant and to every other party in Federal Energy Regulatory in the application, which is on file with the proceeding. Only parties to the Commission the Commission and open to public proceeding can ask for court review of [Project No. 12721–006] inspection. This filing may also be Commission orders in the proceeding. viewed on the web at http:// However, a person does not have to Pepperell Hydro Company, LLC; Notice www.ferc.gov using the ‘‘eLibrary’’ link. intervene in order to have comments of Application Tendered for Filing With Enter the docket number excluding the considered. The second way to the Commission and Soliciting last three digits in the docket number participate is by filing with the Additional Study Requests field to access the document. For Secretary of the Commission, as soon as assistance, contact FERC at possible, an original and two copies of Take notice that the following [email protected] or call comments in support of or in opposition hydroelectric application has been filed toll-free, (886) 208–3676 or TYY, (202) to this project. The Commission will with the Commission and is available 502–8659. consider these comments in for public inspection. Any questions regarding this determining the appropriate action to be a. Type of Application: Original Major application should be directed to Lisa taken, but the filing of a comment alone License. A. Connolly, General Manager, Rates will not serve to make the filer a party b. Project No.: P–12721–006. and Certificates, Texas Eastern to the proceeding. The Commission’s c. Date filed: October 9, 2013. Transmission, LP, P.O. Box 1642, rules require that persons filing d. Applicant: Pepperell Hydro Houston, Texas, 77251, or by calling comments in opposition to the project Company, LLC.

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e. Name of Project: Pepperell includes a 244-foot-long spillway with a You may also register online at http:// Hydroelectric Project. crest elevation of 197.0 feet North www.ferc.gov/docs-filing/ f. Location: On the Nashua River, in American Vertical Datum 1988 esubscription.asp to be notified via the town of Pepperell, Middlesex (NAVD88) and 3-foot-high wooden email of new filings and issuances County, Massachusetts. The project flashboards; (2) a 3.5-mile-long, 294-acre related to this or other pending projects. would not occupy lands of the United impoundment with a normal water For assistance, contact FERC Online States. surface elevation of 200.0 feet NAVD88; Support. g. Filed Pursuant to: Federal Power (3) a 25-foot-long, 26-foot-wide intake p. With this notice, we are initiating Act 16 U.S.C. 791(a)—825(r). structure with two 7.75-foot-wide, 14.0- consultation with the Massachusetts h. Applicant Contact: Dr. Peter B. foot-high leaf intake gates; (4) a 12-foot- Historical Commission, as required by Clark, 823 Bay Road, P.O. Box 149, diameter, 565.5-foot-long penstock; (5) a section 106 of the National Historic Hamilton, MA 01936; (978) 468–3999; 14.0 to 58.0-foot-wide, 25.5-foot-long Preservation Act and the regulations of or [email protected]. forebay structure that includes a 1.5- the Advisory Council on Historic i. FERC Contact: Brandon Cherry at foot-diameter gate with low level drain Preservation, 36 CFR 800.4. (202) 502–8328 or brandon.cherry@ pipe and a 4.25-foot-wide, 3.5-foot-high q. Procedural schedule: The ferc.gov. trash sluice gate; (6) six 8-foot-wide, 10- application will be processed according j. Cooperating agencies: Federal, state, foot-high turbine bay headgates with to the following preliminary Hydro local, and tribal agencies with 17.33-foot-high trashracks with 1.75- Licensing Schedule. Revisions to the jurisdiction and/or special expertise inch clear bar spacing; (7) a 62-foot- schedule will be made as appropriate. with respect to environmental issues wide, 41-foot-long powerhouse Issue Deficiency Letter—December 2013 that wish to cooperate in the containing three 640-kilowatt (kW) Issue Notice of Acceptance—February preparation of the environmental turbine-generating units for a total 2014 document should follow the installed capacity 1,920 kW; (8) three Issue Scoping Document—March 2014 instructions for filing such requests 11.5-foot-long turbine draft tubes; (9) Issue Notice of Ready for Environmental described in item l below. Cooperating three 265-foot-long, 600-volt Analysis—May 2014 agencies should note the Commission’s transmission lines; and (10) appurtenant Issue Notice of the Availability of the policy that agencies that cooperate in facilities. EA—October 2014 the preparation of the environmental The existing project also includes a document cannot also intervene. See 94 Dated: October 23, 2013. downstream fish passage facility that Kimberly D. Bose, FERC ¶ 61,076 (2001). consists of: (1) A 3-foot-wide, 23-foot- k. Pursuant to section 4.32(b)(7) of 18 Secretary. long concrete intake with a 4-foot-wide, CFR of the Commission’s regulations, if 8-foot-high entrance gate; (2) a [FR Doc. 2013–25700 Filed 10–29–13; 8:45 am] any resource agency, Indian Tribe, or collection channel with a 2-foot-high, 2- BILLING CODE 6717–01–P person believes that an additional foot-wide overflow stoplog notch; and scientific study should be conducted in (3) a 5-foot-deep plunge pool. order to form an adequate factual basis DEPARTMENT OF ENERGY for a complete analysis of the The existing project bypasses application on its merit, the resource approximately 700 feet of the Nashua Federal Energy Regulatory agency, Indian Tribe, or person must file River. Commission Pepperell Hydro Company, LLC a request for a study with the [Docket No. ER14–120–000] Commission not later than 60 days from proposes to increase the capacities of two turbine-generating units to 764 kW the date of filing of the application, and BTG Pactual Commodities (US) LLC; and 735 kW and install a new 67.5-kW serve a copy of the request on the Supplemental Notice That Initial low flow turbine-generating unit at the applicant. Market-Based Rate Filing Includes dam for a total installed capacity of l. Deadline for filing additional study Request for Blanket Section 204 2,206.5 kW. Pepperell Hydro Company, requests and requests for cooperating Authorization agency status: December 9, 2013. LLC proposes to operate the project in The Commission strongly encourages a run-of-river mode and release: (1) 46 This is a supplemental notice in the electronic filing. Please file additional cubic feet per second (cfs) or inflow to above-referenced proceeding, of BTG study requests and requests for the bypassed reach from April 1 through Pactual Commodities (US) LLC’s cooperating agency status using the November 30, which would include 17 application for market-based rate Commission’s eFiling system at http:// cfs or inflow through the existing authority, with an accompanying rate www.ferc.gov/docs-filing/efiling.asp. For downstream fish passage facility from schedule, noting that such application assistance, please contact FERC Online June 15 through October 30; and (2) 15 includes a request for blanket Support at FERCOnlineSupport@ cfs or inflow to the bypassed reach from authorization, under 18 CFR part 34, of ferc.gov, (866) 208–3676 (toll free), or December 1 through March 31. The future issuances of securities and (202) 502–8659 (TTY). In lieu of project would have an estimated average assumptions of liability. electronic filing, please send a paper annual generation of 7,997 megawatt- Any person desiring to intervene or to copy to: Secretary, Federal Energy hours. protest should file with the Federal Regulatory Commission, 888 First Street o. A copy of the application is Energy Regulatory Commission, 888 NE., Washington, DC. 20426. The first available for review at the Commission First Street NE., Washington, DC 20426, page of any filing should include docket in the Public Reference Room or may be in accordance with Rules 211 and 214 number P–12721–006. viewed on the Commission’s Web site at of the Commission’s Rules of Practice m. The application is not ready for http://www.ferc.gov using the and Procedure (18 CFR 385.211 and environmental analysis at this time. ‘‘eLibrary’’ link. Enter the docket 385.214). Anyone filing a motion to n. The existing, unlicensed Pepperell number excluding the last three digits in intervene or protest must serve a copy Hydroelectric Project consists of: (1) The the docket number field to access the of that document on the Applicant. 23.5-foot-high, 251-foot-long concrete document. For assistance, contact FERC Notice is hereby given that the gravity ogee Pepperell Paper dam that Online Support. deadline for filing protests with regard

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to the applicant’s request for blanket Commission’s Rules of Practices and Dated: October 23, 2013. authorization, under 18 CFR part 34, of Procedure, 18 CFR 385.207(a)(2)(2013), Kimberly D. Bose, future issuances of securities and Enbridge Pipelines (FSP) LLC (Enbridge Secretary. assumptions of liability is November 6, FSP) filed a petition requesting a [FR Doc. 2013–25697 Filed 10–29–13; 8:45 am] 2013. declaratory order approving specific BILLING CODE 6717–01–P The Commission encourages aspects of Enbridge FSP’s proposed electronic submission of protests and tariff and rate structure for the Flanagan interventions in lieu of paper, using the South Pipeline Project, as further DEPARTMENT OF ENERGY FERC Online links at http:// described in the petition. www.ferc.gov. To facilitate electronic Any person desiring to intervene or to Federal Energy Regulatory service, persons with Internet access protest in this proceedings must file in Commission who will eFile a document and/or be accordance with Rules 211 and 214 of listed as a contact for an intervenor the Commission’s Rules of Practice and [Docket No. CD14–3–000] must create and validate an Procedure (18 CFR 385.211 and eRegistration account using the 385.214) on or before 5:00 p.m. Eastern Borough of Ellwood City, eRegistration link. Select the eFiling time on the specified comment date. Pennsylvania; Notice of Preliminary link to log on and submit the Protests will be considered by the Determination of a Qualifying Conduit intervention or protests. Commission in determining the Hydropower Facility and Soliciting Persons unable to file electronically appropriate action to be taken, but will Comments and Motions To Intervene should submit an original and 5 copies not serve to make protestants parties to of the intervention or protest to the the proceeding. Anyone filing a motion On October 10, 2013, the Borough of Federal Energy Regulatory Commission, to intervene or protest must serve a copy Ellwood City, Pennsylvania, filed a 888 First Street NE., Washington, DC of that document on the Petitioner. notice of intent to construct a qualifying The Commission encourages 20426. conduit hydropower facility, pursuant electronic submission of protests and The filings in the above-referenced to section 30 of the Federal Power Act, interventions in lieu of paper, using the proceeding(s) are accessible in the as amended by section 4 of the FERC Online links at http:// Commission’s eLibrary system by Hydropower Regulatory Efficiency Act www.ferc.gov. To facilitate electronic clicking on the appropriate link in the of 2013 (HREA). The Ellwood City service, persons with Internet access above list. They are also available for Hydroelectric Project would be located review in the Commission’s Public who will eFile a document and/or be listed as a contact for an intervenor at the Borough of Ellwood City’s Reference Room in Washington, DC. wastewater treatment plant in Lawrence There is an eSubscription link on the must create and validate an eRegistration account using the County, Pennsylvania. Web site that enables subscribers to Applicant Contact: August E. Maas, receive email notification when a eRegistration link. Select the eFiling link to log on and submit the P.E., Hill Engineering, 8 Gibson Street, document is added to a subscribed North East, PA 16428, Phone No. (814) docket(s). For assistance with any FERC intervention or protests. Persons unable to file electronically 725–8659. Online service, please email FERC should submit an original and 5 copies [email protected], or call (866) FERC Contact: Christopher Chaney, of the intervention or protest to the 208–3676 (toll free). For TTY, call (202) Phone No. (202) 502–6778, email: Federal Energy Regulatory Commission, [email protected]. 502–8659. 888 First St. NE., Washington, DC Qualifying Conduit Hydropower Dated: October 23, 2013. 20426. Facility Description: The proposed Kimberly D. Bose, The filings in the above proceedings project would consist of: (1) An intake Secretary. are accessible in the Commission’s eLibrary system by clicking on the from the existing 24-inch wastewater [FR Doc. 2013–25696 Filed 10–29–13; 8:45 am] discharge pipe; (2) a proposed 20-foot- BILLING CODE 6717–01–P appropriate link in the above list. They are also available for review in the wide by 20-foot-long powerhouse, Commission’s Public Reference Room in containing one 10-kilowatt generating unit; (3) a proposed discharge pipe DEPARTMENT OF ENERGY Washington, DC. There is an eSubscription link on the Web site that returning flows to an existing rip-rapped Federal Energy Regulatory enables subscribers to receive email wastewater discharge channel; and (4) Commission notification when a document is added appurtenant facilities. The proposed to a subscribed docket(s). For assistance project would have an estimated annual [Docket No. OR14–5–000] with any FERC Online service, please generating capacity of 70 megawatt- hours. Enbridge Pipelines (FSP) LLC; Notice email [email protected]. or of Petition for Declaratory Order call (866) 208–3676 (toll free). For TTY, A qualifying conduit hydropower call (202) 502–8659. facility is one that is determined or Take notice that on October 22, 2013, Comment Date: 5:00 p.m. Eastern time deemed to meet all of the criteria shown pursuant to Rule 207(a)(2) of the on November 22, 2013 in the table below.

TABLE 1—CRITERIA FOR QUALIFYING CONDUIT HYDROPOWER FACILITY

Satisfies Statutory provision Description (Y/N)

FPA 30(a)(3)(A), as amended by HREA ...... The conduit the facility uses is a tunnel, canal, pipeline, aqueduct, flume, Y ditch, or similar manmade water conveyance that is operated for the dis- tribution of water for agricultural, municipal, or industrial consumption and not primarily for the generation of electricity.

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TABLE 1—CRITERIA FOR QUALIFYING CONDUIT HYDROPOWER FACILITY—Continued

Satisfies Statutory provision Description (Y/N)

FPA 30(a)(3)(C)(i), as amended by HREA ...... The facility is constructed, operated, or maintained for the generation of Y electric power and uses for such generation only the hydroelectric poten- tial of a non-federally owned conduit. FPA 30(a)(3)(C)(ii), as amended by HREA ...... The facility has an installed capacity that does not exceed 5 megawatts ...... Y FPA 30(a)(3)(C)(iii), as amended by HREA ...... On or before August 9, 2013, the facility is not licensed, or exempted from Y the licensing requirements of Part I of the FPA.

Preliminary Determination: Based please contact FERC Online Support at September 26, 2013, October 15, 2013, upon the above criteria, Commission [email protected], (866) and November 12, 2013 regarding EPA’s staff preliminarily determines that the 208–3676 (toll free), or (202) 502–8659 draft Toxic Substances Control Act proposal satisfies the requirements for a (TTY). In lieu of electronic filing, please (TSCA) chemical risk assessment, qualifying conduit hydropower facility send a paper copy to: Secretary, Federal ‘‘TSCA Workplan Chemical Risk not required to be licensed or exempted Energy Regulatory Commission, 888 Assessment for Dichloromethane and N- from licensing. First Street NE., Washington, DC 20426. Methylpyrrolidone.’’ The first meeting Comments and Motions to Intervene: A copy of all other filings in reference was held as scheduled. Due to the Deadline for filing comments contesting to this application must be accompanied government shutdown, however, EPA whether the facility meets the qualifying by proof of service on all persons listed has rescheduled the remaining two peer criteria is 45 days from the issuance in the service list prepared by the review meetings and is announcing the date of this notice. Commission in this proceeding, in rescheduled meetings in this notice. Deadline for filing motions to accordance with 18 CFR 4.34(b) and EPA is also extending the due date for intervene is 30 days from the issuance 385.2010. public comments. date of this notice. Locations of Notice of Intent: Copies DATES: Meetings. The peer review Anyone may submit comments or a of the notice of intent can be obtained meetings will be held on Friday, motion to intervene in accordance with directly from the applicant or such November 8, 2013, from 10:00 a.m. to the requirements of Rules of Practice copies can be viewed and reproduced at 6:00 p.m., EST; and Friday, December and Procedure, 18 CFR 385.210 and the Commission in its Public Reference 13, 2013, from 12:00 p.m. to 3:00 p.m., 385.214. Any motions to intervene must Room, Room 2A, 888 First Street NE., EST. Comments. Written comments on be received on or before the specified Washington, DC 20426. The filing may the assessment must be submitted on or deadline date for the particular also be viewed on the web at http:// before November 22, 2013. proceeding. www.ferc.gov/docs-filing/elibrary.asp ADDRESSES: Submit your comments, Filing and Service of Responsive using the ‘‘eLibrary’’ link. Enter the identified by docket identification (ID) Documents: All filings must (1) bear in docket number (e.g., CD14–3) in the number EPA–HQ–OPPT–2012–0725, by all capital letters the ‘‘COMMENTS docket number field to access the one of the methods described in the CONTESTING QUALIFICATION FOR A document. For assistance, call toll-free notice published in the Federal Register CONDUIT HYDROPOWER FACILITY’’ 1–866–208–3676 or email on August 23, 2013, a copy of which is or ‘‘MOTION TO INTERVENE,’’ as [email protected]. For TTY, available in the docket at http:// applicable; (2) state in the heading the call (202) 502–8659. www.regulations.gov. name of the applicant and the project Dated: October 23, 2013. number of the application to which the FOR FURTHER INFORMATION CONTACT: For Kimberly D. Bose, filing responds; (3) state the name, technical information contact: Stan address, and telephone number of the Secretary. Barone, Jr., Risk Assessment Division person filing; and (4) otherwise comply [FR Doc. 2013–25698 Filed 10–29–13; 8:45 am] (7403M), Office of Pollution Prevention with the requirements of sections BILLING CODE 6717–01–P and Toxics, Environmental Protection 385.2001 through 385.2005 of the Agency, 1200 Pennsylvania Ave. NW., Commission’s regulations.1 All Washington, DC 20460–0001; telephone comments contesting Commission staff’s ENVIRONMENTAL PROTECTION number (202) 564–1169; email address: preliminary determination that the AGENCY [email protected]. facility meets the qualifying criteria For peer review meeting logistics must set forth their evidentiary basis. [EPA–HQ–OPPT–2012–0725; FRL–9902–24] contact: Susie Warner, the Scientific Consulting Group (SCG), Inc., 656 The Commission strongly encourages Dichloromethane and N- electronic filing. Please file motions to Quince Orchard Rd., Suite 210, Methylpyrrolidone TSCA Chemical Gaithersburg, MD 20878–1409; intervene and comments using the Risk Assessment; Notice of Commission’s eFiling system at http:// telephone number: (301) 670–4990, ext. Rescheduled Public Meetings and 227; fax number: (301) 670–3815; email www.ferc.gov/docs-filing/efiling.asp. Extension of Opportunity To Comment Commenters can submit brief comments address: [email protected]. up to 6,000 characters, without prior AGENCY: Environmental Protection SUPPLEMENTARY INFORMATION: For details registration, using the eComment system Agency (EPA). about the meetings regarding the peer at http://www.ferc.gov/docs-filing/ ACTION: Notice. review of EPA’s draft Toxic Substances ecomment.asp. You must include your Control Act (TSCA) chemical risk name and contact information at the end SUMMARY: On August 23, 2013, EPA assessment, ‘‘TSCA Workplan Chemical of your comments. For assistance, announced that it would be holding Risk Assessment for Dichloromethane three peer review meetings by web and N-Methylpyrrolidone,’’ please see 1 18 CFR 385.2001–2005 (2013). connect and teleconference on the notice that published in the Federal

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Register of August 23, 2013 (78 FR ADDRESSES: Submit your comments, • Food manufacturing (NAICS code 52525) (FRL 9397–4). The first meeting identified by docket identification (ID) 311). was held as scheduled. However, due to number and the EPA File Symbol of • Pesticide manufacturing (NAICS the government shutdown, EPA has interest as shown in the body of this code 32532). rescheduled the remaining two peer document, by one of the following B. What should I consider as I prepare review meetings and is announcing the methods: my comments for EPA? rescheduled meetings in this notice. • Federal eRulemaking Portal: http:// EPA is also extending the due date for www.regulations.gov. Follow the online 1. Submitting CBI. Do not submit this public comments. To be sure your instructions for submitting comments. information to EPA through comments are contained in the peer Do not submit electronically any regulations.gov or email. Clearly mark review record and are available to the information you consider to be the part or all of the information that peer reviewers, please submit the Confidential Business Information (CBI) you claim to be CBI. For CBI comments on or before November 22, or other information whose disclosure is information in a disk or CD–ROM that 2013. restricted by statute. you mail to EPA, mark the outside of the The rescheduled second peer review • Mail: OPP Docket, Environmental disk or CD–ROM as CBI and then panel meeting on November 8, 2013, Protection Agency Docket Center (EPA/ identify electronically within the disk or will be devoted to deliberations of the DC), (28221T), 1200 Pennsylvania Ave. CD–ROM the specific information that draft Dichloromethane (DCM) and N- NW., Washington, DC 20460–0001. is claimed as CBI. In addition to one Methylpyrrolidone (NMP) TSCA risk • Hand Delivery: To make special complete version of the comment that assessment by the peer review panel, arrangements for hand delivery or includes information claimed as CBI, a guided by the charge questions to the delivery of boxed information, please copy of the comment that does not peer review panel. follow the instructions at http:// contain the information claimed as CBI The third and final peer review panel www.epa.gov/dockets/contacts.htm. must be submitted for inclusion in the meeting on December 13, 2013, will Additional instructions on public docket. Information so marked focus on the peer review panel’s commenting or visiting the docket, will not be disclosed except in discussion of its draft DCM and NMP along with more information about accordance with procedures set forth in TSCA risk assessment recommendations dockets generally, is available at http:// 40 CFR part 2. 2. Tips for preparing your comments. to EPA, which will be posted on the www.epa.gov/dockets. contractor Web site prior to the final When submitting comments, remember FOR FURTHER INFORMATION CONTACT: peer review meeting. to: Susan Lewis, Antimicrobials Division i. Identify the document by docket ID List of Subjects (AD) (7510P), telephone number: (703) number and other identifying Environmental protection, Chemicals, 305–7090, email address: information (subject heading, Federal Peer review, Risk assessments, [email protected]; Robert McNally, Register date and page number). Dichloromethane and N- Biopesticides and Pollution Prevention ii. Follow directions. The Agency may Methylpyrrolidone. Division (BPPD) (7511P), telephone ask you to respond to specific questions number: (703) 305–7090, email address: Dated: October 24, 2013. or organize comments by referencing a [email protected]; or Lois Rossi, Code of Federal Regulations (CFR) part Jeff Morris, Registration Division (RD) (7505P), or section number. Director, Office of Pollution Prevention and telephone number: (703) 305–7090, iii. Explain why you agree or disagree; Toxics. email address: [email protected]. suggest alternatives and substitute [FR Doc. 2013–25737 Filed 10–25–13; 4:15 pm] The mailing address for each contact language for your requested changes. BILLING CODE 6560–50–P person is: Office of Pesticide Programs, iv. Describe any assumptions and Environmental Protection Agency, 1200 provide any technical information and/ Pennsylvania Ave. NW., Washington, or data that you used. ENVIRONMENTAL PROTECTION DC 20460–0001. As part of the mailing v. If you estimate potential costs or AGENCY address, include the contact person’s burdens, explain how you arrived at [EPA–HQ–OPP–2013–0026; FRL–9398–6] name, division, and mail code. The your estimate in sufficient detail to division to contact is listed at the end allow for it to be reproduced. Pesticide Products; Registration of each pesticide petition summary. vi. Provide specific examples to Applications for New Active SUPPLEMENTARY INFORMATION: illustrate your concerns and suggest Ingredients alternatives. I. General Information vii. Explain your views as clearly as AGENCY: Environmental Protection A. Does this action apply to me? possible, avoiding the use of profanity Agency (EPA). or personal threats. ACTION: Notice. You may be potentially affected by viii. Make sure to submit your this action if you are an agricultural comments by the comment period SUMMARY: EPA has received several producer, food manufacturer, or deadline identified. applications to register pesticide pesticide manufacturer. The following products containing active ingredients list of North American Industrial II. Registration Applications not included in any currently registered Classification System (NAICS) codes is EPA has received several applications pesticide products. Pursuant to the not intended to be exhaustive, but rather to register pesticide products containing Federal Insecticide, Fungicide, and provides a guide to help readers active ingredients not included in any Rodenticide Act (FIFRA), EPA is hereby determine whether this document currently registered pesticide products. providing notice of receipt and applies to them. Potentially affected Pursuant to the provisions of FIFRA opportunity to comment on these entities may include: section 3(c)(4), EPA is hereby providing applications. • Crop production (NAICS code 111). notice of receipt and opportunity to DATES: Comments must be received on • Animal production (NAICS code comment on these applications. Notice or before November 29, 2013. 112). of receipt of these applications does not

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imply a decision by the Agency on these 2013–0627. Applicant: Hercules, Inc., a ACTION: Notice. applications. For actions being Wholly Owned Subsidiary of Ashland, evaluated under the Agency’s public Inc., 5500 Blazer Parkway, Dublin, OH SUMMARY: This notice announces EPA’s participation process for registration 43017. Active ingredient: Ammonium order for the cancellations, voluntarily actions, there will be an additional Carbamate. Product type: Antimicrobial. requested by the registrants and opportunity for a 30-day public Proposed uses: Paper mill process water accepted by the Agency, of the products comment period on the proposed and re-circulating cooling water listed in Table 1a and 1b of Unit II., decision. Please see the Agency’s public systems. (AD) pursuant to the Federal Insecticide, participation Web site for additional 6. EPA File Symbol: 84542–O. Docket Fungicide, and Rodenticide Act information on this process (http:// ID Number: EPA–HQ–OPP–2013–0433. (FIFRA). This cancellation order follows www.epa.gov/pesticides/regulating/ Applicant: Cupron Technologies, P.O. a August 21, 2013 Federal Register registration-public-involvement.html). Box 85073, Richmond, VA 23285. Notice of Receipt of Requests from the EPA received the following applications Active ingredient: Cuprous iodide. registrants listed in Table 2 of Unit II. to register pesticide products containing Product type: Bacteristat, fungistat. to voluntarily cancel these product an active ingredient not included in any Proposed uses: Indoor non-food use on registrations. In the August 21, 2013 currently registered products: fibers, carpet, films, plastics, coatings, notice, EPA indicated that it would 1. EPA File Symbols: 1021–EANA, laminates, adhesives and sealants. (AD) issue an order implementing the 1021–EANE, 1021–EANG, 1021–EANL, 7. EPA File Symbol: 89615–R. Docket cancellations, unless the Agency 1021–EANR, 1021–EANT, 1021–EANU, ID Number: EPA–HQ–OPP–2013–0575. received substantive comments within 10308–GA, and 10308–GL. Docket ID Applicant: Amy Plato Roberts of the 30 day comment period that would Number: EPA–HQ–OPP–2013–0478. Technology Science Group, Inc., 712 merit its further review of these Applicant: I2L Research USA Inc., 1330 Fifth St., Suite A, Davis, CA 95616 on requests, or unless the registrants Dillon Heights Ave., Baltimore, MD behalf of IAB, S.L. (Investigaciones y withdrew their requests. The Agency 21228–1199, on behalf of Sumitomo Aplicaciones Biotechnologicas S.L.), did not receive any comments on the Chemical Company, LTD., 27–1, Avda, Paret del Patriarca 11–B, Ap. 30, notice. Further, the registrants did not Shinkawa 2-Chome, Chuo-Ku, Tokyo 46113 Moncada (Valencia) Spain. Active withdraw their requests. Accordingly, 104–8260, Japan. Active ingredient: ingredient: Bacillus subtilis strain IAB/ EPA hereby issues in this notice a Momfluorothrin. Product type: BS03. Product type: Fungicide. cancellation order granting the Insecticide. Proposed uses: Non-food Proposed use: Manufacturing use. requested cancellations. Any residential indoor/outdoor uses. (RD) (BPPD) distribution, sale, or use of the products 2. EPA File Symbols: 6704–OG and 8. EPA File Symbols: 89615–E, subject to this cancellation order is 6704–OU. Docket ID Number: EPA–HQ– 89615–G, 89615–L, and 89615–U. permitted only in accordance with the OPP–2013–0538. Applicant: U.S. Fish Docket ID Number: EPA–HQ–OPP– terms of this order, including any and Wildlife Service, Arlington Square 2013–0575. Applicant: Amy Plato existing stocks provisions. Building, MS 725, Washington, DC Roberts of Technology Science Group, DATES: The cancellations are effective 20240. Active ingredient: Male sea Inc., 712 Fifth St., Suite A, Davis, CA October 30, 2013. lamprey pheromone (3- 95616 on behalf of IAB, S.L. FOR FURTHER INFORMATION CONTACT: John (Investigaciones y Aplicaciones ketopetromyzonol-24-sulfate). Product W. Pates, Jr., Pesticide Re-Evaluation Biotechnologicas S.L.), Avda, Paret del type: Biochemical pheromone. Proposed Division (7508P), Office of Pesticide Patriarca 11–B, Ap. 30, 46113 Moncada uses: Mating disruptor for sea lamprey Programs, Environmental Protection (Valencia) Spain. Active ingredient: control. (BPPD) Agency, 1200 Pennsylvania Ave. NW., 3. EPA File Symbol: 71975–G. Docket Bacillus subtilis strain IAB/BS03. Washington, DC 20460–0001; telephone ID Number: EPA–HQ–OPP–2013–0570. Product type: Fungicide. Proposed uses: number: (703) 308–8195; email address: Applicant: Matthew Brooks, Ph.D. of Greenhouse, field use, and home and [email protected]. Ag-Chem Consulting, 12208 Quinque garden use on various fruits and Lane, Clifton, VA 20124 on behalf of vegetables, cotton, hops, tobacco, fruit SUPPLEMENTARY INFORMATION: Northwest Agricultural Products, 821 and nut trees, turf, and ornamentals. I. General Information South Chestnut Ave., Pasco, WA 99301. (BPPD) A. Does this action apply to me? Active ingredient: Pseudomonas List of Subjects fluorescens strain D7. Product type: This action is directed to the public Herbicide. Proposed use: Manufacturing Environmental protection, Pesticides in general, and may be of interest to a use. (BPPD) and pests. wide range of stakeholders including 4. EPA File Symbol: 71975–U. Docket Dated: September 30, 2013. environmental, human health, and ID Number: EPA–HQ–OPP–2013–0570. Lois Rossi, agricultural advocates; the chemical Applicant: Matthew Brooks, Ph.D. of Director, Registration Division, Office of industry; pesticide users; and members Ag-Chem Consulting, 12208 Quinque Pesticide Programs. of the public interested in the sale, Lane, Clifton, VA 20124 on behalf of [FR Doc. 2013–25596 Filed 10–29–13; 8:45 am] distribution, or use of pesticides. Since Northwest Agricultural Products, 821 BILLING CODE 6560–50–P others also may be interested, the South Chestnut Ave., Pasco, WA 99301. Agency has not attempted to describe all Active ingredient: Pseudomonas the specific entities that may be affected fluorescens strain D7. Product type: ENVIRONMENTAL PROTECTION by this action. Herbicide. Proposed uses: For AGENCY suppression of downy brome, B. How can I get copies of this document medusahead, Japanese brome and [EPA–HQ–OPP–2009–1017; FRL–9403–2] and other related information? jointed goatgrass on cropland, Product Cancellation Order for Certain The docket for this action, identified rangeland, turf and non-crop areas. Pesticide Registrations by docket identification (ID) number (BPPD) EPA–HQ–OPP–2009–1017, is available 5. EPA File Symbol: 74655–GU. AGENCY: Environmental Protection at http://www.regulations.gov or at the Docket ID Number: EPA–HQ–OPP– Agency (EPA). Office of Pesticide Programs Regulatory

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Public Docket (OPP Docket) in the the visitor instructions and additional remaining tralkoxydim products Environmental Protection Agency information about the docket available registered for use in the United States. Docket Center (EPA/DC), EPA West at http://www.epa.gov/dockets. EPA is not proposing any tolerance Bldg., Rm. 3334, 1301 Constitution Ave. actions for tralkoxydim at this time. II. What action is the agency taking? NW., Washington, DC 20460–0001. The However, if any tolerance actions Public Reading Room is open from 8:30 This notice announces the become necessary in the future, there a.m. to 4:30 p.m., Monday through cancellation, as requested by registrants, will be an announcement published in Friday, excluding legal holidays. The of products registered under FIFRA the Federal Register and a public telephone number for the Public section 3. In addition, this notice also comment period on the proposed action. Reading Room is (202) 566–1744, and announces the cancellation, as These registrations are listed in the telephone number for the OPP requested by Syngenta Crop Protection, sequence by registration number in Docket is (703) 305–5805. Please review LLC (Syngenta), of the last two Tables 1a and 1b of this unit.

TABLE 1a—PRODUCT CANCELLATIONS

EPA Registration No. Product name Chemical name

000100–01125 ...... Impasse Termite System ...... Lambda-cyhalothrin. 000100–01156 ...... Impasse Premix GR ...... Lambda-cyhalothrin. 000100–01166 ...... Impasse Termite Blocker ...... Lambda-cyhalothrin. 000264–01048 ...... EXP3 Seed Applied Nematicide/Insecticide ...... Thiodicarb. 000432–01237 ...... BES Garden Dust 10% ...... Carbaryl. 000432–01238 ...... AES Carbaryl Insecticide Spray-RTU ...... Carbaryl. 000432–01239 ...... BES Garden Dust 5% ...... Carbaryl. 000432–01244 ...... AES Sevin Granules Ant, Flea, Tick & Grub Killer (1% Carbaryl. Sevin). 001022–00563 ...... Chapco KD ...... Potassium dimethyldithiocarbamate. 001022–00574 ...... DCD–SDDC ...... Sodium dimethyldithiocarbamate. 001022–00577 ...... Buffalo System II ...... Sodium dimethyldithiocarbamate. 009688–00296 ...... Chemsico 0.51% Granular Propiconazole ...... Propiconazole. 010807–00448 ...... Country Vet Flea & Tick Fogger with Growth Inhibitor ...... MGK 264, Pyrethrins (NO INERT USE), Pyriproxyfen, Permethrin. 010807–00454 ...... Country Vet Fly Insecticide & Repellent for Horses ...... Stabilene, Pyrethrins (NO INERT USE), Piperonyl butoxide. 010807–00466 ...... CB Country Vet 80 ...... Piperonyl butoxide, Pyrethrins (NO INERT USE). 010807–00469 ...... Country Vet Fogger with Esfenvalerate ...... Pyrethrins (NO INERT USE), Piperonyl butoxide, Esfenvalerate, MGK 264. 011556–00121 ...... Advantage TM 110 ...... Imidacloprid. 040391–00010 ...... Entech Fog-10...... MGK 264, Piperonyl butoxide, Pyrethrins (NO INERT USE). 060061–00107 ...... Woodtreat XL Sapstain Control Chemical ...... 1-Decanaminium, N-decyl-N,N-dimethyl-, chloride and Propiconazole. 060061–00114 ...... Woodtreat P Sapstain Control Chemical ...... Propiconazole. 060061–00121 ...... Woodtreat XP Sapstain Control Product ...... Propiconazole and Carbamic acid, butyl-, 3-iodo-2- propynyl ester. 060061–00124 ...... Valvtect Marine Premium Diesel With Bioguard Additive .... Morpholine, 4,4′-(2-ethyl-2-nitro-1,3-propanediyl)bis-, 4-(2- Nitrobutyl)morpholine. 073049–00450 ...... Dinotefuran Fly Bait ...... Dinotefuron. 083558–00005 ...... Paraquat Dichloride Technical ...... Paraquat dichloride. MD–010001 ...... Sevin Brand XLR Plus Carbaryl Insecticide ...... Carbaryl. PA–010002 ...... Sevin XLR Plus Carbaryl Insecticide ...... Carbaryl. WI–110001 ...... Starcane Ultra Herbicide ...... Fluroxypyr 1-methylheptyl ester.

TABLE 1b—TRALKOXYDIM PRODUCT CANCELLATIONS

Registration No. Product name Chemical name

000100–01105 ...... Achieve 40DG Herbicide ...... Tralkoxydim. 000100–01106 ...... Achieve 80DG Herbicide ...... Tralkoxydim.

Table 2 of this unit includes the and 1b of this unit, in sequence by EPA registration numbers of the products names and addresses of record for all company number. This number listed in Table 1a and 1b of this unit. registrants of the products in Table 1a corresponds to the first part of the EPA

TABLE 2—REGISTRANTS OF CANCELLED PRODUCTS

EPA Company No. Company name and address

100 ...... Syngenta Crop Protection, LLC, 410 Swing Rd., P.O. Box 18300, Greensboro, NC 27419–8300.

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TABLE 2—REGISTRANTS OF CANCELLED PRODUCTS—Continued

EPA Company No. Company name and address

264 MD010001, PA010002 ...... Bayer Cropscience LP, 2 T.W. Alexander Dr., P.O. Box 12014, Research Tri- angle Park, NC 27709. 432 ...... Bayer Environmental Science, A Division of Bayer Cropscience LP, 2 T.W. Alex- ander Dr., P.O. Box 12014, Research Triangle Park, NC 27709. 1022 ...... IBC Manufacturing Co., 416 E. Brooks Rd., Memphis, TN 38109. 9688 ...... Chemsico, A Division of United Industries Corp., P.O. Box 142642, St. Louis, MO 63114–0642. 10807 ...... Amrep, Inc, 990 Industrial Park Dr., Marietta, GA 30062. 11556 ...... Bayer Healthcare, LLC, P.O. Box 390, Shawnee Mission, KS 66201–0390. 40391 ...... Entech Systems Corporation, Agent: Regguide, 509 Tower Valley Dr., Hillsboro, MO 63050. 60061 ...... Kop-Coat, Inc., 3020 William Pitt Way, Pittsburgh, PA 15238. 73049 ...... Valent Biosciences Corporation, Environmental Science Division, 870 Technology Way, Libertyville, IL 60048–6316. 83558 ...... Celsius Property B.V., Amsterdam (NL), Agent: Makhteshim Agan of North Amer- ica, Inc., 3120 Highwoods Blvd., Suite 100, Raleigh, NC 27604. WI–110001 ...... Dow Agrosciences LLC, 9330 Zionsville Rd., Suite 308/2E, Indianapolis, IN 46268–1054.

III. Summary of Public Comments in the Federal Register of August 21, except for export in accordance with Received and Agency Response to 2013. The comment period closed on FIFRA section 17, or proper disposal. Comments September 20, 2013. Persons other than the registrants may sell, distribute, or use existing stocks of During the public comment period VI. Provisions for Disposition of products listed in Table 1b of Unit II. provided, EPA received no comments in Existing Stocks response to the August 21, 2013 Federal until existing stocks are exhausted, Register notice (78 FR 51721) (FRL– Existing stocks are those stocks of provided that such sale, distribution, or 9396–5) announcing the Agency’s registered pesticide products which are use is consistent with the terms of the receipt of the requests for voluntary currently in the United States and previously approved labeling on, or that cancellations of products listed in Table which were packaged, labeled, and accompanied, the canceled products. released for shipment prior to the 1a and 1b of Unit II. List of Subjects effective date of the cancellation action. IV. Cancellation Order The existing stocks provisions for the Environmental protection, Pesticides Pursuant to FIFRA section 6(f), EPA products subject to this order are as and pests. hereby approves the requested follows. Dated: October 21, 2013. cancellations of the registrations A. For All Products Identified in Table Richard P. Keigwin, Jr., identified in Table 1a and 1b of Unit II. 1a in Unit II Director, Pesticide Re-Evaluation Division, Accordingly, the Agency hereby orders Office of Pesticide Programs. The registrants may continue to sell that the product registrations identified [FR Doc. 2013–25593 Filed 10–29–13; 8:45 am] in Table 1a and 1b of Unit II. are and distribute existing stocks of BILLING CODE 6560–50–P canceled. The effective date of the products listed in Table 1a of Unit II. cancellations that are the subject of this until October 30, 2014, which is 1 year notice is October 30, 2013. Any after the publication of the Cancellation Order in the Federal Register. distribution, sale, or use of existing FEDERAL MARITIME COMMISSION stocks of the products identified in Thereafter, the registrants are prohibited Table 1a and 1b of Unit II. in a manner from selling or distributing products Notice of Agreements Filed inconsistent with any of the provisions listed in Table 1a, except for export in for disposition of existing stocks set accordance with FIFRA section 17, or The Commission hereby gives notice forth in Unit VI. will be a violation of proper disposal. Persons other than the of the filing of the following agreements FIFRA. registrants may sell, distribute, or use under the Shipping Act of 1984. existing stocks of products listed in Interested parties may submit comments V. What is the agency’s authority for Table 1a of Unit II. until existing stocks on the agreements to the Secretary, taking this action? are exhausted, provided that such sale, Federal Maritime Commission, Section 6(f)(1) of FIFRA provides that distribution, or use is consistent with Washington, DC 20573, within ten days a registrant of a pesticide product may the terms of the previously approved of the date this notice appears in the at any time request that any of its labeling on, or that accompanied, the Federal Register. Copies of the pesticide registrations be canceled or canceled products. agreements are available through the amended to terminate one or more uses. Commission’s Web site (www.fmc.gov) B. For All Tralkoxydim Products FIFRA further provides that, before or by contacting the Office of Identified in Table 1b in Unit II acting on the request, EPA must publish Agreements at (202)–523–5793 or a notice of receipt of any such request The registrants may continue to sell [email protected]. in the Federal Register. Thereafter, and distribute existing stocks of Agreement No.: 012227. following the public comment period, products listed in Table 1b of Unit II. Title: NYK/Eukor North America/Far the EPA Administrator may approve until November 1, 2014. Thereafter, the East Space Charter Agreement. such a request. The notice of receipt for registrants are prohibited from selling or Parties: Nippon Yusen Kaisha and this action was published for comment distributing products listed in Table 1b, Eukor Car Carrier Inc.

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Filing Party: Robert Shababb, shown pursuant to section 19 of the The applications listed below, as well Corporate Counsel, NYK Line (North Shipping Act of 1984 (46 U.S.C. 40101) as other related filings required by the America) Inc.; 300 Lighting Way, 5th effective on the date shown. Board, are available for immediate Floor; Secaucus, NJ 07094. License No.: 1446F. inspection at the Federal Reserve Bank Synopsis: The agreement authorizes Name: Campbell, William H. dba indicated. The applications will also be NYK and Eukor to charter space to each William H. Campbell Co. available for inspection at the offices of other on each other’s ro-ro vessels in the Address: 911 Western Avenue, Suite the Board of Governors. Interested trade between various North America 560, Seattle, WA 98104. persons may express their views in coastal ports, on the one hand, and Date Revoked: September 4, 2013. writing on the standards enumerated in Japan, South Korea, and China, on the Reason: Voluntary Surrender of the BHC Act (12 U.S.C. 1842(c)). If the other hand. License. proposal also involves the acquisition of Agreement No.: 012230. License No.: 16394N. a nonbanking company, the review also Title: P3 Network Vessel Sharing Name: First Express (Los Angeles), includes whether the acquisition of the Agreement. Inc. nonbanking company complies with the Parties: A.P. Moller-Maersk A/S Address: 5353 West Imperial standards in section 4 of the BHC Act trading under the name Maersk Line; Highway, Suite 900, Los Angeles, CA (12 U.S.C. 1843). Unless otherwise CMA CGM S.A.; and MSC 90045. noted, nonbanking activities will be Mediterranean Shipping Company, S.A. Date Revoked: August 14, 2013. conducted throughout the United States. Filing Party: Wayne R. Rohde, Esq.; Reason: Failed to maintain a valid Unless otherwise noted, comments Cozen O’Connor; 1627 I Street NW., bond. regarding each of these applications Suite 1100; Washington, DC 20006. License No.: 019060N. must be received at the Reserve Bank Synopsis: The agreement authorizes Name: Skelton Sherborne Inc. indicated or the offices of the Board of the parties to share vessels and engage Address: 1225 North Loop West, Suite Governors not later than November 25, in related cooperative activities in the 432, Houston, TX 77008. 2013. trades between each of Asia, North Date Revoked: September 9, 2013. A. Federal Reserve Bank of Dallas (E. Reason: Voluntary Surrender of Europe, and the Mediterranean on the Ann Worthy, Vice President) 2200 License. one hand and the U.S. on the other North Pearl Street, Dallas, Texas 75201– hand. License No.: 023246F. 2272: Name: Acceleron Trade Services, Ltd. By Order of the Federal Maritime 1. Park Cities Financial Group, Inc., Co. Dallas, Texas; to become a bank holding Commission. Address: 11250 West Road, Bldg. I–1, Dated: October 25, 2013. company by acquiring 100 percent of Houston, TX 77065. Park Cities Bank, Dallas, Texas. Rachel E. Dickon, Date Revoked: September 11, 2013. Assistant Secretary. Reason: Voluntary Surrender of Board of Governors of the Federal Reserve [FR Doc. 2013–25785 Filed 10–29–13; 8:45 am] License. System, October 24, 2013. BILLING CODE 6730–01–P License No.: 023909N. Michael J. Lewandowski, Name: E and N International Associate Secretary of the Board. Transport LLC. [FR Doc. 2013–25590 Filed 10–29–13; 8:45 am] FEDERAL MARITIME COMMISSION Address: 4574 Swilcan Bridge Lane BILLING CODE 6210–01–P North, Jacksonville, FL 32224. Ocean Transportation Intermediary Date Revoked: August 14, 2013. License Reissuances Reason: Failed to maintain a valid GENERAL SERVICES bond. The Commission gives notice that the ADMINISTRATION following Ocean Transportation James A. Nussbaumer, [Notice–GTAC–2013–03; Docket No. 2013– Intermediary license has been reissued Deputy Director, Bureau of Certification and 0002; Sequence 30] pursuant to section 19 of the Shipping Licensing. Act of 1984 (46 U.S.C. 40101). [FR Doc. 2013–25789 Filed 10–29–13; 8:45 am] Government-Wide Travel Advisory License No.: 024003N. BILLING CODE 6730–01–P Committee (GTAC); Public Advisory Name: Concord Atlantic Inc. dba Committee Meetings Concord Atlantic Shipping. AGENCY: Office of Government-Wide Address: 10095 Washington Blvd., FEDERAL RESERVE SYSTEM North, Suite 211, Laurel, MD. Policy, General Services Administration (GSA). Date Reissued: August 16, 2013. Formations of, Acquisitions by, and ACTION: Notice. James A. Nussbaumer, Mergers of Bank Holding Companies Deputy Director, Bureau of Certification and The companies listed in this notice SUMMARY: This notice announces the Licensing. have applied to the Board for approval, cancellation of the GTAC November 7, [FR Doc. 2013–25783 Filed 10–29–13; 8:45 am] pursuant to the Bank Holding Company 2013 meeting originally published on BILLING CODE 6730–01–P Act of 1956 (12 U.S.C. 1841 et seq.) September 12, 2013 in the Federal (BHC Act), Regulation Y (12 CFR part Register. This notice also confirms the 225), and all other applicable statutes GTAC meeting scheduled for December FEDERAL MARITIME COMMISSION and regulations to become a bank 10, 2013. holding company and/or to acquire the DATES: The meeting will be held on Ocean Transportation Intermediary Tuesday, December 10, 2013, beginning License Revocations and Terminations assets or the ownership of, control of, or the power to vote shares of a bank or at 9:00 a.m. and ending no later than The Commission gives notice that the bank holding company and all of the 4:00 p.m. Eastern Standard Time. following Ocean Transportation banks and nonbanking companies FOR FURTHER INFORMATION CONTACT: Ms. Intermediary licenses have been owned by the bank holding company, Marcerto Barr, Designated Federal revoked or terminated for the reason including the companies listed below. Officer (DFO), Government-wide Travel

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Advisory Committee (GTAC), Office of Background: The PCEA was Dated: October 25, 2013. Government-wide Policy, General established to identify best practices Anne Rung, Services Administration, 1800 F Street and make recommendations to the Associate Administrator, Office of NW., Washington, DC 20405, 202–208– President on the efficient administration Government-Wide Policy, General Services 7654 or by email to: [email protected]. of elections in order to ensure that all Administration. SUPPLEMENTARY INFORMATION: This eligible voters have the opportunity to [FR Doc. 2013–25817 Filed 10–29–13; 8:45 am] notice announces the cancellation of the cast their ballots without undue delay, BILLING CODE 6820–14–P GTAC November 7, 2013 meeting and to improve the experience of voters originally published in the Federal facing other obstacles in casting their Register at 78 FR 56231 on September ballots. DEPARTMENT OF HEALTH AND 12, 2013. The purpose of the GTAC is HUMAN SERVICES to conduct public meetings, submit Agenda: The purpose of this meeting reports and to make recommendations is for Commission members to discuss Centers for Disease Control and to existing travel policies, processes and the subjects set forth in Executive Order Prevention 13639, as amended, and relate back to procedures, including the per diem [30 Day–14–13GX] methodology to assure that official the full Commission information that travel is conducted in a responsible was gathered from meetings apart from Agency Forms Undergoing Paperwork manner with the need to minimize the public hearings. Reduction Act Review costs. Meeting Access: The teleconference The Centers for Disease Control and Dated: October 24, 2013. meeting is open to the public; interested Prevention (CDC) publishes a list of Carolyn Austin-Diggs, members of the public may listen to the information collection requests under Acting Deputy Associate Administrator, PCEA discussion using 1–888–606–9808 review by the Office of Management and Office of Asset and Transportation and pass code 7036450. Members of the Budget (OMB) in compliance with the Management, Office of Government-wide public will not have the opportunity to Paperwork Reduction Act (44 U.S.C. Policy. ask questions or otherwise participate in Chapter 35). To request a copy of these [FR Doc. 2013–25669 Filed 10–29–13; 8:45 am] the teleconference. However, members requests, call (404) 639–7570 or send an BILLING CODE 6820–14–P of the public wishing to comment email to [email protected]. Send written should follow the steps detailed in comments to CDC Desk Officer, Office of Procedures for Providing Public Management and Budget, Washington, GENERAL SERVICES Comments below. DC or by fax to (202) 395–5806. Written ADMINISTRATION Attendance at the Meeting: Please see comments should be received within 30 [Notice–MK–2013–10; Docket No. 2013– the PCEA Web site (http:// days of this notice. 0002; Sequence 32] www.supportthevoter.gov) for any Proposed Project The Presidential Commission on materials available in advance of the Assessment of a Comprehensive Election Administration (PCEA); meeting. Detailed meeting minutes will Human Immunodeficiency Virus (HIV) Upcoming Public Advisory Meeting be posted within 90 days of the meeting. Clinic-Based Intervention to Promote Procedures for Providing Public Patients’ Health and Reduce AGENCY: Office of Government-Wide Transmission Risk—New—National Policy, U.S. General Services Comments: In general, public comments Center for HIV/AIDS, Viral Hepatitis, Administration (GSA). will be posted on the PCEA Web site (see above). All comments, including STD, and TB Prevention (NCHHSTP), ACTION: Meeting notice. attachments and other supporting Centers for Disease Control and SUMMARY: The Presidential Commission materials, received are part of the public Prevention (CDC). on Election Administration (PCEA), a record and subject to public disclosure. Background and Brief Description Federal Advisory Committee established Any comments submitted in connection in accordance with the Federal This research is funded by the CDC with the PCEA meeting will be made and the National Institute of Mental Advisory Committee Act (FACA), 5 available to the public under the U.S.C., App., and Executive Order Health (NIMH). The purpose of the provisions of the Federal Advisory project is to implement and evaluate an 13639, as amended by EO 13644, will Committee Act. The public is invited to hold a meeting open to the public via HIV clinic-based intervention, the goals submit written comments for this of which are to increase the percentage teleconference on Thursday, November meeting until 5:00 p.m. Eastern 14, 2013. of patients who have an undetectable Standard Time on Monday, November viral load, who are adherent to DATES: Effective date: October 30, 2013. 11, 2013, by either of the following antiretroviral therapy (ART), who attend Meeting date: The meeting will be methods: clinic regularly for primary care, and held on Thursday, November 14, 2013, practice safer sexual behaviors. beginning at 4:00 p.m. and ending no Electronic or Paper Statements: Realizing these goals will promote HIV later than 6:30 p.m., Eastern Standard Submit electronic statements to Mr. patients’ health and reduce risk of Time. Nejbauer, Designated Federal Officer at [email protected]; or transmitting HIV to others. These are FOR FURTHER INFORMATION CONTACT: Mr. objectives of the National HIV/AIDS Mark Nejbauer, Designated Federal send three (3) copies of any written statements to Mr. Nejbauer at the PCEA Strategy and goals of the strategic plan Officer, General Services of the Division of HIV/AIDS Prevention, GSA address above. Written testimony Administration, Presidential Centers for Disease Control and not received by 5:00 p.m. Eastern Time Commission on Election Prevention. Administration, 1776 G Street NW., on Monday, November 11, 2013 may be The project will be conducted at six Washington, DC 20006, email submitted but will not be considered at university-affiliated HIV clinics in the [email protected]. the Thursday, November 14, 2013 United States: (1) Baylor College of SUPPLEMENTARY INFORMATION: meeting. Medicine, Houston, (2) Boston Medical

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Center, (3) University of Alabama, counseling from a prevention specialist behavior that are completed before Birmingham, (4) University of California if needed. patients see the CBI videos. Patients at San Diego, (5) University of Miami The following data will be collected with detectable viral loads will be asked Medical School, and (6) University of in this project: to do the CBI three times, spaced Washington in the state of Washington. • A data manager at each clinic will approximately three months apart. This proposed data collection will occur electronically transmit patient clinical Patients’ CBI responses are not shared over 3 years. data to CDC using a unique study with their clinic providers. (3) On a The intervention that is part of this identification code as the only means of quarterly basis, 50 patients at each project focuses primarily on HIV identifying a patient’s data. The data clinic will be asked to complete a brief patients who have a detectable viral files sent to CDC will not contain any exit survey after their medical exam, load, i.e., their viral load is not as low medical record numbers, names, or asking about topics that the provider as it can be and is not fully controlled. social security numbers. The may have discussed with them at their The intervention components include: information will be encrypted and medical visit (e.g., adherence, clinic (1) Brief counseling from medical stored in a secure CDC server. The data attendance). collected from patients include (1) a providers during primary care visits • informed by a behavioral screener behavioral screener self-administered by Data collected from primary care completed by patients; (2) a computer- patients each time they have a primary medical providers includes a quarterly based intervention (CBI) in which care visit. Patients complete the survey asking them to indicate the types patients see short videos of HIV medical screener in the waiting room before of topics/issues they discussed with providers (not their own providers) seeing their primary care provider. (2) their HIV patients. talking about the importance of regular CBI assessment items on demographic There are no costs to respondents clinic attendance, adherence to ART, factors, clinic attendance, ART status, other than their time. The total and safer sex; and (3) one-on-one ART adherence, and sexual risk annualized burden hours are 3,378.

ESTIMATED ANNUALIZED BURDEN HOURS

Average Number of Number of burden per Type of respondent Form name respondents responses per response respondent (hours)

Data manager at clinic ...... Electronic transmittal of clinical variables archived in clinic 6 4 24 databases (no form). Patient ...... Behavioral screener (patients with detectable or 6,315 4 5/60 undetectable VL; paper form). Patient ...... CBI assessment items for patients with detectable VL (elec- 2,069 3 5/60 tronic form). Patient ...... Patient exit survey (electronic form) ...... 1,200 1 5/60 Primary care provider ...... Provider survey (electronic form) ...... 120 4 10/60

LeRoy Richardson, and over) and disabled (under age 65) DATES: Effective Date: January 1, 2014. Chief, Information Collection Review Office, beneficiaries enrolled in Part B of the FOR FURTHER INFORMATION CONTACT: M. Office of Scientific Integrity, Office of the Medicare Supplementary Medical Kent Clemens, (410) 786–6391. Associate Director for Science Office of the Insurance (SMI) program beginning SUPPLEMENTARY INFORMATION: Director, Centers for Disease Control and January 1, 2014. In addition, this notice Prevention. announces the monthly premium for I. Background [FR Doc. 2013–25711 Filed 10–29–13; 8:45 am] aged and disabled beneficiaries as well Part B is the voluntary portion of the BILLING CODE 4163–18–P as the income-related monthly Medicare program that pays all or part adjustment amounts to be paid by of the costs for physicians’ services, beneficiaries with modified adjusted outpatient hospital services, certain DEPARTMENT OF HEALTH AND gross income above certain threshold home health services, services furnished HUMAN SERVICES amounts. The monthly actuarial rates by rural health clinics, ambulatory Centers for Medicare & Medicaid for 2014 are $209.80 for aged enrollees surgical centers, comprehensive Services and $218.90 for disabled enrollees. The outpatient rehabilitation facilities, and standard monthly Part B premium rate certain other medical and health [CMS–8055–N] for all enrollees for 2014 is $104.90, services not covered by Medicare Part which is equal to 50 percent of the A, Hospital Insurance. Medicare Part B RIN 0938–AR58 monthly actuarial rate for aged enrollees is available to individuals who are Medicare Program; Medicare Part B or approximately 25 percent of the entitled to Medicare Part A, as well as Monthly Actuarial Rates, Premium expected average total cost of Part B to U.S. residents who have attained age Rate, and Annual Deductible coverage for aged enrollees. (The 2013 65 and are citizens, and aliens who were Beginning January 1, 2014 standard premium rate was $104.90.) lawfully admitted for permanent The Part B deductible for 2014 is residence and have resided in the AGENCY: Centers for Medicare & $147.00 for all Part B beneficiaries. If a United States for 5 consecutive years. Medicaid Services (CMS), HHS. beneficiary has to pay an income-related Part B requires enrollment and payment ACTION: Notice. monthly adjustment, they may have to of monthly premiums, as described in pay a total monthly premium of about 42 CFR part 407, subpart B, and part SUMMARY: This notice announces the 35, 50, 65, or 80 percent of the total cost 408, respectively. The difference monthly actuarial rates for aged (age 65 of Part B coverage. between the premiums paid by all

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enrollees and total incurred costs is met premium basis to 50 percent of the only these transitional amounts in the by transfers from the general fund of the monthly actuarial rate for aged enrollees monthly actuarial rates for both aged Treasury. (that is, 25 percent of program costs for and disabled enrollees, rather than the The Secretary of the Department of aged enrollees). Section 606 of the total cost of the home health services Health and Human Services (the Social Security Amendments of 1983 being transferred. Secretary) is required by section 1839 of (Pub. L. 98–21), section 2302 of the Section 4611(e)(3) of the BBA also the Social Security Act (the Act) to Deficit Reduction Act of 1984 (DEFRA specified, for the purpose of announce the Part B monthly actuarial 84) (Pub. L. 98–369), section 9313 of the determining the premium, that the rates for aged and disabled beneficiaries Consolidated Omnibus Budget monthly actuarial rate for enrollees age as well as the monthly Part B premium. Reconciliation Act of 1985 (COBRA 85) 65 and over be computed as though the The Part B annual deductible is (Pub. L. 99–272), section 4080 of the transition would occur for 1998 through included because its determination is Omnibus Budget Reconciliation Act of 2003 and that 1⁄7 of the cost be directly linked to the aged actuarial rate. 1987 (OBRA 87) (Pub. L. 100–203), and transferred in 1998, 2⁄7 in 1999, 3⁄7 in The monthly actuarial rates for aged section 6301 of the Omnibus Budget 2000, 4⁄7 in 2001, 5⁄7 in 2002, and 6⁄7 in and disabled enrollees are used to Reconciliation Act of 1989 (OBRA 89) 2003. Therefore, the transition period determine the correct amount of general (Pub. L. 101–239) extended the for incorporating this home health revenue financing per beneficiary each provision that the premium be based on transfer into the premium was 7 years month. These amounts, according to 50 percent of the monthly actuarial rate while the transition period for including actuarial estimates, will equal, for aged enrollees (that is, 25 percent of these services in the actuarial rate was respectively, one-half of the expected program costs for aged enrollees). This 6 years. average monthly cost of Part B for each extension expired at the end of 1990. Section 811 of the Medicare aged enrollee (age 65 or over) and one- The premium rate for 1991 through Prescription Drug, Improvement, and half of the expected average monthly 1995 was legislated by section Modernization Act of 2003 (Pub. L. 108– cost of Part B for each disabled enrollee 1839(e)(1)(B) of the Act, as added by 173, also known as the Medicare (under age 65). section 4301 of the Omnibus Budget Modernization Act, or MMA), which The Part B deductible to be paid by Reconciliation Act of 1990 (OBRA 90) amended section 1839 of the Act, enrollees is also announced. Prior to the (Pub. L. 101–508). In January 1996, the requires that, starting on January 1, Medicare Prescription Drug, premium determination basis would 2007, the Part B premium a beneficiary Improvement, and Modernization Act of have reverted to the method established pays each month be based on their 2003 (MMA) (Pub. L. 108–173), the Part by the 1972 Social Security Act annual income. Specifically, if a B deductible was set in statute. After Amendments. However, section 13571 beneficiary’s ‘‘modified adjusted gross setting the 2005 deductible amount at of the Omnibus Budget Reconciliation income’’ is greater than the legislated $110, section 629 of the MMA Act of 1993 (OBRA 93) (Pub. L. 103–66) threshold amounts (for 2014, $85,000 (amending section 1833(b) of the Act) changed the premium basis to 50 for a beneficiary filing an individual requires that the Part B deductible be percent of the monthly actuarial rate for income tax return, and $170,000 for a indexed beginning in 2006. The aged enrollees (that is, 25 percent of beneficiary filing a joint tax return) the inflation factor to be used each year is program costs for aged enrollees) for beneficiary is responsible for a larger the annual percentage increase in the 1996 through 1998. portion of the estimated total cost of Part B actuarial rate for enrollees age 65 Section 4571 of the Balanced Budget Part B benefit coverage. In addition to and over. Specifically, the 2014 Part B Act of 1997 (BBA) (Pub. L. 105–33) the standard 25 percent premium, these deductible is calculated by multiplying permanently extended the provision beneficiaries now have to pay an the 2013 deductible by the ratio of the that the premium be based on 50 income-related monthly adjustment 2014 aged actuarial rate to the 2013 aged percent of the monthly actuarial rate for amount. The MMA made no change to actuarial rate. The amount determined aged enrollees (that is, 25 percent of the actuarial rate calculation, and the under this formula is then rounded to program costs for aged enrollees). standard premium, which will continue the nearest $1. The BBA included a further provision to be paid by beneficiaries whose The monthly Part B premium rate to affecting the calculation of the Part B modified adjusted gross income is be paid by aged and disabled enrollees actuarial rates and premiums for 1998 below the applicable thresholds, still is also announced. (Although the costs through 2003. Section 4611 of the BBA represents 25 percent of the estimated to the program per disabled enrollee are modified the home health benefit total cost to the program of Part B different than for the aged, the statute payable under Part A for individuals coverage for an aged enrollee. However, provides that they pay the same enrolled in Part B. Under this section, depending on income and tax filing premium amount.) Beginning with the beginning in 1998, expenditures for status, a beneficiary can now be passage of section 203 of the Social home health services not considered responsible for 35, 50, 65, or 80 percent Security Amendments of 1972 (Pub. L. ‘‘post-institutional’’ are payable under of the estimated total cost of Part B 92–603), the premium rate, which was Part B rather than Part A. However, coverage, rather than 25 percent. The determined on a fiscal year basis, was section 4611(e)(1) of the BBA required end result of the higher premium is that limited to the lesser of the actuarial rate that there be a transition from 1998 the Part B premium subsidy is reduced for aged enrollees, or the current through 2002 for the aggregate amount and less general revenue financing is monthly premium rate increased by the of the expenditures transferred from required for beneficiaries with higher same percentage as the most recent Part A to Part B. Section 4611(e)(2) of income because they are paying a larger general increase in monthly Title II the BBA also provided a specific yearly share of the total cost with their social security benefits. proportion for the transferred funds. premium. That is, the premium subsidy However, the passage of section 124 The proportions were 1⁄6 for 1998, 1⁄3 for continues to be approximately 75 of the Tax Equity and Fiscal 1999, 1⁄2 for 2000, 2⁄3 for 2001, and 5⁄6 percent for beneficiaries with income Responsibility Act of 1982 (TEFRA) for 2002. For the purpose of determining below the applicable income thresholds, (Pub. L. 97–248) suspended this the correct amount of financing from but will be reduced for beneficiaries premium determination process. general revenues of the Federal with income above these thresholds. Section 124 of TEFRA changed the Government, it was necessary to include The MMA specified that there be a 5-

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year transition to full implementation of monthly payment. This decrease in individual is entitled under section 202 this provision. However, section 5111 of payment occurs if the increase in the or 223 of the Act do not include the Deficit Reduction Act of 2005 (Pub. individual’s social security benefit due retroactive adjustments or payments and L. 109–171) (DRA) modified the to the cost-of-living adjustment under deductions on account of work. Also, transition to a 3-year period. section 215(i) of the Act is less than the once the monthly premium amount is Section 4732(c) of the BBA added increase in the premium. Specifically, established under section 1839(f) of the section 1933(c) of the Act, which the reduction in the premium amount Act, it will not be changed during the required the Secretary to allocate money applies if the individual is entitled to year even if there are retroactive from the Part B trust fund to the State benefits under section 202 or 223 of the adjustments or payments and Medicaid programs for the purpose of Act for November and December of a deductions on account of work that providing Medicare Part B premium particular year and the individual’s Part apply to the individual’s monthly assistance from 1998 through 2002 for B premiums for December and the benefits. the low-income Medicaid beneficiaries following January are deducted from the Individuals who have enrolled in Part who qualify under section 1933 of the respective month’s section 202 or 223 B late or who have re-enrolled after the Act. This allocation, while not a benefit benefits. The ‘‘hold-harmless’’ provision termination of a coverage period are expenditure, was an expenditure of the does not apply to beneficiaries who are subject to an increased premium under trust fund and was included in required to pay an income-related section 1839(b) of the Act. The increase calculating the Part B actuarial rates monthly adjustment amount. is a percentage of the premium and is through 2002. For 2003 through 2013, A check for benefits under section 202 based on the new premium rate before the expenditure was made from the trust or 223 of the Act is received in the any reductions under section 1839(f) of fund because the allocation was month following the month for which the Act are made. temporarily extended. However, the benefits are due. The Part B because the extension occurred after the premium that is deducted from a II. Provisions of the Notice financing was determined, the particular check is the Part B payment A. Notice of Medicare Part B Monthly allocation was not included in the for the month in which the check is Actuarial Rates, Monthly Premium calculation of the financing rates. received. Therefore, a benefit check for Rates, and Annual Deductible A further provision affecting the November is not received until calculation of the Part B premium is December, but has December’s Part B The Medicare Part B monthly section 1839(f) of the Act, as amended premium deducted from it. actuarial rates applicable for 2014 are by section 211 of the Medicare Generally, if a beneficiary qualifies for $209.80 for enrollees age 65 and over Catastrophic Coverage Act of 1988 hold-harmless protection, the reduced and $218.90 for disabled enrollees (MCCA 88) (Pub. L. 100–360). (The premium for the individual for that under age 65. In section II.B. of this Medicare Catastrophic Coverage Repeal January and for each of the succeeding notice, we present the actuarial Act of 1989 (Pub. L. 101–234) did not 11 months is the greater of either— assumptions and bases from which repeal the revisions to section 1839(f) • The monthly premium for January these rates are derived. The Part B made by MCCA 88.) Section 1839(f) of reduced as necessary to make the standard monthly premium rate for all the Act, referred to as the ‘‘hold- December monthly benefits, after the enrollees for 2014 is $104.90. The Part harmless’’ provision, provides that if an deduction of the Part B premium for B annual deductible for 2014 is $147.00. individual is entitled to benefits under January, at least equal to the preceding The following are the 2014 Part B section 202 or 223 of the Act (the Old- November’s monthly benefits, after the monthly premium rates to be paid by Age and Survivors Insurance Benefit deduction of the Part B premium for beneficiaries who file an individual tax and the Disability Insurance Benefit, December; or return (including those who are single, respectively) and has the Part B • The monthly premium for that head of household, qualifying premiums deducted from these benefit individual for that December. widow(er) with dependent child, or payments, the premium increase will be In determining the premium married filing separately who lived reduced, if necessary, to avoid causing limitations under section 1839(f) of the apart from their spouse for the entire a decrease in the individual’s net Act, the monthly benefits to which an taxable year), or a joint tax return.

Income-related Total Beneficiaries who file an individual tax return with monthly monthly income: Beneficiaries who file a joint tax return with income: adjustment premium amount amount

Less than or equal to $85,000 ...... Less than or equal to $170,000 ...... $0.00 $104.90 Greater than $85,000 and less than or equal to Greater than $170,000 and less than or equal to 42.00 146.90 $107,000. $214,000. Greater than $107,000 and less than or equal to Greater than $214,000 and less than or equal to 104.90 209.80 $160,000. $320,000. Greater than $160,000 and less than or equal to Greater than $320,000 and less than or equal to 167.80 272.70 $214,000. $428,000. Greater than $214,000 ...... Greater than $428,000 ...... 230.80 335.70

In addition, the monthly premium married and lived with their spouse at a separate tax return from their spouse, rates to be paid by beneficiaries who are any time during the taxable year, but file are as follows:

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Income- related Total Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate monthly monthly tax return from their spouse: adjustment premium amount amount

Less than or equal to $85,000 ...... $0.00 $104.90 Greater than $85,000 and less than or equal to $129,000 ...... 167.80 272.70 Greater than $129,000 ...... 230.80 335.70

The Part B annual deductible for 2014 premium is the amount that would be amount of incurred, but unpaid, is $147.00 for all beneficiaries. necessary to finance Part B on an expenses. Numerous factors determine B. Statement of Actuarial Assumptions incurred basis. This is the amount of what level of assets is appropriate to and Bases Employed in Determining the income that would be sufficient to pay cover variation between actual and Monthly Actuarial Rates and the for services furnished during that year projected costs. The three most Monthly Premium Rate for Part B (including associated administrative important of these factors are: (1) The Beginning January 2014 costs) even though payment for some of difference from prior years between the these services will not be made until actual performance of the program and Except where noted, the actuarial after the close of the year. The portion assumptions and bases used to estimates made at the time financing of income required to cover benefits not was established; (2) the likelihood and determine the monthly actuarial rates paid until after the close of the year is and the monthly premium rates for Part potential magnitude of expenditure added to the trust fund and used when changes resulting from enactment of B are established by the Office of the needed. Actuary in the Centers for Medicare & legislation affecting Part B costs in a Medicaid Services. The estimates The premium rates are established year subsequent to the establishment of underlying these determinations are prospectively and are, therefore, subject financing for that year; and (3) the prepared by actuaries meeting the to projection error. Additionally, expected relationship between incurred qualification standards and following legislation enacted after the financing and cash expenditures. These factors are the actuarial standards of practice was established, but effective for the analyzed on an ongoing basis, as the established by the Actuarial Standards period in which the financing is set, trends can vary over time. Board. may affect program costs. As a result, the income to the program may not Table 1 summarizes the estimated 1. Actuarial Status of the Part B Account equal incurred costs. Therefore, trust actuarial status of the trust fund as of in the Supplementary Medical fund assets must be maintained at a the end of the financing period for 2012 Insurance Trust Fund level that is adequate to cover an and 2013. Under the statute, the starting point appropriate degree of variation between for determining the standard monthly actual and projected costs, and the

TABLE 1—ESTIMATED ACTUARIAL STATUS OF THE PART B ACCOUNT IN THE SUPPLEMENTARY MEDICAL INSURANCE TRUST FUND AS OF THE END OF THE FINANCING PERIOD

Assets less Financing period ending Assets Liabilities liabilities (millions) (millions) (millions)

December 31, 2012 ...... $66,226 $18,485 $47,742 December 31, 2013 ...... 75,828 19,209 56,619

2. Monthly Actuarial Rate for Enrollees program data through 2012 and then adjustment of $13.53 for a contingency Age 65 and Older projecting these costs for subsequent margin and ¥$2.15 for interest The monthly actuarial rate for years. The projection factors used for earnings. enrollees age 65 and older is one-half of financing periods from January 1, 2011 The size of the contingency margin for the sum of monthly amounts for: (1) The through December 31, 2014 are shown 2014 is affected by several factors. The projected cost of benefits, and (2) in Table 2. largest factor involves the current law administrative expenses for each As indicated in Table 3, the projected formula for physician fees, which is enrollee age 65 and older, after monthly rate required to pay for one- scheduled to result in a reduction in adjustments to this sum to allow for half of the total of benefits and physician fees of 23.7 percent in 2014. interest earnings on assets in the trust administrative costs for enrollees age 65 For each year from 2003 through 2013, fund and an adequate contingency and over for 2014 is $198.42. Based on Congress has acted to prevent physician margin. The contingency margin is an current estimates, the assets are not fee reductions from occurring. In amount appropriate to provide for sufficient to cover the amount of recognition of the strong possibility of possible variation between actual and incurred, but unpaid, expenses and to substantial increase in Part B projected costs and to amortize any provide for a significant degree of expenditures that would result from surplus assets or unfunded liabilities. variation between actual and projected similar legislation to override the The monthly actuarial rate for costs. Thus, a positive contingency decreases in physician fees in 2014, it enrollees age 65 and older for 2014 is margin is needed to increase assets to a is appropriate to maintain a determined by first establishing per- more appropriate level. The monthly significantly larger Part B contingency enrollee cost by type of service from actuarial rate of $209.80 provides an reserve than would otherwise be

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necessary. The asset level projected for 3. Monthly Actuarial Rate for Disabled current estimate. The other set the end of 2013 is not adequate to Enrollees represents increases that are higher and, accommodate this contingency. Disabled enrollees are those persons therefore, more pessimistic than the Two other, smaller factors affect the under age 65 who are enrolled in Part current estimate. The values for the contingency margin for 2014. Starting in B because of entitlement to Social alternative assumptions were 2011, manufacturers and importers of Security disability benefits for more determined from a statistical analysis of brand-name prescription drugs have than 24 months or because of the historical variation in the respective paid a fee that is allocated to the Part entitlement to Medicare under the end- increase factors. B account of the SMI trust. For 2014, the stage renal disease (ESRD) program. As indicated in Table 5, the monthly total of these brand-name drug fees is Projected monthly costs for disabled actuarial rates would result in an excess estimated to be $3 billion. The enrollees (other than those with ESRD) contingency margin has been reduced to of assets over liabilities of $71,024 are prepared in a fashion parallel to the million by the end of December 2014 account for this additional revenue. projection for the aged using Another small factor impacting the under the cost growth rate assumptions appropriate actuarial assumptions (see contingency margin comes from the used in preparing this report and Table 2). Costs for the ESRD program are requirement that certain payment assuming that the provisions of current projected differently because of the incentives, to encourage the law are fully implemented. This different nature of services offered by amounts to 27.5 percent of the estimated development and use of health the program. information technology (HIT) by total incurred expenditures for the As shown in Table 4, the projected following year. Medicare physicians, are to be excluded monthly rate required to pay for one- from the premium determination. HIT half of the total of benefits and Assumptions that are somewhat more bonuses or penalties will be directly administrative costs for disabled pessimistic (and that therefore test the offset through transfers with the general enrollees for 2014 is $234.57. The adequacy of the assets to accommodate fund of the Treasury. The monthly monthly actuarial rate of $218.90 also projection errors) produce a surplus of actuarial rate includes an adjustment of provides an adjustment of ¥$3.72 for $36,697 million by the end of December ¥ $3.11 for HIT bonus payments in interest earnings and ¥$11.95 for a 2014 under current law, which amounts 2014. contingency margin, reflecting the same to 12.8 percent of the estimated total The traditional goal for the Part B factors described previously for the aged incurred expenditures for the following reserve has been that assets minus actuarial rate. Based on current year. Under fairly optimistic liabilities at the end of a year should estimates, the assets associated with the assumptions, the monthly actuarial rates represent between 15 and 20 percent of disabled Medicare beneficiaries more would result in a surplus of $96,302 the following year’s total incurred than sufficient to cover the amount of million by the end of December 2014, or expenditures. To accomplish this goal, a incurred, but unpaid, expenses and to 41.5 percent of the estimated total 17 percent reserve ratio has been the provide for a significant degree of incurred expenditures for the following normal target used to calculate the Part variation between actual and projected year. B premium. In view of the strong costs. Thus, a negative contingency likelihood of actual expenditures The previous analysis indicates that margin is needed to decrease assets to the premium and general revenue exceeding estimated levels, due to the an appropriate level. likelihood of the enactment of financing established for 2014, together The actuarial rate of $218.90 per with existing Part B account assets legislation after the financing has been month for disabled beneficiaries, as would be adequate to cover estimated set for 2014 as a result of the scheduled announced in this notice for 2014, Part B costs for 2014 under current law, 2014 physician update, a contingency reflects the combined net effect of the even if actual costs prove to be reserve ratio in excess of 20 percent of factors described previously for aged somewhat greater than expected. the following year’s expenditures would beneficiaries and the projection better ensure that the assets of the Part assumptions listed in Table 2. 5. Premium Rates and Deductible B account can adequately cover the cost of incurred-but-not-reported benefits 4. Sensitivity Testing As determined in accordance with together with variations between actual Several factors contribute to section 1839 of the Act, listed are the and estimated cost levels. uncertainty about future trends in 2013 Part B monthly premium rates to The actuarial rate of $209.80 per medical care costs. It is appropriate to be paid by beneficiaries who file an month for aged beneficiaries, as test the adequacy of the rates using individual tax return (including those announced in this notice for 2014, alternative cost growth rate who are single, head of household, reflects the combined net effect of the assumptions. The results of those qualifying widow(er) with dependent factors previously described and the assumptions are shown in Table 5. One child, or married filing separately who projection assumptions listed in Table set represents increases that are lower lived apart from their spouse for the 2. and, therefore, more optimistic than the entire taxable year), or a joint tax return.

Income-related Beneficiaries who file an individual tax return with monthly Total income: Beneficiaries who file a joint tax return with income: adjustment monthly premium amount amount

Less than or equal to $85,000 ...... Less than or equal to $170,000 ...... $0.00 $104.90 Greater than $85,000 and less than or equal to Greater than $170,000 and less than or equal to 42.00 146.90 $107,000. $214,000. Greater than $107,000 and less than or equal to Greater than $214,000 and less than or equal to 104.90 209.80 $160,000. $320,000. Greater than $160,000 and less than or equal to Greater than $320,000 and less than or equal to 167.80 272.70 $214,000. $428,000.

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Income-related Beneficiaries who file an individual tax return with monthly Total income: Beneficiaries who file a joint tax return with income: adjustment monthly premium amount amount

Greater than $214,000 ...... Greater than $428,000 ...... 230.80 335.70

In addition, the monthly premium married and lived with their spouse at a separate tax return from their spouse, rates to be paid by beneficiaries who are any time during the taxable year, but file are listed as follows:

Income-related Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate monthly Total tax return from their spouse: adjustment monthly premium amount amount

Less than or equal to $85,000 ...... $0.00 $104.90 Greater than $85,000 and less than or equal to $129,000 ...... 167.80 272.70 Greater than $129,000 ...... 230.80 335.70

TABLE 2—PROJECTION FACTORS 1 12–MONTH PERIODS ENDING DECEMBER 31 OF 2011–2014 [In percent]

Physicians’ Home Other inter- services Durable Other Outpatient Hospital Managed Calendar year medical Carrier lab 4 carrier health mediary hospital lab 6 care equipment services 5 agency services 7 Fees 2 Residual 3

Aged: 2011 ...... 0.9 2.2 ¥3.7 ¥2.8 4.6 8.0 ¥4.9 5.0 3.1 1.0 2012 ...... ¥1.1 1.1 0.4 6.4 3.3 6.8 ¥2.1 3.9 4.6 2.3 2013 ...... ¥0.1 ¥0.3 ¥5.2 ¥0.5 3.2 1.8 1.7 ¥2.7 ¥3.8 1.8 2014 ...... ¥24.1 9.0 ¥4.2 3.9 4.0 6.0 0.7 3.6 ¥10.4 3.2 Disabled: 2011 ...... 0.9 1.4 ¥2.7 3.1 2.7 7.9 ¥3.0 6.4 1.4 2.0 2012 ...... ¥1.1 3.4 2.0 25.8 3.9 9.2 ¥1.5 5.8 4.8 1.2 2013 ...... ¥0.1 0.9 ¥4.5 5.3 3.1 2.7 3.7 ¥2.5 ¥3.8 3.6 2014 ...... ¥24.1 9.1 ¥4.1 4.1 4.3 6.1 1.6 3.6 ¥1.6 3.4 1 All values for services other than managed care are per fee-for-service enrollee. Managed care values are per managed care enrollee. 2 As recognized for payment under the program. 3 Increase in the number of services received per enrollee and greater relative use of more expensive services. 4 Includes services paid under the lab fee schedule furnished in the physician’s office or an independent lab. 5 Includes physician-administered drugs, ambulatory surgical center facility costs, ambulance services, parenteral and enteral drug costs, supplies, etc. 6 Includes services paid under the lab fee schedule furnished in the outpatient department of a hospital. 7 Includes services furnished in dialysis facilities, rural health clinics, Federally qualified health centers, rehabilitation and psychiatric hospitals, etc.

TABLE 3—DERIVATION OF MONTHLY ACTUARIAL RATE FOR ENROLLEES AGE 65 AND OVER FOR FINANCING PERIODS ENDING DECEMBER 31, 2011 THROUGH DECEMBER 31, 2014 [In dollars]

Financing periods CY 2011 CY 2012 CY 2013 CY 2014

Covered services (at level recognized): Physician fee schedule...... 82.06 80.19 78.05 64.13 Durable medical equipment ...... 8.47 8.31 7.70 7.32 Carrier lab 1 ...... 4.14 4.30 4.18 4.31 Other carrier services 2 ...... 24.90 22.12 22.31 23.01 Outpatient hospital ...... 35.19 36.74 36.57 38.47 Home health...... 11.33 10.84 10.77 10.78 Hospital lab 3 ...... 3.81 3.87 3.68 3.78 Other intermediary services 4 ...... 14.49 14.81 13.92 12.37 Managed care...... 57.17 61.71 66.03 69.31

Total services ...... 238.55 242.89 243.22 233.47 Cost sharing: Deductible ...... ¥6.19 ¥4.84 ¥5.63 ¥5.62 Coinsurance ...... ¥31.04 ¥31.55 ¥28.77 ¥25.06 Sequestration of benefits ...... 0.00 0.00 ¥3.15 ¥4.05 HIT payment incentives ...... ¥0.44 ¥1.52 ¥1.88 ¥3.11

Total benefits ...... 200.88 204.98 203.79 195.62 Administrative expenses ...... 3.28 3.45 3.20 2.80

Incurred expenditures ...... 204.16 208.43 206.99 198.42 Value of interest ...... ¥2.53 ¥2.21 ¥1.97 ¥2.15

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TABLE 3—DERIVATION OF MONTHLY ACTUARIAL RATE FOR ENROLLEES AGE 65 AND OVER FOR FINANCING PERIODS ENDING DECEMBER 31, 2011 THROUGH DECEMBER 31, 2014—Continued [In dollars]

Financing periods CY 2011 CY 2012 CY 2013 CY 2014

Contingency margin for projection error and to amortize the surplus or def- icit ...... 29.06 ¥6.42 4.78 13.53

Monthly actuarial rate ...... 230.70 199.80 209.80 209.80 1 Includes services paid under the lab fee schedule furnished in the physician’s office or an independent lab. 2 Includes physician-administered drugs, ambulatory surgical center facility costs, ambulance services, parenteral and enteral drug costs, sup- plies, etc. 3 Includes services paid under the lab fee schedule furnished in the outpatient department of a hospital. 4 Includes services furnished in dialysis facilities, rural health clinics, Federally qualified health centers, rehabilitation and psychiatric hospitals, etc.

TABLE 4—DERIVATION OF MONTHLY ACTUARIAL RATE FOR DISABLED ENROLLEES FOR FINANCING PERIODS ENDING DECEMBER 31, 2011 THROUGH DECEMBER 31, 2014 [In dollars]

Financing periods CY 2011 CY 2012 CY 2013 CY 2014

Covered services (at level recognized): Physician fee schedule...... 86.54 86.02 84.59 69.61 Durable medical equipment ...... 16.09 15.91 14.77 14.05 Carrier lab 1 ...... 5.07 6.15 6.30 6.50 Other carrier services 2 ...... 26.09 26.13 26.22 27.06 Outpatient hospital ...... 49.20 52.28 52.24 55.00 Home health ...... 10.01 9.58 9.67 9.74 Hospital lab 3 ...... 5.36 5.50 5.22 5.37 Other intermediary services 4 ...... 40.98 42.35 42.00 38.74 Managed care...... 43.49 49.14 54.95 57.86

Total services ...... 282.82 293.05 295.96 283.93 Cost sharing: Deductible ...... ¥5.81 ¥4.65 ¥5.29 ¥5.28 Coinsurance ...... ¥45.97 ¥46.82 ¥43.64 ¥39.17 Sequestration of benefits ...... 0.00 0.00 ¥3.72 ¥4.79 HIT payment incentives ...... ¥0.41 ¥1.57 ¥1.99 ¥3.32

Total benefits ...... 230.63 240.01 241.31 231.37 Administrative expenses ...... 3.76 4.03 3.76 3.20

Incurred expenditures ...... 234.39 244.05 245.07 234.57 Value of interest ...... ¥5.02 ¥3.86 ¥2.94 ¥3.72 Contingency margin for projection error and to amortize the surplus or def- icit ...... 36.93 ¥47.69 ¥6.63 ¥11.95

Monthly actuarial rate ...... 266.30 192.50 235.50 218.90 1 Includes services paid under the lab fee schedule furnished in the physician’s office or an independent lab. 2 Includes physician-administered drugs, ambulatory surgical center facility costs, ambulance services, parenteral and enteral drug costs, sup- plies, etc. 3 Includes services paid under the lab fee schedule furnished in the outpatient department of a hospital. 4 Includes services furnished in dialysis facilities, rural health clinics, Federally qualified health centers, rehabilitation and psychiatric hospitals, etc.

TABLE 5—ACTUARIAL STATUS OF THE PART B ACCOUNT IN THE SMI TRUST FUND UNDER THREE SETS OF ASSUMPTIONS FOR FINANCING PERIODS THROUGH DECEMBER 31, 2014

As of December 31, 2012 2013 2014

This projection: Actuarial status (in $ millions):. Assets ...... 66,226 75,828 89,871 Liabilities ...... 18,485 19,209 18,847

Assets less liabilities ...... 47,742 56,619 71,024 Ratio (in percent) 1 ...... 19 .4 23.3 27 .5 Low cost projection: Actuarial status (in $ millions):.

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TABLE 5—ACTUARIAL STATUS OF THE PART B ACCOUNT IN THE SMI TRUST FUND UNDER THREE SETS OF ASSUMPTIONS FOR FINANCING PERIODS THROUGH DECEMBER 31, 2014—Continued

As of December 31, 2012 2013 2014

Assets ...... 66,226 84,654 114,651 Liabilities ...... 18,485 18,228 18,349

Assets less liabilities ...... 47,742 66,426 96,302 Ratio (in percent) 1 ...... 20 .3 29.2 41 .5 High cost projection: Actuarial status (in $ millions):. Assets ...... 66,226 62,815 56,535 Liabilities ...... 18,485 20,654 19,838

Assets less liabilities ...... 47,742 42,161 36,697

Ratio (in percent) 1 ...... 18 .4 15.8 12 .8 1 Ratio of assets less liabilities at the end of the year to the total incurred expenditures during the following year, expressed as a percent. These estimates are based on the assumption that all provisions of current law will be implemented in full, including the approximately 24.0-per- cent reduction in Medicare payment rates to physicians required by the statutory ‘‘sustainable growth rate’’ formula.

III. Regulatory Impact Analysis Security Act, section 202 of the respective amounts for 2013. As a result, Unfunded Mandates Reform Act of 1995 this notice is not economically A. Statement of Need (March 22, 1995, Pub. L. 104–4), significant under section 3(f)(1) of Section 1839 of the Act requires us to Executive Order 13132 on Federalism Executive Order 12866 and thus, is not annually announce (that is by (August 4, 1999) and the Congressional a major action under the Congressional September 30th of each year) the Part B Review Act (5 U.S.C. 804(2)). Review Act. In accordance with the monthly actuarial rates for aged and Executive Orders 12866 and 13563 provisions of Executive Order 12866, disabled beneficiaries as well as the direct agencies to assess all costs and this notice was reviewed by the Office monthly Part B premium. We also benefits of available regulatory of Management and Budget. announce the Part B annual deductible alternatives and, if regulation is As discussed earlier, this notice because its determination is directly necessary, to select regulatory announces that the monthly actuarial linked to the aged actuarial rate. approaches that maximize net benefits rates applicable for 2014 are $209.80 for (including potential economic, enrollees age 65 and over and $218.90 B. Overall Impact environmental, public health and safety for disabled enrollees under age 65. It We have examined the impacts of this effects, distributive impacts, and also announces the 2014 monthly Part B rule as required by Executive Order equity). A regulatory impact analysis premium rates to be paid by 12866 on Regulatory Planning and (RIA) must be prepared for major beneficiaries who file an individual tax Review (September 30, 1993), Executive notices with economically significant return (including those who are single, Order 13563 on Improving Regulation effects ($100 million or more in any 1 head of household, qualifying and Regulatory Review (January 18, year). For 2014, the standard Part B widow(er) with a dependent child, or 2011), the Regulatory Flexibility Act premium rate, the Part B income-related married filing separately who lived (RFA) (September 19, 1980, Pub. L. 96– premium rates, and the Part B apart from their spouse for the entire 354), section 1102(b) of the Social deductible are the same as the taxable year), or a joint tax return.

Income- related Total Beneficiaries who file an individual tax return with Beneficiaries who file a joint tax return with income: monthly monthly income: adjustment premium amount amount

Less than or equal to $85,000 ...... Less than or equal to $170,000 ...... $0.00 $104.90 Greater than $85,000 and less than or equal to Greater than $170,000 and less than or equal to 42.00 146.90 $107,000. $214,000. Greater than $107,000 and less than or equal to Greater than $214,000 and less than or equal to 104.90 209.80 $160,000. $320,000. Greater than $160,000 and less than or equal to Greater than $320,000 and less than or equal to 167.80 272.70 $214,000. $428,000. Greater than $214,000 ...... Greater than $428,000 ...... 230.80 335.70

In addition, the monthly premium any time during the taxable year, but file are also announced and listed in the rates to be paid by beneficiaries who are a separate tax return from their spouse, following chart: married and lived with their spouse at

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Income- related Total Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate monthly monthly tax return from their spouse: adjustment premium amount amount

Less than or equal to $85,000 ...... $0.00 $104.90 Greater than $85,000 and less than or equal to $129,000 ...... 167.80 272.70 Greater than $129,000 ...... 230.80 335.70

The RFA requires agencies to analyze threshold is approximately $141 Moreover, we find that notice and options for regulatory relief of small million. This notice does not impose comment are unnecessary because the businesses, if a rule has a significant mandates that will have a consequential formulas used to calculate the Part B impact on a substantial number of small effect of $142 million or more on State, premiums are statutorily directed. entities. For purposes of the RFA, small local, or tribal governments or on the Therefore, we find good cause to waive entities include small businesses, private sector. publication of a proposed notice and nonprofit organizations, and small Executive Order 13132 establishes solicitation of public comments. governmental jurisdictions. Most certain requirements that an agency (Catalog of Federal Domestic Assistance hospitals and most other providers and must meet when it publishes a proposed Program No. 93.774, Medicare— suppliers are small entities, either by rule (and subsequent final rule) that Supplementary Medical Insurance Program) imposes substantial direct compliance nonprofit status or by having revenues Dated: September 20, 2013. of less than $7.0 million to $34.5 costs on State and local governments, Marilyn Tavenner, million in any 1 year. Individuals and preempts State law, or otherwise has States are not included in the definition Federalism implications. We have Administrator, Centers for Medicare & Medicaid Services. of a small entity. This notice announces determined that this notice does not the monthly actuarial rates for aged (age significantly affect the rights, roles, and Approved: October 18, 2013 65 and over) and disabled (under 65) responsibilities of States. Kathleen Sebelius, beneficiaries enrolled in Part B of the For 2014, the standard Part B Secretary, Department of Health and Human Medicare SMI program beginning premium rate, the Part B income-related Services. January 1, 2014. Also, this notice premium rates, and the Part B [FR Doc. 2013–25668 Filed 10–28–13; 11:15 am] deductible are the same as the announces the monthly premium for BILLING CODE 4120–01–P aged and disabled beneficiaries as well respective amounts for 2013. Therefore, as the income-related monthly this notice is not a major rule as defined adjustment amounts to be paid by in 5 U.S.C. 804(2) and is not an DEPARTMENT OF HEALTH AND beneficiaries with modified adjusted economically significant rule under HUMAN SERVICES gross income above certain threshold Executive Order 12866. In accordance with the provisions of amounts. As a result, we are not Centers for Medicare & Medicaid Executive Order 12866, this notice was preparing an analysis for the RFA Services reviewed by the Office of Management because the Secretary has determined and Budget. [CMS–8054–N] that this notice will not have a significant economic impact on a IV. Waiver of Proposed Notice RIN 0938–AR57 substantial number of small entities. The Medicare statute requires the Medicare Program; Part A Premiums In addition, section 1102(b) of the Act publication of the monthly actuarial for CY 2014 for the Uninsured Aged requires us to prepare a regulatory rates and the Part B premium amounts and for Certain Disabled Individuals impact analysis if a rule may have a in September. We ordinarily use general Who Have Exhausted Other significant impact on the operations of notices, rather than notice and comment Entitlement a substantial number of small rural rulemaking procedures, to make such hospitals. This analysis must conform to announcements. In doing so, we note AGENCY: Centers for Medicare & the provisions of section 604 of the that, under the Administrative Medicaid Services (CMS), HHS. RFA. For purposes of section 1102(b) of Procedure Act, interpretive rules, ACTION: Notice. the Act, we define a small rural hospital general statements of policy, and rules as a hospital that is located outside of of agency organization, procedure, or SUMMARY: This annual notice announces a Metropolitan Statistical Area and has practice are excepted from the Medicare’s Hospital Insurance (Part A) fewer than 100 beds. As we discussed requirements of notice and comment premium for uninsured enrollees in previously, we are not preparing an rulemaking. calendar year (CY) 2014. This premium analysis for section 1102(b) of the Act We considered publishing a proposed is paid by enrollees age 65 and over who because the Secretary has determined notice to provide a period for public are not otherwise eligible for benefits that this notice will not have a comment. However, we may waive that under Medicare Part A (hereafter known significant effect on a substantial procedure if we find, for good cause, as the ‘‘uninsured aged’’) and by certain number of small rural hospitals that prior notice and comment are disabled individuals who have Section 202 of the Unfunded impracticable, unnecessary, or contrary exhausted other entitlement. The Mandates Reform Act of 1995 (UMRA) to the public interest. The statute monthly Part A premium for the 12 also requires that agencies assess establishes the time period for which months beginning January 1, 2014, for anticipated costs and benefits before the premium rates will apply, and these individuals will be $426. The issuing any rule whose mandates delaying publication of the Part B premium for certain other individuals as require spending in any 1 year of $100 premium rate such that it would not be described in this notice will be $234. million in 1995 dollars, updated published before that time would be DATES: Effective Date: This notice is annually for inflation. In 2013, that contrary to the public interest. effective on January 1, 2014.

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FOR FURTHER INFORMATION CONTACT: Section 13508 of the Omnibus Budget We base our projections for CY 2014 Clare McFarland, (410) 786–6390. Reconciliation Act of 1993 (Pub. L. 103– on: (1) Current historical data, and (2) SUPPLEMENTARY INFORMATION: 66) amended section 1818(d) of the Act projection assumptions derived from to provide for a reduction in the current law and the Mid-Session Review I. Background premium amount for certain voluntary of the President’s Fiscal Year 2014 Section 1818 of the Social Security enrollees (section 1818 and section Budget. Act (the Act) provides for voluntary 1818A of the Act). The reduction We estimate that in CY 2014, enrollment in the Medicare Hospital applies to an individual who is eligible 43,923,567 people aged 65 years and Insurance Program (Medicare Part A), to buy into the Medicare Part A program over will be entitled to benefits (without subject to payment of a monthly and who, as of the last day of the premium payment) and that they will premium, of certain persons aged 65 previous month: incur about $224.753 billion in benefits and older who are uninsured under the • Had at least 30 quarters of coverage and related administrative costs. Thus, Old-Age, Survivors, and Disability under Title II of the Act; the estimated monthly average per • Insurance (OASDI) program or the Was married, and had been married capita amount is $426.41 and the Railroad Retirement Act and do not for the previous 1-year period, to a monthly premium is $426. otherwise meet the requirements for person who had at least 30 quarters of Subsequently, the full monthly entitlement to Medicare Part A. These coverage; premium reduced by 45 percent is $234. • ‘‘uninsured aged’’ individuals are Had been married to a person for at IV. Costs to Beneficiaries least 1 year at the time of the person’s uninsured under the OASDI program or The CY 2014 premium of $426 is the Railroad Retirement Act, because death if, at the time of death, the person had at least 30 quarters of coverage; or approximately 3.40 percent lower than they do not have 40 quarters of coverage • the CY 2013 premium of $441. We under Title II of the Act (or are/were not Is divorced from a person and had been married to the person for at least estimate that approximately 626,000 married to someone who did). (Persons enrollees will voluntarily enroll in insured under the OASDI program or 10 years at the time of the divorce if, at the time of the divorce, the person had Medicare Part A by paying the full the Railroad Retirement Act and certain premium. Furthermore, the CY 2014 others do not have to pay premiums for at least 30 quarters of coverage. Section 1818(d)(4)(A) of the Act reduced premium of $234 is Medicare Part A.) approximately 3.70 percent lower than Section 1818A of the Act provides for specifies that the premium that these individuals will pay for CY 2014 will be the CY 2013 premium of $243. We voluntary enrollment in Medicare Part estimate an additional 55,000 enrollees A, subject to payment of a monthly equal to the premium for uninsured aged enrollees reduced by 45 percent. will pay the reduced premium. premium for certain disabled Therefore, we estimate that the total individuals who have exhausted other II. Monthly Premium Amount for CY aggregate savings to enrollees paying entitlement. These are individuals who 2014 these premiums in CY 2014, compared were entitled to coverage due to a The monthly premium for the to the amount that they paid in CY disabling impairment under section uninsured aged and certain disabled 2013, will be about $119 million. 226(b) of the Act, but who are no longer individuals who have exhausted other entitled to disability benefits and free V. Waiver of Proposed Notice and entitlement for the 12 months beginning Comment Period Medicare Part A coverage because they January 1, 2014, is $426. have gone back to work and their The monthly premium for the We use general notices, rather than earnings exceed the statutorily defined individuals eligible under Section notice and comment rulemaking ‘‘substantial gainful activity’’ amount 1818(d)(4)(B) of the Act, and therefore procedures, to make announcements (section 223(d)(4) of the Act). subject to the 45 percent reduction in such as this premium notice. In doing Section 1818A(d)(2) of the Act the monthly premium, is $234. so, we acknowledge that, under the specifies that the provisions relating to Administrative Procedure Act (APA), premiums under section 1818(d) III. Monthly Premium Rate Calculation interpretive rules, general statements of through section 1818(f) of the Act for As discussed in section I of this policy, and rules of agency organization, the aged will also apply to certain notice, the monthly Medicare Part A procedure, or practice are excepted from disabled individuals as described above. premium is equal to the estimated the requirements of notice and comment Section 1818(d) of the Act requires us monthly actuarial rate for CY 2014 rulemaking. The agency may also waive to estimate, on an average per capita rounded to the nearest multiple of $1 notice and comment if there is ‘‘good basis, the amount to be paid from the and equals one-twelfth of the average cause,’’ as defined by the statute. We Federal Hospital Insurance Trust Fund per capita amount, which is determined considered publishing a proposed for services incurred in the upcoming by projecting the number of Part A notice to provide a period for public calendar year (CY) (including the enrollees aged 65 years and over as well comment. However, under the APA, we associated administrative costs) on as the benefits and administrative costs may waive that procedure if we find behalf of individuals aged 65 and over that will be incurred on their behalf. good cause that prior notice and who will be entitled to benefits under The steps involved in projecting these comment are impracticable, Medicare Part A. We must then future costs to the Federal Hospital unnecessary, or contrary to the public determine the monthly actuarial rate for Insurance Trust Fund are: interest. the following year (the per capita • Establishing the present cost of We are not using notice and comment amount estimated above divided by 12) services furnished to beneficiaries, by rulemaking in this notification of and publish the dollar amount for the type of service, to serve as a projection Medicare Part A premiums for CY 2014 monthly premium in the succeeding CY. base; as that procedure is unnecessary If the premium is not a multiple of $1, • Projecting increases in payment because of the lack of discretion in the the premium is rounded to the nearest amounts for each of the service types; statutory formula that is used to multiple of $1 (or, if it is a multiple of and calculate the premium and the solely 50 cents but not of $1, it is rounded to • Projecting increases in ministerial function that this notice the next highest $1). administrative costs. serves. The APA permits agencies to

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waive notice and comment rulemaking enrollees (section 1818 and section more on state, local, or tribal when notice and public comment 1818A of the Act) of about $119 million. governments or on the private sector. thereon are unnecessary. On this basis, As a result, this notice is economically Executive Order 13132 establishes we waive publication of a proposed significant under section 3(f)(1) of certain requirements that an agency notice and a solicitation of public Executive Order 12866 and thus, a must meet when it promulgates a comments. major action under the Congressional proposed rule (and subsequent final Review Act. In accordance with the rule) that imposes substantial direct VI. Collection of Information provisions of Executive Order 12866, requirement costs on state and local Requirements this notice was reviewed by the Office governments, preempts state law, or This document does not impose of Management and Budget. otherwise has Federalism implications. information collection and The RFA requires agencies to analyze Since this notice does not impose any recordkeeping requirements. options for regulatory relief of small costs on state or local governments, the Consequently, it need not be reviewed entities, if a rule has a significant impact requirements of Executive Order 13132 by the Office of Management and on a substantial number of small are not applicable. entities. For purposes of the RFA, small Budget under the authority of the (Catalog of Federal Domestic Assistance Paperwork Reduction Act of 1995 (44 entities include small businesses, Program No. 93.773, Medicare—Hospital U.S.C. 35). nonprofit organizations, and small Insurance) governmental jurisdictions. Most VII. Regulatory Impact Analysis hospitals and most other providers and Dated: September 20, 2013. A. Statement of Need suppliers are small entities, either by Marilyn Tavenner, nonprofit status or by having revenues Administrator, Centers for Medicare & Section 1818(d) of the Act requires of less than $7.0 million to $35.5 Medicaid Services. the Secretary of the Department of million in any 1 year (for details, see the Dated: October 18, 2013. Health and Human Services (the Small Business Administration’s Web Kathleen Sebelius, Secretary) during September of each site at http://www.sba.gov/sites/default/ Secretary. year to determine and publish the files/files/Size_Standards_Table.pdf). amount to be paid, on an average per [FR Doc. 2013–25591 Filed 10–28–13; 11:15 am] Individuals and states are not BILLING CODE 4120–01–P capita basis, from the Federal Hospital included in the definition of a small Insurance Trust Fund for services entity. As discussed above, this annual incurred in the impending calendar year notice announces Medicare’s Hospital DEPARTMENT OF HEALTH AND (CY) (including the associated Insurance (Part A) premium for HUMAN SERVICES administrative costs) on behalf of uninsured enrollees in calendar year individuals aged 65 and over who will (CY) 2014. As a result, we are not Centers for Medicare & Medicaid be entitled to benefits under Medicare preparing an analysis for the RFA Services Part A. because the Secretary has determined [CMS–8053–N] B. Overall Impact that this notice will not have a significant economic impact on a RIN 0938–AR59 We have examined the impacts of this substantial number of small entities. rule as required by Executive Order In addition, section 1102(b) of the Medicare Program; Inpatient Hospital 12866 on Regulatory Planning and Social Security Act requires us to Deductible and Hospital and Extended Review (September 30, 1993), Executive prepare a regulatory impact analysis if Care Services Coinsurance Amounts Order 13563 on Improving Regulation a rule may have a significant impact on for CY 2014 and Regulatory Review (January 18, the operations of a substantial number AGENCY: Centers for Medicare & 2011), the Regulatory Flexibility Act of small rural hospitals. This analysis Medicaid Services (CMS), HHS. (RFA) (September 19, 1980, Pub. L. 96– must conform to the provisions of 354), section 1102(b) of the Social section 604 of the RFA. For purposes of ACTION: Notice. Security Act, section 202 of the section 1102(b) of the Act, we define a SUMMARY: This notice announces the Unfunded Mandates Reform Act of 1995 small rural hospital as a hospital that is inpatient hospital deductible and the (March 22, 1995; Pub. L. 104–4), located outside of a Metropolitan hospital and extended care services Executive Order 13132 on Federalism Statistical Area for Medicare payment coinsurance amounts for services (August 4, 1999), and the Congressional regulations and has fewer than 100 furnished in calendar year (CY) 2014 Review Act (5 U.S.C., Part I, Ch. 8). beds. As discussed above, we are not under Medicare’s Hospital Insurance Executive Orders 12866 and 13563 preparing an analysis for section 1102(b) Program (Medicare Part A). The direct agencies to assess all costs and of the Act, because the Secretary has Medicare statute specifies the formulae benefits of available regulatory determined that this notice will not used to determine these amounts. For alternatives and, if regulation is have a significant impact on the CY 2014, the inpatient hospital necessary, to select regulatory operations of a substantial number of deductible will be $1,216. The daily approaches that maximize net benefits small rural hospitals. (including potential economic, Section 202 of the Unfunded coinsurance amounts for CY 2014 will environmental, public health and safety Mandates Reform Act of 1995 also be: $304 for the 61st through 90th day effects, distributive impacts, and requires that agencies assess anticipated of hospitalization in a benefit period; equity). A regulatory impact analysis costs and benefits before issuing any $608 for lifetime reserve days; and $152 (RIA) must be prepared for major rule whose mandates require spending for the 21st through 100th day of notices with economically significant in any 1 year of $100 million in 1995 extended care services in a skilled effects ($100 million or more in any 1 dollars, updated annually for inflation. nursing facility in a benefit period. year). As stated in section IV of this In 2013, that threshold is approximately DATES: Effective Date: This notice is notice, we estimate that the overall $141 million. This notice does not effective on January 1, 2014. effect of the changes in the Part A impose mandates that will have a FOR FURTHER INFORMATION CONTACT: premium will be a savings to voluntary consequential effect of $141 million or Clare McFarland, (410) 786–6390 for

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general information. Gregory J. Savord, 2.0 percentage points. We are estimating compared to those of other hospitals. (410) 786–1521 for case-mix analysis. that after accounting for those hospitals We then computed the change in SUPPLEMENTARY INFORMATION: receiving the lower market basket average case-mix for hospitals paid update in the payment-weighted average under the Medicare prospective I. Background update, the calculated deductible will payment system in FY 2013 compared Section 1813 of the Social Security remain the same, as the majority of to FY 2012. (We excluded from this Act (the Act) provides for an inpatient hospitals submit quality data and calculation hospitals whose payments hospital deductible to be subtracted receive the full market basket update. are not based on the inpatient from the amount payable by Medicare Under section 1886(b)(3)(B)(ii)(VIII) of prospective payment system because for inpatient hospital services furnished the Act, the percentage increase used to their payments are based on alternate to a beneficiary. It also provides for update the payment rates for FY 2014 prospective payment systems or certain coinsurance amounts to be for hospitals excluded from the reasonable costs.) We used Medicare subtracted from the amounts payable by inpatient prospective payment system is bills from prospective payment Medicare for inpatient hospital and as follows: hospitals that we received as of July extended care services. Section • For FY 2014, the percentage 2013. These bills represent a total of 1813(b)(2) of the Act requires us to increase for long term care hospitals is about 7.8 million Medicare discharges determine and publish each year the the market basket percentage increase for FY 2013 and provide the most recent amount of the inpatient hospital reduced by 0.3 percentage points and case-mix data available at this time. deductible and the hospital and the MFP adjustment (see sections Based on these bills, the change in extended care services coinsurance 1886(m)(3)(A) and 1886(m)(4)(C) of the average case-mix in FY 2013 is 0.89 amounts applicable for services Act). percent. Based on these bills and past furnished in the following calendar year • For FY 2014, the percentage experience, we expect the overall case (CY). increase for inpatient rehabilitation mix change to be 1.0 percent as the year facilities is the market basket percentage progresses and more FY 2013 data II. Computing the Inpatient Hospital increase reduced by 0.3 percentage become available. Deductible for CY 2014 points and the MFP adjustment (see Section 1813 of the Act requires that Section 1813(b) of the Act prescribes sections 1886(j)(3)(C) and the inpatient hospital deductible be the method for computing the amount of 1886(j)(3)(D)(ii) of the Act). adjusted only by that portion of the the inpatient hospital deductible. The • For FY 2014, the percentage case-mix change that is determined to inpatient hospital deductible is an increase used to update the payment be real. We estimate that the change in amount equal to the inpatient hospital rate for psychiatric hospitals is the real case mix will be 1.0 percent. deductible for the preceding CY, market basket percentage increase Thus, the estimate of the payment- adjusted by our best estimate of the reduced by 0.1 percentage points and weighted average of the applicable payment-weighted average of the the MFP adjustment (see sections percentage increases used for updating applicable percentage increases (as 1886(s)(2)(A)(ii) and 1886(s)(3)(B) of the the payment rates is 1.73 percent, and defined in section 1886(b)(3)(B) of the Act). the real case-mix adjustment factor for Act) used for updating the payment The Inpatient Prospective Payment the deductible is 1.0 percent. Therefore, rates to hospitals for discharges in the System market basket percentage under the statutory formula, the fiscal year (FY) that begins on October increase for 2014 is 2.5 percent and the inpatient hospital deductible for 1 of the same preceding CY, and MFP adjustment is 0.5 percent, as services furnished in CY 2014 is $1,216. adjusted to reflect changes in real case- announced in the final rule with This deductible amount is determined mix. The adjustment to reflect real case- comment period published in the by multiplying $1,184 (the inpatient mix is determined on the basis of the Federal Register on August 19, 2013 hospital deductible for CY 2013) by the most recent case-mix data available. The entitled, ‘‘Medicare Program; Hospital payment-weighted average increase in amount determined under this formula Inpatient Prospective Payment Systems the payment rates of 1.0173 multiplied is rounded to the nearest multiple of $4 for Acute Care Hospitals and the Long- by the increase in real case-mix of 1.01, (or, if midway between two multiples of Term Care Hospital Prospective which equals $1,216.53 and is rounded $4, to the next higher multiple of $4). Payment System and Fiscal Year 2014 to $1,216. Under section 1886(b)(3)(B)(i)(XX) of Rates; Quality Reporting Requirements the Act, the percentage increase used to for Specific Providers; Hospital III. Computing the Inpatient Hospital update the payment rates for FY 2014 Conditions of Participation; Payment and Extended Care Services for hospitals paid under the inpatient Policies Related to Patient Status ’’ (78 Coinsurance Amounts for CY 2014 prospective payment system is the FR 50608). Therefore, the percentage The coinsurance amounts provided market basket percentage increase, increase for hospitals paid under the for in section 1813 of the Act are otherwise known as the market basket inpatient prospective payment system is defined as fixed percentages of the update, reduced by 0.3 percentage 1.7 percent. The average payment inpatient hospital deductible for points (see section 1886(b)(3)(B)(xii)(II) percentage increase for hospitals services furnished in the same CY. The of the Act), and an adjustment based on excluded from the inpatient prospective increase in the deductible generates changes in the economy-wide payment system is 1.94 percent. increases in the coinsurance amounts. productivity (the multifactor Weighting these percentages in For inpatient hospital and extended care productivity (MFP) adjustment (see accordance with payment volume, our services furnished in CY 2014, in section 1886(b)(3)(B)(xi)(II) of the Act). best estimate of the payment-weighted accordance with the fixed percentages Under section 1886(b)(3)(B)(viii) of the average of the increases in the payment defined in the law, the daily Act, hospitals will receive this update rates for FY 2014 is 1.73 percent. coinsurance for the 61st through 90th only if they submit quality data as To develop the adjustment to reflect day of hospitalization in a benefit specified by the Secretary of the changes in real case-mix, we first period will be $304 (one-fourth of the Department of Health and Services (the calculated an average case-mix for each inpatient hospital deductible); the daily Secretary). The update for hospitals that hospital that reflects the relative coinsurance for lifetime reserve days do not submit this data is reduced by costliness of that hospital’s mix of cases will be $608 (one-half of the inpatient

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hospital deductible); and the daily period will be $152 (one-eighth of the CYs 2013 and 2014, as well as the coinsurance for the 21st through 100th inpatient hospital deductible). number of each that is estimated to be day of extended care services in a IV. Cost to Medicare Beneficiaries paid. skilled nursing facility in a benefit Table 1 below summarizes the deductible and coinsurance amounts for

TABLE 1—PART A DEDUCTIBLE AND COINSURANCE AMOUNTS FOR CALENDAR YEARS 2013 AND 2014 TYPE OF COST SHARING

Value Number paid (in millions) 2013 2014 2013 2014

Inpatient hospital deductible ...... $1,184 $1,216 7.91 8.07 Daily coinsurance for 61st–90th Day ...... 296 304 2.04 2.09 Daily coinsurance for lifetime reserve days ...... 592 608 1.02 1.04 SNF coinsurance ...... 148 152 42.10 43.40

The estimated total increase in costs publication of a proposed notice and environmental, public health and safety to beneficiaries is about $870 million solicitation of public comments. effects, distributive impacts, and (rounded to the nearest $10 million) due equity). A regulatory impact analysis VI. Collection of Information (RIA) must be prepared for major to—(1) the increase in the deductible Requirements and coinsurance amounts; and (2) the notices with economically significant increase in the number of deductibles This document does not impose effects ($100 million or more in any 1 and daily coinsurance amounts paid. information collection and year). As stated in section IV of this recordkeeping requirements. notice, we estimate that the total V. Waiver of Proposed Notice and Consequently, it need not be reviewed increase in costs to beneficiaries Comment Period by the Office of Management and associated with this notice is about $870 Budget under the authority of the million due to—(1) the increase in the The Medicare statute, as discussed Paperwork Reduction Act of 1995 (44 deductible and coinsurance amounts; previously, requires publication of the U.S.C. 35). and (2) the increase in the number of Medicare Part A inpatient hospital deductibles and daily coinsurance deductible and the hospital and VII. Regulatory Impact Analysis amounts paid. As a result, this notice is extended care services coinsurance A. Statement of Need economically significant under section amounts for services for each CY. The Section 1813(b)(2) of the Act requires 3(f)(1) of Executive Order 12866 and amounts are determined according to thus, is a major action under the the statute. As has been our custom, we the Secretary to determine and publish, between September 1 and September 15 Congressional Review Act. In use general notices, rather than notice accordance with the provisions of and comment rulemaking procedures, to of each year, the amount of the inpatient hospital deductible and the hospital and Executive Order 12866, this notice was make the announcements. In doing so, reviewed by the Office of Management we acknowledge that, under the extended care services coinsurance amounts applicable for services and Budget. Administrative Procedure Act (APA), The RFA requires agencies to analyze interpretive rules, general statements of furnished in the following calendar year (CY). options for regulatory relief of small policy, and rules of agency organization, entities, if a rule has a significant impact procedure, or practice are excepted from B. Overall Impact on a substantial number of small the requirements of notice and comment We have examined the impacts of this entities. For purposes of the RFA, small rulemaking. rule as required by Executive Order entities include small businesses, We considered publishing a proposed 12866 on Regulatory Planning and nonprofit organizations, and small notice to provide a period for public Review (September 30, 1993), Executive governmental jurisdictions. Most comment. However, we may waive that Order 13563 on Improving Regulation hospitals and most other providers and procedure if we find good cause that and Regulatory Review (January 18, suppliers are small entities, either by prior notice and comment are 2011), the Regulatory Flexibility Act nonprofit status or by having revenues impracticable, unnecessary, or contrary (RFA) (September 19, 1980, Pub. L. 96– of less than $7.0 million to $35.5 to the public interest. We find that the 354), section 1102(b) of the Social million in any 1 year (for details, see the procedure for notice and comment is Security Act, section 202 of the Small Business Administration’s Web unnecessary because the formulae used Unfunded Mandates Reform Act of 1995 site at http://www.sba.gov/sites/default/ to calculate the inpatient hospital (March 22, 1995; Pub. L. 104–4), files/files/Size_Standards_Table.pdf). deductible and hospital and extended Executive Order 13132 on Federalism Individuals and states are not care services coinsurance amounts are (August 4, 1999) and the Congressional included in the definition of a small statutorily directed, and we can exercise Review Act (5 U.S.C., Part I, Ch. 8). entity. As discussed above, this annual no discretion in following the formulae. Executive Orders 12866 and 13563 notice announces the inpatient hospital Moreover, the statute establishes the direct agencies to assess all costs and deductible and the hospital and time period for which the deductible benefits of available regulatory extended care services coinsurance and coinsurance amounts will apply alternatives and, if regulation is amounts for services furnished in CY and delaying publication would be necessary, to select regulatory 2014 under Medicare’s Hospital contrary to the public interest. approaches that maximize net benefits Insurance Program (Medicare Part A). Therefore, we find good cause to waive (including potential economic, As a result, we are not preparing an

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analysis for the RFA because the DEPARTMENT OF HEALTH AND Agenda: The committee will discuss Secretary has determined that this HUMAN SERVICES the safety and efficacy of biologic notice will not have a significant license application (BLA) 125390, economic impact on a substantial Food and Drug Administration metreleptin for injection, sponsored by number of small entities. Amylin Pharmaceuticals, LLC, a wholly In addition, section 1102(b) of the [Docket No. FDA–2013–N–0001] owned subsidiary of Bristol-Myers Social Security Act requires us to Squibb. The proposed indication for prepare a regulatory impact analysis if Endocrinologic and Metabolic Drugs metreleptin is the treatment of a rule may have a significant impact on Advisory Committee; Notice of Meeting metabolic disorders associated with the operations of a substantial number AGENCY: Food and Drug Administration, lipodystrophy, including diabetes of small rural hospitals. This analysis HHS. mellitus and/or hypertriglyceridemia (elevated triglyceride levels in the must conform to the provisions of ACTION: Notice. section 604 of the RFA. For purposes of blood) in pediatric and adult patients section 1102(b) of the Act, we define a This notice announces a forthcoming with inherited or acquired small rural hospital as a hospital that is meeting of a public advisory committee lipodystrophy. (Lipodystrophies are rare located outside of a Metropolitan of the Food and Drug Administration medical conditions of abnormal loss of Statistical Area for Medicare payment (FDA). The meeting will be open to the the body’s fatty tissues.) regulations and has fewer than 100 public. FDA intends to make background material available to the public no later beds. As discussed above, we are not Name of Committee: Endocrinologic than 2 business days before the meeting. preparing an analysis for section 1102(b) and Metabolic Drugs Advisory If FDA is unable to post the background of the Act because the Secretary has Committee. material on its Web site prior to the determined that this notice will not General Function of the Committee: meeting, the background material will have a significant impact on the To provide advice and be made publicly available at the operations of a substantial number of recommendations to the Agency on location of the advisory committee small rural hospitals. FDA’s regulatory issues. meeting, and the background material Section 202 of the Unfunded Date and Time: The meeting will be will be posted on FDA’s Web site after Mandates Reform Act of 1995 also held on December 11, 2013, from 8 a.m. the meeting. Background material is requires that agencies assess anticipated to 5 p.m. available at http://www.fda.gov/ costs and benefits before issuing any Location: FDA White Oak Campus, AdvisoryCommittees/Calendar/ rule whose mandates require spending Building 31, the Great Room, White Oak default.htm. Scroll down to the in any 1 year of $100 million in 1995 Conference Center (rm. 1503), 10903 appropriate advisory committee meeting dollars, updated annually for inflation. New Hampshire Ave., Silver Spring, MD link. For 2013, that threshold accounting for 20993–0002. Information regarding Procedure: Interested persons may inflation is approximately $141 million. special accommodations due to a present data, information, or views, This notice does not impose mandates disability, visitor parking, and orally or in writing, on issues pending that will have a consequential effect of transportation may be accessed at: before the committee. Written $141 million or more on state, local, or http://www.fda.gov/ submissions may be made to the contact tribal governments or on the private AdvisoryCommittees/default.htm; under person on or before November 26, 2013. sector. However, states may be required the heading ‘‘Resources for You,’’ click Oral presentations from the public will to pay the deductibles and coinsurance on ‘‘Public Meetings at the FDA White be scheduled between approximately for dually-eligible beneficiaries. Oak Campus.’’ Please note that visitors 1:30 p.m. and 2:30 p.m. Those Executive Order 13132 establishes to the White Oak Campus must enter individuals interested in making formal certain requirements that an agency through Building 1. oral presentations should notify the must meet when it promulgates a Contact Person: Karen Abraham- contact person and submit a brief proposed rule (and subsequent final Burrell, Center for Drug Evaluation and statement of the general nature of the rule) that imposes substantial direct Research, Food and Drug evidence or arguments they wish to requirement costs on state and local Administration, 10903 New Hampshire present, the names and addresses of governments, preempts state law, or Ave., Bldg. 31, rm. 2417, Silver Spring, proposed participants, and an otherwise has Federalism implications. MD 20993–0002, 301–796–9001, FAX: indication of the approximate time Since this notice does not impose any 301–847–8533, email: EMDAC@ requested to make their presentation on costs on state or local governments, fda.hhs.gov, or FDA Advisory or before November 18, 2013. Time preempt state law or have Federalism Committee Information Line, 1–800– allotted for each presentation may be implications, the requirements of 741–8138 (301–443–0572 in the limited. If the number of registrants Executive Order 13132 are not Washington, DC area). A notice in the requesting to speak is greater than can applicable. Federal Register about last minute be reasonably accommodated during the (Catalog of Federal Domestic Assistance modifications that impact a previously scheduled open public hearing session, Program No. 93.773, Medicare—Hospital announced advisory committee meeting FDA may conduct a lottery to determine Insurance) cannot always be published quickly the speakers for the scheduled open Dated: September 20, 2013. enough to provide timely notice. public hearing session. The contact Therefore, you should always check the Marilyn Tavenner, person will notify interested persons Agency’s Web site at http:// regarding their request to speak by Administrator, Centers for Medicare & www.fda.gov/AdvisoryCommittees/ Medicaid Services. November 19, 2013. default.htm and scroll down to the Persons attending FDA’s advisory Dated: October 18, 2013. appropriate advisory committee meeting committee meetings are advised that the Kathleen Sebelius, link, or call the advisory committee Agency is not responsible for providing Secretary. information line to learn about possible access to electrical outlets. [FR Doc. 2013–25595 Filed 10–28–13; 11:15 am] modifications before coming to the FDA welcomes the attendance of the BILLING CODE 4120–01–P meeting. public at its advisory committee

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meetings and will make every effort to the heading ‘‘Resources for You,’’ click before the committees. Written accommodate persons with physical on ‘‘Public Meetings at the FDA White submissions may be made to the contact disabilities or special needs. If you Oak Campus.’’ Please note that visitors person on or before November 22, 2013. require special accommodations due to to the White Oak Campus must enter Oral presentations from the public will a disability, please contact Karen through Building 1. be scheduled between approximately Abraham-Burrell at least 7 days in Contact Person: Cindy Hong, Center 1:30 p.m. and 2:30 p.m. Those advance of the meeting. for Drug Evaluation and Research, Food individuals interested in making formal FDA is committed to the orderly and Drug Administration, 10903 New oral presentations should notify the Hampshire Ave., Building 31, Rm. 2417, conduct of its advisory committee contact person and submit a brief Silver Spring, MD 20993–0002, 301– meetings. Please visit our Web site at statement of the general nature of the http://www.fda.gov/ 796–9001, FAX: 301–847–8533, email: evidence or arguments they wish to AdvisoryCommittees/ [email protected], or FDA Advisory present, the names and addresses of AboutAdvisoryCommittees/ Committee Information Line, 1–800– ucm111462.htm for procedures on 741–8138 (301–443–0572 in the proposed participants, and an public conduct during advisory Washington, DC area). A notice in the indication of the approximate time committee meetings. Federal Register about last minute requested to make their presentation on Notice of this meeting is given under modifications that impact a previously or before November 14, 2013. Time the Federal Advisory Committee Act (5 announced advisory committee meeting allotted for each presentation may be U.S.C. app. 2). cannot always be published quickly limited. If the number of registrants Dated: October 21, 2013. enough to provide timely notice. requesting to speak is greater than can Therefore, you should always check the be reasonably accommodated during the Jill Hartzler Warner, Agency’s Web site at http:// scheduled open public hearing session, Acting Associate Commissioner for Special www.fda.gov/AdvisoryCommittees/ Medical Programs. FDA may conduct a lottery to determine default.htm and scroll down to the the speakers for the scheduled open [FR Doc. 2013–25588 Filed 10–29–13; 8:45 am] appropriate advisory committee meeting public hearing session. The contact BILLING CODE 4160–01–P link, or call the advisory committee person will notify interested persons information line to learn about possible regarding their request to speak by modifications before coming to the DEPARTMENT OF HEALTH AND November 15, 2013. meeting. HUMAN SERVICES Agenda: The committees will discuss Persons attending FDA’s advisory committee meetings are advised that the Food and Drug Administration two biologics license applications (BLAs) for vedolizumab injection Agency is not responsible for providing [Docket No. FDA–2013–N–0001] (proposed tradename Entyvio), access to electrical outlets. submitted by Millennium Joint Meeting of the Gastrointestinal FDA welcomes the attendance of the Pharmaceuticals, Inc. BLA 125476 public at its advisory committee Drugs Advisory Committee and the proposes an indication for the treatment Drug Safety and Risk Management meetings and will make every effort to of adult patients with moderately to accommodate persons with physical Advisory Committee; Notice of Joint severely active ulcerative colitis who disabilities or special needs. If you Meeting have had an inadequate response to, require special accommodations due to have lost response to, or were intolerant AGENCY: Food and Drug Administration, a disability, please contact Cindy Hong HHS. to either conventional therapy or a tumor necrosis factor-alpha (TNFa) at least 7 days in advance of the ACTION: Notice. antagonist. BLA 125507 proposes an meeting. This notice announces a forthcoming indication for the treatment of adult FDA is committed to the orderly meeting of two public advisory patients with moderately to severely conduct of its advisory committee committees of the Food and Drug active Crohn’s disease who have had an meetings. Please visit our Web site at Administration (FDA). The meeting will inadequate response to, have lost http://www.fda.gov/ be open to the public. response to, or were intolerant to either AdvisoryCommittees/ Name of Committees: Gastrointestinal conventional therapy or a TNFa AboutAdvisoryCommittees/ Drugs Advisory Committee and the Drug antagonist. ucm111462.htm for procedures on Safety and Risk Management Advisory FDA intends to make background public conduct during advisory material available to the public no later Committee. committee meetings. General Function of the Committees: than 2 business days before the meeting. To provide advice and If FDA is unable to post the background Notice of this meeting is given under recommendations to the Agency on material on its Web site prior to the the Federal Advisory Committee Act (5 FDA’s regulatory issues. meeting, the background material will U.S.C. app. 2). Date and Time: The meeting will be be made publicly available at the Dated: October 21, 2013. held on December 9, 2013, from 8 a.m. location of the advisory committee Jill Hartzler Warner, to 5:30 p.m. meeting, and the background material Location: FDA White Oak Campus, will be posted on FDA’s Web site after Acting Associate Commissioner for Special Building 31, the Great Room, White Oak the meeting. Background material is Medical Programs. Conference Center (Rm. 1503), 10903 available at http://www.fda.gov/ [FR Doc. 2013–25583 Filed 10–29–13; 8:45 am] New Hampshire Ave., Silver Spring, MD AdvisoryCommittees/Calendar/ BILLING CODE 4160–01–P 20993–0002. Information regarding default.htm. Scroll down to the special accommodations due to a appropriate advisory committee meeting disability, visitor parking, and link. transportation may be accessed at: Procedure: Interested persons may http://www.fda.gov/ present data, information, or views, AdvisoryCommittees/default.htm; under orally or in writing, on issues pending

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES HUMAN SERVICES

National Institutes of Health National Institutes of Health National Institutes of Health

Center for Scientific Review; Amended Center for Scientific Review; Amended National Cancer Institute; Amended Notice of Meeting Notice of Meeting Notice of Meeting

Notice is hereby given of a change in Notice is hereby given of a change in Notice is hereby given of a change in the meeting of the Center for Scientific the meeting of the Integrative the meeting of the Subcommittee J— Review Special Emphasis Panel, Physiology of Obesity and Diabetes Career Development, October 24, 2013, October 23, 2013, 09:00 a.m. to October Study Section, October 24, 2013, 8:00 8:00 a.m. to October 25, 2013, 6:00 p.m., 23, 2013, 06:00 p.m., National Institutes a.m. to October 25, 2013, 5:00 p.m., National Cancer Institute Shady Grove, of Health, 6701 Rockledge Drive, Avenue Hotel Chicago, 160 E. Huron West Tower, 9609 Medical Center Drive, Bethesda, MD 20892 which was Street, Chicago, IL, 60611 which was 7W032–24th & 7W30–25th, Rockville, published in the Federal Register on published in the Federal Register on MD, 20850 which was published in the October 1, 2013, 78 FR 60296. October 1, 2013, 78 FR 60297–60299. Federal Register on August 16, 2013, 78FR50065. The meeting will be held on The meeting will start on December November 26, 2013 from 09:00 a.m. to 19, 2013 at 8:00 a.m. and end on Due to the absence of either an FY 06:30 p.m. The meeting location December 20, 2013 at 6:00 p.m. The 2014 appropriation or Continuing remains the same. The meeting is closed location remains the same. The meeting Resolution for the Department of Health to the public. is closed to the public. & Human Services, the meeting is rescheduled for November 14, 2013 Dated: October 25, 2013. Dated: October 25, 2013. from 8:00 a.m. to 6:00 p.m. and the Carolyn A. Baum, Anna Snouffer, location remains the same, however the Program Analyst, Office of Federal Advisory Deputy Director, Office of Federal Advisory room has changed to 4E032. The Committee Policy. Committee Policy. meeting is closed to the public. [FR Doc. 2013–25681 Filed 10–29–13; 8:45 am] [FR Doc. 2013–25761 Filed 10–29–13; 8:45 am] Dated: October 25, 2013. BILLING CODE 4140–01–P BILLING CODE 4140–01–P David Clary, Program Analyst, Office of Federal Advisory Committee Policy. DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES [FR Doc. 2013–25744 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P National Institutes of Health National Institutes of Health

Center for Scientific Review; Amended National Cancer Institute; Amended DEPARTMENT OF HEALTH AND Notice of Meeting Notice of Meeting HUMAN SERVICES

Notice is hereby given of a change in Notice is hereby given of a change in National Institutes of Health the meeting of the Therapeutic the meeting of the National Cancer National Institute on Drug Abuse; Approaches to Genetic Diseases Study Institute Special Emphasis Panel, Amended Notice of Meeting Section, October 21, 2013, 8:30 a.m. to October 15, 2013, 4:00 p.m. to October October 21, 2013, 3:00 p.m., Amalfi 16, 2013, 5:00 p.m., Bethesda North Notice is hereby given of a change in Hotel, 20 West Kinzie Street, Chicago, IL Marriott Hotel & Conference Center, the meeting of the National Institute on 60654 which was published in the 5701 Marinelli Road, Bethesda, MD, Drug Abuse Special Emphasis Panel, Federal Register on September 26, 2013, 20852 which was published in the October 15, 2013, 2:00 p.m. to October 78 FR 59361–59362. Federal Register on September 11, 2013, 16, 2013, 1:00 p.m., Hilton Garden Inn The meeting will be held at the 78FR55750. Washington DC/Bethesda, 7301 Waverly National Institutes of Health, 6701 Due to the absence of either an FY Street, Bethesda, MD 21045 which was Rockledge Drive, Bethesda, MD 20892 2014 appropriation or Continuing published in the Federal Register on on November 25, 2013. The meeting Resolution for the Department of Health September 23, 2013, 78 184 FRN2013– time remains the same. The meeting is and Human Services, the meeting is 22992. closed to the public. rescheduled for November 12–13, 2013 The date, time and location of the Dated: October 25, 2013. from 4:00 p.m. to 5:00 p.m. meeting are changed to November 13, Additionally, the meeting location has 2013, 1:30 p.m. to November 14, 2013, Anna Snouffer, changed to Hilton Rockville Hotel, 1750 1:00 p.m., Hyatt Regency Bethesda, One Deputy Director, Office of Federal Advisory Rockville Pike, Rockville, MD 20852. Bethesda Metro Center, 7400 Wisconsin Committee Policy. The meeting is closed to the public. Avenue, Bethesda, MD 20814. The [FR Doc. 2013–25742 Filed 10–29–13; 8:45 am] meeting is closed to the public. Dated: October 25, 2013. BILLING CODE 4140–01–P David Clary, Dated: October 25, 2013. Program Analyst, Office of Federal Advisory Michelle Trout, Committee Policy. Program Analyst, Office of Federal Advisory [FR Doc. 2013–25743 Filed 10–29–13; 8:45 am] Committee Policy. BILLING CODE 4140–01–P [FR Doc. 2013–25749 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND Division of Extramural Activities, National DEPARTMENT OF HEALTH AND HUMAN SERVICES Cancer Institute, 9609 Medical Center Drive, HUMAN SERVICES Room 7w530, Bethesda, MD 20892, 240–276– National Institutes of Health 6442, [email protected]. National Institutes of Health This meeting notice is being published less Center for Scientific Review; Amended than 15 days in advance of the meeting due Center for Scientific Review; Amended Notice of Meeting to the Government shutdown of October Notice of Meeting Notice is hereby given of a change in 2013. the meeting of the Genetic Variation and Information is also available on the Notice is hereby given of a change in Evolution Study Section, October 17, Institute’s/Center’s home page: http:// the meeting of the Developmental deainfo.nci.nih.gov/advisory/sep/sep.htm, 2013, 8:00 a.m. to October 18, 2013, 2:00 Therapeutics Study Section, October 07, where an agenda and any additional p.m., Sheraton Delfina Santa Monica 2013, 08:00 a.m. to October 08, 2013, information for the meeting will be posted Hotel, 530 West Pico Boulevard, Santa 05:00 p.m., Hotel Monaco Alexandria, when available. Monica, CA 90405 which was published 480 King Street, Alexandria, VA 22314 in the Federal Register on September (Catalogue of Federal Domestic Assistance which was published in the Federal 23, 2013, 78 FR 184 Pgs. 58323–58324. Program Nos. 93.392, Cancer Construction; Register on September 10, 2013, 78 FR The meeting will be held at the 93.393, Cancer Cause and Prevention 55269. National Institutes of Health, 6701 Research; 93.394, Cancer Detection and Diagnosis Research; 93.395, Cancer The meeting will start on November Rockledge Dr., Bethesda, MD 20892. 21, 2013 at 07:00 p.m. and end on The meeting will start on December 16, Treatment Research; 93.396, Cancer Biology November 22, 2013 at 06:00 p.m. The 2013 at 10:00 a.m. and end on December Research; 93.397, Cancer Centers Support; meeting location remains the same. The 18, 2013 at 6:00 p.m. The meeting is 93.398, Cancer Research Manpower; 93.399, closed to the public. Cancer Control, National Institutes of Health, meeting is closed to the public. HHS) Dated: October 25, 2013. Dated: October 25, 2013. Dated: October 25, 2013. Anna Snouffer, Carolyn A. Baum, Deputy Director, Office of Federal Advisory David Clary, Program Analyst, Office of Federal Advisory Committee Policy. Program Analyst, Office of Federal Advisory Committee Policy. [FR Doc. 2013–25772 Filed 10–29–13; 8:45 am] Committee Policy. [FR Doc. 2013–25677 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P [FR Doc. 2013–25745 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P BILLING CODE 4140–01–P

DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES National Institutes of Health National Institutes of Health National Institutes of Health National Cancer Institute; Notice of Center for Scientific Review; Amended Closed Meeting Center for Scientific Review; Amended Notice of Meeting Pursuant to section 10(d) of the Notice of Meeting Federal Advisory Committee Act, as Notice is hereby given of a change in amended (5 U.S.C. App.), notice is Notice is hereby given of a change in the meeting of the Hemostasis and hereby given of the following meeting. the meeting of the Molecular and Thrombosis Study Section, October 16, The meeting will be closed to the Cellular Hematology Study Section, 2013, 11:00 a.m. to October 16, 2013, public in accordance with the October 15, 2013, 08:00 a.m. to October 06:00 p.m., National Institutes of Health, provisions set forth in sections 16, 2013, 06:00 p.m., Embassy Suites at 6701 Rockledge Drive, Bethesda, MD, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., the Chevy Chase Pavilion, 4300 Military 20892 which was published in the as amended. The grant applications and Road NW., Washington, DC 20015 Federal Register on September 23, 2013, the discussions could disclose which was published in the Federal 78 FR 184 Pgs. 58323–58324. confidential trade secrets or commercial Register on September 16, 2013, 78 FR The meeting will start on December property such as patentable material, 56904–56905. 18, 2013 at 12:00 p.m. and end on and personal information concerning The meeting will be held at the individuals associated with the grant December 18, 2013 at 5:00 p.m. applications, the disclosure of which National Institutes of Health, 6701 The meeting location remains the would constitute a clearly unwarranted Rockledge Drive, Bethesda, MD 20892. same. The meeting is closed to the invasion of personal privacy. The meeting will start on December 2, public. 2013 at 11:00 a.m. and end on December Name of Committee: National Cancer 4, 2013 at 6:00 p.m. The meeting is Dated: October 25, 2013. Institute Special Emphasis Panel, Brain Anna Snouffer, Tumor Consortium. closed to the public. Deputy Director, Office of Federal Advisory Date: November 5, 2013. Dated: October 25, 2013. Time: 9:00 a.m. to 2:00 p.m. Committee Policy. Anna Snouffer, Agenda: To review and evaluate grant [FR Doc. 2013–25758 Filed 10–29–13; 8:45 am] applications. Deputy Director, Office of Federal Advisory BILLING CODE 4140–01–P Place: National Cancer Institute Shady Committee Policy. Grove, Room 7W032 & 034, 9609 Medical [FR Doc. 2013–25759 Filed 10–29–13; 8:45 am] Center Drive, Rockville, MD 20850 (Telephone Conference Call). BILLING CODE 4140–01–P Contact Person: Shamala K. Srinivas, Ph.D., Scientific Review Officer, Office of Referral, Review and Program Coordination,

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES HUMAN SERVICES

National Institutes of Health National Institutes of Health National Institutes of Health

Center for Scientific Review; Amended National Institute on Drug Abuse; Center for Scientific Review; Amended Notice of Meeting Notice of Closed Meetings Notice of Meeting

Notice is hereby given of a change in Pursuant to section 10(d) of the Notice is hereby given of a change in the meeting of the Integrative and Federal Advisory Committee Act, as the meeting of the Language and Clinical Endocrinology and amended (5 U.S.C. App), notice is Communication Study Section, October Reproduction Study Section, October hereby given of the following meetings. 11, 2013, 8:00 a.m. to October 11, 2013, 23, 2013, 08:00 a.m. to October 23, 2013, The meetings will be closed to the 6:00 p.m., Doubletree Hotel Washington, 05:00 p.m., Sheraton Silver Spring public in accordance with the 1515 Rhode Island Ave. NW., Hotel, 8777 Georgia Avenue, Silver provisions set forth in sections Washington, DC 20005 which was Spring, MD 20910 which was published 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., published in the Federal Register on in the Federal Register on October 01, as amended. The grant applications and September 17, 2013, 78 FR 180 Pgs. 2013, 78 FR 60294–60296. the discussions could disclose 57169–57170. confidential trade secrets or commercial The meeting will be held at the property such as patentable materials, The meeting will start on December National Institutes of Health, 6701 and personal information concerning 13, 2013 at 8:00 a.m. and will end on Rockledge Drive, Bethesda, MD 20892 individuals associated with the grant December 13, 2013 at 6:00 p.m. The on December 17, 2013. The meeting will applications, the disclosure of which meeting location remains the same. The start at 10:00 a.m. and end at 6:00 p.m. would constitute a clearly unwarranted meeting is closed to the public. The meeting is closed to the public. invasion of personal privacy. Dated: October 24, 2013. Dated: October 25, 2013. Name of Committee: National Institute on Carolyn A. Baum, Anna Snouffer, Drug Abuse Special Emphasis Panel; R25 and Program Analyst, Office of Federal Advisory Deputy Director, Office of Federal Advisory T32 AIDS Applications. Committee Policy. Date: December 11, 2013. Committee Policy. [FR Doc. 2013–25662 Filed 10–29–13; 8:45 am] Time: 11:00 a.m. to 12:30 p.m. [FR Doc. 2013–25774 Filed 10–29–13; 8:45 am] Agenda: To review and evaluate grant BILLING CODE 4140–01–P BILLING CODE 4140–01–P applications. Place: National Institutes of Health, Neuroscience Center, 6001 Executive DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND Boulevard, Rockville, MD 20852, (Telephone HUMAN SERVICES HUMAN SERVICES Conference Call). Contact Person: Eliane Lazar-Wesley, National Institutes of Health National Institutes of Health Ph.D., Scientific Review Officer, Office of Extramural Affairs, National Institute on Center for Scientific Review; Amended Center for Scientific Review; Amended Drug Abuse, NIH, DHHS, Room 4245, MSC Notice of Meeting Notice of Meeting 9550, 6001 Executive Blvd., Bethesda, MD 20892–9550, 301–451–4530, [email protected]. Notice is hereby given of a change in Notice is hereby given of a change in Name of Committee: National Institute on the meeting of the Center for Scientific the meeting of the Center for Scientific Drug Abuse Special Emphasis Panel; CEBRA: Review Special Emphasis Panel, Review Special Emphasis Panel, Cutting-Edge Basic Research Awards (R21). October 18, 2013, 10:30 a.m. to October Date: December 12, 2013. October 21, 2013, 03:30 p.m. to October Time: 9:00 a.m. to 5:00 p.m. 18, 2013, 5:30 p.m., National Institutes 21, 2013, 06:00 p.m., Amalfi Hotel, 20 Agenda: To review and evaluate grant of Health, 6701 Rockledge Drive, West Kinzie Street, Chicago, IL 60654 applications. Bethesda, MD 20892 which was which was published in the Federal Place: National Institutes of Health, published in the Federal Register on Register on September 26, 2013, 78 FR Neuroscience Center, 6001 Executive September 25, 2013, 78 FR 186 pgs. 59362. Boulevard, Rockville, MD 20852, (Virtual 59040–59041. Meeting). The meeting will be held at the Contact Person: Scott A. Chen, Ph.D., The meeting will start on December 3, National Institutes of Health 6701 Scientific Review Officer, Office of 2013 at 8:00 a.m. and end on December Rockledge Drive, Bethesda, MD 20892 Extramural Affairs, National Institute on 3, 2013 at 5:00 PM. The meeting on November 25, 2013. The meeting Drug Abuse, NIH, DHHS, Room 4234, MSC location remains the same. The meeting time remains the same. The meeting is 9550, 6001 Executive Blvd., Bethesda, MD is closed to the public. closed to the public. 20892–9550, 301–443–9511, [email protected]. Dated: October 24, 2013. Dated: October 25, 2013. (Catalogue of Federal Domestic Assistance Carolyn A. Baum, Anna Snouffer, Program Nos.: 93.279, Drug Abuse and Program Analyst, Office of Federal Advisory Deputy Director, Office of Federal Advisory Addiction Research Programs, National Committee Policy. Institutes of Health, HHS) Committee Policy. [FR Doc. 2013–25652 Filed 10–29–13; 8:45 am] [FR Doc. 2013–25762 Filed 10–29–13; 8:45 am] Dated: October 25, 2013. BILLING CODE 4140–01–P BILLING CODE 4140–01–P Michelle Trout, Program Analyst, Office of Federal Advisory Committee Policy. [FR Doc. 2013–25753 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES HUMAN SERVICES

National Institutes of Health National Institutes of Health National Institutes of Health

Center for Scientific Review; Amended Center for Scientific Review; Amended Center for Scientific Review; Amended Notice of Meeting Notice of Meeting Notice of Meeting

Notice is hereby given of a change in Notice is hereby given of a change in Notice is hereby given of a change in the meeting of the Mechanisms of the meeting of the Psychosocial the meeting of the Center for Scientific Sensory, Perceptual, and Cognitive Development, Risk and Prevention Review Special Emphasis Panel, Processes Study Section, October 03, Study Section, October 3, 2013, 8:00 October 31, 2013, 8:00 a.m. to November 2013, 08:00 a.m. to October 04, 2013, a.m. to October 4, 2013, 6:00 p.m., 1, 2013, 1:00 p.m., One Washington 05:30 p.m., Melrose Hotel, 2430 Bethesda North Marriott Hotel & Circle Hotel, One Washington Circle, Pennsylvania Ave. NW., Washington, Conference Center, 5701 Marinelli Road, Washington, DC 20037 which was DC 20037 which was published in the Bethesda, MD 20852 which was published in the Federal Register on Federal Register on September 10, 2013, published in the Federal Register on October 22, 2013, 78 FR 204 Pg. 62641. 78 FR 55266–55267. September 9, 2013, 78 FR 174 Pgs. The meeting will start on November The meeting will be held at the Bahia 55086–55087. 22, 2013 at 8:00 a.m. and will end on Hotel, 998 W. Mission Bay Drive, San The meeting will be held at the Hotel November 22, 2013 at 6:00 p.m. The Diego, CA 92109 on November 8, 2013, Helix, 1430 Rhode Island Ave. NW., meeting location remains the same. The starting at 08:00 a.m. and ending at Washington, DC 20005. The meeting meeting is closed to the public. 06:00 p.m. The meeting is closed to the will start on December 5, 2013 at 8:00 Dated: October 24, 2013. public. a.m. and end on December 6, 2013 at Carolyn A. Baum, Dated: October 25, 2013. 5:00 p.m. The meeting is closed to the public. Program Analyst, Office of Federal Advisory Carolyn A. Baum, Committee Policy. Program Analyst, Office of Federal Advisory Dated: October 25, 2013. [FR Doc. 2013–25659 Filed 10–29–13; 8:45 am] Committee Policy. Anna Snouffer, BILLING CODE 4140–01–P [FR Doc. 2013–25683 Filed 10–29–13; 8:45 am] Deputy Director, Office of Federal Advisory BILLING CODE 4140–01–P Committee Policy. [FR Doc. 2013–25775 Filed 10–29–13; 8:45 am] DEPARTMENT OF HEALTH AND BILLING CODE 4140–01–P HUMAN SERVICES DEPARTMENT OF HEALTH AND HUMAN SERVICES National Institutes of Health DEPARTMENT OF HEALTH AND National Institutes of Health HUMAN SERVICES Center for Scientific Review; Amended Notice of Meeting Center for Scientific Review; Amended National Institutes of Health Notice of Meeting Notice is hereby given of a change in Center for Scientific Review; Amended the meeting of the Center for Scientific Notice is hereby given of a change in Notice of Meeting Review Special Emphasis Panel, the meeting of the Biophysics of Neural October 11, 2013, 1:00 p.m. to October Systems Study Section, October 3, 2013, Notice is hereby given of a change in 11, 2013, 6:00 p.m., National Institutes 8:00 a.m. to October 3, 2013, 7:00 p.m., the meeting of the Hypertension and of Health, 6701 Rockledge Drive, Hotel Monaco, 2 North Charles Street, Microcirculation Study Section, October Bethesda, MD 20892 which was Baltimore, MD 21201 which was 10, 2013, 08:00 a.m. to October 10, 2013, published in the Federal Register on published in the Federal Register on 07:30 p.m., Washington Hilton Hotel, September 18, 2013, 78 FR 181 Pg. September 9, 2013, 78 FR 174 pgs. 1919 Connecticut Ave. NW., 57400. 55086–55087. Washington, DC 20009 which was The meeting will start on November The meeting will start on November published in the Federal Register on 19, 2013 at 11:00 a.m. and will end on 20, 2013 at 8:00 a.m. and will end on September 17, 2013, 78 FR 180 Pgs. November 19, 2013 at 5:00 p.m. The November 20, 2013 at 7:00 p.m. The 57168–57169. meeting location remains the same. The meeting location remains the same. The The meeting will start on December meeting is closed to the public. meeting is closed to the public. 19, 2013 at 7:30 a.m. and end on Dated: October 24, 2013. December 19, 2013 at 8:00 p.m. The Dated: October 24, 2013. Carolyn A. Baum, meeting location remains the same. The Carolyn A. Baum, meeting is closed to the public. Program Analyst, Office of Federal Advisory Program Analyst, Office of Federal Advisory Committee Policy. Committee Policy. Dated: October 25, 2013. [FR Doc. 2013–25657 Filed 10–29–13; 8:45 am] [FR Doc. 2013–25656 Filed 10–29–13; 8:45 am] Anna Snouffer, BILLING CODE 4140–01–P BILLING CODE 4140–01–P Deputy Director, Office of Federal Advisory Committee Policy. [FR Doc. 2013–25769 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES HUMAN SERVICES

National Institutes of Health National Institutes of Health National Institutes of Health

Center for Scientific Review; Amended National Institute of Allergy and Center for Scientific Review; Amended Notice of Meeting Infectious Diseases; Amended Notice Notice of Meeting of Meeting Notice is hereby given of a change in Notice is hereby given of a change in the meeting of the Molecular Genetics A Notice is hereby given of a change in the meeting of the Neural Basis of Study Section, October 21, 2013, 08:30 the meeting of the National Institute of Psychopathology, Addictions and Sleep a.m. to October 22, 2013, 01:30 p.m., Allergy and Infectious Diseases Special Disorders Study Section, October 02, Renaissance Washington DC, Dupont Emphasis Panel, October 21, 2013, 8:00 2013, 08:00 a.m. to October 03, 2013, Circle, 1143 New Hampshire Avenue a.m. to October 22, 2013, 4:00 p.m., 05:00 p.m., Amalfi Hotel, 20 West NW., Washington, DC 20037 which was Hilton Washington/Rockville, 1750 Kinzie Street, Chicago, IL 60654 which Rockville Pike, Regency Ballroom, published in the Federal Register on was published in the Federal Register Rockville, MD, 20852 which was September 26, 2013, 78 FR 187 Pgs. on September 16, 2013, 78 FR 179 Pgs. published in the Federal Register on 59361–59362. 56904–56905. September 27, 2013, 78 FR 59707. The meeting will start on November The meeting will be held at the Hyatt The meeting is amended to change the 17, 2013 at 8:30 a.m. and end on date of the meeting from Oct. 21–22, Regency Baltimore, 300 Light Street, November 17, 2013 at 7:30 p.m. The 2013 to Nov. 22, 2013 and Nov. 25, Baltimore, MD 21202. The meeting will meeting location remains the same. The 2013. Telephone Conference Call, start on November 20, 2013 at 8:00 a.m. meeting is closed to the public. National Institutes of Health, 6700B and end on November 21, 2013 at 5:00 Dated: October 25, 2013. Rockledge Dr., Bethesda, MD 20817 PM. The meeting is closed to the public. Anna Snouffer, from 8:00 a.m. to 5:00 p.m. The meeting Dated: October 25, 2013. is closed to the public. Deputy Director, Office of Federal Advisory Anna Snouffer, Committee Policy. Dated: October 25, 2013. Deputy Director, Office of Federal Advisory [FR Doc. 2013–25773 Filed 10–29–13; 8:45 am] David Clary, Committee Policy. BILLING CODE 4140–01–P Program Analyst, Office of Federal Advisory [FR Doc. 2013–25765 Filed 10–29–13; 8:45 am] Committee Policy. BILLING CODE 4140–01–P [FR Doc. 2013–25672 Filed 10–29–13; 8:45 am] DEPARTMENT OF HEALTH AND BILLING CODE 4140–01–P HUMAN SERVICES DEPARTMENT OF HEALTH AND HUMAN SERVICES National Institutes of Health DEPARTMENT OF HEALTH AND HUMAN SERVICES National Institutes of Health Center for Scientific Review; Amended Notice of Meeting National Institutes of Health Center for Scientific Review; Amended Notice of Meeting Notice is hereby given of a change in National Institute on Drug Abuse; the meeting of the Center for Scientific Amended Notice of Meeting Notice is hereby given of a change in Review Special Emphasis Panel, the meeting of the Pathobiology of October 22, 2013, 02:00 p.m. to October Notice is hereby given of a change in Kidney Disease Study Section, October 22, 2013, 05:00 p.m., National Institutes the meeting of the National Institute on 07, 2013, 08:00 a.m. to October 07, 2013, of Health, 6701 Rockledge Drive, Drug Abuse Special Emphasis Panel, 07:00 p.m., Residence Inn Bethesda, Bethesda, MD 20892 which was October 15, 2013, 9:00 a.m. to October 7335 Wisconsin Avenue, Bethesda, MD 15, 2013, 11:00 p.m., Hilton Garden Inn published in the Federal Register on 20814 which was published in the Washington DC/Bethesda, 7301 Waverly October 01, 2013, 78 FR 60295. Federal Register on September 10, 2013, Street, Bethesda, MD 21045 which was 78 FR 55268–55270. The meeting will be held on published in the Federal Register on December 10, 2013. The meeting time September 23, 2013, 78 184 FRN2013– The meeting will be held on and location remain the same. The 22992. November 18, 2013. The meeting time meeting is closed to the public. The date, time and location of the and location remain the same. The Dated: October 25, 2013. meeting are changed to November 13, meeting is closed to the public. Carolyn A. Baum, 2013, 10:30 a.m. to November 13, 2013, Dated: October 25, 2013. Program Analyst, Office of Federal Advisory 12:30 p.m., Hyatt Regency Bethesda, Anna Snouffer, Committee Policy. One Bethesda Metro Center, 7400 Deputy Director, Office of Federal Advisory [FR Doc. 2013–25679 Filed 10–29–13; 8:45 am] Wisconsin Avenue, Bethesda, MD Committee Policy. 20814. The meeting is closed to the [FR Doc. 2013–25760 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P public. BILLING CODE 4140–01–P Dated: October 25, 2013. Michelle Trout, Program Analyst, Office of Federal Advisory Committee Policy. [FR Doc. 2013–25748 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND This meeting notice is being published less HUMAN SERVICES HUMAN SERVICES than 15 days in advance of the meeting due to the Government shutdown of 2013. National Institutes of Health National Institutes of Health (Catalogue of Federal Domestic Assistance Program Nos. 93.306, Comparative Medicine; National Center for Complementary & Center for Scientific Review; Amended 93.333, Clinical Research, 93.306, 93.333, Alternative Medicine; Amended Notice Notice of Meeting 93.337, 93.393–93.396, 93.837–93.844, 93.846–93.878, 93.892, 93.893, National of Meeting Notice is hereby given of a change in Institutes of Health, HHS) the meeting of the Acute Neural Injury Notice is hereby given of a change in and Epilepsy Study Section, October 16, Dated: October 25, 2013. the meeting of the National Center for 2013, 08:00 a.m. to October 16, 2013, Anna Snouffer, Complementary and Alternative 06:30 p.m., Washington Plaza Hotel, 10 Deputy Director, Office of Federal Advisory Medicine Special Emphasis Panel, Thomas Circle, Washington, DC 20005 Committee Policy. October 16, 2013, 2:00 p.m. to October which was published in the Federal [FR Doc. 2013–25778 Filed 10–29–13; 8:45 am] 16, 2013, 6:00 p.m., National Institutes Register on September 17, 2013, 78 FR BILLING CODE 4140–01–P of Health, Two Democracy Plaza, 6707 180 Pgs. 57168–57169. Democracy Boulevard, Bethesda, MD The meeting will start on December 20892 which was published in the 11, 2013 at 8:00 a.m. and end on DEPARTMENT OF HEALTH AND Federal Register on September 12, 2013, December 11, 2013 at 6:00 p.m. The HUMAN SERVICES Vol. 78, No. 177. meeting location remains the same. The meeting is closed to the public. National Institutes of Health The meeting of the Special Emphasis Panel ZAT1 PK 28, PAR 10–163 R34, Dated: October 25, 2013. Center for Scientific Review; Amended will be held on November 19, 2013, Anna Snouffer, Notice of Meeting instead of October 16, 2013, at noon and Deputy Director, Office of Federal Advisory will end at 3:00 p.m. The meeting Committee Policy. Notice is hereby given of a change in location remains the same. The meeting [FR Doc. 2013–25770 Filed 10–29–13; 8:45 am] the meeting of the Center for Scientific Review Special Emphasis Panel, is closed to the public. BILLING CODE 4140–01–P October 8, 2013, 7:00 a.m. to October 8, Dated: October 24, 2013. 2013, 8:00 p.m., National Institutes of Michelle Trout, DEPARTMENT OF HEALTH AND Health, 6701 Rockledge Drive, Bethesda, Program Analyst, Office of Federal Advisory HUMAN SERVICES MD 20892 which was published in the Committee Policy. Federal Register on September 10, 2013, [FR Doc. 2013–25650 Filed 10–29–13; 8:45 am] National Institutes of Health 78 FR 175 pgs. 55268–55270. BILLING CODE 4140–01–P The meeting will start on November Center for Scientific Review; Notice of 21, 2013 at 7:00 a.m. and end on Closed Meeting November 22, 2013 at 8:00 p.m. The DEPARTMENT OF HEALTH AND Pursuant to section 10(d) of the location remains the same. The meeting HUMAN SERVICES Federal Advisory Committee Act, as is closed to the public. amended (5 U.S.C. App.), notice is Dated: October 24, 2013. National Institutes of Health hereby given of the following meeting. Carolyn A. Baum, The meeting will be closed to the Program Analyst, Office of Federal Advisory National Institute on Aging; Amended public in accordance with the Committee Policy. Notice of Meeting provisions set forth in sections [FR Doc. 2013–25651 Filed 10–29–13; 8:45 am] 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Notice is hereby given of a change in as amended. The grant applications and BILLING CODE 4140–01–P the meeting of the Behavior and Social the discussions could disclose Science of Aging Review Committee, confidential trade secrets or commercial DEPARTMENT OF HEALTH AND October 03, 2013, 04:30 p.m. to October property such as patentable material, HUMAN SERVICES 04, 2013, 02:00 p.m., Doubletree Hotel and personal information concerning Bethesda, 8120 Wisconsin Avenue, individuals associated with the grant National Institutes of Health Bethesda, MD 20814 which was applications, the disclosure of which published in the Federal Register on would constitute a clearly unwarranted Center for Scientific Review; Amended September 11, 2013, 78 FR 55752. invasion of personal privacy. Notice of Meeting The meeting has been changed to Name of Committee: Center for Scientific Notice is hereby given of a change in Review Special Emphasis Panel; Member the meeting of the Social Sciences and December 10, 2013, 03:00 p.m. to 07:00 Conflict: Cancer Prevention and Treatment p.m. and December 11, 2013, 09:00 a.m. Date: November 7, 2013. Population Studies B Study Section, to 07:00 p.m. This meeting is now a Time: 1:00 p.m. to 4:00 p.m. October 23, 2013, 08:00 a.m. to October teleconference. The meeting is closed to Agenda: To review and evaluate grant 23, 2013, 06:00 p.m., Embassy Suites the public. applications. Baltimore Downtown, 222 St. Paul Place: National Institutes of Health, 6701 Place, Baltimore, MD, 21202 which was Dated: October 25, 2013. Rockledge Drive, Bethesda, MD 20892, published in the Federal Register on David Clary, (Telephone Conference Call). October 01, 2013, 78 FR 190 Pgs. 60294– Program Analyst, Office of Federal Advisory Contact Person: Lawrence Ka-Yun Ng, 60296. PhD., Scientific Review Officer, Center for Committee Policy. Scientific Review, National Institutes of The meeting will be held at National [FR Doc. 2013–25746 Filed 10–29–13; 8:45 am] Health, 6701 Rockledge Drive, Room 6152, Institutes of Health, 6701 Rockledge Dr., BILLING CODE 4140–01–P MSC 7804, Bethesda, MD 20892, 301–435– Bethesda, MD 20892. The meeting will 1719, [email protected]. start on December 18 at 08:30 a.m. and

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end on December 18, 2013 at 5:00 p.m. would constitute a clearly unwarranted Dated: October 24, 2013. The meeting is closed to the public. invasion of personal privacy. Carolyn A. Baum, Dated: October 25, 2013. Name of Committee: Scientific and Program Analyst, Office of Federal Advisory Anna Snouffer, Technical Review Board on Biomedical and Committee Policy. Deputy Director, Office of Federal Advisory Behavioral Research Facilities. [FR Doc. 2013–25661 Filed 10–29–13; 8:45 am] Committee Policy. Date: November 12–13, 2013. BILLING CODE 4140–01–P [FR Doc. 2013–25771 Filed 10–29–13; 8:45 am] Time: 8:00 a.m. to 5:00 p.m. Agenda: To review and evaluate grant BILLING CODE 4140–01–P applications. DEPARTMENT OF HEALTH AND Place: National Institutes of Health, 6706 HUMAN SERVICES DEPARTMENT OF HEALTH AND Democracy Blvd., Bethesda, MD 20892, National Institutes of Health HUMAN SERVICES (Virtual Meeting). Contact Person: Barbara J. Nelson, Ph.D., National Institutes of Health Scientific Review Officer, Office of Grants Center for Scientific Review; Amended Management & Scientific Review, National Notice of Meeting National Institute of Allergy and Center for Advancing Translational Sciences Infectious Diseases; Amended Notice (NCATS), National Institutes of Health, 6701 Notice is hereby given of a change in of Meeting Democracy Blvd., Room 1080, 1 Dem. Plaza, the meeting of the Clinical Neuroscience Bethesda, MD 20892–4874, 301–435–0806, and Neurodegeneration Study Section, Notice is hereby given of a change in [email protected]. October 10, 2013, 08:00 a.m. to October the meeting of the National Institute of This meeting notice is being published less 10, 2013, 06:00 p.m., National Institutes Allergy and Infectious Diseases Special than 15 days in advance of the meeting due of Health, 6701 Rockledge Drive, Emphasis Panel, October 23, 2013, 08:00 to the Government shutdown of October Bethesda, MD 20892 which was a.m. to October 24, 2013, 06:00 p.m., 2013. published in the Federal Register on Hyatt Regency Bethesda, One Bethesda (Catalogue of Federal Domestic Assistance September 12, 2013, 78 FR 177 Pg. Metro Center, 7400 Wisconsin Avenue, Program Nos. 93.14, Intramural Research 56239. Bethesda, MD 20814 which was Training Award; 93.22, Clinical Research The meeting will start on December published in the Federal Register on Loan Repayment Program for Individuals 13, 2013 at 9:00 a.m. and end December October 01, 2013, 78 FR 60294. from Disadvantaged Backgrounds; 93.232, 13, 2013 at 6:00 p.m. The meeting The meeting notice is amended to Loan Repayment Program for Research location remains the same. The meeting change the date of the meeting from Oct. Generally; 93.39, Academic Research is closed to the public. Enhancement Award; 93.936, NIH Acquired 23–24, 2013 to Nov. 12–13, 2013, from Dated: October 25, 2013. the Hyatt Regency Hotel to the Sheraton Immunodeficiency Syndrome Research Loan Repayment Program; 93.187, Undergraduate Anna Snouffer, Silver Spring Hotel, 8777 Georgia Scholarship Program for Individuals from Avenue, Silver Spring, MD 20910. The Deputy Director, Office of Federal Advisory Disadvantaged Backgrounds, National Committee Policy. meeting is closed to the public. Institutes of Health, HHS) [FR Doc. 2013–25767 Filed 10–29–13; 8:45 am] Dated: October 25, 2013. Dated: October 25, 2013. BILLING CODE 4140–01–P David Clary, David Clary, Program Analyst, Office of Federal Advisory Committee Policy. Program Analyst, Office of Federal Advisory DEPARTMENT OF HEALTH AND Committee Policy. [FR Doc. 2013–25673 Filed 10–29–13; 8:45 am] HUMAN SERVICES [FR Doc. 2013–25750 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P BILLING CODE 4140–01–P National Institutes of Health

DEPARTMENT OF HEALTH AND Center for Scientific Review; Amended HUMAN SERVICES DEPARTMENT OF HEALTH AND Notice of Meeting HUMAN SERVICES National Institutes of Health Notice is hereby given of a change in National Institutes of Health the meeting of the Skeletal Biology Office of the Director, National Structure and Regeneration Study Institutes of Health; Notice of Closed Center for Scientific Review; Amended Section, October 8, 2013, 8:00 a.m. to Meeting Notice of Meeting October 9, 2013, 5:30 p.m., Admiral Fell Inn, 888 South Broadway, Baltimore, Pursuant to section 10(d) of the Notice is hereby given of a change in MD 21231 which was published in the Federal Advisory Committee Act, as the meeting of the Host Interactions Federal Register on October 3, 2013, 78 amended (5 U.S.C. App.), notice is with Bacterial Pathogens Study Section, FR 192 Pgs. 61376–61377. hereby given of the following meeting. October 18, 2013, 8:00 a.m. to October The meeting will start on November The meeting will be closed to the 18, 2013, 6:00 p.m., Hyatt Regency Bethesda, One Bethesda Metro Center, 19, 2013 at 7:30 a.m. and will end on public in accordance with the November 19, 2013 at 7:30 p.m. The provisions set forth in sections 7400 Wisconsin Avenue, Bethesda, MD 20814 which was published in the meeting location remains the same. The 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., meeting is closed to the public. as amended. The grant applications and Federal Register on September 24, 2013, the discussions could disclose 78 FR 185 Pgs. 58547–58548. Dated: October 24, 2013. confidential trade secrets or commercial The meeting will start on November Carolyn A. Baum, property such as patentable material, 15, 2013 at 8:00 a.m. and will end on Program Analyst, Office of Federal Advisory and personal information concerning November 15, 2013 at 6:30 p.m. The Committee Policy. individuals associated with the grant meeting location remains the same. The [FR Doc. 2013–25658 Filed 10–29–13; 8:45 am] applications, the disclosure of which meeting is closed to the public. BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES HUMAN SERVICES

National Institutes of Health National Institutes of Health National Institutes of Health

Center for Scientific Review; Amended Center for Scientific Review; Amended Center for Scientific Review; Amended Notice of Meeting Notice of Meeting Notice of Meeting

Notice is hereby given of a change in Notice is hereby given of a change in Notice is hereby given of a change in the meeting of the Skeletal Muscle and the meeting of the Lung Injury, Repair, the meeting of the Center for Scientific Exercise Physiology Study Section, and Remodeling Study Section, October Review Special Emphasis Panel, October 10, 2013, 8:00 a.m. to October 7, 2013, 8:00 a.m. to October 7, 2013, October 21, 2013, 7:30 a.m. to October 11, 2013, 5:00 p.m., Residence Inn 6:30 p.m., Hyatt Regency Bethesda, One 21, 2013, 6:00 p.m., Hilton Long Beach Washington DC, 1199 Vermont Avenue Bethesda Metro Center, 7400 Wisconsin and Executive Center, 701 West Ocean NW., Washington, DC 20005 which was Avenue, Bethesda, MD 20814 which Boulevard, Long Beach, CA 90831 published in the Federal Register on was published in the Federal Register which was published in the Federal September 11, 2013, 78 FR 55753. on September 10, 2013, 78 FR 175 pgs. Register on October 1, 2013, 78 FR 190 The meeting will be held at the 55268–55270. Pgs. 60294–60296. Virginian Suites Arlington, 1500 The meeting will be held at the The meeting will be held at the Arlington Blvd., Arlington, VA 22209. National Institutes of Health, 6701 Embassy Suites at Chevy Chase The meeting will start on November 11, Rockledge Dr., Bethesda, MD 20892. Pavilion, 4300 Military Rd. NW., 2013 at 8:00 a.m. and end on November The meeting will start on November 01, Washington, DC 20015. The meeting 12, 2013 at 1:00 p.m. The meeting is 2013 at 9:00 a.m. and will end on will start on December 13, 2013 at 7:30 closed to the public. November 03, 2013 at 5:00 p.m. The a.m. and end on December 13, 2013 at Dated: October 25, 2013. meeting is closed to the public. 6:00 p.m. The meeting is closed to the public. Carolyn A. Baum, Dated: October 24, 2013. Program Analyst, Office of Federal Advisory Carolyn A. Baum, Dated: October 25, 2013. Committee Policy. Program Analyst, Office of Federal Advisory Anna Snouffer, [FR Doc. 2013–25678 Filed 10–29–13; 8:45 am] Committee Policy. Deputy Director, Office of Federal Advisory BILLING CODE 4140–01–P [FR Doc. 2013–25653 Filed 10–29–13; 8:45 am] Committee Policy. BILLING CODE 4140–01–P [FR Doc. 2013–25776 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES DEPARTMENT OF HEALTH AND HUMAN SERVICES DEPARTMENT OF HEALTH AND National Institutes of Health HUMAN SERVICES National Institutes of Health National Institute on Drug Abuse; National Institutes of Health Amended Notice of Meeting Center for Scientific Review; Amended Notice of Meeting Center for Scientific Review; Amended Notice is hereby given of a change in Notice of Meeting the meeting of the National Institute on Notice is hereby given of a change in Drug Abuse Special Emphasis Panel, the meeting of the Infectious Diseases, Notice is hereby given of a change in October 16, 2013, 08:00 a.m. to October Reproductive Health, Asthma and the meeting of the Macromolecular 16, 2013, 05:00 p.m., National Institutes Pulmonary Conditions Study Section, Structure and Function B Study Section, of Health, Neuroscience Center, 6001 October 7, 2013, 8:00 a.m. to October 8, October 17, 2013, 8:00 a.m. to October Executive Boulevard, Rockville, MD 2013, 3:00 p.m., Hilton Old Town 17, 2013, 7:00 p.m., Amalfi Hotel, 20 20852 which was published in the Alexandria, Alexandria, VA 22314 West Kinzie Street, Chicago, IL 60654 Federal Register on September 17, 2013, which was published in the Federal which was published in the Federal 79 180 FRN2013–22502. Register on September 11, 2013, 78 FR Register on September 23, 2013, 78 FR The date, time and location of the 176 Pgs. 55752–55753. 184 pgs. 58323–58324. meeting are changed to November 21, The meeting will be held at the The meeting will be held at the 2013, 9:00 a.m. to November 21, 2013, National Institutes of Health, 6701 National Institutes of Health, 6701 6:00 p.m., Hyatt Regency Bethesda, One Rockledge Dr., Bethesda, MD 20892. Rockledge Dr., Bethesda, MD 20892. Bethesda Metro Center, 7400 Wisconsin The meeting will start on December 17, The meeting will start on December 04, Avenue, Bethesda, MD 20814. The 2013 at 8:00 a.m. and end on December 2013 at 9:30 a.m. and will end on meeting is closed to the public. 18, 2013 at 5:00 p.m. The meeting is December 04, 2013 at 7:30 p.m. The Dated: October 25, 2013. closed to the public. meeting is closed to the public. Michelle Trout, Dated: October 25, 2013. Dated: October 24, 2013. Program Analyst, Office of Federal Advisory Anna Snouffer, Carolyn A. Baum, Committee Policy. Deputy Director, Office of Federal Advisory Program Analyst, Office of Federal Advisory [FR Doc. 2013–25751 Filed 10–29–13; 8:45 am] Committee Policy. Committee Policy. BILLING CODE 4140–01–P [FR Doc. 2013–25766 Filed 10–29–13; 8:45 am] [FR Doc. 2013–25655 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES HUMAN SERVICES

National Institutes of Health National Institutes of Health National Institutes of Health

National Institute of Biomedical Center for Scientific Review; Amended Center for Scientific Review; Amended Imaging and Bioengineering; Amended Notice of Meeting Notice of Meeting Notice of Meeting Notice is hereby given of a change in Notice is hereby given of a change in Notice is hereby given of a change in the meeting of the Adult the meeting of the Risk, Prevention and the meeting of the National Institute of Psychopathology and Disorders of Aging Intervention for Addictions Study Biomedical Imaging and Bioengineering Study Section, October 17, 2013, 08:00 Section, October 03, 2013, 08:00 a.m. to Special Emphasis Panel, October 10–11, a.m. to October 18, 2013, 05:00 p.m., October 04, 2013, 05:30 p.m., 2013, 03:00 p.m.–06:00 p.m., National Crystal City Marriott, 1999 Jefferson Renaissance Mayflower Hotel, 1127 Institutes of Health, Two Democracy Davis Highway, Arlington, VA 22202 Connecticut Avenue NW., Washington, Plaza, Suite 920, 6707 Democracy which was published in the Federal DC 20036 which was published in the Boulevard, Bethesda, MD 20892, which Register on September 23, 2013, 78 FR Federal Register on September 09, 2013, was published in the Federal Register 58324. 78 FR 55086–55087. on July 18, 2013, 78 FR 42970. The meeting will be held at the The meeting will be held on The meeting notice is amended to National Institutes of Health, 6701 December 9, 2013, 8:00 a.m. to 7:00 p.m. change the date from October 10–11, Rockledge Drive, Bethesda, MD 20892. The meeting location remains the same. 2013, to November 26, 2013 at 10:00 The meeting will start on December 4, The meeting is closed to the public. a.m. to 06:00 p.m. The meeting is closed 2013 at 09:00 a.m. and end on December Dated: October 25, 2013. to the public. 5, 2013 at 03:00 p.m. The meeting is Anna Snouffer, closed to the public. Dated: October 25, 2013. Deputy Director, Office of Federal Advisory David Clary, Dated: October 25, 2013. Committee Policy. Program Analyst, Office of Federal Advisory Carolyn A. Baum, [FR Doc. 2013–25764 Filed 10–29–13; 8:45 am] Committee Policy. Program Analyst, Office of Federal Advisory BILLING CODE 4140–01–P [FR Doc. 2013–25674 Filed 10–29–13; 8:45 am] Committee Policy. BILLING CODE 4140–01–P [FR Doc. 2013–25676 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES DEPARTMENT OF HEALTH AND HUMAN SERVICES DEPARTMENT OF HEALTH AND National Institutes of Health HUMAN SERVICES National Institutes of Health National Institute on Drug Abuse; National Institutes of Health Amended Notice of Meeting National Institute on Drug Abuse; Amended Notice of Meeting Center for Scientific Review; Amended Notice is hereby given of a change in Notice of Meeting the meeting of the National Institute on Notice is hereby given of a change in Drug Abuse Special Emphasis Panel, the meeting of the National Institute on Notice is hereby given of a change in October 15, 2013, 11:00 a.m. to October Drug Abuse Special Emphasis Panel, the meeting of the Center for Scientific 15, 2013, 2:00 p.m., Hilton Garden Inn October 17, 2013, 08:00 a.m. to October Review Special Emphasis Panel, Washington DC/Bethesda, 7301 Waverly 17, 2013, 05:00 p.m., National Institutes October 22, 2013, 9:00 a.m. to October Street, Bethesda, MD 21045 which was of Health, Neuroscience Center, 6001 23, 2013, 6:00 p.m., National Institutes published in the Federal Register on Executive Boulevard, Rockville, MD, of Health, 6701 Rockledge Drive, September 23, 2013, 78 184 FRN2013– 20852 which was published in the Bethesda, MD 20892 which was 22992. Federal Register on September 17, 2013, published in the Federal Register on The date, time and location of the 78 180 FRN2013–22502. October 1, 2013, 78 FR 60295. meeting are changed to November 13, The date, time and the location of the The meeting will start on December 2013, 9:00 a.m. to November 13, 2013, meeting are changed to November 22, 10, 2013 and end on December 11, 2013. 10:15 a.m., Hyatt Regency Bethesda, 2013, 8:30 a.m. to November 22, 2013, The meeting time and location remain One Bethesda Metro Center, 7400 3:00 p.m., Hyatt Regency Bethesda, One the same. The meeting is closed to the Wisconsin Avenue, Bethesda, MD Bethesda Metro Center, 7400 Wisconsin public. 20814. The meeting is closed to the Avenue, Bethesda, MD 20814. The Dated: October 25, 2013. public. meeting is closed to the public. Carolyn A. Baum, Dated: October 25, 2013. Dated: October 25, 2013. Program Analyst, Office of Federal Advisory Michelle Trout, Michelle Trout, Committee Policy. Program Analyst, Office of Federal Advisory Program Analyst, Office of Federal Advisory [FR Doc. 2013–25680 Filed 10–29–13; 8:45 am] Committee Policy. Committee Policy. BILLING CODE 4140–01–P [FR Doc. 2013–25747 Filed 10–29–13; 8:45 am] [FR Doc. 2013–25752 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES HUMAN SERVICES

National Institutes of Health National Institutes of Health National Institutes of Health

Center for Scientific Review; Amended Center for Scientific Review; Amended Center for Scientific Review; Amended Notice of Meeting Notice of Meeting Notice of Meeting

Notice is hereby given of a change in Notice is hereby given of a change in Notice is hereby given of a change in the meeting of the Integrative Nutrition the meeting of the Neurobiology of the meeting of the Hypersensitivity, and Metabolic Processes Study Section, Motivated Behavior Study Section, Autoimmune, and Immune-mediated October 10, 2013, 08:00 a.m. to October October 14, 2013, 08:00 a.m. to October Diseases Study Section, October 3, 2013, 10, 2013, 06:00 p.m., Doubletree Hotel 15, 2013, 01:00 p.m., Pier 5 Hotel, 711 8:00 a.m. to October 4, 2013, 5:00 p.m., Bethesda, (Formerly Holiday Inn Eastern Avenue, Baltimore, MD 21202 Crystal City Marriott, 1999 Jefferson Select), 8120 Wisconsin Avenue, which was published in the Federal Davis Highway, Arlington, VA 22202 Bethesda, MD 20814 which was Register on September 16, 2013, 78 FR which was published in the Federal published in the Federal Register on 179 Pgs. 56904–56905. Register on September 9, 2013, 78 FR September 12, 2013, 78 FR 194563. The meeting will start on December 2, 55086. The meeting will be held at the 2013 at 8:00 a.m. and end on December The meeting will start on November National Institutes of Health, 6701 3, 2013 at 1:00 p.m. The meeting 14, 2013 and end on November 15, Rockledge Drive, Bethesda, MD 20892 location remains the same. The meeting 2013. The time and location remain the on December 16, 2013, starting at 09:00 is closed to the public. same. The meeting is closed to the a.m. and ending at 07:00 p.m. The Dated: October 25, 2013. public. meeting is closed to the public. Anna Snouffer, Dated: October 25, 2013. Dated: October 25, 2013. Deputy Director, Office of Federal Advisory Carolyn A. Baum, Carolyn A. Baum, Committee Policy. Program Analyst, Office of Federal Advisory Program Analyst, Office of Federal Advisory [FR Doc. 2013–25768 Filed 10–29–13; 8:45 am] Committee Policy. Committee Policy. BILLING CODE 4140–01–P [FR Doc. 2013–25682 Filed 10–29–13; 8:45 am] [FR Doc. 2013–25675 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P BILLING CODE 4140–01–P DEPARTMENT OF HEALTH AND HUMAN SERVICES DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND HUMAN SERVICES HUMAN SERVICES National Institutes of Health National Institutes of Health National Institutes of Health Center for Scientific Review; Amended Notice of Meeting Center for Scientific Review; Amended Center for Scientific Review; Amended Notice of Meeting Notice of Meeting Notice is hereby given of a change in the meeting of the Vector Biology Study Notice is hereby given of a change in Notice is hereby given of a change in Section, October 09, 2013, 8:30 a.m. to the meeting of the Cognition and the meeting of the Cellular Aspects of October 09, 2013, 06:00 p.m., The River Perception Study Section, October 10, Diabetes and Obesity Study Section, Inn, 924 25th Street NW., Washington, 2013, 8:00 a.m. to October 11, 2013, 5:00 October 17, 2013, 08:00 a.m. to October DC 20037 which was published in the p.m., Churchill Hotel, 1914 Connecticut 17, 2013, 05:00 p.m., Hilton Garden Inn Federal Register on September 10, 2013, Avenue NW., Washington, DC 20009 Bethesda, 7301 Waverly Street, 78 FR 175 Pgs. 55266–55267. which was published in the Federal Bethesda, MD 20814 which was The meeting will be held at National Register on September 11, 2013, 78 FR published in the Federal Register on Institutes of Health, 6701 Rockledge Dr., 176 Pgs. 55752–55753. September 23, 2013, 78 FR 58323– Bethesda, MD 20892. The meeting will The meeting will be held at the 58324. start on November 23, 2013 at 10:00 Renaissance Washington, 999 Ninth St. The meeting will be held at the a.m. and end on November 23, 2013 at NW., Washington, DC 20001. The National Institutes of Health, 6701 6:00 p.m. The meeting is closed to the meeting will start on December 5, 2013 Rockledge Drive, Bethesda, MD 20892 public. at 8:30 a.m. and will end on December on December 13, 2013. The meeting will Dated: October 25, 2013. 6, 2013 at 5:00 p.m. The meeting is start at 9:00 a.m. and end at 5:00 p.m. closed to the public. Anna Snouffer, The meeting is closed to the public. Deputy Director, Office of Federal Advisory Dated: October 24, 2013. Dated: October 25, 2013. Committee Policy. Carolyn A. Baum, Anna Snouffer, [FR Doc. 2013–25777 Filed 10–29–13; 8:45 am] Program Analyst, Office of Federal Advisory Deputy Director, Office of Federal Advisory BILLING CODE 4140–01–P Committee Policy. Committee Policy. [FR Doc. 2013–25649 Filed 10–29–13; 8:45 am] [FR Doc. 2013–25763 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P BILLING CODE 4140–01–P

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DEPARTMENT OF HEALTH AND DEPARTMENT OF HEALTH AND DEPARTMENT OF HOMELAND HUMAN SERVICES HUMAN SERVICES SECURITY

National Institutes of Health National Institutes of Health U.S. Customs and Border Protection [Docket No. USCBP–2013–0041] Center for Scientific Review; Amended Center for Scientific Review; Amended Notice of Meeting Notice of Meeting Advisory Committee on Commercial Operations of Customs and Border Notice is hereby given of a change in Notice is hereby given of a change in Protection (COAC) the meeting of the Genomics, the meeting of the Center for Scientific Computational Biology and Technology Review Special Emphasis Panel, AGENCY: U.S. Customs and Border Study Section, October 16, 2013, 8:30 October 22, 2013, 02:00 p.m. to October Protection, Department of Homeland a.m. to October 17, 2013, 1:00 p.m., 22, 2013, 04:00 p.m., National Institutes Security (DHS). Avenue Hotel Chicago, 160 E. Huron of Health, 6701 Rockledge Drive, ACTION: Committee Management; Notice Street, Chicago, IL 60611 which was Bethesda, MD 20892 which was of Federal Advisory Committee Meeting. published in the Federal Register on published in the Federal Register on SUMMARY: The Advisory Committee on September 17, 2013, 78 FR 180 Pgs. October 01, 2013, 78 FR 190 Pgs. 60294– Commercial Operations of Customs and 57168–57169. 60296. Border Protection (COAC) will meet on The meeting will start on December The meeting will start on December November 15, 2013, in Washington, DC. 18, 2013 at 8:30 a.m. and will end on 11, 2013 at 01:00 p.m. and end on The meeting will be open to the public. December 19, 2013 at 3:00 p.m. The December 11, 2013 at 3:00 p.m. DATES: COAC will meet on Friday, meeting location remains the same. The The meeting location remains the November 15, from 1:00 p.m. to 5:00 meeting is closed to the public. same. The meeting is closed to the p.m. EST. Please note that the meeting Dated: October 24, 2013. public. may close early if the committee has completed its business. Carolyn A. Baum, Dated: October 25, 2013. Pre-Registration: Meeting participants Program Analyst, Office of Federal Advisory Anna Snouffer, may attend either in person or via Committee Policy. Deputy Director, Office of Federal Advisory webinar after pre-registering using a [FR Doc. 2013–25660 Filed 10–29–13; 8:45 am] Committee Policy. method indicated below: BILLING CODE 4140–01–P [FR Doc. 2013–25779 Filed 10–29–13; 8:45 am] —For members of the public who plan BILLING CODE 4140–01–P to attend the meeting in person, please register either online at DEPARTMENT OF HEALTH AND https://apps.cbp.gov/te_reg/ HUMAN SERVICES DEPARTMENT OF HEALTH AND index.asp?w=12; by email to HUMAN SERVICES [email protected]; or by fax to National Institutes of Health 202–325–4290 by 5:00 p.m. EST on National Institutes of Health Center for Scientific Review; Amended November 13, 2013. —For members of the public who plan Notice of Meeting Center for Scientific Review; Amended to participate via webinar, please Notice of Meeting register online at https:// Notice is hereby given of a change in apps.cbp.gov/te_reg/index.asp?w=13 the meeting of the Clinical and Notice is hereby given of a change in by 5:00 p.m. EST on November 13, Integrative Diabetes and Obesity Study the meeting of the Cardiovascular 2013. Section, October 10, 2013, 8:00 a.m. to Differentiation and Development Study October 10, 2013, 5:00 p.m., The Feel free to share this information Section, October 09, 2013, 08:00 a.m. to with other interested members of your Allerton Hotel, 701 North Michigan October 09, 2013, 06:00 p.m., Hyatt organization or association. Avenue, Chicago, IL 60611 which was Regency Bethesda, One Bethesda Metro Members of the public who are pre- published in the Federal Register on Center, 7400 Wisconsin Avenue, registered and later require cancellation, September 11, 2013, 78 FR 176 pgs. Bethesda, MD 20814 which was please do so in advance of the meeting 55752–55753. published in the Federal Register on by accessing one (1) of the following The meeting will be held at the September 10, 2013, 78 FR 55267. links: https://apps.cbp.gov/te_reg/ National Institutes of Health, 6701 The meeting will be held on cancel.asp?w=12 to cancel an in person _ Rockledge Dr., Bethesda, MD 20892. December 10, 2013 from 08:00 p.m. to registration, or https://apps.cbp.gov/te The meeting will start on December 18, 06:00 p.m. The meeting location reg/cancel.asp?w=13 to cancel a 2013 at 7:00 a.m. and will end on remains the same. The meeting is closed webinar registration. December 19, 2013 at 7:00 p.m. The to the public. ADDRESSES: The meeting will be held at meeting is closed to the public. the U.S. International Trade Dated: October 25, 2013. Dated: October 24, 2013. Commission (USITC) in Main Hearing Carolyn A. Baum, Room 101, 500 E Street SW., Carolyn A. Baum, Program Analyst, Office of Federal Advisory Washington, DC 20436. All visitors to Program Analyst, Office of Federal Advisory Committee Policy. the USITC Building must show a state- Committee Policy. [FR Doc. 2013–25684 Filed 10–29–13; 8:45 am] issued ID or Passport to proceed through [FR Doc. 2013–25654 Filed 10–29–13; 8:45 am] BILLING CODE 4140–01–P the security checkpoint for admittance BILLING CODE 4140–01–P to the building. For information on facilities or services for individuals with disabilities or to request special assistance at the

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meeting, contact Ms. Wanda Tate, Office and the Commissioner of U.S. Customs Dated: October 24, 2013. of Trade Relations, U.S. Customs and and Border Protection (CBP) on matters Maria Luisa Boyce, Border Protection at 202–344–1661 as pertaining to the commercial operations Senior Advisor for Private Sector Engagement, soon as possible. of CBP and related functions within Office of Trade Relations. To facilitate public participation, we DHS and the Department of the [FR Doc. 2013–25705 Filed 10–29–13; 8:45 am] are inviting public comment on the Treasury. BILLING CODE 9111–14–P issues to be considered by the Agenda committee prior to the formulation of recommendations as listed in the The COAC will hear from the DEPARTMENT OF THE INTERIOR ‘‘Agenda’’ section below. following project leaders and Comments must be submitted in subcommittees on the topics listed Fish and Wildlife Service writing no later than November 7, 2013, below and then will review, deliberate, and must be identified by Docket No. [FWS–R1–R–2013–N095; 1265–0000–10137 provide observations, and formulate S3] USCBP–2013–0041, and may be recommendations on how to proceed on submitted by one of the following those topics: Tualatin River National Wildlife Refuge, methods: 1. The One U.S. Government at the Washington and Yamhill Counties, OR; • Federal eRulemaking Portal: http:// Border Subcommittee: Review and Final Comprehensive Conservation www.regulations.gov. Follow the discuss recommendations from the Food Plan and Finding of No Significant instructions for submitting comments. Impact for Environmental Assessment • Email: [email protected]. and Drug Administration (FDA) Include the docket number in the Working Group, review and discuss an AGENCY: Fish and Wildlife Service, subject line of the message. update on the progress of the Interior. Environmental Protection Agency (EPA) • Fax: 202–325–4290. ACTION: Notice of availability. • Mail: Ms. Wanda Tate, Office of Working Group, and review and discuss Trade Relations, U.S. Customs and a case study regarding the Partner SUMMARY: We, the U.S. Fish and Border Protection, 1300 Pennsylvania Government Agency—Message Set Wildlife Service (Service), announce the Avenue NW., Room 3.5A, Washington, (PGA–MS). availability of the Tualatin River DC 20229. 2. The Global Supply Chain National Wildlife Refuge (refuge) final Instructions: All submissions received Subcommittee: Review and discuss comprehensive conservation plan (CCP). must include the words ‘‘Department of recommendations regarding the Air The CCP includes our finding of no Homeland Security’’ and the docket Cargo Advance Screening (ACAS) pilot significant impact (FONSI) for the number for this action. Comments and address the next steps regarding associated environmental assessment received will be posted without land border issues in the area of Beyond (EA). In this final CCP, we describe how alteration at http://www.regulations.gov, the Border and 21st Century Initiatives. we will manage the refuge for the next including any personal information 3. The Trade Modernization 15 years. provided. Do not submit personal Subcommittee: Review and discuss ADDRESSES: You may view or request a information to this docket. recommendations addressing the printed or CD–ROM copy of the final Docket: For access to the docket to Automated Commercial Environment CCP and FONSI by any of the following read background documents or (ACE) Development and Deployment methods. comments received by the COAC, go to Schedule and recommendations of the Web site: Download the CCP at: http://www.regulations.gov. Follow the Role of the Broker Work Group. www.fws.gov/tualatinriver/ instructions for submitting comments. refugeplanning.htm. 4. COAC Survey Team: Review and There will be multiple public Email: FW1PlanningComments@ Discuss Preliminary Results of the comment periods held during the fws.gov. Include ‘‘Tualatin River NWR COAC 2013 Annual Trade Efficiency meeting on November 15, 2013. CCP/EA’’ in the subject line. Survey and discuss feedback on past Speakers are requested to limit their Fax: Attn: Erin Holmes, Project COAC recommendations. comments to two (2) minutes or less to Leader, (503) 625–5947. facilitate greater participation. Contact 5. The Trusted Trader Subcommittee: U.S. Mail: Erin Holmes, Project the individual listed below to register as Review and discuss the Customs-Trade Leader, Tualatin River National Wildlife a speaker. Please note that the public Partnership Against Terrorism C–TPAT Refuge, 19255 SW Pacific Highway, comment period for speakers may end criteria for exporters. Sherwood, OR 97140. before the time indicated on the 6. The Trade Enforcement and In-Person Viewing or Pickup: Tualatin schedule that is posted on the CBP Web Revenue Collection Subcommittee: River National Wildlife Refuge, 19255 page, http://www.cbp.gov/xp/cgov/ Review and discuss the work completed SW Pacific Highway, Sherwood, OR trade/trade_outreach/coac/coac_13_ to date on the Regulatory Audit Working 97140. meetings/, at the time of the meeting. Group’s findings on the planned FOR FURTHER INFORMATION CONTACT: Erin FOR FURTHER INFORMATION CONTACT: Ms. enhancements for the Focused Holmes, Project Leader, (503) 625–5944. Wanda Tate, Office of Trade Relations, Assessment process and the Intellectual SUPPLEMENTARY INFORMATION: U.S. Customs and Border Protection, Property Rights Working Group’s effort 1300 Pennsylvania Avenue NW., Room to further evaluate the use of the Global Introduction 3.5A, Washington, DC 20229; telephone Shipment Identification Number (GSIN) With this notice, we finalize the CCP 202–344–1440; facsimile 202–325–4290. as a possible tool for use in Distribution process for the refuge. The Service SUPPLEMENTARY INFORMATION: Notice of Chain Management in Intellectual began this process by publishing a this meeting is given under the Federal Property Rights Compliance. notice of intent in the Federal Register Advisory Committee Act, 5 U.S.C. App. 7. The Export Subcommittee: Review (77 FR 25676; November 3, 2010). We (Pub. L. 92–463). The COAC provides and discuss subcommittee also released the draft CCP/EA to the advice to the Secretary of Homeland recommendations and the analysis of public through the Federal Register, Security, the Secretary of the Treasury, the 2013 COAC Export Survey Results. announcing a 30-day public comment

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period in a notice of availability (77 FR descriptions of key management actions DEPARTMENT OF THE INTERIOR 64538; October 22, 2012). described in Alternative 2 follow: The refuge encompasses D We will combine the existing Fish and Wildlife Service approximately 2,217 acres in Oregon’s fragmented habitats into larger [FWS–HQ–R–2013–N233; northern Willamette Valley, with contiguous blocks of native habitat FXRS12650900000–145–FF09R20000] herbaceous and scrub-shrub wetlands, types, and restore relic or disappearing and wet prairie, oak savanna, woodland, habitats. New Deadlines for Public Comment on mixed deciduous forest, riparian forest, D Using hydrological modeling, and Draft Environmental Documents riverine, and stream habitats. historic vegetation and soil information, we will restore and increase riparian AGENCY: Fish and Wildlife Service, We announce our decision and the Interior. availability of the FONSI for the final forest acreage and mixed forest acreage over the next 15 years. ACTION: Notice. CCP in accordance with National D Restored forest habitats will Environmental Policy Act (NEPA) (40 advance our efforts to increase riparian SUMMARY: We announce new deadlines CFR 1506.6(b)) requirements. We corridor connectivity, and provide for the public to submit input on several completed a thorough analysis of habitat for neotropical songbirds and draft documents prepared in accordance impacts on the human environment in other species. with the National Environmental Policy the draft CCP/EA. D Restored relic oak habitat acreage Act. We are taking this action in regard Background will increase to provide habitat for to draft documents and scoping periods imperiled oak-dependent wildlife. that were open for comment during the The National Wildlife Refuge System D The acreage of managed wetland recent lapse in Federal appropriations. Administration Act of 1966 (16 U.S.C. ponds will decrease to restore more To ensure that we receive the best 668dd–668ee) (Refuge Administration natural wet prairie habitats to historic possible input to guide our Act), as amended by the National vegetation. decisionmaking, we want to provide the Wildlife Refuge System Improvement D Scrub-shrub wetland acreage will public adequate time to review and Act of 1997, requires us to develop a increase. comment on the draft documents. CCP for each national wildlife refuge. D Stream habitat will be restored to DATES: See SUPPLEMENTARY INFORMATION The purpose for developing a CCP is to facilitate fish passage, and benefit other for the new comment period end dates. provide refuge managers with a 15-year aquatic species and migratory and ADDRESSES: See each original Federal plan for achieving refuge purposes and resident wildlife. Register notice for information on contributing toward the mission of the D The refuge will expand public use where to submit comments. The Federal National Wildlife Refuge System opportunities including hunting and Register citations and links to the (NWRS), consistent with sound fishing. notices are in SUPPLEMENTARY principles of fish and wildlife D On the Sherwood Unit, existing INFORMATION. management, conservation, legal trails will remain the same, with an mandates, and our policies. In addition additional Environmental Education FOR FURTHER INFORMATION CONTACT: See to outlining broad management Off-Trail Study Area and a Nature the contact information in the original direction on conserving wildlife and Explore Area. Federal Register notices. The Federal their habitats, CCPs identify wildlife- D Additional photography blinds will Register citations and links to the dependent recreational opportunities be constructed to maximize the notices are in SUPPLEMENTARY available to the public, including photography experience and minimize INFORMATION. opportunities for hunting, fishing, wildlife disturbances. SUPPLEMENTARY INFORMATION: We, the wildlife observation and photography, D A youth waterfowl hunting program U.S. Fish and Wildlife Service (Service), and environmental education and will be developed. published notices in the Federal interpretation. We will review and D A hunt management plan will be Register in August, September, and update the CCP at least every 15 years developed in close coordination with October that announced the availability in accordance with the Refuge the State, to determine the season, blind of various documents for public review. Administration Act. locations, and other details. These documents included a draft D We will monitor and adjust the Comments environmental impact statement (EIS)/ hunt program as needed to provide environmental impact report and draft We identified three alternatives for quality waterfowl hunting and healthy environmental assessments (EA) refuge management in the draft CCP/EA, habitat. prepared in accordance with the D We will develop a fishing program including Alternative 1, our no action National Environmental Policy Act, as with an educational component on the alternative. We solicited public amended (NEPA) (42 U.S.C. 4321 et comments on the draft CCP/EA, and River Overlook. The CCP will guide us in managing seq.), and related documents, such as included a summary of the comments and administering the refuge for the draft comprehensive conservation plans we received and our responses in the next 15 years. Alternative 2, as we (CCP). The Federal Register notices final CCP. described in the draft CCP, is the directed interested parties to contact Selected Alternative foundation for the final CCP. The draft Service personnel and Web sites for and final CCP and related documents information about these draft The final CCP includes detailed may be found on our Web site (see documents. As a result of the recent information about the refuge, our lapse in Federal appropriations, these ADDRESSES). planning process, the issues we personnel and Web sites were addressed, and Alternative 2, the Dated: May 16, 2013. unavailable for 16 days. management alternative we selected for Robyn Thorson, To ensure compliance with our implementation on the refuge. Under Regional Director, Pacific Region, Portland, responsibilities under NEPA and to Alternative 2 we will balance our Oregon. provide the public increased access to management of the refuge’s competing [FR Doc. 2013–25600 Filed 10–29–13; 8:45 am] Service sources of information, we are management needs and issues. Brief BILLING CODE 4310–55–P allowing additional time for public

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input on these draft documents. We are upcoming CCP and EA for another information that will help the public get also extending the comment periods for refuge and for either an EIS or EA for access to the draft documents and scoping for an upcoming CCP and EIS a proposed habitat conservation plan. submit comments: for one national wildlife refuge and an The following table provides relevant

Federal Register New comment Title of Federal Register notice citation period end date Web link

Rocky Mountain Arsenal National Wildlife Refuge, Commerce 78 FR 48183; Au- November 15, 2013 http://www.gpo.gov/fdsys/pkg/ City, CO; Comprehensive Conservation Plan and Environ- gust 7, 2013. FR-2013-08-07/pdf/2013- mental Impact Statement; Two Ponds National Wildlife Refuge, 19052.pdf. Arvada, CO; Comprehensive Conservation Plan and Environ- mental Assessment. South Bay Salt Pond Restoration Project, Phase 2 (Ponds R3, 78 FR 56921; Sep- December 2, 2013 http://www.gpo.gov/fdsys/pkg/ R4, R5, S5, A1, A2W, A8, A8S, A19, A20, and A21) at the tember 16, 2013. FR-2013-09-16/pdf/2013- Don Edwards National Wildlife Refuge; Intent To Prepare an 22438.pdf. Environmental Impact Statement/Environmental Impact Report. Habitat Conservation Plan for the Community of Los Osos, San 78 FR 57651; Sep- November 20, 2013 http://www.gpo.gov/fdsys/pkg/ Luis Obispo County, CA; Notice of Intent. tember 19, 2013. FR-2013-09-19/pdf/2013- 22778.pdf. Notice of Availability of the Draft Southeast Missouri Ozarks Re- 78 FR 57875; Sep- December 4, 2013 http://www.gpo.gov/fdsys/pkg/ gional Restoration Plan and Environmental Assessment. tember 20, 2013. FR-2013-09-20/pdf/2013- 22953.pdf. DeSoto and Boyer Chute National Wildlife Refuges; Washington 78 FR 57876; Sep- November 8, 2013 http://www.gpo.gov/fdsys/pkg/ County, Nebraska, and Harrison and Pottawattamie Counties, tember 20, 2013. FR-2013-09-20/pdf/2013- Iowa; Draft Environmental Assessment and Comprehensive 22956.pdf. Conservation Plan. Cokeville Meadows National Wildlife Refuge, Lincoln County, 78 FR 58340; Sep- November 4, 2013 http://www.gpo.gov/fdsys/pkg/ WY; Draft Comprehensive Conservation Plan and Environ- tember 23, 2013. FR-2013-09-23/pdf/2013- mental Assessment. 23107.pdf. Golden Eagles; Programmatic Take Permit Application; Draft En- 78 FR 59710; Sep- November 29, 2013 http://www.gpo.gov/fdsys/pkg/ vironmental Assessment; Shiloh IV Wind Project, Solano tember 27, 2013. FR-2013-09-27/pdf/2013- County, California. 23732.pdf. Big Muddy National Fish and Wildlife Refuge, Authorized Within 78 FR 60306; Octo- November 20, 2013 http://www.gpo.gov/fdsys/pkg/ the Twenty Counties That Lie Along the Missouri River From ber 1, 2013. FR-2013-10-01/pdf/2013- Kansas City to St. Louis, MO; Draft Environmental Assessment 23733.pdf. and Comprehensive Conservation Plan.

For information about these draft DEPARTMENT OF THE INTERIOR Federal permit is issued that allows documents and related issues, contact such activity. the person listed in the relevant notice Fish and Wildlife Service FOR FURTHER INFORMATION CONTACT: Mr. under FOR FURTHER INFORMATION Daniel Marquez, U.S. Fish and Wildlife CONTACT. [FWS–R8–ES–2013–N224; Service, Region 8, 2800 Cottage Way, FXES11130800000–134–FF08E00000] Room W–2606, Sacramento, CA 95825; Authority: We issue this notice under the _ authority of the National Environmental Endangered and Threatened Species; 760–431–9440 (telephone); or daniel Policy Act, as amended (42 U.S.C. 4321 et Permits Issued [email protected] (email). seq.). SUPPLEMENTARY INFORMATION: We have AGENCY: Fish and Wildlife Service, issued the following permits in response Dated: October 25, 2013. Interior. to recovery permit applications we Tina A. Campbell, ACTION: Notice of issuance of permits. received under the authority of section Chief, Division of Policy and Directives 10 of the Act, as amended (16 U.S.C. Management. DATES: The permit issuance dates are 1531 et seq.). We provide this notice [FR Doc. 2013–25738 Filed 10–29–13; 8:45 am] under SUPPLEMENTARY INFORMATION. under section 10(c) of the Act. Each BILLING CODE 4310–55–P SUMMARY: We, the U.S. Fish and permit listed below was issued only Wildlife Service, have issued the after we determined that it was applied following permits to conduct certain for in good faith; that granting the activities with endangered species permit would not be to the disadvantage under the authority of the Endangered of the listed species; and that the terms Species Act, as amended (Act). With and conditions of the permit were some exceptions, the Act prohibits consistent with purposes and policy set activities with listed species unless a forth in the Act.

Applicant name Permit No. Date issued Expiration date

BIO-WEST, INCORPORATED ...... 809232 1/24/13 3/31/15 KUS, BARBARA E...... 829554 3/29/13 5/30/15 AECOM ...... 820658 2/22/13 6/20/15 MANTECH SRS TECHNOLOGIES INC...... 097845 3/22/13 3/7/16 POINT REYES BIRD OBSERVATORY ...... 807078 3/8/13 3/7/16 FOURNIER, JOELLE J ...... 213726 3/22/13 3/21/16

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Applicant name Permit No. Date issued Expiration date

FAMOLARO, PETER C ...... 813431 4/5/13 4/4/16 BARRINGER, DEBRA S ...... 89964A 4/12/13 4/11/16 AMALONG, MATTHEW L ...... 89998A 5/3/13 5/2/16 TAYLOR, JARED P ...... 91235A 5/3/13 5/2/16 THE CENTER FOR NATURAL LANDS MANAGEMENT ...... 221411 4/12/13 10/10/16 BERKLEY, JASON L ...... 009015 3/22/13 3/21/17 LSA ASSOCIATES, INC...... 777965 3/22/13 3/21/17 KLEIN, MICHAEL W...... 039305 4/5/13 4/4/17 KAMADA, DANA K...... 799568 5/3/13 5/2/17 PRIEST, JEFFREY D...... 840619 5/3/13 5/2/17 JAMES, ROBERT A...... 003269 6/28/13 6/27/17 HOUSE, DEBORAH J...... 844027 2/1/13 1/31/16 NERHUS, BARRY S ...... 74785A 2/1/13 1/31/16 STRAUSS, EMILIE A...... 227263 2/1/13 1/31/16 AVOCET RESEARCH ASSOCIATES ...... 786728 2/8/13 2/7/16 EAST BAY ZOOLOGICAL SOCIETY ...... 85448A 4/5/13 4/4/16 SHANAHAN, SETH A ...... 231424 4/5/13 4/4/16 LIU, LEONARD Y ...... 94998A 5/3/13 5/2/16 KENDRICK, JENNIFER L ...... 76732A 5/31/13 5/30/16 MUDRY, NATHAN WAYNE ...... 89496A 5/31/13 5/30/16 WHITTALL, JUSTEN BRYANT ...... 195891 3/15/13 3/14/17 SAN DIEGO NATURAL HISTORY MUSEUM ...... 75988A 3/22/13 3/21/17 CREEKSIDE CENTER FOR EARTH OBSERVATION ...... 30659A 2/22/13 2/6/15 POWER ENGINEERS, INC...... 64546A 6/28/13 8/16/15 ODELL, MELISSA C ...... 56889A 4/5/13 3/8/16 PATTON, ROBERT T...... 789255 4/5/13 4/4/16 TATARIAN, PATRICIA J...... 802089 1/8/13 1/7/17 SHAFFER, HOWARD BRADLEY ...... 094642 1/16/13 1/15/17 WOLFF, DAVID K...... 090849 1/25/13 1/24/17 SANTA BARBARA ZOOLOGICAL FOUNDATION ...... 79454A 2/1/13 1/31/17 CHRISTOPHER, SUSAN V...... 058073 2/8/13 2/7/17 INNECKEN, SHIRLEY M ...... 82480A 2/8/13 2/7/17 WONG, TODD J ...... 90002A 2/8/13 2/7/17 ROSSI, AVIVA J ...... 80553A 3/8/13 3/7/17 WITHAM, CAROL W...... 799570 3/8/13 3/7/17 UNIVERSITY OF CALIFORNIA SACRAMENTO ...... 192702 3/15/13 3/14/17 ROSS, LAUREN ELIZABETH ...... 78621A 3/22/13 3/21/17 GIBSON & SKORDAL ...... 795935 3/29/13 3/27/17 BROWN, RYAN M ...... 90000A 3/28/13 3/28/17 FARMER, MICHAEL J...... 195304 3/29/13 3/28/17 TEMPLE, DANIELLE LOLENE ...... 85424A 3/29/13 3/28/17 MONK & ASSOCIATES INCORPORATED ...... 776608 4/5/13 4/4/17 EICH, INGRID I...... 092469 4/12/13 4/11/17 CALIFORNIA DEPT OF WATER RESOURCES ...... 835365 4/26/13 4/25/17 ROGERS, DAVID CHRISTOPHER ...... 796284 4/25/13 4/25/17 WILKERSON, CULLEN A...... 179036 5/3/13 5/2/17 VOLLMAR NATURAL LANDS CONSULTING ...... 035336 5/31/13 5/30/17 STOKES, DREW CRANDALL ...... 168927 6/28/13 6/27/17 MORRISON, MICHAEL L...... 797315 6/28/13 6/27/17 BRUNGRABER, CAESARA WENDIN ...... 14231A 2/8/13 8/25/14 DUNN, CINDY MARCELLA ...... 29658A 3/29/13 2/6/15 UNIVERSITY OF ARIZONA ...... 086593 1/25/13 1/24/17 PUGH, DALLAS RYAN ...... 79192A 2/1/13 1/31/17 HENRY, RACHEL ...... 82483A 2/8/13 2/7/17 FAULKNER, DAVID K...... 838743 2/22/13 2/21/17 SEAY, STEPHANIE M ...... 170528 3/15/13 3/14/17 DICUS, JOHN W...... 839960 4/5/13 4/4/17 HAGAR ENVIRONMENTAL SCIENCE ...... 089980 4/12/13 4/11/17 OBERHOFF, DWAYNE N...... 180579 4/12/13 4/11/17 BUREAU OF LAND MANAGMENT, HOLLISTER FIELD OFFICE ...... 166383 5/3/13 5/2/17 USFWS–STOCKTON FWO ...... 188803 5/31/13 12/31/15

Availability of Documents Marquez (see FOR FURTHER INFORMATION Authority: The authority for this notice is CONTACT). the Endangered Species Act of 1973, as Documents and other information amended (16 U.S.C. 1531 et seq.). submitted with these applications are available for review, subject to the Michael Long requirements of the Privacy Act and Acting Regional Director, Pacific Southwest Freedom of Information Act, by any Region, Sacramento, California. party who submits a written request for [FR Doc. 2013–25690 Filed 10–29–13; 8:45 am] a copy of such documents to Daniel BILLING CODE 4310–55–P

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DEPARTMENT OF THE INTERIOR Evaluation Council (NEPEC) will hold a Contact: Dr. Michael Blanpied, one-and-a-half-day meeting on Executive Secretary, National Geological Survey November 4 and 5, 2013, at the U.S. Earthquake Prediction Evaluation [GX14GG009950000] Geological Survey (USGS) in Menlo Council, U.S. Geological Survey, MS Park, California. The Council is 905, 12201 Sunrise Valley Drive, Scientific Earthquake Studies Advisory comprised of members from academia Reston, Virginia 20192, (703) 648–6696, Committee (SESAC) and the Federal Government. The Email: [email protected]. Council shall advise the Director of the Dated: October 21, 2013. AGENCY: U.S. Geological Survey. U.S. Geological Survey on proposed Michael Blanpied, ACTION: Notice of meeting. earthquake predictions, on the Designated Federal Officer. completeness and scientific validity of SUMMARY: Pursuant to Public Law 106– the available data related to earthquake [FR Doc. 2013–25616 Filed 10–29–13; 8:45 am] 503, the Scientific Earthquake Studies predictions, and on related matters as BILLING CODE P Advisory Committee (SESAC) will hold assigned by the Director. Additional its next meeting at Stanford University, information about the Council may be DEPARTMENT OF THE INTERIOR in Palo Alto, California. The Committee found at: http://earthquake.usgs.gov/ is comprised of members from aboutus/nepec/. Bureau of Land Management academia, industry, and State government. The Committee shall At the meeting, the Council will [LLCAC06900 L17110000.AL0000 advise the Director of the U.S. receive several briefings on the history LXSS025B0000] Geological Survey (USGS) on matters and current state of scientific relating to the USGS’s participation in investigations of earthquake processes Call for Nominations for the Bureau of the National Earthquake Hazards in and around the San Andreas fault Land Management’s Carrizo Plain Reduction Program. near the town of Parkfield in central National Monument Advisory The Committee will receive reports on California, and will be asked to advise Committee, CA the USGS on priorities for the status of activities of the Program AGENCY: Bureau of Land Management, and progress toward Program goals and instrumentation and scientific investigations in the future. The Council Interior. objectives. The Committee will assess ACTION: Call for nominations. this information and provide guidance will also hear updates on past topics of discussion, including work with social on the future undertakings and direction SUMMARY: The Bureau of Land and behavioral scientists on improving of the Earthquake Hazards Program. Management (BLM) is soliciting hazard and risk messages; development Focus topics for this meeting include nominations from the public to fill of improved methods for calculation of budget sequestration, rock mechanics positions on the Carrizo Plain National short-term aftershock probabilities; research, induced seismicity, Monument Advisory Committee (MAC). USGS collaborative work with the earthquake early warning and national MAC members provide advice and Collaboratory for Study of Earthquake earthquake hazard mapping. recommendations to the BLM on the Predictability (CSEP); status of an Meetings of the Scientific Earthquake management of public lands in the updated Uniform California Earthquake Studies Advisory Committee are open to Carrizo Plain National Monument. the public. Rupture Forecast (UCERF3); and on the delivery of near-real-time earthquake ADDRESSES: Nominations should be sent DATES: November 6–7th, 2013, information by the National Earthquake to the Monument Manager, Bureau of commencing at 8:30 a.m. on the first day Information Center (NEIC). Land Management, Bakersfield Field and adjourning at 1:00 p.m. on Office, 3801 Pegasus Drive, Bakersfield, November 7, 2013. A draft meeting agenda is available CA 93308. Contact: Dr. William Leith, U.S. from the Executive Secretary on request FOR FURTHER INFORMATION CONTACT: Geological Survey, MS 905, 12201 (contact information below), and will be Johna Hurl, Monument Manager, Sunrise Valley Drive, Reston, Virginia posted to the Web site (above) when Bakersfield Field Office, 3801 Pegasus 20192, (703) 648–6786, [email protected]. finalized. In order to ensure sufficient Drive, Bakersfield, CA 93308, 661–391– seating and hand-outs, it is requested Dated: October 22, 2013. 6093, [email protected] or John Kelley, that visitors pre-register by contacting Carrizo Program Support Technician, at William Leith, the Executive Secretary by November 1. Designated Federal Officer. 661–391–6088, [email protected]. Members of the public wishing to make Persons who use a telecommunications [FR Doc. 2013–25618 Filed 10–29–13; 8:45 am] a statement to the Council should device for the deaf (TDD) may call the BILLING CODE P provide notice of that intention by Federal Information Relay Service November 1 so that time may be allotted (FIRS) at 1–800–877–8339 to contact the in the agenda. DEPARTMENT OF THE INTERIOR above individual during normal DATES: The meeting will be held in business hours. The FIRS is available 24 Geological Survey Building 3 of the USGS campus at 345 hours a day, 7 days a week, to leave a Middlefield Road, Menlo Park, message or question with the above [GX14GG009950000] California. The meeting will commence individual. You will receive a reply during normal business hours. National Earthquake Prediction in the early afternoon of Monday, Evaluation Council (NEPEC) November 4, 2013, and continue the SUPPLEMENTARY INFORMATION: The MAC following day, November 5, 2013, provides representative citizen counsel AGENCY: U.S. Geological Survey, beginning at 9:00 a.m. and adjourning at and advice to the Secretary of the Interior. or before 4:00 p.m. Times are Interior through the BLM with respect to ACTION: Notice of meeting. approximate. Guests are encouraged to the revision and implementation of the contact the Executive Secretary for a comprehensive plan for the Carrizo SUMMARY: Pursuant to Public Law 96– copy of the agenda and instructions for Plain National Monument. 472, the National Earthquake Prediction parking and locating the meeting room. The MAC consists of 10 members:

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(1) A member of, or nominated by, the filed in the New Mexico State Office, office will be provided as to the date of San Luis Obispo County Board of Bureau of Land Management, Santa Fe, said publication. If a protest against a Supervisors; New Mexico, thirty (30) calendar days survey, in accordance with 43 CFR (2) A member of, or nominated by, the from the date of this publication. 4.450–2, of the above plats is received Kern County Board of Supervisors; FOR FURTHER CONTACT INFORMATION: prior to the date of official filing, the (3) A member of, or nominated by, the These plats will be available for filing will be stayed pending Carrizo Native American Advisory inspection in the New Mexico State consideration of the protest. Council; Office, Bureau of Land Management, A plat will not be officially filed until (4) A member of, or nominated by, the 301 Dinosaur Trail, Santa Fe, New the day after all protests have been Central California Resource Advisory Mexico. Copies may be obtained from dismissed and become final or appeals Council; this office upon payment. Contact (5) A member representing Marcella Montoya at 505–954–2097, or from the dismissal affirmed. individuals or companies authorized to by email at [email protected], for A person or party who wishes to graze livestock within the Monument; assistance. Persons who use a protest against any of these surveys and telecommunications device for the deaf must file a written protest with the (6) Five members with recognized (TDD) may call the Federal Information Bureau of Land Management New backgrounds reflecting: Relay Service (FIRS) at 1–800–877–8339 Mexico State Director stating that they (a) The purposes for which the to contact the above individual during wish to protest. Monument was established; and normal business hours. A statement of reasons for a protest (b) The interests of other stakeholders, SUPPLEMENTARY INFORMATION: including the general public, who are may be filed with the Notice of Protest affected by or interested in the planning Indian Meridian, Oklahoma (OK) to the State Director or the statement of and management of the Monument. The plat, representing the dependent reasons must be filed with the State Terms of three present MAC members resurvey and survey in Township 22 North, Director within thirty (30) days after the (two public-at-large and one San Luis Range 9 East, of the Indian Meridian, protest is filed. Obispo County Board of Supervisors) accepted May 15, 2013, for Group 210 OK. Robert A. Casias, expire on November 15, 2013. The Supplemental Plat, representing the dependent resurvey and survey in Township Individuals may nominate themselves Deputy State Director, Cadastral Survey/ 5 North, Range 7 East, of the Indian GeoSciences. or others. Nominees must be residents Meridian, accepted August 5, 2013, OK. of the counties or neighboring county in The plat, in three sheets, representing the [FR Doc. 2013–25692 Filed 10–29–13; 8:45 am] which the MAC has jurisdiction. The dependent resurvey and survey in Township BILLING CODE 4310–FB–P BLM will evaluate nominees based on 29 North, Range 23 East, of the Indian their education, training, and Meridian, accepted September 24, 2013, for experience and their knowledge of the Group 219 OK. DEPARTMENT OF THE INTERIOR geographical resource. The following New Mexico Principal Meridian, New must accompany nominations received Mexico (NM) Bureau of Land Management in this call for nominations: The plat, representing the dependent • Letters of reference from resurvey and survey in Township 21 North, [LLNVW03000.L14300000.EU0000; 14– represented interests or organizations; Range 9 East, of the New Mexico Principal 08807] • A completed background Meridian, accepted July 18, 2013, for Group information nomination form; and 1151 NM. Notice of Realty Action; Modified • Any other information that speaks The plat, representing the dependent Competitive Sealed-Bid Sale of Public resurvey and survey in Township 6 North, Land at Schoolhouse Butte (N–85116), to the nominee’s qualifications. Range 15 West, of the New Mexico Principal Nominations will be accepted for a Meridian, accepted May 28 18, 2013, for Humboldt County, NV; Correction 45-day period beginning the date this Group 1141 NM. notice is published. The plat, representing the dependent AGENCY: Bureau of Land Management, Authority: 43 CFR 1784.4–1. resurvey and survey in Township 12 North, Interior. Range 4 East, of the New Mexico Principal Gabriel Garcia, Meridian, accepted September 16, 2013, for ACTION: Correction. Field Manager, Bakersfield Field Office. Group 1134 NM. The plat, in two sheets, representing the SUMMARY: This notice corrects the date [FR Doc. 2013–25788 Filed 10–29–13; 8:45 am] dependent resurvey and survey in Township that the Bureau of Land Management BILLING CODE 4310–40–P 17 South, Range 16 West, of the New Mexico will open sealed bids for this public Principal Meridian NM, accepted September land sale. The original notice, which 24, 2013, for Group 1146 NM. DEPARTMENT OF THE INTERIOR The Supplemental Plat, representing the published on September 25, 2013 (78 FR dependent resurvey and survey in Township 59055), incorrectly stated the date. Bureau of Land Management 23 South, Range 18 West, of the New Mexico On page 59055, column 2, line 4 Principal Meridian, accepted August 7, 2013 [LLNM940000. L1420000.BJ0000] below the chart, which reads, NM. ‘‘November 25, 2013,’’ is hereby Notice of Filing of Plats of Survey, New The Supplemental Plat, representing the dependent resurvey and survey in Township corrected to read, ‘‘November 26, 2013.’’ Mexico 23 South, Range 19 West, of the New Mexico Gene Seidlitz, AGENCY: Principal Meridian, accepted August 7, 2013 Bureau of Land Management, District Manager, Winnemucca. Interior. NM. [FR Doc. 2013–25781 Filed 10–29–13; 8:45 am] ACTION: Notice of Filing of Plats of These plats are scheduled for official Survey. filing 30 days from the notice of BILLING CODE 4310–HC–P publication in the Federal Register, as SUMMARY: The plats of survey described provided for in the BLM Manual Section below are scheduled to be officially 2097—Opening Orders. Notice from this

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DEPARTMENT OF THE INTERIOR Office, 1917 Marsh Road, Yakima, WA These actions were previously 98901; telephone (509) 575–5848, ext. evaluated at a programmatic level of Bureau of Reclamation 232; facsimile (509) 454–5650; email analysis in the Integrated Plan PEIS (see [XXXR0680R1 RR.R0336A1R5WRMP01.03 [email protected]. Persons who use a chapters 2 through 5 of the PEIS RR01113000] telecommunications device for the deaf available at: http://www.usbr.gov/pn/ may call the Federal Relay Service programs/yrbwep/reports/FPEIS/ Notice of Intent To Prepare an (FedRelay) at 1–800–877–8339 TTY/ fpeis.pdf). That PEIS examined the Environmental Impact Statement and ASCII to contact the above individual effects of the overall Integrated Plan Public Scoping Meetings for the during normal business hours. The Alternative, which included the Keechelus Reservoir-to-Kachess FedRelay is available 24 hours a day, 7 Keechelus Reservoir-to-Kachess Reservoir Conveyance and Kachess days a week, to leave a message or Reservoir Conveyance and the Kachess Inactive Storage, Yakima River Basin question with the above individual. You Reservoir Inactive Storage projects. Now Water Enhancement Project, Integrated will receive a reply during normal the agencies will prepare a project-level Water Resource Management Plan, business hours. Information on this EIS for the Keechelus Reservoir-to- Kittitas County, Washington project may also be found at: http:// Kachess Reservoir Conveyance and the www.usbr.gov/pn/programs/yrbwep/ Kachess Reservoir Interactive Storage AGENCY: Bureau of Reclamation, index.html. projects and will tier to the Integrated Interior. Plan PEIS as provided for in the Council SUPPLEMENTARY INFORMATION: The ACTION: Notice. on Environmental Quality Regulations Bureau of Reclamation (Reclamation) is (40 CFR 1502.20, Tiering). The project- SUMMARY: The Bureau of Reclamation issuing this notice pursuant to the level environmental analysis to be intends to prepare an Environmental National Environmental Policy Act of conducted in this EIS will expand upon Impact Statement (EIS) for the 1969, as amended (NEPA), 42 U.S.C. and add detail to those analyses already Keechelus Reservoir-to-Kachess 4321 et seq.; the Council on completed in the Integrated Plan PEIS. Reservoir Conveyance and the Kachess Environmental Quality’s (CEQ) The proposed, site specific actions to Reservoir Inactive Storage projects. The regulations for implementing NEPA, 43 be evaluated in the Keechelus Reservoir- Washington State Department of CFR Parts 1500 through 1508; the to-Kachess Reservoir Conveyance and Ecology will be a joint lead agency with Department of the Interior’s NEPA Kachess Reservoir Inactive Storage EIS the Bureau of Reclamation in the regulations, 43 CFR Part 46, and the are: preparation of this EIS. The Bureau of Washington State Environmental Policy 1. Transfer water through a tunnel Reclamation is requesting public Act. from the Keechelus watershed to comment and agency input to identify Background Kachess Reservoir. Two alternatives significant issues or other alternatives to have been identified for a tunnel to be addressed in the EIS. On July 9, 2013, the Record of convey water from Keechelus watershed Decision (ROD) for the Final DATES: Submit written comments on the to Kachess Reservoir. One would Programmatic EIS (PEIS) for the Yakima scope of the EIS on or before December include construction of a new outlet River Basin Integrated Water Resource 16, 2013. works at the north end of Keechelus Management Plan (Integrated Plan) was Two scoping meetings, combined Dam connecting to a 10–12 foot- signed. In the ROD, the Reclamation with open houses each day, will be held diameter, 3.7-mile-long, gravity flow selected the Integrated Plan Alternative on the following dates and times: tunnel. The other would include for implementation. The Integrated Plan • November 20, 2013, 1:30 p.m. to construction of a diversion structure on Alternative is comprised of seven 3:30 p.m., and 5:00 p.m. to 7:00 p.m., the Yakima River about 8,000 feet elements which were considered in the Yakima, WA. downstream of Keechelus Dam, PEIS: • November 21, 2013, 1:30 p.m. to connecting to a 10–12 foot-diameter, 1. Reservoir Fish Passage; 3:30 p.m., and 5:00 p.m. to 7:00 p.m., 3.2-mile-long, gravity flow tunnel. Both 2. Structural and Operational Cle Elum, WA. tunnel alternatives would discharge into Changes; Kachess Reservoir through a new ADDRESSES: Send written scoping 3. Surface Water Storage; structure located on the west shore; and comments, requests to be added to the 4. Groundwater Storage; 2. Release an additional 200,000 acre- mailing list, or requests for sign 5. Habitat/Watershed Protection and feet of water from Kachess Reservoir language interpretation for the hearing Enhancement; during severe droughts by accessing impaired or other special assistance 6. Enhanced Water Conservation; and inactive storage through additional needs to Ms. Candace McKinley, 7. Market Reallocation of Water outlet facilities. A substantial volume of Environmental Program Manager, Resources. water stored in Kachess Reservoir is Bureau of Reclamation, Columbia- As described in the PEIS, Reclamation currently inaccessible because it is Cascades Area Office, 1917 Marsh Road, and the Washington State Department of below the elevation of the outlet works. Yakima, WA 98901; or email yrbwep@ Ecology (Ecology) will complete project- This is referred to as inactive storage. usbr.gov. level, site-specific environmental review An alternative being considered to The scoping meetings and open for actions within the Integrated Plan access the inactive storage in Kachess houses will be located at: once the agencies are ready to move Reservoir includes a new outlet works at • Yakima—Yakima Area Arboretum, forward each action or groups of a lower elevation in the reservoir 1401 Arboretum Way, Yakima, WA actions. For instance, with regard to the connected by a tunnel to a pump station 98901. present NOI, Reclamation and Ecology that would discharge to the Kachess • Cle Elum—U.S. Forest Service (Cle have determined that it is appropriate to River. Elum Ranger District Conference Room), initiate the environmental review The objectives of these proposed 803 W 2nd Street, Cle Elum, WA 98922. process with regard to the Keechelus actions are to increase the total water FOR FURTHER INFORMATION CONTACT: Ms. Reservoir-to-Kachess Reservoir supply available from the Keechelus Candace McKinley, Bureau of Conveyance and Kachess Reservoir watershed for irrigation and instream Reclamation, Columbia-Cascades Area Inactive Storage projects. flow, provide additional water for

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proratable irrigation districts during DEPARTMENT OF THE INTERIOR Reclamation, Columbia-Cascades Area severe drought conditions, and create Office, 1917 Marsh Road, Yakima, WA more normal flows in the upper Yakima Bureau of Reclamation 98901; telephone (509) 575–5848, ext. River between Keechelus Dam and Lake [XXXR0680R1 RR.R0336A1R5WRMP01.03 232; facsimile (509) 454–5650; email Easton to improve fish habitat. RR01113000] [email protected]. Persons who use a telecommunications device for the deaf At this time, there are no known Notice of Intent To Prepare an may call the Federal Relay Service Indian Trust Assets or environmental Environmental Impact Statement and (FedRelay) at 1–800–877–8339 TTY/ justice issues associated with the Public Scoping Meetings for the Cle ASCII to contact the above individual Proposed Actions. Elum Reservoir Pool Raise, Yakima during normal business hours. The Special Assistance for Public Scoping River Basin Water Enhancement FedRelay is available 24 hours a day, 7 and Open House Meetings Project, Integrated Water Resource days a week, to leave a message or Management Plan, Kittitas County, question with the above individual. You If special assistance is required to Washington will receive a reply during normal participate in the public scoping and business hours. Information on this open house meetings, please contact Ms. AGENCY: Bureau of Reclamation, project may also be found at http:// Candace McKinley, Bureau of Interior. www.usbr.gov/pn/programs/yrbwep/ Reclamation, Columbia-Cascades Area ACTION: Notice. index.html. Office, 1917 Marsh Road, Yakima, WA SUPPLEMENTARY INFORMATION: The SUMMARY: The Bureau of Reclamation Bureau of Reclamation (Reclamation) is 98901; telephone (509) 575–5848, ext. intends to prepare an Environmental issuing this notice pursuant to the 232; facsimile (509) 454–5650; email Impact Statement (EIS) on the Cle Elum National Environmental Policy Act of [email protected]. Persons who use a Reservoir Pool Raise project. The 1969, as amended (NEPA), 42 U.S.C. telecommunications device for the deaf Washington State Department of 4321 et seq.; the Council on may call the Federal Relay Service Ecology will be a joint lead agency with Environmental Quality’s (CEQ) (FedRelay) at 1–800–877–8339 TTY/ the Bureau of Reclamation in the regulations for implementing NEPA, 43 ASCII to contact the above individual preparation of this EIS, which also will CFR parts 1500 through 1508; the during normal business hours. The be used to comply with requirements of Department of the Interior’s NEPA FedRelay is available 24 hours a day, 7 the Washington State Environmental regulations, 43 CFR part 46, and the days a week, to leave a message or Policy Act (SEPA). The Bureau of Washington State Environmental Policy question with the above individual. You Reclamation is requesting public Act. will receive a reply during normal comment and agency input to identify business hours. All meeting facilities are significant issues or other alternatives to Background physically accessible to people with be addressed in the EIS. On July 9, 2013, the Record of disabilities. DATES: Submit written comments on the Decision (ROD) for the Final scope of the environmental impact Public Disclosure Programmatic EIS (PEIS) for the Yakima statement on or before December 16, River Basin Integrated Water Resource Before including your address, phone 2013. Management Plan (Integrated Plan) was number, email address, or other Two scoping meetings, combined signed. In the ROD, the Reclamation personal identifying information in your with open houses each day, will be held selected the Integrated Plan Alternative on the following dates and times: for implementation. The Integrated Plan comment, you should be aware that • your entire comment—including your November 20, 2013, 1:30 p.m. to Alternative is comprised of seven 3:30 p.m., and 5:00 p.m. to 7:00 p.m., personal identifying information—may elements which were considered in the Yakima, WA. be made publicly available at any time. PEIS: • November 21, 2013, 1:30 p.m. to 1. Reservoir Fish Passage; While you may ask us in your comment 3:30 p.m., and 5:00 p.m. to 7:00 p.m., 2. Structural and Operational to withhold your personal identifying Cle Elum, WA. Changes; information from public review, we ADDRESSES: Send written scoping 3. Surface Water Storage; cannot guarantee that we will be able to comments, requests to be added to the 4. Groundwater Storage; do so. 5. Habitat/Watershed Protection and mailing list, or requests for sign Dated: October 24, 2013. Enhancement; language interpretation for the hearing 6. Enhanced Water Conservation; and Lorri J. Lee, impaired or other special assistance 7. Water Market Reallocation of Water Regional Director, Pacific Northwest Region. needs to Ms. Candace McKinley, Resources. [FR Doc. 2013–25689 Filed 10–29–13; 8:45 am] Environmental Program Manager, As described in the PEIS, the Bureau of Reclamation, Columbia- BILLING CODE 4310–MN–P Reclamation and the Washington State Cascades Area Office, 1917 Marsh Road, Department of Ecology (Ecology) will Yakima, WA 98901; or email yrbwep@ complete project-level, site-specific usbr.gov. environmental review for actions within The scoping meetings and open the Integrated Plan once the agencies are houses will be located at: ready to move forward each action or • Yakima—Yakima Area Arboretum, groups of actions. Reclamation and 1401 Arboretum Way, Yakima, WA Ecology have determined that it is 98901. appropriate to initiate the • Cle Elum—U.S. Forest Service (Cle environmental review process with Elum Ranger District Conference Room), regard to the Cle Elum Reservoir Pool 803 W 2nd Street, Cle Elum, WA 98922. Raise. FOR FURTHER INFORMATION CONTACT: Ms. This action was previously evaluated Candace McKinley, Bureau of at a programmatic level of analysis in

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the Integrated Plan PEIS (see chapters 2 your entire comment—including your SUPPLEMENTARY INFORMATION: The through 5 of the PEIS available at: personal identifying information—may Commission instituted this investigation www.usbr.gov/pn/programs/yrbwep/ be made publicly available at any time. on May 2, 2012, based on a complaint reports/FPEIS/fpeis.pdf). The PEIS While you may ask us in your comment filed by Technology Properties Limited, examined the effects of the overall to withhold your personal identifying LLC (‘‘TPL’’) of Cupertino, California. 77 Integrated Plan Alternative, which information from public review, we FR 26041 (May 2, 2012). The complaint included the Cle Elum Reservoir Pool cannot guarantee that we will be able to alleges violations of section 337 of the Raise Project as part of the Structural do so. Tariff Act of 1930, as amended, 19 and Operational Changes element. Now Dated: October 24, 2013. U.S.C. 1337, by reason of infringement the agencies will prepare a project-level of certain claims of U.S. Patent Nos. Lorri J. Lee, EIS for the Cle Elum Reservoir Pool 6,976,623 (‘‘the ’623 patent’’), 7,162,549 Raise Project and will tier to the Regional Director, Pacific Northwest Region. (‘‘the ’549 patent’’), 7,295,443 (‘‘the ’443 Integrated Plan PEIS as provided for in [FR Doc. 2013–25691 Filed 10–29–13; 8:45 am] patent’’), 7,522,424 (‘‘the ’424 patent’’), the Council on Environmental Quality BILLING CODE 4310–MN–P 6,438,638 (‘‘the ’638 patent’’), and Regulations (40 CFR 1502.20, Tiering). 7,719,847 (‘‘the ’847 patent’’). The The project-level environmental complaint further alleges the existence analysis to be conducted in this EIS will INTERNATIONAL TRADE of a domestic industry. The notice of expand upon and add detail to those COMMISSION investigation named twenty-one analyses already completed in the respondents, some of whom have since Integrated Plan PEIS. [Investigation No. 337–TA–841] settled from the investigation. As a The proposed action to be evaluated Certain Computer and Computer result of these settlements, the ’638 in the Cle Elum Reservoir Pool Raise EIS Peripheral Devices, and Components patent is no longer at issue, as it has not is to modify the radial gates at Cle Elum Thereof, and Products Containing been asserted against the remaining Dam to provide an additional 14,600 respondents. The remaining Same; Commission Decision to Review acre-feet of storage capacity. This respondents are Acer Inc. of New Taipei an Initial Determination; Schedule for modification would raise the pool level City, Taiwan (‘‘Acer’’); Canon Inc. of Filing Written Submissions Including by approximately 3 feet. The objective Toyko, Japan; Hewlett-Packard Remedy, the Public Interest, and of this action is to use the additional Company of Palo Alto, California Bonding water stored to provide increased (‘‘HP’’); HiTi Digital, Inc. of New Taipei seasonal releases from Cle Elum AGENCY: U.S. International Trade City, Taiwan; Kingston Technology Reservoir to improve streamflows for Commission. Company, Inc. of Fountain Valley, fish. The Cle Elum Pool Raise Project is ACTION: Notice. California (‘‘Kingston’’); Newegg, Inc. authorized in Yakima River Basin Water and Rosewill Inc., both of City of Enhancement Project (Sec. 1206, Pub. L. SUMMARY: Notice is hereby given that Industry, California (‘‘Newegg/ 103–43). the U.S. International Trade Rosewill’’); and Seiko Epson At this time, there are no known Commission has determined to review Corporation of Nagano, Japan. Indian Trust Assets or environmental in the entirety the final initial On October 4, 2012, the ALJ issued a justice issues associated with the determination (‘‘ID’’) issued by the Markman order construing disputed proposed action. presiding administrative law judge claim terms of the asserted patents. Order No. 23. On January 7–11, 2013, Special Assistance for Public Scoping (‘‘ALJ’’) on August 2, 2013, finding a the ALJ conducted a hearing, and on and Open House Meetings violation of section 337 of the Tariff Act of 1930, 19 U.S.C. 1337, in this August 2, 2013, the ALJ issued the final If special assistance is required to investigation. ID. The ALJ found that TPL participate in the public scoping and demonstrated the existence of a open house meetings, please contact Ms. FOR FURTHER INFORMATION CONTACT: domestic industry, as required by 19 Candace McKinley, Bureau of Sidney A. Rosenzweig, Office of the U.S.C. 1337(a)(2), through TPL’s Reclamation, Columbia-Cascades Area General Counsel, U.S. International licensing investment under 19 U.S.C. Office, 1917 Marsh Road, Yakima, WA Trade Commission, 500 E Street SW., 1337(a)(3)(C). ID at 152–55. The ALJ 98901; telephone (509) 575–5848, ext. Washington, DC 20436, telephone (202) rejected TPL’s showing based upon 232; facsimile (509) 454–5650; email 708–2532. Copies of non-confidential OnSpec Electronic, Inc.’s research and [email protected]. Persons who use a documents filed in connection with this development, and engineering telecommunications device for the deaf investigation are or will be available for investments for section 337(a)(3)(C), as may call the Federal Relay Service inspection during official business well as subsections (a)(3)(A) and (FedRelay) at 1–800–877–8339 TTY/ hours (8:45 a.m. to 5:15 p.m.) in the (a)(3)(B). Id. at 155–57. ASCII to contact the above individual Office of the Secretary, U.S. The ALJ found that the respondents during normal business hours. The International Trade Commission, 500 E had not shown that any of the asserted FedRelay is available 24 hours a day, 7 Street SW., Washington, DC 20436, patent claims are invalid. However, the days a week, to leave a message or telephone (202) 205–2000. General ALJ found that TPL demonstrated question with the above individual. You information concerning the Commission infringement of the ’623 patent, and not will receive a reply during normal may also be obtained by accessing its the other patents. With respect to the business hours. All meeting facilities are Internet server at http://www.usitc.gov. ’623 patent, the ALJ found that TPL physically accessible to people with The public record for this investigation demonstrated direct infringement of the disabilities. may be viewed on the Commission’s asserted apparatus claims (claims 1–4 electronic docket (EDIS) at http:// and 9–12). Accordingly, the ALJ found Public Disclosure edis.usitc.gov. Hearing-impaired a violation of section 337 by Acer, Before including your address, phone persons are advised that information on Kingston and Newegg/Rosewill number, email address, or other this matter can be obtained by (collectively, ‘‘the ’623 respondents’’) as personal identifying information in your contacting the Commission’s TDD to these apparatus claims of the ‘‘623 comment, you should be aware that terminal on (202) 205–1810. patent.

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On August 19, 2013, the parties filed ‘‘articles protected by the patent’’ (i.e., a effects of that remedy upon the public petitions for review. TPL’s petition technical prong). If so, please identify interest. The factors the Commission challenges the ALJ’s noninfringement and describe the evidence in the record will consider include the effect that an determinations for the ’443, ’424, and that establishes articles protected by the exclusion order and/or cease and desist ’847 patents. TPL did not petition for asserted patents. orders would have on (1) the public review of the ALJ’s noninfringement (2) Discuss the construction of health and welfare, (2) competitive determination for the ’549 patent. The ‘‘accessible in parallel’’ in view of the conditions in the U.S. economy, (3) U.S. ’623 respondents challenge one of the prosecution history of the ’623 patent production of articles that are like or ALJ’s claim constructions, and (including the Examiner’s Statement of directly competitive with those that are independently challenge the ALJ’s Reasons for Allowance, see Salazar v. subject to investigation, and (4) U.S. finding that the asserted claims of the Proctor & Gamble Co., 414 F.3d 1342, consumers. The Commission is ’623 patent are not anticipated by, or 1347 (Fed. Cir. 2005)), and whether the therefore interested in receiving written obvious in view of, three pieces of prior asserted patent claims are infringed and submissions that address the art. The ’623 respondents also challenge not invalid based upon that aforementioned public interest factors the ALJ’s finding that TPL demonstrated construction. Invalidity arguments not in the context of this investigation. the existence of a domestic industry, dependent on that claim construction If the Commission orders some form and subscribe to the analysis presented should not be briefed. of remedy, the U.S. Trade by the respondents against whom the (3) Comment on whether the Representative, as delegated by the ’623 patent was not asserted. respondents’ invalidity evidence and President, has 60 days to approve or The respondents against whom the analysis as to the Pro II system, the Uno disapprove the Commission’s action. ’623 patent was not asserted Mas article, the Kaneshiro patent, and See Presidential Memorandum of July contingently challenge TPL’s evidence the ’928 Publication, and TPL’s 21, 2005, 70 FR 43251 (July 26, 2005). of expenditures, as well as the nexus evidence and analysis as to the During this period, the subject articles between those expenditures and the technical prong of the domestic industry would be entitled to enter the United asserted patents, for purposes of requirement, were undisputed. Please States under bond, in an amount showing a domestic industry under cite all evidence in the record that determined by the Commission. The section 337(a)(3)(C). They also argue supports your position. Commission is therefore interested in that ‘‘[t]here is no evidence that TPL’s (4) Discuss whether TPL receiving submissions concerning the licensees’ efforts relate to ’an article demonstrated that the products accused amount of the bond that should be protected by’ any of the asserted of infringing the ’443, ’424, and ’847 imposed if a remedy is ordered. patents.’’ Resp’ts’ Pet. 42, 54–56. The patents receive or interface with SD Written Submissions: The parties to respondents against whom the ’623 cards that operate in a four-bit-bus the investigation are requested to file patent was not asserted also argue that mode, and if so, whether the accused written submissions as set forth above. the four patents asserted against them products infringe the asserted claims. Parties to the investigation, interested are invalid as anticipated or obvious in (5) If the Commission were to find government agencies, and any other view of the prior art. They also make that the accused products infringe the interested parties are encouraged to file additional non-infringement arguments ’443, ’424, and ’847 patents, discuss written submissions on the issues of for the three patents asserted against whether the SD specification invalidates remedy, the public interest, and them for which TPL has petitioned for the asserted claims of those patents. bonding. Such submissions should review (the ’443, ’424 and ’847 patents). In connection with the final address the recommended Respondent HP filed a short petition disposition of this investigation, the determination by the ALJ on remedy for review on its own behalf. HP argues Commission may (1) issue an order that and bonding. The complainants are also for a narrow interpretation of articles could result in the exclusion of the requested to submit proposed remedial ‘‘protected by’’ an asserted patent. HP subject articles from entry into the orders for the Commission’s Pet. 5. United States, and/or (2) issue one or consideration. The complainants are On August 27, 2013, the parties filed more cease and desist orders that could also requested to state the date that the responses to each other’s petitions. result in the respondent(s) being asserted patents expire and the HTSUS Having examined the record of this required to cease and desist from numbers under which the accused investigation, including the ALJ’s final engaging in unfair acts in the products are imported. The written ID, the petitions for review, and the importation and sale of such articles. submissions and proposed remedial responses thereto, the Commission has Accordingly, the Commission is orders must be filed no later than close determined to review the ID in its interested in receiving written of business on Thursday, November 7, entirety. submissions that address the form of 2013 and responses to the Commission’s In connection with the Commission’s remedy, if any, that should be ordered. questions should not exceed 75 pages. review, the parties are asked to brief If a party seeks exclusion of an article Reply submissions must be filed no later only the issues enumerated below. See from entry into the United States for than the close of business on Friday, 19 CFR 210.43(b)(2). purposes other than entry for November 15, 2013, and such replies (1) Discuss, in light of the statutory consumption, the party should so should not exceed 50 pages. No further language, legislative history, the indicate and provide information submissions on these issues will be Commission’s prior decisions, and establishing that activities involving permitted unless otherwise ordered by relevant court decisions, including other types of entry either are adversely the Commission. InterDigital Communications, LLC v. affecting it or likely to do so. For Persons filing written submissions ITC, 690 F.3d 1318 (Fed. Cir. 2012), 707 background, see Certain Devices for must file the original document F.3d 1295 (Fed. Cir. 2013) and Microsoft Connecting Computers via Telephone electronically on or before the deadlines Corp. v. ITC, Nos. 2012–1445 & –1535, Lines, Inv. No. 337–TA–360, USITC stated above and submit 8 true paper 2013 WL 5479876 (Fed. Cir. Oct. 3, Pub. No. 2843, Comm’n Op. (December copies to the Office of the Secretary by 2013), whether establishing a domestic 1994). noon the next day pursuant to section industry based on licensing under 19 If the Commission contemplates some 210.4(f) of the Commission’s Rules of U.S.C. 1337(a)(3)(C) requires proof of form of remedy, it must consider the Practice and Procedure (19 CFR

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210.4(f)). Submissions should refer to [insert the date 60 days from the date activities with their awarded grant the investigation number (‘‘Inv. No. this notice is published in the Federal funding. 337–TA–841’’) in a prominent place on Register]. This process is conducted in An estimate of the total number of the cover page and/or the first page. (See accordance with 5 CFR 1320.10. respondents and the amount of time Handbook for Electronic Filing If you have comments, especially on estimated for an average respondent to Procedures, http://www.usitc.gov/ the estimated public burden or respond/reply: secretary/fed_reg_notices/rules/ associated response time, suggestions, It is estimated that approximately handbook_on_electronic_filing.pdf). or need a copy of the proposed 9428 annual, quarterly, and final report Persons with questions regarding filing information collection instrument with respondents can complete the report in should contact the Secretary (202–205– instructions or additional information, an average of 25 minutes. 2000). please contact Ashley Hoornstra, (5) An estimate of the total public Any person desiring to submit a Department of Justice Office of burden (in hours) associated with the document to the Commission in Community Oriented Policing Services, collection: There are an estimated 3,928 confidence must request confidential 145 N Street NE., Washington, DC total annual burden hours associated treatment. All such requests should be 20530. with this collection. directed to the Secretary to the Written comments and suggestions If additional information is required Commission and must include a full from the public and affected agencies contact: Jerri Murray, Department statement of the reasons why the concerning the proposed collection of Clearance Officer, United States Commission should grant such information are encouraged. Your Department of Justice, Justice treatment. See 19 CFR 201.6. Documents comments should address one or more Management Division, Policy and for which confidential treatment by the of the following four points: Planning Staff, Two Constitution Commission is properly sought will be —Evaluate whether the proposed Square, 145 N Street NE., Room 1407B, treated accordingly. A redacted non- collection of information is necessary Washington, DC 20530. confidential version of the document for the proper performance of the Dated: October 25, 2013. functions of the agency, including must also be filed simultaneously with Jerri Murray, the any confidential filing. All non- whether the information will have practical utility; Department Clearance Officer for PRA, U.S. confidential written submissions will be Department of Justice. available for public inspection at the —Evaluate the accuracy of the agency’s [FR Doc. 2013–25701 Filed 10–29–13; 8:45 am] Office of the Secretary and on EDIS. estimate of the burden of the The authority for the Commission’s proposed collection of information, BILLING CODE 4410–AT–P determination is contained in section including the validity of the 337 of the Tariff Act of 1930, as methodology and assumptions used; amended (19 U.S.C. 1337), and in —Enhance the quality, utility, and DEPARTMENT OF LABOR sections 210.42–46 of the Commission’s clarity of the information to be Office of the Secretary Rules of Practice and Procedure (19 CFR collected; and 210.42–46). —Minimize the burden of the collection of information on those who are to Agency Information Collection By order of the Commission. respond, including through the use of Activities; Submission for OMB Issued: October 24, 2013. appropriate automated, electronic, Review; Comment Request; Notice of Lisa R. Barton, mechanical, or other technological Law Enforcement Officer’s Injury or Acting Secretary to the Commission. collection techniques or other forms Occupational Disease and Notice of Law Enforcement Officer’s Death [FR Doc. 2013–25643 Filed 10–29–13; 8:45 am] of information technology, e.g., permitting electronic submission of BILLING CODE 7020–02–P ACTION: Notice. responses. Overview of This Information SUMMARY: The Department of Labor DEPARTMENT OF JUSTICE Collection (DOL) is submitting the Office of Workers’ Compensation Programs Agency Information Collection (1) Type of Information Collection: (OWCP) sponsored information Activities; Revision of a Previously Revision of a previously approved collection request (ICR) revision titled, Approved Collection, with Change; collection, with change; comments ‘‘Notice of Law Enforcement Officer’s Comments Requested: COPS Progress requested. Injury or Occupational Disease and Report (2) Title of the Form/Collection: COPS Notice of Law Enforcement Officer’s Progress Report. Death,’’ to the Office of Management (3) Agency form number, if any, and ACTION: 60-Day Notice. and Budget (OMB) for review and the applicable component of the approval for use in accordance with the The Department of Justice (DOJ) Department sponsoring the collection: Paperwork Reduction Act (PRA) of 1995 Office of Community Oriented Policing None. U.S. Department of Justice Office (44 U.S.C. 3501 et seq.). Services (COPS) will be submitting the of Community Oriented Policing following information collection request Services. DATES: Submit comments on or before to the Office of Management and Budget (4) Affected public who will be asked November 29, 2013. (OMB) for review and approval in or required to respond, as well as a brief ADDRESSES: A copy of this ICR with accordance with the Paperwork abstract: Under the Violent Crime and applicable supporting documentation; Reduction Act of 1995. The revision of Control Act of 1994, the U.S. including a description of the likely a previously approved information Department of Justice COPS Office respondents, proposed frequency of collection is published to obtain would require the completion of the response, and estimated total burden comments from the public and affected COPS Progress Report by recipients of may be obtained free of charge from the agencies. COPS hiring and non-hiring grants. RegInfo.gov Web site at http:// The purpose of this notice is to allow Grant recipients must complete this www.reginfo.gov/public/do/ for 60 days for public comment until report in order to inform COPS of their PRAViewICR?ref_nbr=201306-1240-006

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(this link will only become active on the and displays a currently valid OMB Total Estimated Annual Burden day following publication of this notice) Control Number. In addition, Hours: 14. or by contacting Michel Smyth by notwithstanding any other provisions of Total Estimated Annual Other Costs telephone at 202–693–4129 (this is not law, no person shall generally be subject Burden: $5. a toll-free number) or sending an email to penalty for failing to comply with a Dated: October 24, 2013. _ _ to DOL PRA [email protected]. collection of information that does not Michel Smyth, Submit comments about this request display a valid Control Number. See 5 Departmental Clearance Officer. to the Office of Information and CFR 1320.5(a) and 1320.6. The DOL [FR Doc. 2013–25630 Filed 10–29–13; 8:45 am] Regulatory Affairs, Attn: OMB Desk obtains OMB approval for this Officer for DOL–OWCP, Office of information collection under Control BILLING CODE 4510–CH–P Management and Budget, Room 10235, Number 1240–0022. The current 725 17th Street NW., Washington, DC approval is scheduled to expire on DEPARTMENT OF LABOR 20503, Fax: 202–395–6881 (this is not a October 31, 2013; however, it should be _ toll-free number), email: OIRA noted that existing information Office of the Secretary [email protected]. Commenters collection requirements submitted to the are encouraged, but not required, to OMB receive a month-to-month Agency Information Collection send a courtesy copy of any comments extension while they undergo review. Activities; Submission for OMB to the U.S. Department of Labor— New requirements would only take Review; Comment Request; OASAM, Office of the Chief Information effect upon OMB approval. For Disclosures for Participant Directed Officer, Attn: Information Management additional substantive information Individual Account Plans Program, Room N1301, 200 Constitution about this ICR, see the related notice ACTION: Avenue NW., Washington, DC 20210, published in the Federal Register on Notice. email: [email protected]. July 5, 2013 (78 FR 40513). SUMMARY: The Department of Labor FOR FURTHER INFORMATION CONTACT: Interested parties are encouraged to (DOL) is submitting the Employee Michel Smyth by telephone at 202–693– send comments to the OMB, Office of Benefits Security Administration 4129 (this is not a toll-free number) or Information and Regulatory Affairs at _ _ (EBSA) sponsored information by email at DOL PRA [email protected]. the address shown in the ADDRESSES collection request (ICR) titled, Authority: 44 U.S.C. 3507(a)(1)(D). section within 30 days of publication of ‘‘Disclosures for Participant Directed this notice in the Federal Register. In SUPPLEMENTARY INFORMATION: As Individual Account Plans,’’ to the Office order to help ensure appropriate appropriate, a respondent files a Notice of Management and Budget (OMB) for consideration, comments should of Law Enforcement Officer’s Injury or review and approval for continued use, mention OMB Control Number 1240– Occupational Disease, Form CA–721, or without change, in accordance with the Notice of Law Enforcement Officer’s 0022. The OMB is particularly Paperwork Reduction Act (PRA) of Death, Form (CA–722), when seeking interested in comments that: 1995, 44 U.S.C. 3501 et seq. • Evaluate whether the proposed Federal Employees’ Compensation Act DATES: Submit comments on or before collection of information is necessary (5 U.S.C. 8191 et seq.) benefits for a non- November 29, 2013. for the proper performance of the Federal law enforcement officer’s injury, ADDRESSES: A copy of this ICR with functions of the agency, including occupational illness, or death. The applicable supporting documentation; whether the information will have forms provide the OWCP with basic including a description of the likely practical utility; information needed to process a claim respondents, proposed frequency of • Evaluate the accuracy of the made for injury, illness, or death. This response, and estimated total burden agency’s estimate of the burden of the ICR has been classified as a revision, may be obtained free of charge from the proposed collection of information, because—in accordance with RegInfo.gov Web site at http:// including the validity of the Department of the Treasury www.reginfo.gov/public/do/ methodology and assumptions used; _ requirements for all Federal benefits • Enhance the quality, utility, and PRAViewICR?ref nbr=201309-1210-002 payments to be made electronically— clarity of the information to be (this link will only become active on the Forms CA–721 and CA–722 have been collected; and day following publication of this notice) changed to include space and • Minimize the burden of the or by contacting Michel Smyth by instructions for claimants to provide collection of information on those who telephone at 202–693–4129 (this is not direct deposit information. In addition, a toll-free number) or sending an email are to respond, including through the _ _ rather than requesting the claimant’s use of appropriate automated, to DOL PRA [email protected]. signature, Form CA–722 has been electronic, mechanical, or other Submit comments about this request revised to request the signature of the technological collection techniques or to the Office of Information and person filing the claim. Both forms have other forms of information technology, Regulatory Affairs, Attn: OMB Desk also been revised to include an e.g., permitting electronic submission of Officer for DOL–EBSA, Office of accommodation statement informing responses. Management and Budget, Room 10235, claimants with mental or physical Agency: DOL–OWCP. 725 17th Street NW., Washington, DC limitations to contact the OWCP, Title of Collection: Notice of Law 20503, Fax: 202–395–6881 (this is not a _ Division of Federal Employees’ Enforcement Officer’s Injury or toll-free number), email: OIRA Compensation if they need further Occupational Disease and Notice of Law [email protected]. Commenters assistance with the claims process. Enforcement Officer’s Death. are encouraged, but not required, to This information collection is subject OMB Control Number: 1240–0022. send a courtesy copy of any comments to the PRA. A Federal agency generally Affected Public: Individuals or to the U.S. Department of Labor- cannot conduct or sponsor a collection Households. OASAM, Office of the Chief Information of information, and the public is Total Estimated Number of Officer, Attn: Information Management generally not required to respond to an Respondents: 10. Program, Room N1301, 200 Constitution information collection, unless it is Total Estimated Number of Avenue NW., Washington, DC 20210, approved by the OMB under the PRA Responses: 10. email: [email protected].

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FOR FURTHER INFORMATION CONTACT: while they undergo review. For DEPARTMENT OF LABOR Contact Michel Smyth by telephone at additional substantive information 202–693–4129 (this is not a toll-free about this ICR, see the related notice Office of the Secretary number) or by email at DOL_PRA_ published in the Federal Register on Agency Information Collection [email protected]. May 22, 2013 (78 FR 30333). Activities; Submission for OMB Authority: 44 U.S.C. 3507(a)(1)(D). Interested parties are encouraged to Review; Comment Request; SUPPLEMENTARY INFORMATION: Employee send comments to the OMB, Office of Attestations by Employers Using Alien Retirement Income Security Act of 1974 Information and Regulatory Affairs at Crewmembers for Longshore Activities section 404(c), 29 U.S.C. 1104(c), the address shown in the ADDRESSES in U.S. Ports provides that, if an individual account section within 30 days of publication of pension plan permits a participant or this notice in the Federal Register. In ACTION: Notice. beneficiary to exercise control over order to help ensure appropriate assets in his or her account and the SUMMARY: The Department of Labor consideration, comments should (DOL) is submitting the Employment participant or beneficiary in fact mention OMB Control Number 1210– exercises such control (as determined and Training Administration (ETA) 0090. The OMB is particularly under DOL regulations), the participant sponsored information collection interested in comments that: or beneficiary shall not be deemed to be request (ICR) revision titled, a fiduciary by such exercise of control • Evaluate whether the proposed ‘‘Attestations by Employers Using Alien and no person otherwise a fiduciary to collection of information is necessary Crewmembers for Longshore Activities the plan shall be liable for any loss or for the proper performance of the in U.S. Ports,’’ to the Office of breach that results solely from this functions of the agency, including Management and Budget (OMB) for exercise of control. Regulations 29 CFR whether the information will have review and approval for use in 2550.404a–5 provides that, when a plan practical utility; accordance with the Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. allocates investment responsibilities to • Evaluate the accuracy of the 3501 et seq.). participants or beneficiaries, the plan agency’s estimate of the burden of the DATES: administrator must take action to ensure proposed collection of information, Submit comments on or before they are provided with sufficient November 29, 2013. including the validity of the information regarding the plan and its methodology and assumptions used; ADDRESSES: A copy of this ICR with investment options, including fee and • applicable supporting documentation; expense information, to make informed Enhance the quality, utility, and including a description of the likely decisions with regard to the clarity of the information to be respondents, proposed frequency of management of their individual collected; and response, and estimated total burden accounts; therefore, the regulation • Minimize the burden of the may be obtained free of charge from the requires a plan administrator to provide collection of information on those who RegInfo.gov Web site at http:// each participant or beneficiary with are to respond, including through the www.reginfo.gov/public/do/ certain plan-related information and use of appropriate automated, PRAViewICR?ref_nbr=201306-1205-008 investment-related information. electronic, mechanical, or other (this link will only become active on the This disclosure requirement is an technological collection techniques or day following publication of this notice) information collection subject to the other forms of information technology, or by contacting Michel Smyth by PRA. A Federal agency generally cannot telephone at 202–693–4129 (this is not conduct or sponsor a collection of e.g., permitting electronic submission of responses. a toll-free number) or sending an email information, and the public is generally to [email protected]. not required to respond to an Agency: DOL–EBSA. Submit comments about this request information collection, unless it is Title of Collection: Disclosures for to the Office of Information and approved by the OMB under the PRA Participant Directed Individual Account Regulatory Affairs, Attn: OMB Desk and displays a currently valid OMB Plans. Officer for DOL–ETA, Office of Control Number. In addition, OMB Control Number: 1210–0090. Management and Budget, Room 10235, notwithstanding any other provisions of 725 17th Street NW., Washington, DC law, no person shall generally be subject Affected Public: Private sector— 20503, Fax: 202–395–6881 (this is not a to penalty for failing to comply with a businesses or other for-profits. toll-free number), email: OIRA_ collection of information that does not Total Estimated Number of [email protected]. Commenters display a valid Control Number. See 5 Respondents: 505,795. are encouraged, but not required, to CFR 1320.5(a) and 1320.6. The DOL send a courtesy copy of any comments Total Estimated Number of obtains OMB approval for this to the U.S. Department of Labor- Responses: 674,975,795. information collection under Control OASAM, Office of the Chief Information Number 1210–0090. Total Estimated Annual Burden Officer, Attn: Information Management OMB authorization for an ICR cannot Hours: 7,100,000. Program, Room N1301, 200 Constitution be for more than three (3) years without Total Estimated Annual Other Costs Avenue NW., Washington, DC 20210, renewal, and the current approval for email: [email protected]. this collection is scheduled to expire on Burden: $257,300,000. FOR FURTHER INFORMATION CONTACT: October 31, 2013. The DOL seeks to Dated: October 24, 2013. Contact Michel Smyth by telephone at extend PRA authorization for this Michel Smyth, 202–693–4129 (this is not a toll-free information collection for three (3) Departmental Clearance Officer. number) or by email at DOL_PRA_ years, without any change to existing [FR Doc. 2013–25688 Filed 10–29–13; 8:45 am] [email protected]. requirements. The DOL also notes that existing information collection BILLING CODE 4510–29–P Authority: 44 U.S.C. 3507(a)(1)(D). requirements submitted to the OMB SUPPLEMENTARY INFORMATION: This ICR receive a month-to-month extension seeks OMB approval for revisions to the

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Employers’ Attestation to Use Alien Interested parties are encouraged to DEPARTMENT OF LABOR Crewmembers for Longshore Activities send comments to the OMB, Office of in U.S. Ports, Form ETA–9033, Information and Regulatory Affairs at Occupational Safety and Health (currently approved under Control the address shown in the ADDRESSES Administration Number 1205–0309) and the Employers’ section within 30 days of publication of [Docket No. OSHA–2009–0045] Attestation to Use Alien Crewmembers this notice in the Federal Register. In for Longshore Activities in the State of order to help ensure appropriate Aerial Lifts Standard; Extension of the Alaska, Form ETA–9033A (currently consideration, comments should Office of Management and Budget’s approved under Control Number 1205– mention OMB Control Number 1205– (OMB) Approval of Information 0352). The information collection is 0309. The OMB is particularly Collection (Paperwork) Requirements required by Immigration and Nationality interested in comments that: Act section 258 (8 U.S.C. 1288) and AGENCY: Occupational Safety and Health regulations 20 CFR 655 subpart F. The • Evaluate whether the proposed Administration (OSHA), Labor. ETA collects the attestations from collection of information is necessary ACTION: Request for public comments. shipping companies seeking to use for the proper performance of the foreign crewmembers for longshore functions of the agency, including SUMMARY: OSHA solicits public work when no U.S. workers are whether the information will have comments concerning its proposal to available. practical utility; extend OMB approval of the This ICR has been classified as a • Evaluate the accuracy of the information collection requirement revision, because the DOL is merging contained in the Aerial Lifts Standard in agency’s estimate of the burden of the two Control Numbers, which will Construction (29 CFR 1926.453). proposed collection of information, simplify the process for both the Employers who modify an aerial lift for stakeholder community interested in including the validity of the uses other than those provided by the these collections and the Federal staff methodology and assumptions used; manufacturer must obtain a certificate reviewing and enforcing the attestations. • Enhance the quality, utility, and from the manufacturer or equivalent Control Number 1205–0352 will survive clarity of the information to be entity certifying that the modification is after the merger. The DOL is also collected; and in conformance with applicable proposing changes to the layout of the • Minimize the burden of the American National Standards Institute forms for ease of review and collection of information on those who (ANSI) standards and that this Standard, completion. Finally, the DOL proposes and the equipment is as safe as it was to add a few new collection fields that are to respond, including through the use of appropriate automated, prior to the modification. will more accurately capture employer DATES: Comments must be submitted and job-related information. The update electronic, mechanical, or other technological collection techniques or (postmarked, sent, or received) by of the forms will, for example, reflect December 30, 2013. current communications methods by other forms of information technology, requesting email addresses rather than e.g., permitting electronic submission of ADDRESSES: fax numbers. responses. Electronically: You may submit comments and attachments This information collection is subject Agency: DOL–ETA. to the PRA. A Federal agency generally electronically at http:// cannot conduct or sponsor a collection Title of Collection: Attestations by www.regulations.gov, which is the of information, and the public is Employers Using Alien Crewmembers Federal eRulemaking Portal. Follow the generally not required to respond to an for Longshore Activities in U.S. Ports. instructions online for submitting information collection, unless it is OMB Control Numbers: 1205–0309 comments. approved by the OMB under the PRA and 1205–0352. Facsimile: If your comments, including attachments, are not longer and displays a currently valid OMB Affected Public: Private Sector— Control Number. In addition, than 10 pages you may fax them to the businesses or other for profits. notwithstanding any other provisions of OSHA Docket Office at (202) 693–1648. law, no person shall generally be subject Total Estimated Number of Mail, hand delivery, express mail, to penalty for failing to comply with a Respondents: 7. messenger, or courier service: When collection of information that does not Total Estimated Number of using this method, you must submit a display a valid Control Number. See 5 Responses: 7. copy of your comments and attachments CFR 1320.5(a) and 1320.6. The DOL to the OSHA Docket Office, OSHA obtains OMB approval for this Total Estimated Annual Burden Docket No. OSHA–2009–0045, U.S. information collection under Control Hours: 8. Department of Labor, Occupational Numbers 1205–0309 and 1205–0352. Total Estimated Annual Other Costs Safety and Health Administration, The current approval for Control Burden: $0. Room N–2625, 200 Constitution Avenue NW., Washington, DC 20210. Deliveries Number 1205–0309 is scheduled to Dated: October 24, 2013. expire on October 31, 2013, and Control (hand, express mail, messenger, and Number 1205–0352 expires October 31, Michel Smyth, courier service) are accepted during the 2014. It should be noted that existing Departmental Clearance Officer. Department of Labor’s and Docket information collection requirements [FR Doc. 2013–25686 Filed 10–29–13; 8:45 am] Office’s normal business hours, 8:15 submitted to the OMB receive a month- BILLING CODE 4510–FP–P a.m. to 4:45 p.m., e.t. to-month extension while they undergo Instructions: All submissions must review. New requirements would only include the Agency name and the OSHA take effect upon OMB approval. For docket number (OSHA–2009–0045) for additional substantive information the Information Collection Request about this ICR, see the related notice (ICR). All comments, including any published in the Federal Register on personal information you provide, are August 8, 2013 (78 FR 48463). placed in the public docket without

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change, and may be made available demonstrates that the manufacturer or files electronically. If you wish to mail online at http://www.regulations.gov. an equally-qualified entity has assessed additional materials in reference to an For further information on submitting a modified aerial lift and found that it electronic or facsimile submission, you comments see the ‘‘Public was safe for use by, or near, workers, must submit them to the OSHA Docket Participation’’ heading in the section of and that it would provide workers with Office (see the section of this notice this notice titled SUPPLEMENTARY a level of protection at least equivalent titled ADDRESSES). The additional INFORMATION. to the protection afforded by the lift materials must clearly identify your Docket: To read or download prior to modification. OSHA is electronic comments by your name, comments or other material in the requesting an adjustment increase in date, and the docket number so the docket, go to http://www.regulations.gov burden hour of 7 hours, resulting from Agency can attach them to your or the OSHA Docket Office at the an increase in the number of field comments. address above. All documents in the modified lifts from 1,025 to 1,953; and docket (including this Federal Register an increase in the percentage of Because of security procedures, the notice) are listed in the http:// construction employers likely to be use of regular mail may cause a www.regulations.gov index; however, inspected from 6% to 6.6%. significant delay in the receipt of some information (e.g., copyrighted comments. For information about II. Special Issues for Comment material) is not publicly available to security procedures concerning the read or download from the Web site. All OSHA has a particular interest in delivery of materials by hand, express submissions, including copyrighted comments on the following issues: delivery, messenger, or courier service, material, are available for inspection • Whether the proposed information please contact the OSHA Docket Office and copying at the OSHA Docket Office. collection requirements are necessary at (202) 693–2350, (TTY (877) 889– You may also contact Theda Kenney at for the proper performance of the 5627). Agency’s functions, including whether the address below to obtain a copy of Comments and submissions are the ICR. the information is useful; • posted without change at http:// FOR FURTHER INFORMATION CONTACT: The accuracy of OSHA’s estimate of the burden (time and costs) of the www.regulations.gov. Therefore, OSHA Theda Kenney or Todd Owen, cautions commenters about submitting Directorate of Standards and Guidance, information collection requirements, including the validity of the personal information such as social OSHA, U.S. Department of Labor, Room security numbers and dates of birth. N–3468, 200 Constitution Avenue NW., methodology and assumptions used; • Although all submissions are listed in Washington, DC 20210; telephone (202) The quality, utility, and clarity of the http://www.regulations.gov index, 693–2222. the information collected; and • Ways to minimize the burden on some information (e.g., copyrighted SUPPLEMENTARY INFORMATION: employers who must comply; for material) is not publicly available to I. Background example, by using automated or other read or download through this Web site. technological information collection The Department of Labor, as part of its All submissions, including copyrighted and transmission techniques. continuing effort to reduce paperwork material, are available for inspection and respondent (i.e., employer) burden, III. Proposed Actions and copying at the OSHA Docket Office. Information on using the http:// conducts a preclearance consultation Type of Review: Extension of a program to provide the public with an www.regulations.gov Web site to submit currently approved collection. comments and access the docket is opportunity to comment on proposed Title: Aerial Lifts Standard in available at the Web site’s ‘‘User Tips’’ and continuing information collection Construction (29 CFR 1926.453) . requirements in accord with the OMB Control Number: 1218–0216. link. Contact the OSHA Docket Office Paperwork Reduction Act of 1995 Affected Public: Business or other for- for information about materials not (PRA–95) (44 U.S.C. 3506(c)(2)(A)). This profits. available through the Web site and for program ensures that information is in Number of Respondents: 128. assistance in using the Internet to locate the desired format, reporting burden Frequency of Responses: On occasion. docket submissions. (time and costs) is minimal, collection Total Responses: 128. V. Authority and Signature instruments are clearly understood, and Average Time per Response: 6 OSHA’s estimate of the information minutes (.10 hour) David Michaels, PhD., MPH, Assistant collection burden is accurate. The Estimated Total Burden Hours: 13. Secretary of Labor for Occupational Occupational Safety and Health Act of Estimated Cost (Operation and Safety and Health, directed the 1970 (the OSH Act) (29 U.S.C. 651 et Maintenance): $0. preparation of this notice. The authority seq.) authorizes information collection for this notice is the Paperwork by employers as necessary or IV. Public Participation—Submission of appropriate for enforcement of the OSH Comments on This Notice and Internet Reduction Act of 1995 (44 U.S.C. 3506 Act or for developing information Access to Comments and Submissions et seq.) and Secretary of Labor’s Order regarding the causes and prevention of You may submit comments in No. 1–2012 (77 FR 3912). occupational injuries, illnesses, and response to this document as follows: Signed at Washington, DC, on October 25, accidents (29 U.S.C. 657). The OSH Act (1) Electronically at http:// 2013. also requires OSHA to obtain such www.regulations.gov, which is the David Michaels, information with minimum burden Federal eRulemaking Portal; (2) by Assistant Secretary of Labor for Occupational upon employers, especially those facsimile (fax); or (3) by hard copy. All Safety and Health. operating small businesses, and to comments, attachments, and other [FR Doc. 2013–25712 Filed 10–29–13; 8:45 am] reduce to the maximum extent feasible material must identify the Agency name unnecessary duplication of efforts in and the OSHA docket number for the BILLING CODE 4510–26–P obtaining information (29 U.S.C. 657). ICR (Docket No. OSHA–2009–0045). The certification requirement You may supplement electronic specified in the Aerial Lifts Standard submissions by uploading document

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DEPARTMENT OF LABOR http://www.reginfo.gov/public/do/ ACTION: Final distribution order. PRAViewICR?ref_nbr=201205-1235- Wage and Hour Division 002). The OMB asked the Department to SUMMARY: The Copyright Royalty Judges RIN 1235–0018 resubmit the information collection announce the final Phase II distribution request upon promulgation of a Final of cable royalty funds for the years 2000, Extension of the Approval of Rule, after considering public comments 2001, 2002 and 2003 for the Program Information Collection Requirements on the December 27, 2011 Notice of Suppliers and Devotional programming Proposed Rulemaking. The Department categories. AGENCY: Wage and Hour Division, published Application of the Fair Labor Department of Labor. Standards Act to Domestic Service; DATES: Effective October 30, 2013. ACTION: Notice. Final Rule, in the Federal Register on ADDRESSES: The final determination also October 1, 2013 (78 FR 60454). At the is posted on the Copyright Royalty SUMMARY: The Paperwork Reduction Act time of publication, the Department Board Web site at http://www.loc.gov/ of 1995 (PRA), 44 U.S.C. 3501 et seq., stated its intent to publish a notice and its attendant regulations, 5 CFR part announcing OMB’s decision regarding crb. 1320, require that the Department the information collection (78 FR FOR FURTHER INFORMATION CONTACT: consider the impact of paperwork and 60497). Richard Strasser, Senior Attorney, or other information collection burdens Notice is hereby given that the OMB Gina Giuffreda, Attorney Advisor. imposed on the public. Under the PRA, has approved the extension of the Telephone: (202) 707–7658; Email: crb@ an agency many not collect or sponsor existing information collections under loc.gov. the collection of information, nor may it control number 1235–0018. The OMB impose an information collection has also pre-approved changes in the SUPPLEMENTARY INFORMATION: On requirement unless it displays a information collections that result from February 10, 2011, the Copyright currently valid Office of Management the Application of the Fair Labor Royalty Judges (Judges) published a and Budget (OMB) control number. See Standards Act to Domestic Service; notice of initiation of Phase II 5 CFR 1320.8(b)(3)(vi). The OMB has Final Rule; these changes become distribution proceedings relating to assigned control number 1235–0018 to effective January 1, 2015. cable retransmission royalties for the Fair Labor Standards Act (FLSA) Dated: October 24, 2013. royalty years 2000 through 2003. 76 FR information collections. In accordance Mary Ziegler, 7590 (Feb. 10, 2011). Participants in the with the PRA, the Department solicited Director, Division of Regulations, Legislation, proceeding included the Motion Picture comments on the FLSA information and Interpretation. Association of America as collections as they were proposed to be [FR Doc. 2013–25598 Filed 10–29–13; 8:45 am] representative of program suppliers changed by a Notice of Proposed BILLING CODE 4510–27–P (MPAA), the Settling Devotional Rulemaking published December 27, Claimants (SDC),1 and Worldwide 2011 (76 FR 81199–200). 44 U.S.C. Subsidy Group LLC d/b/a Independent 3506(c)(2). The Department also Producers Group (IPG).2 IPG- submitted a contemporaneous request LIBRARY OF CONGRESS represented claimants include copyright for OMB review of the proposed Copyright Royalty Board revisions to the FLSA information owners whose works fall within either [Docket No. 2008–2 CRB CD 2000–2003 the Program Suppliers category or the collections, in accordance with 44 3 U.S.C. 3507(d). On February 29, 2012, (Phase II)] Devotional Programming category. the OMB issued a notice that continued Based on the considerations and Distribution of the 2000, 2001, 2002 the previous approval of the FLSA analysis set forth in this Final and 2003 Cable Royalty Funds information collections under the Determination, the Judges conclude that existing terms of clearance. (See OMB AGENCY: Copyright Royalty Board, the distributions at issue in this ICR Reference no. 201205–1235–002 Library of Congress. proceeding shall be:

ALLOCATION IN THE PROGRAM SUPPLIERS CATEGORY

2000 2001 2002 2003 (percent) (percent) (percent) (percent)

MPAA ...... 98.84 99.69 99.64 99.77 IPG ...... 1.16 0.31 0.36 0.23

1 Amazing Facts, American Religious Town Hall, International, The Potter’s House of Dallas, Inc. and Order, Docket No. 2008–2 CRB CD 2000–2003 Inc., Catholic Communications Corporation, The d/b/a T.D. Jakes Ministries, and Zola Levitt (Phase II) (Mar. 21, 2013); Order on Motion by Joint Christian Broadcasting Network, Inc., Coral Ridge Ministries comprise the SDC. Sports Claimants for Section 801(c) Ruling, or in the Ministries Media, Inc., Cottonwood Christian 2 The National Association of Broadcasters as Alternative, A Paper Proceeding in the Phase I Center, Crenshaw Christian Center, Crystal representative of program suppliers (NAB), and Sports Category, Docket No. 2008–2 CRB CD 2000– Cathedral Ministries, Inc., Evangelical Lutheran Joint Sports Claimants (JSC) also filed Petitions to 2003 (Phase II) (May 17, 2013); and Order on Church in America, Faith For Today, Inc., Family Motion for Distribution, Docket No. 2008–2 CRB CD Worship Center Church, Inc. (d/b/a Jimmy Swaggart Participate in Phase II of this proceeding. Issues 2000–2003 (Phase II) (May 23, 2013). Ministries), In Touch Ministries, Inc., It Is Written, relating to claims represented by NAB were 3 Liberty Broadcasting Network, Inc., Rhema Bible resolved prior to the Phase II hearing by agreement. IPG initially asserted that certain of its Church a/k/a Kenneth Hagin Ministries, Joyce See Joint Notice of Settlement (of the Motion Picture represented copyright owners’ works also fell Meyer Ministries, Inc. f/k/a Life in the Word, Inc., Association of America and NAB) (Jan. 26, 2012). within the Sports category. The Judges Oral Roberts Evangelistic Association, Inc., RBC Based on preliminary motions, the Judges resolved subsequently rejected IPG’s claim to any of the Ministries, Reginald B. Cherry Ministries, Ron all issues relating to claimants in the Sports Phase II Sports category royalties. See supra, note Phillips Ministries, Speak the Word Church Programming category. See Memorandum Opinion 2.

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ALLOCATION IN THE DEVOTIONAL CATEGORY

2000 2001 2002 2003 (percent) (percent) (percent) (percent)

SDC ...... 62.86 60.92 58.98 60.92 IPG ...... 37.14 39.08 41.02 39.08

The following findings of fact and programming outside the program’s If representatives of the categories agree, conclusions of law are based upon the original, local broadcast area the CSO the Judges may authorize distribution to evidence introduced at the hearing, the must deposit royalties based on their the categories in the agreed percentages. accepted written and live testimony of gross receipts with the Copyright Office If the representatives do not agree, the the witnesses, the direct and rebuttal semiannually. 17 U.S.C. 111(d)(1). In Judges initiate what has come to be statements of the parties, the July of each year, copyright owners, known as a Phase I distribution precedential guidance discussed in this whose works the CSOs retransmit, file proceeding. The Judges may authorize Final Determination, and consideration claims to the royalties deposited for the partial distributions pending resolution of the economic analyses offered by the previous calendar year. 17 U.S.C. of the controversies, provided that parties. 111(d)(4)(A). Claimants may file sufficient funds remain to cover the amounts in controversy. See 17 U.S.C. I. Background individual claims or joint claims directly, or through an authorized agent. 801(b)(3). Beginning June 3, 2013, the Judges The Judges are charged with The allocation of funds among considered testimony of nine allocation and distribution of the individual claimants within a particular witnesses 4 and concluded with statutory license royalties deposited category occurs in what has been termed argument of counsel on June 6, 2013. with the Copyright Office. 17 U.S.C. Phase II of the distribution proceeding. During the course of the proceeding, the 111(d)(4). By statute and regulation, the Similar to Phase I, if the claimants Judges reviewed written statements, Judges must render a decision and issue agree, the representatives may distribute direct and rebuttal testimony, and ruled a determination regarding distribution funds in accordance with the content of on pre-hearing motions regarding of the collected funds within 11 months the claims and any representation discovery and other issues raised by the of conclusion of a statutorily mandated agreement they may have with the parties. The parties submitted proposed settlement conference. 17 U.S.C. claimants. If the validity or amount of findings of fact and conclusions of law 803(c)(1); 37 CFR 352.2. The settlement a claim, or the claimant’s proportional on June 14. conference in this proceeding took place share of the funds within a category, is On July 10, 2013, the Judges issued to on August 10, 2012. See Order Adopting in controversy, the Judges commence a the parties their Initial Determination. Protective Order and Amending Phase II proceeding to resolve the Pursuant to 17 U.S.C. 803(c)(2) and 37 Discovery Schedule, Docket No. 2008–2 controversies. CFR Part 353, SDC filed a motion for CRB CD 2000–2003 (Phase II), at 3 (July rehearing. After reviewing the motion, B. Guiding Precedent 10, 2012). the Judges denied the motion for Historically, individual and joint Section 111(d)(4) of the Act provides rehearing. Order Denying Motion for claimants have utilized a common that, in the event of a controversy Rehearing, Docket No. 2008–2 CRB CD representative to pursue on their behalf concerning the distribution of royalties, 2000–2003 (Phase II) (Aug. 7, 2013). As collection and distribution of the ‘‘the Copyright Royalty Judges shall, explained in the August 7, 2013 Order, deposited royalties. Each representative pursuant to Chapter 8 of [title 17], the Judges determined that none of the conduct a proceeding to determine the pursues claims within a program grounds set forth in the motion distribution of royalty fees.’’ Unlike category. Distribution proceedings, by constituted the type of exceptional sections of the Act that apply to the convention, have progressed in two case—namely, (1) an intervening change determination of rates, Section phases. In Phase I of the proceeding, in controlling law, (2) the availability of 111(d)(4), which deals with claimants contest the allocation of new evidence, or (3) a need to correct distributions, does not set forth an royalties among the program categories.5 a clear error or prevent manifest economic standard that the Judges shall injustice—warranting a rehearing. Id. apply in order to determine how to 5 In Phase I of the current proceeding, the distribute the royalties. A. Statutory and Regulatory Premises claimants organized themselves into the following claimant categories: devotional programs, sports As the Librarian of Congress Section 111 of the Copyright Act (Act) programs, Canadian programs, commercial (Librarian) 6 has stated: programs, noncommercial television programs, creates a statutory license that permits Section 111 does not prescribe the cable system operators (CSOs) to noncommercial radio broadcast programs, music on all broadcast programs, and program suppliers. See standards or guidelines for distributing retransmit copyrighted works included Distribution of the 2000–2003 Cable Royalty Funds, in broadcast television signals without Distribution order, in Docket No. 2008–2 CRB CD Phase I parties were developed over a number of obtaining the authorization of the 2000–2003, 75 FR 26798 (May 12, 2010). IPG years through a series of settlements by participants owners of those works. When a CSO challenged the category definitions; the Judges in successive royalty distribution proceedings. rejected IPG’s challenge, finding that IPG was 6 retransmits non-exempt broadcast The Librarian was responsible for administering ‘‘collaterally estopped from contesting the the Copyright Arbitration Royalty Panel (CARP) definitions established by the final Phase I process for distributing cable royalties from 1993, 4 Although Mr. Alan Whitt began his testimony, determination’’ since IPG did not file a Petition to when the Copyright Royalty Tribunal (CRT), a the Judges ultimately did not admit it into evidence. Participate in Phase I of the proceeding. See Order predecessor adjudicative body, was abolished, until See 6/6/13 Tr. at 1358–62. By stipulation of the on Motion by Joint Sports Claimants for Section 2005, when the Copyright Royalty Judges program parties, the Judges accepted the written testimony 801(c) Ruling, or in the Alternative, a Paper was established. The Librarian had the obligation of of Mr. Michael Little (but not all exhibits). See Proceeding in the Phase I Sports Category, Docket reviewing CARP decisions and, on recommendation Stipulation Regarding Testimony of Michael D. No. 2008–2 CRB CD 2000–2003 (Phase II), at 2 (May of the Register of Copyrights, adopting, modifying Little (May 31, 2013). 17, 2013). The claims categories adopted by the or rejecting them.

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royalties collected from cable operators the Librarian under the CARP Tribunal, 720 F.2d 1295, 1304 (D.C. Cir. under the statutory license. Instead, Congress system 9—as well as the relevant Federal 1983) (same). decided to let the Copyright Royalty Tribunal court cases. The Judges have identified With the foregoing principles clearly ‘‘consider all pertinent data and several basic principles from these in mind, the Judges apply the considerations presented by the claimants’’ earlier proceedings that have particular appropriate economic analysis to the in determining how to divide the royalties. relevance to the present proceeding. evidence adduced at the hearing. Distribution of 1993, 1994, 1995, 1996 Relative marketplace value is the II. Statement of the Case and 1997 Cable Royalty Funds, Order, preeminent consideration for allocating in Docket No. 2000–2 CARP CD 93–97, shares of royalties to programs or groups A. Phase I Proceeding 66 FR 66433, 66444 (Dec. 26, 2001) of programs. Program Suppliers v. In the Phase I proceeding for the (quoting H.R. Rep. No. 1476, at 97 Librarian of Congress, 409 F.3d 395, 401 7 present case the parties limited by (1976)) (1993–1997 Librarian Order). (D.C. Cir. 2005); 1993–1997 Librarian stipulation the issues to be considered There is not, however, a wholesale Order, 66 FR at 66445. Although early by the Judges. Distribution of the 2000– absence of statutory guidance. Section CRT decisions considered other factors, 2003 Cable Royalty Funds, Distribution 111 directs the Judges to act pursuant to such as the degree of harm to copyright Order, Docket No. 2008–2 CRB CD Chapter 8 of the Act. The Judges are owners by virtue of the statutory 2000–2003, 75 FR 26798, 26799 (May guided by the general directives license, the benefits derived by the CSO, 12, 2010) (Phase I Order). Specifically, contained in Chapter 8. In particular, program quality and program length, the parties stipulated that the Judges Section 801 of the Act provides, in 1986 Determination, 54 FR at 16153, would determine the Phase I share of pertinent part: ‘‘The Copyright Royalty these factors have been deemphasized the Canadian Claimants only, with the Judges shall act * * * on the basis of in later decisions of the CRT, the CARPs remaining balance to be awarded to the * * * prior determinations and and the Librarian. Settling Parties.10 Id. The stipulation interpretations of the Copyright Royalty In order to assess relative marketplace made clear that the parties were not Tribunal, Librarian of Congress, the value the Judges must look to seeking the individual Phase I shares of Register of Copyrights, copyright hypothetical, simulated, or analogous the claimant groups comprising the arbitration royalty panels * * * and the markets, since there is no free market for Settling Parties. Id. Consequently, on Copyright Royalty Judges, * * * and cable retransmission of broadcast May 12, 2010, the Judges announced the decisions of the court of appeals under television programs. See, e.g., 1993– final Phase I shares of the Canadian this chapter.’’ 17 U.S.C. 803(a)(1). 1997 Librarian Order, 66 FR at 66445; Claimants to the cable royalties for the Accordingly, the Judges have 1987 Music Determination, 55 FR at years at issue in this Phase II proceeding reviewed the 12 prior determinations of 11993. While there is no single formula and awarded the remaining balance of Phase II proceedings under Section 111 or source for allocating royalties, see, the 2000–2003 cable royalties to the 8 of the Act—ten by the CRT, and two by e.g., 1993–1997 Librarian Order, 66 FR Settling Parties. Id. at 26807. To date the at 66447, actual measured viewing is Judges have authorized partial 7 The 1993–1997 Librarian Order was vacated as significant to determining relative moot after the parties settled their appeals. distributions ranging from $121.7 marketplace value, id., and viewing data million in 2000 to nearly $131 million Distribution of 1993, 1994, 1995, 1996 and 1997 compiled by The Nielsen Company Cable Royalty Funds, Notice of termination of in 2003. On February 3, 2011, the Judges proceeding, Docket No. 2000–01 CARP CD 93–97, (Nielsen) are a useful starting point for ordered final distribution of all cable 69 FR 23821 (Apr. 30, 2004). The settlement and determining actual viewership. See, e.g., royalties for 2000, 2001, 2002, and 2003 vacatur of the 1993–1997 Librarian Order did not 1986 Determination, 54 FR at 16153. that were no longer in dispute. Order disturb the reasoning articulated therein. Id. at Nevertheless, viewing measurements are 23822. Granting Phase I Claimants’ Motion for not perfect and the Judges must be 8 1979 Cable Royalty Distribution Determination, Further Distribution of 2000, 2001, Notice of final determination, in Docket No. CRT prepared to make appropriate 2002, and 2003 Cable Royalty Funds, 80–4, 47 FR 9879 (Mar. 8, 1982) (1979 adjustments when claimants are able to Determination); 1980 Cable Royalty Distribution Docket No. 2008–2 CRB CD 2000–2003 demonstrate that their programs have (Feb. 3, 2011). On January 17, 2012, the Determination, Notice of final determination, in not been measured or are significantly Docket No. CRT 81–1, 48 FR 9552 (Mar. 7, 1983) Judges denied IPG’s motion for a partial undermeasured. See, e.g., 1987 (1980 Determination); 1981 Cable Royalty distribution of $3 million of the Distribution Determination, Notice of final Devotional Determination, 55 FR at remaining royalties for 2000–2003, determination, in Docket No. CRT 82–1, 49 FR 7845 5650; 1986 Determination, 54 FR at noting that IPG is ‘‘not an established (Mar 2, 1984) (1981 Determination); 1982 Cable 16153–54. Royalty Distribution Determination, Notice of final In making distributions under Section claimant to cable royalties’’ and ‘‘[the determination, in Docket No. CRT 83–1, 49 FR Judges] simply do not know at this stage 37653 (Sept. 25, 1984) (1982 Determination); 1983 111, mathematical precision is not Cable Royalty Distribution Proceeding, Notice of required. Rather, the Judges’ rulings of the proceeding if IPG is entitled to a final determination, in Docket No. CRT 84–1 83CD, must lie with a ‘‘zone of royalty distribution, let alone the 51 FR 12792 (Apr. 15, 1986) (1983 Determination); reasonableness.’’ See National Ass’n of amount.’’ Order Denying Independent 1984 Cable Royalty Distribution Proceeding, Notice Producers Group’s Motion for Partial of final determination in Docket No. CRT 85–4– Broadcasters v. Librarian of Congress, 84CD, 52 FR 8408 (Mar. 17, 1987) (1984 146 F.3d 907, 929 (D.C. Cir. 1998); see Distribution, Docket No. 2008–2 CRB CD Determination); 1985 Cable Royalty Distribution also Asociacion de Compositores y 2000–2003 (Phase II) (Jan. 17, 2012). Proceeding, Notice of final determination, in Docket No. CRT 87–2–85CD, 53 FR 7132 (Mar. 4, 1988) Editores de Musica Latino Americana v. Copyright Royalty Tribunal, 854 F.2d (1985 Determination); 1986 Cable Royalty B. Commencement of Phase II Distribution Proceeding, Notice of final 10, 12 (2d Cir. 1988) (recognizing ‘‘zone determination, in Docket No. CRT 88–2–86CD, 54 of reasonableness’’ standard in Phase II On February 10, 2011, on request of FR 16148 (Apr. 21, 1989) (1986 Determination); proceedings); Christian Broadcasting program suppliers represented by 1987 Cable Royalty Distribution Proceeding, Notice of final determination of Devotional Claimants Network, Inc. v. Copyright Royalty MPAA, SDC, and JSC, the Judges controversy, in Docket No. CRT 89–2–87CD, 55 FR 5647 (Feb. 16, 1990) (1987 Devotional 9 Determination of the Distribution of the 1991 10 Devotional Claimants, JSC, National Determination); 1987 Cable Royalty Distribution Cable Royalties in the Music Category, Docket No. Association of Broadcasters for U.S. Commercial Proceeding, Notice of final determination of music 94–3 CARP CD 90–92, 63 FR 20428 (Apr. 24, 1998) Television Broadcaster Claimants, Music Claimants, controversy, in Docket No. 89–2–87CD, 55 FR 11988 (1990–1992 Determination); 1993–1997 Librarian MPAA, and Public Television Claimants comprised (Mar. 30, 1990) (1987 Music Determination). Order, 66 FR 66433. the ‘‘Settling Parties.’’

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announced initiation of a Phase II Suppliers category and the Devotional to the Judges it is not searchable, and, proceeding and requested Petitions to category. The Judges’ role in this matter, in many cases is nearly illegible. The Participate. See 76 FR 7590 (Feb. 10, therefore, is to determine the relative SDC did not provide a summary or 2011). In response to the notice, the percentage allocations of royalties for analysis of the specific relevant facts to Judges received petitions from: the 2000, 2001, 2002, and 2003 between be gleaned from this stack of paper. By MPAA; SDC; JSC; NAB; Devotional MPAA-represented claimants and IPG- offering evidence in this form, the SDC Claimants; HSN, LP, AST LLC, Home represented claimants in the Program places an unreasonable burden on the Shopping En Espangol [sic] GP, USA Suppliers category and between SDC- Judges and the other parties. The Judges Broadcasting Productions, USA represented claimants and IPG- reject Exhibit 3 to Exhibit 177. The Broadcasting Stations, Studios USA, represented claimants in the Devotional remainder of Exhibit 177 is thus and InterActive Corp., jointly (Joint category. admitted by stipulation, with that Petitioners); and IPG.11 By May 2012, III. Preliminary Rulings 13 redaction. the only remaining Phase II controversies were those asserted by IPG A. Admissibility of Exhibit B. Challenges to Claims Subsequent to the Preliminary Hearing in the Devotional, Sports and Program The SDC, with agreement of IPG, Suppliers categories. offered into evidence Exhibit 177, the To distribute royalties to a copyright C. Preliminary Hearing Written Direct Testimony of Mr. owner under Section 111 of the Michael. D. Little, President and Chief Copyright Act, the Judges must first In August 2012, the remaining Operating Officer of The Christian determine whether the copyright owner participants filed motions or objections Broadcasting Network, Inc. At the is eligible to receive such royalties. relating to the claims asserted by other hearing, IPG objected to the Universal City Studios LLLP v. Peters, participants. The participants made far- admissibility of Exhibit 3 to Mr. Little’s 402 F.3d 1238, 1244 (D.C. Cir. 2005); see ranging objections and submitted papers testimony, which consists of Order Denying Motions to Strike Claims, and arguments to support their approximately 600 pages of printouts of Docket No. 2008–2 CRB CD 2000–2003 objections in a form that the Judges Internet Web sites. IPG objected that (1) (Phase II) at 2 (Sept. 14, 2012). Under could not accept as evidence. As a the veracity of this document, derived the law and regulations in effect through result, the Judges denied all the motions from the Internet, is questionable, (2) July 31, 2004, in order to be eligible to and objections without prejudice and Mr. Little, by his own admission, receive Section 111 royalties, a set the matter for an evidentiary hearing obtained the printouts from an copyright owner (or its duly authorized on claims objections. The Judges undisclosed third party, raising further representative) was required to file a commenced the evidentiary hearing on questions as to the veracity and claim for royalties with the Copyright November 13, 2012, with a continuance authenticity of the Exhibit, and (3) the Office during the month of July in the after two days of testimony to December documents themselves are ‘‘just a bunch year following the year for which the 5, 2012, to complete the participants’ of random stuff without any analysis copyright owner seeks such royalties. 17 presentations of evidence and argument. attached to it.’’ 6/6/13 Tr. at 1341–42. U.S.C. 111(d)(4)(A) (amended 2004); 37 On March 21, 2013, the Judges CFR 252.2 (repealed 2005). Similarly, entered an order resolving most of the The Judges admitted Exhibit 177 and took under advisement admission of the the copyright owner or its duly claims challenges. Memorandum authorized agent must file a Petition to Opinion and Order, Docket No. 2008–2 attendant Exhibit 3. Id. at 1344. IPG’s objections are well-taken.14 The Participate in any cable royalty CRB CD 2000–2003 (Phase II) (March distribution proceedings within thirty 12 SDC did not lay an adequate foundation 21, 2013) (March 21 Order). days after the publication in the Federal Subsequent to the Preliminary for Exhibit 3. Even if SDC had done so, the exhibit is, from a practical Register of a notice of commencement Hearing, the Judges determined that IPG of a proceeding. 37 CFR 351.1(b)(3). had no remaining valid claims to standpoint, unusable. While some of the The Preliminary Hearing in this royalties in the Sports Programming more than 600 pages contain program proceeding led to a resolution of almost category. Order on Motion by Joint information, a great many do not. In the all claims challenges asserted by the Sports Claimants for Section 801(c) format that this document was delivered parties up to that point.15 Ruling or, in the Alternative, a Paper After the 13 During the course of the proceeding, in Preliminary Hearing, some claimants Proceeding in the Phase I Sports correspondence (particularly email Category, Docket No. 2008–2 CRB CD contacted the Judges asserting an correspondence); pleadings; written testimony; live alliance to one representative or the 2000–2003 (Phase II) (May 17, 2013). As testimony; and argument of counsel, certain of the a result, the only remaining Phase I parties raised questions and implied, if not spoken, other. By Order issued on May 20, 2013 categories in dispute were the Program requests for action by the Judges. Except to address (Order to Show Cause), the Judges the MPAA representation issue raised by IPG, see directed the parties to show cause why section III.B.1.a and note 18, infra, the Judges 11 Subsequently, MPAA settled its Phase II decline to take action on issues, substantive or several of the affected claims should not controversies with NAB and the Joint Petitioners, procedural, when those issues are presented be dismissed in light of the copyright see Joint Notices of Settlement (January 26, 2012), informally. The Judges, in this instance, afforded owners’ statements, since it appeared and later with SDC, see Joint Notice of Settlement IPG the benefit of the doubt inasmuch as IPG that either no authorized entity had (May 26, 2012). included the issue in a responsive pleading, albeit filed a claim, or, a timely claim having 12 The March 21 Order resolved all outstanding without a specific affirmative request. Affirmative challenges to the validity of claims, except the action by the Judges without a request for action is been filed, no authorized entity had Judges ordered IPG to obtain written clarification of unwarranted and could be contrary to principles of included the claimant as part of its representation from the Billy Graham Evangelistic due process. The Judges considered other informal Petition to Participate in this Association and sought further briefing relating to requests of IPG and the other participants and proceeding. The Judges received ‘‘Claim 308 from 2000,’’ involving RBC Ministries rejected them on both procedural and substantive in the Devotional category. The Judges validated grounds. additional evidence from the parties at Claim 308 from 2000 by order dated April 10, 2013. 14 These objections, which were properly the beginning of the Determination The Billy Graham organization acknowledged IPG’s interposed by IPG’s counsel, stand in contrast with hearing in order to resolve remaining representative authority for 2002 and 2003, thereby the views that Mr. Galaz offered on the representation issues and ruled on the resolving that controversy in favor of IPG for those admissibility in his written rebuttal testimony. The royalty years. See Letter from Justin T. Arnot to views of a witness on the admissibility of evidence Copyright Royalty Board (Apr. 19, 2013). are improper and the Judges do not consider them. 15 See supra note 12.

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claims from the bench. 6/3/13 Tr. at 53– the filing of claims or in distribution b. Overlapping Claims 58.16 proceedings before the Judges. Both IPG and MPAA have identified Nevertheless, the Judges have stated that 1. Program Suppliers Claims different sets of overlapping claims— ‘‘the parties must manifest in some i.e., claimants that both parties claim to a. MPAA’s Representation of Joint unambiguous manner that they represent. Galaz WRT at 32 n.32 and Ex. Claimants intended for a principal/agent R–11; Kessler WRT at 5. In his written rebuttal testimony, Mr. relationship to exist between them.’’ March 21 Order, at 12. Ultimately the In some instances, claimants assert Raul Galaz of IPG asserts, for the first that they terminated their relationship time in this proceeding, that 615 claims question of authority is a question of fact requiring a weighing of the with IPG either during the years covered represented by MPAA and identified in by this proceeding or thereafter.20 These Exhibit R–15 to his testimony should be evidence. In this proceeding MPAA has claimants stated that they do not want dismissed because MPAA has failed to IPG to continue to represent their produce adequate documentation of its produced fully-executed Representation Agreements with each of the MPAA- interests. In other instances, there are authority to represent the ultimate simply conflicting claims of claimants, i.e., the copyright owners. represented program suppliers. Ex. 500.19 Each Representation Agreement representation, with no further Galaz WRT at 35–38 and Ex. R–15. communication from the claimants.21 Each of the 615 claimants is claimed includes a provision stating that if the indirectly by MPAA. MPAA represents ‘‘Claimant’’ (MPAA’s counterparty) has As to both groups, IPG asserts that the a number of entities that have filed joint filed a joint claim, MPAA is authorized terms of their agreements specify a claims on behalf of other copyright to represent all joint claimants to that termination procedure that requires at owners. MPAA has no contractual joint claim. See, e.g., Ex. 500 at Bates least six months’ notice and authorizes privity with those copyright owners. Its no. MPAA–RP–05219, ¶ 16. Each and obligates IPG to continue pursuit of representation of them is by virtue of its Representation Agreement also includes royalties payable through the representation agreements with joint a provision stating that the Claimant is termination date. As to the first group of claimants who filed on their behalf. the duly authorized representative of all claims, MPAA asserts that the Judges This, in itself, is no impediment to joint claims submitted by the Claimant, should honor the claimants’ wishes to MPAA’s representation. and that the Claimant is authorized by be represented by MPAA rather than The Judges conclude that IPG’s all joint claimants to execute the IPG. MPAA has not addressed the challenge to MPAA’s representation of Representation Agreement on their second group directly. these 615 claimants is not properly behalf. See, e.g., id. at Bates no. MPAA– IPG has invited the Judges to engage before the Judges.17 IPG’s counsel made RP–05219, ¶ 17. See also, 6/3/13 Tr. at in an interpretation of the no motion to strike these claims at any 146–150 (Kessler). By their terms, the representation agreements that it has time during these proceedings. Representation Agreements are entered into with these claimants to Moreover, IPG was in a position to raise perpetual—i.e., they remain effective determine whether a claimant’s these challenges during the preliminary until terminated by one of the parties. purported termination satisfies the hearing and failed to do so in other than Ex. 500 at Bates no. MPAA–RP–05219, requirements of the contract. This sort an incidental way.18 ¶ 18; 6/3/13 Tr. at 157 (Kessler). of contractual interpretation is beyond Even assuming that IPG’s challenges The Judges find this evidence the Judges’ authority. See Nat’l Broad. were properly before the Judges, the sufficient to establish that MPAA is Co. v. Copyright Royalty Tribunal, 848 Judges would have rejected them. The duly authorized to represent the joint F.2d 1289, 1296 (D.C. Cir. 1988) sole ground that IPG asserts for claimants covered by these (Tribunal’s obligation is to set forth the invalidating the claims on Exhibit R–15 Representation Agreements. Further rule of distribution, not resolve is that MPAA has not produced evidence of representation, such as the substantive rights of the parties). Where contracts between third parties—i.e., the contracts between the MPAA- a claimant has unambiguously MPAA-represented program suppliers represented program suppliers and the manifested that it no longer wants a and the individual claimants that the underlying claimants, is unnecessary in particular entity to represent its MPAA-represented program suppliers the absence of any evidence calling into interests in these proceedings, the represent in turn. From this lack of question the authority of MPAA or the Judges will honor that request. To the documentation IPG concludes, and asks joint claimants that it represents—e.g., a extent that the claimant’s action may the Judges to conclude, that MPAA has disavowal of representation by an affect the rights and obligations under a failed to establish that it is a duly underlying claimant or evidence that contract between the claimant and the authorized representative of those the claimant is represented by another entity that purports to represent it, those individual claimants. party. IPG has offered no such evidence issues must be resolved by a court of Neither the Act, nor any of the with respect to the 615 claims that it competent jurisdiction. See Id. regulations adopted under it, address seeks to challenge. Therefore, the Applying this rule, the Judges resolve what evidence is needed to establish challenge, even if IPG had raised it the representation of the overlapping one’s authority to represent claimants in properly, would have been rejected. claims as follows.

16 See Appendix A. 19 Exhibit 500 is a restricted exhibit. See 6/3/13 Fintage, as a representative for Venevision 17 Unlike the claims the Judges addressed in their Tr. at 141. Consequently, access to this exhibit is International, has asserted that MPAA should Order to Show Cause, the Judges received no new limited to only the parties who have executed Non- represent Venevision in these proceedings. In the information following the preliminary hearing that Disclosure Certificates in accordance with the Show Cause hearing several of these claims were Protective Order entered in this proceeding. would cast doubt on the validity of the MPAA dismissed for certain years. See supra note 16. claims that IPG challenges. 20 The following claims fall in this category: 21 The claims falling in this category are: Carol 18 Rather than lodging a formal pleading, IPG DreamWorks LLC, Litton Syndications, Inc., Marty embedded its dissatisfaction with certain MPAA Stouffer Productions, Ltd., Martha Stewart Living Reynolds Productions, Inc., Cinemavault Releasing, claims. Mention of a concern defensively rather Omnimedia, Reel Funds International, Remodeling Eagle Rock Entertainment, Fitness Quest, Inc., than in the form of a motion or cross-motion does Today d/b/a Today’s Homeowner, The Television Integrity Global Marketing, Inc., Pacific Family not present the issue for full consideration by the Syndication Company, United States Olympic Entertainment and Ward Productions. Judges. Committee, and Urban Latino TV LLC. In addition,

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As to the overlapping claims where representative) and a party as the most than oral testimony about the existence there has been no instruction from the persuasive evidence concerning of an agreement. claimant concerning representation, the representation. Admitted written Applying this rule, the Judges resolve Judges will take the later-in-time agreements are deemed more persuasive the representation of the overlapping agreement between a claimant (or its claims as follows.

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DISPOSITION OF OVERLAPPING CLAIMS—NO COMMUNICATION FROM CLAIMANT

Claim year Claimant Rationale 2000 2001 2002 2003

Carol Reynolds Produc- MPAA ...... MPAA ...... MPAA ...... MPAA ...... 2000–2001: Claimant covered by MPAA Represen- tions Inc. tation Agreement with CBC dated 9/25/02; no record evidence of IPG agreement with claimant; IPG concedes MPAA agreement is later in time. Cinemavault Releasing ... MPAA ...... MPAA ...... MPAA ...... MPAA ...... Claimant covered by MPAA Representation Agree- ment with AFMA dated 9/24/02; no record evi- dence of IPG agreement with claimant; IPG con- cedes MPAA agreement is later in time. Eagle Rock Entertain- MPAA ...... MPAA ...... MPAA ...... MPAA ...... Claimant covered by MPAA Representation Agree- ment. ment with Audio-Visual Copyright Society dated 9/25/02; no record evidence of IPG agreement with claimant; IPG concedes MPAA agreement is later in time. Fitness Quest Inc ...... MPAA ...... MPAA ...... MPAA ...... MPAA ...... Claimant covered by MPAA Representation Agree- ment with The Goodman Group dated 7/8/04; no record evidence of IPG agreement with claimant; IPG concedes MPAA agreement is later in time. Integrity Global Marketing MPAA ...... MPAA ...... MPAA ...... MPAA ...... Claimant covered by MPAA Representation Agree- Inc. ment with The Goodman Group dated 7/8/04; no record evidence of IPG agreement with claimant; IPG concedes MPAA agreement is later in time. Pacific Family Entertain- Dismissed .... MPAA ...... MPAA ...... MPAA ...... Claimant covered by MPAA Representation Agree- ment. ment with ComPact Collections dated 7/8/02; no record evidence of IPG agreement with claimant; IPG concedes MPAA agreement is later in time. Claimant not covered by MPAA petition for 2000. Ward Productions ...... MPAA ...... MPAA ...... MPAA ...... MPAA ...... Claimant entered into Representation Agreement with MPAA dated 9/27/02; no record evidence of IPG agreement with claimant; IPG concedes MPAA agreement is later in time.

c. Claim(s) for BBC Worldwide it is represented by IPG. Notice IPG, however, mistakenly identified Americas, Inc. Regarding Representation of BBC its client as BBC–W, rather than BBC– An additional claimant—BBC—falls Worldwide Americas, Docket No. 2008– WA, in its Petition to Participate. Any into its own category. Both MPAA and 2 CRB 2000–2003 (Phase II) (May 21, claimant in a distribution proceeding IPG have included BBC Worldwide 2013) (BBC Notice). must file a Petition to Participate. 37 (BBC–W) in their respective Petitions to IPG filed claims on behalf of BBC–W CFR 351.1 (a). Section 354.1(b)(2) Participate. Fintage Publishing and for 2000, and on behalf of BBC–WA for requires parties to a proceeding to file Collections BV (Fintage) advised the 2001–2003. Fintage filed a claim on a Petition to Participate within 30 days Judges that it had the exclusive right to behalf of BBC–W for 2002. BBC–WA of commencement of the proceeding, administer and collect royalties on filed its own claims for 2000 and 2001. providing detail concerning the behalf of its client, EGEDA, and EGEDA, No claims were filed on behalf of BBC– participant or claimants the participant in turn, had such rights with respect to W for 2001 or 2003. is representing in a joint petition. The BBC–W. Notice Regarding This appears to be a case of mistaken Judges may accept late petitions up to Representation of BBC Worldwide, identity on IPG’s part. BBC–WA’s a date that is no less than 90 days before Venevision International, and Reel General Counsel has clarified that BBC– the date set for filing written direct Funds International, Docket No. 2008– W (or, to be precise, BBC Worldwide statements. 37 CFR 351.1(d). That date 2 CRB CD 2000–2003 (Phase II) (May 9, Limited) is a separate entity from BBC– is long past. It is now too late to rectify 2013). Fintage advised the Judges that it WA. BBC Notice, at 2. IPG’s relationship IPG’s error by adding a new claimant to wished to have MPAA represent this is with BBC–WA, not BBC–W. Fintage’s these proceedings. BBC–WA is not a claimant’s interests in the proceedings. relationship is with BBC–W (through Id. at 1, 3. Subsequently, the General EGEDA), not with BBC–WA. These are represented claimant in this proceeding, Counsel of BBC Worldwide Americas, separate claimants with separate claims. and IPG’s mistaken claim for BBC–W is 22 Inc. (BBC–WA) advised the Judges that There is no overlap. dismissed.

22 The Judges note that this ruling is contrary to the ruling from the bench regarding BBC–WA that was made during the Show Cause hearing. See 6/ 3/13 Tr. at 57. Upon further reflection and examination of the record the Judges conclude that their earlier determination was incorrect.

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As to MPAA’s representation of BBC– inclusion in a Petition to Participate— BBC–W in its petition is 2002 (through W, the only year for which both have been met is 2002. No claims were its inclusion of Fintage which, in turn, predicates for representation in this filed for BBC–W in 2001 and 2003. The listed BBC–W in its joint claim). In proceeding—filing of a valid claim and only year in which MPAA included summary:

DISPOSITION OF CLAIMS INVOLVING BBC ENTITIES

Claim year Claimant 2000 2001 2002 2003

BBC Worldwide ...... Dismissed .... Dismissed .... MPAA ...... Dismissed. BBC Worldwide Americas ...... Dismissed .... Dismissed .... Dismissed .... Dismissed.

Nearly all of the disputed claims are a distant basis during the claim years in copyright holders yet coupling those thus resolved in MPAA’s favor (apart they challenge. 6/5/13 Tr. at 905 (Galaz). rights with statutory licenses has the from Reel Funds and Venevision, which Rather, IPG argues that the claims virtue of mitigating the exercise of have an insignificant effect on the should be dismissed because the monopoly power and minimizing the relative shares 23). The Judges conclude specific example of a broadcast the transaction costs of negotiations.’’); S. that the dismissal of BBC–W (one Devotional claimants cited in their Willard, A New Method of Calculating MPAA-represented claimant out of claims did not take place as described Copyright Liability for Cable approximately 1400) for three claim on the claim form. The Judges rejected Rebroadcasting of Distant Television years does not have a material effect on that argument as a basis for challenging Signals, 94 Yale L.J. 1512, 1519 (1985) the relative shares.24 Similarly, the the validity of claims in the March 21 (‘‘One important reason for compulsory dismissal of two of IPG’s claimants Order, and would do so now as well if licensing * * * was to avoid the (BBC–WA for all claim years and IPG’s challenge were timely. ‘prohibitive’ transaction costs of Venevision for 2000) out of more than IV. Analysis negotiating rebroadcast consent.’’); S. 150 does not have a material effect on Beser, W. Manning & B. Mitchell, the relative shares. As for the allocation A. Economic Issues Copyright Liability for Cable Television: of the disputed claims to MPAA, 1. Relative Market Value Standard Compulsory Licensing and the Coase MPAA’s expert witness on economics Theorem, 21 J.L. & Econ. 67, 87 (1978) Despite the absence of a defined and econometrics, Dr. Jeffrey Gray, (‘‘Compulsory licensing * * * has statutory standard, as noted above the credited all of them to MPAA in his lower negotiating costs than a system computation of relative shares, 6/4/12 Judges do not write on a clean slate. More particularly, prior Phase II based on full copyright liability Tr. at 513 (Gray), so there is no need to * * *.’’). The statutory license avoids make any adjustment to reflect that determinations in cable retransmission proceedings have referred to a ‘‘relative this feared breakdown in the contracting resolution. In sum, the Judges conclude process by allowing copyright use to be that no adjustment to the relative market value’’ standard, although undertaken ex ante payment—thereby royalty shares of IPG and MPAA is ‘‘relative market value’’ has not been permitting consumers to obtain the needed as a result of the foregoing defined explicitly. In order to make enjoyment (‘‘utility,’’ in economic determination of claims. explicit the Judges’ application of the relative market value standard in the terminology) of viewing the copyrighted 2. Devotional Programming Claims present Determination, the Judges begin work—with the price to be paid to the IPG challenged 42 of the SDC’s by expressly defining relative market individual copyright owner ex post claims 25 for the first time in Mr. Galaz’s value. viewing. rebuttal testimony. As with IPG’s 2. Definition of ‘‘Relative Market Value’’ The Judges begin parsing the phrase challenge to 615 of MPAA’s claims, ‘‘relative market value’’ by considering these challenges are not properly before At the outset, it is necessary to the word ‘‘relative.’’ The fact that the the Judges. IPG’s counsel made no appreciate the reason for the statutory Phase II categories are finite (the motion to strike these claims at any time license and the concomitant distribution allocation among categories having been during this proceeding, and IPG was in proceedings. Statutory licenses finalized in Phase I), indicates that the a position to raise these challenges substitute for free market negotiations word ‘‘relative’’ is intended to denote during the Preliminary Hearing (when because of a perceived intractable that the value of any retransmitted IPG challenged eighteen of the SDC’s ‘‘market failure’’ inherent in the program is to be determined in relation claims) and failed to do so. licensing of copyrights—particularly the to the value of all other programs in the Moreover, IPG does not (and cannot) assumed prohibitively high ‘‘transaction respective Phase I categories. allege that the SDC’s claims are for costs’’ of negotiating a multitude of programs that were not retransmitted on bilateral contracts between potential The next two words in the phrase— sellers and buyers.26 See, e.g., R. Picker, ‘‘market value’’—are typically construed 23 Dr. Gray recalculated the royalty shares with Copyright as Entry Policy: The Case of together. Further, ‘‘market value’’ is Reel Funds and Venevision allocated to IPG. The Digital Distribution, 47 Antitrust Bull. traditionally stated in decisional and shares did not change to the second decimal place. 423, 464 (2002) (‘‘The modern structure administrative law more fully as ‘‘fair 6/4/13 Tr. at 490 (Gray). market value.’’ The Supreme Court has 24 The remaining MPAA claims that were of * * * validating or conferring rights dismissed were not included in MPAA’s petition or defined ‘‘fair market value’’ as ‘‘the Dr. Gray’s calculations. 26 Notwithstanding the compulsory nature of price at which the property would 25 Mr. Galaz claims to challenge 44 claims that statutory licenses under the Copyright Act, in most change hands between a willing buyer appear in Exhibit R–2 to his written testimony. contexts, the Act requires the Judges to consider the and a willing seller, neither being under Only 43 claims appear in that exhibit, one of which evidentiary value of directly negotiated licenses in IPG challenged unsuccessfully in the Preliminary setting rates and terms for royalty fees and in any compulsion to buy or sell and both Hearing. determining distributions of those fees. having reasonable knowledge of

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relevant facts.’’ U.S. v. Cartwright, 411 CSO earns from retransmitted c. ‘‘Neither Being Under Any U.S. 546, 551 (1973). broadcasts is a consequence of the Compulsion To Buy or Sell’’ Dr. Gray defined relative market value impact of the retransmissions on the The ‘‘compulsion’’ limitation within in his Written Direct Testimony as ‘‘the sale of subscriptions to its cable bundles the definition of ‘‘fair market value’’ is price at which the right to transmit a (packages or tiers). This is in contrast to often treated as a truism and thus not program carried on a distant broadcast the terrestrial commercial television subject to analysis. Here, in the actual signal would change hands between a station whose signal is being (i.e., non-hypothetical) market, any willing buyer (a CSO) and a willing retransmitted, and whose revenues are program available for purchase by the seller (a copyright owner), neither being received from advertisers.29 CSO already has been pre-bundled by under any compulsion to buy or sell.’’ To the CSO, the program offered by the terrestrial broadcast station into that Gray WDT at 7–8; see also 6/4/13 Tr. at station’s signal. The CSO cannot 27 the Copyright Owner is an input—a 445–46 (Gray). selectively purchase for retransmission The Judges note that application of factor of production—utilized to create some programs broadcast on the these definitions to the present dispute the product that the CSO sells to its retransmitted station and decline to is neither simple nor obvious. More customers, viz., the various subscription purchase others; rather, the signal is particularly, it is necessary to further bundles of cable channels. In a purchased in toto. 17 U.S.C. 111(c)(3). define the various terms that comprise hypothetical program market, a CSO Is this required bundling a form of the foregoing definition of relative would buy a program license for ‘‘compulsion’’ upon the CSO? It is market value, which the Judges retransmission, as it would purchase compelled to take every program pre- undertake below. any factor of production, up to the level bundled on the retransmitted distant a. The Hypothetical Willing Seller (the at which that ‘‘factor price’’ equals the station, despite the fact that the various Copyright Owner) ‘‘Marginal Revenue Product’’ (MRP) of pre-bundled programs would each add The copyright owner seeks to that program. In simple terms, this different monetary value (or zero value) maximize profit from the licensing of means that a CSO in a competitive in the form of new subscriber volume, the program to the CSO. Since the factor market would only pay a price for subscriber retention, or higher copyright owner’s marginal costs are a program if the revenue that the CSO subscription fees. Indeed, some low and approaching zero (most of the can earn on the next (marginal) sale of programs on the retransmitted station costs incurred in creating the work are the final product is at least equal to that may have so few viewers that the CSO— sunk, fixed costs), this means simply price. In practical terms, why would a if it had the right—would decide not to that the copyright owner wants to CSO pay $50,000 to retransmit a purchase such low viewership maximize the revenue it receives from programs. program that the CSO estimates would Further, certain programs may have the CSO as a result of the retransmission add only $40,000 to the CSO’s more substantial viewership, but that of its program over the distant broadcast subscriber revenue? See Beser, et al., viewership might merely duplicate signal by that CSO. Given the minimal supra, at 80 (‘‘To the cable system the viewership of another program that marginal costs and the ‘‘public good’’ value of carrying the signal is equal to generates the same sub-set of aspect of a copyrighted work, the the revenue from the extra subscribers subscribers. For example, copyright owner, as the hypothetical that the programming will attract and hypothetically, the viewers of reruns of willing seller, will always have an any higher subscriber fees it can charge the situation comedy ‘‘Bewitched’’ may incentive to sell at some positive price, less the additional costs of importing all be the same as the viewers of reruns but will likely engage in bargaining the program.’’).30 of ‘‘I Dream of Jeannie,’’ a similar whereby the copyright owner threatens supernatural-themed situation comedy. to refuse to grant the license unless its pertinent experience in connection with the However, ‘‘Bewitched’’ may have fewer (undisclosed) reservation price is negotiation of copyright licenses, 6/5/13 Tr. at 928– viewers than ‘‘I Dream of Jeannie.’’ The offered. See Beser, et al, supra, at 81 29 (Galaz); 6/6/18 Tr. at 1218–20 (Robinson); 6/4/ hypothetical, rational profit-maximizing (When the CSO fails to offer a price 13 Tr. at 439 (Gray), and none of those witnesses CSO that had already paid for a license which the hypothetical seller requires, offered any competent evidence as to how a CSO actually makes programming decisions. IPG to retransmit ‘‘I Dream of Jeannie’’ ‘‘the program supplier * * * will simply attempted to introduce only the written testimony would not also pay for ‘‘Bewitched’’ in refuse to allow the cable system to carry of a producer of a syndicated children’s show, Mr. this hypothetical marketplace, because the program’’). Thomas Moyer, who claimed to have knowledge of it fails to add marginal subscriber the relative unimportance of viewership/ratings to 31 b. The Hypothetical Willing Buyer (the CSOs. (The parties were unable to arrange for a de revenue for the CSO. Rather, the CSO) 28 bene esse deposition of Mr. Moyer to perpetuate his rational CSO would seek to license and testimony. He was subpoenaed by MPAA to testify retransmit a show that marginally For the CSO, the economics are less in person at the hearing, but he did not appear. increased subscriber revenue (or straightforward. The revenue that the Accordingly, the Judges did not admit Mr. Moyer’s Written Rebuttal Testimony. 6/6/13 Tr. at 1288–98; volume, if market share was more 27 Although the Judges generally agree with Dr. 1302–04. We note, though, that Mr. Moyer’s written important than profit maximization), Gray’s application of the definition of ‘‘fair market testimony indicated that he lacked the experience even if that program had lower total value’’ to the definition of ‘‘relative market value,’’ necessary to provide the Judges with competent viewership than ‘‘Bewitched.’’ the Judges note that Dr. Gray omitted from the latter testimony regarding the programming decision- If the Judges were to measure making process of a CSO.). the requirement that the parties have ‘‘reasonable ‘‘relative market value’’ in these knowledge of relevant facts.’’ This condition is 29 Since CSOs must retransmit a station’s signal important because issues regarding the hypothetical in its entirety (including advertisements) without instances solely by viewership of the parties’ knowledge of such facts as viewership alteration, it cannot sell advertising on programs actually retransmitted, then levels and CSO program bundling strategies are retransmitted broadcast channels. 17 U.S.C. the valuation process would arguably relevant to this Determination, as discussed in the 111(c)(3). fail the ‘‘non-compulsion’’ requirement analysis of the IPG Methodology, infra. 30 If the CSO, as a program purchaser, had some 28 Dismayingly, none of the parties proffered degree of monopsony power in the factor market, of the ‘‘fair market value’’ standard admissible testimony (written or oral) of a witness it could pay less than a price equal to MRP, but still with knowledge of CSO programming. Both Mr. would buy programs in a quantity at which MRP 31 Indeed, this notion is akin to the Galaz and Dr. Robinson, on behalf of IPG, and Dr. would equal the Marginal Cost of an additional ‘‘displacement’’ argument advanced in the present Gray, on behalf of MPAA, noted their lack of program. proceeding by IPG. Galaz WRT at 14.

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identified by Dr. Gray. Why should a hypothetical bundle of programs; and systems from 2000 through 2003. Ms. CSO (hypothetically) be compelled to (3) the absence of compulsion requires Kessler, believing they were not pay for a program based on its higher that the terrestrial stations’ initial compensable in the Program Suppliers viewership, but which adds less value bundling of programs does not affect the category, then excluded Canadian, than another show with lower marginal profit-maximizing decisions of Mexican, and public television viewership? By extension, why should the hypothetical buyers and sellers.33 stations.37 Ms. Kessler ranked stations the Judges, in this distribution according to the number of distant B. Analysis of Parties’ Proposals proceeding, establish program value subscribers and then selected her solely as if such compulsion were 1. Program Suppliers Category sample stations based on a combination present? a. Description of the MPAA of fees generated and distant Simply put, the hypothetical, rational Methodology and Proposed Allocation subscribers. Finally, because the Nielsen profit-maximizing CSO would not pay ratings do not differentiate between copyright owners based solely on levels As in past distribution proceedings, distant and local viewing, Ms. Kessler of viewership. Rather, the hypothetical MPAA’s calculation of relative market performed a local county analysis for CSO would (i) utilize viewership value is based almost exclusively upon each sample station to identify local principally as a heuristic to estimate estimated levels of viewership of the county viewing data for each station so how the addition of any given program distantly retransmitted programs, as 34 that it could be filtered out by Nielsen. might change the CSO’s subscriber based on data received from Nielsen. 6/3/13 Tr. at 114–27 (Kessler); Kessler revenue, (ii) attempt to factor in the MPAA contends that program WDT at 11–13 and Appendices D, E, economics of various bundles; and (iii) viewership provides a direct and and F. The Kessler Sample was not (and pay for a program license (or eschew reasonable measure of program market was not intended to be) a random purchasing that license) based on that value, especially because the allocation sample. 6/3/13 Tr. at 122–25 (Kessler). analysis. of MPAA Program Suppliers’ royalties Ms. Kessler forwarded the Kessler On the other side of the coin, is the in this Phase II proceeding involves Sample stations to Nielsen, instructing seller, i.e., the copyright owner, under examination of relatively homogeneous 35 Nielsen to measure viewing only in the any ‘‘compulsion’’ to sell? In the actual programming. Gray WDT at 3. counties identified by MPAA as outside The initial steps of MPAA’s proposed market, one in which the terrestrial the originating station’s local county relative market value calculation entail station signal is acquired in a single viewing area.38 Ms. Kessler further selection of a sample of television specific bundle by the CSO, the answer instructed Nielsen to place the stations whose programming would be appears to be yes, there is programming in one of the eight Phase the basis for the remuneration of ‘‘compulsion.’’ The copyright owner I categories. 6/3/13 Tr. at 114–27 royalties to MPAA-represented cannot carve out its program and seek (Kessler); Kessler WDT at 13–14. claimants (Kessler Sample). Ms. Marsha to maximize its value independent of Mr. Paul Lindstrom, Senior Vice Kessler, a former executive of MPAA, the pre-packaged station bundle in President at Nielsen, testified that testified that she obtained from Cable which it exists. Nielsen provided MPAA with so-called Data Corporation (CDC) 36 a listing of Of course, in the ‘‘hypothetical ‘‘diary data’’ for each of the Kessler broadcast stations that were market’’ that the Judges are charged Sample stations measuring viewing in retransmitted as distant signals by cable with constructing, it would be non-local counties during sweeps inappropriate not to consider the periods.39 inherent bundling that would occur. 33 A focus on marginal costs and benefits is not That is, the bundling decision is a only efficient for the hypothetical buyers and sellers, but also for the consuming public: ‘‘Optimal 37 Some programs broadcast on Canadian and ‘‘feature’’ rather than a ‘‘bug’’ in even a program diversity will result if cable operators and Mexican stations are, in fact, compensable in the hypothetical market in which the the public they serve pay to copyright owners the Program Suppliers category. This issue is discussed statutory license framework does not marginal value derived from viewing syndicated infra. exist. Thus, while the copyright owner programming.’’ Willard, supra, at 1518. 38 Nielsen data are recorded on a county-by- 34 Nielsen ratings are a statistical estimate of the county basis. MPAA provided Nielsen with its list could offer to supply its program at a number of homes tuned to a program based upon of distant viewing counties to enable Nielsen to given price, the equilibrium market a sample of television households selected from all produce estimates of distant cable viewing to the price at which supply and demand television households. The findings within the Kessler Sample stations. Nielsen conducted this would intersect would reflect the CSO’s sample are ‘‘projected’’ to national totals. A rating custom analysis for MPAA. Lindstrom WDT at 5; measures what percentage of the universe of 6/3/13 Tr. at 288 (Lindstrom). demand schedule, which is based in television households are tuned in to a program. 39 During 2000–2003, Nielsen utilized two basic part upon the fact that the buyer, i.e., Lindstrom WDT at 3. data collection instruments in its syndicated the CSO, would pay only a price that is 35 Dr. Gray tested this conclusion through a three- services: Meters and diaries. Lindstrom WDT at 4. equal to (or less than) the MRP of that step estimation approach. First, Dr. Gray calculated A set meter is an electronic device attached to a the relative volume of MPAA programming and IPG television set in a particular household that detects program in a bundle to be purchased by programming. Second, Dr. Gray calculated the the channel to which the television is tuned. The 32 subscribers. relative viewership of MPAA programming and IPG data from these set meters are converted into To summarize, the hypothetical programming (as described infra). Third, Dr. Gray household ratings. Nielsen collected household market the Judges will apply in this examined statistically whether, given the same level meter data year-round in a random sample of Determination contains the following of viewership, MPAA and IPG programming affect households in selected geographic markets across subscriber growth differently. Dr. Gray the United States, i.e., Nielsen’s metered markets, participants and elements: (1) The hypothesized that, in the absence of a meaningful during 2000–2003. Lindstrom WDT at 4; Gray WDT hypothetical seller is the owner of the difference in how the two sets of programs affect at 15–16, 18–19. copyrighted program; (2) the subscriber growth, viewership is the most Diaries are paper booklets in which each person hypothetical buyer is the CSO that economically sound measure of relative market in the household records viewing information. In value. Gray WDT at 14–15. 2000–2003, diary data were collected in Nielsen’s acquires the program as part of its 36 CDC collects and analyzes information on diary markets during the months of November, Statements of Account (SOAs) that cable systems February, May, July, and in some cases October and 32 As discussed below, IPG suggests the need for file with the Licensing Division of the Copyright March, which are also known as the ‘‘sweeps’’ such a bundling-based analysis. However, as also Office. CDC makes the collected information ratings periods (Nielsen Diary Data). Nielsen mailed discussed below, the IPG Methodology itself fails to available to users by purchase, either on an as- seven-day diaries to homes randomly selected by address the economics of bundling and thus serves needed basis or by subscription. CDC is the only Nielsen to keep a tally of when each television in only as a weak counter-argument to MPAA’s company providing such a service. Martin WDT at the household was on, what it was tuned to, and viewer-centric analysis. 1–2. Continued

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MPAA also retained the services of at 250–51 (Patterson).42 Thus, Reznick day, seven days a week, and 12 months the Reznick Group P.C. (now known as was able to identify the potentially a year (Local Ratings Data), for the Gray CohnReznick LLP) (Reznick) to match compensable broadcasts of MPAA titles Sample stations; (4) Tribune Data, title information provided by MPAA to that aired on the Kessler Sample and including the program title, time of compensable retransmissions of Gray Sample stations. Patterson WDT at broadcast, information on the station, television broadcasts. Mr. Kelvin 5. whether or not the station was a Patterson of Reznick testified that he MPAA retained Dr. Gray to design an network affiliate, the type of and his team at Reznick conducted two allocation methodology and compute programming, the actors and directors analyses for MPAA—one based on the results of that methodology (the and other information about the Tribune Media Services (Tribune) data MPAA Methodology). 6/4/13 Tr. at 440 program, for every broadcast in the and the other based on MPAA title (Gray). Dr. Gray testified that his Kessler Sample stations and Gray information provided to Reznick by analysis seeks to determine the ‘‘relative Sample stations; and (5) the Reznick MPAA. The first required Reznick to market value’’ of copyrighted programs data analyses, in the form of a list of examine broadcast television station based on an econometric model of MPAA compensable programming, logs provided by Tribune for the Kessler estimating viewership that takes into based upon start time, date and station, Sample stations and a separate set of account program characteristics and and a separate list of IPG compensable sample stations provided by MPAA’s popularity that affect the program’s programming, based upon start time, economics expert, Dr. Jeffrey Gray (Gray predicted relative viewership. His date and station. 6/4/13 Tr. at 447–50 Sample), for each of the years 2000, approach analyzes program volume, (Gray). 2001, 2002 and 2003, and exclude those program viewing and the number of Dr. Gray analyzed the relationship program titles that are not compensable subscribers for the Gray Sample—a between distant viewing and local for purposes of this proceeding in the stratified random sample of 120 stations ratings, holding constant the number of Program Suppliers category: (1) generated by Dr. Gray from CDC data for distant subscribers, which, Dr. Gray Programs identified in the Tribune Data each year from 2000 to 2003. Gray WDT posited, is equivalent to examining as broadcast type ABC, CBS and NBC at 3, 9; Gray WRT at 25, 30. distant ratings and local ratings. Dr. (i.e., network programming); 40 (2) Dr. Gray relied upon five data sources Gray testified that he found a positive programs airing on WGN’s local feed in creating and applying the MPAA and strong statistically significant (WGN-local) that were not Methodology: (1) CDC data for all cable relationship between distant viewing simultaneously broadcast on WGN’s system operators in the United States and local ratings. After establishing this national feed (WGN–A); and (3) who distantly retransmitted broadcast correlation, Dr. Gray built his full programs not identified by Tribune as a signals, which included information econometric model combining all of the series, special, movie, documentary or about the signals they distantly five data sets he identified in his written ‘‘other.’’ Patterson WDT at 2–3. retransmitted as well as the total testimony.43 Dr. Gray then utilized a The second analysis conducted by number of distant subscribers to those multiple regression analysis to predict Reznick involved using a computer to signals; (2) a custom analysis of Nielsen distant viewing for every single quarter electronically compare a list of program Diary Data, prepared by Mr. Lindstrom, hour, for every single program, 24 hours titles claimed by MPAA-represented which shows the viewing of distant a day, seven days a week, 12 months a claimants, prepared and provided by retransmissions of the Kessler Sample year, for all four years.44 6/4/13 Tr. at MPAA,41 with the refined Tribune data stations during Nielsen’s ‘‘sweeps’’ 465–67 (Gray). to identify every distant retransmission periods; (3) information from Nielsen’s Based on his analysis, Dr. Gray of each MPAA title on the Kessler local ratings, derived from individual calculated the viewership (and Sample stations and the Gray Sample television electronic meters, provided distribution) shares of MPAA and IPG stations. Patterson WDT at 3; 6/3/13 Tr. on a quarter-hour basis, for 24 hours a programming as follows.45

MPAA PROPOSED VIEWERSHIP AND DISTRIBUTION SHARES

2003 2000 2001 2002 (percent)

MPAA ...... 98.93 99.72 99.69 99.80 IPG ...... 1.07 0.28 0.31 0.20

who in the household was watching. Over the certification report listing the titles that it believed 43 These data sets provided Dr. Gray with course of a four-week sweeps period, Nielsen were attributable to the claimant, and supplied a information on distant viewing, local ratings, the mailed diaries to a new panel of randomly selected certification form for the claimant to sign verifying number of distant subscribers, the quarter hour of homes each week. At the end of each sweeps that it has the right to claim retransmission royalties the day the broadcast took place, station affiliation, for the works listed. Each claimant was instructed period, all of the viewing data from the individual and which programs were compensable in these to strike through any titles for which it was not weeks were aggregated into Nielsen’s database. proceedings. Each sweeps period yielded a sample of entitled to claim retransmission royalties. Kessler 44 All of Dr. Gray’s calculations of program approximately 100,000, aggregating to 400,000 WDT at 9–10. 42 viewing were based on the Gray Sample. The households over the course of a year. Lindstrom To the extent the comparison analysis WDT at 4; Gray WDT at 15–16; 6/3/13 Tr. at 290, conducted by Reznick left programs that did not Kessler Sample was merely used to make 296–98, 312 (Lindstrom). match, Reznick conducted a manual matching projections of distant viewing from the Local exercise. As part of this manual matching exercise, 40 In fact, Reznick failed to exclude the network Ratings Data. 6/4/13 Tr. at 452–54 (Gray). whenever Reznick found titles that appeared to be 45 The lower and upper bounds of the 95% programming and this task was performed by Dr. a match, it would check for other examples of the confidence intervals for the estimates of MPAA’s Gray. 6/3/13 Tr. at 246–48 (Patterson); 6/4/13 Tr. at same or similar program titles manually inspecting 488–89 (Gray). each to determine if the programs were in fact a viewership shares for each year are: For the year 41 The MPAA list of titles was compiled initially match. For non-English programs, Reznick 2000, 98.84% to 99.03%; for the year 2001, 99.69% through program title information that was employed a native Spanish speaker to assist in the to 99.75%; for the year 2002, 99.64% to 99.74% and submitted by the claimants it represents and from manual matching exercise. 6/3/13 Tr. at 273–74 for the year 2003, 99.77% to 99.83%. Gray WRT at its own research. MPAA then prepared a (Patterson). 26 n.25. 6/5/13 Tr. at 754–58 (Gray).

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Gray WRT at 26. ‘‘zero households’’ had viewed a of available stations. 6/4/13 Tr. at 393 particular program over the entirety of (Lindstrom). Thus, it would be (1) Evaluation of the MPAA the sampling period, i.e., the sweeps expected, not anomalous, for Nielsen to Methodology period at issue. Although both Mr. Galaz record some zero viewing for any given IPG opposes a relative market value and IPG’s economist, Dr. Laura quarter-hour period within the diary assessment based solely on Nielson Robinson, were critical of the high sampling (sweeps) period. viewership data. One broad attack by incidence of ‘‘zero viewing’’ sampling Despite these reasonable and credible IPG on the use of Nielsen viewership points, Dr. Robinson proffered no explanations of the ‘‘zero viewing’’ data is that the data do not exist until evidence, 6/6/13 Tr. at 1195–97 sampling points, the Nielsen data are after the distantly retransmitted (Robinson), and Mr. Galaz proffered no not without problems. The sample size programs are broadcast. Thus, IPG admissible or credible evidence, 6/5/13 is not sufficient to estimate low levels argues, the hypothetical willing buyer Tr. at 844 (Galaz),46 that the Nielsen of viewership as accurately as a larger and willing seller could not utilize this data had revealed particular programs sample. Mr. Lindstrom acknowledged viewership data ex ante to negotiate a with ‘‘zero viewing’’ throughout the that ‘‘[t]he relative error on any given license. Galaz WDT at 13. Although this Nielsen diary sampling periods. This quarter-hour for any given station * * * criticism is literally correct, it does not distinction is critical, because, under would be very high,’’ 6/3/13 Tr. at 303 preclude the use of such viewership the hypothetical market construct, (Lindstrom)—an acknowledgment data to estimate the value of the royalties would accrue on a program-by- echoed by Dr. Gray. 6/4/13 Tr. at 518– hypothetical licenses. Ideally, it might program basis to individual copyright 19 (Gray) (agreeing that, with samples of be preferable to utilize anticipated owners, not to the distantly 10,000 households, there is a high viewership as the viewership-centric retransmitted stations. relative error rate for each quarter-hour measure of value. Second, the Judges agree with Mr. ‘‘point estimate’’). However, such a measure would be Lindstrom that these ‘‘zero viewing’’ Furthermore, Mr. Lindstrom quite difficult to assemble in a Section sampling points can be considered acknowledged that he had not produced 111 proceeding. Each type of program important elements of information, the margins of error or the levels of would be subject to its own yardstick: rather than defects in the process. As confidence associated with the Nielsen For example, reruns could be valued Mr. Lindstrom testified, when doing viewership data, despite the fact that based on their prior ratings, newly sampling of counts within a population, such information could be produced. syndicated programs could be valued it is not unusual for a large number of 6/3/13 Tr. at 391–93, 410 (Lindstrom). based on the past ratings of comparable zeros to be recorded, 6/4/13 Tr. at 391– Without this information, the reliability programs; and first-run televised movies 93, 410 (Lindstrom), and those ‘‘zero of any statistical sample cannot be could be valued based on their box- viewing’’ sample points must be assessed. (By way of comparison, Dr. office value in theaters. The gathering aggregated with the non-zero viewing Gray provided with his conclusions the and presentation of such evidence likely points. 6/3/13 Tr. at 323 (Lindstrom). margin of error and the level of would be prohibitively expensive, and Third, as Dr. Gray testified, when confidence associated with his findings. the evidence in the record before the those zeros are included with non-zero Gray WRT at 26 n.25.). The Judges infer Judges does not permit such an analysis. data from the sample in a regression that that, had such information underscored Another attack by IPG on the use of correlates local and distant viewing, the the reliability of the Nielsen data, it Nielsen Data concerns the so-called zeros are placed in an appropriate ‘‘zero viewing’’ problem. The quarter- would have been produced by MPAA. statistical context. 6/14/13 Tr. at 614–15 Thus, the Judges conclude that hour sampling points within the Nielsen 47 (Gray). viewership as measured after the airing Data relied upon by MPAA contain, Fourth, as Mr. Lindstrom testified, of the retransmitted programs is a annually, between 76% and 82% ‘‘zero distantly retransmitted stations typically reasonable, though imperfect proxy for viewing’’ sampling points. Robinson have very small levels of viewership in the viewership-based value of those WRT at ¶ 31. In previous Phase II a television market fragmented (even in programs.48 proceedings the existence of these ‘‘zero the 2000–2003 period) among a plethora (2) Dr. Gray’s Economic Analysis viewing’’ sampling points had not been The Judges credit the economic adequately explained by MPAA’s 46 Mr. Galaz claimed in his live testimony that he analysis undertaken by Dr. Gray, as set prepared a document which set forth his witnesses, which diminished the value forth in his Written Direct Testimony of its methodology. See, e.g., 1993–1997 calculation of the percent of programs that Nielsen reported to have had zero viewing. Under Librarian Order, 66 FR at 66449–50. questioning from the Judges, however, Mr. Galaz 48 Since it is a hypothetical market we are However, in this proceeding, MPAA has acknowledged that he had never provided such a constructing, it also would not be unreasonable to provided adequate evidence to document to MPAA, 6/5/13 Tr. at 846–47, and IPG hypothesize that the CSO and the Copyright Owner demonstrate, to the satisfaction of the did not seek to have that document admitted into might negotiate a license that would contain a evidence. 6/5/13 Tr. at 888–89. provision adjusting the value of the license, post- Judges, that the incidence of so-called 47 To adapt an analogy used by Dr. Gray, if one viewing, to reflect actual viewership. See 6/4/13 Tr. ‘‘zero viewing’’ does not preclude the were attempting to estimate the number of left- at 562–63 (Gray). In that regard, the Judges refer to Judges’ reliance in part upon the handed individuals in the United States, by one of the pre-conditions for relative market Nielsen data, subject to adjustments in sampling ten people in New York City and value—the one omitted by Dr. Gray—‘‘reasonable Washington, DC, respectively, it would not be knowledge of relevant facts.’’ Actual viewership the allocations to acknowledge some implausible to find zero left-handed people in the would be a ‘‘relevant fact’’ that could be applied if imprecision arising out of the ‘‘zero sample. However, when the sampling expanded to post-viewing adjustments to the license fees were viewing’’ sample points. ten people each in Boston, Los Angeles, and San hypothetically utilized by the bargaining parties. First, to be precise, the percentages of Francisco, one might find two, three, and perhaps While the parties might find the ‘‘transaction costs’’ even seven left-handed individuals, respectively, in of such post-viewership negotiations and ‘‘zero viewing sampling points’’ those cities. While only about 10% of the adjustments to be prohibitive in practice, it is the represent—on a station-by-station population in the United States may be left-handed, function of the Judges, as noted supra, to construct basis—the percent of total sampling it would make no more sense to eliminate (as a hypothetical market in which such transaction points at which no sample households supposedly unrepresentative) the zero counts in costs are avoided. See O. Williamson, The New York and Washington than it would to exclude Economic Institutions of Capitalism 45 (1985) (one with Nielsen diaries recorded that they the (unusually high) count of seven left-handed aspect of the ‘‘transaction cost problem’’ is the were viewing that station. These individuals in San Francisco. See 6/4/13 Tr. at 606– inability of the negotiating parties to obtain ‘‘perfect percentage figures do not represent that 08 (Gray). information.’’).

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and in his oral testimony at the hearing, evidence in the current record to suggest The Judges view favorably Dr. Gray’s see, e.g., Gray WDT at 3; 6/4/13 Tr. at that the programs of the claimants decision to increase his data base by 446 (Gray), but not without some whom IPG represents have created a supplementing it with Nielsen meter reservations. First, the Judges agree with programming mix that would increase data—the Local Ratings Data—in order Dr. Gray that viewership can be a the value of those programs vis a` vis to determine, in his regression analysis, reasonable and directly measurable programs of non-IPG claimants. 6/4/13 the relationship between local viewing metric for calculating relative market Tr. 554–55 (Gray); Gray WDT and distant viewing of the retransmitted value in cable distribution proceedings. (Amended) at App. C. stations. 6/4/13 Tr. at 448. The use of Indeed, the Judges conclude that Moreover, the Judges rely upon Dr. this additional data allowed Dr. Gray to viewership is the initial and Gray’s use of a random sample of observe approximately 1.6 million predominant heuristic that a approximately 120 stations annually quarter-hours of local viewing data hypothetical CSO would consider in from 2000 through 2003 to construct his (6/4/13 Tr. at 465, 467) strengthening determining whether to acquire a viewership estimates. Indeed, Dr. Gray’s his results, and further mitigating any bundle of programs for distant sample is the only random sample of potential problems with the zero retransmission, subject to marginal stations presented to the Judges in this viewing sampling points contained in adjustments needed to maximize proceeding, and must be contrasted the Nielsen Diary Data. subscribership. Nevertheless, the Judges with the admittedly non-random Nevertheless, the Judges find that Dr. are reluctant to rely solely on sampling of stations undertaken by Mr. Gray’s decision not to summarize the viewership data merely because the Galaz and Ms. Kessler.49 results of his regression as it related to marginal bundling adjustments are not other independent variables, especially readily measurable. The Judges must 49 Statistically valid unbiased inferences the impact of time of day upon the level also consider subscriber fees and regarding an entire population cannot be projected of distant viewing of the transmitted from a non-random sample. The Judges, therefore, stations, is a shortcoming in his subscribership levels, even if the remain troubled by the fact that Dr. Gray did not evidence relating to subscribership insist on scrapping Ms. Kessler’s non-random analysis. Dr. Gray conceded that there creates only a crude proxy for sample and require (as a condition to his was a strong positive relationship addressing the economic bundling engagement as MPAA’s expert) the use of a random between time of day and the level of sample. Instead, Dr. Gray attempted to mitigate the distant viewing, 6/4/13 Tr. at 639–41 issue. non-randomness of Ms. Kessler’s sample by The Judges agree with Dr. Gray that shrinking his 120-station random sample to the 70- (Gray), which could support IPG’s use of station sample which constituted the overlap a Time Period Weight Factor as a basis the programs within the Program between the Kessler Sample stations and the Gray Suppliers category are more for allocating royalties. 6/4/13 Tr. at Sample stations. However, a non-randomly selected 639–43 (Gray). homogeneous inter se than they are in sub-set of an otherwise random sample is not a In addition, the Judges recognize the comparison with programs in either the random sub-set. The 70 stations were then used to criticism, leveled by IPG’s expert Sports Programming or the Devotional derive a mathematical relationship between local and distant viewing. That relationship was then witness, Dr. Laura Robinson, that Dr. Programming claimant categories. used in Dr. Gray’s regression analysis to project Gray wrongly replaced Nielsen Diary 6/4/13 Tr. at 446, 455–57 (Gray). This distant viewing from the local viewing data for all Data regarding distant viewing for the relative homogeneity suggests that a 120 sample stations, and, ultimately, to make a six months of sweeps, with his rational CSO would not be as concerned prediction with regard to the distant viewing of the entire population of MPAA and IPG programs that projected data, derived from Nielsen with whether different programs would were distantly retransmitted by every CSO. Local Viewing Data. Dr. Robinson also attract different audience segments The Judges credit Dr. Gray’s testimony that noted that, if Dr. Gray had retained his (compared with more heterogeneous MPAA refused to abandon the Kessler Sample and Nielsen Diary Data, with its programming) and therefore such a CSO that, without it, Dr. Gray would not have had access to distant signal viewing data with which to approximate 80% of zero viewing would rely to a greater extent on perform his regression. The Judges likewise credit sampling points, he should have had at absolute viewership levels. The Judges Dr. Gray’s testimony as to the fact that scrapping least a level of approximately 40% zero note, however, that Dr. Gray’s position Ms. Kessler’s non-random sample likely would viewing points in his final analysis. appears to conflict with Ms. Kessler’s have caused additional expense for MPAA, as MPAA would have been required to rely on Dr. 6/6/13 Tr. at 1202–03. testimony which described the mix of Gray’s truly random sample and develop a new set In response to Dr. Robinson’s MPAA programs as quite varied (i.e., of distant signal viewing data through additional criticism, Dr. Gray ran the distant work by CDC, Nielsen and Reznick. 6/4/13 Tr. at heterogeneous), Kessler WDT at 4–6. viewership numbers in the manner Taken at face value, Ms. Kessler’s 583–587 (Gray). Although the Judges understand why MPAA might have chosen to avoid this suggested by Dr. Robinson. To use Dr. observation suggests that the additional cost and rely, at least in part, on a Gray’s terminology, using these hypothetical CSO would consider compromised sample of stations, that cost-saving ‘‘supplant’’ values would have resulted decision compromises the Judges’ ability to give whether there was a fragmentation of in an even greater allocation to MPAA viewership among MPAA-represented more weight to Dr. Gray’s analysis than they have done in this Determination. at the expense of IPG. 6/6/13 Tr. at programs that would reduce its reliance Dr. Gray attempted to demonstrate that the use of 1328–30 (Gray). IPG objected that it had on absolute viewership and increase its the flawed Kessler Sample did not damage the not been afforded the details of this use of a bundling analysis to exploit accuracy of his analysis. The Kessler Sample suffered from Ms. Kessler’s intentional selection of analysis previously, but the Judges such heterogeneity. This disparity discount that objection, given that Dr. confirms the Judges’ conclusion that the largest stations in terms of subscribers, and her ‘‘intuitive’’ decision to cut off her sampling at a Robinson had not presented her critique viewership data alone cannot form the particular level. 6/3/13 Tr. at 122 (Kessler). This of this aspect of Dr. Gray’s analysis until basis for measuring relative market bias toward larger stations could have prejudiced her live testimony at the hearing.50 value. Notwithstanding Ms. Kessler’s IPG, if the programs of the IPG-represented testimony to the contrary, the Judges claimants were relatively more concentrated on smaller stations than were the MPAA-represented only suggests that inclusion of even smaller stations accept Dr. Gray’s analysis of the lack of programs. To test that possibility, Dr. Gray ran his (excluded from the Kessler Sample or within Dr. an impact of changes in programming regression including only the bottom quartile of the Gray’s 120-station sample but excluded from the 70- upon subscribership. Dr. Gray’s analysis Kessler Sample stations and found no change in station Kessler/Gray overlapping sample) would not have increased viewership estimates for IPG. suggests that, even if program viewership estimates. 6/4/13 Tr. at 469–70, 500, 570 (Gray). Of course, that fact only indicates that, 50 The Judges note that Dr. Robinson was engaged heterogeneity could affect value via the within the Kessler Sample, changes in broadcast by IPG only two months prior to the June 2013 CSO’s bundling choices, there is no station size did not affect IPG negatively, and at best hearing, and one month prior to the May 2013

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The Judges also acknowledge Dr. distributed to any copyright owner FR at 26800 n.5; see also Written Direct Robinson’s criticism that, given the whose work was included in a Testimony of Janice de Freitas, Ex. level of zero viewing in the raw Nielsen secondary transmission made by a cable CDN–1, Docket No. 2008–2 CRB CD diary data, Dr. Gray should have used a system of a non-network (i.e., not ABC, 2000–2003 (Phase I) at 2. different regression model than his CBS or NBC) television program on a There is no ‘‘Mexican Claimants’’ selected Poisson regression. Dr. Gray distant signal basis. The statute provides category, so any compensable defended his use of the Poisson no exception for works carried in programming carried on distantly regression model, however, as a basis to retransmissions of primary signals that retransmitted Mexican broadcast perform a regression with such a large originate in Canada or Mexico. MPAA’s stations must fall into one of the other number of zeros in the data. Although conclusion that programs carried on agreed categories (other than Canadian Dr. Robinson suggested the use of Canadian and Mexican broadcast Claimants), including the Program another form of regression to account for stations are noncompensable was Suppliers. It is simply incorrect to the relatively high number of zeros, erroneous. conclude that all compensable (such as a negative binomial regression), As to the categorization of programs programming on distantly retransmitted she did not provide any alternative carried on Canadian and Mexican Canadian and Mexican broadcast analysis to indicate how such a different Stations, the parties in the Phase I stations falls outside the Program form of regression would have changed proceeding in this matter stipulated to Suppliers category. MPAA erred by the results, and Dr. Robinson definitions of the following program excluding Canadian and Mexican acknowledged that she therefore was categories: Program Suppliers; Joint stations from its analysis. unable to state that Dr. Gray’s Sports Claimants; Commercial The Judges do not have before them conclusions were wrong. 6/6/13 Tr. at Television; Public Broadcasting; sufficient evidence to determine the 1279–81 (Robinson). Moreover, to the Devotional Claimants; Canadian precise degree to which MPAA’s extent the zeros in the raw data reflect Claimants; National Public Radio; and exclusion of Canadian and Mexican non-viewing of television at the moment Music Claimants. The definitions are stations has affected their proposed of sampling, or to the extent they reflect mutually exclusive and, in the distribution. The Judges can, however, poor sampling of small numbers of aggregate, comprehensive. See construct a rough estimate based on viewers, a separate regression to account Stipulation of the Parties on the Issues IPG’s sample stations, which were for the zero viewing may have been of Program Categorization and Scope of selected because they were the most appropriate. As noted, supra, Mr. Claims, Docket No. 94–3, CARP CD 90– widely retransmitted television stations Lindstrom and Dr. Gray both pointed 92 (Feb. 23, 1996), at 3 (stating that based on fees generated. 6/5/13 Tr. at out, however, small numbers of viewers, Phase I categories identical to those 762 (Galaz). indeed zero viewers, is a meaningful used in this proceedings were ‘‘intended Of the 223 stations that IPG included sample point, given the small number of to cover all non-network television in its sample for royalty year 2000, 12 stations (5.38% of the total) were viewers of distantly retransmitted programs on all stations retransmitted as Canadian. Those stations represented broadcast stations, so those zeros should distant signals by U.S. cable systems 4.46% of the overall number of distant not be isolated and treated differently. * * * on a mutually exclusive basis’’). subscribers covered in the IPG sample. Another of IPG’s criticisms of the In other words, every compensable Only two Mexican stations (0.90% of MPAA Methodology concerns the program must fall within one and only the total) were included in the IPG treatment of Canadian and Mexican one program category. stations. See, e.g., Galaz WRT at 40–41. The ‘‘Canadian Claimants’’ category is sample, representing 0.02% of distant MPAA and Dr. Gray did, in fact, exclude defined as: subscribers covered in the IPG sample. Canadian and Mexican television The Judges conclude that the effect on stations from the Kessler and Gray All programs broadcast on Canadian MPAA’s proposed distribution shares of Samples. 6/3/13 Tr. at 116 (Kessler); television stations, except (1) live telecasts of excluding Mexican stations from their Major League Baseball, National Hockey 6/5/13 Tr. at 753–54 (Gray). This League, and U.S. college team sports, and (2) regression analysis was negligible. On appears to have resulted from the belief other programs owned by U.S. copyright its face, however, the impact of that programs carried on those stations owners. excluding the Canadian stations may were either not compensable, or not not be negligible. Kessler WRT at Addendum B. Evidence from the Phase I proceeding included in the Program Suppliers The first exception describes category. 6/3/13 Tr. 116–17 (Kessler); 6/ suggests that a relatively small amount programs that fall within the Sports 5/13 Tr. at 754 (Gray). This exclusion of the programming on Canadian Programming category.52 The second was an error. broadcast stations is allocable to the Section 111(c)(1) unambiguously exception includes all programs owned Program Suppliers category. Written grants cable system operators a statutory by U.S. copyright owners. Although Direct Testimony of Janice de Freitas, license to retransmit Canadian and programs falling within the second Ex. CDN–1, Docket No. 2008–2 CRB CD Mexican broadcast stations.51 Section exception could, potentially, fall into 2000–2003 (Phase I) at 6 and Ex. CDN– 111(d)(3)(A) likewise directs that any of the other categories, in reality 1–I. Assuming, for purposes of this royalties deposited by cable system they are all within the Program 53 rough estimate, that there are half as operators under the statutory license be Suppliers category. Phase I Order, 75 defined as including (1) programs licensed to and 52 The ‘‘Joint Sports Claimants’’ category is deadline for the filing of rebuttal testimony. 6/6/13 broadcast by at least one U.S. commercial television defined as: Tr. at 122 (Robinson). IPG’s delay in that regard station during the calendar year in question, (2) may have compromised its expert’s ability to Live telecasts of professional and college team programs produced by or for a broadcast station that construct a more comprehensive critique of Dr. sports broadcast by U.S. and Canadian television are broadcast by two or more U.S. television Gray’s analysis. As Dr. Robinson was engaged after stations, except for programs coming within the stations during the calendar year in question, and the Preliminary Hearing in this matter, IPG, by its Canadian Claimants category * * *. (3) programs produced by or for a U.S. Commercial own delay in retaining Dr. Robinson, was unable to Kessler WRT at Addendum B. television station that are comprised predominantly seek additional discovery based upon her purported 53 The ‘‘Program Supplier’’ category is defined as: of syndicated elements, such as music video shows, need for additional information. Syndicated series, specials and movies, other cartoon shows, ‘‘PM Magazine,’’ and locally hosted 51 Section 111(c)(4) places certain geographic than Devotional Claimants programs as defined [in movie shows. restrictions on such retransmissions. the stipulation]. Syndicated Series and specials are Id.

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many programs on Canadian stations broadcast stations (IPG Sample) of distant cable retransmission fees that fall in the Program Suppliers generating the largest amount of cable generated by the station, as disclosed in category than there are on U.S. stations, retransmission fees, and supplemented CDC data. IPG presented three Canadian stations carried roughly 2.7% such information with broadcast data alternative computations based on each of retransmitted programs in the already acquired by IPG for calendar of the Station Weight Factors and an Program Suppliers category. It thus years 2000 and 2001.55 Galaz WDT at average of the two. Galaz WDT at 18; see appears that a small, but not negligible, 16; see Galaz WDT at Ex. IPG–4; 6/5/13 Galaz WDT at Ex. IPG–4; Galaz WRT at number of programs in this category are Tr. at 762, 790 (Galaz).56 The IPG Exs. R–19 and R–20; 6/5/13 Tr. at 769, carried on Canadian stations. Sample was not (and was not intended 768, 779–81 (Galaz). For the exclusion of the relatively to be) a random sample. 6/5/13 Tr. at The Time Period Weight Factor small percentage of programs broadcast 765–66, 808–09 (Galaz). From this reflects the fact that average television on Canadian stations to have a material programming data IPG identified viewership varies by time of day. IPG impact on the relative shares computed 11,213,962 individual broadcasts that based the Time Period Weight Factor on by MPAA, the proportion of MPAA- took place on the IPG Sample stations Nielsen Media Research’s assessment of represented programs to IPG- which, after omitting non-compensable distant viewership of all persons during represented programs on Canadian programming (e.g., network feed 48 half-hour dayparts that was, in turn, stations would have to differ fairly programming), yielded 8,515,052 based on Nielsen viewing data from significantly from that on U.S. stations. compensable broadcasts representing 1997.57 There is no evidence to suggest that it 39,969 discrete titles. Galaz WDT at 17. Mr. Galaz testified that the IPG does.54 The Judges conclude that, while According to Mr. Galaz, IPG then Methodology seeks to replicate the the exclusion of the Canadian stations undertook to confirm with all of the decisions actually made by CSOs by was an error, it did not have a claimants that it represents exactly looking at data representative of such significant effect on the relative shares which titles and broadcasts were owned decisions, and data reflecting the computed by MPAA. or controlled by them. IPG submitted to aggregate of information that a CSO each claimant the list of compensable could have had at the time of its b. Description of the IPG Methodology decision to retransmit a broadcast and Proposed Allocation titles, and requested that the claimant respond to IPG with a list of any titles station. 6/5/13 Tr. at 761, 763, 768 IPG’s distribution methodology (the on the list that correspond to titles (Galaz). He explained that it was for this IPG Methodology) was created by Mr. owned or controlled by the claimant. In reason that IPG used its Time Period Raul Galaz, an employee and former some circumstances IPG determined Weight Factor in preference to principal of IPG. Mr. Galaz testified that which titles and broadcasts were owned projections of actual viewership. IPG the IPG Methodology was formed in or controlled based on information avers that actual viewership can only be response to a perceived bias in the within the IPG contracting documents, known after a broadcast has taken place; distribution methodology historically or information previously provided to prior to a CSO’s decision to retransmit utilized by MPAA. Galaz WDT at 7–8. IPG in the course of IPG’s a particular broadcast, the CSO may IPG espouses that each and every representation. Galaz WDT at 18; 6/5/13 only reasonably predict on a day-by-day program that is broadcast by a terrestrial Tr. at 791–93 (Galaz). Based on that basis the relative viewership of a station, and is thereafter retransmitted vetting process, IPG determined that program based on the timing of its by a CSO pursuant to the Section 111 1,297 compensable programs were placement on a station’s lineup. Galaz statutory license, is entitled some owned or controlled by IPG-represented WDT at 20–22; 6/5/13 Tr. at 770–75 portion of the fees deposited with the claimants, reflected within 541,586 (Galaz). U.S. Copyright Office. Id. at 14. compensable broadcasts. Galaz WDT at As a final step, the broadcast length Upon the commencement of this 10; see Galaz WDT at Exs. IPG–2, 3. of all compensable broadcasts appearing Phase II proceeding, IPG obtained The weight that IPG accorded to any in the IPG analysis was applied against updated data from CDC of all Form 3 given compensable broadcast was the the ‘‘Station Weight Factor(s)’’ and the retransmitted stations from 2000–2003, product of (x) a ‘‘Station Weight ‘‘Time Period Weight Factor’’ to create which data included the number of Factor,’’ (y) a ‘‘Time Period Weight a weighted value for each of the households to which any particular Factor,’’ and (z) the duration of the broadcasts. After segregating the terrestrial signal was retransmitted, as broadcast. Galaz WDT at 18–23. compensable broadcasts into their well as the fees generated from the IPG took two alternative approaches respective Phase I categories, including retransmission of any particular to creating a Station Weight Factor. One the Program Suppliers category, IPG terrestrial signal. IPG ranked such assigned a value to a station based on summed the resulting weighted values stations on a year-by-year basis, the number of distant cable subscribers for (i) all IPG-claimed broadcasts, and according to the cable retransmission that received retransmissions of that (ii) all MPAA-claimed broadcasts. Galaz fees generated by such stations. Id., at station’s broadcasts. The other assigned WDT at 24; Galaz WRT at Exs. R–19 16; 6/5/13 Tr. at 762 (Galaz). a value to a station based on the amount (revised) and R–20 (revised); 6/5/13 Tr. IPG thereafter acquired from Tribune at 778 (Galaz). By comparing these Media the programming data for the 200 55 IPG’s samples consisted of 223 stations for 2000; 231 stations for 2001; 200 stations for 2002; 57 IPG contended that it was reasonable to use 54 In his analysis of the IPG Methodology, Dr. and 200 stations for 2003. Galaz WDT at 16; see 1997 data for this purpose because Nielsen Media Gray evaluated the effect of IPG’s inclusion in its Galaz WDT at Ex. IPG–4; 6/5/13 Tr. at 762, 790 Research publications indicate that there have been methodology of non-U.S. programs carried on (Galaz). only trace changes in U.S. daypart viewing, even Canadian stations and concluded that it resulted in 56 The stations surveyed as part of the IPG Sample over the span of decades. Galaz WDT at 21–22; an overstatement of the value of IPG’s claims accounted for 89–93% of the aggregate number of 6/5/13 Tr. at 775–77 (Galaz). IPG’s calculations (perhaps reflecting a higher proportion of non-U.S. Form 3 subscribers receiving retransmitted originally were based on six dayparts, rather than programming among IPG-represented programs commercial signals in any given year during 2000– 48. When this issue was brought to IPG’s attention, than among MPAA-represented programs). Gray 2003, and 94–96% of the distant cable IPG produced revised calculations based on the 48 WDT at 15–17. Unfortunately that analysis sheds no retransmission fees generated by commercial dayparts described in Mr. Galaz’ written testimony. light on the effect of MPAA’s exclusion of U.S. stations in any given year during 2000–2003. Galaz See Galaz WRT at Exs. R–19 (revised) and R–20 programs on Canadian stations on its calculation of WDT at 17; see Galaz WDT at Ex. IPG–5; 6/5/13 Tr. (revised). In live testimony, Mr. Galaz stated that relative shares of royalties. at 765, 788 (Galaz). the error was inadvertent. 6/5/13 Tr. at 774 (Galaz).

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‘‘Sum Weighted Values’’ for IPG and Using a Station Weight Factor based computed the following proposed MPAA, IPG calculated its proposed on numbers of distant subscribers, IPG relative distribution shares. relative distribution shares.

IPG PROPOSED DISTRIBUTION SHARES [SWF—Subs]

2000 2001 2002 2003 (percent) (percent) (percent) (percent)

MPAA ...... 90.52 92.77 94.54 94.95 IPG ...... 9.48 7.23 5.46 5.05

Galaz WRT, Ex. R–19, at 1 (revised). following proposed relative distribution Using a Station Weight Factor based shares. on fees generated, IPG computed the

IPG PROPOSED DISTRIBUTION SHARES [SWF—Fees]

2000 2001 2002 2003 (percent) (percent) (percent) (percent)

MPAA ...... 90.60 92.57 94.56 94.86 IPG ...... 9.40 7.43 5.44 5.14

Id. IPG computed the following proposed Using an average of the shares relative distribution shares. produced by the previous two methods,

IPG PROPOSED DISTRIBUTION SHARES [SWF—Subs and fees]

2000 2001 2002 2003 (percent) (percent) (percent) (percent)

MPAA ...... 90.56 92.67 94.55 94.91 IPG ...... 9.44 7.33 5.45 5.09

Id. Judges understand IPG’s position in this television program. 6/6/13 Tr. at 1219– regard to be premised on the assertion 21 (Robinson). (1) Evaluation of the IPG Methodology that the hypothetical CSO is interested Second, it is true, as IPG asserts, that IPG, through the written testimony of in maximizing subscriber fees (i.e., since a CSO is concerned about which its sole direct witness, Mr. Galaz, did profits, assuming constant costs) or programs the marginal subscriber might subscriber levels (i.e., market share), not definitively state that its prefer, a CSO may prefer a program with rather than viewership. methodology was an application of a smaller level of viewership if that ‘‘relative market value.’’ Galaz WDT at IPG is not incorrect in its assertion of viewership represents new subscribers, 11. At the hearing, on cross- the different ‘‘factors’’ (i.e., incentives) instead of a show with a large audience examination, Mr. Galaz initially that apply to a CSO, as opposed to an that consists only of existing declined to state that the IPG ‘‘exhibitor’’ (i.e., a broadcast station) in subscribers. IPG has not, however, Methodology was consonant with any this retransmission context. The Judges ‘‘economic principle.’’ Under further conclude, however, that the substance proffered any evidence applying such a cross-examination, Mr. Galaz testified of IPG’s direct case suffers from three marginal analysis in the present that he thought that the IPG major defects: proceeding. Dr. Robinson testified that such an analysis would require a ‘‘more Methodology fits under the ‘‘relative First, the maximization of subscriber sophisticated model,’’ incorporating market value’’ standard. 6/5/13 Tr. at revenues or levels is not divorced from 942–47. viewership levels. Rather, a CSO would perhaps ‘‘game theoretic’’ principles to The IPG Methodology for distributing attract subscribers on a distantly demonstrate how a CSO would royalties in this Phase II proceeding retransmitted station only to the extent maximize subscribership through such a eschews explicit reliance upon that the programs it offered were marginal viewer analysis. 6/6/13 Tr. at viewership levels. Rather, IPG asserts demanded by consumers who intended 1230 (Robinson). Likewise, Dr. Gray that ‘‘certain obvious factors that would to view the programs. Indeed, even IPG’s testified that such an approach would otherwise affect a negotiated license expert witness, Dr. Robinson, require a ‘‘more sophisticated’’ analysis between a producer and an exhibitor are acknowledged that, in her professional than the parties’ evidence permitted in not present in the compulsory licensing experience, viewership was a factor in this proceeding. 6/4/13 Tr. at 547 scheme * * * .’’ Galaz WDT at 12. The determining the value of a retransmitted (Gray).

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Third, the IPG Methodology does not Third, Mr. Galaz acknowledged that IPG’s direct case, particular elements of follow from the foregoing critique. he is not an economist, statistician, or the IPG Methodology are also deficient. Rather, the IPG Methodology uses econometrician, and that he had no First, IPG contends that the purpose factors that tend to treat as similar particular expertise that would permit of the IPG Methodology is to programs that are distantly him to opine as an expert on the compensate every claimant, even if retransmitted at the same time of day, construction of a methodology to there is no evidence that there was any run for the same number of minutes per establish ‘‘relative market value’’ in this viewership of the claimant’s program.59 program or that appear on the same distribution proceeding. 6/5/13 Tr. at The Judges find such a methodology station. Thus, the IPG Methodology 928–30. The Judges gave serious unacceptable. Even if viewership as a considers neither the initial necessity of consideration to granting the motion in metric for determining royalties may be considering absolute viewership nor the limine filed by MPAA and the SDC at subject to some adjustment in light of subsequent necessity of considering the the start of the hearing to bar Mr. Galaz’s the economic incentives facing a CSO, iterative process (‘‘perhaps a ‘‘game testimony on the basis that he was there is certainly no basis to allow for theoretic’’ approach, as Dr. Robinson offering expert opinion but was not compensation in the absence of any testified). Simply put, aside from any qualified as an expert witness. For the evidence of viewership. See 6/5/13 Tr. other defects in the IPG Methodology, it reasons stated on the record, however, at 950 (Galaz). is not true to its own critique of a the Judges denied the in limine motion viewership-based analysis. Second, IPG’s ‘‘sample’’ of stations and decided to permit Mr. Galaz to was not selected in a statistically (2) The Testimony of Mr. Galaz testify and accord his testimony random manner. Id. at 957 (Galaz). whatever weight it warranted. 6/3/13 Tr. IPG’s direct case also suffers from the Thus, it suffers from the same infirmity at 58–64. Nothing in Mr. Galaz’s as the Kessler Sample relied upon in fact that it was presented by a particular testimony indicates that the Judges single witness, Mr. Galaz. For the part by MPAA. However, unlike MPAA, should give his testimony any weight, IPG made no effort to mitigate the following reasons, Mr. Galaz, to say the except to the limited extent certain least, was an imperfect messenger to problems with its non-random sample. general principles he utilized in his IPG Indeed, at the hearing, Mr. Galaz convey the IPG Methodology. Methodology provide a basis to modify First, the Judges note that Mr. Galaz attempted to disavow that his list of marginally the distribution allocations stations was a sample, and instead re- was previously convicted and arising from the MPAA Methodology. incarcerated for fraud in the context of defined his station selections as a copyright royalty proceedings—a fraud Fourth, Mr. Galaz did not indicate ‘‘survey.’’ Id. at 959 (Galaz). that caused financial injury to MPAA. that he had any experience working for Third, the IPG Methodology, with its 6/5/13 Tr. at 932 (Galaz). In connection or on behalf of a CSO, and he admitted reliance on the so-called ‘‘Station with that fraud, Mr. Galaz also that he had not discussed the IPG Weight Factor,’’ grossly ignores admittedly lied in a cable distribution Methodology with any CSO. 6/5/13 Tr. viewership, resulting in a much higher proceeding much like the instant at 970–72. Thus, his suppositions as to relative market value for relatively low- proceeding. Id. Mr. Galaz’s fraud how a CSO might construe viewership rated programs. The following two pairs conviction and prior false testimony lack foundational support. Moreover, of examples from Dr. Gray’s Written compromises his credibility, especially since Mr. Galaz is not an economist, he Rebuttal Testimony, unrebutted by Mr. in this proceeding. cannot apply microeconomic theory in Galaz at the hearing, show how the IPG Second, Mr. Galaz, the founder and order to opine upon the economic Methodology calculates the relative previously an owner of IPG, is now an incentives to which a hypothetical CSO value of two programs as identical, employee of IPG. Galaz WDT at 7. IPG might respond when acquiring a bundle merely because they aired at the same is currently owned by his mother and of licenses from owners of program time of day, even though the MPAA- sister. 6/5/13 Tr. at 1079 (Galaz). Thus, rights. claimant programs (‘‘Judge Joe Brown’’ he clearly has a self-interest which (3) Additional Problems With the IPG and ‘‘Poke´mon’’) had substantially renders the IPG Methodology—of which Methodology higher viewership levels than the IPG- he is the architect—less credible than a claimant programs (‘‘Animal methodology created by an outside In addition to the foregoing Adventures’’ and ‘‘Dragon Ball Z’’) expert.58 overarching and substantial defects in which aired in the same time period:

TABLE 2—EXAMPLES SHOWING THAT FACTORS OTHER THAN STATION, TIME OF DAY, AND PROGRAM TYPE IMPACT DISTANT VIEWING OF A PROGRAM *

IPG Entity Nielsen Gray estimated Date/time Station Program Program type claiming viewing viewing relative households households value

7/8/2000: 16:30 ...... KRON ...... Animal Adventures ..... FIRST-RUN SYN- IPG ...... 740 952 2,358,915 DICATION. 5/21/2000:

58 It is noteworthy that IPG engaged Dr. Robinson statutory license was a constitutional imperative. statutory licenses, the Copyright Act includes a to critique the MPAA methodology and Dr. Gray’s Galaz WDT at 14; IPG PFF at 12. Counsel for IPG number of outright exceptions (e.g., fair use under analysis, but, as Dr. Robinson testified, she was not echoed this ‘‘takings’’ argument in his closing Section 107) where a copyright owner’s exclusive asked to defend the IPG Methodology created by statement. 6/6/13 Tr. at 1454–55. IPG did not brief rights are limited without any compensation Mr. Galaz. 6/6/13 Tr. at 1226 (Robinson). or argue this issue, so it is not before the Judges for whatsoever. IPG’s Fifth Amendment takings 59 Mr. Galaz asserted that compensating each and decision. Nevertheless, the Judges note that, on its argument would, absurdly, render these exceptions every copyright owner affected by the Section 111 face, this argument proves too much. In addition to unconstitutional.

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TABLE 2—EXAMPLES SHOWING THAT FACTORS OTHER THAN STATION, TIME OF DAY, AND PROGRAM TYPE IMPACT DISTANT VIEWING OF A PROGRAM *—Continued

IPG Entity Nielsen Gray estimated Date/time Station Program Program type claiming viewing viewing relative households households value

16:30 ...... KRON ...... Judge Joe Brown ...... FIRST-RUN SYN- MPAA ...... 1,840 1,635 2,358,915 DICATION. 7/30/2001: 16:30 ...... WPIX ...... Dragon Ball Z ...... CARTOON ...... IPG ...... 2,898 5,586 63,748,728 2/5/2001: 16:30 ...... WPIX ...... Poke´mon ...... CARTOON ...... MPAA ...... 10,888 8,228 63,748,728 Notes: ‘‘Gray Viewing Households’’ refers to predicted household distant viewing based on the econometric estimation procedure described in my Direct Testimony. IPG Estimated Relative Value is based on Mr. Galaz’s SWF Subs measure. Programs in the two sets of examples also have identical IPG Estimated Relative Value based on Mr. Galaz’s SWF Fees measure. Nielsen Viewing Households represents the number of households viewing the program distantly as reported in the Nielsen Diary Data and averaged over the quarter hour increments that constitute the full program time.

Gray WRT at 8. equal relative value to MPAA-claimed different levels of viewership. The Fourth, the IPG Methodology, with its programs and IPG-claimed programs following comparison of programs that additional reliance on the so-called that aired on the same station and for aired on WGN in 2001 demonstrates this ‘‘Time Period Weight Factor,’’ ascribes the same duration, despite substantially outcome.

TABLE 4—EXAMPLE OF MY [DR. GRAY’S] AND MR. GALAZ’S ESTIMATED RELATIVE VIEWING OF RETRANSMITTED WGN BROADCASTS

Nielsen Gray Date/time Program Entity viewing viewing lPG’s TPWF IPG relative claiming households households value

5/12/2001: 17:00 ...... Andromeda ...... MPAA ...... 117,501 102,065 0.612244 1,220,182,908 2/3/2001: 10:00 ...... Video Computer Store ...... IPG ...... 6,754 12,325 0.612244 1,220,182,908 5/6/2001: 17:00 ...... Coach ...... MPAA ...... 117,088 143,757 0.612244 610,091,454 7/14/2001: 9:30 ...... As Seen on TV PC ...... IPG ...... 10,282 14,322 0.612244 610,091,454 Notes: ‘‘Gray Viewing Households’’ refers to predicted household distant viewing based on the econometric estimation procedure described in my Direct Testimony. IPG Estimated Relative Value is based on Mr. Galaz’s SWF Subs measure. Programs in the two sets of examples also have identical IPG Estimated Relative Value based on Mr. Galaz’s SWF Fees measure. Nielsen Viewing Households represents the number of households distant viewing the program as reported in the Nielsen Diary Data and averaged over the quarter hour increments that constitute the full program time.

Id. at 22. had relied in the 1993–1997 Phase II Program Suppliers category in each of Fifth, compounding the problems proceeding, which reliance was the years at issue as follows. with the IPG Methodology, Mr. Galaz criticized by the CARP convened for For 2000, IPG’s claimed percentage was utilized 1997 data to estimate the level that prior proceeding. Gray WRT at inflated by 23%, i.e., from 9.47% if Mr. Galaz of viewing throughout the broadcast 20–21. Mr. Galaz acknowledged this had correctly used half-hour segments, to day, rather than data that was problem, described it as a good faith 11.62% when he instead utilized ‘‘daypart’’ contemporaneous with the 2000 through error, and changed his calculations by categories. For 2001, IPG’s claimed percentage was 2003 royalty distribution period at issue substituting the half-hour viewing in this proceeding.60 6/5/13 Tr. at 973 inflated by 32%, i.e., from 7.33% if Mr. Galaz segments for his ‘‘daypart’’ categories in had correctly used half-hour segments, to (Galaz). his application of the Time Period 9.71% when he instead utilized ‘‘daypart’’ Sixth, Mr. Galaz claimed originally to Weight Factor. Compare Galaz WRT at categories. have utilized half-hour viewing Exs. R–19 and R–20 (original) with For 2002, IPG’s claimed percentage was segments to create his Time Period inflated by 27%, i.e., from 5.45% if Mr. Galaz Galaz WRT at Exs. R–19 and R–20 Weight Factor. However, as Dr. Gray had correctly utilized half-hour segments, to (revised). explained in his Written Rebuttal 6.9% when he instead utilized ‘‘daypart’’ Testimony, Mr. Galaz in fact did not What is particularly noteworthy about categories. this issue is the extent to which the use For 2003, IPG’s claimed percentage was utilize half-hour viewing segments in inflated by 21%, i.e., from 5.09% if Mr. Galaz his analysis, but rather utilized the six by Mr. Galaz of the ‘‘daypart’’ had correctly utilized half-hour segments, to ‘‘daypart’’ categories upon which IPG categories, as compared to his claimed 6.33% when he instead utilized ‘‘daypart’’ use of the half-hour segments, inured to categories. 60 Mr. Galaz asserted that information published IPG’s benefit. As Mr. Galaz testified, Id. by Nielsen supported his use of 1997 data. See 6/6/13 Tr. at 1155–56 (Galaz), his use of supra note 57. Mr. Galaz lacks the requisite Given the serious issues of credibility expertise on which to base that conclusion, the ‘‘daypart’’ categories significantly regarding Mr. Galaz’s testimony, as however. inflated IPG’s claimed percentage of the discussed supra, the Judges cannot state

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with any confidence that these rather —A CSO maximizes subscriber revenue Further, such an argument would significant errors—all of which would or volume by creating a mix of require evidence and testimony from have substantially inflated IPG’s program types (even within a given someone with actual knowledge of CSO allocation and were left uncorrected Phase I category). programming decisions and strategies until they were disclosed in Dr. Gray’s —The CSO’s maximizing mix of pertaining to the bundling of programs. Written Rebuttal Testimony—were not program types is not (merely) a See supra note 28. In these two regards, the product of design rather than function of total viewership. (an undeveloped theory and the absence inadvertence. —Rather, the CSO will bundle different of factual support) the Judges cannot Seventh, the IPG Methodology, programs in order to obtain additional adopt the IPG Methodology. although intended to eschew viewership new (i.e., marginal) subscribers. as a primary measure, nonetheless is —These new subscribers may be (5) Conclusion Regarding the IPG based implicitly upon viewership, as it attracted to programs at viewership Methodology considers the duration of a program as levels that are lower than the For the foregoing reasons, the Judges an indicia of value (a program of viewership levels of other shows conclude that the IPG Methodology relatively longer duration would be available for licensing, but the latter cannot be applied to establish the basis more valuable because of its viewership shows may simply have more of the for an allocation of the royalties in the over a longer period), as well as the time same viewers who have already Program Suppliers category. However, of day a program is aired (there are more subscribed based upon the other given the few generally correct viewers at some times of day than shows in the CSO lineup.61 principles, noted above, within the IPG others). —Therefore, assessing the relative Methodology, and given certain (4) Limited Applicability of the IPG market value of retransmitted imperfections in the MPAA Methodology programs on the basis of relative Methodology, the Judges conclude that viewership alone is an imperfect the allocations otherwise established by Although the Judges reject the measurement because viewership a strict application of the MPAA wholesale application of the IPG does not explicitly account for the Methodology should be adjusted Methodology in this Determination, CSO’s incentive to bundle programs downward marginally. they do note that the IPG Methodology in a manner designed to maximize attempts to address certain issues of subscriber fees (profits) or levels c. Allocations Within the Program value which are worthy of consideration (market share). Suppliers Category when the Judges determine the extent, if any, to adjust an allocation based When bundling is considered, the The Judges conclude that the MPAA upon the MPAA viewership-based economic analysis shifts from the Methodology should be accorded methodology. relatively straightforward profit substantial weight in establishing the First, Dr. Gray acknowledged that the maximization analysis advanced by zone of reasonableness for the IPG Methodology was an MPAA (using viewership as a measure allocations in the Program Suppliers ‘‘approximation’’ of Dr. Gray’s own of value) to a more nuanced valuation category. By contrast, in light of the methodology, albeit a ‘‘crude assessment. In essence, the hypothetical Judges’ conclusion that the IPG approximation.’’ Gray WRT at 4 CSO whose buying decisions we must Methodology is seriously deficient, the (emphasis added). consider would create an ersatz station IPG methodology cannot be used in Second, as noted supra, Dr. Gray by bundling programs in a combination establishing the parameters of the zone acknowledged that even his own that would maximize its expected of reasonableness for the allocation of regression analysis showed a strong revenues or volumes (with all other royalties in the Program Suppliers correlation between the time of day costs assumed constant). As previously category. when a program aired and the level of explained, an attempt to maximize viewership of the distantly profits would result in the purchase of A Survey on the Economic Literature on Bundling, retransmitted programs. This correlation program licenses at a fee (the marginal 1 J. of Competition L. & Econ. 707 (Dec. 2005). For generally affirms that IPG’s Time Period cost of the program input) up to the example, bundling is utilized by sellers who possess market power as a means of ‘‘price Weight Factor is not irrational, even anticipated MRP from that program in a discrimination,’’ by tying two products with though IPG’s emphasis on that factor, competitive market. different elasticities of demand together in order to and its failure to acknowledge the much So stated, IPG’s argument is rational convert the ‘‘consumer surplus’’ which would exist greater importance of per-program in theory. However, as both Dr. Gray in the absence of a tying or bundling, into higher profits for the seller. See G. Stigler, U.S. v. Loew’s viewership, is unreasonable. and Dr. Robinson testified, such a Inc.: A Note on Block Booking, 1963 Sup. Ct. Rev. Third, IPG’s argument that lower- concept would require a much more 152 (1964). Thus, a rational bundling CSO with rated shows might enhance subscriber detailed economic and game theoretic market power would not simply seek to acquire a fees or levels more than higher-rated model of CSO programming than was copyright license to a program that, in isolation, 62 would add more subscriber fees, but rather would shows is a logical economic concept. In presented by IPG in this proceeding. determine which combination of programs that regard, the Judges understand IPG’s extracted the most profits, based upon the relative theory to be an application of the 61 At the hearing, the Judges offered the fanciful inelasticity of demand for popular shows. To cite bundling problem in economics, an example that an instructional show with low another issue created by bundling, the program viewership might be more valuable to a CSO, on the owner (with monopolistic power over its own application that can be summarized as margin, than reruns of ‘‘Bewitched’’ with higher relatively more valuable program) might hold out follows. viewership, if the ‘‘Bewitched’’ viewers were for a license royalty that appropriated for itself the —A CSO does not make decisions based merely redundant of, or displacing, viewers of profits from bundling, thus frustrating the CSO’s another similar show, e.g., ‘‘I Dream of Jeannie,’’ attempt to price discriminate by assembling a roster upon maximizing viewership, but which was already part of that CSO’s offering. of shows which would create the profit-maximizing rather upon maximizing subscriber 6/4/13 Tr. at 551–53. bundle. This is a variant of the classic and revenues (assuming costs are 62 There is a wealth of economic literature indeterminate problem of price-setting between a constant) or by maximizing subscriber analyzing the economics of bundling, i.e., the monopolist and a monopsonist, as to which the impact of the offering for joint sale or purchase two game theoretic principles referred to by Dr. volume (if maximizing market share is or more products or services. See generally B. Robinson would be applicable. These are the types more important than maximizing Kobayashi, Does Economics Provide a Reliable of issues which the IPG Methodology simply does profits at any given point in time). Guide to Regulating Commodity Bundling by Firms? not address.

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The Judges conclude that the ‘‘zone of noted defects in the MPAA Gray’s confidence interval (and, reasonableness’’ in the Program Methodology, and given the few therefore, the lower bound of the ‘‘zone Suppliers category in this proceeding generally correct principles identified of reasonableness’’). corresponds with the range established by IPG as noted above, the Judges Accordingly, the Judges establish the by the 95% confidence interval that Dr. conclude that the distribution levels following annual distribution levels, Gray computed for MPAA’s proposed should be set at the lower bound finding them to be within the zone of distribution allocation. See supra note (‘‘lower’’ in terms of percent of 45; Gray WRT at 26 n.25. In light of the distributions awarded to MPAA) of Dr. reasonableness:

ALLOCATION IN THE PROGRAM SUPPLIERS CATEGORY

2000 2001 2002 2003 (percent) (percent) (percent) (percent)

MPAA ...... 98.84 99.69 99.64 99.77 IPG ...... 1.16 0.31 0.36 0.23

2. Devotional Category More generally, in the discussion 2013).65 Mr. Little’s testimony describes a. The IPG Methodology regarding the Program Suppliers the diversity of the SDC programming. distributions, the Judges have explained Little WDT at 1–4. He identifies 23 SDC- IPG proposes the identical formula for in detail the deficiencies in the IPG represented claimants and their the Devotional allocations as it Methodology, and the few positive respective programs during the years proposed for the Program Suppliers attributes arising from—to use Dr. 2000–2003. See Little WDT at Ex. 2. category. Specifically, IPG applies a Gray’s language—the ‘‘crude The heart of the SDC’s case rests on methodology that considers: (1) The approximation’’ of relative market value Dr. Brown’s testimony. Dr. Brown, a Professor and Research Fellow at the station(s) on which a devotional created by the IPG Methodology. The School of Communication and the Arts program appeared, thereby providing Judges adopt in this Devotional category at Regent University in Virginia Beach, the number of subscribers receiving the analysis those prior statements distantly retransmitted station and the Virginia, served as the SDC’s expert regarding the attributes of the IPG witness in the field of communication fees paid by those subscribers (the Methodology.64 Station Weight Factor); (2) the time of theory and research. See 6/6/13 Tr. at day during which each devotional b. The (Proffered) SDC Methodology 1371 (Brown). In his direct testimony, program was broadcast (the Time Period Dr. Brown asserted that ratings are a Weight Factor); and (3) the length of The SDC explicitly requests that, in ‘‘valuable tool’’ in determining Phase II each devotional program. These factors the Devotional category, the Judges allocations. Brown WDT at 4. He are then multiplied and aggregated for adopt the MPAA Methodology to described how IPG and MPAA programs. IPG then uses establish relative market value. Indeed, Nielsen compiled data on an overnight those aggregate program values to the SDC claims to have relied upon, basis using a scientific sample of several determine the relative value as between inter alia, the non-random Kessler thousand households electronically metered the IPG-claimed Devotional Programs Sample of stations, as well as the to monitor TV viewing, and during sweeps periods (pre-selected, 4-week cycles) using and the SDC-claimed Devotional Nielsen Diary Data originally provided tens of thousands of diaries of households 63 Programs. to MPAA and about which Mr. that keep records of TV viewing activities. Lindstrom testified. As discussed below, IPG’s formula produced absurd results Id. Consequently, Dr. Brown opined, in the Devotional category, as it did in the Judges have declined to rely on the that ‘‘[t]he most useful quantifiable data the Program Suppliers category. The results of the application of the SDC is Nielsen viewing data, projected to Judges note Dr. Brown’s Amended Methodology because the SDC offered distant households.’’ 66 Id. at 5. Written Rebuttal Testimony, in which evidence of the application of its At no time during the direct phase of he explained how, for example, in the methodology in an untimely manner, in its case did the SDC offer any testimony, Devotional category, application of the contravention of the Judges’ procedural written or oral, specifically setting forth IPG Methodology bizarrely: (1) Would rules. Therefore, the Judges cannot use the application of the MPAA cause a program with 167% of a the SDC Methodology to determine the methodology to Devotional competing program’s national rating to allocation of the Phase II share of Programming. Rather, the SDC receive less than 30% of the value royalties in the Devotional category. attempted to introduce such evidence assigned to that competing program; and The SDC’s direct case consisted of the during the rebuttal phase of its case by (2) would allow programs comprising written and oral testimony of Dr. proffering the written and oral 0.119% of the entire Devotional William Brown and the written testimony of Mr. Alan G. Whitt, the category to receive more than 18% of all testimony of Mr. Michael Little, which Devotional category revenue simply 65 The Judges excluded Exhibit 3 to Mr. Little’s was admitted pursuant to stipulation of because that 0.119% of the programs testimony for reasons discussed supra. See text were broadcast on WGNA, which was the SDC and IPG. Stipulation Regarding accompanying note 14. Testimony of Michael D. Little (May 31, 66 Dr. Brown also proposed that the Nielsen data retransmitted to a disproportionately be ‘‘supplemented, where applicable, with Bortz high number of subscribers. Brown [Survey] study data.’’ Brown WDT at 5. However, WRT (Amended) at 10–13. 64 IPG also asks the Judges to order the SDC to in his Amended Written Rebuttal Testimony, Dr. reimburse IPG for costs it incurred to develop data Brown testified: ‘‘I conclude that the Bortz survey also relied upon by the SDC. IPG PFF (Devotional) data cannot be used to supplement the MPAA/ 63 As in the Program Suppliers category, IPG at 22. However, IPG did not file a motion seeking Nielsen viewing data to determine the comparative computes three alternative Station Weight Factors: such reimbursement, and the Judges are not aware value of programs within the single genre of A pure subscriber-level factor, a pure fee-based of any statutory or regulatory authority pursuant to devotional programming.’’ Brown WRT (Amended) factor and an average of the two. which such costs can be shifted in this proceeding. at 16.

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founder and principal of IT Processing, Mr. Whitt organized programming data for utilize the MPAA Methodology,67 the Inc. The purpose of Mr. Whitt’s entities he identified as religious or SDC’s application of that methodology testimony was to provide the underlying devotional. by Mr. Whitt was not properly disclosed data upon which Dr. Brown would rely Brown WRT (Amended) at 14–15 in the SDC’s direct case. Consequently, to form his opinion as to the proper (emphasis added). the Judges cannot consider the distribution of royalties for the The Judges excluded Mr. Whitt’s application of the SDC Methodology in Devotional category for the years 2000 testimony on the basis that the SDC was their determination of the Phase II through 2003. Specifically, Mr. Whitt required by the Judges’ regulations to distribution to the Devotional category. gathered: (1) The Kessler non-random provide Mr. Whitt’s testimony in its c. Allocations in the Devotional sample of stations; (2) the Nielsen data direct case. See 37 CFR 351.4(b)(1), Category prepared on behalf of MPAA; (3) the (c)(contents of and amendment of Tribune Media Services database of Written Direct Statements) and In light of the foregoing, the Judges programs that aired during the relevant § 351.10(e)(introduction of studies and are faced with a Hobson’s Choice. The calendar years; and (4) the MPAA analyses); 6/6/13 Tr. at 1352–53, 1361– SDC has failed to introduce evidence of ‘‘Reports of Household Viewing Hours 62 (to the extent Whitt’s testimony its distribution methodology in a timely for the MPAA Copyright Royalty provided foundation for Dr. Brown’s manner. IPG has set forth a methodology Databases’’ for 2000–2003. He then testimony, it ‘‘needed to be included in that suffers from a number of flaws and identified programs as ‘‘Devotional’’ or, the direct case of SDC.’’). which has validity only in certain synonymously, ‘‘Religious.’’ Whitt WRT By failing to provide Mr. Whitt’s limited respects, as explained above. at 3–8. In his rebuttal testimony, Dr. testimony until its rebuttal case, a mere The Judges are, nevertheless, obligated Brown explained how he used Mr. three weeks before the hearing, the SDC to reach a determination based on the Whitt’s work to arrive at the SDC’s prejudiced IPG and, in essence, engaged existing record. Given the evidentiary proper distribution: in trial by ambush, in violation of the constraints, and in order to allocate the Nielsen’s quarter hour results were * * * letter and spirit of the Judges’ royalties in the Devotional category in a transmitted to Mr. Whitt * * *. Mr. Whitt procedural rules. More specifically, by manner within the ‘‘zone of received the data and, utilizing sophisticated not including Mr. Whitt’s testimony in reasonableness,’’ the Judges hereby software programming and the data from its direct case, the SDC deprived IPG of conclude as follows. Tribune Media Services (TV DATA) of the opportunity to review the work IPG’s proposed allocations, and the programs telecast in 2000–2003, [Mr. Whitt] undertaken by Mr. Whitt. Although Dr. SDC’s proffered allocations determined the programs to which the Brown, in his Written Direct Testimony, (unsubstantiated in the SDC’s direct viewing information was attributed. * * * indicated that the SDC intended to case) are as follows.

PROPOSED ALLOCATIONS IN THE DEVOTIONAL CATEGORY

SDC proposed allocation IPG proposed Year Party range allocation (percent) (percent)

2000 ...... SDC ...... 60.8–74.5 62.86 IPG ...... 25.5–39.1 37.14 2001 ...... SDC ...... 72.7–77.0 54.88 IPG ...... 23.0–27.3 45.12 2002 ...... SDC ...... 61.9–67.5 58.98 IPG ...... 32.5–38.1 41.02 2003 ...... SDC ...... 67.5–70.5 53.32 IPG ...... 29.5–32.5 46.68

For the year 2000, the Judges note that that for the year 2002, again there is reconcile the competing proposals in the IPG proposal falls within the range some degree of agreement between the the same manner as undertaken for the the SDC had proposed. There is, parties as to the allocation of royalties. years 2000 and 2002. therefore, some degree of agreement It is well within the ‘‘zone of Given that the SDC’s application of its between the parties as to the appropriate reasonableness’’ to allocate the royalties methodology was not supported in the allocation. Accordingly, the Judges find in the Devotional category for the year SDC’s Direct Case, and that the SDC’s it well within the ‘‘zone of 2002 as follows: 58.98% to SDC and attempt to provide such support in Mr. reasonableness’’ to allocate 62.86% of 41.02% to IPG. Whitt’s rebuttal testimony was not the royalties in the Devotional category For the years 2001 and 2003, there is timely presented and, therefore, to SDC and the remaining 37.14% to a marked difference between the rejected, that methodology cannot serve IPG. percentage allocations proposed by IPG as any guide-post for the Judges to apply For the year 2002 (the years 2001 and and the percentage allocations set forth (except, as noted above, to the extent 2003 will be considered below), a very in the SDC’s proffered allocations that the allocations proposed by the similar (but not identical) situation (unsubstantiated in the SDC’s direct SDC demonstrate some degree of exists. The IPG proposal is almost equal case), and, therefore, little agreement agreement between the parties). to the lower bound of the results of the between the parties. Given the wide Moreover, since the SDC Methodology SDC’s proffered distribution range. divergence between the competing cannot be credited, there is no record Given this near equality, the Judges find methodologies, the Judges cannot evidence explaining why the percentage

67 One important difference, though, was that the Sample of stations and took steps to mitigate its impact; the SDC simply utilized the Kessler MPAA did not rely on the non-random Kessler Sample.

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allocations for 2001 and 2003 should be to make a ‘‘downward adjustment’’ to a average of the allocations for the years so markedly different in those years participant’s proposal to reflect 2000 and 2002. Therefore, the compared to 2000 and 2002. ‘‘perceived deficiencies in the allocations for each of the years 2001 The IPG Methodology, while in methodology.’’ See, e.g., 1979 and 2003 shall be 60.92% to SDC and evidence, is so flawed that the Judges Determination, 47 FR at 9892. 39.08% to IPG. To summarize, the cannot credit the percentage allocations Accordingly, the Judges conclude that royalty allocations in the Devotional as proposed. Indeed, in prior the percentage allocations for the years category for the years 2000 through 2003 determinations, the CRT did not hesitate 2001 and 2003 should be set at the shall be:

ALLOCATION IN THE DEVOTIONAL CATEGORY

2000 2001 2002 2003 (percent) (percent) (percent) (percent)

SDC ...... 62.86 60.92 58.98 60.92 IPG ...... 37.14 39.08 41.02 39.08

V. Conclusion correction thereto by the Register, to be Copyright Royalty Judge. published in the Federal Register no This Final Determination determines later than the conclusion of the 60-day Dated: August 13, 2013. the allocation of cable royalty funds for review period. Suzanne M. Barnett, the years 2000, 2001, 2002, and 2003 in So ordered. Chief Copyright Royalty Judge. the Program Suppliers and Devotional Dated: August 13, 2013. Approved by: categories, respectively. The Register of Suzanne M. Barnett, Copyrights may review the Judges’ final James H. Billington, Chief Copyright Royalty Judge. determination for legal error in Librarian of Congress. resolving a material issue of substantive Jesse M. Feder, copyright law. The Librarian shall cause Copyright Royalty Judge. Appendix A the Judges’ final determination, and any David R. Strickler, The Judges ruled as follows.

CLAIMS DISMISSED AT SHOW CAUSE HEARING

Claim Year Claimant Rationale 2000 2001 2002 2003

Dreamworks LLC ...... Dismissed ...... Claimant terminated IPG’s authority ef- fective 12/31/02. Claimant identified in IPG’s petition that was filed after claimant terminated IPG’s authority. MPAA did not in- clude claimant in its petition for 2000. Litton Syndications ..... Dismissed ...... Claimant terminated IPG’s authority no later that 5/18/12. Claimant identified in IPG’s petition that was filed after claimaint termi- nated IPG’s author- ity. MPAA did not include claimant in its petition for 2000. Marty Stouffer Produc- Dismissed ...... Claimant alleges ter- tions. mination of IPG au- thority in july 2002. IPG’s petition that includes claimant was filed after al- leged termination. Claimant is not in- cluded in MPAA’s petition for 2000.

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CLAIMS DISMISSED AT SHOW CAUSE HEARING—Continued

Claim Year Claimant Rationale 2000 2001 2002 2003

Remodeling Today, ...... Dismissed ...... Claimant terminated Inc. DBA Today’s IPG’s authority on Homeowner. 3/1/04. Claimant identified in IPG’s petition that was filed after claimaint terminated IPG’s authority. MPAA did not include claimant in its peti- tion for 2002. The Television Syn- ...... Dismissed ...... Claimant terminated dication Company. IPG’s authority on 4/29/04. Claim for 2003 filed after claimant terminated IPG’s authority; no valid claim filed. Urban Latino TV ...... Dismissed ...... No claim was filed for 2000. Claimant ter- minated IPG’s au- thority on 5/28/03. Claimant identified in IPG’s petition that was filed after claimaint termi- nated IPG’s author- ity. MPAA did not include claimant in its petition for 2001.

[FR Doc. 2013–25453 Filed 10–29–13; 8:45 am] FOR FURTHER INFORMATION CONTACT: Mr. potential PNT service degradation if BILLING CODE 1410–72–P James J. Miller, Human Exploration and adjacent radio-band spectrum Operations Mission Directorate, NASA interference is introduced. Headquarters, Washington, DC 20546, Patricia D. Rausch, NATIONAL AERONAUTICS AND (202) 358–4417, fax (202) 358–2830, or [email protected]. Advisory Committee Management Officer, SPACE ADMINISTRATION National Aeronautics and Space SUPPLEMENTARY INFORMATION: The [Notice 13–125] Administration. meeting will be open to the public up [FR Doc. 2013–25719 Filed 10–29–13; 8:45 am] to the seating capacity of the room. It is National Space-Based Positioning, BILLING CODE 7510–13–P imperative that the meeting be held on Navigation, and Timing (PNT) Advisory these dates to accommodate the Board; Meeting scheduling priorities of the key NATIONAL COUNCIL ON DISABILITY AGENCY: National Aeronautics and participants. Visitors will be requested Space Administration (NASA). to sign a visitor’s register. Sunshine Act Meeting The agenda for the meeting includes ACTION: Notice of meeting. the following topics: TIME AND DATES: The Members of the • SUMMARY: In accordance with the Update on U.S. Space-Based National Council on Disability (NCD) Federal Advisory Committee Act, Public Positioning, Navigation and Timing will meet in closed executive session by Law 92–463, as amended, and the (PNT) Policy and Global Positioning phone on Friday, November 1, from 1:00 President’s 2004 U.S. Space-Based System (GPS) modernization. p.m.–2:00 p.m., Eastern. • Explore opportunities for enhancing Positioning, Navigation, and Timing PLACE: The meeting will occur by the interoperability of GPS with other (PNT) Policy, the National Aeronautics phone. The meeting will be open only emerging international Global and Space Administration (NASA) to the NCD Council Members. announces a meeting of the National Navigation Satellite Systems (GNSS). • Examine emerging trends and STATUS: The meeting on Friday, Space-Based Positioning, Navigation, November 1, from 1:00 p.m. till 2:00 and Timing (PNT) Advisory Board. requirements for PNT services in U.S. and international arenas through PNT p.m., Eastern will be closed to the DATES: Wednesday, December 4, 2013, Board technical assessments. public. 9:00 a.m. to 5:00 p.m.; and Thursday, • Prioritize current and planned GPS MATTERS TO BE CONSIDERED: The Council December 5, 2013, 9:00 a.m. to 12:00 capabilities and services while assessing will meet by phone to discuss matters p.m., Local Time. future PNT architecture options. related solely to internal personnel rules ADDRESSES: The Omni Shoreham Hotel, • Assess the current and projected and practices of exigent import, 2500 Calvert Street NW., Washington, economic impact of GPS on the United pursuant to paragraph (c)(2) of the DC 20008. States, and consider the effects of Sunshine Act, and in accordance with a

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determination made by the NCD ADAMS accession number for each ICN provides sufficient information to Chairperson. document referenced in this document demonstrate that the acceptance criteria CONTACT PERSON FOR MORE INFORMATION: (if that document is available in are met; and (3) any inspections for the Rebecca Cokley, NCD Executive ADAMS) is provided the first time that ITAAC have been completed and any Director, 1331 F Street NW., Suite 850, a document is referenced. ITAAC findings associated with the • Washington, DC 20004; 202–272–2004 NRC’s PDR: You may examine and ITAAC have been closed. (V), 202–272–2074 (TTY). purchase copies of public documents at The NRC staff’s determination of the the NRC’s PDR, Room O1–F21, One successful completion of this ITAAC is Dated: October 28, 2013. White Flint North, 11555 Rockville based on information available at this Rebecca Cokley, Pike, Rockville, Maryland 20852. time and is subject to the licensee’s Executive Director. FOR FURTHER INFORMATION CONTACT: ability to maintain the condition that [FR Doc. 2013–25871 Filed 10–28–13; 11:15 am] David H. Jaffe, Office of New Reactors, the acceptance criteria are met. If new BILLING CODE 6820–MA–P U.S. Nuclear Regulatory Commission, information disputes the NRC staff’s Washington, DC 20555–0001; telephone: determination, this ITAAC will be 301–415–1439, email: david.jaffe@ reopened as necessary. The NRC staff’s NUCLEAR REGULATORY nrc.gov. determination will be used to support a subsequent finding, pursuant to 10 CFR COMMISSION SUPPLEMENTARY INFORMATION: 52.103(g), at the end of construction that [Docket No. 052–00026; NRC–2008–0252] Licensee Notification of Completion of all acceptance criteria in the combined license are met. The ITAAC closure Inspections, Tests, Analyses, and ITAAC process is not finalized for this ITAAC Acceptance Criteria; Vogtle Electric On August 1, 2013, Southern Nuclear until the NRC makes an affirmative Generating Plant, Unit 3 Operating Company, Inc. (the licensee) submitted an ITAAC closure finding under 10 CFR 52.103(g). Any AGENCY: Nuclear Regulatory notification (ICN) under § 52.99(c)(1) of future updates to the status of this Commission. Title 10 of the Code of Federal ITAAC will be reflected on the NRC’s ACTION: Determination of inspections, Regulations (10 CFR), informing the Web site at http://www.nrc.gov/reactors/ tests, analyses, and acceptance criteria NRC that the licensee has successfully new-reactors/oversight/itaac.html. completion. performed the required inspections, Dated at Rockville, Maryland, this 23rd day tests, and analyses for ITAAC 2.1.03.11, of October 2013. SUMMARY: The U.S. Nuclear Regulatory and that the specified acceptance For the Nuclear Regulatory Commission. Commission (NRC) staff has determined criteria are met for Vogtle Electric David H. Jaffe, that the inspections, tests, and analyses Generating Plant, Unit 3 (ADAMS Senior Project Manager, Licensing Branch 4, have been successfully completed, and Accession No. ML13213A155). This Division of New Reactor Licensing, Office of that the specified acceptance criteria are ITAAC was approved as part of the New Reactors. met for Inspections, Tests, Analyses, issuance of the combined license, [FR Doc. 2013–25815 Filed 10–29–13; 8:45 am] and Acceptance Criteria (ITAAC), NPF–91, for this facility. BILLING CODE 7590–01–P 2.1.03.11 for the Vogtle Electric Generating Plant, Unit 3. NRC Staff Determination of Completion ADDRESSES: Please refer to Docket ID of ITAAC NUCLEAR REGULATORY NRC–2008–0252 when contacting the The NRC staff has determined that the COMMISSION NRC about the availability of inspections, tests, and analyses have information regarding this document. been successfully completed, and that Advisory Committee On Reactor You may access publicly-available the specified acceptance criteria are met Safeguards (ACRS) Meeting of the information related to this action by the for Vogtle Electric Generating Plant, ACRS Subcommittee on Planning and following methods: Unit 3, ITAAC 2.1.03.11. This notice Procedures; Notice of Meeting • Federal Rulemaking Web site: Go to fulfills the staff’s obligations under 10 The ACRS Subcommittee on Planning http://www.regulations.gov and search CFR 52.99(e)(1) to publish a notice in and Procedures will hold a meeting on for Docket ID NRC–2008–0252. Address the Federal Register of the NRC staff’s November 6, 2013, Room T–2B3, 11545 questions about NRC dockets to Carol determination of the successful Rockville Pike, Rockville, Maryland. Gallagher; telephone: 301–287–3442; completion of inspections, tests and The meeting will be open to public email: [email protected]. For analyses. attendance with the exception of a technical questions, contact the The documentation of the NRC staff’s portion that may be closed pursuant to individual listed in the FOR FURTHER determination is in the ITAAC Closure 5 U.S.C. 552b (c)(2) and (6) to discuss INFORMATION CONTACT section of this Verification Evaluation Form (VEF), organizational and personnel matters document. dated September 24, 2013 (ADAMS that relate solely to the internal • NRC’s Agencywide Documents Accession No. ML13274A279). The VEF personnel rules and practices of the Access and Management System is a form that represents the NRC staff’s ACRS, and information the release of (ADAMS): You may access publicly structured process for reviewing ICNs. which would constitute a clearly available documents online in the NRC The ICN presents a narrative description unwarranted invasion of personal Library at http://www.nrc.gov/reading- of how the ITAAC was completed, and privacy. rm/adams.html. To begin the search, the NRC’s ICN review process involves The agenda for the subject meeting select ‘‘ADAMS Public Documents’’ and a determination on whether, among shall be as follows: then select ‘‘Begin Web-based ADAMS other things, (1) the ICN provides Search.’’ For problems with ADAMS, sufficient information, including a Wednesday, November 6, 2013—12:00 please contact the NRC’s Public summary of the methodology used to p.m. Until 1:00 p.m. Document Room (PDR) reference staff at perform the ITAAC, to demonstrate that The Subcommittee will discuss 1–800–397–4209, 301–415–4737, or by the inspections, tests, and analyses have proposed ACRS activities and related email to [email protected]. The been successfully completed; (2) the matters. The Subcommittee will gather

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information, analyze relevant issues and November 5, 2013, Room T–2B1, 11545 If attending this meeting, please enter facts, and formulate proposed positions Rockville Pike, Rockville, Maryland. through the One White Flint North and actions, as appropriate, for The entire meeting will be open to building, 11555 Rockville Pike, deliberation by the Full Committee. public attendance. Rockville, MD. After registering with Members of the public desiring to The agenda for the subject meeting security, please contact Mr. Theron provide oral statements and/or written shall be as follows: Brown (Telephone 240–888–9835) to be comments should notify the Designated Tuesday, November 5, 2013—8:30 a.m. escorted to the meeting room. Federal Official (DFO), Quynh Nguyen Until 5:00 p.m. Dated: October 22, 2013. (Telephone 301–415–5844 or Email: Cayetano Santos, [email protected]) five days prior The Subcommittee will review and to the meeting, if possible, so that discuss options for addressing the Near Chief, Technical Support Branch, Advisory Committee on Reactor Safeguards. arrangements can be made. Thirty-five Term Task Force (NTTF) hard copies of each presentation or Recommendation 1: Enhanced [FR Doc. 2013–25809 Filed 10–29–13; 8:45 am] handout should be provided to the DFO Regulatory Framework. The BILLING CODE 7590–01–P thirty minutes before the meeting. In Subcommittee will hear presentations addition, one electronic copy of each by and hold discussions with the NRC NUCLEAR REGULATORY presentation should be emailed to the staff, the Nuclear Energy Institute, and COMMISSION DFO one day before the meeting. If an other interested persons regarding this electronic copy cannot be provided matter. The Subcommittee will gather information, analyze relevant issues and Advisory Committee on Reactor within this timeframe, presenters Safeguards (ACRS); Meeting of the should provide the DFO with a CD facts, and formulate proposed positions and actions, as appropriate, for ACRS Subcommittee on Evolutionary containing each presentation at least Power Reactor; Notice of Meeting thirty minutes before the meeting. deliberation by the Full Committee. Electronic recordings will be permitted Members of the public desiring to The ACRS Subcommittee on U.S. only during those portions of the provide oral statements and/or written Evolutionary Power Reactor (U.S. EPR) meeting that are open to the public. comments should notify the Designated will hold a meeting on November 6, Detailed procedures for the conduct of Federal Official (DFO), Michael 2013, Room T–2B1, 11545 Rockville and participation in ACRS meetings Snodderly (Telephone 301–415–2241 or Pike, Rockville, Maryland. were published in the Federal Register Email: [email protected]) five The meeting will be open to public on October 18, 2012, (77 FR 64146– days prior to the meeting, if possible, so attendance with the exception of a 64147). that appropriate arrangements can be portion that may be closed to protection Information regarding changes to the made. Thirty-five hard copies of each information that is proprietary pursuant agenda, whether the meeting has been presentation or handout should be to 5 U.S.C. 552(c)(4). canceled or rescheduled, and the time provided to the DFO thirty minutes The agenda for the subject meeting allotted to present oral statements can before the meeting. In addition, one shall be as follows: be obtained by contacting the identified electronic copy of each presentation should be emailed to the DFO one day Wednesday, November 6, 2013, 8:30 DFO. Moreover, in view of the a.m. until 4:45 p.m. possibility that the schedule for ACRS before the meeting. If an electronic copy meetings may be adjusted by the cannot be provided within this The Subcommittee will review and Chairman as necessary to facilitate the timeframe, presenters should provide discuss the Open Items for Chapter 9 conduct of the meeting, persons the DFO with a CD containing each and portions of Chapter 2 (Section 2.4) planning to attend should check with presentation at least thirty minutes for the Calvert Cliffs Combined License the DFO if such rescheduling would before the meeting. Electronic Application (COLA) NRC Safety result in a major inconvenience. recordings will be permitted only Evaluation Report (SER) with open If attending this meeting, please enter during those portions of the meeting items 0. The Subcommittee will hear through the One White Flint North that are open to the public. Detailed presentations by and hold discussions building, 11555 Rockville Pike, procedures for the conduct of and with the NRC staff, Unistar Nuclear Rockville, MD. After registering with participation in ACRS meetings were Operating Services, and other interested security, please contact Mr. Theron published in the Federal Register on persons regarding this matter. The Brown (240–888–9835) to be escorted to October 18, 2012, (77 FR 64146–64147). Subcommittee will gather information, the meeting room. Detailed meeting agendas and meeting analyze relevant issues and facts, and transcripts are available on the NRC formulate proposed positions and Dated: October 22, 2013. Web site at http://www.nrc.gov/reading- actions, as appropriate, for deliberation Cayetano Santos, rm/doc-collections/acrs. Information by the Full Committee. Chief, Technical Support Branch, Advisory regarding topics to be discussed, Members of the public desiring to Committee on Reactor Safeguards. changes to the agenda, whether the provide oral statements and/or written [FR Doc. 2013–25806 Filed 10–29–13; 8:45 am] meeting has been canceled or comments should notify the Designated BILLING CODE 7590–01–P rescheduled, and the time allotted to Federal Official (DFO), Kathy Weaver present oral statements can be obtained (Telephone 301–415–6236 or Email: from the Web site cited above or by [email protected]) five days prior NUCLEAR REGULATORY contacting the identified DFO. to the meeting, if possible, so that COMMISSION Moreover, in view of the possibility that appropriate arrangements can be made. Advisory Committee On Reactor the schedule for ACRS meetings may be Thirty-five hard copies of each Safeguards (ACRS); Meeting of the adjusted by the Chairman as necessary presentation or handout should be ACRS Subcommittee On Fukushima; to facilitate the conduct of the meeting, provided to the DFO thirty minutes Notice of Meeting persons planning to attend should check before the meeting. In addition, one with these references if such electronic copy of each presentation The ACRS Subcommittee on rescheduling would result in a major should be emailed to the DFO one day Fukushima will hold a meeting on inconvenience. before the meeting. If an electronic copy

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cannot be provided within this 8:35 a.m.–10:30 a.m.: Safety from the NRC Executive Director for timeframe, presenters should provide Evaluation Associated with the Watts Operations to comments and the DFO with a CD containing each Bar, Unit 2, Operating License (Open)— recommendations included in recent presentation at least thirty minutes The Committee will hear presentations ACRS reports and letters. before the meeting. Electronic by and hold discussions with 1:00 p.m.–5:30 p.m.: Preparation of recordings will be permitted only representatives of the NRC staff and ACRS Reports (Open)—The Committee during those portions of the meeting Tennessee Valley Authority regarding will continue its discussion of proposed that are open to the public. Detailed the safety evaluation associated with the ACRS reports on matters discussed procedures for the conduct of and Watts Bar, Unit 2, operating license. during this meeting. participation in ACRS meetings were 10:45 a.m.–12:45 p.m.: Near-Term 5:30 p.m.–6:00 p.m.: Miscellaneous published in the Federal Register on Task Force (NTTF) Recommendation 1: (Open)—The Committee will continue October 18, 2012 (77 FR 64146–64147). Enhanced Regulatory Framework its discussion of matters related to the Detailed meeting agendas and meeting (Open)—The Committee will hear conduct of Committee activities and transcripts are available on the NRC presentations by and hold discussions specific issues that were not completed Web site at http://www.nrc.gov/reading- with representatives of the NRC staff during previous meetings. Procedures for the conduct of and rm/doc-collections/acrs. Information regarding the NTTF Recommendation 1: participation in ACRS meetings were regarding topics to be discussed, Enhanced Regulatory Framework. published in the Federal Register on changes to the agenda, whether the 1:45 p.m.–2:15 p.m.: Assessment of October 18, 2012, (77 FR 64146–64147). meeting has been canceled or the Quality of Selected NRC Research In accordance with those procedures, rescheduled, and the time allotted to Projects (Open)—The Committee will oral or written views may be presented present oral statements can be obtained hold discussions with members of the by members of the public, including from the Web site cited above or by ACRS panels performing the quality representatives of the nuclear industry. contacting the identified DFO. assessment of the following NRC research projects: Persons desiring to make oral statements Moreover, in view of the possibility that should notify Quynh Nguyen, Cognizant the schedule for ACRS meetings may be —NUREG/CR–7026: Application of ACRS Staff (Telephone: 301–415–5844, adjusted by the Chairman as necessary Model Abstraction Techniques to Email: [email protected]), five to facilitate the conduct of the meeting, Simulate Transport in Soils days before the meeting, if possible, so persons planning to attend should check —NUREG–2121: Fuel Fragmentation, that appropriate arrangements can be with these references if such Relocation, and Dispersal During the made to allow necessary time during the rescheduling would result in a major Loss-of-Coolant Accident meeting for such statements. In view of inconvenience. 2:15 p.m.–3:15 p.m.: Draft Report on the possibility that the schedule for If attending this meeting, please enter the Biennial ACRS Review of the NRC ACRS meetings may be adjusted by the through the One White Flint North Safety Research Program (Open)—The Chairman as necessary to facilitate the building, 11555 Rockville Pike, Committee will discuss the draft report conduct of the meeting, persons Rockville, MD. After registering with on the biennial ACRS review of the NRC planning to attend should check with security, please contact Mr. Theron Safety Research Program. the Cognizant ACRS staff if such Brown (Telephone 240–888–9835) to be 3:30 p.m.–6:00 p.m.: Preparation of rescheduling would result in major escorted to the meeting room. ACRS Reports (Open)—The Committee inconvenience. Dated: October 22, 2013. will discuss proposed ACRS reports on Thirty-five hard copies of each Cayetano Santos, matters discussed during this meeting. presentation or handout should be provided 30 minutes before the meeting. Chief, Technical Support Branch, Advisory Friday, November 8, 2013, Conference In addition, one electronic copy of each Committee on Reactor Safeguards. Room T2–B1, 11545 Rockville Pike, presentation should be emailed to the [FR Doc. 2013–25790 Filed 10–29–13; 8:45 am] Rockville, Maryland Cognizant ACRS Staff one day before BILLING CODE 7590–01–P 8:30 a.m.–10:00 a.m.: Future ACRS meeting. If an electronic copy cannot be Activities/Report of the Planning and provided within this timeframe, NUCLEAR REGULATORY Procedures Subcommittee (Open/ presenters should provide the Cognizant COMMISSION Closed)—The Committee will discuss ACRS Staff with a CD containing each the recommendations of the Planning presentation at least 30 minutes before Advisory Committee On Reactor and Procedures Subcommittee regarding the meeting. Safeguards; Notice of Meeting items proposed for consideration by the In accordance with Subsection 10(d) Full Committee during future ACRS Public Law 92–463, and 5 U.S.C. In accordance with the purposes of Meetings, and matters related to the 552b(c), certain portions of this meeting Sections 29 and 182b of the Atomic conduct of ACRS business including may be closed, as specifically noted Energy Act (42 U.S.C. 2039, 2232b), the anticipated workload and member above. Use of still, motion picture, and Advisory Committee on Reactor assignments. television cameras during the meeting Safeguards (ACRS) will hold a meeting [Note: A portion of this meeting may be may be limited to selected portions of on November 7–8, 2013, 11545 closed pursuant to 5 U.S.C. 552b(c)(2) and (6) the meeting as determined by the Rockville Pike, Rockville, Maryland. to discuss organizational and personnel Chairman. Electronic recordings will be matters that relate solely to internal permitted only during the open portions Thursday November 7, 2013, personnel rules and practices of ACRS, and Conference Room T2–B1, 11545 of the meeting. information the release of which would ACRS meeting agenda, meeting Rockville Pike, Rockville, Maryland constitute a clearly unwarranted invasion of transcripts, and letter reports are 8:30 a.m.–8:35 a.m.: Opening personal privacy.] available through the NRC Public Remarks by the ACRS Chairman 10:00 a.m.–10:15 a.m.: Reconciliation Document Room at (Open)—The ACRS Chairman will make of ACRS Comments and [email protected], or by calling the opening remarks regarding the conduct Recommendations (Open)—The PDR at 1–800–397–4209, or from the of the meeting. Committee will discuss the responses Publicly Available Records System

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(PARS) component of NRC’s document copy. Upon publication, please destroy Affected Public: General Public. system (ADAMS) which is accessible any prior versions you have in stock. Number of Respondents: 22,300 per from the NRC Web site at http:// The SF–15 will be obtainable on the year. www.nrc.gov/reading-rm/adams.html or OPM Web site at http://www.opm.gov/ Estimated Time per Respondent: 10 http://www.nrc.gov/reading-rm/doc- forms/standard-forms/. No comments minutes. collections/ACRS/. were received for this information Total Burden Hours: 3,717 hours per Video teleconferencing service is collection. The purpose of this notice is year. available for observing open sessions of to allow an additional 30 days for public U.S. Office of Personnel Management. ACRS meetings. Those wishing to use comments. The Office of Management Elaine Kaplan, this service should contact Mr. Theron and Budget is particularly interested in Acting Director. Brown, ACRS Audio Visual Technician comments that: (301–415–8066), between 7:30 a.m. and 1. Evaluate whether the proposed [FR Doc. 2013–25733 Filed 10–29–13; 8:45 am] 3:45 p.m. (ET), at least 10 days before collection of information is necessary BILLING CODE 6325–39–P the meeting to ensure the availability of for the proper performance of the this service. Individuals or functions of OPM, including whether OFFICE OF PERSONNEL organizations requesting this service the information will have practical MANAGEMENT will be responsible for telephone line utility; charges and for providing the 2. Evaluate the accuracy of OPM’s Hispanic Council on Federal equipment and facilities that they use to estimate of the burden of the proposed Employment establish the video teleconferencing collection of information, including the link. The availability of video validity of the methodology and AGENCY: Office of Personnel teleconferencing services is not assumptions used; Management. guaranteed. 3. Enhance the quality, utility, and ACTION: Cancelling and Re-Scheduling Dated: October 24, 2013. clarity of the information to be of Council Meetings. collected; and Andrew L. Bates, 4. Minimize the burden of the SUMMARY: The Hispanic Council on Advisory Committee Management Officer. collection of information on those who Federal Employment (Council) is [FR Doc. 2013–25794 Filed 10–29–13; 8:45 am] are to respond, including through the cancelling the October 31, 2013 Council BILLING CODE 7590–01–P use of appropriate automated, meeting and will hold its remaining electronic, mechanical, or other 2013 Council meeting on the date and technological collection techniques or location shown below. The Council is OFFICE OF PERSONNEL other forms of information technology, an advisory committee composed of MANAGEMENT e.g., permitting electronic submissions representatives from Hispanic of responses. organizations and senior government Submission for Review: SF–15 DATES: Comments are encouraged and officials. Along with its other Application for 10-Point Veteran will be accepted until November 29, responsibilities, the Council shall advise Preference 2013. This process is conducted in the Director of the Office of Personnel accordance with 5 CFR 1320.1. Management on matters involving the AGENCY: Office of Personnel recruitment, hiring, and advancement of ADDRESSES: Interested persons are Management. Hispanics in the Federal workforce. The invited to submit written comments on ACTION: 30-Day Notice and request for Council is co-chaired by the Chief of the proposed information collection by comments. Staff of the Office of Personnel mail to the Office of Information and Management and the Chair of the SUMMARY: In accordance with the Regulatory Affairs, Office of National Hispanic Leadership Agenda Paperwork Reduction Act of 1995 (Pub. Management Budget, 725 17th Street (NHLA). L. 104–13, May 22, 1995), this notice NW., Washington, DC 20503, Attention: The meeting is open to the public. announces the Office of Personnel Desk Officer for the Office of Personnel Please contact the Office of Personnel Management’s (OPM) plan to submit to _ Management, by email to oira Management at the address shown the Office of Management and Budget [email protected], or by fax to below if you wish to present material to (OMB) a request for clearance of a (202) 395–6974. the Council at any of the meetings. The revised information collection, Standard FOR FURTHER INFORMATION CONTACT: A manner and time prescribed for Form (SF) 15, Application for 10-Point copy of this Information Collection presentations may be limited, Veteran Preference. The SF–15 is used Request (ICR), with applicable depending upon the number of parties by agencies, OPM examining offices, supporting documentation, may be that express interest in presenting and agency appointing officials to obtained by contacting the Office of information. adjudicate individuals’ claims for Information and Regulatory Affairs, veterans’ preference in accordance with Office of Management Budget, 725 17th DATES: December 12, 2013 from 2:00 the Veterans’ Preference Act of 1944. Street NW., Washington, DC 20503, p.m.–4:00 p.m. OPM’s revisions will (1) remove Attention: Desk Officer for the Office of Location: U.S. Office of Personnel obsolete items; and (2) update language Personnel Management or sent via Management, 1900 E St. NW., as a result of the enactment of the VOW electronic mail to oira_submission@ Washington, DC 20415. (Veterans Opportunity to Work) to Hire omb.eop.gov or faxed to (202) 395–6974. FOR FURTHER INFORMATION CONTACT: Heroes Act of 2011 (Pub. L. 112–56). Veronica E. Villalobos, Director for the The SF–15 will be revised to create a Analysis Office of Diversity and Inclusion, Office PDF fillable form for applicant use. The Agency: Hiring Policy, Office of of Personnel Management, 1900 E St. only acceptable version of this form will Personnel Management. NW., Suite 5H35, Washington, DC be as stated above, but consistent with Title: SF–15 Application for 10-Point 20415. Phone (202) 606–0020, FAX current practice, the form may be Veteran Preference. (202) 606–2183 or email at submitted electronically or in hard OMB Number: 3206–0001. [email protected].

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U.S. Office of Personnel Management. which issuers may phase in coverage identifiable data to create records about Elaine Kaplan, over a period of 4 years. MSP enrollee inquiries or complaints, Acting Director. Under section 1334(a)(4) of the which may have to be referred to other [FR Doc. 2013–25724 Filed 10–29–13; 8:45 am] Affordable Care Act, OPM must State and Federal Government agencies. BILLING CODE 6820–B2–P administer the MSP Program ‘‘in a However, OPM and external analysts manner similar to the manner in which’’ using the database for analysis purposes it implements the contracting provisions will have access only to de-identified OFFICE OF PERSONNEL of the Federal Employees Health data. Benefits (FEHB) Program under 5 U.S.C. MANAGEMENT U.S. Office of Personnel Management. 8901 et seq. In the MSP Program final Privacy Act of 1974: New System of rule (78 FR 15560, March 11, 2013), Elaine Kaplan, Records OPM interpreted section 1334(a)(4) of Acting Director. the Affordable Care Act to require AGENCY: U.S. Office of Personnel implementation of a uniform, nationally OPM CENTRAL–19 Management (OPM). applicable external review process for SYSTEM NAME: ACTION: Notice of a new system of MSP options, consistent with the records. External Review Records for Multi- requirements of section 2719 of the State Plan (MSP) Program Public Health Service Act and similar to SUMMARY: The U.S. Office of Personnel the process administered by OPM under SYSTEM LOCATION: Management (OPM) proposes to add the FEHB Program. This process will OPM/Central–19: External Review Office of Personnel Management, ensure that MSP Program contracts are Records for Multi-State Plan (MSP) 1900 E Street NW., Washington, DC administered consistently throughout Program to its inventory of records 20415. all 51 jurisdictions that would be served systems subject to the Privacy Act of by an MSP option. Specifically, under CATEGORIES OF INDIVIDUALS COVERED BY THE 1974 (5 U.S.C. 552a), as amended. This 45 CFR 800.503, OPM is authorized to SYSTEM: action is necessary to meet the conduct external review of adverse This system will contain records on requirements of the Privacy Act to benefit determinations by MSP issuers MSP enrollees who request external publish in the Federal Register notice of using a process similar to the FEHB review of adverse benefit the existence and character of records Program disputed claims process. In determinations, and MSP enrollees who maintained by the agency. 5 U.S.C. addition to requests for external review, contact OPM about an inquiry or 552a(e)(4). we anticipate that MSP enrollees may complaint. DATES: This action will be effective contact OPM about inquiries or CATEGORIES OF RECORDS IN THE SYSTEM: without further notice on December 9, complaints regarding MSP options, In order to process a request for 2013 unless comments are received that which may have to be referred to other external review, OPM may require an would result in a contrary appropriate entities such as State MSP enrollee or an authorized determination. insurance departments, State consumer assistance programs, and the U.S. representative to submit the following ADDRESSES: Send written comments to information about the enrollee, which the Office of Personnel Management, Department of Health and Human Services. OPM may also collect, as necessary, to ATTN: Padma Shah, U.S. Office of process enrollee inquiries and Personnel Management, 1900 E Street The purpose of this system of records is to provide a central database through complaints: NW., Room 2347, Washington, DC a. The adverse benefit determination 20415. which OPM may conduct external review of adverse benefit that the individual received from the FOR FURTHER INFORMATION CONTACT: determinations under the MSP Program, MSP issuer. Padma Shah by telephone at 202–606– refer MSP enrollees to other entities b. Name. c. Date of birth. 2128, or by email at [email protected]. about their inquiries or complaints, and SUPPLEMENTARY INFORMATION: The d. Gender. correspond with MSP enrollees. OPM e. Social Security Number. Patient Protection and Affordable Care will collect, manage, and analyze health f. Phone number(s), postal address(es) Act, Public Law 111–148, was enacted services data that MSP enrollees, MSP (current and mailing), and email on March 23, 2010, and the Health Care issuers, health care providers, and address(es). and Education Reconciliation Act, others will furnish through secure data g. Insurance identification (ID) Public Law 111–152, was enacted on transfer. The information contained in number. March 30, 2010 (collectively referred to the database will help ensure that (1) h. Group number. as ‘‘the Affordable Care Act’’). MSP enrollees have adequate access to i. Scanned copy of insurance ID card. Section 1334 of the Affordable Care independent review of adverse benefit j. The State and county of coverage. Act and its implementing regulations determinations, (2) MSP enrollees are k. An indication of whether the (codified at 45 CFR part 800) direct referred to appropriate entities about external review request is for an urgent OPM to establish the Multi-State Plan their inquiries or complaints, (3) OPM claim. (MSP) Program to foster competition corresponds with MSP enrollees, and (4) l. A brief statement of the reason for among plans offering coverage on the OPM collects the information necessary the external review request. individual and small group health for the enforcement of MSP Program m. The MSP issuer’s name. insurance markets on the Affordable contracts and implementation of the n. The name of the MSP option that Insurance Exchanges (referred to as program. covers the MSP enrollee. ‘‘Exchanges’’ or ‘‘Health Insurance OPM will use identifiable data to o. The claim number. Marketplaces’’). Specifically, OPM must create records that are necessary to p. Subscriber’s information: Name, contract with private health insurance facilitate external review of MSP issuer Social Security Number, date of birth, issuers to offer at least two MSP options adverse benefit determinations by OPM gender, phone number(s), postal on each of the Exchanges in the 50 analysts and independent review address(es) (current and mailing), and States and the District of Columbia, in organizations. Likewise, OPM will use email address(es).

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q. In cases where an authorized PURPOSE: Congressional office made at the request representative requests external review, OPM operates this system of records of that individual. evidence of authorization and the to support the administration of the d. For Judicial/Administrative following information about the MSP Program. The primary purpose of Proceedings—To disclose information to authorized representative: name, phone this system of records is to aid in the another Federal agency, to a court, or a number(s), postal address(es) (current administration of external review of party in litigation before a court or in an and mailing), and email address(es). adverse benefit determinations for MSP administrative proceeding being r. Name of health care provider. enrollees. OPM must have the capacity conducted by a Federal agency, when s. Health care provider address(es). to collect, manage, and access health the Government is a party to the judicial t. Any additional information insurance benefits appeals information or administrative proceeding. In those necessary to process the request for and documents on an ongoing basis in cases where the Government is not a external review. order for OPM to: party to the processing, records may be In addition, MSP enrollees may a. Determine eligibility for the MSP disclosed if a subpoena has been signed choose to submit additional information Program external review process. by a judge. that will become part of the system of b. Review adverse benefit e. For the National Archives and records. This information may include, determinations by MSP issuers to Records Administration or the General but is not limited to, the following: provide effective external review. Services Administration—To disclose a. A statement about why the MSP c. Track the progress of individual information to the National Archives enrollee believes the MSP issuer’s requests for external review and ensure and Records Administration (NARA) or adverse benefit determination was that MSP enrollees do not submit General Services Administration for use wrong, based on specific benefit duplicative requests. in records management inspections provisions in the plan brochure, d. Make information available for any conducted pursuant to 44 U.S.C. 2904 contract, or statement of benefits. subsequent litigation related to a and 2906. b. Copies of documents that support disputed external review decision. f. For Litigation—To disclose to the the request for external review, such as e. Monitor whether MSP issuers are Department of Justice or in a proceeding physicians’ letters, operative reports, providing benefits to which MSP before a court, adjudicative body, or bills, medical records, and explanation enrollees are entitled under the terms of other administrative body before which of benefits (EOB) forms. the applicable MSP Program contract. OPM is authorized to appear, when— c. Copies of all letters the MSP f. Maintain records for parties to the (1) OPM, or any component thereof; enrollee sent to the MSP issuer about dispute so that the MSP enrollee and or the claim. MSP issuer can obtain a record of past (2) Any employee of OPM in his or d. Copies of all letters the MSP issuer external reviews in which they were her official capacity; or sent to the MSP enrollee about the involved. (3) Any employee of OPM in his or claim. g. Track and report information about her individual capacity where the MSP issuers will provide additional the administration of the MSP Program. Department of Justice or OPM has information and documentation. h. Refer MSP enrollees to appropriate agreed to represent the employee; or Consequently, the records in the system entities about their inquiries or (4) The United States, when OPM may include the following information complaints. determines that litigation is likely to about the MSP enrollee: i. Correspond with MSP enrollees. affect OPM or any of its components— a. Personal identifying information ROUTINE USES OF RECORDS MAINTAINED IN THE is a party to litigation or has an (name, Social Security Number, date of SYSTEM, INCLUDING CATEGORIES OF USERS AND interest in such litigation, and the use birth, gender, phone number, etc.). THE PURPOSES OF SUCH USES: of such records by the Department of b. Postal address(es) (current and In addition to those disclosures Justice or OPM is deemed by OPM to be mailing). otherwise permitted under 5 U.S.C. relevant and necessary to the litigation, c. Dependent information (spouse, 552a(b), all or a portion of the records provided, however, that the disclosure dependents and their addresses). or information contained in this system is compatible with the purpose for d. Employment information. may be disclosed outside of OPM, for a which records were collected. e. Health care provider information. routine use under 5 U.S.C. 552a(b)(3) as g. For Non-Federal Personnel—To f. Health care coverage information. follows: disclose information to contractors, g. Health care procedure information. a. For Claims Adjudication—To grantees, or volunteers performing or h. Health care diagnoses information. disclose information to agency working on a contract, service, grant, i. Provider charges and contractors conducting claim reviews cooperative agreement, or job for the reimbursement information on coverage, for the purpose of adjudicating an Federal Government, where the procedures and diagnoses. appeal. disclosure is compatible with the j. Any other letters or other b. For Law Enforcement Purposes—To purpose for which records are collected. documents submitted in connection disclose pertinent information to the h. In the Event of a Data Breach—In with the adverse benefit determination appropriate Federal, State, or local the event of a data breach, records may by MSP enrollees, health care providers, agency responsible for investigating, be disclosed to appropriate Federal or MSP issuers. prosecuting, enforcing, or implementing agencies and agency contractors that The aforementioned information may a statute, rule, regulation, or order, have a need to know the information for also be collected, as necessary, to where OPM becomes aware of an the purpose of assisting the agency’s process MSP enrollee inquiries and indication of a violation or potential efforts to respond to a suspected or complaints. violation of civil or criminal law or confirmed breach of the security or regulation. confidentiality of information AUTHORITY FOR MAINTENANCE OF THE SYSTEM: c. For Congressional Inquiry—To maintained in this system of records, OPM has authority to administer the provide information to a Congressional and the information disclosed is MSP Program under section 1334 of the office from the record of an individual relevant and necessary for that Affordable Care Act (42 U.S.C. 18054). in response to an inquiry from that assistance.

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i. To researchers inside and outside Federal employees and employees of 1900 E Street NW., Room 2347, the Federal Government, approved in Federal contractors are required to have Washington, DC 20415. advance by OPM on the basis of been the subject of a favorable demonstrated aptitude and a written adjudication following an appropriate NOTIFICATION AND RECORD ACCESS PROCEDURE: research plan, for the purpose of background investigation before they are Individuals wishing to determine conducting analysis of health care and allowed physical access to OPM and whether this system of records contains health insurance trends and topical access to any records. OPM’s information about them may do so by health-related issues compatible with environment is equipped with writing to the U.S. Office of Personnel the purposes for which the records were electronic badge readers restricting Management, FOIA/PA Requester collected and formulating health care access to authorized personnel only and Service Center, 1900 E Street NW., program changes and enhancements to has safeguards in place to alert security Room 5415, Washington, DC 20415– limit cost growth, improve outcomes, personnel if unauthorized personnel 7900 or by emailing [email protected]. increase accountability, and improve attempt to gain access to OPM’s Individuals must furnish the efficiency in program administration. In environment. OPM employs armed following information for their records all cases, researchers external to OPM physical security guards 365 days a to be located: will access a public use file that will be year, 24 hours a day, who patrol OPM 1. Full name. maintained for such purposes; will headquarters, including entry and exit 2. Date and place of birth. contain only de-identified data; and will points. Closed Circuit Video cameras are 3. Social Security Number. be structured, where appropriate, to strategically located on every floor and 4. Signature. protect MSP enrollee confidentiality external to the facility. 5. Available information regarding the where identities may be discerned The system will employ National type of information requested, including because there are fewer records under Institute of Standards and Technology the name of the MSP issuer involved in certain demographic or other variables. (NIST) Security Controls identified in any external review and the In all disclosures to analysts under this the most recent version of Special approximate date of the request for routine use, only de-identified data will Publication SP 800–53. NIST 800–53 external review. be disclosed. security controls are the management, 6. The reason why the individual j. If OPM determines that jurisdiction operational, and technical safeguards or believes this system contains over an MSP enrollee’s inquiry or countermeasures employed within an information about him/her. complaint lies with another Federal or organizational information system to 7. The address to which the State agency, information in this system protect the confidentiality, integrity, information should be sent. of records may be disclosed to other and availability of the system and its Individuals requesting access must agencies, such as a State insurance information. OPM will perform a also comply with OPM’s Privacy Act department, a State Consumer Security Assessment and Authorization regulations regarding verification of Assistance Program, or the U.S. (SA&A) following the NIST 800–53 identity and access to records (5 CFR Department of Health and Human standard in order to obtain an Authority part 297). In addition, the requester Services. to Operate (ATO). The system will must provide a notarized statement or employ role-based access controls to an unsworn declaration made in POLICIES AND PRACTICES OF STORING, further restrict access to data, based on accordance with 28 U.S.C. 1746, in the RETRIEVING, SAFEGUARDING, RETAINING, AND the functions that users are authorized following format: DISPOSING OF RECORDS IN THE SYSTEM: • to perform. The system will be fully If executed outside the United STORAGE: compliant with all applicable provisions States: ‘‘I declare (or certify, verify, or Paper records will be maintained in of the Privacy Act, Health Insurance state) under penalty of perjury under the locked file cabinets within OPM and/or Portability and Accountability Act laws of the United States of America any contractors. Any electronic records (HIPAA), Federal Information Security that the foregoing is true and correct. will be maintained in electronic Executed on [date]. [Signature].’’ Management Act (FISMA), Federal • systems. Records Act, Office of Management and If executed within the United Budget (OMB) guidance, and NIST States, its territories, possessions, or RETRIEVABILITY: guidance. commonwealths: ‘‘I declare (or certify, Records will primarily be verify, or state) under penalty of perjury manipulated, managed and summarized RETENTION AND DISPOSAL: that the foregoing is true and correct. using a unique number assigned to each The records in this system will be Executed on [date]. [Signature].’’ external review or case about an inquiry retained for at least 6 years. Records CONTESTING RECORD PROCEDURE: or complaint. However, information may be retained for a longer period for may also be accessible by other the system purposes established in this Individuals wishing to request identifying information, including system of records notice, or for other amendment of records about them name, date of birth, or Social Security purposes as required under law (e.g., for should write to the U.S. Office of Number. purposes of litigation). A records Personnel Management, FOIA/PA retention schedule will be established Requester Service Center, 1900 E Street SAFEGUARDS: with NARA, and no records will be NW., Room 5415, Washington, DC OPM will maintain records within its destroyed until that schedule has been 20415–7900. ATTN: Healthcare and secure headquarters in Washington, DC. established. Once that schedule is Insurance, National Healthcare Electronic records will be maintained established, it will set forth methods for Operations. on password-protected computers and disposing records that would no longer Individuals must furnish the systems. Computer firewalls will be be eligible for retention. following information in writing for maintained to prevent access by their records to be located: unauthorized personnel. Any paper SYSTEM MANAGERS AND ADDRESSES: 1. Full name. records will be delivered to a locked The system manager is Edward M. 2. Date and place of birth. P.O. Box and kept in locked file DeHarde, U.S. Office of Personnel 3. Social Security Number. cabinets. Management, Healthcare and Insurance, 4. Signature.

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5. Available information regarding the Filing Online system at http:// Retail Alliances, asserts that the contract type of information that the individual www.prc.gov. Those who cannot submit will cover its attributable costs, make a seeks to have amended, including the comments electronically should contact positive contribution to coverage of name of the MSP issuer involved in any the person identified in the FOR FURTHER institutional costs, and increase external review and the approximate INFORMATION CONTACT section by contribution toward the requisite 5.5 date of the request for external review. telephone for advice on filing percent of the Postal Service’s total Individuals requesting access must alternatives. institutional costs. Id. Attachment D at also comply with OPM’s Privacy Act FOR FURTHER INFORMATION CONTACT: 1. Mr. Code contends that there will be regulations regarding verification of Stephen L. Sharfman, General Counsel, no issue of market dominant products identity and access to records (5 CFR at 202–789–6820. subsidizing competitive products as a part 297). In addition, the requester result of this contract. Id. SUPPLEMENTARY INFORMATION: must provide a notarized statement or Related contract. The Postal Service an unsworn declaration made in Table of Contents included a redacted version of the related contract with the Request. Id. accordance with 28 U.S.C. 1746, in the I. Introduction following format: Attachment B. The contract is • II. Notice of Filings If executed outside the United III. Ordering Paragraphs scheduled to become effective within 90 States: ‘‘I declare (or certify, verify, or days after the Postal Service receives state) under penalty of perjury under the I. Introduction final regulatory approval from the laws of the United States of America In accordance with 39 U.S.C. 3642 Commission. Id. at 3. The contract will that the foregoing is true and correct. and 39 CFR 3020.30 et seq., the Postal expire one year from the effective date. Executed on [date]. [Signature].’’ Service filed a formal request and Id. The Postal Service represents that • If executed within the United associated supporting information to the contract is consistent with 39 U.S.C. States, its territories, possessions, or add Priority Mail Express & Priority 3633(a). Id. Attachment E. commonwealths: ‘‘I declare (or certify, Mail Contract 15 to the competitive The Postal Service filed much of the verify, or state) under penalty of perjury product list.1 The Postal Service asserts supporting materials, including the that the foregoing is true and correct. that Priority Mail Express & Priority related contract, under seal. Id. Executed on [date]. [Signature].’’ Mail Contract 15 is a competitive Attachment F. It maintains that the product ‘‘not of general applicability’’ redacted portions of the Governors’ RECORD SOURCE CATEGORIES: within the meaning of 39 U.S.C. Decision, contract, customer-identifying Information in this system of records 3632(b)(3). Request at 1. The Request information, and related financial is obtained from: has been assigned Docket No. MC2014– information should remain confidential. a. MSP enrollees who request external 3. Id. at 3. This information includes the review, or who contact OPM about an The Postal Service price structure, underlying costs and inquiry or complaint. contemporaneously filed a redacted assumptions, pricing formulas, b. Authorized representatives of MSP contract related to the proposed new information relevant to the customer’s enrollees. product under 39 U.S.C. 3632(b)(3) and mailing profile, and cost coverage c. Health care providers. 39 CFR 3015.5. Id. Attachment B. The projections. Id. The Postal Service asks d. MSP issuers. the Commission to protect customer- e. Medical professionals providing instant contract has been assigned identifying information from public expert medical review under contract Docket No. CP2014–3. Request. To support its Request, the disclosure indefinitely. Id. at 7. with OPM. Postal Service filed six attachments as II. Notice of Filings SYSTEM EXEMPTIONS: follows: • None. Attachment A—a redacted copy of The Commission establishes Docket Governors’ Decision No. 11–6, Nos. MC2014–3 and CP2014–3 to [FR Doc. 2013–25725 Filed 10–29–13; 8:45 am] authorizing the new product; consider the Request pertaining to the BILLING CODE 6325–38–P • Attachment B—a redacted copy of proposed Priority Mail Express & the contract; Priority Mail Contract 15 product and • Attachment C—proposed changes the related contract, respectively. POSTAL REGULATORY COMMISSION to the Mail Classification Schedule Interested persons may submit [Docket No. MC2014–3 and CP2014–3; competitive product list with the comments on whether the Postal Order No. 1860] addition underlined; Service’s filings in the captioned • Attachment D—a Statement of dockets are consistent with the policies New Postal Product Supporting Justification as required by of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 39 CFR 3020.32; 3015.5, and 39 CFR part 3020, subpart AGENCY: Postal Regulatory Commission. • Attachment E—a certification of B. Comments are due no later than ACTION: Notice. compliance with 39 U.S.C. 3633(a); and October 31, 2013. The public portions of • Attachment F—an application for SUMMARY: The Commission is noticing a these filings can be accessed via the non-public treatment of materials to Commission’s Web site (http:// recent Postal Service filing concerning maintain redacted portions of the the addition of Priority Mail Express & www.prc.gov). contract and related financial The Commission appoints Curtis E. Priority Mail Contract 15 to the information under seal. competitive product list. This notice Kidd to serve as Public Representative In the Statement of Supporting in these dockets. informs the public of the filing, invites Justification, Brian Code, Manager, public comment, and takes other III. Ordering Paragraphs administrative steps. 1 Request of the United States Postal Service to It is ordered: DATES: Comments are due: October 31, Add Priority Mail Express & Priority Mail Contract 1. The Commission establishes Docket 2013. 15 to Competitive Product List and Notice of Filing Nos. MC2014–3 and CP2014–3 to (Under Seal) of Unredacted Governors’ Decision, ADDRESSES: Submit comments Contract, and Supporting Data, October 23, 2013 consider the matters raised in each electronically via the Commission’s (Request). docket.

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2. Pursuant to 39 U.S.C. 505, Curtis E. successor agreement to the contract extensions of the agreement if the Kidd is appointed to serve as an officer approved in Docket Nos. MC2011–6 and preparation of a successor agreement is of the Commission (Public CP2011–33.2 Request at 1. The Postal active and the Commission is notified.3 Representative) to represent the Service asserts that Parcel Return The Postal Service represents that the interests of the general public in these Service Contract 5 is a competitive contract is consistent with 39 U.S.C. proceedings. product ‘‘not of general applicability’’ 3633(a).4 3. Comments by interested persons in within the meaning of 39 U.S.C. The Postal Service filed much of the these proceedings are due no later than 3632(b)(3). Id. The Request has been supporting materials, including the October 31, 2013. assigned Docket No. MC2014–4. related contract, under seal. Id. 4. The Secretary shall arrange for The Postal Service Attachment F. It maintains that the publication of this order in the Federal contemporaneously filed a redacted redacted portions of the Governors’ Register. contract related to the proposed new Decision, contract, customer-identifying information, and related financial By the Commission. product. Id. Attachment B. The instant contract has been assigned Docket No. information should remain confidential. Shoshana M. Grove, CP2014–4. Id. at 3. This information includes the Secretary. Request. To support its Request, the price structure, underlying costs and [FR Doc. 2013–25667 Filed 10–29–13; 8:45 am] Postal Service filed six attachments as assumptions, pricing formulas, BILLING CODE 7710–FW–P follows: information relevant to the customer’s • Attachment A—a redacted copy of mailing profile, and cost coverage Governors’ Decision No. 11–6, projections. Id. The Postal Service asks POSTAL REGULATORY COMMISSION authorizing the new product; the Commission to protect customer- • [Docket Nos. MC2014–4 and CP2014–4; Attachment B—a redacted copy of identifying information from public Order No. 1861] the contract; disclosure indefinitely. Id. at 7. • Attachment C—proposed changes II. Notice of Filings New Postal Product to the Mail Classification Schedule competitive product list with the The Commission establishes Docket AGENCY: Postal Regulatory Commission. addition underlined; Nos. MC2014–4 and CP2014–4 to ACTION: Notice. • Attachment D—a Statement of consider the Request pertaining to the Supporting Justification as required by proposed Parcel Return Service Contract SUMMARY: The Commission is noticing 39 CFR 3020.32; 5 product and the related contract, recent Postal Service filings requesting • Attachment E—a certification of respectively. the addition of Parcel Return Service compliance with 39 U.S.C. 3633(a); and Interested persons may submit Contract 5 to the competitive product • Attachment F—an application for comments on whether the Postal list. This notice informs the public of non-public treatment of materials to Service’s filings in the captioned the filings, invites public comment, and maintain redacted portions of the dockets are consistent with the policies takes other administrative steps. contract and related financial of 39 U.S.C. 3632, 3633, or 3642, 39 CFR DATES: Comments are due: October 31, information under seal. 3015.5, and 39 CFR Part 3020, subpart 2013. In the Statement of Supporting B. Comments are due no later than ADDRESSES: Submit comments Justification, Dennis R. Nicoski, October 31, 2013. The public portions of electronically via the Commission’s Manager, Field Sales Strategy and these filings can be accessed via the Filing Online system at http:// Contracts, asserts that the contract will Commission’s Web site (http:// www.prc.gov. Those who cannot submit cover its attributable costs and increase www.prc.gov). The Commission appoints Lyudmila comments electronically should contact contribution toward the requisite 5.5 Y. Bzhilyanskaya to serve as Public the person identified in the FOR FURTHER percent of the Postal Service’s total Representative in these dockets. INFORMATION CONTACT section by institutional costs. Id. Attachment D at telephone for advice on filing 1. Mr. Nicoski contends that there will III. Ordering Paragraphs alternatives. be no issue of market dominant It is ordered: products subsidizing competitive FOR FURTHER INFORMATION CONTACT: 1. The Commission establishes Docket products as a result of this contract. Id. Nos. MC2014–4 and CP2014–4 to Stephen L. Sharfman, General Counsel, Related contract. The Postal Service at 202–789–6820. consider the matters raised in each included a redacted version of the docket. SUPPLEMENTARY INFORMATION: related contract with the Request. Id. 2. Pursuant to 39 U.S.C. 505, Table of Contents Attachment B. The contract is Lyudmila Y. Bzhilyanskaya is appointed scheduled to become effective one I. Introduction business day after the Commission 3 II. Notice of Filings Id. Previously, the Postal Service clarified that issues all necessary regulatory approval. identical language in Priority Mail Contract 60 III. Ordering Paragraphs Id. at 8. The contract will expire three ‘‘contemplates the Postal Service filing any notices of extension with the Commission at least one week I. Introduction years from the effective date unless, prior to the 3-year expiration date or the extended In accordance with 39 U.S.C. 3642 among other things, early termination is expiration date.’’ See Docket Nos. MC2013–54 and CP2013–70, Order No. 1773, Order Adding Priority and 39 CFR 3020.30 et seq., the Postal mutually agreed upon in writing. Id. The contract also allows two 90-day Mail Contract 60 to the Competitive Product List, Service filed a request and associated July 8, 2013, at 3; see also Docket Nos. MC2013– supporting information to add Parcel 54 and CP2013–70, Response of the United States Contract, and Supporting Data, October 23, 2013 Postal Service to Chairman’s Information Request Return Service Contract 5 to the (Request). 1 No. 1, July 1, 2013, question 2. competitive product list. It is the 2 See Docket Nos. MC2011–6 and CP2011–33, 4 Although the Request appears to state that the Order No. 602, Order Approving Parcel Return certification only pertains to paragraphs (1) and (3) 1 Request of the United States Postal Service to Service Contract 2 Negotiated Service Agreement, of 39 U.S.C. 3633(a), the certification itself contains Add Parcel Return Service Contract 5 to December 2, 2010; see also Docket Nos. MC2011– an assertion that the prices are in compliance with Competitive Product List and Notice of Filing 6 and CP2011–33, Order No. 1857, Order Granting 39 U.S.C. 3633(a)(1), (2), and (3). See Request at 2; (Under Seal) of Unredacted Governors’ Decision, Temporary Relief, October 23, 2013. Attachment E.

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to serve as an officer of the Commission 77.2 Request at 1. The Postal Service represents that the contract is consistent (Public Representative) to represent the asserts that Priority Mail Contract 66 is with 39 U.S.C. 3633(a).3 interests of the general public in these a competitive product ‘‘not of general The Postal Service filed much of the proceedings. applicability’’ within the meaning of 39 supporting materials, including the 3. Comments by interested persons in U.S.C. 3632(b)(3). Id. The Request has related contract, under seal. Id. these proceedings are due no later than been assigned Docket No. MC2014–2. Attachment F. It maintains that the October 31, 2013. The Postal Service redacted portions of the Governors’ 4. The Secretary shall arrange for contemporaneously filed a redacted Decision, contract, customer-identifying publication of this order in the Federal contract related to the proposed new information, and related financial Register. product. Id. Attachment B. The instant information should remain confidential. By the Commission. contract has been assigned Docket No. Id. at 3. This information includes the Shoshana M. Grove, CP2014–2. price structure, underlying costs and Secretary. Request. To support its Request, the assumptions, pricing formulas, Postal Service filed six attachments as [FR Doc. 2013–25666 Filed 10–29–13; 8:45 am] information relevant to the customer’s follows: mailing profile, and cost coverage BILLING CODE 7710–FW–P • Attachment A—a redacted copy of projections. Id. The Postal Service asks Governors’ Decision No. 11–6, the Commission to protect customer- authorizing the new product; POSTAL REGULATORY COMMISSION • identifying information from public Attachment B—a redacted copy of disclosure indefinitely. Id. at 7. [Docket Nos. MC2014–2 and CP2014–2; the contract; Order No. 1859] • Attachment C—proposed changes II. Notice of Filings to the Mail Classification Schedule The Commission establishes Docket New Postal Product competitive product list with the Nos. MC2014–2 and CP2014–2 to addition underlined; AGENCY: Postal Regulatory Commission. consider the Request pertaining to the • Attachment D—a Statement of ACTION: Notice. proposed Priority Mail Contract 66 Supporting Justification as required by product and the related contract, SUMMARY: The Commission is noticing 39 CFR 3020.32; respectively. recent Postal Service filings requesting • Attachment E—a certification of the addition of Priority Mail Contract 66 compliance with 39 U.S.C. 3633(a); and Interested persons may submit to the competitive product list. This • Attachment F—an application for comments on whether the Postal notice informs the public of the filings, non-public treatment of materials to Service’s filings in the captioned invites public comment, and takes other maintain redacted portions of the dockets are consistent with the policies administrative steps. contract and related financial of 39 U.S.C. 3632, 3633, or 3642, 39 CFR DATES: Comments are due: October 31, information under seal. 3015.5, and 39 CFR part 3020, subpart 2013. In the Statement of Supporting B. Comments are due no later than ADDRESSES: Submit comments Justification, Dennis R. Nicoski, October 31, 2013. The public portions of electronically via the Commission’s Manager, Field Sales Strategy and these filings can be accessed via the Filing Online system at http:// Contracts, asserts that the contract will Commission’s Web site (http:// www.prc.gov. Those who cannot submit cover its attributable costs and increase www.prc.gov). comments electronically should contact contribution toward the requisite 5.5 The Commission appoints Pamela A. the person identified in the FOR FURTHER percent of the Postal Service’s total Thompson to serve as Public INFORMATION CONTACT section by institutional costs. Id. Attachment D at Representative in these dockets. 1. Mr. Nicoski contends that there will telephone for advice on filing III. Ordering Paragraphs alternatives. be no issue of market dominant products subsidizing competitive FOR FURTHER INFORMATION CONTACT: It is ordered: products as a result of this contract. Id. Stephen L. Sharfman, General Counsel, 1. The Commission establishes Docket Related contract. The Postal Service at 202–789–6820. Nos. MC2014–2 and CP2014–2 to included a redacted version of the consider the matters raised in each SUPPLEMENTARY INFORMATION: related contract with the Request. Id. docket. Table of Contents Attachment B. The contract is scheduled to become effective one 2. Pursuant to 39 U.S.C. 505, Pamela I. Introduction business day after the Commission A. Thompson is appointed to serve as II. Notice of Filings an officer of the Commission (Public III. Ordering Paragraphs issues all necessary regulatory approval. Id. at 2. The contract will expire three Representative) to represent the I. Introduction years from the effective date unless, interests of the general public in these proceedings. In accordance with 39 U.S.C. 3642 among other things, either party and 39 CFR 3020.30 et seq., the Postal terminates the agreement upon 30 days’ 3. Comments by interested persons in Service filed a request and associated written notice to the other party. Id. The these proceedings are due no later than supporting information to add Priority contract also allows two 90-day October 31, 2013. Mail Contract 66 to the competitive extensions of the agreement if the 4. The Secretary shall arrange for product list.1 It is the successor preparation of a successor agreement is publication of this order in the Federal agreement to the contract approved in active and the Commission is notified Register. Docket Nos. MC2010–32 and CP2010– within 7 days of the contract’s expiration. Id. The Postal Service 3 Although the Request appears to state that the 1 Request of the United States Postal Service to certification only pertains to paragraphs (1) and (3) Add Priority Mail Contract 66 to Competitive 2 See Docket Nos. MC2010–32 and CP2010–77, of 39 U.S.C. 3633(a), the certification itself contains Product List and Notice of Filing (Under Seal) of Order No. 510, Order Approving Priority Mail an assertion that the prices are in compliance with Unredacted Governors’ Decision, Contract, and Contract 27 Negotiated Service Agreement, August 39 U.S.C. 3633(a)(1), (2), and (3). See Request at 2; Supporting Data, October 23, 2013 (Request). 6, 2010. Attachment E.

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By the Commission. applicants with a copy of the request, The Distributor is a registered broker- Shoshana M. Grove, personally or by mail. Hearing requests dealer (‘‘Broker’’) under the Securities Secretary. should be received by the Commission Exchange Act of 1934 (‘‘Exchange Act’’) [FR Doc. 2013–25665 Filed 10–29–13; 8:45 am] by 5:30 p.m. on November 18, 2013, and and will act as the distributor and BILLING CODE 7710–FW–P should be accompanied by proof of principal underwriter of the Funds. service on applicants, in the form of an 3. Applicants request that the order affidavit or, for lawyers, a certificate of apply to the Initial Fund and any future service. Hearing requests should state series of the Trust as well as other open- SECURITIES AND EXCHANGE the nature of the writer’s interest, the end management companies that may COMMISSION reason for the request, and the issues utilize active management investment [Investment Company Act Release No. contested. Persons who wish to be strategies (‘‘Future Funds’’). Any Future 30763; 812–14200] notified of a hearing may request Fund will (a) be advised by VTL or an notification by writing to the entity controlling, controlled by, or VTL Associates, LLC, et al.; Notice of Commission’s Secretary. under common control with VTL (VTL Application ADDRESSES: Elizabeth M. Murphy, and each such other entity and any Secretary, U.S. Securities and Exchange successor thereto included in the term October 24, 2013. ‘‘Advisor’’),1 and (b) comply with the AGENCY: Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549–1090. terms and conditions of the Commission (‘‘Commission’’). 2 Applicants: VTL and the Trust: Vincent application. The Initial Fund and ACTION: Notice of an application for an 3 T. Lowry, VTL Associates, LLC, One Future Funds together are the ‘‘Funds’’. order under section 6(c) of the Commerce Square, 2005 Market Street, Each Fund will consist of a portfolio of Investment Company Act of 1940 Suite 2020, Philadelphia, PA 19103; securities (including fixed income (‘‘Act’’) for an exemption from sections Distributor: Foreside Fund Services, securities and/or equity securities) and/ 2(a)(32), 5(a)(1), 22(d) and 22(e) of the LLC, Three Canal Plaza, Suite 100, or currencies traded in the U.S. and/or Act and rule 22c–1 under the Act, under Portland, ME 04101. non-U.S. markets, and derivatives, other sections 6(c) and 17(b) of the Act for an assets, and other investment positions exemption from sections 17(a)(1) and FOR FURTHER INFORMATION CONTACT: (‘‘Portfolio Instruments’’).4 Funds may (a)(2) of the Act, and under section Deepak T. Pai, Senior Counsel, at (202) invest in ‘‘Depositary Receipts’’.5 Each 12(d)(1)(J) of the Act for an exemption 551–6876 or Daniele Marchesani, Fund will operate as an actively from sections 12(d)(1)(A) and (B) of the Branch Chief, at (202) 551–6821 managed exchange-traded fund (‘‘ETF’’). Act. (Division of Investment Management, 4. Applicants also request that any Exemptive Applications Office). exemption under section 12(d)(1)(J) of APPLICANTS: VTL Associates, LLC SUPPLEMENTARY INFORMATION: The the Act from sections 12(d)(1)(A) and (‘‘VTL’’), RevenueShares ETF Trust (the following is a summary of the (B) apply to: (i) Any Fund that is ‘‘Trust’’), and Foreside Fund Services, application. The complete application currently or subsequently part of the LLC (the ‘‘Distributor’’). may be obtained via the Commission’s same ‘‘group of investment companies’’ SUMMARY OF APPLICATION: Applicants Web site by searching for the file as the Initial Fund within the meaning request an order that permits: (a) number, or for an applicant using the Actively-managed series of certain Company name box, at http:// 1 For the purposes of the requested order, a ‘‘successor’’ is limited to an entity that results from open-end management investment www.sec.gov/search/search.htm or by calling (202) 551–8090. a reorganization into another jurisdiction or a companies to issue shares (‘‘Shares’’) change in the type of business organization. redeemable in large aggregations only Applicants’ Representations 2 Any Advisor to a Future Fund will be registered (‘‘Creation Units’’); (b) secondary market as an investment adviser under the Advisers Act. 1. The Trust is registered as an open- All entities that currently intend to rely on the transactions in Shares to occur at end management investment company order are named as applicants. Any other entity that negotiated market prices; (c) certain under the Act and is a statutory trust relies on the order in the future will comply with series to pay redemption proceeds, the terms and conditions of the application. organized under the laws of Delaware. 3 under certain circumstances, more than Applicants further request that the order apply The Trust initially will offer one series, seven days from the tender of Shares for to any future distributor and principal underwriter the RevenueShares Active Navellier of the Funds (included in the term ‘‘Distributor’’), redemption; (d) certain affiliated Overall A–100 Fund (the ‘‘Initial which would be a registered broker-dealer under persons of the series to deposit the Exchange Act and would comply with the terms Fund’’), which applicants state will seek securities into, and receive securities and conditions of the Application. The Distributor long-term capital growth. The Initial of any Fund may be an affiliated person of the from, the series in connection with the Fund will seek to achieve its investment Advisor and/or Sub-Advisors. purchase and redemption of Creation 4 objective by investing primarily in If a Fund invests in derivatives, then (a) the Units; and (e) certain registered board of trustees (‘‘Board’’) of the Fund will equity securities listed on North management investment companies and periodically review and approve the Fund’s use of American exchanges. derivatives and how the Fund’s investment adviser unit investment trusts outside of the 2. VTL, a Pennsylvania limited assesses and manages risk with respect to the same group of investment companies as liability company, is registered as an Fund’s use of derivatives and (b) the Fund’s the series to acquire Shares. disclosure of its use of derivatives in its offering investment adviser under the documents and periodic reports will be consistent DATES: Filing Dates: The application was Investment Advisers Act of 1940 with relevant Commission and staff guidance. filed on August 12, 2013 and amended (‘‘Advisers Act’’) and will serve as 5 Depositary Receipts are typically issued by a on October 18, 2013. investment adviser to the Initial Fund. financial institution, a ‘‘depositary’’, and evidence ownership in a security or pool of securities that The Advisor (as defined below) may in have been deposited with the depositary. A Fund HEARING OR NOTIFICATION OF HEARING: An the future retain one or more sub- will not invest in any Depositary Receipts that the order granting the requested relief will advisors (each a ‘‘Sub-Advisor’’) to Advisor or any Sub-Advisor deems to be illiquid or be issued unless the Commission orders manage the portfolios of the Funds (as for which pricing information is not readily available. No affiliated persons of applicants, any a hearing. Interested persons may defined below). Any Sub-Advisor will Future Fund, any Advisor, or any Sub-Advisor will request a hearing by writing to the be registered, or not subject to serve as the depositary bank for any Depositary Commission’s Secretary and serving registration, under the Advisers Act. Receipts held by a Fund.

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of section 12(d)(1)(G)(ii) of the Act; (ii) Day 8 the names and quantities of the applicable, to be made entirely in cash; any principal underwriter for the Fund; instruments that constitute the Deposit (d) if, on a given Business Day, a Fund (iii) any Brokers selling Shares of a Instruments and the names and requires all Authorized Participants Fund to an Investing Fund (as defined quantities of the instruments that purchasing or redeeming Shares on that below); and (iv) each management constitute the Redemption Instruments day to deposit or receive (as applicable) investment company or unit investment will be identical, and these instruments cash in lieu of some or all of the Deposit trust registered under the Act that is not may be referred to, in the case of either Instruments or Redemption Instruments, part of the same ‘‘group of investment a purchase or redemption, as the respectively, solely because: (i) such companies’’ as the Funds within the ‘‘Creation Basket.’’ In addition, the instruments are not eligible for transfer meaning of section 12(d)(1)(G)(ii) of the Creation Basket will correspond pro rata through either the NSCC or DTC; or (ii) Act and that enters into a FOF to the positions in a Fund’s portfolio in the case of Funds holding non-U.S. Participation Agreement (as defined (including cash positions),9 except: (a) investment (‘‘Global Funds’’), such below) with a Fund (such management In the case of bonds, for minor instruments are not eligible for trading investment companies, ‘‘Investing differences when it is impossible to due to local trading restrictions, local Management Companies,’’ such unit break up bonds beyond certain restrictions on securities transfers or investment trusts, ‘‘Investing Trusts,’’ minimum sizes needed for transfer and other similar circumstances; or (e) if a and Investing Management Companies settlement; (b) for minor differences Fund permits an Authorized Participant and Investing Trusts together, when rounding is necessary to eliminate to deposit or receive (as applicable) cash ‘‘Investing Funds’’). Investing Funds do fractional shares or lots that are not in lieu of some or all of the Deposit not include the Funds.6 tradeable round lots; 10 or (c) TBA Instruments or Redemption Instruments, 5. Applicants anticipate that a Transactions,11 short positions and respectively, solely because: (i) such Creation Unit will consist of at least other positions that cannot be instruments are, in the case of the 50,000 Shares. Applicants anticipate transferred in kind 12 will be excluded purchase of a Creation Unit, not that the trading price of a Share will from the Creation Basket.13 If there is a available in sufficient quantity; (ii) such range from $10 to $100. All orders to difference between NAV attributable to instruments are not eligible for trading purchase Creation Units must be placed a Creation Unit and the aggregate market by an Authorized Participant or the with the Distributor by or through a value of the Creation Basket exchanged investor on whose behalf the party that has entered into a participant for the Creation Unit, the party Authorized Participant is acting; or (iii) agreement with the Distributor and the conveying instruments with the lower a holder of Shares of a Global Fund transfer agent of the Fund (‘‘Authorized value will also pay to the other an would be subject to unfavorable income Participant’’) with respect to the amount in cash equal to that difference tax treatment if the holder receives creation and redemption of Creation (the ‘‘Cash Amount’’). redemption proceeds in kind.14 Units. An Authorized Participant is 7. Purchases and redemptions of 8. Each Business Day, before the open either: (a) A Broker or other participant Creation Units may be made in whole or of trading on a national securities in the Continuous Net Settlement in part on a cash basis, rather than in exchange, as defined in section 2(a)(26) System of the National Securities kind, solely under the following of the Act (‘‘Stock Exchange’’), on which Clearing Corporation (‘‘NSCC’’), a circumstances: (a) To the extent there is Shares are listed, each Fund will cause clearing agency registered with the a Cash Amount, as described above; (b) to be published through the NSCC the Commission and affiliated with the if, on a given Business Day, a Fund names and quantities of the instruments Depository Trust Company (‘‘DTC’’), or announces before the open of trading comprising the Creation Basket, as well (b) a participant in the DTC (such that all purchases, all redemptions or all as the estimated Cash Amount (if any), participant, ‘‘DTC Participant’’). purchases and redemptions on that day for that day. The published Creation 6. In order to keep costs low and will be made entirely in cash; (c) if, Basket will apply until a new Creation permit each Fund to be as fully invested upon receiving a purchase or Basket is announced on the following as possible, Shares will be purchased redemption order from an Authorized Business Day, and there will be no intra- and redeemed in Creation Units and Participant, a Fund determines to day changes to the Creation Basket generally on an in-kind basis. Except require the purchase or redemption, as except to correct errors in the published where the purchase or redemption will Creation Basket. The Stock Exchange include cash under the limited restricted securities eligible for resale pursuant to will disseminate every 15 seconds Rule 144A under the Securities Act, the Funds will circumstances specified below, throughout the trading day an amount purchasers will be required to purchase comply with the conditions of Rule 144A. 8 Each Fund will sell and redeem Creation Units representing, on a per Share basis, the Creation Units by making an in-kind on any day the Fund is open, including as required sum of the current value of the Portfolio deposit of specified instruments by section 22(e) of the Act (each, a ‘‘Business Day’’). Instruments that were publicly (‘‘Deposit Instruments’’), and 9 The portfolio used for this purpose will be the disclosed prior to the commencement of same portfolio used to calculate the Fund’s net asset shareholders redeeming their Shares trading in Shares on the Stock will receive an in-kind transfer of value (‘‘NAV’’) for that Business Day. 10 A tradeable round lot for a security will be the Exchange. specified instruments (‘‘Redemption standard unit of trading in that particular type of 9. A Fund may recoup the settlement Instruments’’).7 On any given Business security in its primary market. costs charged by NSCC and DTC by 11 A TBA Transaction is a method of trading imposing a transaction fee on investors 6 An Investing Fund may rely on the order only mortgage-backed securities. In a TBA Transaction, purchasing or redeeming Creation Units to invest in Funds and not in any other registered the buyer and seller agree on general trade investment company. parameters such as agency, settlement date, par (the ‘‘Transaction Fee’’). The 7 The Funds must comply with the federal amount and price. Transaction Fee will be borne only by securities laws in accepting Deposit Instruments 12 This includes instruments that can be purchasers and redeemers of Creation and satisfying redemptions with Redemption transferred in kind only with the consent of the Units and will be limited to amounts Instruments, including that the Deposit Instruments original counterparty to the extent the Fund does and Redemption Instruments are sold in not intend to seek such consents. that have been determined appropriate transactions that would be exempt from registration 13 Because these instruments will be excluded under the Securities Act of 1933 (‘‘Securities Act’’). from the Creation Basket, their value will be 14 A ‘‘custom order’’ is any purchase or In accepting Deposit Instruments and satisfying reflected in the determination of the Cash Amount redemption of Shares made in whole or in part on redemptions with Redemption Instruments that are (defined below). a cash basis in reliance on clause (e)(i) or (e)(ii).

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by the Advisor to defray the transaction arbitrage opportunities created by the 2. Section 6(c) of the Act provides that expenses that will be incurred by a ability to continually purchase or the Commission may exempt any Fund when an investor purchases or redeem Creation Units at their NAV per person, security or transaction, or any redeems Creation Units.15 All orders to Share should ensure that the Shares will class of persons, securities or purchase Creation Units will be placed not trade at a material discount or transactions, from any provisions of the with the Distributor by or through an premium in relation to their NAV. Act, if and to the extent that such Authorized Participant and the 12. Shares will not be individually exemption is necessary or appropriate Distributor will transmit all purchase redeemable and owners of Shares may in the public interest and consistent orders to the relevant Fund. The acquire those Shares from a Fund, or with the protection of investors and the Distributor will be responsible for tender such shares for redemption to the purposes fairly intended by the policy delivering a prospectus (‘‘Prospectus’’) Fund, in Creation Units only. To and provisions of the Act. Section 17(b) to those persons purchasing Creation redeem, an investor must accumulate of the Act authorizes the Commission to Units and for maintaining records of enough Shares to constitute a Creation exempt a proposed transaction from both the orders placed with it and the Unit. Redemption requests must be section 17(a) of the Act if evidence confirmations of acceptance furnished placed by or through an Authorized establishes that the terms of the by it. Participant. transaction, including the consideration 10. Shares will be listed and traded at 13. Neither the Trust nor any Fund to be paid or received, are reasonable will be marketed or otherwise held out negotiated prices on a Stock Exchange and fair and do not involve as a ‘‘mutual fund’’. Instead, each Fund and traded in the secondary market. overreaching on the part of any person will be marketed as an ‘‘actively- Applicants expect that Stock Exchange concerned, and the proposed managed exchange-traded fund’’. In any specialists or market makers (‘‘Market transaction is consistent with the advertising material where features of Makers’’) will be assigned to Shares. policies of the registered investment obtaining, buying or selling Shares The price of Shares trading on the Stock company and the general provisions of traded on the Stock Exchange are Exchange will be based on a current the Act. Section 12(d)(1)(J) of the Act described there will be an appropriate bid/offer in the secondary market. provides that the Commission may statement to the effect that Shares are Transactions involving the purchases exempt any person, security, or not individually redeemable. and sales of Shares on the Stock transaction, or any class or classes of 14. The Funds’ Web site, which will persons, securities or transactions, from Exchange will be subject to customary be publicly available prior to the public brokerage commissions and charges. any provision of section 12(d)(1) if the offering of Shares, will include a exemption is consistent with the public 11. Applicants expect that purchasers Prospectus and additional quantitative interest and the protection of investors. of Creation Units will include information updated on a daily basis, institutional investors and arbitrageurs. including, on a per Share basis for each Sections 5(a)(1) and 2(a)(32) of the Act Market Makers, acting in their unique Fund, the prior Business Day’s NAV and 3. Section 5(a)(1) of the Act defines an role to provide a fair and orderly the market closing price or mid-point of ‘‘open-end company’’ as a management secondary market for Shares, also may the bid/ask spread at the time of the investment company that is offering for purchase Creation Units for use in their calculation of such NAV (‘‘Bid/Ask sale or has outstanding any redeemable own market making activities.16 Price’’), and a calculation of the security of which it is the issuer. Applicants expect that secondary premium or discount of the market Section 2(a)(32) of the Act defines a market purchasers of Shares will closing price or Bid/Ask Price against redeemable security as any security, include both institutional and retail such NAV. On each Business Day, other than short-term paper, under the investors.17 Applicants expect that before commencement of trading in terms of which the holder, upon its Shares on the Stock Exchange, the Fund presentation to the issuer, is entitled to 15 Where a Fund permits an in-kind purchaser to will disclose on its Web site the receive approximately a proportionate deposit cash in lieu of depositing one or more identities and quantities of the Portfolio Deposit Instruments, the purchaser may be assessed share of the issuer’s current net assets, a higher Transaction Fee to offset the cost to the Instruments held by the Fund that will or the cash equivalent. Because Shares Fund of buying those particular Deposit form the basis for the Fund’s calculation will not be individually redeemable, Instruments. In all cases, the Transaction Fee will of NAV at the end of the Business Day.18 applicants request an order that would be limited in accordance with the requirements of permit each Fund to redeem Shares in the Commission applicable to open-end Applicants’ Legal Analysis management investment companies offering Creation Units only. Applicants state redeemable securities. 1. Applicants request an order under that investors may purchase Shares in 16 If Shares are listed on The NASDAQ Stock section 6(c) of the Act for an exemption Creation Units from each Fund and Market LLC (‘‘Nasdaq’’) or a similar electronic Stock from sections 2(a)(32), 5(a)(1), 22(d) and redeem Creation Units from each Fund. Exchange (including NYSE Arca), one or more 22(e) of the Act and rule 22c–1 under Applicants further state that because the member firms of that Stock Exchange will act as the Act, under sections 6(c) and 17(b) of Market Maker and maintain a market for Shares market price of Creation Units will be trading on that Stock Exchange. On Nasdaq, no the Act for an exemption from sections disciplined by arbitrage opportunities, particular Market Maker would be contractually 17(a)(1) and 17(a)(2) of the Act, and investors should be able to sell Shares obligated to make a market in Shares. However, the under section 12(d)(1)(J) of the Act for in the secondary market at prices that listing requirements on Nasdaq, for example, an exemption from sections 12(d)(1)(A) stipulate that at least two Market Makers must be do not vary materially from their NAV. registered in Shares to maintain a listing. In and (B) of the Act. addition, on Nasdaq and NYSE Arca, registered Section 22(d) of the Act and Rule 22c– Market Makers are required to make a continuous Beneficial ownership of Shares will be shown on 1 Under the Act two-sided market or subject themselves to the records of DTC or DTC Participants. 4. Section 22(d) of the Act, among regulatory sanctions. No Market Maker will be an 18 Applicants note that under accounting affiliated person or an affiliated person of an procedures followed by the Funds, trades made on other things, prohibits a dealer from affiliated person, of the Funds, except within the the prior Business Day will be booked and reflected selling a redeemable security that is meaning of section 2(a)(3)(A) or (C) of the Act due in NAV on the current Business Day. Accordingly, currently being offered to the public by solely to ownership of Shares as discussed below. each Fund will be able to disclose at the beginning or through a principal underwriter, 17 Shares will be registered in book-entry form of the Business Day the portfolio that will form the only. DTC or its nominee will be the record or basis for its NAV calculation at the end of such except at a current public offering price registered owner of all outstanding Shares. Business Day. described in the prospectus. Rule 22c–

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1 under the Act generally requires that observe that settlement of redemptions investment companies, more than 10% a dealer selling, redeeming, or of Creation Units of Global Funds is of the total assets of the acquiring repurchasing a redeemable security do contingent not only on the settlement company. Section 12(d)(1)(B) of the Act so only at a price based on its NAV. cycle of the U.S. securities markets but prohibits a registered open-end Applicants state that secondary market also on the delivery cycles present in investment company, its principal trading in Shares will take place at foreign markets in which those Funds underwriter, or any other broker or negotiated prices, not at a current invest. Applicants have been advised dealer from selling its shares to another offering price described in the that, under certain circumstances, the investment company if the sale will Prospectus, and not at a price based on delivery cycles for transferring Portfolio cause the acquiring company to own NAV. Thus, purchases and sales of Instruments to redeeming investors, more than 3% of the acquired Shares in the secondary market will not coupled with local market holiday company’s voting stock, or if the sale comply with section 22(d) of the Act schedules, will require a delivery will cause more than 10% of the and rule 22c–1 under the Act. process of up to 14 calendar days. acquired company’s voting stock to be Applicants request an exemption under Applicants therefore request relief from owned by investment companies section 6(c) from these provisions. section 22(e) in order to provide generally. 5. Applicants assert that the concerns payment or satisfaction of redemptions 10. Applicants request relief to permit sought to be addressed by section 22(d) within the maximum number of Investing Funds to acquire Shares in of the Act and rule 22c–1 under the Act calendar days required for such excess of the limits in section with respect to pricing are equally payment or satisfaction in the principal 12(d)(1)(A) of the Act and to permit the satisfied by the proposed method of local markets where transactions in the Funds, their principal underwriters and pricing Shares. Applicants maintain that Portfolio Instruments of each Global any Broker to sell Shares to Investing while there is little legislative history Fund customarily clear and settle, but in Funds in excess of the limits in section regarding section 22(d), its provisions, all cases no later than 14 calendar days 12(d)(l)(B) of the Act. Applicants submit as well as those of rule 22c–1, appear to following the tender of a Creation that the proposed conditions to the have been designed to (a) Prevent Unit.19 requested relief address the concerns dilution caused by certain riskless- 8. Applicants state that section 22(e) underlying the limits in section 12(d)(1), trading schemes by principal was designed to prevent unreasonable, which include concerns about undue underwriters and contract dealers, (b) undisclosed and unforeseen delays in influence, excessive layering of fees and prevent unjust discrimination or the actual payment of redemption overly complex structures. preferential treatment among buyers proceeds. Applicants assert that the 11. Applicants submit that their resulting from sales at different prices, requested relief will not lead to the proposed conditions address any and (c) assure an orderly distribution problems that section 22(e) was concerns regarding the potential for system of investment company shares designed to prevent. Applicants state undue influence. To limit the control by eliminating price competition from that allowing redemption payments for that an Investing Fund may have over a brokers offering shares at less than the Creation Units of a Fund to be made Fund, applicants propose a condition published sales price and repurchasing within a maximum of 14 calendar days prohibiting the adviser of an Investing shares at more than the published would not be inconsistent with the Management Company (‘‘Investing Fund redemption price. spirit and intent of section 22(e). Advisor’’), sponsor of an Investing Trust 6. Applicants believe that none of Applicants state each Global Fund’s (‘‘Sponsor’’), any person controlling, these purposes will be thwarted by statement of additional information controlled by, or under common control permitting Shares to trade in the (‘‘SAI’’) will disclose those local with the Investing Fund Advisor or secondary market at negotiated prices. holidays (over the period of at least one Sponsor, and any investment company Applicants state that (a) secondary year following the date of the SAI), if or issuer that would be an investment market trading in Shares does not any, that are expected to prevent the company but for sections 3(c)(1) or involve the Funds as parties and cannot delivery of redemption proceeds in 3(c)(7) of the Act that is advised or result in dilution of an investment in seven calendar days and the maximum sponsored by the Investing Fund Shares, and (b) to the extent different number of days needed to deliver the Advisor, the Sponsor, or any person prices exist during a given trading day, proceeds for each affected Global Fund. controlling, controlled by, or under or from day to day, such variances occur Applicants are not seeking relief from common control with the Investing as a result of third-party market forces, section 22(e) with respect to Global Fund Advisor or Sponsor (‘‘Investing such as supply and demand. Therefore, Funds that do not effect redemptions in- Fund’s Advisory Group’’) from applicants assert that secondary market kind. controlling (individually or in the transactions in Shares will not lead to aggregate) a Fund within the meaning of Section 12(d)(1) of the Act discrimination or preferential treatment section 2(a)(9) of the Act. The same among purchasers. Finally, applicants 9. Section 12(d)(1)(A) of the Act prohibition would apply to any sub- contend that the proposed distribution prohibits a registered investment adviser to an Investing Management system will be orderly because arbitrage company from acquiring shares of an Company (‘‘Investing Fund Sub- activity should ensure that the investment company if the securities Advisor’’), any person controlling, difference between the market price of represent more than 3% of the total controlled by or under common control Shares and their NAV remains narrow. outstanding voting stock of the acquired with the Investing Fund Sub-Advisor, company, more than 5% of the total and any investment company or issuer Section 22(e) of the Act assets of the acquiring company, or, that would be an investment company 7. Section 22(e) of the Act generally together with the securities of any other but for sections 3(c)(1) or 3(c)(7) of the prohibits a registered investment Act (or portion of such investment company from suspending the right of 19 Applicants acknowledge that no relief obtained company or issuer) advised or redemption or postponing the date of from the requirements of section 22(e) will affect sponsored by the Investing Fund Sub- any obligations that it may otherwise have under payment of redemption proceeds for rule 15c6–1 under the Exchange Act. Rule 15c6–1 Advisor or any person controlling, more than seven days after the tender of requires that most securities transactions be settled controlled by or under common control a security for redemption. Applicants within three business days of the trade date. with the Investing Fund Sub-Advisor

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(‘‘Investing Fund’s Sub-Advisory relying on section 3(c)(1) or 3(c)(7) of Affiliated Funds.22 Applicants also Group’’). the Act in excess of the limits contained request an exemption in order to permit 12. Applicants propose a condition to in section 12(d)(1)(A) of the Act, except a Fund to sell its Shares to and redeem ensure that no Investing Fund or to the extent permitted by exemptive its Shares from, and engage in the in- Investing Fund Affiliate 20 (except to the relief from the Commission permitting kind transactions that would extent it is acting in its capacity as an the Fund to purchase shares of other accompany such sales and redemptions investment adviser to a Fund) will cause investment companies for short-term with, certain Investing Funds of which a Fund to purchase a security in an cash management purposes. the Funds are affiliated persons or offering of securities during the second-tier affiliates.23 existence of an underwriting or selling 15. To ensure that an Investing Fund 18. Applicants assert that no useful syndicate of which a principal is aware of the terms and conditions of purpose would be served by prohibiting underwriter is an Underwriting Affiliate the requested order, the Investing Funds such affiliated persons from making in- (‘‘Affiliated Underwriting’’). An must enter into an agreement with the kind purchases or in-kind redemptions ‘‘Underwriting Affiliate’’ is a principal respective Funds (‘‘FOF Participation of Shares of a Fund in Creation Units. underwriter in any underwriting or Agreement’’). The FOF Participation Absent the unusual circumstances selling syndicate that is an officer, Agreement will include an discussed in the application, the director, member of an advisory board, acknowledgement from the Investing Deposit Instruments and Redemption Investing Fund Advisor, Investing Fund Fund that it may rely on the order only Instruments available for a Fund will be Sub-Advisor, employee or Sponsor of to invest in a Fund and not in any other the same for all purchasers and the Investing Fund, or a person of which investment company. redeemers, respectively, and will any such officer, director, member of an correspond pro rata to the Fund’s Sections 17(a)(1) and (2) of the Act advisory board, Investing Fund Advisor, Portfolio Instruments. The deposit Investing Fund Sub-Advisor, employee 16. Section 17(a) of the Act generally procedures for in-kind purchases of or Sponsor is an affiliated person prohibits an affiliated person of a Creation Units and the redemption (except any person whose relationship registered investment company, or an procedures for in-kind redemptions will to the Fund is covered by section 10(f) affiliated person of such a person be the same for all purchases and of the Act is not an Underwriting (‘‘second tier affiliate’’), from selling any redemptions. Deposit Instruments and Affiliate). security to or purchasing any security Redemption Instruments will be valued 13. Applicants propose several from the company. Section 2(a)(3) of the in the same manner as those Portfolio conditions to address the potential for Instruments currently held by the Act defines ‘‘affiliated person’’ to layering of fees. Applicants note that the relevant Funds, and the valuation of the include any person directly or indirectly board of directors or trustees of any Deposit Instruments and Redemption owning, controlling, or holding with Investing Management Company, Instruments will be made in the same power to vote, 5% or more of the including a majority of the directors or manner and on the same terms for all, outstanding voting securities of the trustees who are not ‘‘interested regardless of the identity of the persons’’ within the meaning of section other person and any person directly or purchaser or redeemer. Applicants do 2(a)(19) of the Act (‘‘disinterested indirectly controlling, controlled by, or not believe that in-kind purchases and directors or trustees’’), will be required under common control with, the other redemptions will result in abusive self- to find that the advisory fees charged person. Section 2(a)(9) of the Act dealing or overreaching of the Fund. under the contract are based on services defines ‘‘control’’ as the power to 19. Applicants also submit that the provided that will be in addition to, exercise a controlling influence over the sale of Shares to and redemption of rather than duplicative of, services management or policies of a company Shares from an Investing Fund meets provided under the advisory contract of and provides that a control relationship the standards for relief under sections any Fund in which the Investing will be presumed where one person 17(b) and 6(c) of the Act. Applicants Management Company may invest. owns more than 25% of another note that any consideration paid for the Applicants also state that any sales person’s voting securities. Each Fund purchase or redemption of Shares charges and/or service fees charged with may be deemed to be controlled by an directly from a Fund will be based on respect to shares of an Investing Fund Advisor and hence affiliated persons of the NAV of the Fund in accordance with will not exceed the limits applicable to each other. In addition, the Funds may policies and procedures set forth in the a fund of funds as set forth in NASD be deemed to be under common control Fund’s registration statement.24 The Conduct Rule 2830.21 with any other registered investment 14. Applicants submit that the company (or series thereof) advised by 22 Applicants are not seeking relief from section 17(a) for, and the requested relief will not apply to, proposed arrangement will not create an an Advisor (an ‘‘Affiliated Fund’’). transactions where a Fund could be deemed an overly complex fund structure. 17. Applicants request an exemption affiliated person, or an affiliated person of an Applicants note that a Fund will be under sections 6(c) and 17(b) of the Act affiliated person, of an Investing Fund because an prohibited from acquiring securities of investment adviser to the Funds is also an from sections 17(a)(1) and 17(a)(2) of the investment adviser to an Investing Fund. any investment company or company Act to permit in-kind purchases and 23 To the extent that purchases and sales of Shares redemptions of Creation Units by occur in the secondary market and not through 20 An ‘‘Investing Fund Affiliate’’ is any Investing persons that are affiliated persons or principal transactions directly between an Investing Fund Advisor, Investing Fund Sub-Advisor, Fund and a Fund, relief from section 17(a) would Sponsor, promoter and principal underwriter of an second tier affiliates of the Funds solely not be necessary. The requested relief is intended Investing Fund, and any person controlling, by virtue of one or more of the to cover, however, transactions directly between an controlled by or under common control with any following: (a) Holding 5% or more, or in Investing Fund and a Fund. of these entities. ‘‘Fund Affiliate’’ is an investment excess of 25% of the outstanding Shares 24 Applicants acknowledge that the receipt of adviser, promoter, or principal underwriter of a compensation by (a) an affiliated person of an Fund or any person controlling, controlled by or of one or more Funds; (b) having an Investing Fund, or an affiliated person of such under common control with any of these entities. affiliation with a person with an person, for the purchase by the Investing Fund of 21 Any reference to NASD Conduct Rule 2830 ownership interest described in (a); or Shares of the Fund or (b) an affiliated person of a includes any successor or replacement rule that (c) holding 5% or more, or more than Fund, or an affiliated person of such person, for the may be adopted by the Financial Industry sale by the Fund of its Shares to an Investing Fund, Regulatory Authority. 25% of the Shares of one or more Continued

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FOF Participation Agreement will date of any Commission rule under the Fund; (ii) is within the range of require any Investing Fund that Act that provides relief permitting the consideration that the Fund would be purchases Creation Units directly from operation of actively-managed required to pay to another unaffiliated a Fund to represent that the purchase of exchange-traded funds. entity in connection with the same Creation Units from a Fund by an services or transactions; and (iii) does B. Section 12(d)(1) Relief Investing Fund will be accomplished in not involve overreaching on the part of compliance with the investment 1. The members of the Investing any person concerned. This condition restrictions of the Investing Fund and Fund’s Advisory Group will not control does not apply with respect to any will be consistent with the investment (individually or in the aggregate) a Fund services or transactions between a Fund policies set forth in the Investing Fund’s within the meaning of section 2(a)(9) of and its investment adviser(s), or any registration statement. Applicants also the Act. The members of the Investing person controlling, controlled by or state that the proposed transactions are Fund’s Sub-Advisory Group will not under common control with such consistent with the general purposes of control (individually or in the aggregate) investment adviser(s). the Act and appropriate in the public a Fund within the meaning of section 5. The Investing Fund Advisor, or interest. 2(a)(9) of the Act. If, as a result of a Trustee or Sponsor, as applicable, will decrease in the outstanding voting waive fees otherwise payable to it by the Applicants’ Conditions securities of a Fund, the Investing Investing Fund in an amount at least Applicants agree that any order of the Fund’s Advisory Group or the Investing equal to any compensation (including Commission granting the requested Fund’s Sub-Advisory Group, each in the fees received pursuant to any plan relief will be subject to the following aggregate, becomes a holder of more adopted by a Fund under rule 12b–1 conditions: than 25 percent of the outstanding under the Act) received from a Fund by voting securities of a Fund, it will vote A. ETF Relief the Investing Fund Advisor, or Trustee its Shares of the Fund in the same or Sponsor, or an affiliated person of the 1. As long as a Fund operates in proportion as the vote of all other Investing Fund Advisor, or Trustee or reliance on the requested order, the holders of the Fund’s Shares. This Sponsor, other than any advisory fees Shares of the Fund will be listed on a condition does not apply to the paid to the Investing Fund Advisor, or Stock Exchange. Investing Fund’s Sub-Advisory Group Trustee, or Sponsor, or its affiliated 2. Neither the Trust nor any Fund will with respect to a Fund for which the person by the Fund, in connection with be advertised or marketed as an open- Investing Fund Sub-Advisor or a person the investment by the Investing Fund in end investment company or a mutual controlling, controlled by or under the Fund. Any Investing Fund Sub- fund. Any advertising material that common control with the Investing Advisor will waive fees otherwise describes the purchase or sale of Fund Sub-Advisor acts as the payable to the Investing Fund Sub- Creation Units or refers to redeemability investment adviser within the meaning Advisor, directly or indirectly, by the will prominently disclose that the of section 2(a)(20)(A) of the Act. Investing Management Company in an Shares are not individually redeemable 2. No Investing Fund or Investing amount at least equal to any and that owners of the Shares may Fund Affiliate will cause any existing or compensation received from a Fund by acquire those Shares from the Fund and potential investment by the Investing the Investing Fund Sub-Advisor, or an tender those Shares for redemption to Fund in a Fund to influence the terms affiliated person of the Investing Fund the Fund in Creation Units only. of any services or transactions between Sub-Advisor, other than any advisory 3. The Web site for the Funds, which the Investing Fund or an Investing Fund fees paid to the Investing Fund Sub- is and will be publicly accessible at no Affiliate and the Fund or a Fund Advisor or its affiliated person by the charge, will contain, on a per Share Affiliate. Fund, in connection with the basis, for each Fund the prior Business 3. The board of directors or trustees of investment by the Investing Day’s NAV and the market closing price an Investing Management Company, Management Company in the Fund or Bid/Ask Price, and a calculation of including a majority of the independent made at the direction of the Investing the premium or discount of the market directors or trustees, will adopt Fund Sub-Advisor. In the event that the closing price or Bid/Ask Price against procedures reasonably designed to Investing Fund Sub-Advisor waives such NAV. ensure that the Investing Fund Advisor fees, the benefit of the waiver will be 4. On each Business Day, before and any Investing Fund Sub-Advisor are passed through to the Investing commencement of trading in Shares on conducting the investment program of Management Company. the Stock Exchange, the Fund will the Investing Management Company 6. No Investing Fund or Investing disclose on its Web site the identities without taking into account any Fund Affiliate (except to the extent it is and quantities of the Portfolio consideration received by the Investing acting in its capacity as an investment Instruments held by the Fund that will Management Company or an Investing adviser to a Fund) will cause a Fund to form the basis for the Fund’s calculation Fund Affiliate from a Fund or a Fund purchase a security in an Affiliated of NAV at the end of the Business Day. Affiliate in connection with any services Underwriting. 5. The Advisor or any Sub-Advisor, or transactions. 7. The Board of a Fund, including a directly or indirectly, will not cause any 4. Once an investment by an Investing majority of the independent directors or Authorized Participant (or any investor Fund in the Shares of a Fund exceeds trustees, will adopt procedures on whose behalf an Authorized the limit in section 12(d)(1)(A)(i) of the reasonably designed to monitor any Participant may transact with the Fund) Act, the Board of a Fund, including a purchases of securities by the Fund in to acquire any Deposit Instrument for majority of the independent directors or an Affiliated Underwriting, once an the Fund through a transaction in which trustees, will determine that any investment by an Investing Fund in the the Fund could not engage directly. consideration paid by the Fund to the securities of the Fund exceeds the limit 6. The requested relief to permit ETF Investing Fund or an Investing Fund of section 12(d)(1)(A)(i) of the Act, operations will expire on the effective Affiliate in connection with any services including any purchases made directly or transactions: (i) Is fair and reasonable from an Underwriting Affiliate. The may be prohibited by section 17(e)(1) of the Act. The FOF Participation Agreement also will include in relation to the nature and quality of Board will review these purchases this acknowledgment. the services and benefits received by the periodically, but no less frequently than

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annually, to determine whether the Underwriting Affiliate. The Investing (‘‘Act’’),1 and Rule 19b–4 thereunder,2 purchases were influenced by the Fund will notify the Fund of any notice is hereby given that on October investment by the Investing Fund in the changes to the list as soon as reasonably 11, 2013, the Chicago Board Options Fund. The Board will consider, among practicable after a change occurs. The Exchange, Incorporated (‘‘Exchange’’ or other things: (i) Whether the purchases Fund and the Investing Fund will ‘‘CBOE’’) filed with the Securities and were consistent with the investment maintain and preserve a copy of the Exchange Commission (the objectives and policies of the Fund; (ii) order, the FOF Participation Agreement, ‘‘Commission’’) the proposed rule how the performance of securities and the list with any updated change as described in Items I and II purchased in an Affiliated Underwriting information for the duration of the below, which Items have been prepared compares to the performance of investment and for a period of not less by the Exchange. The Exchange has comparable securities purchased during than six years thereafter, the first two designated the proposal as a ‘‘non- a comparable period of time in years in an easily accessible place. controversial’’ proposed rule change underwritings other than Affiliated 10. Before approving any advisory pursuant to Section 19(b)(3)(A) of the Underwritings or to a benchmark such contract under section 15 of the Act, the Act 3 and Rule 19b–4(f)(6) thereunder.4 as a comparable market index; and (iii) board of directors or trustees of each The Commission is publishing this whether the amount of securities Investing Management Company, notice to solicit comments on the purchased by the Fund in Affiliated including a majority of the independent proposed rule change from interested Underwritings and the amount directors or trustees, will find that the persons. purchased directly from an advisory fees charged under such Underwriting Affiliate have changed contract are based on services provided I. Self-Regulatory Organization’s significantly from prior years. The that will be in addition to, rather than Statement of the Terms of Substance of Board will take any appropriate actions duplicative of, the services provided the Proposed Rule Change based on its review, including, if under the advisory contract(s) of any The Exchange proposes to extend the appropriate, the institution of Fund in which the Investing operation of its Flexible Exchange procedures designed to assure that Management Company may invest. Options (‘‘FLEX Options’’) pilot purchases of securities in Affiliated These findings and their basis will be program regarding permissible exercise Underwritings are in the best interest of recorded fully in the minute books of settlement values for FLEX Index shareholders of the Fund. the appropriate Investing Management Options.5 The text of the proposed rule 8. Each Fund will maintain and Company. change is available on the Exchange’s preserve permanently in an easily 11. Any sales charges and/or service Web site (http://www.cboe.com/ accessible place a written copy of the fees charged with respect to shares of an AboutCBOE/CBOELegalRegulatory procedures described in the preceding Investing Fund will not exceed the Home.aspx), at the Exchange’s Office of condition, and any modifications to limits applicable to a fund of funds as the Secretary and at the Commission. such procedures, and will maintain and set forth in NASD Conduct Rule 2830. preserve for a period of not less than six 12. No Fund relying on the section II. Self-Regulatory Organization’s years from the end of the fiscal year in 12(d)(1) relief will acquire securities of Statement of the Purpose of, and which any purchase in an Affiliated any investment company or company Statutory Basis for, the Proposed Rule Underwriting occurred, the first two relying on section 3(c)(1) or 3(c)(7) of Change years in an easily accessible place, a the Act in excess of the limits contained In its filing with the Commission, the written record of each purchase of in section 12(d)(1)(A) of the Act, except Exchange included statements securities in Affiliated Underwritings to the extent permitted by exemptive concerning the purpose of and basis for once an investment by an Investing relief from the Commission permitting the proposed rule change and discussed Fund in the securities of the Fund the Fund to purchase shares of other any comments it received on the exceeds the limit of section investment companies for short-term proposed rule change. The text of these cash management purposes. 12(d)(1)(A)(i) of the Act, setting forth statements may be examined at the from whom the securities were For the Commission, by the Division of places specified in Item IV below. The acquired, the identity of the Investment Management, under delegated Exchange has prepared summaries, set underwriting syndicate’s members, the authority. forth in sections A, B, and C below, of terms of the purchase, and the Kevin M. O’Neill, the most significant aspects of such information or materials upon which Deputy Secretary. statements. the Board’s determinations were made. [FR Doc. 2013–25648 Filed 10–29–13; 8:45 am] 9. Before investing in a Fund in BILLING CODE 8011–01–P 1 15 U.S.C. 78s(b)(1). excess of the limits in section 2 17 CFR 240.19b–4. 12(d)(1)(A), an Investing Fund will 3 15 U.S.C. 78s(b)(3)(A). execute a FOF Participation Agreement SECURITIES AND EXCHANGE 4 17 CFR 240.19b–4(f)(6). with the Fund stating that their COMMISSION 5 FLEX Options provide investors with the ability respective boards of directors or trustees to customize basic option features including size, and their investment advisers, or [Release No. 34–70752; File No. SR–CBOE– expiration date, exercise style, and certain exercise 2013–099] prices. FLEX Options can be FLEX Index Options Trustee and Sponsor, as applicable, or FLEX Equity Options. In addition, other products understand the terms and conditions of Self-Regulatory Organizations; are permitted to be traded pursuant to the FLEX the order, and agree to fulfill their Chicago Board Options Exchange, trading procedures. For example, credit options are responsibilities under the order. At the eligible for trading as FLEX Options pursuant to the Incorporated; Notice of Filing and FLEX rules in Chapters XXIVA and XXIVB. See time of its investment in Shares of a Immediate Effectiveness of Proposed CBOE Rules 24A.1(e) and (f), 24A.4(b)(1) and (c)(1), Fund in excess of the limit in section Rule Change Related to Extending the 24B.1(f) and (g), 24B.4(b)(1) and (c)(1), and 28.17. 12(d)(1)(A)(i), an Investing Fund will FLEX Exercise Settlement Values Pilot The rules governing the trading of FLEX Options on notify the Fund of the investment. At the FLEX Request for Quote (‘‘RFQ’’) System October 24, 2013. platform are contained in Chapter XXIVA. The rules such time, the Investing Fund will also governing the trading of FLEX Options on the FLEX transmit to the Fund a list of the names Pursuant to Section 19(b)(1) of the Hybrid Trading System platform are contained in of each Investing Fund Affiliate and Securities Exchange Act of 1934 Chapter XXIVB.

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A. Self-Regulatory Organization’s initiation of the exercise settlement Index Options series.10 The annual Statement of the Purpose of, and values pilot, only a.m. settlements were report also contained information and Statutory Basis for, the Proposed Rule permitted if a FLEX Index Option analysis of FLEX Index Options trading Change expires on, or within two business days patterns. The Exchange also provided of, a third Friday-of-the-month the Commission, on a periodic basis, 1. Purpose expiration (‘‘Expiration Friday’’).8 interim reports of volume and open On January 28, 2010, the Exchange Under the exercise settlement values interest. In providing the pilot reports to received approval of a rule change that, pilot, this restriction on p.m. and the Commission, the Exchange has among other things, established a pilot specified average price settlements in requested confidential treatment of the program regarding permissible exercise FLEX Index Options was eliminated.9 pilot reports under the Freedom of settlement values for FLEX Index The exercise settlement values pilot is Information Act (‘‘FOIA’’).11 The Options. The pilot program is currently currently set to expire on the earlier of confidentiality of the pilot reports is set to expire on the earlier of November November 2, 2013 or the date on which subject to the provisions of FOIA. 2, 2013 or the date on which the pilot the pilot program is approved on a The Exchange believes there is program is approved on a permanent permanent basis. sufficient investor interest and demand 6 basis. The purpose of this rule change CBOE is proposing to extend the pilot in the pilot program to warrant its filing is to extend the pilot program program through the earlier of extension. The Exchange believes that, through the earlier of November 3, 2014 November 3, 2014 or the date on which for the period that the pilot has been in or the date on which the pilot program the pilot program is approved on a operation, the program has provided is approved on a permanent basis. This permanent basis. CBOE believes the investors with additional means of filing simply seeks to extend the pilot program has been successful and managing their risk exposures and operation of the pilot program and does well received by its membership and the carrying out their investment objectives. not propose any substantive changes to investing public for the period that it Furthermore, the Exchange believes that the pilot program. it has not experienced any adverse Under Rules 24A.4, Terms of FLEX has been in operation as a pilot. In support of the proposed extension of the market effects with respect to the pilot Options, and 24B.4, Terms of FLEX program, including any adverse market Options, a FLEX Option may expire on pilot program, and as required by the pilot program’s Approval Order, the volatility effects that might occur as a any business day specified as to day, result of large FLEX exercises in FLEX month and year, not to exceed a Exchange has submitted to the Commission pilot program reports Option series that expire near Non- maximum term of fifteen years. In FLEX expirations and use a p.m. addition, the exercise settlement value regarding the pilot, which detail the Exchange’s experience with the settlement (as discussed below). for a FLEX Index Option can be In that regard, based on the specified as the index value determined program. Specifically, the Exchange provided the Commission an annual Exchange’s experience in trading FLEX by reference to the reported level of the Options to date and over the pilot index as derived from the opening or report analyzing volume and open interest for each broad-based FLEX period, CBOE continues to believe that closing prices of the component the restrictions on exercise settlement securities (‘‘a.m. settlement’’ or ‘‘p.m. Index Options class overlying an Expiration Friday, p.m.-settled FLEX values are no longer necessary to settlement,’’ respectively) or as a insulate Non-FLEX expirations from the specified average, provided that the potential adverse market impacts of average index value must conform to the (February 24, 1993), 58 FR 12280 (March 3, 12 1993)(SR–CBOE–92–17). The Exchange has FLEX expirations. To the contrary, averaging parameters established by the determined to limit the averaging parameters to 7 Exchange. However, prior to the three alternatives: the average of the opening and 10 The annual report also contained certain pilot closing index values on the expiration date; the period and pre-pilot period analyses of volume and 6 At the same time the permissible exercise average of intra-day high and low index values on open interest for Expiration Friday, a.m.-settled settlement values pilot was established for FLEX the expiration date; and the average of the opening, FLEX Index series and Expiration Friday Non-FLEX Index Options, the Exchange also established a pilot closing, and intra-day high and low index values on Index series overlying the same index as an program eliminating the minimum value size the expiration date. Any changes to the averaging Expiration Friday, p.m.-settled FLEX Index option. requirements for all FLEX Options. See Securities parameters established by the Exchange would be 11 5 U.S.C. 552. Exchange Act Release Nos. 61439 (January 28, announced to Trading Permit Holders via circular. 12 In further support, the Exchange also notes that 2010), 75 FR 5831 (February 4, 2010)(SR–CBOE– The Commission notes that its initial approval of the p.m. and specified average price settlements are 2009–087)(Approval Order); 61676 (March 9, 2010), specified average exercise settlement values for already permitted for FLEX Index Options on any 75 FR 13191 (March 18, 2010)(SR–CBOE–2010– FLEX Index Options that expire on, or within two other business day except on, or within two 026)(technical rule change to include original business days of, a third Friday-of-the-month business days of, Expiration Friday. The Exchange pilots’ conclusion date of March 28, 2011 in the expiration was based on the averaging parameters is not aware of any market disruptions or problems rule text); 64110 (March 24, 2011), 76 FR17463 being limited to these three alternatives. See caused by the use of these settlement methodologies (March 29, 2011)(SR–CBOE–2011–024)(extending Securities Exchange Act Release No. 61439 (January on these expiration dates (or on the expiration dates the pilots through March 30, 2012), 77 FR 20673 28, 2010), 75 FR 5831, 5832 n.17 (February 4, 2010). addressed under the pilot program). The Exchange (April 5, 2012)(SR–CBOE–2012–027)(extending the The Commission expects that, if the Exchange were is also not aware of any market disruptions or pilots through the earlier of November 2, 2012 or to seek to change these averaging parameters, it problems caused by the use of customized options the date on which the respective pilot program is would file a proposed rule change pursuant to in the OTC markets that expire on or near approved on a permanent basis). The pilot program Section 19(b) under the Act. See Securities Expiration Friday and have a p.m. or specified eliminating the minimum value size requirements Exchange Act Release No. 59417 (February 18, average exercise settlement value. In addition, the was approved on a permanent basis in a separate 2009), 74 FR 8591, 8593 n.21 (February 25, 2009). Exchange believes the reasons for limiting rule change filing. See Securities Exchange Act 8 For example, prior to the pilot, the exercise expirations to a.m. settlement, which is something Release No. 67624 (August 8, 2012), 77 FR 48580 settlement value of a FLEX Index Option that the SEC has imposed since the early 1990s for Non- (August 14, 2012)(SR–CBOE–2012–040). The expires on the Tuesday before Expiration Friday FLEX Options, revolved around a concern about permissible exercise settlement values pilot, could have an a.m., p.m. or specified average expiration pressure on the New York Stock however, has been extended. See Securities settlement. However, the exercise settlement value Exchange (‘‘NYSE’’) at the close that are no longer Exchange Act Release No. 68145 (November 2, of a FLEX Index Option that expires on the relevant in today’s market. Today, however, the 2012), 77 FR 67044 (November 8, 2012)(SR–CBOE– Wednesday before Expiration Friday could only Exchange believes stock exchanges are much better 2012–102)(extending the pilot through the earlier of have an a.m. settlement. able to handle volume. There are multiple primary November 2, 2013 or the date on which the pilot 9 No change was necessary or requested with listing and unlisted trading privilege (‘‘UTP’’) program is approved on a permanent basis). respect to FLEX Equity Options. Regardless of the markets, and trading is dispersed among several 7 See Rules 24A.4(b)(3) and 24B.4(b)(3); see also expiration date, FLEX Equity Options are settled by exchanges and alternative trading systems. In Securities Exchange Act Release No. 31920 physical delivery of the underlying. addition, the Exchange believes that surveillance

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CBOE believes that the restriction additional margin as deemed advisable. would not be impacted by the actually places the Exchange at a CBOE continues to believe these expiration of the pilot program.15 competitive disadvantage to its OTC existing safeguards serve sufficiently to 2. Statutory Basis counterparts in the market for help monitor open interest in FLEX customized options, and unnecessarily Option series and significantly reduce The Exchange believes the proposed limits market participants’ ability to any risk of adverse market effects that rule change is consistent with the Act trade in an exchange environment that might occur as a result of large FLEX and the rules and regulations offers the added benefits of exercises in FLEX Option series that thereunder applicable to the Exchange transparency, price discovery, liquidity, expire near Non-FLEX expirations and and, in particular, the requirements of 16 and financial stability. use a p.m. settlement. Section 6(b) of the Act. Specifically, the Exchange believes the proposed rule The Exchange also notes that certain CBOE is also cognizant of the OTC position limit, aggregation and exercise change is consistent with the Section market, in which similar restrictions on 6(b)(5) 17 requirements that the rules of limit requirements continue to apply to exercise settlement values do not apply. FLEX Index Options in accordance with an exchange be designed to prevent CBOE continues to believe that the pilot fraudulent and manipulative acts and Rules 24A.7, Position Limits and program is appropriate and reasonable Reporting Requirements, 24A.8, practices, to promote just and equitable and provides market participants with Exercise Limits, 24B.7, Position Limits principles of trade, to foster cooperation additional flexibility in determining and Reporting Requirements, and 24B.8, and coordination with persons engaged whether to execute their customized Exercise Limits. Additionally, all FLEX in regulating, clearing, settling, options in an exchange environment or Options remain subject to the position processing information with respect to, in the OTC market. CBOE continues to reporting requirements in paragraph (a) and facilitating transactions in believe that market participants benefit of CBOE Rule 4.13, Reports Related to securities, to remove impediments to from being able to trade these Position Limits.13 Moreover, the and perfect the mechanism of a free and customized options in an exchange Exchange and its Trading Permit Holder open market and a national market environment in several ways, including, organizations each have the authority, system, and, in general, to protect but not limited to, enhanced efficiency pursuant to CBOE Rule 12.10, Margin investors and the public interest. Required is Minimum, to impose in initiating and closing out positions, Additionally, the Exchange believes the increased market transparency, and proposed rule change is consistent with 18 techniques are much more robust and automated. heightened contra-party the Section 6(b)(5) requirement that In the early 1990s, it was also thought by some that creditworthiness due to the role of OCC the rules of an exchange not be designed opening procedures allow more time to attract as issuer and guarantor of FLEX to permit unfair discrimination between contra-side interest to reduce imbalances. The Options. customers, issuers, brokers, or dealers. Exchange believes, however, that today order flow is predominantly electronic and the ability to If, in the future, the Exchange In particular, the Exchange believes smooth out openings and closes is greatly reduced proposes an additional extension of the that the proposed extension of the pilot (e.g., market-on-close procedures work just as well program, which permits additional as openings). Also other markets, such as the pilot program, or should the Exchange propose to make the pilot program exercise settlement values, would NASDAQ Stock Exchange, do not have the same provide greater opportunities for type of pre-opening imbalance disseminations as permanent (which the Exchange the NYSE, so many stocks are not subject to the currently intends to do), the Exchange investors to manage risk through the use same procedures on Expiration Friday. In addition, of FLEX Options. Further, the Exchange the Exchange believes that the NYSE has reduced will submit, along with any filing proposing such amendments to the pilot believes that it has not experienced any the required time a specialist has to wait after adverse effects from the operation of the disseminating a pre-opening indication. So, in this program, an additional pilot program pilot program, including any adverse respect, the Exchange believes there is less time to report covering the extended period react in the opening than in the close. Moreover, to market volatility effects that might occur during which the pilot program was in the extent there may be a risk of adverse market as a result of large FLEX exercises in effect and including the details effects attributable to p.m. settled options (or FLEX Option series that expire near certain average price settled options related to the referenced above and consistent with Non-FLEX expirations and use a p.m. closing price) that would otherwise be traded in a the pilot program’s Approval Order. The non-transparent fashion in the OTC market, the settlement. The Exchange also believes pilot program report would be Exchange continues to believe that such risk would that the extension of the exercise be lessened by making these customized options submitted to the Commission at least settlement values pilot does not raise eligible for trading in an exchange environment two months prior to the new expiration any unique regulatory concerns. In because of the added transparency, price discovery, date of the pilot program. The Exchange liquidity, and financial stability available. particular, although p.m. settlements will also continue, on a periodic basis, 13 CBOE Rule 4.13(a) provides that ‘‘[i]n a manner may raise questions with the to submit interim reports of volume and and form prescribed by the Exchange, each Trading Commission, the Exchange believes Permit Holder shall report to the Exchange, the open interest consistent with the terms that, based on the Exchange’s name, address, and social security or tax of the exercise settlement values pilot identification number of any customer who, acting experience in trading FLEX Options to program as described in the pilot alone, or in concert with others, on the previous date and over the pilot period, market business day maintained aggregate long or short program’s Approval Order. All such positions on the same side of the market of 200 or pilot reports would continue to be 15 For example, a position in a pm-settled FLEX more contracts of any single class of option provided by the Exchange along with a contracts dealt in on the Exchange. The report shall Index Option series that expires on Expiration indicate for each such class of options, the number request for confidential treatment under Friday in January 2015 could be established during of option contracts comprising each such position FOIA.14 As noted in the pilot program’s the exercise settlement values pilot. If the pilot and, in the case of short positions, whether covered program were not extended (or made permanent), Approval Order, any positions then the position could continue to exist. However, or uncovered.’’ For purposes of this Rule, the term established under the pilot program ‘‘customer’’ in respect of any Trading Permit Holder the Exchange notes that any further trading in the includes ‘‘the Trading Permit Holder, any general series would be restricted to transactions where at or special partner of the Trading Permit Holder, any 14 See, note 11, supra, and surrounding least one side of the trade is a closing transaction. officer or director of the Trading Permit Holder, or discussion. If the Exchange seeks permanent See Approval Order, supra note 6, footnotes 9 and any participant, as such, in any joint, group or approval of the pilot program, the Exchange 10. syndicate account with the Trading Permit Holder recognizes that certain information in the pilot 16 15 U.S.C. 78f(b). or with any partner, officer or director thereof.’’ reports may need to be made available on a public 17 15 U.S.C. 78f(b)(5). Rule 4.13(d). basis. 18 Id.

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impact and investor protection concerns operative prior to 30 days from the date Electronic Comments will not be raised by this rule change. on which it was filed, or such shorter • The Exchange also believes that the time as the Commission may designate, Use the Commission’s Internet proposed rule change would continue to the proposed rule change has become comment form (http://www.sec.gov/ provide Trading Permit Holders and effective pursuant to Section 19(b)(3)(A) rules/sro.shtml); or investors with additional opportunities of the Act 19 and Rule 19b–4(f)(6) • Send an email to rule-comments@ to trade customized options in an thereunder.20 sec.gov. Please include File Number SR– exchange environment (which offers the A proposed rule change filed CBOE–2013–099 on the subject line. added benefits of transparency, price pursuant to Rule 19b–4(f)(6) under the discovery, liquidity, and financial Act 21 normally does not become Paper Comments stability as compared to the over-the- operative for 30 days after the date of its • counter market) and subject to filing. However, Rule 19b–4(f)(6)(iii) 22 Send paper comments in triplicate exchange-based rules, and investors permits the Commission to designate a to Elizabeth M. Murphy, Secretary, would benefit as a result. shorter time if such action is consistent Securities and Exchange Commission, with the protection of investors and the 100 F Street NE., Washington, DC B. Self-Regulatory Organization’s public interest. The Exchange requested 20549–1090. Statement on Burden on Competition that the Commission waive the 30-day All submissions should refer to File CBOE does not believe that the operative delay so that the proposed Number SR–CBOE–2013–099. This file proposed rule change will impose any rule change may become operative upon number should be included on the burden on competition that is not filing. The Commission believes that necessary or appropriate in furtherance waiving the 30-day operative delay is subject line if email is used. To help the of the purposes of the Act. consistent with the protection of Commission process and review your The Exchange believes there is investors and the public interest. The comments more efficiently, please use sufficient investor interest and demand Commission notes that waiving the 30- only one method. The Commission will in the pilot program to warrant its day operative delay would prevent the post all comments on the Commission’s extension. The Exchange believes that, expiration of the pilot program on Internet Web site (http://www.sec.gov/ for the period that the pilot has been in November 2, 2013, prior to the rules/sro.shtml). Copies of the operation, the program has provided extension of the pilot program becoming submission, all subsequent investors with additional means of operative. Therefore, the Commission amendments, all written statements managing their risk exposures and hereby waives the 30-day operative with respect to the proposed rule carrying out their investment objectives. delay and designates the proposal change that are filed with the Furthermore, the Exchange believes that operative upon filing.23 Commission, and all written it has not experienced any adverse At any time within 60 days of the communications relating to the market effects with respect to the pilot filing of the proposed rule change, the proposed rule change between the program, including any adverse market Commission summarily may Commission and any person, other than volatility effects that might occur as a temporarily suspend such rule change if those that may be withheld from the result of large FLEX exercises in FLEX it appears to the Commission that such public in accordance with the action is necessary or appropriate in the Option series that expire near Non-Flex provisions of 5 U.S.C. 552, will be public interest, for the protection of expirations and use a p.m. settlement. available for Web site viewing and CBOE believes that the restriction investors, or otherwise in furtherance of printing in the Commission’s Public actually places the Exchange at a the purposes of the Act. If the Reference Room, 100 F Street NE., competitive disadvantage to its OTC Commission takes such action, the counterparts in the market for Commission will institute proceedings Washington, DC 20549, on official customized options, and unnecessarily to determine whether the proposed rule business days between the hours of limits market participants’ ability to change should be approved or 10:00 a.m. and 3:00 p.m. Copies of the trade in an exchange environment that disapproved. filing also will be available for inspection and copying at the principal offers the added benefits of IV. Solicitation of Comments transparency, price discovery, liquidity, office of the Exchange. All comments and financial stability. Therefore, the Interested persons are invited to received will be posted without change; Exchange does not believe that the submit written data, views, and the Commission does not edit personal proposed rule change will impose any arguments concerning the foregoing, identifying information from burden on competition. including whether the proposed rule submissions. You should submit only change is consistent with the Act. information that you wish to make C. Self-Regulatory Organization’s Comments may be submitted by any of available publicly. All submissions Statement on Comments on the the following methods: Proposed Rule Change Received From should refer to File Number SR–CBOE– 2013–099 and should be submitted on Members, Participants, or Others 19 15 U.S.C. 78s(b)(3)(A). 20 or before November 20, 2013. The Exchange neither solicited nor 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– 4(f)(6) requires a self-regulatory organization to give For the Commission, by the Division of received comments on the proposed the Commission written notice of its intent to file rule change. the proposed rule change, along with a brief Trading and Markets, pursuant to delegated description and text of the proposed rule change, authority.24 III. Date of Effectiveness of the at least five business days prior to the date of filing Kevin M. O’Neill, Proposed Rule Change and Timing for of the proposed rule change, or such shorter time Deputy Secretary. Commission Action as designated by the Commission. The Exchange has satisfied this requirement. [FR Doc. 2013–25645 Filed 10–29–13; 8:45 am] Because the proposed rule change 21 17 CFR 240.19b–4(f)(6). BILLING CODE 8011–01–P does not: (i) Significantly affect the 22 17 CFR 240.19b–4(f)(6)(iii). protection of investors or the public 23 For purposes only of waiving the 30-day operative delay, the Commission has considered the interest; (ii) impose any significant proposed rule’s impact on efficiency, competition, burden on competition; and (iii) become and capital formation. See 15 U.S.C. 78c(f). 24 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE rule change. The text of these statements Exchange Directors would be required COMMISSION may be examined at the places specified to be elected at each annual stockholder in Item IV below. OCC has prepared meeting and term limits and the absence [Release No. 34–70753; File No. SR–OCC– 2013–17] summaries, set forth in sections (A), (B) of age limits for Directors would be and (C) below, of the most significant addressed along with responsibilities of Self-Regulatory Organizations; The aspects of these statements. any Management or Member Vice Chairman. Options Clearing Corporation; Notice (A) Clearing Agency’s Statement of the of Filing of Proposed Rule Change The Board Charter would address Purpose of, and Statutory Basis for, the certain aspects of the membership and Concerning Charters for the Board of Proposed Rule Change Directors, the Membership/Risk organization of the Board with respect Committee, the Audit Committee and 1. Purpose of the Proposed Rule Change to meetings. The Board would meet a the Performance Committee This proposed rule change concerns minimum of five times each year with the Board, Membership/Risk Committee special meetings called pursuant to the October 24, 2013. 6 (‘‘MRC’’), Audit Committee (‘‘AC’’) and By-Laws. Expectations concerning Pursuant to Section 19(b)(1) of the Performance Committee (‘‘PC’’) participation in meetings by Directors Securities Exchange Act of 1934 Charters. would be set out and the Chairman of (‘‘Act’’)1 and Rule 19b–4 thereunder,2 the Board would be required to set the notice is hereby given that, on October Board of Directors Charter agenda in consultation with the 17, 2013, the Options Clearing The introduction of the Board Charter President and the Secretary. Corporation (‘‘OCC’’) filed with the reconfirms that oversight of the The Board Charter would provide that Securities and Exchange Commission management of the business and affairs the Board is authorized to make (‘‘Commission’’) the proposed rule of OCC is generally vested in the Board. inquiries as it deems appropriate in the change as described in Items I, II, and OCC has not previously adopted a execution of its duties and may confer III below, which Items have been charter for its Board of Directors with OCC management or employees.7 prepared by OCC. The Commission is (‘‘Board’’) because OCC’s By-Laws and The Board would elect certain corporate publishing this notice to solicit Rules provide the framework within officers annually, as provided for in the comments on the proposed rule change which the respective responsibilities of By-Laws. from interested persons. OCC’s Board and management have The Board would be permitted to form such committees and I. Clearing Agency’s Statement of the been defined. The Board Charter does subcommittees as it deems appropriate Terms of Substance of the Proposed not impose any new responsibilities on and delegate authority to committee Rule Change the Board, but rather reflects the longstanding powers and duties of the members.8 Chairs of the Board This proposed rule change concerns Board, as well as underlying practices committees would be determined in the charters of OCC’s Board of Directors that have been developed to aid the accordance with the terms of the (‘‘Board Charter’’) and the Membership/ Board in meeting its obligations. The applicable committee charter and any Risk Committee (‘‘MRC Charter’’), Audit Board’s adoption of a Charter at this applicable provisions of the By-Laws. Committee (‘‘AC Charter’’) and time reflects a desire to increase the Committee assignments would be Performance Committee (‘‘PC Charter’’) transparency of the Board’s oversight annually reviewed and approved by the of OCC’s Board of Directors activities for parties outside of OCC, Board subject to the By-Laws. (collectively, the ‘‘Committee Consistent with the requirements 3 promote accountability, and to align Charters’’). with corporate governance best applicable to the Directors serving on II. Clearing Agency’s Statement of the practices. the Board, Directors on Board Purpose of, and Statutory Basis for, the The Board Charter would also committees would be expected to meet Proposed Rule Change acknowledge certain parameters certain standards of preparation and applicable to the membership in and participation. In its filing with the Commission, organization of the Board, many of As a more detailed expression of the OCC included statements concerning which are separately provided for in Board’s responsibility to act as a the purpose of and basis for the OCC’s By-Laws.4 The Board Charter steward of OCC and ensure it has the proposed rule change and discussed any critical capabilities to achieve its comments it received on the proposed would reflect that the size and composition of the Board and obligations in a safe, sound, efficient qualification standards used in the and prudential manner, the Board 1 15 U.S.C. 78s(b)(1). Charter would identify specific 2 17 CFR 240.19b–4. selection of Directors would be 3 The Board Charter was adopted by the Board of consistent with the corresponding terms Directors on March 7, 2013. Prior versions existed of the By-Laws. Actions concerning the Chairman and the President will be elected as Management Directors by the stockholders at each of the MRC Charter, AC Charter and PC Charter. election, resignation, and Each of these Committee Charters were reviewed annual stockholder meeting. See File No. SR–OCC– and amended in 2012 with the MRC Charter being disqualification of Directors, and with 2013–09, 78 FR 47449 (Aug. 5, 2013). further amended in 2013. The 2013 amendment respect to the tenure of service of each 6 The Chairman would be permitted to ask OCC provided that a Public Director would Chair the category of Director, would be required management or others to attend meetings and to Membership/Risk Committee. See Securities provide pertinent information and the Board would to be taken in accordance with the By- be permitted to call executive sessions from which Exchange Act Release No. 70486 (September 24, 5 2013), 78 FR 59994 (September 30, 2013) (SR–OCC– Laws. The Management Director and OCC management may be excluded. A majority of 2013–12). OCC has not previously submitted the the Directors then in office, but not fewer than six Board Committee Charters as rule changes pursuant 4 The Board Charter contains cross-references to Directors, would constitute a quorum for the to Section 19(b) of the Exchange Act, 15 U.S.C. such applicable provisions of OCC’s By-Laws. For conduct of business of the Board. 78s(b), and Rule 19b–4 thereunder, 17 CFR ease of readability, those cross-references have not 7 The Board Charter would provide that in 240.19b–4, but is now doing so in light of recently been repeated in this Item 3. discharging its oversight role the Board may hire provided guidance by the Commission’s staff. Since 5 Pursuant to a recent OCC rule change that has specialists or rely on outside advisors or specialists none of these Charters have been the subject of been approved by the Commission, but not yet and that it would have the authority to approve prior rule filings, the key terms of each Charter, as implemented by OCC, the office of Chairman of related fees and terms of retention. most recently approved by the Board, are described OCC will be split into two offices, Executive 8 The Board would be required to establish a in more detail below in Item 3. Chairman and President. Each of the Executive written charter for each committee.

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functions and responsibilities of the and responsibilities set forth in its The MRC Charter 9 Board. The Board Charter would also Charter, and is authorized to further The MRC Charter sets forth the MRC’s note that certain functions and delegate this authority to various purpose as overseeing OCC’s policies responsibilities of the Board are set forth subcommittees that it may form. Each and processes for identifying, 10 separately in the By-Laws and that Committee is authorized to make addressing and reporting on strategic, each Director must act in good faith in inquiries into any matter related to its operational and financial risk as well as the best interests of OCC and with due respective purpose and OCC’s enterprise risk management 11 regard for the fiduciary responsibilities responsibilities and to confer with framework, among other duties, as well owed to OCC. Each Director would also OCC’s management and other as performing those functions delegated be required to comply with certain employees as it deems appropriate. to it in OCC’s By-Laws and Rules.14 In conduct requirements. Additionally, the chair of each addition, the MRC Charter clarifies that Committee would be authorized to act Committee Charters it is the MRC’s responsibility to review on behalf of its respective Committee in periodic reports from OCC’s enterprise OCC has long maintained Charters for the case that immediate action is risk management program and to review the MRC, AC and PC (each, a required, and it is impractical to and assess that program annually, and ‘‘Committee,’’ and collectively, the 12 convene such Committee. that the MRC must provide a report to ‘‘Committees’’). Below is a discussion of While each Committee Charter sets the Board of Directors on an annual the provisions common across all the forth its own Committee composition basis that summarizes its activities Committee Charters, followed by a requirements, each requires the during the past year.15 discussion of each Committee Charter’s inclusion of at least one Public Director The MRC Charter requires the MRC to unique provisions. and empowers the Board to remove or be composed of OCC’s Chairman, The purpose of the Committee replace any Committee member at any Member Vice Chairman, and three or Charters is to describe the role each time. more other Member Directors appointed Committee plays in assisting the Board Each Committee Charter sets forth its annually by the Board. The MRC is to in fulfilling its responsibilities, as own meeting schedule, though each be chaired by a Public Director. The described in OCC’s By-Laws and Rules, empowers its respective chairman to MRC Charter requires the MRC to meet as well as specify the policies and call additional meetings as at least seven times a year. procedures governing the membership circumstances dictate. Each Committee The MRC Charter sets forth certain and organization, scope of authority, Charter specifies that the agenda for responsibilities and functions for the and specific functions and each Committee’s meetings would be MRC, including but not limited to, the responsibilities of each Committee. The established by the chairman of the following: reviewing and approving or guidelines for the composition of each Committee, or its designee, in disapproving certain requests from Committee, as well as the policies consultation with the Secretary and clearing members, including proposals regarding its meeting schedules, quorum OCC’s management. A majority of the to become managed clearing members, rules, minute-keeping and reporting members would constitute a quorum, to expand clearing activities to include requirements, are set forth in each and if the chairman is not present at a additional account types or products, charter and conform to applicable meeting the members who are present and to participate in stock loan requirements specified in OCC’s By- would designate a member to act as the programs; periodically reviewing OCC’s Laws and Rules. Each Committee, chairman. All Committees are permitted initial and ongoing membership subject to the direction of the Board, is to call executive sessions from which requirements and standards; authorized to act on behalf of the Board guests of such Committee may be periodically reviewing and with respect to any matter necessary or excluded, and Committee members are recommending modifications to the appropriate to accomplish the purpose permitted to participate in all meetings inputs to OCC’s margin formula, the by conference telephone call or other methodologies behind margin and 9 These include the responsibility to oversee: means of communication that permit all clearing fund requirements, the lists of OCC’s governance processes in a manner consistent meeting participants to hear each with the Board Charter; processes and framework approved classes of GSE debt securities other.13 for assessing, managing and monitoring strategic, for margin deposits, and the applicable financial and operational risk; financial reporting, Each Committee Charter requires the auditing, accounting and compliance processes; a relevant Committee to review its haircuts for margin; modifying margin system of internal controls; major capital respective charter annually, with each requirements; reviewing the adequacy expenditures; the development and design of charter submitted to OCC’s Board for and efficacy of and recommending employee compensation, incentive and benefit modifications to OCC’s contingency programs; and compensation of the Chairman and reapproval with any such changes that the President. The Board Charter would also the relevant Committee deems plans for clearing member failures; specifically require the Board to approve and advisable. periodically reviewing clearing member oversee OCC’s business strategies, monitor surveillance standards, and reviewing performance in delivering clearance and settlement The discussion that follows services; foster OCC’s processes designed to ensure summarizes the key charter provisions and advising management with respect compliance with applicable laws and regulations associated with the specific functions of to such surveillance; periodically and conduct business in a legal and ethical manner; the MRC, AC and PC, respectively. reviewing and assessing, and reviewing assure management succession; and approve OCC’s reports from, OCC’s enterprise risk annual budget and corporate plan. 11 management program; and performing 10 The Charter would identify the Board’s The Committee Charters further permit each responsibility under the By-Laws to approve Committee to hire specialists or rely on outside applications for clearing membership and initial advisors or specialists to assist in carrying out the 14 This oversight by the MRC includes, but is not contributions to the clearing fund, OCC’s fee Committee’s activities and confirm the Committee’s limited to, review of material policies and processes structure as well as rebates, discounts and refunds authority to approve any related terms of retention concerning: membership criteria and financial of clearing fees, and modifications of OCC’s By- and fees. The MRC and PC’s authority under these safeguards; member and other counterparty risk Laws and Rules. The Board Charter would also provisions, however, is subject to Board approval. exposure assessments; liquidity requirements and identify the responsibility of the Board to determine 12 In such instances, the committee chair must, as maintenance of financial resources; risk modeling disqualifications from Board service and fill soon as practicable, report any actions taken to its and assessments; and default management vacancies, elect corporate officers, conduct hearings committee for its ratification. planning. in connection with a denial or suspension of 13 Meeting minutes would be required to be kept 15 The MRC may make other reports to the Board membership; and suspend a clearing member. and circulated with the Board. of Directors as it deems appropriate.

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such other functions specified in OCC’s personnel of any concerns regarding Board Charter and Committee Charters By-Laws and Rules or delegated to it by unethical or illegal conduct. will help ensure that OCC’s governance the Board. structure is designed to protect investors The PC Charter and the public interest. By creating a The AC Charter The PC Charter sets forth the PC’s Board Charter and making certain The AC Charter sets forth the purpose purpose as assisting the Board in amendments to the MRC Charter, AC of the AC as assisting the Board in oversight of OCC’s overall performance Charter and PC Charter that clarify the fulfilling its oversight responsibilities, in promptly and accurately delivering duties and operations of the Board and by serving as an independent and clearance, settlement and other its Committees OCC will have, as objective party to oversee OCC’s designated industry services and in the required under Rule 17Ad–22(d)(8),17 a financial reporting process, system of accomplishment of other periodically- clear and transparent governance internal control, and auditing, established corporate goals and structure that will fulfill the public accounting and compliance objectives given OCC’s systemically interests requirements in Section 17A of environment and processes. The AC’s important status. The PC is also tasked the Act, support the objectives of OCC’s purpose also includes overseeing the with recommending compensation for owners and participants, and promote audit efforts of OCC’s independent certain OCC officers and reviewing and the effectiveness of OCC’s risk accountants and the internal audit approving the structure and design of management procedures. department, as well as facilitating open employee compensation, incentive and benefit programs. (B) Clearing Agency’s Statement on communication among the independent Burden on Competition accountants, financial and senior The PC Charter requires that the PC be management, internal audit department, composed of OCC’s Chairman, Member OCC does not believe that the Vice Chairman and three or more other compliance department and the Board. proposed rule change would impose any directors appointed annually by the burden on competition that is not The AC Charter requires that the AC Board, and that the PC be chaired by be composed of three or more directors necessary or appropriate in furtherance OCC’s Member Vice Chairman. The PC 18 appointed annually by the Board, each of the purposes of the Act. This Charter states that the PC will generally proposed rule change will help ensure of whom must have a working meet in advance of each regularly familiarity with basic finance and that OCC meets regulatory requirements scheduled Board meeting. that it has a clear and transparent accounting practices. At least one The PC Charter describes the PC’s role member, if possible, is required to have governance structure, as well as clarify as one of oversight, including oversight the organization, duties and operation of accounting or related financial of management’s responsibility to management expertise. The Board is its Board and Committee, through the identify, organize, and manage the adoption of the Board Charter and permitted to appoint a Chair of the AC, operational, systems, technology, though in the absence of a Board updated Committee Charters. To the financial, human, and other resources extent OCC’s clearing members are appointment, the AC should appoint a necessary to support OCC’s clearance, Chairman by majority vote of the full affected by proposed rule change, OCC settlement and other business activities. believes that, by clarifying and AC membership. The AC Charter The PC Charter sets forth additional requires the AC to meet at least four publishing the terms of the Board and functions and responsibilities including, Committee Charters in the public times a year. but not limited to, the following: The AC Charter also assigns specific domain, all of its participants will have regularly scheduled reviews of OCC’s greater certainty concerning OCC’s activities to the AC, including, but not Corporate Plan, Budget, executive limited to, the following: appointing, governance arrangements and that such performance and compensation, clarification will facilitate the prompt overseeing and reviewing OCC’s employment contracts, changes in independent accountants, and all fees and accurate settlement of securities OCC’s fee structure, and special transactions. Accordingly, OCC does not paid to them; reviewing the annual financial matters; oversight of the audit plan, annual internal control believe that the proposed rule will it administration of OCC’s various impose any burden on competition that attestation engagement, and the annual incentive, bonus, deferred audited financial statements and related is not necessary or appropriate in compensation, retirement and welfare furtherance of the purposes of the Act. reports; approve any decision of OCC’s plans; periodic assessment of succession management to appoint or replace the plans for key executives; oversight of (C) Clearing Agency’s Statement on Chief Compliance Officer; reviewing the compensation, benefits and Comments on the Proposed Rule and approving the Compliance Charter; perquisites of OCC’s executive and Change Received From Members, assessing the performance and management personnel, provided that Participants or Others effectiveness of the compliance decisions with respect to the individual Written comments on the proposed program; reviewing and evaluating any compensation of the Chairman, rule change were not and are not annual compliance report that may as a Management Vice Chairman, and intended to be solicited with respect to matter of regulation be certified by the President shall be made in the form of the proposed rule change and none have Chief Compliance Officer; reviewing recommendations to the Board; and any been received. remediation tracking performed by other activities that are consistent with OCC’s compliance department in the PC Charter, as the PC or the Board III. Date of Effectiveness of the connection with regulatory inspection may deem necessary or appropriate. Proposed Rule Change and Timing for reports and management’s response; Commission Action reviewing OCC’s system to 2. Statutory Basis for the Proposed Rule Within 45 days of the date of communicate and monitor compliance Change publication of this notice in the Federal with and enforcement of OCC’s Code of OCC believes that the proposed rule Register or within such longer period Conduct and the outcome of change is consistent with Section up to 90 days (i) as the Commission may disciplinary actions taken by OCC; and 17A(b)(3)(F) of the Act 16 because the establishing ‘‘whistleblower’’ 17 17 CFR 240.17Ad–22(d)(8). procedures for the reporting by 16 15 U.S.C. 78q–1(b)(3)(F). 18 15 U.S.C. 78q–1(b)(3)(I).

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designate if it finds such longer period identifying information from the Office of Management and Budget to be appropriate and publishes its submissions. You should submit only (OMB) approval to renew an reasons for so finding or (ii) as to which information that you wish to make information collection. We are required the self-regulatory organization available publicly. All submissions to publish this notice in the Federal consents, the Commission will: should refer to File Number SR–OCC– Register by the Paperwork Reduction (A) by order approve or disapprove 2013–17 and should be submitted on or Act of 1995, Public Law 104–13. the proposed rule change, or before November 20, 2013. DATES: Written comments should be (B) institute proceedings to determine For the Commission by the Division of submitted by December 30, 2013. whether the proposed rule change Trading and Markets, pursuant to delegated should be disapproved. ADDRESSES: You may submit comments authority.19 identified by Docket No. MARAD– IV. Solicitation of Comments Kevin M. O’Neill, 2013–0112 through one of the following Interested persons are invited to Deputy Secretary. methods: submit written data, views and [FR Doc. 2013–25646 Filed 10–29–13; 8:45 am] • Federal eRulemaking Portal: http:// arguments concerning the foregoing, BILLING CODE 8011–01–P www.regulations.gov. Follow the online including whether the proposed rule instructions for submitting comments. change is consistent with the Act. • Fax: 1–202–493–2251. Comments may be submitted by any of DEPARTMENT OF STATE • Mail or Hand Delivery: Docket the following methods: Management Facility, U.S. Department [Public Notice 8510] of Transportation, 1200 New Jersey Electronic Comments Avenue SE., West Building, Room W12– Department of State Performance • Use the Commission’s Internet 140, Washington, DC 20590, between 9 Review Board Members comment form (http://www.sec.gov/ a.m. and 5 p.m., Monday through rules/sro.shtml), or In accordance with section 4314(c)(4) Friday, except on Federal holidays. For • Send an email to rule-comments@ of 5 United States Code, the Department access to the docket to read background sec.gov. Please include File Number SR– of State has appointed the following documents or comments received, go to OCC–2013–17 on the subject line. individuals to the Department of State http://www.regulations.gov. Paper Comments Performance Review Board for Senior Note: All comments received will be Executive Service members: posted without change to http:// • Send paper comments in triplicate Robert Goldberg, Chairperson, Director, www.redulations.gov including any personal to Elizabeth M. Murphy, Secretary, information provided. Securities and Exchange Commission, Office of the United States Foreign 100 F Street NE., Washington DC Assistance Resources, Department of Privacy Act: Anyone is able to search 20549–1090. State; the electronic form of all comments All submissions should refer to File Linda Jacobson, Assistant Legal received into any of our dockets by the Number SR–OCC–2013–17. This file Advisor, Office of the Legal Advisor, name of the individual submitting the number should be included on the Department of State; comment (or signing the comment, if subject line if email is used. To help the Margaret Pollack, Office Director, submitted on behalf of an association, Commission process and review your Bureau of Population, Refugees and business, labor union, etc.). You may comments more efficiently, please use Migration, Department of State; and review DOT’s complete Privacy Act only one method of submission. The Teddy Taylor, Diplomat in Residence, Statement in the Federal Register Commission will post all comments on Bureau of Human Resources, published on April 11, 2000 (Volume the Commission’s Internet Web site Department of State. 65, Number 70; Pages 19477–78) or you (http://www.sec.gov/rules/sro.shtml). Dated: October 21, 2013. may visit http://www.regulations.gov. Copies of the submission, all subsequent Hans Klemm, FOR FURTHER INFORMATION CONTACT: amendments, all written statements Acting Director General of the Foreign Service Michael Yarrington, Chief, Office of with respect to the proposed rule and Director of Human Resources, Marine Insurance, Maritime change that are filed with the Department of State. Administration, U.S. Department of Commission, and all written [FR Doc. 2013–25755 Filed 10–29–13; 8:45 am] Transportation, 1200 New Jersey communications relating to the BILLING CODE 4710–15–P Avenue SE., Washington, DC 20590. proposed rule change between the Copies of this collection can also be Commission and any person, other than obtained from that office. those that may be withheld from the DEPARTMENT OF TRANSPORTATION SUPPLEMENTARY INFORMATION: public in accordance with the OMB Control Number: 2133–0517. provisions of 5 U.S.C. 552, will be [Docket No. MARAD–4910–81–P] Title: Approval of Underwriters of available for Web site viewing and Marine Hull Insurance. Agency Requests for Renewal of a printing in the Commission’s Public Form Numbers: None. Previously Approved Information Reference Room located at 100 F Street Type of Review: Renewal of an Collection(s): Approval of Underwriters NE., Washington, DC 20549–1090 on information collection. of Marine Hull Insurance official business days between the hours Summary of Collection of of 10:00 a.m. and 3:00 p.m. Copies of AGENCY: Maritime Administration. Information: This collection of such filing also will be available for ACTION: Notice and request for information involves the approval of inspection and copying at the principal comments. marine hull underwriters to insure office of OCC and on OCC’s Web site at Maritime Administration program http://www.optionsclearing.com/ SUMMARY: The Department of vessels. Foreign and domestic components/docs/legal/rules_and_ Transportation (DOT) invites public applicants will be required to submit bylaws/sr_occ_13_17.pdf. All comments comments about our intention to request financial data upon which Maritime received will be posted without change; Administration approval would be the Commission does not edit personal 19 17 CFR 200.30–3(a)(12). based.

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Need and Use of the Information: The [email protected], FMCSA, Room FMCSA established its diabetes information is needed in order for W64–224, Department of exemption program, based on the Maritime Administration officials to Transportation, 1200 New Jersey Agency’s July 2000 study entitled ‘‘A evaluate the underwriters and Avenue SE., Washington, DC 20590– Report to Congress on the Feasibility of determine their suitability for providing 0001. Office hours are from 8:30 a.m. to a Program to Qualify Individuals with marine hull insurance on Maritime 5 p.m., Monday through Friday, except Insulin-Treated Diabetes Mellitus to Administration vessels. Federal holidays. Operate in Interstate Commerce as Respondents: Marine insurance SUPPLEMENTARY INFORMATION: Directed by the Transportation Act for brokers and underwriters of marine the 21st Century.’’ The report concluded Electronic Access insurance. that a safe and practicable protocol to Number of Respondents: 62. You may see all the comments online allow some drivers with ITDM to Frequency: Annually. through the Federal Document operate CMVs is feasible. The Number of Responses: 62. Management System (FDMS) at: http:// September 3, 2003 (68 FR 52441), Total Annual Burden: 46 hours. www.regulations.gov. Federal Register notice in conjunction Public Comments Invited: You are Docket: For access to the docket to with the November 8, 2005 (70 FR asked to comment on any aspect of this read background documents or 67777), Federal Register notice provides information collection, including (a) comments, go to http:// the current protocol for allowing such Whether the proposed collection of www.regulations.gov and/or Room drivers to operate CMVs in interstate information is necessary for the W12–140 on the ground level of the commerce. Department’s performance; (b) the West Building, 1200 New Jersey Avenue These 19 applicants have had ITDM accuracy of the estimated burden; (c) SE., Washington, DC, between 9 a.m. over a range of 1 to 28 years. These ways for the Department to enhance the and 5 p.m., Monday through Friday, applicants report no severe quality, utility and clarity of the except Federal holidays. hypoglycemic reactions resulting in loss information collection; and (d) ways Privacy Act: Anyone may search the of consciousness or seizure, requiring that the burden could be minimized electronic form of all comments the assistance of another person, or without reducing the quality of the received into any of DOT’s dockets by resulting in impaired cognitive function collected information. The agency will the name of the individual submitting that occurred without warning summarize and/or include your the comment (or of the person signing symptoms, in the past 12 months and no comments in the request for OMB’s the comment, if submitted on behalf of recurrent (2 or more) severe clearance of this information collection. an association, business, labor union, or hypoglycemic episodes in the past 5 other entity). You may review DOT’s Authority: The Paperwork Reduction Act years. In each case, an endocrinologist of 1995; 44 U.S.C. Chapter 35, as amended; Privacy Act Statement for the Federal verified that the driver has and 49 CFR 1.93. Docket Management System (FDMS) demonstrated a willingness to properly published in the Federal Register on monitor and manage his/her diabetes Dated: October 24, 2013. January 17, 2008 (73 FR 3316). Julie P. Agarwal, mellitus, received education related to Secretary, Maritime Administration. Background diabetes management, and is on a stable insulin regimen. These drivers report no [FR Doc. 2013–25621 Filed 10–29–13; 8:45 am] On August 19, 2013, FMCSA other disqualifying conditions, BILLING CODE 4910–81–P published a notice of receipt of Federal diabetes exemption applications from including diabetes-related 19 individuals and requested comments complications. Each meets the vision DEPARTMENT OF TRANSPORTATION from the public (78 FR 50486). The requirement at 49 CFR 391.41(b)(10). public comment period closed on The qualifications and medical Federal Motor Carrier Safety September 18, 2013, and one comment condition of each applicant were stated Administration was received. and discussed in detail in the August 19, 2013, Federal Register notice and [FMCSA Docket No. FMCSA–2013–0182] FMCSA has evaluated the eligibility of the 19 applicants and determined that they will not be repeated in this notice. Qualification of Drivers; Exemption granting the exemptions to these Discussion of Comments Applications; Diabetes Mellitus individuals would achieve a level of safety equivalent to or greater than the FMCSA received one comment in this AGENCY: Federal Motor Carrier Safety level that would be achieved by proceeding. The comment is considered Administration (FMCSA), DOT. complying with the current regulation and discussed below. ACTION: Notice of final disposition. 49 CFR 391.41(b)(3). The Pennsylvania Department of Transportation is in favor of granting SUMMARY: FMCSA announces its Diabetes Mellitus and Driving exemptions to Peter Engel, Lewis decision to exempt 19 individuals from Experience of the Applicants Forrester, Charles LaBruno, and Shawn its rule prohibiting persons with The Agency established the current E. Marks after reviewing their driving insulin-treated diabetes mellitus (ITDM) requirement for diabetes in 1970 histories. from operating commercial motor because several risk studies indicated Basis for Exemption Determination vehicles (CMVs) in interstate commerce. that drivers with diabetes had a higher The exemptions will enable these rate of crash involvement than the Under 49 U.S.C. 31136(e) and 31315, individuals to operate CMVs in general population. The diabetes rule FMCSA may grant an exemption from interstate commerce. provides that ‘‘A person is physically the diabetes requirement in 49 CFR DATES: The exemptions are effective qualified to drive a commercial motor 391.41(b)(3) if the exemption is likely to October 30, 2013. The exemptions vehicle if that person has no established achieve an equivalent or greater level of expire on October 30, 2015. medical history or clinical diagnosis of safety than would be achieved without FOR FURTHER INFORMATION CONTACT: diabetes mellitus currently requiring the exemption. The exemption allows Elaine M. Papp, Chief, Medical insulin for control’’ (49 CFR the applicants to operate CMVs in Programs Division, (202) 366–4001, 391.41(b)(3)). interstate commerce.

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To evaluate the effect of these for two years unless revoked earlier by • Mail: Docket Management Facility; exemptions on safety, FMCSA FMCSA. The exemption will be revoked U.S. Department of Transportation, 1200 considered medical reports about the if the following occurs: (1) The person New Jersey Avenue SE., West Building applicants’ ITDM and vision, and fails to comply with the terms and Ground Floor, Room W12–140, reviewed the treating endocrinologists’ conditions of the 1/exemption; (2) the Washington, DC 20590–0001. medical opinion related to the ability of exemption has resulted in a lower level • Hand Delivery or Courier: West the driver to safely operate a CMV while of safety than was maintained before it Building Ground Floor, Room W12–140, using insulin. was granted; or (3) continuation of the 1200 New Jersey Avenue SE., Consequently, FMCSA finds that in exemption would not be consistent with Washington, DC, between 9 a.m. and 5 each case exempting these applicants the goals and objectives of 49 U.S.C. p.m., Monday through Friday, except from the diabetes requirement in 49 CFR 31136(e) and 31315. If the exemption is Federal Holidays. 391.41(b)(3) is likely to achieve a level still effective at the end of the 2-year • Fax: 1–202–493–2251. of safety equal to that existing without period, the person may apply to FMCSA Instructions: Each submission must the exemption. for a renewal under procedures in effect include the Agency name and the Conditions and Requirements at that time. docket number for this notice. Note that Issued on: October 24, 2013. DOT posts all comments received The terms and conditions of the without change to http:// Larry W. Minor, exemption will be provided to the www.regulations.gov, including any applicants in the exemption document Associate Administrator for Policy. personal information included in a and they include the following: (1) That [FR Doc. 2013–25797 Filed 10–29–13; 8:45 am] comment. Please see the Privacy Act each individual submit a quarterly BILLING CODE 4910–EX–P heading below. monitoring checklist completed by the Docket: For access to the docket to treating endocrinologist as well as an read background documents or annual checklist with a comprehensive DEPARTMENT OF TRANSPORTATION comments, go to http:// medical evaluation; (2) that each www.regulations.gov at any time or individual reports within 2 business Federal Motor Carrier Safety Administration Room W12–140 on the ground level of days of occurrence, all episodes of the West Building, 1200 New Jersey severe hypoglycemia, significant Avenue SE., Washington, DC, between 9 complications, or inability to manage [Docket No. FMCSA–2001–9258; FMCSA– a.m. and 5 p.m., Monday through diabetes; also, any involvement in an 2011–26690] Friday, except Federal holidays. The accident or any other adverse event in Qualification of Drivers; Exemption Federal Docket Management System a CMV or personal vehicle, whether or Applications; Vision (FDMS) is available 24 hours each day, not it is related to an episode of 365 days each year. If you want hypoglycemia; (3) that each individual AGENCY: Federal Motor Carrier Safety acknowledgment that we received your provide a copy of the ophthalmologist’s Administration (FMCSA), DOT. comments, please include a self- or optometrist’s report to the medical ACTION: Notice of renewal of addressed, stamped envelope or examiner at the time of the annual exemptions; request for comments. postcard or print the acknowledgement medical examination; and (4) that each page that appears after submitting individual provide a copy of the annual SUMMARY: FMCSA announces its comments on-line. decision to renew the exemptions from medical certification to the employer for Privacy Act: Anyone may search the the vision requirement in the Federal retention in the driver’s qualification electronic form of all comments Motor Carrier Safety Regulations for 13 file, or keep a copy in his/her driver’s received into any of our dockets by the individuals. FMCSA has statutory qualification file if he/she is self- name of the individual submitting the authority to exempt individuals from employed. The driver must also have a comment (or of the person signing the the vision requirement if the copy of the certification when driving, comment, if submitted on behalf of an exemptions granted will not for presentation to a duly authorized association, business, labor union, etc.). compromise safety. The Agency has Federal, State, or local enforcement You may review DOT’s Privacy Act concluded that granting these official. Statement for the Federal Docket exemption renewals will provide a level Management System (FDMS) published Conclusion of safety that is equivalent to or greater in the Federal Register on January 17, Based upon its evaluation of the 19 than the level of safety maintained 2008 (73 FR 3316). exemption applications, FMCSA without the exemptions for these exempts Francisco Barron (TX), Jase V. commercial motor vehicle (CMV) FOR FURTHER INFORMATION CONTACT: Burkhart (SD), Peter Engel (PA), Jhon A. drivers. Elaine M. Papp, Chief, Medical Fitzgerald (ME), Lewis E. Forrester (PA), Programs Division, 202–366–4001, DATES: This decision is effective Randall G. Freed (IL), Jesus A. Gonzales [email protected], FMCSA, December 5, 2013. Comments must be (NY), Robert D. Graves (IA), Michael G. Department of Transportation, 1200 received on or before November 29, Harp (OK), Ray Harrison (MD), Edward New Jersey Avenue SE., Room W64– 2013. E. Hartford (NY), Michael Hatfield (KY), 224, Washington, DC 20590–0001. Charles LaBruno (PA), Clinton D. Lewis ADDRESSES: You may submit comments Office hours are from 8:30 a.m. to 5 p.m. (IA), Shawn E. Marks (PA), John D. bearing the Federal Docket Management Monday through Friday, except Federal Patterson (OH), Ricky A. Root (IL), Tina System (FDMS) numbers: Docket No. holidays. M. Schreiber (MN), and Donald G. [Docket No. FMCSA–2001–9258; SUPPLEMENTARY INFORMATION: Staggs (CA) from the ITDM requirement FMCSA–2011–26690], using any of the Background in 49 CFR 391.41(b)(3), subject to the following methods: conditions listed under ‘‘Conditions and • Federal eRulemaking Portal: Go to Under 49 U.S.C. 31136(e) and 31315, Requirements’’ above. http://www.regulations.gov. Follow the FMCSA may renew an exemption from In accordance with 49 U.S.C. 31136(e) on-line instructions for submitting the vision requirements in 49 CFR and 31315 each exemption will be valid comments. 391.41(b)(10), which applies to drivers

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of CMVs in interstate commerce, for a Basis for Renewing Exemptions and medical condition of each applicant two-year period if it finds ‘‘such Under 49 U.S.C. 31315(b)(1), an for an exemption from the vision exemption would likely achieve a level exemption may be granted for no longer requirements. That information is of safety that is equivalent to or greater than two years from its approval date available by consulting the above cited than the level that would be achieved and may be renewed upon application Federal Register publications. Interested parties or organizations absent such exemption.’’ The for additional two year periods. In possessing information that would procedures for requesting an exemption accordance with 49 U.S.C. 31136(e) and otherwise show that any, or all, of these (including renewals) are set out in 49 31315, each of the 13 applicants has drivers are not currently achieving the CFR part 381. satisfied the entry conditions for statutory level of safety should obtaining an exemption from the vision Exemption Decision immediately notify FMCSA. The requirements (66 FR 17743; 66 FR This notice addresses 13 individuals Agency will evaluate any adverse 33990; 68 FR 35772; 70 FR 33937; 72 FR evidence submitted and, if safety is who have requested renewal of their 32705; 74 FR 26464; 76 FR 34135; 76 FR exemptions in accordance with FMCSA being compromised or if continuation of 64169; 76 FR 75943). Each of these 13 the exemption would not be consistent procedures. FMCSA has evaluated these applicants has requested renewal of the 13 applications for renewal on their with the goals and objectives of 49 exemption and has submitted evidence U.S.C. 31136(e) and 31315, FMCSA will merits and decided to extend each showing that the vision in the better eye exemption for a renewable two-year take immediate steps to revoke the continues to meet the requirement exemption of a driver. period. They are: specified at 49 CFR 391.41(b)(10) and Kevin G. Clem (SD) that the vision impairment is stable. In Submitting Comments Rocky J. Lachney (LA) addition, a review of each record of You may submit your comments and Herman G. Lovell (OR) safety while driving with the respective material online or by fax, mail, or hand Gerard L. Pagan (NC) vision deficiencies over the past two delivery, but please use only one of years indicates each applicant continues Danny C. Pope (IL) these means. FMCSA recommends that to meet the vision exemption you include your name and a mailing David A. Rice (PA) requirements. address, an email address, or a phone Michael J. Robinson (WV) These factors provide an adequate number in the body of your document Levi A. Shetler (OH) basis for predicting each driver’s ability so that FMCSA can contact you if there Rick E. Smith (IL) to continue to drive safely in interstate are questions regarding your Juan E. Sotero (FL) commerce. Therefore, FMCSA submission. Fred L. Stotts (OK) concludes that extending the exemption To submit your comment online, go to Randall K. Tyler (AL) for each renewal applicant for a period http://www.regulations.gov and in the of two years is likely to achieve a level Steven R. Wetlesen (AL) search box insert the docket numbers of safety equal to that existing without FMCSA–2001–9258; FMCSA–2011– The exemptions are extended subject the exemption. 26690 and click the search button. to the following conditions: (1) That Request for Comments When the new screen appears, click on each individual has a physical the blue ‘‘Comment Now!’’ button on examination every year (a) by an FMCSA will review comments the right hand side of the page. On the ophthalmologist or optometrist who received at any time concerning a new page, enter information required attests that the vision in the better eye particular driver’s safety record and including the specific section of this continues to meet the requirements in determine if the continuation of the document to which each comment 49 CFR 391.41(b)(10), and (b) by a exemption is consistent with the applies, and provide a reason for each medical examiner who attests that the requirements at 49 U.S.C. 31136(e) and suggestion or recommendation. If you individual is otherwise physically 31315. However, FMCSA requests that submit your comments by mail or hand qualified under 49 CFR 391.41; (2) that interested parties with specific data delivery, submit them in an unbound each individual provides a copy of the concerning the safety records of these format, no larger than 81⁄2 by 11 inches, ophthalmologist’s or optometrist’s drivers submit comments by November suitable for copying and electronic report to the medical examiner at the 29, 2013. filing. If you submit comments by mail time of the annual medical examination; FMCSA believes that the and would like to know that they and (3) that each individual provide a requirements for a renewal of an reached the facility, please enclose a copy of the annual medical certification exemption under 49 U.S.C. 31136(e) and stamped, self-addressed postcard or to the employer for retention in the 31315 can be satisfied by initially envelope. driver’s qualification file and retains a granting the renewal and then We will consider all comments and copy of the certification on his/her requesting and evaluating, if needed, material received during the comment person while driving for presentation to subsequent comments submitted by period and may change this proposed a duly authorized Federal, State, or local interested parties. As indicated above, rule based on your comments. FMCSA enforcement official. Each exemption the Agency previously published may issue a final rule at any time after will be valid for two years unless notices of final disposition announcing the close of the comment period. rescinded earlier by FMCSA. The its decision to exempt these 13 exemption will be rescinded if: (1) The individuals from the vision requirement Viewing Comments and Documents person fails to comply with the terms in 49 CFR 391.41(b)(10). The final To view comments, as well as any and conditions of the exemption; (2) the decision to grant an exemption to each documents mentioned in this preamble, exemption has resulted in a lower level of these individuals was made on the To submit your comment online, go to of safety than was maintained before it merits of each case and made only after http://www.regulations.gov and in the was granted; or (3) continuation of the careful consideration of the comments search box insert the docket number exemption would not be consistent with received to its notices of applications. FMCSA–2001–9258; FMCSA–2011– the goals and objectives of 49 U.S.C. The notices of applications stated in 26690 and click ‘‘Search.’’ Next, click 31136(e) and 31315. detail the qualifications, experience, ‘‘Open Docket Folder’’ and you will find

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all documents and comments related to www.regulations.gov at any time or requiring the assistance of another the proposed rulemaking. Room W12–140 on the ground level of person, or resulting in impaired Issued on: October 24, 2013. the West Building, 1200 New Jersey cognitive function that occurred without Avenue SE., Washington, DC, between 9 warning in the past 12 months and no Larry W. Minor, a.m. and 5 p.m., Monday through recurrent (2 or more) severe Associate Administrator for Policy. Friday, except Federal holidays. The hypoglycemic episodes in the last 5 [FR Doc. 2013–25795 Filed 10–29–13; 8:45 am] Federal Docket Management System years. Her endocrinologist certifies that BILLING CODE 4910–EX–P (FDMS) is available 24 hours each day, Ms. Cameron understands diabetes 365 days each year. If you want management and monitoring, has stable acknowledgment that we received your control of her diabetes using insulin, DEPARTMENT OF TRANSPORTATION comments, please include a self- and is able to drive a CMV safely. Ms. Federal Motor Carrier Safety addressed, stamped envelope or Cameron meets the vision requirements Administration postcard or print the acknowledgement of 49 CFR 391.41(b)(10). Her optometrist page that appears after submitting examined her in 2013 and certified that [Docket No. FMCSA–2013–0190] comments on-line. she does not have diabetic retinopathy. Privacy Act: Anyone may search the She holds a Class B CDL from Indiana. Qualification of Drivers; Exemption electronic form of all comments Jarrid S. Childress Applications; Diabetes Mellitus received into any of our dockets by the Mr. Childress, 32, has had ITDM since AGENCY: Federal Motor Carrier Safety name of the individual submitting the 1995. His endocrinologist examined him Administration (FMCSA). comment (or of the person signing the comment, if submitted on behalf of an in 2013 and certified that he has had no ACTION: Notice of applications for severe hypoglycemic reactions resulting exemption; request for comments. association, business, labor union, etc.). You may review DOT’s Privacy Act in loss of consciousness, requiring the SUMMARY: FMCSA announces receipt of Statement for the Federal Docket assistance of another person, or applications from 25 individuals for Management System (FDMS) published resulting in impaired cognitive function exemptions from the prohibition against in the Federal Register on January 17, that occurred without warning in the persons with insulin-treated diabetes 2008 (73 FR 3316). past 12 months and no recurrent (2 or mellitus (ITDM) operating commercial FOR FURTHER INFORMATION CONTACT: more) severe hypoglycemic episodes in motor vehicles (CMVs) in interstate Elaine M. Papp, Chief, Medical the last 5 years. His endocrinologist commerce. If granted, the exemptions Programs Division, (202) 366–4001, certifies that Mr. Childress understands would enable these individuals with [email protected], FMCSA, diabetes management and monitoring, ITDM to operate CMVs in interstate Department of Transportation, 1200 has stable control of his diabetes using commerce. New Jersey Avenue SE., Room W64– insulin, and is able to drive a CMV 224, Washington, DC 20590–0001. safely. Mr. Childress meets the DATES: Comments must be received on requirements of the vision standard at or before November 29, 2013. Office hours are from 8:30 a.m. to 5 p.m., Monday through Friday, except 49 CFR 391.41(b)(10). His optometrist ADDRESSES: You may submit comments Federal holidays. examined him in 2013 and certified that bearing the Federal Docket Management he does not have diabetic retinopathy. SUPPLEMENTARY INFORMATION: System (FDMS) Docket No. FMCSA– He holds a Class D operator’s license 2013–0190 using any of the following Background from Kentucky. methods: Under 49 U.S.C. 31136(e) and 31315, • Federal eRulemaking Portal: Go to James M. Costello FMCSA may grant an exemption from http://www.regulations.gov. Follow the Mr. Costello, 35, has had ITDM since the Federal Motor Carrier Safety on-line instructions for submitting 2013. His endocrinologist examined him Regulations for a 2-year period if it finds comments. in 2013 and certified that he has had no ‘‘such exemption would likely achieve a • Mail: Docket Management Facility; severe hypoglycemic reactions resulting level of safety that is equivalent to or U.S. Department of Transportation, 1200 in loss of consciousness, requiring the greater than the level that would be New Jersey Avenue SE., West Building assistance of another person, or achieved absent such exemption.’’ The Ground Floor, Room W12–140, resulting in impaired cognitive function statute also allows the Agency to renew Washington, DC 20590–0001. that occurred without warning in the exemptions at the end of the 2-year • Hand Delivery: West Building past 12 months and no recurrent (2 or period. The 25 individuals listed in this Ground Floor, Room W12–140, 1200 more) severe hypoglycemic episodes in notice have recently requested such an New Jersey Avenue SE., Washington, the last 5 years. His endocrinologist exemption from the diabetes prohibition DC, between 9a.m. and 5 p.m., Monday certifies that Mr. Costello understands in 49 CFR 391.41(b)(3), which applies to through Friday, except Federal diabetes management and monitoring, drivers of CMVs in interstate commerce. Holidays. has stable control of his diabetes using Accordingly, the Agency will evaluate • Fax: 1–202–493–2251. insulin, and is able to drive a CMV the qualifications of each applicant to Instructions: Each submission must safely. Mr. Costello meets the determine whether granting the include the Agency name and the requirements of the vision standard at exemption will achieve the required docket numbers for this notice. Note 49 CFR 391.41(b)(10). His optometrist level of safety mandated by statute. that all comments received will be examined him in 2013 and certified that posted without change to http:// Qualifications of Applicants he does not have diabetic retinopathy. www.regulations.gov, including any He holds an operator’s license from Phyllis J. Cameron personal information provided. Please Indiana. see the Privacy Act heading below for Ms. Cameron, 67, has had ITDM since further information. 2008. Her endocrinologist examined her Gary L. Crawford Docket: For access to the docket to in 2013 and certified that she has had Mr. Crawford, 54, has had ITDM since read background documents or no severe hypoglycemic reactions 2013. His endocrinologist examined him comments, go to http:// resulting in loss of consciousness, in 2013 and certified that he has had no

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severe hypoglycemic reactions resulting in 2013 and certified that he has had no Kenneth G. Mahan, Jr. in loss of consciousness, requiring the severe hypoglycemic reactions resulting Mr. Mahan, 69, has had ITDM since assistance of another person, or in loss of consciousness, requiring the 2002. His endocrinologist examined him resulting in impaired cognitive function assistance of another person, or in 2013 and certified that he has had no that occurred without warning in the resulting in impaired cognitive function severe hypoglycemic reactions resulting past 12 months and no recurrent (2 or that occurred without warning in the in loss of consciousness, requiring the more) severe hypoglycemic episodes in past 12 months and no recurrent (2 or assistance of another person, or the last 5 years. His endocrinologist more) severe hypoglycemic episodes in resulting in impaired cognitive function certifies that Mr. Crawford understands the last 5 years. His endocrinologist that occurred without warning in the diabetes management and monitoring, certifies that Mr. Hunter understands past 12 months and no recurrent (2 or has stable control of his diabetes using diabetes management and monitoring, more) severe hypoglycemic episodes in insulin, and is able to drive a CMV has stable control of his diabetes using the last 5 years. His endocrinologist safely. Mr. Crawford meets the insulin, and is able to drive a CMV certifies that Mr. Mahan understands requirements of the vision standard at safely. Mr. Hunter meets the diabetes management and monitoring, 49 CFR 391.41(b)(10). His optometrist requirements of the vision standard at has stable control of his diabetes using examined him in 2013 and certified that 49 CFR 391.41(b)(10). His optometrist insulin, and is able to drive a CMV he does not have diabetic retinopathy. examined him in 2013 and certified that He holds a Class A CDL from Ohio. safely. Mr. Mahan meets the vision he does not have diabetic retinopathy. requirements of 49 CFR 391.41(b)(10). Roger D. Droog He holds an operator’s license from His ophthalmologist examined him in Mr. Droog, 67, has had ITDM since Virginia. 2013 and certified that he does not have 2009. His endocrinologist examined him Michael A. Kollos diabetic retinopathy. He holds a Class D in 2013 and certified that he has had no Operator’s license from Alabama. severe hypoglycemic reactions resulting Mr. Kollos, 38, has had ITDM since Jason L. Martin in loss of consciousness, requiring the 1987. His endocrinologist examined him assistance of another person, or in 2013 and certified that he has had no Mr. Martin, 31, has had ITDM since resulting in impaired cognitive function severe hypoglycemic reactions resulting 2008. His endocrinologist examined him that occurred without warning in the in loss of consciousness, requiring the in 2013 and certified that he has had no past 12 months and no recurrent (2 or assistance of another person, or severe hypoglycemic reactions resulting more) severe hypoglycemic episodes in resulting in impaired cognitive function in loss of consciousness, requiring the the last 5 years. His endocrinologist that occurred without warning in the assistance of another person, or certifies that Mr. Droog understands past 12 months and no recurrent (2 or resulting in impaired cognitive function diabetes management and monitoring, more) severe hypoglycemic episodes in that occurred without warning in the has stable control of his diabetes using the last 5 years. His endocrinologist past 12 months and no recurrent (2 or insulin, and is able to drive a CMV certifies that Mr. Kollos understands more) severe hypoglycemic episodes in safely. Mr. Droog meets the diabetes management and monitoring, the last 5 years. His endocrinologist requirements of the vision standard at has stable control of his diabetes using certifies that Mr. Martin understands 49 CFR 391.41(b)(10). His optometrist insulin, and is able to drive a CMV diabetes management and monitoring, examined him in 2013 and certified that safely. Mr. Kollos meets the vision has stable control of his diabetes using he does not have diabetic retinopathy. requirements of 49 CFR 391.41(b)(10). insulin, and is able to drive a CMV He holds a Class A CDL from Iowa. His optometrist examined him in 2013 safely. Mr. Martin meets the requirements of the vision standard at Clair H. Gilmore and certified that he does not have diabetic retinopathy. He holds a Class B 49 CFR 391.41(b)(10). His optometrist Mr. Gilmore, 67, has had ITDM since CDL from Minnesota. examined him in 2013 and certified that 2004. His endocrinologist examined him he does not have diabetic retinopathy. in 2013 and certified that he has had no Daniel R. Lindahl He holds a Class A CDL from severe hypoglycemic reactions resulting Pennsylvania. Mr. Lindahl, 28, has had ITDM since in loss of consciousness, requiring the James F. McSweeney assistance of another person, or 1992. His endocrinologist examined him resulting in impaired cognitive function in 2013 and certified that he has had no Mr. McSweeney, 65, has had ITDM that occurred without warning in the severe hypoglycemic reactions resulting since 2009. His endocrinologist past 12 months and no recurrent (2 or in loss of consciousness, requiring the examined him in 2013 and certified that more) severe hypoglycemic episodes in assistance of another person, or he has had no severe hypoglycemic the last 5 years. His endocrinologist resulting in impaired cognitive function reactions resulting in loss of certifies that Mr. Gilmore understands that occurred without warning in the consciousness, requiring the assistance diabetes management and monitoring, past 12 months and no recurrent (2 or of another person, or resulting in has stable control of his diabetes using more) severe hypoglycemic episodes in impaired cognitive function that insulin, and is able to drive a CMV the last 5 years. His endocrinologist occurred without warning in the past 12 safely. Mr. Gilmore meets the certifies that Mr. Lindahl understands months and no recurrent (2 or more) requirements of the vision standard at diabetes management and monitoring, severe hypoglycemic episodes in the 49 CFR 391.41(b)(10). His has stable control of his diabetes using last 5 years. His endocrinologist certifies ophthalmologist examined him in 2013 insulin, and is able to drive a CMV that Mr. McSweeney understands and certified that he has stable non- safely. Mr. Lindahl meets the vision diabetes management and monitoring, proliferative diabetic retinopathy. He requirements of 49 CFR 391.41(b)(10). has stable control of his diabetes using holds a Class A CDL from Washington. His ophthalmologist examined him in insulin, and is able to drive a CMV 2013 and certified that he has stable safely. Mr. McSweeney meets the vision Reuben L. Hunter, Jr. nonproliferative diabetic retinopathy. requirements of 49 CFR 391.41(b)(10). Mr. Hunter, 70, has had ITDM since He holds a Class D operator’s license His ophthalmologist examined him in 2010. His endocrinologist examined him from Wisconsin. 2013 and certified that he has stable,

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non-proliferative diabetic retinopathy. examined him in 2013 and certified that vision standard at 49 CFR 391.41(b)(10). He holds an Operator’s license from he does not have diabetic retinopathy. His optometrist examined him in 2013 New Hampshire. He holds a Class B CDL from Minnesota. and certified that he does not have diabetic retinopathy. He holds a Class D Eric W. Miller William J. Rodgers operator’s license from New Jersey. Mr. Miller, 51 has had ITDM since Mr. Rodgers, 51, has had ITDM since 2013. His endocrinologist examined him 2013. His endocrinologist examined him Daniel B. Shaw in 2013 and certified that he has had no in 2013 and certified that he has had no Mr. Shaw, 48 has had ITDM since severe hypoglycemic reactions resulting severe hypoglycemic reactions resulting 1990. His endocrinologist examined him in loss of consciousness, requiring the in loss of consciousness, requiring the in 2013 and certified that he has had no assistance of another person, or assistance of another person, or severe hypoglycemic reactions resulting resulting in impaired cognitive function resulting in impaired cognitive function in loss of consciousness, requiring the that occurred without warning in the that occurred without warning in the assistance of another person, or past 12 months and no recurrent (2 or past 12 months and no recurrent (2 or resulting in impaired cognitive function more) severe hypoglycemic episodes in more) severe hypoglycemic episodes in that occurred without warning in the the last 5 years. His endocrinologist the last 5 years. His endocrinologist past 12 months and no recurrent (2 or certifies that Mr. Miller understands certifies that Mr. Rodgers understands more) severe hypoglycemic episodes in diabetes management and monitoring, diabetes management and monitoring, the last 5 years. His endocrinologist has stable control of his diabetes using has stable control of his diabetes using certifies that Mr. Shaw understands insulin, and is able to drive a CMV insulin, and is able to drive a CMV diabetes management and monitoring, safely. Mr. Miller meets the vision safely. Mr. Rodgers meets the has stable control of his diabetes using requirements of 49 CFR 391.41(b)(10). requirements of the vision standard at insulin, and is able to drive a CMV His optometrist examined him in 2013 49 CFR 391.41(b)(10). His optometrist safely. Mr. Shaw meets the vision and certified that he does not have examined him in 2013 and certified that requirements of 49 CFR 391.41(b)(10). diabetic retinopathy. He holds a Class A he does not have diabetic retinopathy. His optometrist examined him in 2013 CDL from Indiana. He holds a Class A CDL from and certified that he does not have Pennsylvania. diabetic retinopathy. He holds a Class E Thomas E. Orms operator’s license from Florida. Mr. Orms, 56, has had ITDM since Mark A. Rosenau 2000. His endocrinologist examined him Mr. Rosenau, 46 has had ITDM since Christopher A. Sosa in 2013 and certified that he has had no 2013. His endocrinologist examined him Mr. Sosa, 43, has had ITDM since severe hypoglycemic reactions resulting in 2013 and certified that he has had no 2012. His endocrinologist examined him in loss of consciousness, requiring the severe hypoglycemic reactions resulting in 2013 and certified that he has had no assistance of another person, or in loss of consciousness, requiring the severe hypoglycemic reactions resulting resulting in impaired cognitive function assistance of another person, or in loss of consciousness, requiring the that occurred without warning in the resulting in impaired cognitive function assistance of another person, or past 12 months and no recurrent (2 or that occurred without warning in the resulting in impaired cognitive function more) severe hypoglycemic episodes in past 12 months and no recurrent (2 or that occurred without warning in the the last 5 years. His endocrinologist more) severe hypoglycemic episodes in past 12 months and no recurrent (2 or certifies that Mr. Orms understands the last 5 years. His endocrinologist more) severe hypoglycemic episodes in diabetes management and monitoring, certifies that Mr. Rosenau understands the last 5 years. His endocrinologist has stable control of his diabetes using diabetes management and monitoring, certifies that Mr. Sosa understands insulin, and is able to drive a CMV has stable control of his diabetes using diabetes management and monitoring, safely. Mr. Orms meets the requirements insulin, and is able to drive a CMV has stable control of his diabetes using of the vision standard at 49 CFR safely. Mr. Rosenau meets the vision insulin, and is able to drive a CMV 391.41(b)(10). His optometrist examined requirements of 49 CFR 391.41(b)(10). safely. Mr. Sosa meets the vision him in 2013 and certified that he does His optometrist examined him in 2013 requirements of 49 CFR 391.41(b)(10). not have diabetic retinopathy. He holds and certified that he does not have His optometrist examined him in 2013 a Class B CDL from Alabama. diabetic retinopathy. He holds a Class A and certified that he does not have CDL from Minnesota. diabetic retinopathy. He holds a Class A Michael D. Pederson CDL from Maryland. Mr. Pederson, 38, has had ITDM since George M. Sapirstein 1991. His endocrinologist examined him Mr. Sapirstein, 59, has had ITDM John C. Thomas in 2013 and certified that he has had no since 2000. His endocrinologist Mr. Thomas, 63, has had ITDM since severe hypoglycemic reactions resulting examined him in 2013 and certified that 2012. His endocrinologist examined him in loss of consciousness, requiring the he has had no severe hypoglycemic in 2013 and certified that he has had no assistance of another person, or reactions resulting in loss of severe hypoglycemic reactions resulting resulting in impaired cognitive function consciousness, requiring the assistance in loss of consciousness, requiring the that occurred without warning in the of another person, or resulting in assistance of another person, or past 12 months and no recurrent (2 or impaired cognitive function that resulting in impaired cognitive function more) severe hypoglycemic episodes in occurred without warning in the past 12 that occurred without warning in the the last 5 years. His endocrinologist months and no recurrent (2 or more) past 12 months and no recurrent (2 or certifies that Mr. Pederson understands severe hypoglycemic episodes in the more) severe hypoglycemic episodes in diabetes management and monitoring, last 5 years. His endocrinologist certifies the last 5 years. His endocrinologist has stable control of his diabetes using that Mr. Sapirstein understands diabetes certifies that Mr. Thomas understands insulin, and is able to drive a CMV management and monitoring, has stable diabetes management and monitoring, safely. Mr. Pederson meets the control of his diabetes using insulin, has stable control of his diabetes using requirements of the vision standard at and is able to drive a CMV safely. Mr. insulin, and is able to drive a CMV 49 CFR 391.41(b)(10). His optometrist Sapirstein meets the requirements of the safely. Mr. Thomas meets the vision

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requirements of 49 CFR 391.41(b)(10). safely. Mr. Wilk meets the requirements driving experience and fulfilled the His optometrist examined him in 2013 of the vision standard at 49 CFR requirements of section 4129 while and certified that he does not have 391.41(b)(10). His optometrist examined continuing to ensure that operation of diabetic retinopathy. He holds a Class B him in 2013 and certified that he does CMVs by drivers with ITDM will CDL from Indiana. not have diabetic retinopathy. He holds achieve the requisite level of safety a Class C CDL from Ohio. required of all exemptions granted Richard Wasko under 49 U.S.C. 31136 (e). Mr. Wasko, 55, has had ITDM since Thomas A. Young Section 4129(d) also directed FMCSA 1993. His endocrinologist examined him Mr. Young, 58, has had ITDM since to ensure that drivers of CMVs with in 2013 and certified that he has had no 2005. His endocrinologist examined him ITDM are not held to a higher standard severe hypoglycemic reactions resulting in 2013 and certified that he has had no than other drivers, with the exception of in loss of consciousness, requiring the severe hypoglycemic reactions resulting limited operating, monitoring and assistance of another person, or in loss of consciousness, requiring the medical requirements that are deemed resulting in impaired cognitive function assistance of another person, or medically necessary. that occurred without warning in the resulting in impaired cognitive function The FMCSA concluded that all of the past 12 months and no recurrent (2 or that occurred without warning in the operating, monitoring and medical more) severe hypoglycemic episodes in past 12 months and no recurrent (2 or requirements set out in the September 3, the last 5 years. His endocrinologist more) severe hypoglycemic episodes in 2003 notice, except as modified, were in certifies that Mr. Wasko understands the last 5 years. His endocrinologist compliance with section 4129(d). diabetes management and monitoring, certifies that Mr. Young understands Therefore, all of the requirements set has stable control of his diabetes using diabetes management and monitoring, out in the September 3, 2003 notice, insulin, and is able to drive a CMV as stable control of his diabetes using except as modified by the notice in the safely. Mr. Wasko meets the vision insulin, and is able to drive a CMV Federal Register on November 8, 2005 requirements of 49 CFR 391.41(b)(10). safely. Mr. Young meets the vision (70 FR 67777), remain in effect. His optometrist examined him in 2013 requirements of 49 CFR 391.41(b)(10). and certified that he does not have His ophthalmologist examined him in Submitting Comments diabetic retinopathy. He holds a Class E 2013 and certified that he does not have You may submit your comments and operator’s license from Florida. diabetic retinopathy. He holds a Class B material online or by fax, mail, or hand CDL from Texas. delivery, but please use only one of Douglas E. Wilhoit these means. FMCSA recommends that Request for Comments Mr. Wilhoit, 49, has had ITDM since you include your name and a mailing 2012. His endocrinologist examined him In accordance with 49 U.S.C. 31136(e) address, an email address, or a phone in 2013 and certified that he has had no and 31315, FMCSA requests public number in the body of your document severe hypoglycemic reactions resulting comment from all interested persons on so that FMCSA can contact you if there in loss of consciousness, requiring the the exemption petitions described in are questions regarding your assistance of another person, or this notice. We will consider all submission. resulting in impaired cognitive function comments received before the close of To submit your comment online, go to that occurred without warning in the business on the closing date indicated http://www.regulations.gov and in the past 12 months and no recurrent (2 or in the date section of the notice. search box insert the docket number more) severe hypoglycemic episodes in FMCSA notes that section 4129 of the FMCSA–2013–0190 and click the search the last 5 years. His endocrinologist Safe, Accountable, Flexible and button. When the new screen appears, certifies that Mr. Wilhoit understands Efficient Transportation Equity Act: A click on the blue ‘‘Comment Now!’’ diabetes management and monitoring, Legacy for Users requires the Secretary button on the right hand side of the has stable control of his diabetes using to revise its diabetes exemption program page. On the new page, enter insulin, and is able to drive a CMV established on September 3, 2003 (68 FR information required including the safely. Mr. Wilhoit meets the 52441) 1. The revision must provide for specific section of this document to requirements of the vision standard at individual assessment of drivers with which each comment applies, and 49 CFR 391.41(b)(10). His diabetes mellitus, and be consistent provide a reason for each suggestion or ophthalmologist examined him in 2013 with the criteria described in section recommendation. If you submit your and certified that he does not have 4018 of the Transportation Equity Act comments by mail or hand delivery, diabetic retinopathy. He holds a Class A for the 21st Century (49 U.S.C. 31305). submit them in an unbound format, no Section 4129 requires: (1) Elimination CDL from Pennsylvania. larger than 81⁄2 by 11 inches, suitable for of the requirement for 3 years of Richard A. Wilk copying and electronic filing. If you experience operating CMVs while being submit comments by mail and would Mr. Wilk, 54, has had ITDM since treated with insulin; and (2) like to know that they reached the 2011. His endocrinologist examined him establishment of a specified minimum facility, please enclose a stamped, self- in 2013 and certified that he has had no period of insulin use to demonstrate addressed postcard or envelope. severe hypoglycemic reactions resulting stable control of diabetes before being We will consider all comments and in loss of consciousness, requiring the allowed to operate a CMV. material received during the comment assistance of another person, or In response to section 4129, FMCSA period and may change this proposed resulting in impaired cognitive function made immediate revisions to the rule based on your comments. FMCSA that occurred without warning in the diabetes exemption program established may issue a final rule at any time after past 12 months and no recurrent (2 or by the September 3, 2003 notice. the close of the comment period. more) severe hypoglycemic episodes in FMCSA discontinued use of the 3-year the last 5 years. His endocrinologist Viewing Comments and Documents certifies that Mr. Wilk understands 1 Section 4129(a) refers to the 2003 notice as a To view comments, as well as any ‘‘final rule.’’ However, the 2003 notice did not issue diabetes management and monitoring, a ‘‘final rule’’ but did establish the procedures and documents mentioned in this preamble, has stable control of his diabetes using standards for issuing exemptions for drivers with To submit your comment online, go to insulin, and is able to drive a CMV ITDM. http://www.regulations.gov and in the

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search box insert the docket number annually, or 420 over the three year detailing the specific nature and FMCSA–2013–0190 and click ‘‘Search.’’ period under a renewed clearance. methodology of planned focus group Next, click ‘‘Open Docket Folder’’ and Likely respondents are licensed drivers sessions prior to any collection activity you will find all documents and 18 years of age and older who have not covered under this generic clearance. comments related to the proposed participated in a previous focus group ADDRESSES: Send comments regarding rulemaking. session. In some cases, stakeholders the burden estimate, including Issued on: October 24, 2013. such as law enforcement and health suggestions for reducing the burden, to Larry W. Minor, officials may participate in the focus the Office of Information and Regulatory groups. Each respondent would Associate Administrator for Policy. Affairs, Office of Management and participate in one focus group. [FR Doc. 2013–25798 Filed 10–29–13; 8:45 am] Budget, 725 17th Street NW., Estimated Number of Respondents: Washington, DC 20503, Attention: Desk BILLING CODE 4910–EX–P There will be an average of 10 Officer for Department of participants per focus group, for an Transportation, National Highway annual total of 1,400 respondents and a DEPARTMENT OF TRANSPORTATION Traffic Safety Administration, or by three year total of 4,200 respondents. email at [email protected], Estimated Time per Response: Each National Highway Traffic Safety or fax: 202–395–5806. Administration respondent would participate in a single Comments Are Invited on: Whether focus group that would average 80 the proposed collection of information Information Collection Activities: minutes in duration. Participants will be is necessary for the proper performance recruited by intercept or telephone Submission for the Office of of the functions of the Department of using a brief screening questionnaire Management and Budget (OMB) Transportation, including whether the estimated to take no more than another Review; Request for Comment information will have practical utility; 10 minutes, for a total of 90 minutes. AGENCY: National Highway Traffic Total Estimated Annual Burden the accuracy of the Department’s Safety Administration (NHTSA), DOT. Hours: The total estimated annual estimate of the burden of the proposed information collection; ways to enhance ACTION: Notice of the OMB review of burden would be 140 groups × 10 information collection and solicitation participants × 90 minutes = 2,100 hours. the quality, utility and clarity of the of public comment. Total estimated burden under the three information to be collected; and ways to year period covered by the clearance minimize the burden of the collection of SUMMARY: In compliance with the would be 6,300 hours. information on respondents, including Paperwork Reduction Act of 1995 (44 Frequency of Collection: Focus groups the use of automated collection U.S.C. chapter 35), this notice will be conducted on an as-needed techniques or other forms of information announces that the Information (periodic) basis during each of the three technology. A comment to OMB is most Collection Request (ICR) abstracted years covered by the clearance. effective if OMB receives it within 30 below will be submitted to the Office of Abstract: The National Highway days of publication of this notice. Management and Budget (OMB) for Traffic Safety Administration (NHTSA) Authority: 44 U.S.C. 3506(c)(2)(A). review. The ICR describes the nature of proposes to renew its generic clearance the information collection and its Issued in Washington, DC, on October 25, to conduct focus groups. NHTSA 2013. expected burden. A Federal Register anticipates the need to periodically Jeffrey Michael, Notice with a 60-day comment period conduct focus group sessions to refine soliciting public comments on the its efforts to reduce traffic injuries and Associate Administrator, Research and Program Development. following information collection was fatalities. Session participation would published on August 5, 2013 (Federal be voluntary and the focus group [FR Doc. 2013–25756 Filed 10–29–13; 8:45 am] Register/Vol. 78, No. 150/pp. 47488– participants would receive BILLING CODE 4910–59–P 47489). remuneration for their involvement. The respondents would not incur any DATES: Submit comments to the Office DEPARTMENT OF TRANSPORTATION of Management and Budget (OMB) on or reporting cost from the information before November 29, 2013. collection. The respondents also would National Highway Traffic Safety FOR FURTHER INFORMATION CONTACT: not incur any record keeping burden or Administration Alan Block at the National Highway record keeping cost from the Traffic Safety Administration, Office of information collection. Focus group [U.S. DOT Docket No. NHTSA–2013–0113] Behavioral Safety Research (NTI–131), topics will include: Strategic messaging (e.g., slogans or advertisement concepts Reports, Forms, and Record Keeping W46–499, Department of Requirements Transportation, 1200 New Jersey concerning seat belt use, impaired Avenue SE., Washington, DC 20590. Mr. driving, driver distraction, tire pressure AGENCY: National Highway Traffic Block’s phone number is 202–366–6401 monitoring), problem identification Safety Administration (NHTSA), DOT. and his email address is alan.block@ (e.g., discussions with high-risk groups ACTION: Request for public comment on dot.gov. on beliefs, attitudes, driving behaviors, proposed collection of information. or reactions to interventions and SUPPLEMENTARY INFORMATION: OMB Control Number: 2127–0667. countermeasures), and resource SUMMARY: Before a Federal agency can Type of Request: Renewal. development (e.g., testing materials collect certain information from the Title: Focus Groups for Traffic Safety designed to communicate essential public, it must receive approval from Programs, Interventions and information about traffic safety issues the Office of Management and Budget Countermeasures. such as vehicle or equipment (OMB). Under procedures established Form No.: This collection of performance rating systems). For each by the Paperwork Reduction Act of information uses no standard form. focus group project, NHTSA will submit 1995, before seeking OMB approval, Type of Review: Regular. an individual Information Collection Federal agencies must solicit public Respondents: Each year NHTSA Request (ICR) to the Office of comment on proposed collections of anticipates conducting 140 focus groups Management and Budget (OMB) information, including extensions and

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reinstatements of previously approved document. Under OMB’s regulations (at Description of the Need for the collections. 5 CFR 1320.8(d)), an agency must ask Information and Proposed Use of the This document describes the for public comment on the following: Information—NHTSA was established collection of information for which (i) Whether the proposed collection of to reduce the number of deaths, injuries, NHTSA intends to seek OMB approval. information is necessary for the proper and economic losses resulting from DATES: Comments must be received on performance of the functions of the motor vehicle crashes on the Nation’s or before December 30, 2013. agency, including whether the highways. As part of this statutory ADDRESSES: You may submit comments information will have practical utility; mandate, NHTSA is authorized to identified by DOT Docket ID Number (ii) the accuracy of the agency’s conduct research as a foundation for the NHTSA–2013–0113 using any of the estimate of the burden of the proposed development of motor vehicle standards following methods: collection of information, including the and traffic safety programs. Electronic submissions: Go to http:// validity of the methodology and As our population ages, age-related www.regulations.gov. Follow the on-line assumptions used; impairments in safe driving abilities instructions for submitting comments. (iii) how to enhance the quality, will become more prevalent. The private Mail: Docket Management Facility, utility, and clarity of the information to automobile remains by far the most M–30, U.S. Department of be collected; and often used and most preferred means of Transportation, 1200 New Jersey (iv) how to minimize the burden of meeting community mobility needs Avenue SE., West Building Ground the collection of information on those among older adults. Along with the Floor, Room W12–140, Washington, DC who are to respond, including the use increase in the number of older drivers, 20590. of appropriate automated, electronic, an increase in the driving exposure of Hand Delivery: West Building Ground mechanical, or other technological older adults is likely, both in terms of Floor, Room W12–140, 1200 New Jersey collection techniques or other forms of the frequency of their trips and the Avenue SE., Washington, DC, between 9 information technology, e.g., permitting distances they drive. In addition, due to a.m. and 5 p.m., Monday through electronic submission of responses. increased physical frailty, older Friday, except Federal holidays. In compliance with these individuals are also most likely to be Fax: 1-(202) 493–2251. requirements, NHTSA asks public seriously injured or killed in an Instructions: Each submission must comment on the following proposed automotive crash. Therefore, driver include the Agency name and the collection of information: medical review practices are likely to assume a more prominent role in the Docket number for this Notice. Note that Medical Review Guidelines and years ahead. all comments received will be posted Medical Advisory Board Practices without change to http:// Medical review guidelines and www.regulations.gov including any Type of Request—New Information practices can help evaluate drivers personal information provided. Please Collection. referred to a State motor vehicle see the Privacy Act heading below. OMB Clearance Number—None. licensing agency for reexamination due Privacy Act: Anyone is able to search Form Number—NHTSA 1228. to concerns about unsafe driving Requested Expiration Date of the electronic form for all comments performance possibly resulting from Approval—3 years from date of received into any of our dockets by the suspected age or medical condition approval. name of the individual submitting the related impairments in visual, physical, Summary of the Collection of comments (or signing the comment, if or mental abilities. Society has an Information—The National Highway submitted on behalf of an association, interest in ensuring that these medical Traffic Safety Administration (NHTSA) business, labor union, etc.). You may review guidelines and practices are in proposes to collect information from an review DOT’s complete Privacy Act place and are effective in reducing individual in the Medical Review Statement in the Federal Register motor vehicle crashes, injury, and Department in each of the 50 State published on April 11, 2000 (65 FR death. This data collection will provide Driver Licensing Agencies and The 19477–78) or you may visit http:// NHTSA with an accurate description of District of Columbia about their State’s DocketsInfo.dot.gov. current medical review practices across driver medical review structure and the country. This is a necessary first FOR FURTHER INFORMATION CONTACT: Dr. processes. The information collected step in identifying which structures and Russell Pierce, Contracting Officer’s will be used to produce a short narrative processes work best. Technical Representative, Office of describing each State’s medical review Description of the Likely Respondents Behavioral Safety Research (NTI–132), structure and processes, plus several (Including Estimated Number, and National Highway Traffic Safety appendices with tables displaying each Proposed Frequency of Response to the Administration, 1200 New Jersey individual State’s responses to the Collection of Information)— Avenue SE., W46–472, Washington, DC questions, and totals for each response. TransAnalytics (NHTSA’s Contractor) 20590. Dr. Pierce’s phone number is Data will be collected, according to each plans to enlist the assistance of the (202) 366–5599 and his email address is respondent’s preference, via a Microsoft American Association of Motor Vehicle [email protected]. Word document distributed and Administrators (AAMVA) to identify the SUPPLEMENTARY INFORMATION: Under the collected via email or a print version most appropriate contact in each State, Paperwork Reduction Act of 1995, distributed and collected via US mail, for distribution of the survey and the before an agency submits a proposed and the responses will consist primarily narrative summary for review and collection of information to OMB for of checkbox response types and fill-in- update. approval, it must publish a document in the-blank options when non-standard Estimate of the Total Annual the Federal Register providing a 60-day checkboxes are selected. Additionally, Reporting and Record Keeping Burden comment period and otherwise consult survey respondents will be provided Resulting from the Collection of with members of the public and affected with a short narrative that describes Information—There will be agencies concerning each proposed their State’s medical review processes, approximately 70 questions on the collection of information. The OMB has and asked to review and edit/update the survey requiring checkbox responses, promulgated regulations describing narrative as necessary to ensure its and an occasional fill-in-the-blank what must be included in such a accuracy. response required when ‘‘other’’ is

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checked. We estimate the time to (transmittal letter), 49 CFR 1105.12 20423–0001) or by calling OEA at (202) complete the survey for the medical (newspaper publication), and 49 CFR 245–0305. Assistance for the hearing review contact in each State to be 2.5 1152.50(d)(1) (notice to governmental impaired is available through the hours. Additionally, we estimate 2.5 agencies) have been met. Federal Information Relay Service at hours of time for each medical review As a condition to this exemption, any (800) 877–8339. Comments on contact to review and edit the narrative employee adversely affected by the environmental and historic preservation describing their State’s medical review abandonment shall be protected under matters must be filed by November 7, structure and process. This estimate Oregon Short Line Railroad— 2013. includes the time that may be required Abandonment Portion Goshen Branch Environmental, historic preservation, to respond to telephone contacts made Between Firth & Ammon, in Bingham & public use, or trail use/rail banking by TransAnalytics if necessary, to Bonneville Counties, Idaho, 360 I.C.C. conditions will be imposed, where follow-up or clarify survey responses. 91 (1979). To address whether this appropriate, in a subsequent decision. The total estimated annual burden will condition adequately protects affected Pursuant to the provisions of 49 CFR be 255 hours (5 hours for each employees, a petition for partial 1152.29(e)(2), CCP shall file a notice of respondent, 50 States + Washington, revocation under 49 U.S.C. 10502(d) consummation with the Board to signify DC). Survey respondents will incur no must be filed. that it has exercised the authority costs from the data collection and will Provided no formal expression of granted and fully abandoned the Line. If incur no record keeping burden and no intent to file an offer of financial consummation has not been effected by record keeping cost from the assistance (OFA) has been received, this CCP’s filing of a notice of information collection. exemption will be effective on consummation by October 30, 2014, and Authority: 44 U.S.C. 3506(c)(2)(A). November 29, 2013, unless stayed there are no legal or regulatory barriers pending reconsideration.2 Petitions to to consummation, the authority to Issued on October 25, 2013. stay that do not involve environmental abandon will automatically expire. Jeffrey Michael, issues,3 formal expressions of intent to Board decisions and notices are Associate Administrator, Research and file an OFA under 49 CFR available on our Web site at Program Development. 1152.27(c)(2),4 and trail use/rail banking ‘‘www.stb.dot.gov.’’ [FR Doc. 2013–25793 Filed 10–29–13; 8:45 am] requests under 49 CFR 1152.29 must be Decided: October 24, 2013. BILLING CODE 4910–59–P filed by November 12, 2013. Petitions to By the Board, Rachel D. Campbell, reopen or requests for public use Director, Office of Proceedings. conditions under 49 CFR 1152.28 must DEPARTMENT OF TRANSPORTATION Jeffrey Herzig, be filed by November 19, 2013, with the Clearance Clerk. Surface Transportation Board Surface Transportation Board, 395 E [FR Doc. 2013–25741 Filed 10–29–13; 8:45 am] Street SW., Washington, DC 20423– BILLING CODE 4915–01–P [Docket No. AB 314 (Sub-No. 6X)] 0001. A copy of any petition filed with the Chicago Central & Pacific Railroad Board should be sent to CCP’s DEPARTMENT OF TRANSPORTATION Company—Abandonment Exemption— representative: Audrey L. Brodrick, in Linn County, Iowa Fletcher & Sippel LLC, 29 N. Wacker Surface Transportation Board Dr., Suite 920, Chicago, IL 60606. Chicago Central & Pacific Railroad [Docket No. FD 35755] Company (CCP) 1 has filed a verified If the verified notice contains false or notice of exemption under 49 CFR part misleading information, the exemption BNSF Railway Company, CBEC 1152 subpart F–Exempt Abandonments is void ab initio. Railway Inc., Iowa Interstate Railroad, to abandon an approximately 0.49-mile CCP has filed a combined Ltd., and Union Pacific Railroad line of railroad extending between environmental and historic report that Company—Joint Relocation Project milepost 230.24 and milepost 229.75 in addresses the effects, if any, of the Exemption—In Council Bluffs, Iowa Cedar Rapids, Linn County, Iowa (the abandonment on the environment and Line). The Line traverses United States historic resources. OEA issued an On September 30, 2013, BNSF Postal Service Zip Code 52302. environmental assessment (EA) on Railway Company (BNSF), CBEC CCP has certified that: (1) No local October 23, 2013. Interested persons Railway Inc. (CBEC), Iowa Interstate traffic has moved over the Line for at may obtain a copy of the EA by writing Railroad, Ltd. (IAIS), and Union Pacific least two years; (2) there is no overhead to OEA (Room 1100, Surface Railroad Company (UP) (collectively, traffic on the Line to be rerouted over Transportation Board, Washington, DC applicants) jointly filed a verified notice other lines; (3) no formal complaint of exemption under 49 CFR 1180.2(d)(5) filed by a user of rail service on the Line 2 This notice was scheduled to be published in to participate in a joint relocation (or by a state or local government entity the Federal Register during the time that the agency project in Council Bluffs, Iowa (the was closed due to a lapse in appropriations. City). acting on behalf of such user) regarding Because publication of this notice has been delayed, cessation of service over the Line either the effective date of the exemption will also be The purpose of the joint relocation is pending with the Surface delayed to provide adequate notice to the public. project is to facilitate the reconstruction Transportation Board (Board) or with 3 The Board will grant a stay if an informed of Interstates 80 and 29 in Council decision on environmental issues (whether raised Bluffs. The Council Bluffs Interstate any U.S. District Court or has been by a party or by the Board’s Office of Environmental decided in favor of complainant within Analysis (OEA) in its independent investigation) System (CBIS) Improvements Project is the two-year period; and (4) the cannot be made before the exemption’s effective a public works project initiated by the requirements at 49 CFR 1105.7(c) date. See Exemption of Out-of-Serv. Rail Lines, 5 Iowa Department of Transportation I.C.C. 2d 377 (1989). Any request for a stay should (IDOT) that involves the joint relocation (environmental report), 49 CFR 1105.11 be filed as soon as possible so that the Board may take appropriate action before the exemption’s project and an acquisition by IAIS of a 1 1 CCP is an indirect subsidiary of Canadian effective date. line of railroad owned by BNSF. National Railway Company (CNR) and is controlled 4 Each OFA must be accompanied by the filing by Grand Trunk Corporation, a wholly owned fee, which is currently set at $1,600. See 49 CFR 1 Iowa Interstate R.R.—Acquis. Exemption—Line subsidiary of CNR. 1002.2(f)(25). of BNSF Ry., FD 35751 (filed Aug. 7, 2013). The

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According to applicants, the following Subdivision milepost 488.85, a distance The transaction may be consummated steps will be taken to allow for the CBIS of approximately 1,500 feet. Seventh, on or after November 13, 2013, the Improvements Project to proceed. First, BNSF will grant overhead trackage effective date of the exemption.2 BNSF will close its Council Bluffs yard rights to IAIS between BNSF Bayard If the verified notice contains false or and convey the underlying land to the Subdivision milepost 482.08 and BNSF misleading information, the exemption State of Iowa. Second, BNSF will Council Bluffs Subdivision milepost is void ab initio. Petitions to revoke the abandon the following two segments of 488.6. Lastly, BNSF and IAIS will exemption under 49 U.S.C. 10502(d) its Council Bluffs Subdivision: (1) The establish new connections between the may be filed at any time. The filing of segment located between milepost two carriers at BNSF Bayard a petition to revoke will not 490.62 and milepost 491.00, a distance Subdivision milepost 482.08 and IAIS automatically stay the effectiveness of of approximately 0.38 miles; and (2) the milepost 489.30, which will enable the exemption. Petitions for stay must segment located between milepost BNSF to crossover IAIS from its Council be filed no later than November 6, 2013 491.75 and 492.65, a distance of Bluffs Subdivision to reach its Bayard (at least 7 days before the exemption approximately 0.90 miles. The first Subdivision through a dual switch becomes effective). segment will be relocated to the west of arrangement. An original and 10 copies of all Mosquito Creek. This segment is located pleadings, referring to Docket No. FD between BNSF Bayard Subdivision Applicants state that the proposed 35755, must be filed with the Surface milepost 482.08 and a point near BNSF joint relocation project will not disrupt Transportation Board, 395 E Street SW., Council Bluffs Subdivision milepost service to shippers, nor will it expand Washington, DC 20423–0001. In 488.85, a distance of approximately 1.6 service by BNSF, CBEC, or IAIS into a addition, a copy of each pleading must miles. The second segment will be new territory. According to applicants, be served on applicants’ representatives: relocated to the west of Highway 192 in there are no shippers located on the rail Karl Morell, Ball Janik LLP, 655 downtown Council Bluffs. This segment segments BNSF and CBEC are Fifteenth Street NW., Suite 225, is located between BNSF milepost abandoning. Washington, DC 20005 (BNSF’s 492.65 and the connection to the IAIS The Board will exercise jurisdiction representative); Benjamin M. Clark, main line at IAIS milepost 489.3, a over the abandonment, construction, or Sullivan & Ward, P.C., 6601 Westown distance of approximately 0.3 miles. sale components of a relocation project, Parkway, Suite 200, West Des Moines, Third, CBEC will abandon its main line and require separate approval or Iowa 50266 (CBEC’s representative); between milepost 3.90 and milepost exemption, only where the removal of Thomas J. Litwiler, Fletcher & Sippel 6.47, a distance of approximately 2.8 track affects service to shippers or the LLC, 29 North Wacker Drive, Suite 920, miles. That portion of CBEC’s main line construction of new track or transfer of Chicago, IL 60606 (IAIS’s will be relocated to the west bank of existing track involves expansion into representative); and Jeremy M. Berman, Mosquito Creek between milepost 3.90, new territory. See City of Detroit v. Union Pacific Railroad Company, 1400 approximately 1,500 feet to the Douglas Street STOP 1580, Omaha, NE., northwest of IA–92/US–275 and the Canadian Nat’l Ry., 9 I.C.C.2d 1208 (1993), aff’d sub nom. Detroit/Wayne 68179 (UP’s representative). connection with the lead track to Board decisions and notices are MidAmerican Energy Company’s Walter Cnty. Port Authority v. ICC, 59 F.3d 1314 (D.C. Cir. 1995); Flats Indus. R.R. available on our Web site at Scott, Jr. Energy Center (MidAmerican), ‘‘www.stb.dot.gov.’’ a distance of approximately 1.5 miles. & Norfolk S. Ry.—Joint Relocation Fourth, UP’s trackage rights on CBEC’s Project Exemption—in Cleveland, Ohio, Decided: October 25, 2013. line to be abandoned will be FD 34108 (STB served Nov. 15, 2001). By the Board, Rachel D. Campbell, discontinued and relocated to CBEC’s Line relocation projects may embrace Director, Office of Proceedings. newly constructed main line. Fifth, trackage rights transactions such as Jeffrey Herzig, BNSF and CBEC will establish a those involved here. See Detroit, Toledo Clearance Clerk. crossover connection between their & Ironton R.R.—Trackage Rights— [FR Doc. 2013–25740 Filed 10–29–13; 8:45 am] newly constructed and parallel main Between Washington Court House & BILLING CODE 4915–01–P lines on the west side of Mosquito Creek Greggs, Ohio—Exemption, 363 I.C.C. at a point approximately 900 feet south 878 (1981). Under these standards, the of I–29. CBEC will grant overhead incidental abandonment, construction, trackage rights to BNSF from that and trackage rights components of this DEPARTMENT OF THE TREASURY connection and from BNSF Council relocation project require no separate Bluffs Subdivision milepost 488.6 to the approval or exemption because the Submission for OMB Review; connection with the lead track to relocation project will not disrupt Comment Request MidAmerican, a distance of service to shippers, expand BNSF’s, October 24, 2013. approximately 0.6 miles and 0.5 miles, CBEC’s, or IAIS’s service into a new The Department of the Treasury will respectively. Sixth, BNSF and CBEC territory, or alter the existing submit the following information also will establish an opposite-direction competitive situation, and thus, this collection request to the Office of crossover connection between their joint relocation project qualifies for the Management and Budget (OMB) for newly constructed and parallel main class exemption at 49 CFR 1180.2(d)(5). lines on the west side of Mosquito Creek review and clearance in accordance As a condition to this exemption, any at a point approximately 1,400 feet with the Paperwork Reduction Act of employees affected by the trackage south of I–29. BNSF will grant overhead 1995, Public Law 104–13, on or after the rights will be protected by the trackage rights to CBEC from that date of publication of this notice. conditions imposed in Norfolk and connection to a new connection with Western Railway—Trackage Rights— 2 CBEC’s relocated SIRE industrial lead This notice was scheduled to be published in Burlington Northern, Inc., 354 I.C.C. 605 the Federal Register during the time that the agency track at BNSF Council Bluffs (1978), as modified in Mendocino Coast was closed due to a lapse in appropriations. Railway—Lease and Operate-California Because publication of this notice has been delayed, Board will address that petition for exemption in the effective date of the exemption will also be a subsequent decision. Western Railroad, 360 I.C.C. 653 (1980). delayed to provide adequate notice to the public.

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DATES: Comments should be received on DATES: Comments should be received on Title: TD 7925—Indian Tribal or before November 29, 2013 to be or before November 29, 2013 to be Governments Treated As States For assured of consideration. assured of consideration. Certain Purposes. Abstract: The governing body of a ADDRESSES: Send comments regarding ADDRESSES: Send comments regarding the burden estimate, or any other aspect the burden estimate, or any other aspect tribe, band, pueblo, community, village of the information collection, including of the information collection, including or group of Indians, or Alaska Natives, suggestion for reducing the burden, to suggestions for reducing the burden, to will qualify as an Indian tribal (1) Office of Information and Regulatory (1) Office of Information and Regulatory government upon a determination by Affairs, Office of Management and Affairs, Office of Management and the Internal Revenue Service that such Budget, Attention: Desk Officer for Budget, Attention: Desk Officer for governing body exercises governmental Treasury, New Executive Office Treasury, New Executive Office functions. Designation of a governing Building, Room 10235, Washington, DC Building, Room 10235, Washington, DC body as an Indian tribal government _ 20503, or email at OIRA_Submission@ 20503, or email at OIRA Submission@ will be by revenue procedure. If a OMB.EOP.GOV and (2) Treasury PRA OMB.EOP.gov and (2) Treasury PRA governing body is not currently Clearance Officer, 1750 Pennsylvania Clearance Officer, 1750 Pennsylvania designated by the applicable revenue Ave. NW., Suite 8140, Washington, DC Ave. NW., Suite 8141–D, Washington, procedure as an Indian tribal 20220, or email at [email protected]. DC 20220, or email at PRA@ government, and such governing body treasury.gov. believes that it qualifies for such FOR FURTHER INFORMATION CONTACT: designation, the governing body may FOR FURTHER INFORMATION CONTACT: Copies of the submission(s) may be apply for a ruling from the Internal Copies of the submission(s) may be obtained by calling (202) 927–5331, Revenue Service. Such governing body obtained by calling (202) 622–1295, email at [email protected], or the entire will qualify as an Indian tribal email at [email protected], or the entire information collection request may be government, for purposes of these information collection request may be found at www.reginfo.gov. regulations, only upon obtaining a found at www.reginfo.gov. Community Development Financial favorable ruling from the Internal Institutions (CDFI) Fund Internal Revenue Service (IRS) Revenue Service. OMB Number: 1545–0201. Affected Public: State, Local, and OMB Number: 1559–0027. Type of Review: Extension without Tribal Governments. Type of Review: Revision of a change of a currently approved Estimated Annual Burden Hours: 25. currently approved collection. collection. OMB Number: 1545–0954. Title: CDFI Program and NMTC Title: Request for Change in Plan/ Type of Review: Extension without Program Annual Report including CIIS. Trust Year. change of a currently approved collection. Abstract: The annual report provides Form: 5308. Title: Return for Nuclear qualitative and quantitative information Abstract: Form 5308 is used to request Decommissioning Funds and Certain on the Awardee’s compliance with its permission to change the plan or trust Related Persons. performance goals, its financial health year for a pension benefit plan. The Form: 1120–ND. and the timeline in which the CDFI information submitted is used in Abstract: A nuclear utility files Form Fund’s financial and technical determining whether IRS should grant 1120–ND to report the income and taxes assistance was used. The data collection permission for the change. of a fund set up by the public utility to will be used to collect compliance and Affected Public: Private Sector: provide cash for the dismantling of the performance data from certified CDFIs Businesses or other for-profits. Estimated Annual Burden Hours: 339. nuclear power plant. The IRS uses Form and CDEs and from NACD awardees. OMB Number: 1545–0786. 1120–ND to determine if the fund Affected Public: Private Sector: Type of Review: Extension without income taxes are correctly computed Businesses or other for-profits, Not-for- change of a currently approved and if a person related to the fund or the profit institutions. collection. nuclear utility must pay taxes on self- Estimated Annual Burden Hours: Title: TD 8110—Sanctions on Issuers dealing. 46,959. and Holders of Registration-Required Affected Public: Private Sector: Businesses or other for-profits. Dawn D. Wolfgang, Obligations Not in Registered Form. Abstract: The Internal Revenue Estimated Annual Burden Hours: Treasury PRA Clearance Officer. Service needs the information in order 3,259. [FR Doc. 2013–25632 Filed 10–29–13; 8:45 am] to ensure that purchasers of bearer BILLING CODE 4810–70–P OMB Number: 1545–1013. obligations are not U.S. persons (other Type of Review: Extension without than those permitted to hold obligations change of a currently approved under section 165(j)) and to ensure that DEPARTMENT OF THE TREASURY collection. U.S. persons holding bearer obligations Title: Return of Excise Tax on Submission for OMB Review; properly report income and gain on Undistributed Income of Real Estate Comment Request such obligations. The people reporting Investment Trusts. will be institutions holding bearer Form: 8612. October 24, 2013. obligations. Abstract: Form 8612 is used by real The Department of the Treasury will Affected Public: Private Sector: estate investment trusts to compute and submit the following information Businesses or other for-profits. pay the excise tax on undistributed collection requests to the Office of Estimated Annual Burden Hours: income imposed under section 4981. Management and Budget (OMB) for 39,742. IRS uses the information to verify that review and clearance in accordance OMB Number: 1545–0823. the correct amount of tax has been with the Paperwork Reduction Act of Type of Review: Extension without reported. 1995, Public Law 104–13, on or after the change of a currently approved Affected Public: Private Sector: date of publication of this notice. collection. Businesses or other for-profits.

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Estimated Annual Burden Hours: 196. emigrate from Canada and wish to make Affected Public: Individuals or OMB Number: 1545–1270. an election for U.S. federal income tax Households; Private Sector: Businesses Type of Review: Extension without purposes. Form 8833 is used by or other for-profits. change of a currently approved taxpayers to make the treaty-based Estimated Annual Burden Hours: collection. return position disclosure required by 1,774,375. Title: TD 8421—Gasoline Excise Tax section 6114. The form must also be (PS–120–90); TD 8609—Gasohol; used by dual-resident taxpayers to make OMB Number: 1545–1748. Compressed Natural Gas (PS–66–93). the treaty-based return position Type of Review: Extension without Abstract: TD 8609: This regulation disclosure required by Regulations change of a currently approved relates to gasohol blending and the tax section 301.7701(b)–7. collection. on compressed natural gas (CNG). The Affected Public: Private Sector: Title: REG–106917–99 (Final) sections relating to gasohol blending Businesses or other for-profits. Changes in Accounting Periods. Estimated Annual Burden Hours: affect certain blenders, enterers, Abstract: Section 1.441–2(b)(1) 25,740. refiners, and throughputters. The requires certain taxpayers to file sections relating to CMG affect persons OMB Number: 1545–1722. statements on their federal income tax that sell or buy CNG for use as a fuel Type of Review: Extension without returns to notify the Commissioner of in a motor vehicle or motorboat. TD change of a currently approved the taxpayers’ election to adopt a 52–53 8421: This regulation relates to the collection. week taxable year. Section 1.442–1(b)(4) federal excise tax on gasoline. It affects Title: Extraterritorial Income provides that certain taxpayers must refiners, importers, and distributors of Exclusion. establish books and records that clearly gasoline and provides guidance relating Form: 8873. reflect income for the short period Abstract: A taxpayer uses Form 8873 to taxable transactions, persons liable involved when changing their taxable to claim the gross income exclusion for tax, gasoline blendstocks, and year to a fiscal taxable year. Section provided for by section 114 of the gasohol. 1.442–1(d) requires a newly married Affected Public: Private Sector: Internal Revenue Code. Affected Public: Private Sector: husband or wife to file a statement with Businesses or other for-profits. their short period return when changing Estimated Annual Burden Hours: 366. Businesses or other for-profits. Estimated Annual Burden Hours: to the other spouse’s taxable year. OMB Number: 1545–1338. Affected Public: Private Sector: Type of Review: Extension without 19,087,500. Businesses or other for-profits. change of a currently approved OMB Number: 1545–1726. collection. Type of Review: Extension without Estimated Annual Burden Hours: 500. Title: TD 8578—Election Out of change of a currently approved OMB Number: 1545–2147. Subchapter K for Producers of Natural collection. Type of Review: Extension without Gas. Title: Practice Before the Internal change of a currently approved Abstract: This regulation contains Revenue Service. collection. certain requirements that must be met Form: 14360, 14364, 14392. Title: Internal Revenue Code Section by co-producers of natural gas subject to Abstract: These regulations affect 108(i) Election. a joint operating agreement in order to individuals who are eligible to practice elect out of subchapter K of chapter 1 before the Internal Revenue Service. Abstract: Pub. L. 111–5 (American of the Internal Revenue Code. Under These regulations also authorize the Recovery and Reinvestment Act), section 1.761–2(d)(5)(i), gas producers Director of Practice to act upon Section 1231 requires taxpayers to subject to gas balancing agreements on applications for enrollment to practice attach an election statement to the the regulation’s effective date are to file before the Internal Revenue Service. The taxpayer’s tax return to obtain a tax Form 3115 and certain additional Director of Practice will use certain benefit. Information on how to make the information to obtain the information to ensure that: 1) enrolled election and what the statement must Commissioner’s consent to a change in agents properly complete continuing include must be published as early as method of accounting to either of the education requirements to obtain possible to allow taxpayers sufficient two new permissible accounting renewal; 2) practitioners properly obtain time to determine whether to make the methods in the regulations. consent of taxpayers before representing election and timely prepare and file Affected Public: Private Sector: conflicting interests; 3) practitioners do their tax returns. Businesses or other for-profits. not use e-commerce to make misleading Affected Public: Private Sector: Estimated Annual Burden Hours: 5. solicitations. REG–138637–07 contains Businesses or other for-profits. OMB Number: 1545–1354. proposed modifications revising the Estimated Annual Burden Hours: Type of Review: Extension without regulations governing practice before 300,000. change of a currently approved the Internal Revenue Service (IRS). The OMB Number: 1545–2167. collection. proposed regulations affect individuals Title: Treaty-Based Return Position who practice before the IRS and Type of Review: Extension without Disclosure Under Section 6114 or providers of continuing education change of a currently approved 7701(b). programs. The proposed regulations collection. Form: 8833. modify the general standards of practice Title: Notice 2010–28, Stripping Abstract: Revenue Procedure 2010–19 before the IRS and the standards with Transactions for Qualified Tax Credit provides guidance for individuals who respect to tax returns. Bonds.

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Abstract: The IRS requires the credit bonds whether the credit coupons Estimated Annual Burden Hours: information to ensure compliance with relating to those bonds may be stripped 1,000. the tax credit bond credit coupon as provided under § 54A(i). The Dawn D. Wolfgang, stripping requirements, including respondents are issuers of tax credit ensuring that no excess tax credit is bonds, including states and local Treasury PRA Clearance Officer. taken by holders of bonds and coupons governments and other eligible issuers. [FR Doc. 2013–25625 Filed 10–29–13; 8:45 am] strips. The information is required in Affected Public: State, Local, and BILLING CODE 4810–01–P order to inform holders of qualified tax Tribal Governments.

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Part II

Department of Health and Human Services

45 CFR Parts 144, 146, 147, et al. Patient Protection and Affordable Care Act; Program Integrity: Exchange, Premium Stabilization Programs, and Market Standards; Amendments to the HHS Notice of Benefit and Payment Parameters for 2014; Final Rule

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DEPARTMENT OF HEALTH AND Shelley Bain at (301) 492–4453 or FR 15541), related to risk corridors and HUMAN SERVICES Anne Pesto at (410) 786–3492 for cost-sharing reduction reconciliation. matters relating to Part 155, Subpart M. Although many of the provisions in 45 CFR Parts 144, 146, 147, 153, 155, Ariel Novick at (301) 492–4309 for this rule become effective by January 1, and 156 matters relating to the oversight of cost- 2014, we believe that affected parties sharing reductions and advance will not have difficulty complying with [CMS–9957–F2; CMS–9964–F3] payments of the premium tax credit. the provisions by their effective dates, Johanna Lauer at (301) 492–4397 for because most of the standards are based matters relating to cost-sharing RIN 0938–AR82; RIN 0938–AR74 on existing standards currently in effect reduction reconciliation. in the private market, were previously Patient Protection and Affordable Care Rebecca Zimmermann at (301) 492– proposed through the Blueprint process, Act; Program Integrity: Exchange, 4396 for matters relating to quality were discussed in agency-issued sub- Premium Stabilization Programs, and standards, Part 156, Subpart L. regulatory guidance, or were discussed Market Standards; Amendments to the Cindy Yen at (301) 492–5142 for in the preambles to the Exchange matters relating to Part 156 other than HHS Notice of Benefit and Payment Establishment Rule,1 Premium cost-sharing reductions, advance Parameters for 2014 Stabilization Rule,2 Market Reform payments of the premium tax credit, Rule,3 or the HHS Notice of Benefit and AGENCY: Centers for Medicare & and quality standards. Payment Parameters for 2014 (2014 Pat Meisol at (410) 786–1917 for Medicaid Services (CMS), HHS. Payment Notice).4 In addition to matters relating to confirmation of HHS ACTION: Final rule. soliciting general comments on the payment and collections reports. substance of the proposed provisions, SUMMARY: This final rule implements SUPPLEMENTARY INFORMATION: we sought input on ways to implement provisions of the Patient Protection and Electronic Access these policies to minimize burden. Affordable Care Act and the Health Care and Education Reconciliation Act of This Federal Register document is Table of Contents also available from the Federal Register 2010 (collectively referred to as the I. Background Affordable Care Act). Specifically, this online database through Federal Digital A. Legislative Overview final rule outlines financial integrity System (FDsys), a service of the U.S. B. Stakeholder Consultation and Input and oversight standards with respect to Government Printing Office. This II. Provisions of the Final Regulation and Affordable Insurance Exchanges, database can be accessed via the Analysis of and Responses to Public qualified health plan (QHP) issuers in internet at http://www.gpo.gov/fdsys. Comments A. Part 144—Requirements Relating to Federally-facilitated Exchanges (FFEs), Executive Summary and States with regard to the operation Health Insurance Coverage 1. Subpart A—General Provisions of risk adjustment and reinsurance Starting October 1, 2013, qualified individuals and qualified employees a. Scope and Applicability (§ 144.102(c)) programs. It also establishes additional b. Definitions (§ 144.103) standards for special enrollment may purchase private health insurance coverage through competitive B. Part 147—Health Insurance Reform periods, survey vendors that may Requirements for the Group and conduct enrollee satisfaction surveys on marketplaces called Affordable Individual Health Insurance Markets behalf of QHP issuers, and issuer Insurance Exchanges, or ‘‘Exchanges’’ 1. Guaranteed Availability and participation in an FFE, and makes (also called Health Insurance Renewability of Coverage (§ 147.104 and certain amendments to definitions and Marketplaces). This final rule sets forth § 147.106) standards related to the market reform oversight and financial integrity C. Part 153—Standards Related to Reinsurance, Risk Corridors, and Risk rules. These standards, which include standards with respect to Exchanges, Qualified Health Plan (QHP) issuers in Adjustment Under the Affordable Care financial integrity provisions and Act protections against fraud and abuse, are Federally-facilitated Exchanges (FFEs), and States with regard to the operation 1. Subpart A—General Provisions consistent with Title I of the Affordable a. Definitions (§ 153.20) Care Act. This final rule also amends of risk adjustment and reinsurance 2. Subpart C—State Standards Related to and adopts as final interim provisions programs. It establishes additional the Reinsurance Program set forth in the Amendments to the HHS standards for special enrollment a. Maintenance of Records (§ 153.240(c)) Notice of Benefit and Payment periods, survey vendors that may b. General Oversight Requirements for Parameters for 2014 interim final rule, conduct enrollee satisfaction surveys on State-Operated Reinsurance Programs (§ 153.260) published in the Federal Register on behalf of QHP issuers in Exchanges, and issuer participation in an FFE, and c. Restrictions on Use of Reinsurance March 11, 2013, related to risk corridors Funds for Administrative Expenses and cost-sharing reduction makes certain amendments to definitions and standards related to the (§ 153.265) reconciliation. 3. Subpart D—State Standards Related to market reform rules. These standards the Risk Adjustment Program DATES: These regulations are effective were proposed in a proposed rule, titled on December 30, 2013. ‘‘Patient Protection and Affordable Care 1 Patient Protection and Affordable Care Act; FOR FURTHER INFORMATION CONTACT: Act; Program Integrity: Exchange, Establishment of Exchanges and Qualified Health Leigha Basini at (301) 492–4380 for SHOP, Premium Stabilization Programs, Plans; Exchange Standards for Employers, 77 FR general information. and Market Standards’’ (78 FR 37032), 18310 (March 27, 2012). 2 Patient Protection and Affordable Care Act; Jacob Ackerman at (301) 492–4179 for which was published in the Federal Standards Related to Reinsurance, Risk Corridors matters relating to Parts 144 and 147, Register on June 19, 2013. Finally, this and Risk Adjustment, 77 FR 17220 (March 23, single risk pool and catastrophic plans. final rule amends standards and adopts 2012). Adam Shaw at (410) 786–1091 for as final interim provisions set forth in 3 Patient Protection and Affordable Care Act; matters relating to the oversight of risk the Amendments to the HHS Notice of Health Insurance Market Rules; Rate Review, 78 FR 13406 (February 27, 2013). adjustment and reinsurance. Benefit and Payment Parameters for 4 Patient Protection and Affordable Care Act; HHS Jaya Ghildiyal at (301) 492–5149 for 2014 interim final rule, published in the Notice of Benefit and Payment Parameters for 2014, matters relating to risk corridors. Federal Register on March 11, 2013 (78 78 FR 15410 (March 11, 2013).

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a. Maintenance of Records (§ 153.310(c)(4)) 4. Subpart E—Health Insurance Issuer GAAS Generally accepted auditing b. Interim Report and State Summary Responsibilities With Respect to standards Report (§ 153.310(d)) Advance Payments of the Premium Tax GAGAS Generally accepted governmental c. General Oversight Requirements for Credit and Cost-Sharing Reductions auditing standards State-Operated Risk Adjustment a. Definitions (§ 156.400) GAO U.S. Government Accountability Programs (§ 153.365) b. Improper Plan Assignment and Office 4. Risk Adjustment Methodology Application of Cost-Sharing Reductions HHS U.S. Department of Health and Human a. Modification to the Transfer Formula in (§ 156.410(c) Through (d)) Services the HHS Risk Adjustment Methodology c. Payment for Cost-Sharing Reductions HIPAA Health Insurance Portability and 5. Subpart E—Health Insurance Issuer and (§ 156.430) Accountability Act of 1996 (Pub. L. 104– Group Health Plan Standards Related to d. Failure To Reduce an Enrollee’s 191) the Reinsurance Program Premium To Account for Advance IRS Internal Revenue Service a. Reinsurance Contribution Funds Payments of the Premium Tax Credit MAGI Modified Adjusted Gross Income (§ 153.400) (§ 156.460(c)) MLR Medical Loss Ratio b. Maintenance of Records (§ 153.405(h) e. Oversight of the Administration of Cost- NCQA National Committee for Quality and § 153.410(c)) Sharing Reductions and Advance Assurance 6. Subpart F—Health Insurance Issuer Payments of the Premium Tax Credit OIG Office of the Inspector General of the Standards Related to the Risk Corridors Programs (§ 156.480) U.S. Department of Health and Human Program 5. Subpart H—Oversight & Financial Services a. Definitions (§ 153.500) Integrity Requirements for Issuers of OMB Office of Management and Budget b. Calculation of Allowable Costs, Qualified Health Plans in Federally- PHSAct Public Health Service Act Attribution and Allocation of Revenue Facilitated Exchanges PRA Paperwork Reduction Act and Expense Items, and Risk Corridors a. Maintenance of Records for Federally- QHP Qualified Health Plan Data Requirements (§ 153.500, § 153.520, Facilitated Exchanges (§ 156.705) SHOP Small Business Health Options and § 153.530) b. Compliance Reviews of QHP Issuers in Program 7. Subpart G—Health Insurance Issuer Federally-Facilitated Exchanges The Code Internal Revenue Code of 1986 Standards Related to the Risk TIN Taxpayer Identification Number Adjustment Program (§ 156.715) 8. Subpart H—Distributed Data Collection 6. Subpart J—Administrative Review of I. Background for HHS-Operated Programs QHP Issuer Sanctions in a Federally- a. Failure To Comply With HHS-Operated Facilitated Exchange A. Legislative Overview a. Administrative Review in a Federally- Risk Adjustment and Reinsurance Data The Patient Protection and Affordable Requirements (§ 153.740(a)) Facilitated Exchange (§§ 156.901 Through 156.963) Care Act (Pub. L. 111–148) was enacted b. Default Risk Adjustment Charge on March 23, 2010. The Health Care and (§ 153.740(b)) 7. Subpart L—Quality Standards D. Part 155—Exchange Establishment a. Establishment of Standards for HHS- Education Reconciliation Act of 2010 Standards and Other Related Standards Approved Enrollee Satisfaction Survey (Pub. L. 111–152), which amended and Under the Affordable Care Act Vendors for Use by QHP Issuers in revised several provisions of the Patient 1. Subpart D—Exchange Functions in the Exchanges (§ 156.1105) Protection and Affordable Care Act, was Individual Market: Eligibility 8. Subpart M—Qualified Health Plan Issuer enacted on March 30, 2010. In this final Determinations for Exchange Responsibilities rule, we refer to the two statutes a. Confirmation of HHS Payment and Participation and Insurance Affordability collectively as the ‘‘Affordable Care Programs Collections Reports (§ 156.1210) III. Collection of Information Requirements Act.’’ a. Administration of Advance Payments of Subtitles A and C of Title I of the the Premium Tax Credit and Cost- IV. Regulatory Impact Analysis Sharing Reductions (§ 155.340) V. Regulations Text Affordable Care Act reorganized, 2. Subpart E—Exchange Functions in the amended, and added to the provisions Individual Market: Enrollment in Acronyms and Short Forms of Title XXVII of the Public Health Qualified Health Plans Because of the many organizations Service Act (PHS Act) relating to health a. Special Enrollment Periods (§ 155.420) and terms to which we refer by acronym insurance issuers in the group and 3. Subpart H—Exchange Functions: Small in this final rule, we are listing these individual markets and to group health Business Health Options Program acronyms and their corresponding terms plans that are non-Federal governmental (SHOP) plans. As relevant here, section 2702 of a. Enrollment Periods Under SHOP in alphabetical order below: (§ 155.725) Affordable Care Act The collective term for the PHS Act (guaranteed availability of 4. Subpart M—Oversight and Program the Patient Protection and Affordable Care coverage) directs a health insurance Integrity Standards for State Exchanges Act (Pub. L. 111–148) and the Health Care issuer offering non-grandfathered health a. General Program Integrity and Oversight and Education Reconciliation Act of 2010 insurance coverage in the group or Requirements (§ 155.1200) (Pub. L. 111–152)) individual market in a State to accept b. Maintenance of Records (§ 155.1210) ALJ Administrative Law Judge every employer and individual in the ARF Allowable Rating Factor E. Part 156—Health Insurance Issuer State who applies for coverage, subject Standards Under the Affordable Care AV Actuarial Value ® to certain exceptions. Section 2703 of Act, Including Standards Related to CAHPS Consumer Assessment of Exchanges Healthcare Providers and Systems the PHS Act (guaranteed renewability of 1. Subpart A—General Provisions CFR Code of Federal Regulations coverage) requires a health insurance a. Definitions (§ 156.20) CMP Civil money penalty issuer offering non-grandfathered health b. Single Risk Pool (§ 156.80) CMS Centers for Medicare & Medicaid insurance coverage in the group or 2. Subpart B—Essential Health Benefits Services individual market to renew or continue Package DOI State Department of Insurance in force such coverage at the option of a. Enrollment in Catastrophic Plans DOL U.S. Department of Labor the plan sponsor or individual, subject (§ 156.155) EHB Essential Health Benefits FEHB Federal Employees Health Benefits to certain exceptions. 3. Subpart D—Federally-Facilitated As of October 2013 for coverage Exchange Qualified Health Plan Issuer FFE Federally-facilitated Exchange Standards FF–SHOP Federally-facilitated Small starting as soon as January 1, 2014, a. Changes of Ownership of Issuers of Business Health Options Program qualified individuals and qualified Qualified Health Plans in Federally- GAAP Generally accepted accounting employers will be able to enroll in Facilitated Exchanges (§ 156.330) principles QHPs—private health insurance that has

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been certified as meeting certain 31 U.S.C. 9701 permits a Federal agency components of Title I of the Affordable standards—through competitive to establish a charge for a service Care Act. marketplaces called ‘‘Exchanges’’ or provided by the agency. Office of Section 1401 of the Affordable Care ‘‘Health Insurance Marketplaces.’’ The Management and Budget (OMB) Act amended the Internal Revenue Code Departments of Health and Human Circular A–25 Revised establishes (26 U.S.C.) to add section 36B, allowing Services, Labor, and the Treasury have Federal policy regarding user fees and a refundable premium tax credit to help been working in close coordination to specifies that a user charge will be individuals and families afford health release guidance related to QHPs and assessed against each identifiable insurance coverage. Under sections Exchanges in several phases. The word recipient for special benefits derived 1401, 1411, and 1412 of the Affordable ‘‘Exchanges’’ refers to both State from Federal activities beyond those Care Act and 45 CFR part 155, subpart Exchanges, also called State-based received by the general public. Section D, an Exchange will make a Exchanges, and FFEs. In this final rule, 1311(d)(5)(B) contains a prohibition on determination of advance payments of we use the terms ‘‘State Exchange’’ or the wasteful use of funds. the premium tax credit for individuals ‘‘FFE’’ when we are referring to a Section 1312(c) of the Affordable Care who enroll in QHP coverage through an particular type of Exchange. When we Act directs a health insurance issuer to Exchange and seek financial assistance. refer to ‘‘FFEs,’’ we are also referring to consider all enrollees in all health plans Section 1402 of the Affordable Care Act State Partnership Exchanges, which are (other than grandfathered health plans) provides for the reduction of cost a form of FFE. offered by such issuer to be members of sharing for certain individuals enrolled In this final rule, we encourage State a single risk pool for each of its in a QHP through an Exchange, and flexibility within the boundaries of the individual and small group markets. section 1412 of the Affordable Care Act law. Sections 1311(b) and 1321(b) of the Section 1312(c) of the Affordable Care provides for the advance payment of Affordable Care Act provide that each Act gives States the option to merge the these reductions to issuers. State has the opportunity to establish an individual and small group markets Under section 1411 of the Affordable Exchange. Section 1311(b)(1) gives each within the State into a single risk pool Care Act, the Secretary is directed to State the opportunity to establish an (merged market). establish a program for determining Exchange that both facilitates the Section 1313 of the Affordable Care whether an individual meets the purchase of QHPs and provides for the Act, combined with section 1321 of the eligibility standards for Exchange establishment of a Small Business Affordable Care Act, provides the participation, advance payments of the Health Options Program (SHOP) that Secretary with the authority to oversee premium tax credit, cost-sharing will help qualified employers enroll financial integrity, compliance with reductions, and exemptions from the their employees in QHPs. HHS standards, and efficient and non- shared responsibility payment under Section 1302(e) of the Affordable Care discriminatory administration of State section 5000A of the Code. Act outlines standards for offering Exchange activities. Section Sections 1412 and 1413 of the catastrophic plans in the individual 1313(a)(6)(A) of the Affordable Care Act Affordable Care Act and section 1943 of market for certain young adults and specifies that payments made by, the Social Security Act (the Act), as people who obtain certification of through, or in connection with an added by section 2201 of the Affordable exemption from the requirement to Exchange are subject to the False Claims Care Act, contain additional provisions maintain minimum essential coverage Act (31 U.S.C. 3729, et seq.) if those regarding eligibility for advance because they cannot afford health payments include any Federal funds. payments of the premium tax credit and insurance or experience other hardship. Section 1341 of the Affordable Care cost-sharing reductions, as well as Section 1311(c)(4) of the Affordable Act establishes a transitional provisions regarding simplification and Care Act directs the Secretary to reinsurance program that begins in 2014 coordination of eligibility establish an enrollee satisfaction survey and is designed to provide issuers with determinations and enrollment with system that would evaluate the level of greater stability as insurance market other health programs. enrollee satisfaction with QHPs offered reforms are implemented and Unless otherwise specified, the through an Exchange for each such QHP individuals begin to enroll in QHPs sold provisions in this final rule related to with more than 500 enrollees in the through Exchanges. Section 1342 of the the establishment of minimum previous year. Affordable Care Act establishes a functions of an Exchange are based on Section 1311(d)(4)(A) of the temporary risk corridors program which the general authority of the Secretary Affordable Care Act directs that each permits the Federal government and under section 1321(a)(1) of the Exchange must implement procedures QHPs to share in gains or losses Affordable Care Act. for the certification, recertification, and resulting from inaccurate rate setting decertification of health plans as QHPs, from 2014 through 2016. Section 1343 B. Stakeholder Consultation and Input consistent with guidelines developed by of the Affordable Care Act establishes a HHS has consulted with stakeholders the Secretary. permanent risk adjustment program on a number of polices related to the Section 1311(d)(5)(A) of the which is intended to provide payments operation of Exchanges, including the Affordable Care Act provides that to health insurance issuers that attract SHOP and premium stabilization States, when establishing Exchanges, higher-risk populations, such as those programs. HHS has held a number of must ensure that such Exchanges are with chronic conditions, and eliminate listening sessions with consumers, self-sustaining beginning on January 1, incentives for issuers to avoid higher- providers, employers, health plans, and 2015, and permits Exchanges to charge risk enrollees. State representatives to gather public assessments or user fees to participating Section 1321(a)(1) of the Affordable input. HHS consulted with stakeholders health insurance issuers to generate Care Act provides general authority for through regular meetings with the funding to support their operations. the Secretary of Health and Human National Association of Insurance When operating an FFE under section Services (referred to throughout this Commissioners; regular contact with 1321(c)(1) of the Affordable Care Act, rule as the Secretary) to establish States through the Exchange HHS has the authority under sections standards and regulations to implement establishment grant process and the 1321(c)(1) and 1311(d)(5)(A) to collect the statutory requirements related to Exchange Blueprint approval process; and spend such user fees. In addition, Exchanges, QHPs, and other and meetings with tribal leaders and

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representatives, health insurance as set forth by the Inspector General Act 9831(a)(2). We requested comments on issuers, trade groups, consumer of 1978 or other applicable law. how to interpret the PHS Act, ERISA, advocates, employers, and other and the Code to ensure that shared A. Part 144—Requirements Relating to interested parties. We considered all of provisions of the Departments of HHS, Health Insurance Coverage the public input as we developed the Labor, and the Treasury are policies in the proposed rule, the 1. Subpart A—General Provisions administered consistently. interim final rule, and this final rule. Comment: Several commenters were a. Scope and Applicability (§ 144.102(c)) in favor of adopting a consistent II. Provisions of the Final Regulations In § 144.102(c), we proposed a definition of ‘‘small employer’’ for and Analysis of and Responses to technical amendment to clarify whether purposes of the PHS Act, ERISA, and Public Comments coverage sold through associations is the Code. Some commenters thought the A proposed rule, titled ‘‘Patient group or individual coverage under the upper limit of small employer size Protection and Affordable Care Act; PHS Act. Specifically, we proposed to should be 50 employees consistent with Program Integrity: Exchange, SHOP, delete a reference to coverage offered in ERISA and the Code, while others Premium Stabilization Programs, and connection with a ‘‘group health plan suggested an upper limit of 100 Market Standards’’ (78 FR 37032), was that has fewer than two participants employees consistent with the PHS Act published in the Federal Register on who are current employees on the first and the Affordable Care Act. One June 19, 2013 with a comment period day of the plan year’’ (very small plans) commenter requested clarification that, ending on July 19, 2013. In total, we as being individual health insurance although employers with one common received approximately 99 public coverage under title XXVII of the PHS law employee are now treated as small comments from various stakeholders Act. This correction aligns with the employer groups under the Affordable including States, health insurance amendments made by the Affordable Care Act, retiree-only plans continue to issuers, consumer groups, agents and Care Act redefining a small employer to be exempt from the group market brokers, provider groups, Members of include groups consisting of only one reforms under the Health Insurance Congress, tribal organizations, and other common law employee. Portability and Accountability Act of stakeholders. We received a few Comment: Commenters expressed 1996 (HIPAA) and the Affordable Care comments that were outside the scope support for the proposed clarification in Act. of the proposed rule. A number of the § 144.102(c). Response: Consistent with section provisions in the proposed rule were Response: We are finalizing the 2791(e)(4) of the PHS Act and section finalized in the final rule published in regulation as proposed. 1304(b) of the Affordable Care Act, in the Federal Register on August 30, this final rule, we maintain the 2013, titled ‘‘Patient Protection and Summary of Regulatory Changes definition of ‘‘small employer,’’ for Affordable Care Act; Program Integrity: We are finalizing the amendments to purposes of health coverage, as an Exchange, SHOP, and Eligibility § 144.102(c) as proposed. employer who employed an average of Appeals’’ (78 FR 54070), hereinafter at least one but not more than 100 referred to as the ‘‘first Program Integrity b. Definitions (§ 144.103) employees on business days during the final rule.’’ We are finalizing the Under § 144.103, we proposed to preceding calendar year and who remaining provisions of the proposed amend several definitions of terms that employs at least one employee on the rule here. are used throughout parts 146 (group first day of the plan year. Prior to 2016, The interim final rule, titled ‘‘Patient market requirements), 148 (individual States have discretion to set the upper Protection and Affordable Care Act; market requirements), and 150 limit of small employer size at 50 Amendments to the HHS Notice of (enforcement) of subchapter B of title 45 employees. Additionally, we conform Benefit and Payment Parameters for of the Code of Federal Regulations the definitions of ‘‘individual market’’ 2014’’ (78 FR 15541) was published in (CFR), consistent with the Affordable and ‘‘group market,’’ as proposed, by the Federal Register on March 11, 2013 Care Act. These included definitions of removing references to group health with a comment period that ended on ‘‘group market,’’ ‘‘individual market,’’ plans with fewer than two participants April 30, 2013. Provisions of this rule ‘‘large employer,’’ ‘‘policy year,’’ and who are current employees from being align risk corridors calculations with the ‘‘small employer.’’ Unless otherwise treated as being in the individual market single risk pool provision, and finalize provided, the definitions in § 144.103 rather than the group market. In the standards permitting issuers of QHPs also apply for purposes of part 147 proposed rule, we noted the change to the option of using an alternate (group and individual market insurance the law and proposed to make methodology for calculating the value of reform requirements), and we make this conforming amendments to update our cost-sharing reductions provided for the explicit in this final rule. rules to reflect the law with the purpose of reconciliation of advance We noted that, although the intention of doing so for all applicable payments of cost-sharing reductions. We Affordable Care Act made changes to rules. While we inadvertently omitted received seven comments on the interim the definition of ‘‘small employer’’ for reference to the exception for certain final rule from issuers, advocacy purposes of the PHS Act, the Employee small group plans in § 146.145(b), we organizations, and tribal organizations. Retirement Income Security Act (ERISA) note that we believe that our intention We amend standards from the interim and the Internal Revenue Code (the to conform our rules to the law final rule and adopt interim provisions Code) continue to define a ‘‘small amended by the Affordable Care Act as final. employer’’ as having 2 to 50 employees. was clear and, accordingly, we make In this final rule, we provide a Similarly, we noted that the Affordable this conforming amendment in this final summary of each proposed or interim Care Act deleted the exception for very rule. As we pointed out earlier, identical provision, a summary of the public small plans in PHS Act section 2721,5 language exempting group health plans comments received and our responses to without removing parallel provisions in with fewer than two participants from them, and the provisions we are ERISA section 732(a) and Code section certain provisions of the PHS Act that finalizing. We note that nothing in these formerly was in PHS Act section 2721(a) regulations would limit the authority of 5 The Affordable Care Act redesignated section was stricken by the Affordable Care Act. the Office of the Inspector General (OIG) 2721 as section 2722 of the PHS Act. We note that nothing in this final rule

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should be construed as affecting the B. Part 147—Health Insurance Reform selection, reduce consumer confusion, Departments’ position regarding retiree- Requirements for the Group and and ensure compliance with the single only plans.6 Individual Health Insurance Markets risk pool requirements. For these reasons, in the Market Reform Rule at Comment: Several commenters 1. Guaranteed Availability and § 147.104(b), we aligned individual addressed the issue of how employees Renewability of Coverage (§ 147.104 and market open enrollment periods and should be counted in determining § 147.106) coverage effective dates with those in employer size. Commenters noted that In the proposed rule, we proposed to the individual market Exchanges (which States use different methods to calculate recognize the distinction of the large are based on a calendar policy year) employer group size and noted that group and small group segments of the and, to facilitate the transition to there are also different Federal methods group market for purposes of sections calendar policy years, established a one- for determining employer size for 2702 and 2703 of the PHS Act, as time enrollment period allowing different purposes. These commenters amended by the Affordable Care Act, individuals with non-calendar year suggested that there are compelling and their implementing regulations at plans the opportunity to enroll in a practical and efficiency reasons to use a 45 CFR 147.104 and 147.106, calendar year plan upon renewal in consistent counting method for all respectively. These proposed 2014. This final rule simply affirms the Affordable Care Act purposes and amendments would clarify that under intent of the Market Reform Rule and between Federal and State law. the guaranteed availability provisions, does not represent a change in policy. an issuer is required to offer to an Response: HHS has previously set We reiterate that, for purposes of new employer only those products that are enrollment effective on any date other forth the method for determining approved for sale in the applicable employer size for purposes relating to than January 1, the first policy year market segment (large group or small following such enrollment may the Exchange and SHOP regulations group market) based on the employer’s based on the full-time equivalent comprise a prorated policy year ending group size (rather than all group market on December 31 of that year. method used in section 4980H(c)(2) of products). The proposed amendments Comment: A few commenters sought the Code, generally effective for plan would also clarify that under the clarification on whether an issuer is years beginning on or after January 1, guaranteed renewability provisions, an required to renew coverage purchased 7 2016. We expect to address the issuer could, in accordance with by an employer whose size shifts counting method for purposes of the applicable State law and subject to the between the small and large group PHS Act in future rulemaking or other requirements of § 147.106(d), elect markets. guidance. to discontinue all products in one Response: HHS has previously issued segment of the group market (for Summary of Regulatory Changes guidance on how the guaranteed example, the large group market) renewability requirement applies to without having to discontinue all We are finalizing the provisions employers whose size shifts between the products in the other segment of the proposed in § 144.103 of the proposed small and large group markets after group market (for example, small group rule with the following minor 8 purchasing coverage in one or the other market). of these markets.9 The general rule set modifications for consistency and We also proposed to clarify in forth in section 2703 of the PHS Act and clarity. We state expressly that the § 147.104(b)(2) that all non- its implementing regulations at definitions in this section which are grandfathered coverage in the § 147.106 makes clear that a health based on PHS Act requirements enacted individual or merged market must be insurance issuer must guarantee the by HIPAA and other statutes offered on a calendar year basis as of renewal of coverage at the option of the (implemented in parts 146, 148, and January 1, 2015. We specified that, for plan sponsor. The exceptions to this 150) are equally applicable to PHS Act purposes of new enrollment effective on rule do not include the situation in requirements enacted by the Affordable any date other than January 1, the first which the employer that sponsors the Care Act (implemented in part 147). In policy year following such enrollment group health plan grows from a small the proposed definition of ‘‘policy may comprise a prorated policy year employer to a large employer, or the ending on December 31. year,’’ we replace the reference to reverse, between the time the policy is January 1, 2015 with the phrase, ‘‘for Comment: Commenters generally expressed support for the proposed purchased and the time it comes up for coverage issued or renewed beginning renewal. Therefore, the law guarantees January 1, 2014,’’ to clarify the revisions in § 147.104 and § 147.106. However, one commenter disagreed the employer the right to renew or definition’s applicability to calendar continue in force the coverage it year plans, as discussed in connection with proposed § 147.104(b)(2), in which all non-grandfathered individual or purchased in the small (or large) group with § 147.104(b)(2) of this final rule. market even though the employer ceases Finally, we remove the exception for merged market plans would be offered on a calendar year basis. The to be a small (or large) employer by certain small group health plans in reason of an increase (or decrease) in its § 146.145(b) to conform to the commenter suggested that individuals with non-calendar year plans should be number of employees. amendments in § 144.102 and § 144.103 For example, an employer that permitted to maintain their plans’ of this final rule. originally purchased coverage in the current renewal date. Response: We seek consistency small group market and that increases in 6 Group Health Plans and Health Insurance between the Exchange and non- size beyond the definition of a small Coverage Relating to Status as a Grandfathered Exchange markets to mitigate adverse employer has the option of keeping the Health Plan Under the Patient Protection and product it purchased in the small group Affordable Care Act, 75 FR at 34539–40 (June 17, 2010). 8 These clarifications were consistent with the market. Furthermore, any changes to 7 For operations of a Federally-facilitated SHOP, information we provided in ‘‘Frequently Asked the method set forth in section 4980H(c)(2) of the Questions on Health Insurance Marketplaces’’ (May 9 HCFA Insurance Standards Bulletin Series No. Code is effective for plan years beginning on or after 14, 2013). Available at: http://www.cms.gov/CCIIO/ 99–03 (September 1999). Available at: https:// January 1, 2014, including in connection with open Resources/Fact-Sheets-and-FAQs/Downloads/ www.cms.gov/HealthInsReformforConsume/ enrollment activities beginning October 1, 2013. marketplace-faq-5-14-2013.pdf. downloads/HIPAA-99-03.pdf.

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that product must satisfy the uniform In § 147.104(b)(2), we remove the 1. Subpart A—General Provisions modification of coverage requirements reference to January 1, 2015 to avoid a. Definitions (§ 153.20) set forth in section 2703(d) of the PHS unwarranted confusion as to when non- Act and § 147.106(e). Under these grandfathered plans in the individual or We proposed an amendment to the provisions, an issuer is permitted at the merged market must be offered on a definition of a ‘‘contributing entity’’ to address a situation in which the time of renewal to modify the coverage calendar year basis. Pursuant to healthcare coverage provided to a for that product, but only if the § 147.104(f), all non-grandfathered modification is consistent with State participant under a group health plan is individual and merged market coverage partially insured and partially self- law and effective uniformly to all issued or renewed on or after January 1, employers with that product. Thus, if insured—for example, if medical 2014 must be offered on a calendar year other employers with that product were benefits are provided under a self- basis, with a policy year ending on still participating in the small group insured arrangement but prescription market, the issuer could not modify the December 31 of each year and the next drug benefits are provided under an benefits or cost sharing for the product policy year beginning on January 1 of insured arrangement. We proposed this in a manner inconsistent with the rules the following year. The proposed rule amendment to clarify that, for purposes that apply to small group coverage. We included January 1, 2015 as the latest of determining whether an entity bears note that under this scenario, if the date by which a non-calendar year plan liability for reinsurance contributions, a employer drops coverage it purchased renewing in 2014 (i.e., a plan renewing self-insured group health plan includes in the small group market, it will not be on December 31, 2014) would be subject a group health plan that is partially self- able to purchase the same coverage to this requirement. We believe the insured and partially insured, but only again if it no longer meets the definition proposed text may have been subject to where the insured coverage does not of a small employer. unintended ambiguity and are finalizing constitute major medical coverage The requirements of guaranteed revised text to eliminate that concern. (whether or not the self-insured renewability do not change the coverage is major medical coverage). underlying employer group’s size for C. Part 153—Standards Related to This amendment clarifies that if a group other provisions of the PHS Act and the Reinsurance, Risk Corridors, and Risk health plan is structured in such a Affordable Care Act. For example, the Adjustment Under the Affordable Care manner, the group health plan would be premium rating rules (PHS Act section Act liable for reinsurance contributions 2701 and implementing regulations at under the counting rules applicable to § 147.102) and the single risk pool In the proposed rule, we proposed self-insured group health plans at 45 provision (Affordable Care Act section certain provisions related to program CFR 153.405(f), but if the insured 1312(c) and implementing regulations at integrity for State-operated risk component of the group health plan is § 156.80) apply to health insurance adjustment and reinsurance programs, major medical coverage, the issuer coverage in the individual and small including provisions governing remains liable for the contributions. group markets, but generally do not reporting requirements and restricting We also sought comment on whether apply to health insurance coverage in the use of reinsurance funds for we should adopt a definition for ‘‘major the large group market.10 These administrative expenses. In addition, we medical coverage’’ that would provide provisions of Federal law generally proposed record retention standards for additional clarity on when a would not therefore apply where an States operating risk adjustment, for contributing entity would have the employer increases in size to become a contributing entities, and for responsibility to make reinsurance large employer, even if the employer is reinsurance-eligible plans when HHS contributions. Comment: Several commenters renewing a product originally operates reinsurance on behalf of a 11 supported the proposed amendment. purchased in the small group market. State. We intend to propose additional One commenter sought clarification as standards related to the oversight of the Summary of Regulatory Changes to which party is liable for reinsurance We are finalizing these provisions premium stabilization programs in contributions with respect to a group with the following minor modification. future regulations and guidance. health plan that is partially self-insured We also note that, to alleviate the and partially insured when both forms 10 Beginning in 2017, States will have the option upfront burden of the reinsurance of coverage are major medical coverage. to allow issuers to offer QHPs in the large group contributions, we intend to propose in The commenter recommended that the market through the SHOP. If a State elects this option, the rating rules under PHS Act section 2701 future rulemaking to collect reinsurance issuer be liable for reinsurance will apply to all coverage offered in such State’s contributions in two installments—the contributions in a situation in which the large group market (except for self-insured group reinsurance contributions for in-network coverage is insured, because health plans) pursuant to section 2701(a)(5) of the the insured in-network coverage would PHS Act and § 147.102(f). reinsurance payments and 11 However, pursuant to section 1304(b)(4)(D) of administrative expenses would be account for the majority of the total the Affordable Care Act, a qualified employer that collected at the beginning of the health coverage for the covered is a small employer participating in the SHOP may calendar year following the applicable individuals. continue to participate in the SHOP, and will benefit year, and the contributions for Response: We clarify that the continue to be treated as a small employer for amendment to the definition of purposes of subtitle D of the Affordable Care Act, payments to the U.S. Treasury would be ‘‘contributing entity’’ does not alter the even if the employer ceases to be a small employer collected at the end of the calendar year by reason of an increase in its number of responsibility of the issuer for the following the applicable benefit year. employees. Subtitle D includes the provisions reinsurance contributions under these governing SHOP Exchanges, EHB, the single risk We also intend to propose in future facts. The amendment to the definition pool, and the premium stabilization programs but rulemaking to exempt certain self- not premium rating requirements under section of ‘‘contributing entity’’ addresses a 2701 of the PHS Act. We intend to propose in future insured, self-administered plans from scenario in which a self-insured plan rulemaking how plans that are sold through the the requirement to make reinsurance includes insured coverage that is not SHOP to employers that grow from small to large contributions for the 2015 and 2016 will be required to comply with single risk pool and major medical coverage; however, the premium rating requirements and how these plans, benefit years. fact pattern described above concerns a therefore, participate in the risk corridors programs. self-insured plan that includes insured

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major medical coverage. Under subcontractors, and agents similarly applicable privacy law, including the § 153.400(a)(1)(i) and § 153.20, an issuer maintain and make relevant documents protections of HIPAA. that offers major medical coverage to its and records available upon request from Comment: One commenter asked that covered lives is a ‘‘contributing entity,’’ HHS, the OIG, the Comptroller General, HHS reserve the authority to use the and is responsible for reinsurance or their designees. documents and records maintained contributions for the covered lives, and Comment: Several commenters asked pursuant to these provisions to verify under these facts the self-insured plan that HHS reduce the 10-year record whether issuers are in compliance with under this proposed amendment would retention standard, while other certain other requirements under the not be a contributing entity because the commenters supported the 10-year Affordable Care Act. For example, these insured component of the plan is major retention timeframe. One commenter documents and records could be used to medical coverage. suggested that a 10-year record retention help determine whether issuers are in Comment: Certain commenters standard is not needed for the False compliance with the single risk pool requested that HHS codify a definition Claims Act. premium rating requirement. of major medical coverage for purposes Response: We are finalizing the Response: We do not intend to use the of reinsurance contributions. One maintenance of records provisions as documents and records maintained commenter asked HHS to codify in proposed, in alignment with the statute pursuant to these provisions for regulation text the definition of major of limitations for the False Claims Act purposes other than monitoring medical coverage set forth in the and existing related regulations. A civil compliance with the applicable statutes preamble to the 2014 Payment Notice action may be brought under the False and regulations for those programs. In (78 FR at 15456), while continuing to Claims Act ‘‘no more than 10 years after general, primary enforcement carefully examine this issue to the date on which the violation is jurisdiction over the single risk pool determine if the definition should be committed.’’ Additionally, similar 10- premium rating requirement lies with revised, expanded, or made more year record retention standards were the States. previously finalized in the Exchange specific in the future. One commenter Summary of Regulatory Changes asked HHS to include in a definition of Establishment Rule and the Premium Stabilization Rule. We believe that We are finalizing the maintenance of ‘‘major medical coverage’’ the set of records provision set forth in health benefits defined in the American maintaining consistency in our record retention standards will help ensure § 153.240(c) as proposed, as well as the Academy of Pediatrics’ Scope of Health maintenance of records provisions set Care Benefits for Children from Birth that entities maintain records across programs in a consistent manner, forth in § 153.310(c)(4). We are also through Age 26. finalizing the maintenance of records Response: We agree that a more allowing HHS and States to coordinate oversight efforts across those program provision set forth in § 153.405(h), specific definition of ‘‘major medical areas and reduce the burden on § 153.410(c) and § 153.620(b) with coverage’’ for purposes of reinsurance stakeholders. We note that the 10-year conforming technical corrections. In contributions would add certainty for obligation to retain records begins when these provisions, to conform with our some contributing entities. We therefore the record is created. other record retention standards in this intend to propose a specific definition Comment: One commenter rule, we are clarifying that in each in the HHS Notice of Benefit and recommended that electronic provision it is the ‘‘documents and Payment Parameters for 2015. maintenance of records should satisfy records’’ that must be made available Summary of Regulatory Changes the maintenance of records standard. upon request. In § 153.620(b), we clarify Response: An entity subject to the that records must be maintained for 10 We are finalizing the amendment to maintenance of records standard may years. Finally, we are making a the definition of ‘‘contributing entity’’ as satisfy the standard by maintaining the conforming amendment to § 153.520(e) proposed. records electronically and ensuring that so that the risk corridors recordkeeping 2. Subpart C—State Standards Related they are accessible if needed in the requirement is consistent with the to the Reinsurance Program event of an investigation, audit, or other foregoing provisions. Section 153.520(e) a. Maintenance of Records (§ 153.240(c)) review. will read: ‘‘A QHP issuer must maintain Comment: Several commenters asked documents and records whether paper, We proposed to amend 45 CFR HHS to provide details on the specific electronic, or in other media, sufficient 153.240(c) to be consistent with the documents and records that States, to enable the evaluation of the issuer’s maintenance of records requirement for contributing entities or issuers would be compliance with applicable risk State-operated risk adjustment programs required to maintain for oversight corridors standards, for each benefit proposed in § 153.310(c)(4). We purposes. In particular, one commenter year for at least 10 years, and must make proposed to amend § 153.240(c) such suggested that issuers should not be those documents and records available that a State establishing a reinsurance required to retain medical records in upon request from HHS, the OIG, the program would be directed to maintain connection with the risk adjustment Comptroller General, or their designees, documents and records relating to the program. to any such entity, for purposes of reinsurance program, whether paper, Response: We will provide further verification, investigation, audit or other electronic, or in other media, for each details on the documents and records to review.’’ benefit year for at least 10 years, and be maintained in future guidance or make them available upon request from rulemaking. Because risk adjustment- b. General Oversight Requirements for HHS, the OIG, the Comptroller General, eligible claims, medical documents, and State-Operated Reinsurance Programs or their designees, to any such entity. medical records will be subject to (§ 153.260) The documents and records must be medical record review as part of the risk HHS expects that States will operate sufficient to enable HHS to evaluate adjustment data validation process, the reinsurance program under section whether the State-operated reinsurance issuers of risk adjustment covered plans 1341 of the Affordable Care Act in an program complies with Federal must maintain these documents. We effective and efficient manner and in standards. States would also be directed note that this record maintenance and accordance with the provisions of to ensure that their contractors, medical record review is subject to subparts B and C of 45 CFR part 153.

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Therefore, pursuant to our authority deficiency. To ensure transparency and excessive executive compensation, or under sections 1321(a)(1) and 1341 of accountability of a State-operated the promotion of Federal or State the Affordable Care Act, we proposed reinsurance program’s finances and legislative and regulatory modifications. certain general oversight requirements activities, we proposed in paragraph In § 153.265, we proposed to extend for State-operated reinsurance programs. (c)(4) that the State make public a these prohibitions to State-operated In § 153.260(a), we proposed that a State summary of the results of the external reinsurance programs, so that a State establishing the reinsurance program audit, including any material weakness establishing a reinsurance program ensure that its applicable reinsurance or significant deficiency. We believe would be directed to ensure that its entity keeps, for each benefit year, an that these measures are necessary to applicable reinsurance entity did not accounting of the following: (1) All ensure the proper use of reinsurance use funds that were intended to support reinsurance contributions received from contributions under the uniform reinsurance program operations HHS for reinsurance payments and for contribution rate, which HHS will (including any reinsurance administrative expenses; (2) all claims collect from all contributing entities contributions collected under the for reinsurance payments received from pursuant to 45 CFR 153.220. We national contribution rate for issuers of reinsurance-eligible plans; (3) received several comments supporting administrative expenses) for any all reinsurance payments made to these provisions. purpose prohibited in section 1311(d)(5)(B) of the Affordable Care Act. issuers of reinsurance-eligible plans; Summary of Regulatory Changes and (4) all administrative expenses We received comments supporting this incurred for the State’s reinsurance We are finalizing these provisions as provision. proposed. We are finalizing these program. We proposed to require that Summary of Regulatory Changes this accounting be kept in accordance provisions with one modification. We with GAAP, consistently applied. are clarifying in paragraph (c)(4) that in We are finalizing this provision as In § 153.260(b), we proposed that a making public any material weakness or proposed. State that establishes the reinsurance significant deficiency from the external 3. Subpart D—State Standards Related program submit to HHS and make audit, the State must also make public to the Risk Adjustment Program public a summary report on its how it intends to correct the material weakness or significant deficiency. In the first Program Integrity final rule reinsurance program operations for each (78 FR 54070), we revised the definition benefit year. This report would include Summary of Regulatory Changes of ‘‘Exchange’’ in § 155.20 and amended a summary of the accounting for the We are finalizing these provisions various other provisions of Part 155 to benefit year as set forth in proposed with one modification. We are clarifying permit a State to establish and operate § 153.260(a). only a State-based SHOP while the In § 153.260(c), we proposed that a that when the State makes public a summary of the results of the external individual market Exchange for the State that establishes the reinsurance State is established and operated as an program engage an independent audit, including any material weakness or significant deficiency, it must also FFE. Because § 153.310(a)(1) provides qualified auditing entity to perform a that a State that elects to operate an financial and programmatic audit of the make public how it intends to correct the material weakness or significant Exchange is eligible to establish a risk program for each benefit year in adjustment program, when proposing accordance with GAAS. Pursuant to deficiency, in the manner and timeframe to be specified by HHS. these amendments, we sought comment § 153.260(c)(2), the State would be on whether a State that elects to directed to ensure that this audit c. Restrictions on Use of Reinsurance establish and operate a SHOP but not an addresses the prohibitions set forth in Funds for Administrative Expenses individual market Exchange should also § 153.265 (concerning improper use of (§ 153.265) be eligible to establish a risk adjustment reinsurance funds for administrative To achieve the intended purpose of program. Additionally, we sought expenses). the reinsurance program, reinsurance comment on whether such a State In paragraph (c)(1), we proposed that contributions collected must be spent would be eligible to establish a risk the State provide to HHS the results of on reinsurance payments, payments to adjustment program only for the small the independent external audit for each the U.S. Treasury, and on reasonable group market or would be required to benefit year, and in paragraph (c)(3), we expenses to administer the reinsurance establish the program for both markets. proposed that the State identify to HHS program. In § 153.260(a), we proposed All these amendments were finalized in any material weakness or significant that a State operating reinsurance would the first Program Integrity final rule, and deficiency identified in the audit (as be directed to keep an accurate we are not re-proposing or finalizing these terms are defined in GAAS issued accounting of the reinsurance funds any of them in this rulemaking. by the American Institute of Certified received from HHS for administrative However, we elected to address the Public Accountants, and Government expenses and all the administrative comments we received on the risk Auditing Standards issued by the expenses incurred for the State-operated adjustment options for States electing to Government Accountability Office 12 reinsurance program. If a State incurs establish and operate only a SHOP in (GAO) ). We further proposed that the fewer expenses in operating reinsurance the preamble to this final rule, rather State address in writing to HHS how the for a benefit year than are allocated to than in the preamble to the first Program State intends to correct any such it under the uniform reinsurance Integrity final rule. material weakness or significant contribution rate the State would be Comment: Several commenters asked directed to use those funds to operate that HHS permit a State that is operating 12 See, Government Auditing Standards (2011 Revision), available at: http://www.gao.gov/ reinsurance in subsequent benefit years. a SHOP-only Exchange to operate a risk yellowbook. For public companies, the Public Section 1311(d)(5)(B) of the adjustment program for both the small Company Accounting Oversight Board (PCAOB) Affordable Care Act prohibits an group market and the individual market. sets audit standards. See, http://pcaobus.org/ Exchange from using any funds One commenter opposed permitting a Standards/Auditing/Pages/default.aspx. For non- public companies, the AICPA sets audit standards. intended for the administrative and State that elects to operate a SHOP-only See, http://www.aicpa.org/Research/Standards/ operational expenses of the Exchange Exchange to establish a risk adjustment AuditAttest/Pages/SAS.aspx. for staff retreats, promotional giveaways, program only in the small group market.

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Several commenters stated that § 153.240(c), which contains record proposed that in order to obtain re- restricting a State’s ability to operate retention standards for State-operated approval from HHS to operate risk risk adjustment to the small group reinsurance programs. We note that the adjustment for each benefit year after market could deprive the State of 10-year obligation to retain records the third benefit year for which it is economies of scale, add compliance begins when the record is created. approved, each State operating a risk burdens to issuers who operate in both We addressed the comments received adjustment program would be directed markets, and add complexity to on the proposed maintenance of records to submit to HHS and make public a operational requirements such as data provisions in the preamble discussion of detailed summary of risk adjustment collection and reporting. § 153.240(c) above. Below we address a program operations for the most recent Response: For 2015 and later years, comment specific to this provision. benefit year for which risk adjustment HHS will permit a State operating a Comment: One commenter asked HHS operations have been completed, in the SHOP-only Exchange to propose an to amend this standard to provide that manner and timeframe specified by alternate risk adjustment methodology these documents and records be made HHS. We proposed that the summary that covers both the individual and available to the State validation auditor report must include the results of a small group markets, and to apply for as well as HHS, the OIG, the programmatic and financial audit for the approval to operate a risk adjustment Comptroller General, or their designees. benefit year of the State-operated risk program in both markets. HHS will Response: We are not making this adjustment program conducted by an evaluate the proposed alternate risk amendment because risk adjustment independent qualified auditing entity in adjustment methodology using the same data validation validates the records of accordance with GAAS. In alternate risk adjustment methodology an issuer, not the records of the State § 153.310(d)(4)(ii), we proposed that the certification process set forth in the entity operating risk adjustment. Thus, summary report would identify to HHS Premium Stabilization Rule and 2014 a State validation auditor should not any material weakness or significant Payment Notice, in accordance with the need to review the State risk adjustment deficiency (as these terms are defined in standards set forth in 45 CFR entity’s documents. GAAS issued by the American Institute 153.330(b), to ensure that it Summary of Regulatory Changes of Certified Public Accountants, and appropriately addresses risk selection in We are finalizing this provision as Government Auditing Standards issued both markets, and will evaluate the 14 proposed. by the GAO ) identified in the State’s application to operate risk independent external audit and address adjustment in accordance with the b. Interim Report and State Summary in writing to HHS how the State intends standards set forth in 45 CFR 153.310(d) Report (§ 153.310(d)) to correct any such material weakness or to ensure the State is ready to operate In § 153.310(d)(3), we proposed that, significant deficiency. risk adjustment in both markets. We in addition to the requirements set forth We are finalizing these provisions emphasize that this policy does not alter in 45 CFR 153.310(d)(1) and (d)(2), a with minor changes in paragraph the definition of ‘‘Exchange’’ or any of State would be directed to provide to (d)(4)(ii). We are deleting references in the other amendments to provide States HHS an interim report, in a manner that paragraph to HHS to make clear with the option of establishing and specified by HHS, that includes a that any material weakness or operating only a SHOP Exchange that detailed summary of its risk adjustment significant deficiency identified in the we finalized in the first Program activities in the first 10 months of the audit, including the methods the State Integrity final rule. benefit year in order to obtain re- intends to use to correct any such a. Maintenance of Records approval from HHS to operate risk material weakness or significant (§ 153.310(c)(4)) adjustment for a third benefit year.13 deficiency, must be made public, and In § 153.310(c)(4), we proposed that a This report would be due no later than not only provided to HHS. State operating a risk adjustment December 31 of the first benefit year for Comment: One commenter asked HHS program would be directed to maintain which a State operates risk adjustment. to clarify its expectations for the interim documents and records relating to the We note that because the process for report and summary report, and the risk adjustment program, whether obtaining re-approval to operate risk programmatic components HHS paper, electronic, or in other media, for adjustment begins more than one year anticipates a State would report through each benefit year for at least 10 years, before the beginning of the applicable audit findings. and make them available upon request benefit year, the first benefit year for Response: The interim report will from HHS, the OIG, the Comptroller which an interim report based on the help HHS verify the ongoing General, or their designees, to any such first year’s operations could be used for implementation of the risk adjustment entity. The documents and records must approval purposes is the third benefit program and review concerns identified be sufficient to enable the evaluation of year. by HHS or stakeholders (for example, a State-operated risk adjustment We proposed to amend 45 CFR we may request more information on the program’s compliance with Federal 153.310(f) and re-designate it as State’s oversight plan). We will expect standards. States would also be directed § 153.310(d)(4). In § 153.310(d)(4), we the State to report to HHS regarding the to ensure that their contractors, State’s implementation of the processes 13 subcontractors, and agents maintain and In the 2014 Payment Notice, we finalized a outlined in the State’s application for process for approving the operational aspects of a certification of its alternate risk make those documents and records State’s risk adjustment program. This process is available upon request from HHS, the distinct from the previously established process adjustment methodology (or OIG, the Comptroller General, or their through which a State may obtain Federal certification of an alternate risk adjustment 14 See, Government Auditing Standards (2011 designees. We noted that a State may methodology. In an attempt to clarify these two Revision), available at: http://www.gao.gov/ satisfy this standard by archiving these related but distinct concepts, we have made minor yellowbook. For public companies, the Public documents and records and ensuring technical corrections to ensure that the terms Company Accounting Oversight Board (PCAOB) that they are accessible if needed in the ‘‘approval’’ and ‘‘re-approval’’ refer to HHS’s sets audit standards. See, http://pcaobus.org/ evaluation of a State’s risk adjustment operations Standards/Auditing/Pages/default.aspx. For non- event of an investigation, audit, or other and the terms ‘‘certification’’ and ‘‘recertification’’ public companies, the AICPA sets audit standards. review. This provision is consistent refer to our evaluation of a proposed alternate risk See, http://www.aicpa.org/Research/Standards/ with the requirements set forth in adjustment methodology. AuditAttest/Pages/SAS.aspx.

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recertification), if applicable, and its Response: Only a summary report, as consistently to all risk adjustment- application for approval of its required by § 153.310(d)(4), will be related activities. This standard is operations. required for the second year of similar to the standard proposed at We expect that the summary report operation. We are requiring an interim § 153.260(a), which applies to the will include a review of the State- report for the first year of operations to reinsurance program when operated by operated program’s operations over a inform HHS re-approval for a third a State. We received no comment on benefit year, including the State’s benefit year of operation because we this proposed provision. implementation of the risk adjustment will not yet have access to any summary Summary of Regulatory Changes methodology over a full payment reports covering a full year at the time transfer cycle. A full year of risk of re-approval. For example, a State We are finalizing this provision as adjustment operations will extend operating risk adjustment in 2014 would proposed. submit an interim report no later than beyond a benefit year because payment 4. Risk Adjustment Methodology transfers are not determined until the December 31, 2014. HHS would use the year following the applicable benefit information provided in this interim a. Modification to the Transfer Formula year. Therefore, the State will not need report to determine if the State will be in the HHS Risk Adjustment to submit this summary report until re-approved to operate risk adjustment Methodology (78 FR at 15430–34) after the end of the benefit year, upon for the 2016 benefit year. We would In the 2014 Payment Notice (78 FR at completion of the full payment transfer indicate this re-approval in the HHS 15430–34), we noted our intent to cycle. We will provide further details on Notice of Benefit and Payment modify the risk adjustment payment the risk adjustment interim and Parameters for 2016, which is published transfer formula in order to summary reports in future guidance. in 2015. accommodate community rated States Comment: One commenter supported Comment: One commenter asked HHS that utilize family tiering rating factors. the requirement that a State-operated to permit State flexibility in reporting, In non-family tiering States, family risk adjustment program submit and asked that re-approval be based on policy premiums must be developed by summary reports, and recommended an assessment of a State’s success in adding up the applicable rates of each that the summary report include an meeting the goals specific to its risk individual covered under the policy, as adjustment program. analysis of coding intensity trends. Response: We will not require a State required under 45 CFR 147.102(c)(1). In Response: We anticipate that we will operating risk adjustment to include an the case of families with more than require standardized reporting of certain analysis of coding intensity trends in three children in non-family tiering metrics, but that a State will be able to the State’s summary report. However, a States, only the applicable rates of the focus on the specific characteristics of State may choose to review this three oldest covered children under age the State’s risk adjustment program information as part of the State’s 21 are counted towards the family within the report. oversight strategy. policy premium rate (for example, for a Comment: One commenter asked family with four children under age 21, whether the summary report in Summary of Regulatory Changes only the applicable individual rates of § 153.310(d)(4) will also be required at We are finalizing these provisions the three oldest children would count the conclusion of the first benefit year with minor changes. We are deleting towards the family policy premium). and whether an interim report would be references to HHS in paragraph (d)(4)(ii) These family rating requirements do not required at any time after the first to make clear that any material apply to States that use family tiering benefit year. weakness or significant deficiency rating factors. In family tiering States, Response: As required by identified in the audit, including the family tiering rating factors are not § 153.310(d)(4), each State operating a methods the State intends to use to required to yield premiums that are risk adjustment program is required to correct any such material weakness or equal to the sum of the individual submit to HHS an annual summary of significant deficiency, must be made policy members’ applicable rates, nor risk adjustment program operations in public, and not only provided to HHS. must they be set in a way that counts the manner and timeframe specified by We are also including minor conforming only the rates of the oldest three HHS. The summary report will be changes so that references to children under age 21 within a family required after the conclusion of the first ‘‘certification’’ and ‘‘recertification’’ in policy. For example, a family tiering benefit year’s risk adjustment operations connection with the evaluation of a State could establish a family tiering (and after the conclusion of each later State’s operation of risk adjustment are rating factor of 1.0 for an adult policy, benefit year’s risk adjustment changed to references to ‘‘approval’’ and 1.8 for a policy covering one adult and operations), including the completion of ‘‘re-approval.’’ one or more children, 2.0 for a policy the payment transfer cycle. However, an covering two adults, and 2.8 for a policy interim report will be required only for c. General Oversight Requirements for covering two adults and one or more the first benefit year. State-Operated Risk Adjustment children. Comment: One commenter asked Programs (§ 153.365) In order to account for the differences whether the interim report must include To enable HHS to re-approve States to in family rating practices between an independent external audit. operate risk adjustment pursuant to 45 family tiering States and non-family Response: An independent external CFR 153.310(d), HHS proposed in tiering States, we proposed two changes audit will not be required for the § 153.365 that a State operating a risk to the risk adjustment payment transfer interim report. adjustment program keep an accounting formula that HHS will use when Comment: One commenter asked how of all receipts and expenditures related operating risk adjustment on behalf of a HHS will review a State-operated risk to risk adjustment payments and State. These changes would only apply adjustment program’s operations in the charges and the administration of risk to States that are using family tiering second year of operation, including adjustment-related functions and rating structures. In the 2014 Payment whether any additional information will activities for each benefit year. This Notice, we stated that billable members be required during the second year of accounting would be kept in accordance exclude children who do not count operation. with GAAP, and would apply towards family rates (that is, children

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who do not count toward family policy family tiering State, agreeing with the lives, where each policy standing alone premiums are excluded) (78 FR at proposal to base billable members on does not constitute major medical 15432, 15434). We proposed to clarify the number of children that implicitly coverage, but the total benefits do.15 To that in the case of family tiering States, count towards the premium under the clarify the application of the rules billable members would be based on the State’s family rating factors. These (solely for the purpose of reinsurance number of children that implicitly count commenters also supported modifying contributions), we proposed to amend towards the premium under a State’s the ARF formula to address rating paragraph (a)(1)(i) of 45 CFR 153.400(a) family rating factors. For example, limitations based on the family tiering and add a new paragraph (a)(3) that assume a State has the following four factors instead of the age rating factors. would address liability for reinsurance family tiers: One adult; one adult plus However, these commenters asked that contributions in the foregoing fact one or more children; two adults; and the ARF formula be modified to make pattern. This paragraph (a)(3) would be two adults plus one or more children. the numerator a summation over all an exception to the rule under Under this tiering structure, only one subscribers of the product of the family paragraph (a)(1)(i), which provides that child would be counted as a billable tiering factor and the subscriber member an issuer of health insurance coverage is member in the payment transfer months, and the denominator the sum not required to make reinsurance formula, because additional children of billable member months. contributions for coverage to the extent covered under a family policy would Response: We agree with the the coverage is not major medical not affect the policy’s premium. commenters that the ARF formula coverage. Additionally, we proposed a should be modified so that the Under the proposed paragraph (a)(3), modification to the allowable rating numerator is a summation over all a health insurance issuer providing factor (ARF) formula that would be used subscribers of the product of the family coverage under a group health plan for family tiering States. In the 2014 tiering factor and the subscriber member would make reinsurance contributions Payment Notice (78 FR at 15433), the months, and the denominator the sum for lives under its health insurance ARF is calculated as the member month of billable member months. We are coverage even if the insurance coverage weighted average of the age factor making this technical correction so that does not constitute major medical applied to each billable enrollee. In non- the ARF formula accurately reflects a coverage, if: (i) The group health plan family tiering States, the ARF is member month weighted average of the provides health insurance coverage for intended to measure the extent to which family tiering factor, as described in the the same covered lives through more plans are increasing or decreasing their preamble to the proposed rule (78 FR at than one insurance policy that in premiums based on allowable age rating 37039–040). Because of a typographical combination constitute major medical factors. In the case of family tiering error, the formula did not align with this coverage but individually do not; (ii) the States, premium revenue will not vary proposal. We are correcting the formula lives are not covered by self-insured by age-specific rating factors. Rather, to align with our proposal, which we are coverage of the group health plan policy level premiums will vary only finalizing in this final rule. Therefore, (except for self-insured coverage limited based on the family tiering factors. In the ARF for family tiering States would to excepted benefits); and (iii) the health order to capture the impact of the family be calculated at the level of the insurance coverage under the policy tiering factors on plans’ premium subscriber, as follows: offered by the health insurance issuer revenue we proposed that the ARF represents a percentage of the total formula for family tiering States be health insurance coverage offered in based on the family tiering factors combination by the group health plan greater than the percentage offered instead of age rating factors. Where: Specifically, under our proposal, the under any of the other policies. We ARF for family tiering States would be ARFs is the rating factor for the subscriber(s) further proposed that for purposes of (based on family size/composition), and calculated at the level of the subscriber, paragraph (a)(3), the percentage of Ms is the number of billed person-months as follows: coverage offered under various policies that are counted in determining the would be determined based on the premium(s) for the subscriber(s). average premium per covered life for Summary of Regulatory Changes these policies. In the event that the percentage of coverage is equal, the We are finalizing the two proposed Where: issuer of the policy that provides the modifications to the risk adjustment ARFs is the rating factor for the subscriber(s) greatest portion of in-network payment transfer formula as proposed, (based on family size/composition), and hospitalization benefits would be with one technical correction. We are Ms is the number of billed person-months responsible for reinsurance modifying the ARF formula by making that are counted in determining the contributions. subscriber(s) premium. the numerator a summation over all Because an issuer of group health We noted that, apart from the changes subscribers of the product of the family insurance coverage that does not, by to the billable member months tiering factor and the subscriber member itself, constitute major medical coverage definition and the ARF formula months, and the denominator the sum may not be aware of the existence of, or discussed above, payment transfers in of billable member months. premium for, other health insurance family tiering States will be calculated 5. Subpart E—Health Insurance Issuer coverage obtained by a plan sponsor using the formulas provided in the 2014 and Group Health Plan Standards covering the same lives under a group Payment Notice (78 FR at 15431–34). Related to the Reinsurance Program health plan, we sought comment on The changes to the billable member whether and in what circumstances an month definition and the ARF formula a. Reinsurance Contribution Funds (§ 153.400) would not apply to States that do not 15 We note that, after 2014, such arrangements implement family tiering rating factors. In some health coverage generally would only be permissible in the large employer group context, because issuers of small Comment: Several commenters arrangements, an insured group health employer group market insurance coverage are supported the proposed modification to plan may provide benefits through more required to provide all EHB under any policy they the payment transfer formula for a than one policy to the same covered offer that does not qualify as ‘‘excepted benefits.’’

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issuer should be entitled to rely upon by a plan sponsor, so directing issuers the proposed addition of paragraph representations from a plan sponsor to seek representations from plan (a)(3) to § 153.400. regarding the relative percentage of sponsors concerning the relative Response: Section 153.400(a)(3) coverage offered by the issuer. We also percentage of coverage offered by the applies to fully insured group health sought comment on what other means issuer was reasonable. The commenter plans that offer health insurance we should consider for ensuring that the suggested that issuers be able to rely on coverage through more than one policy. relevant issuer knows of its obligation to employer representations regarding For example, a fully insured group make the reinsurance contributions, other coverage, and that issuers be held health plan with two insurance policies, including any role that the employer harmless from compliance actions if one of which covers inpatient should have in ensuring that issuers they do not receive such information hospitalization and another that covers have the information necessary to from employers, or if the information is doctors’ office visits, prescriptions, determine which issuer is responsible inaccurate. However, another vision and dental benefits, or other for reinsurance contributions, as well as commenter stated that plans or plan similar arrangements, would be covered alternative approaches that should be sponsors should not be required to by this paragraph. considered for determining provide information to issuers and that Comment: One commenter requested responsibility for reinsurance a rule that ‘‘looks to the types of a clarification on the proposed approach contributions in such circumstances. coverage provided’’ is appropriate. One to allocating responsibility for Finally, we addressed in the proposed commenter requested clarification on reinsurance contributions, in the case of rule certain inquiries as to how which entity would be liable for a group health plan where some options reinsurance contribution obligations reinsurance contributions where a group offered under a plan are insured and would be allocated in the case of a health plan has two insured major some options offer benefits without the group health plan under which some medical components offered by different involvement of an issuer (because either benefit options for employees are issuers. The commenter stated that some the group health plan or a non-issuer insured by an issuer, and some options States prohibit HMOs from providing entity assumes the risk for that coverage offer benefits without the involvement out-of-network coverage for non- option). The commenter requested that of an issuer in insuring the benefits emergency services. HMOs in those HHS clarify that the reinsurance (because either the group health plan or States package their in-network contribution will not be imposed with some non-issuer entity assumes the risk coverage with out-of-network coverage respect to the same covered life more for that coverage option). We proposed issued by a non-HMO health insurance than once. that in such a case, if a coverage option issuer, so that enrollees in the HMO Response: Under the proposed is insured by an issuer, the issuer would have simultaneous coverage under both approach, in such a group health plan, be responsible for the reinsurance products. The commenter suggested that the issuer would be liable for contribution associated with that the rule should provide the issuer of the reinsurance contributions with respect coverage option. If an employee in-network coverage (the HMO, which to an insured coverage option, and the coverage option under such a group would be expected to account for the group health plan would be liable for health plan is not insured (because majority of the total health coverage reinsurance contributions with respect either the group health plan or other under the group health plan) is to a coverage option that is not insured. non-issuer assumes the risk), we responsible for reinsurance Consequently, reinsurance contributions proposed that the group health plan contributions. would be responsible for the Response: We are revising proposed would not be required more than once reinsurance contribution associated § 153.400(a)(3) to state that the issuer of for the same covered life. with that coverage option. After the plan that provides the greatest In general, it is our intent not to considering the comments received, we portion of inpatient hospitalization require payment of reinsurance are modifying the proposed provisions coverage will be responsible for contributions more than once for the by amending the ‘‘percentage of reinsurance contributions, and note that same covered life. We recognize that benefits’’ provision to state that the the issuer should be the issuer that certain complex group health plan issuer of the plan that provides the provides the majority of the dollar value arrangements can lead to situations in greatest portion of the inpatient of the benefits in most situations. We which lives are covered multiple hospitalization benefits would be believe this option will mitigate the arrangements and where it is unclear responsible for reinsurance operational difficulties discussed by the whether more than one health plan or contributions. We also are making two commenters, and will significantly issuer must make reinsurance minor revisions to the language in reduce the need for plan sponsors to contributions on the same covered life. proposed paragraph (a)(3) to clarify its provide information to issuers. Because To provide clarity on the matter, we scope. we recognize that there may be intend to clarify in future rulemaking Comment: Several commenters circumstances in which an issuer is the principle that reinsurance suggested that the ‘‘higher percentage of unsure whether its coverage provides contributions are required only once benefits’’ approach in proposed the greatest portion of inpatient with respect to the same covered life. § 153.400(a)(3) is administratively hospitalization benefits, we intend to We also intend to propose that no burdensome and presents significant hold an issuer harmless from non- reinsurance contributions are required operational problems. A number of compliance actions for failure to pay under a group health plan where the commenters suggested an alternative reinsurance contributions if the issuer group health plan coverage applies to approach that would require the issuer relies in good faith upon a written lives that are also covered by individual that covers hospitalizations to be representation by the plan sponsor that market health insurance coverage for responsible for reinsurance the issuer’s coverage does not provide which reinsurance contributions are contributions. the greatest portion of inpatient required, or where the coverage is One commenter agreed with HHS’s hospitalization benefits. supplemental or secondary to group statement in the preamble to the Comment: One commenter asked HHS health coverage for which reinsurance proposed rule that issuers may not to clarify the type of group health plan contributions must be made for the know about other coverage purchased coverage intended to be addressed by same covered lives.

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Summary of Regulatory Changes it is the ‘‘documents and records’’ that calculation, as defined at 45 CFR We are finalizing the reinsurance must be made available upon request. 153.500. We received several comments, all of which were supportive of this contribution provision discussed above 6. Subpart F—Health Insurance Issuer approach. as proposed, with the following Standards Related to the Risk Corridors modifications. We are modifying the Program Summary of Regulatory Changes ‘‘percentage of benefits’’ provision to a. Definitions (§ 153.500 and § 153.510) We are finalizing this policy as state that the issuer of the plan that Section 1342(a) of the Affordable Care proposed, and are adding a new provides the greatest portion of the paragraph (e) to § 153.510, which inpatient hospitalization benefits will be Act provides that ‘‘a qualified health plan offered in the individual or small provides that a QHP issuer is not subject responsible for reinsurance to the provisions under subpart F of part contributions. We also are making two group market’’ is to participate in the risk corridors program. In the Exchange 153 with respect to a stand-alone dental minor revisions to language in proposed plan. paragraph (a)(3) to clarify its scope. Establishment Rule, we stated that a stand-alone dental plan is ‘‘a type of b. Calculation of Allowable Costs, b. Maintenance of Records (§ 153.405(h) qualified health plan.’’ However, we did Attribution and Allocation of Revenue and § 153.410(c)) not intend for all requirements and Expense Items, and Risk Corridors To meet our obligation to safeguard applicable to a QHP to apply to stand- Data Requirements (§ 153.500, Federal funds, we proposed to amend alone dental plans. For example, under § 153.520, and § 153.530) § 153.405 by adding paragraph (h), 45 CFR 155.1065(a)(3), certain QHP In the interim final rule (78 FR which would require a contributing standards are not applicable to a stand- 15541), we noted that, consistent with entity to maintain documents and alone dental plan if they cannot be met, the single risk pool provision at 45 CFR records, whether paper, electronic, or in given the limited benefit package 156.80, which directs an issuer to pool other media, that are sufficient to offered by the plan. We believe that it claims costs across all of its non- substantiate the enrollment count would not be appropriate to subject grandfathered health plans in a market submitted under § 153.405 for at least 10 stand-alone dental plans to the risk within a State, a QHP issuer must pool years, and would direct the contributing corridors program because such plans allowable costs across all its non- entity to make that evidence available are considered excepted benefits plans grandfathered plans in the relevant upon request from HHS, the OIG, the under section 2791(c) of the PHS Act, market for the purposes of risk corridors Comptroller General, or their designees, and are therefore not subject to the calculation. We therefore amended the for the purpose of verifying reinsurance rating rules—that is, the Federal regulatory definition of ‘‘allowable contribution amounts. We also proposed prohibition on underwriting premiums, costs’’ for purposes of the risk corridors the requirement to base premium rating to amend § 153.410 by adding paragraph program so that allowable costs for a using the single risk pool, and the fair (c), which would direct an issuer of a QHP are equal to the pro rata portion of health insurance premiums limitations. reinsurance-eligible plan in a State the QHP issuer’s incurred claims. We Thus, although States have the option to where HHS operates reinsurance to also modified the provision related to prohibit underwriting for excepted maintain documents and records, attribution and allocation of revenue benefits plans, and issuers of stand- whether paper, electronic, or in other and expense items in 45 CFR 153.520 to alone dental plans may voluntarily media, sufficient to substantiate the conform to the changes for the risk choose not to underwrite these plans, requests for reinsurance payments made corridors calculation described above. we believe that, in general, an issuer of pursuant to § 153.410 for at least 10 We are finalizing the policy set forth a stand-alone dental plan will not be years, and would require the issuer to in the interim final rule with respect to subject to the same rate-setting make that evidence available upon the definition of ‘‘allowable costs,’’ and uncertainty in 2014 as the issuer of a request from HHS, the OIG, the are making a number of modifications to major medical plan, and will not need Comptroller General, or their designees, maintain consistency with this policy in the risk-sharing protections of risk (or, in a State where the State is response to comment, as described corridors.16 In the proposed rule, we operating reinsurance, the State or its below. noted that stand-alone dental plans are designee) for the purpose of verifying Comment: Several commenters similarly excluded from participation in recommended that we exclude the reinsurance payment requests. We note the two other premium stabilization experience of non-QHPs from the risk that these standards could be satisfied if programs—reinsurance and risk corridors calculation, and include only the contributing entity or issuer of a adjustment. We also noted that, the experience of an issuer’s QHPs in reinsurance-eligible plan archived the consistent with the exclusion of our definition of allowable costs. These documents and records and ensured excepted benefits plans from the commenters were concerned that tying that they were accessible in the event of medical loss ratio (MLR) requirements, allowable costs to the experience of all an investigation, audit, or other review. stand-alone dental claims would not be of a QHP issuer’s non-grandfathered We note that the 10-year obligation to pooled along with an issuer’s other health plans would have the effect of retain records begins when the record is claims for the purposes of determining diluting the pricing protections afforded created. ‘‘allowable costs’’ in the risk corridors We addressed the comments received to QHPs through the risk corridors on the proposed maintenance of records 16 In the preamble to the Exchange Establishment program. One commenter believed that provisions in the preamble discussion Rule, we note that each Exchange has the authority it would be inconsistent to disconnect related to § 153.240(c) above. to require, as a condition of certification, the premiums used for the risk corridors comprehensive medical QHPs to offer and price the target amount from the claims used to Summary of Regulatory Changes pediatric dental EHB (if covered) separately, if doing so would be in the best interest of consumers. develop the allowable costs, and We are finalizing these provisions as For the 2014 benefit year, an FFE will not require suggested an alternate approach that proposed, with one clarification in each comprehensive medical QHP issuers that provide would direct issuers to aggregate provision to conform with the other pediatric dental coverage to do so. We have incurred claims for all QHPs and then provided this guidance in Chapter 4 of the 2014 record retention standards in this rule. Letter to Issuers on Federal and Partnership allocate these incurred claims to each We are clarifying that in each provision Marketplaces (April 5, 2013). QHP pro rata based on the earned

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premium of each QHP as a percentage corridors calculation with the single risk allowable costs by plan premiums of total earned premium for all QHPs. pool provision, will further align the addresses the plan-specific premium The commenter believed that, while this calculations for the MLR and risk variation. proposal would not affect the risk corridors programs, and will reduce the Comment: All commenters supported corridors calculation, it would require burden on issuers of allocating expenses the modification to the risk corridors issuers to separate QHP and non-QHP on a plan-by-plan basis. formula to calculate allowable costs claims and risk adjustment payments Finally, we are also making based on incurred claims at an aggregate and charges. conforming corrections to the risk level, rather than using incurred claims Response: We are finalizing the corridors data requirements in specific to each QHP. definition of allowable costs as set forth § 153.530(b) and (c) to specify that Response: We are finalizing our in the interim final rule without change. issuers must submit risk corridors data definition of allowable costs to calculate As discussed in the preamble to the in a manner that is consistent with the allowable costs based on aggregate interim final rule, this approach is calculation of allowable costs and incurred claims as set forth in the consistent with how issuers will allowable administrative costs, as interim final rule. determine premiums pursuant to the defined at § 153.500. We provide that a Summary of Regulatory Changes single risk pool requirement at 45 CFR QHP issuer must submit to HHS data on 156.80. As stated in the interim final allowable costs and allowable We are finalizing the definition of rule, allowable costs will be calculated administrative costs incurred for all of ‘‘allowable costs’’ in § 153.500 without based on an issuer’s experience for all its non-grandfathered plans in a market change. We are modifying § 153.520(a) non-grandfathered plans in a State within a State. Without these and (b) to provide that expenses in the market, such that the actual risk corrections, issuers would be required target amount of the risk corridors corridors payment or charge will be to make plan-specific allocations and calculation should be based on market- calculated based on a QHP’s pro rata submit plan-specific amounts that are wide expenses, and must be allocated share (based on premiums) of the QHP not necessary for the risk corridors across a QHP issuer’s plans in issuer’s market-wide allowable costs calculation, while not providing the proportion to the plans’ premiums. and premiums. This approach ensures QHP aggregate premium data required Finally, we are making conforming that the incurred claims used to develop for the risk corridors calculation as modifications to the risk corridors data the allowable costs in the numerator of amended. We believe that these requirements in § 153.530(b) and (c) to the risk corridors calculation are corrections will alleviate potential require a QHP issuer to submit data on consistent with the projected claims confusion among issuers with regard to allowable costs and allowable used to develop the premiums used to submission of pooled risk corridors administrative costs for its non- calculate the target amount in the data. grandfathered health plans in a market denominator of the risk corridors Comment: One commenter noted that within a State. the risk corridors calculation compares calculation. We also note that this 7. Subpart G—Health Insurance Issuer allowable costs for QHPs and non-QHPs approach aligns with existing processes Standards Related to the Risk for the MLR program, and helps to in the numerator of the calculation to Adjustment Program maintain overall consistency between target amounts for only QHPs in the the MLR and risk corridors programs. denominator. The commenter We proposed to amend § 153.620(b) to We agree with the comment that it is recommended that the numerator of the add a standard that would direct an inconsistent to disconnect the projected calculation should only pool incurred issuer that offers risk adjustment claims used to develop premiums used claims across an issuer’s QHPs to ensure covered plans to maintain documents to calculate the risk corridor target a consistent comparison. One and records, whether paper, electronic, amount from the incurred claims used commenter noted that the single risk or in other media, sufficient to enable to develop the allowable costs, and are pool provision at 45 CFR 156.80 permits the evaluation of the issuer’s therefore modifying our risk corridors specific plan level premium compliance with applicable risk expense allocation rules at 45 CFR adjustments, such that QHP premiums adjustment standards, and to make that 153.520 to ensure that the numerator would reflect certain factors that relate evidence available upon request from and the denominator of the risk particularly to QHPs, in addition to HHS, the OIG, the Comptroller General, corridors calculation are calculated in a market-wide factors. Consequently, the or their designees (or in a State where fully consistent manner. We are revising commenter believed that an approach the State is operating risk adjustment, the risk corridors allocation rules in that limited the risk corridors the State or its designee), to any such § 153.520 to clarify that administrative calculation to the experience of only an entity. This standard, which is expenses in the target amount, like issuer’s QHPs would still be consistent consistent with other records allowable costs, should be calculated with the single risk pool provision. maintenance standards in this rule, based on expenses across all non- However, another commenter supported would direct an issuer of a risk grandfathered health plans in the the modification to the calculation of adjustment covered plan to retain market, and allocated pro rata to a QHP allowable costs that was set forth in the additional records—not only those based on the QHP’s premiums. Because interim final rule, and believed that our pertaining to data validation—to certain administrative expenses, such as policy was consistent with the single substantiate its compliance with risk Exchange user fees are, like incurred risk pool provision. adjustment standards, whether risk claims costs, required to be spread Response: Because a QHP’s target adjustment is operated by HHS or a across the relevant risk pool, their amount is based on the QHP’s State. treatment should conform with the premiums, which are principally set We addressed the comments received market-wide risk corridors calculation based on the index rate for QHPs and on the proposed maintenance of records for allowable costs and premiums. Thus, non-QHPs in the relevant market, we provisions in the preamble discussion of we are clarifying that administrative believe it is more consistent to set § 153.240(c) above. expenses should be similarly allocated. allowable costs based on the pooled Comment: Several commenters asked We note that this change is consistent claims costs of both QHPs and non- HHS to clarify the record retention with our intention to align the risk QHPs. We believe the allocation of the timeframe for this proposed provision.

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Response: We are amending this 8. Subpart H—Distributed Data level of the enforcement action would proposed provision to specify the record Collection for HHS-Operated Programs be proportional to the level of the retention timeframe for this proposed a. Failure To Comply With HHS- violation. While we would reserve the provision. We clarify that an issuer that Operated Risk Adjustment and right to impose penalties up to the offers risk adjustment covered plans Reinsurance Data Requirements maximum amounts set forth in must maintain documents and records, (§ 153.740(a)) § 156.805(c), as a general principle, we stated our intent to work collaboratively whether paper, electronic, or in other In § 153.740(a), we proposed that HHS media, sufficient to enable the with issuers to address problems in may pursue an enforcement action for establishing dedicated distributed data evaluation of the issuer’s compliance CMPs against an issuer in a State where with applicable risk adjustment environments in 2014. We noted that HHS operates the reinsurance or risk HHS would reserve the right to impose, standards for each benefit year, for at adjustment program, if the issuer fails least 10 years, and make those or not impose, CMPs as appropriate. We to: (a) Establish a secure, dedicated proposed that in our application of documents and records available upon distributed data environment pursuant CMPs, we would take into account the request from HHS, the OIG, the to 45 CFR 153.700(a); (b) provide HHS totality of the issuer’s circumstances, Comptroller General, or their designees with access to enrollee-level plan including such factors as an issuer’s (or in a State where the State is enrollment information, enrollee claims previous record of non-compliance (if operating risk adjustment, the State or data, or enrollee encounter data through any), the frequency and level of the its designee), to any such entity. We its dedicated distributed data violation, and any aggravating or environment pursuant to 45 CFR note that the 10-year obligation to retain mitigating circumstances. Our intent is 153.710(a); (c) otherwise comply with records begins when the record is to encourage issuers to address non- the requirements of 45 CFR 153.700 created. compliance and not to severely affect through 153.730; (d) adhere to the their financial condition, especially Comment: One commenter reinsurance data submission where the issuer demonstrates good encouraged HHS to prohibit QHP requirements set forth in 45 CFR faith in monitoring compliance with issuers from demanding documentation 153.420; or (e) adhere to the risk applicable standards, identifies any or paperwork from physician practices adjustment data submission and data suspected occurrences of non- or independently auditing physician storage requirements set forth in 45 CFR compliance, and attempts to remedy any practices in order to comply with HHS’s 153.610 through 153.630. As discussed proposed oversight requirements. above, under the data collection non-compliance. For instance, if an issuer of a risk adjustment covered plan Response: This regulation does not approach that we are implementing when we operate risk adjustment or did not establish a dedicated distributed seek to regulate the relationships data environment or provide access to between issuers of risk adjustment reinsurance on behalf of a State, an issuer must use masked enrollee the necessary risk adjustment data to covered plans and health care providers. permit HHS to timely calculate the Rather, we expect that risk adjustment identification numbers when making data accessible through the dedicated applicable risk adjustment transfer covered plans will make appropriate distributed data environment. In amounts, HHS would assess a default arrangements with providers to ensure addition, we will not store any risk adjustment charge as described compliance with this regulation. personally identifiable enrollee below. HHS might also elect to impose Comment: One commenter asked HHS information or individual claim-level CMPs in conjunction with the to amend this standard to provide that information from the data that issuers imposition of the default risk these documents and records be made make accessible to HHS through the adjustment charge if an issuer failed to available to the issuer’s data validation dedicated distributed data environment comply with applicable data security or auditor as well as HHS, the OIG, the except when conducting data validation privacy standards placing the interests of third-parties at risk. Comptroller General, or their designees. or audits. Risk Adjustment: Risk adjustment Reinsurance: We proposed that an Response: We are not extending this covered plans must provide access to issuer of a reinsurance-eligible plan may provision to require an issuer of a risk the risk adjustment enrollee-level plan be subject to CMPs for failure to comply adjustment covered plan to make enrollment information, enrollee claims with 45 CFR 153.420, or 45 CFR 153.700 available its documents and records to data, or enrollee encounter data from through 153.730. Under this proposal, its data validation auditor. A data the issuer by April 30 of the year HHS would take into account the validation auditor’s authority to review following the applicable benefit year in totality of the issuer’s circumstances, an issuer’s relevant documents will be order for HHS to calculate payment including such factors as an issuer’s addressed under the risk adjustment transfers based on claims experience previous record of non-compliance (if data validation regulations in 45 CFR and premiums as set forth in 45 CFR any), the frequency and level of the 153.630. 153.730. In order to enforce risk violation, and any aggravating or adjustment standards when operating mitigating circumstances when Summary of Regulatory Changes risk adjustment on behalf of a State determining how to apply CMPs. In the We are making two corrections to this pursuant to our authority under section proposed rule, we indicated that we provision, to conform with our other 1321(c)(2) of the Affordable Care Act, might not impose CMPs in certain cases. record retention provisions throughout we proposed establishing HHS authority For example, HHS might not impose this rule. We are clarifying that it is the to impose CMPs, and applying the CMPs on an issuer of a reinsurance- ‘‘documents and records’’ that must be related enforcement standards set forth eligible plan if it fails to set up a in § 156.805 to non-compliant issuers. If dedicated distributed data environment made available upon request. We are a risk adjustment covered plan does not or meet certain data requirements stated also clarifying that documents and comply with the requirements set forth above if, as a consequence, HHS simply records must be maintained for each in 45 CFR 153.610 through 153.630 and does not have the necessary claims data benefit year, for at least 10 years. 45 CFR 153.700 through 153.730, we from the dedicated distributed data proposed to apply a sanction so that the environment to calculate or distribute

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reinsurance payments for the able to determine that an issuer of a risk propose an administrative process in the reinsurance-eligible plan, and as a adjustment covered plan or reinsurance- HHS Notice of Benefit and Payment result, the reinsurance-eligible plan eligible plan, as applicable, is making Parameters for 2015 through which an would forgo significant reinsurance good faith efforts to comply with the issuer may appeal the assessment of a payments that it otherwise might have standards set forth in § 153.740(a), we default risk adjustment charge. received. Regardless, HHS reserves the will not seek to impose CMPs for non- Summary of Regulatory Changes right to impose CMPs irrespective of compliance with those standards during whether an issuer becomes ineligible for 2014. Based on the comments received To clarify our 2014 policy of reinsurance payments as a result of in connection with the proposed rule, in nonenforcement of CMPs for good faith, failing to comply with 45 CFR 153.420, 45 CFR 156.800(c), we provided that for we are adding a new sentence to or 45 CFR 153.700 through 153.730. 2014, sanctions under that subpart will § 153.740(a). After considering the comments not be imposed if the QHP issuer has b. Default Risk Adjustment Charge received, we are finalizing § 153.740(a) made good faith efforts to comply with (§ 153.740(b)) with one modification. We are including applicable requirements. We are a compliance standard, parallel to that adopting a similar CMP enforcement As described in the Premium set forth in 45 CFR 156.800(c), strategy here. However, we note that Stabilization Rule (77 FR 17220) and the providing that CMPs will not be nothing in this provision prohibits HHS 2014 Payment Notice (78 FR 15410), imposed under this provision during the from imposing CMPs in 2015 for non- HHS will employ a distributed data 2014 calendar year, if the issuer has compliance that occurred in 2014. At collection approach when it operates a made good faith efforts to comply with the appropriate time, we will consider risk adjustment program on behalf of a the applicable requirements. extending this good faith compliance State. Under this approach, issuers in Comment: Several commenters policy through 2015. We also note that States where HHS operates a risk supported HHS’s proposed flexibility this good faith compliance policy does adjustment program will be required to and cooperation with issuers when not apply to the imposition of the establish dedicated, secure data imposing CMPs on issuers that fail to default risk adjustment charge described environments, and provide HHS with 17 establish a dedicated distributed data in § 153.740(b), which is intended as an access to ‘‘masked’’ enrollee-level environment or provide HHS access to administrative measure to ensure that plan enrollment information, enrollee all necessary data. Commenters HHS may properly calculate risk claims data, and enrollee encounter data supported taking into account an adjustment payments and charges for pursuant to 45 CFR 153.710 and 45 CFR issuer’s good faith attempts to comply the entire market. Finally, we note that 153.720. Pursuant to 45 CFR 153.730, with the data requirements. One HHS’s determination of good faith may issuers must provide access to required commenter suggested that HHS provide require issuers of risk adjustment risk adjustment data by April 30 of the standards that would allow issuers to covered plans and reinsurance-eligible year following the applicable benefit demonstrate that they have complied plans to allow HHS to conduct reviews year in order for HHS to calculate risk with the data requirements. Another of the issuer’s risk adjustment and adjustment payment transfer amounts. commenter asked HHS to adopt a ‘‘safe reinsurance materials and to review the As discussed above, under the data harbor’’ that would defer the imposition issuer’s good faith efforts to comply collection approach we are of any CMPs for two years, and to with corrective action plans. implementing when we operate risk require only good faith compliance. One Comment: One commenter asked adjustment or reinsurance on behalf of commenter specifically suggested that whether the enforcement authority a State, we will not store any personally issuers be subject to CMPs if they are proposed in § 153.740 will apply to identifiable enrollee information or out of compliance with risk adjustment issuers in States where HHS operates individual claim-level information from and reinsurance data requirements for reinsurance but the State operates the the data that issuers make accessible to two or more consecutive benefit years, risk adjustment program. HHS through the dedicated distributed or if they fail to correct significant Response: The enforcement actions data environment except for purposes of deficiencies discovered during the risk set forth in § 153.740 apply to issuers data validation and audit. adjustment initial and secondary that fail to comply with HHS-operated As discussed in the proposed rule, if validation audit processes that result in risk adjustment and reinsurance data an issuer does not set up a dedicated substantially inaccurate data or produce requirements. As such, in States where distributed data environment or submits upcoding trends significantly greater HHS operates reinsurance but the State inadequate risk adjustment data, HHS than those found among other issuers in operates the risk adjustment program, would not have the required risk the State. the enforcement authority proposed in adjustment data from the issuer to Response: As we described in the § 153.740 would apply with respect to calculate risk scores or payment proposed rule, HHS will take into non-compliance with reinsurance- transfers. This data is necessary to account the totality of an issuer’s related standards to issuers of properly calculate risk adjustment circumstances, including such factors as reinsurance-eligible plans, but not to payments and charges for the entire the issuer’s previous record of non- non-compliance with respect to risk applicable market for the State. If HHS compliance (if any), the frequency and adjustment-related standards to issuers cannot perform this calculation for a level of the violation, and any of risk adjustment covered plans. particular issuer, risk adjustment aggravating or mitigating circumstances, Comment: One commenter asked that payment transfers would be affected for including the issuer’s good faith in HHS permit issuers to appeal any HHS all other issuers in the State market monitoring compliance with applicable enforcement actions. because payment transfers are standards and attempts to remedy any Response: As noted in the proposed determined within a market within a non-compliance. In addition, consistent rule, HHS may impose CMPs in State such that they will net to zero. In with our policy and standards with accordance with the procedures set the proposed rule, we invoked our respect to sanctions for non-compliance forth in § 156.805 of this subchapter. with FFE standards set forth in 45 CFR Sections 156.805(d) and (e) provide a 17 As described at 45 CFR 153.720(b), masked data means data associated with a unique identifier, 156.800, 45 CFR 156.805, and 45 CFR process for issuers that are assessed a where the unique identifier does not include the 156.810, we are clarifying that if HHS is CMP to request a hearing. We intend to enrollee’s personally identifiable information.

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authority pursuant to section 1343(b) of provide HHS with access to the required transfer formula calculations because of the Affordable Care Act to develop and data. We are finalizing that regulation the complexity of doing so. We intend apply criteria and methods for carrying text as proposed. to establish a methodology for allocating out risk adjustment activities to apply a Comment: Several commenters the default risk adjustment charge default risk adjustment charge to issuers suggested that we tie the default charge among plans in the risk pool in future in the individual or small group market to the issuer’s actual enrollment based rulemaking. that fail to provide the risk adjustment on an appropriate public filing by the data necessary for HHS to calculate issuer, such as MLR or NAIC filings, or Comment: A number of commenters payments and charges for the market in information supplied by a State made suggestions on the specific the State. Department of Insurance (DOI), rather methodology to be used to determine In § 153.740(b), we proposed that if an than average enrollment in the State. the per member per month amount for issuer of a risk adjustment covered plan Response: We agree with the calculating the default risk adjustment fails to establish a dedicated distributed comments, and are finalizing an charge. One commenter supported the data environment or fails to provide approach based on the issuer’s actual second option for calculating the per HHS with access to risk adjustment data enrollment. Because the total risk member per month amount—assessing a in such environment by April 30 of the adjustment default charge is a function per member per month amount two year following the applicable benefit of both a per member per month amount standard deviations above the mean per year in accordance with §§ 153.610(a), as well as a total enrollment amount, we member per month charge. One 153.700, 153.710, or 153.730, such that recognize that actual enrollment would commenter supported the use of the HHS cannot apply its Federally certified better align the risk adjustment default second option for calculating the per risk adjustment methodology to charge with the overall goal of market member per month amount for the first calculate the plan’s risk adjustment stabilization. Thus, if an issuer of a risk occurrence of non-compliance, but adjustment covered plan does not payment transfer amount in a timely stated that setting a higher amount, such provide access to required risk fashion, HHS would assess a default risk as the highest per member per month adjustment charge. adjustment data by April 30 of the year We proposed two different methods following the applicable benefit year, charge among risk adjustment covered for determining the per member per then we will seek from the issuer an plans in the market, would be month amount used to calculate the attestation of total billable member appropriate for repeated violations. default risk adjustment charge. One months, which we would use to Other commenters asked that HHS option would be to use the highest per calculate the total risk adjustment adopt a third methodology for member per month charge among risk default charge. That attestation would calculating the per member per month adjustment covered plans in a risk pool be subject to later HHS validation amount—specifically, a fixed percentage in the market in the plan’s geographic processes, which we will describe in of State-wide average premium. They rating area. A second option would be future rulemaking and guidance, along stated that this methodology could be to use a per member per month amount with compliance with other risk more appropriate if a market has a that is two standard deviations above adjustment-related requirements. If an limited number of issuers that submit the mean charge in the market in the issuer does not submit enrollment data, risk adjustment data. plan’s geographic rating area. HHS will seek enrollment data from the Response: In light of the comments We noted in the proposed rule that in issuer’s MLR and risk corridors filings received, we will not finalize a order to calculate a plan’s risk for the applicable benefit year, or, if adjustment default charge, we must unavailable, other reliable data sources, methodology to calculate the per multiply the per member per month such as the State DOI. member per month amount used in the amount by an enrollment count. We Comment: We received several default risk adjustment charge. We proposed to base the default charge on comments suggesting that HHS allocate intend to establish that methodology in the average enrollment in the State an issuer’s default charge to other future rulemaking. market. If enrollment data is provided, issuers in the market as part of the Summary of Regulatory Changes we proposed that the default charge payments and charges calculation in the would be based on average annual concurrent benefit year. We are finalizing our regulation text enrollment for the plan in a risk pool in Response: We agree that the default providing the authority to impose a the State market. We sought comment risk adjustment charge should be part of default risk adjustment charge as on these methods, other appropriate the concurrent benefit year payment and proposed. We are finalizing aspects of methods for calculating a default risk charges calculation. However, our the methodology for calculating the ability to apply that charge to the adjustment charge, and other sources of default risk adjustment charge—our use current year will depend upon when we data HHS could use to determine of the plan’s actual enrollment and our enrollment data for the issuers in are able to obtain the enrollment data application of the default risk charge to question. We also sought comment on for the plan in question. As discussed adjust payments to other plans in the whether to allocate an issuer’s default above, HHS will assess the risk charge to other issuers in the market as adjustment default charge once HHS market in the State on a per member per part of payments and charges in the receives actual enrollment data. Once month basis in the earliest available concurrent benefit year, during a calculated, we would transfer the risk payment and charges cycle. We are not subsequent benefit year, or sometime adjustment default charge on a per finalizing our approach to determining between annual payments and charges member per month basis to all the per member per month amount used processes. compliant risk adjustment covered to calculate the default risk charge at We received a number of comments plans in the plan’s risk pool in the this time, and will propose that strongly supporting our proposal to market in the State in the earliest methodology in future rulemaking. impose a default risk adjustment charge possible payment and charges cycle. We if an issuer of a risk adjustment covered further note that we would not include plan fails to establish a dedicated the non-compliant risk adjustment distributed data environment or fails to covered plan in the risk adjustment

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D. Part 155—Exchange Establishment what an appropriate error rate or enrollment or benefit year until the Standards and Other Related Standards threshold should be. For example, we excess premium is fully refunded. Any Under the Affordable Care Act noted that we were considering excess amounts not refunded at the end requiring issuers to report the number of of the period of enrollment or benefit 1. Subpart D—Exchange Functions in enrollees for whom the Exchange year would have to be refunded within the Individual Market: Eligibility improperly applied the advance 45 days of the end of such period. Determinations for Exchange payment of the premium tax credit As a discussed above, this provision Participation and Insurance compared to the total number of applies when an Exchange facilitates Affordability Programs enrollees in the Exchange receiving collection and payment of the premiums a. Administration of Advance Payments Federal premium subsidies. We also to QHP issuers and stand-alone dental of the Premium Tax Credit and Cost- sought comment on whether such plans on behalf of an enrollee and Sharing Reductions (§ 155.340) reports should be provided to HHS less collects a greater premium from the We proposed to amend § 155.340 by frequently than quarterly. enrollee than required by the issuer, adding paragraph (h), which sets forth Comment: Several commenters taking into account the advance additional requirements applicable supported the proposed policy and payment of the premium tax credit. As when an Exchange is facilitating the some commenters suggested that the an intermediary in this process, if the collection and payment of premiums to enrollee should have the option of Exchange collects excess premiums QHP issuers and stand-alone dental receiving the refund directly, especially from the enrollee on behalf of the issuer, upon termination of coverage. One it should be responsible for recouping plans. Specifically, we proposed that if commenter expressed concern that the overpayments from the issuer and the Exchange did not reduce an Exchanges would not have money to returning the funds to the enrollee. This enrollee’s premium by the amount of refund enrollees, since premiums and standard would not prevent an the advance payment of the premium subsidies are paid to issuers, and asked Exchange for recouping excess funds, in tax credit in accordance with 45 CFR HHS to clarify that plans are not the event the Exchange reduced the 155.340(g), the Exchange would be responsible for sending the Exchange or enrollee’s portion of the premium by required to refund to the enrollee any consumers money to correct mistakes more than the advance payment of the excess premium paid by or for the made by the Exchange. premium tax credit. We also note that enrollee. The Exchange would also be Response: In § 156.460 of the State Exchanges may not use funding for required to notify the enrollee of the proposed rule we sought comment on States establishing an Exchange improper application of the advance the timeframe for QHP issuers to refund provided under Section 1311 of the payment of the premium tax credit no any excess premiums to enrollees. We Affordable Care Act for such refunds. later than 30 calendar days after the also noted that the policy proposed in Comment: One commenter asked HHS Exchange discovers the error. We noted § 155.340(h) is similar to the policy to limit Exchange errors that must be that an Exchange may provide the proposed in § 156.460(c), when a QHP refunded to the current tax year, since refund to the enrollee by reducing the issuer is collecting premiums directly income tax reconciliation should enrollee’s portion of the premium in the from enrollees and fails to apply the resolve any errors from the previous tax following month, as long as the advance payment of the premium tax year. Another commenter asked that the reduction is provided no later than 30 credit to the enrollee’s portion of the enrollee be able to reduce the advance calendar days after the Exchange premiums, and that these parallel payment of the premium tax credit discovers the improper application of requirements are designed to ensure that portion of premium for the remainder of the advance payment of the premium all enrollees, regardless of whether a the year, if the refund would result in tax credit. We proposed that if the QHP issuer or the Exchange is collecting the enrollee owing $600 more than Exchange elects to provide the refund premiums, are afforded the same level would otherwise be available to the by reducing the enrollee’s portion of the of protection. As discussed further in enrollee in premium tax credits. premium for following month, and the section II.E.4.d, we received a number of Response: This provision is intended refund exceeds the enrollee’s portion of comments to the policy proposed in to remedy instances when an Exchange the premium for the following month, § 156.460(c) requesting that the overbills an enrollee for his or her then the Exchange would need to refund timeframe for QHP issuers to refund any portion of the monthly premium based to the enrollee the excess, no later than excess premiums to enrollees be on the eligibility determination that was 30 calendar days after the Exchange extended. In response to comments to made by the Exchange. This standard discovers the improper application of the policies proposed in this section and does not address the reconciliation of the advance payment of the premium § 156.460(c), and in order to align with the tax credit, eligibility tax credit. These provisions are similar parallel modifications in this final rule redeterminations, or Exchange errors to the policy we proposed in § 156.460, in § 156.460(c), we are modifying the regarding eligibility and enrollment. when a QHP issuer is collecting proposed policy. We are finalizing a Comment: Several commenters premiums directly from enrollees. We policy such that if an Exchange supported a requirement for quarterly also noted that we were considering discovers that it did not reduce an reporting. One commenter suggested requiring the Exchange to provide to enrollee’s premium by the amount of that such reports should be publicly HHS for each quarter, a report detailing the advance payment of the premium available and required for all Exchanges, the occurrence of any improper tax credit, then, if requested by or for including an FFE, and that Exchanges application of the advance payments of the enrollee, the Exchange must refund should have the ability to refute and the premium tax credit beginning in the any excess premium paid by or for the correct these reports. Another 2015 benefit year. We sought comment enrollee within 45 calendar days of the commenter asked HHS to set a on whether HHS should establish a request. However, if the enrollee does minimum threshold for reporting errors, minimum error rate or threshold before not request a refund, the Exchange may while another commenter opposed a an Exchange is required to inform HHS refund the excess premium paid by minimum threshold. of such improper applications of the applying the excess to the enrollee’s Response: We believe that it is advance payment of the premium tax portion of the premium each month for important to monitor the appropriate credit in a quarterly report, as well as the remainder of the period of application of these advance payments

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of the premium tax credits, regardless of determination of the Exchange, remedy would be necessary for whether an Exchange or the QHP issuer misconduct on the part of a non- consumers who have not suffered any is facilitating the collection and Exchange entity has caused the harm resulting from misconduct. In payment of premiums. However, qualified individual to be enrolled addition, as stated in the preamble to following review of the comments, we incorrectly or inappropriately in the proposed rule, a qualified individual are no longer considering a quarterly coverage such that they are not enrolled may also seek to demonstrate the reporting requirement. In parallel with in QHP coverage as desired, are not existence of exceptional circumstances the standards being finalized under enrolled in their selected QHP, or have to the Exchange under § 155.420(d)(9) if § 156.480 of this final rule applicable to been determined eligible for but are not the qualified individual is harmed due QHP issuers, when a State Exchange is receiving advance payments of the to error or inaction on the part of a non- facilitating the collection of premiums, premium tax credit or cost-sharing Exchange entity. We intend to provide the Exchange will be required to report reductions. We proposed to limit this future guidance on the process for on an annual basis if it did not reduce special enrollment opportunity to the demonstrating harm as necessary. an enrollee’s premium by the amount of individual market Exchange and not Comment: We received several the advance payment of the premium extend it to the SHOPs. comments recommending that this tax credit in accordance with 45 CFR We proposed that a non-Exchange special enrollment period be extended 155.340(g)(1)–(2). We have modified entity providing enrollment assistance to the SHOPs, stating that SHOP § 155.1200 to incorporate this provision or conducting enrollment activities consumers may be exposed to the same because § 155.1200 includes other would include, but not be limited to, risk as consumers purchasing coverage annual reporting requirements those individuals and entities that are in an Exchange. applicable to State Exchanges (see authorized by the Exchange to assist Response: We believe that it is less section II.D.1.a below). We note that with enrollment in QHP, such as a likely for an employee enrolled in since issuers in an FFE are responsible Navigator, as described in § 155.210; coverage through a SHOP to be harmed for collecting premiums directly from non-Navigator assistance personnel, as in the ways the new special enrollment enrollees, such errors will be reported to authorized by § 155.205(d) and (e); a period is intended to address than is the HHS by the QHP issuers. certified application counselor, as case for a qualified individual enrolled described in § 155.225; an agent or in coverage through the individual Summary of Regulatory Changes broker assisting consumers in an market Exchange. For example, advance We are finalizing the proposed Exchange under § 155.220; issuer payments of the premium tax credit and provisions with the following application assisters under § 155.415; or cost-sharing reductions are not available modifications. We are increasing the a QHP conducting direct enrollment to employees enrolled in coverage time period for notifying the enrollee of under § 156.1230. through a SHOP, such that it would not the improper application of the advance Comment: We received several be possible for them to be determined payment of the premium tax credit and comments supporting this proposed eligible for but not receive advance issuing refunds from 30 days to 45 days. amendment to § 155.420(d) to ensure payments of the premium tax credit or We are also providing that the Exchange that consumers have an available cost-sharing reductions, one of the may issue the refund by applying the remedy if misconduct on the part of a harms the special enrollment period total excess premium paid by or for the non-Exchange entity results in harm. was specifically designed to address. Response: We are finalizing the rule enrollee to the enrollee’s portion of the However, we are persuaded by the as proposed to ensure that consumers premium each month for the remainder comments that some risk of harm does will have a special enrollment period if of the period of enrollment or benefit exist for employees enrolled in coverage harmed by misconduct on the part of through a SHOP, and are therefore year until the excess premium is fully non-Exchange entities. We further extending the special enrollment period refunded, except that the Exchange clarify here that for purposes of to SHOPs. We intend to monitor must refund any remaining excess § 155.420(d)(10) only, a non-Exchange whether employees avail themselves of premium, within 45 days of a request by entity includes an individual or entity the special enrollment period and the or for the enrollee for the refund or fraudulently claiming to be an circumstances surrounding each such within 45 days of the end of the period authorized entity approved by an election. We are making minor changes of enrollment or benefit year. Exchange, such as a Navigator, non- to the proposed rule text to clarify that 2. Subpart E—Exchange Functions in Navigator assister, or Exchange- the special enrollment period would be the Individual Market: Enrollment in approved agent or broker. extended to employees enrolled in Qualified Health Plans Comment: We received a comment coverage through a SHOP and their recommending that the special a. Special Enrollment Periods dependents, and are also making a enrollment period be available to (§ 155.420) conforming change to 45 CFR 155.725(j) consumers if a non-Exchange entity to clarify that this special enrollment In § 155.420 we proposed to amend provides erroneous information to a period applies in the SHOPs. § 155.420(d) to provide that a special consumer, regardless of whether the Comment: We received several enrollment period will be available consumer can demonstrate harm. comments recommending that when the Exchange determines that a Response: We believe that creating a misconduct on the part of a non- consumer has been incorrectly or special enrollment period for consumers Exchange entity should also result in a inappropriately enrolled in coverage who have been harmed by non- special enrollment period for due to misconduct on the part of a non- Exchange entity misconduct will help enrollment into public programs the Exchange entity. Specifically we ensure that consumers have a remedy to consumer may otherwise be eligible for, proposed to add a new paragraph address enrollment harms while such as Medicaid or CHIP. § 155.420(d)(10) to create this new limiting uncertainty for QHP issuers. Response: Medicaid and CHIP have special enrollment period for qualified We believe that this remedy is necessary year round enrollment, so individuals individuals. This amendment would for consumers who have been harmed, eligible for these programs do not need extend a special enrollment period to a to allow them to mitigate the harm a special enrollment period to enroll in qualified individual when, in the caused. However, we do not believe this these programs if they have been

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incorrectly enrolled in private health 3. Subpart H—Exchange Functions: governmental or private, which meets insurance coverage. Small Business Health Options Program accepted professional and business Comment: We received one comment (SHOP) standards and follows generally requesting clarification about what a. Enrollment Periods Under SHOP accepted governmental auditing actions might be considered (§ 155.725) standards (GAGAS) to perform an independent external financial and misconduct. In section II.D.2 of this final rule, we programmatic audit of the State Response: As stated in the preamble describe our decision, made in response Exchange. This entity should be of the proposed rule, misconduct to comment, to extend to SHOPs the selected to avoid any real or potential includes the failure of a non-Exchange new special enrollment period that will perception of conflict of interest, entity to comply with applicable be available when the Exchange including being free from personal, requirements set forth in Exchange determines that a consumer has been external and organizational impairments regulations, or other applicable Federal incorrectly or inappropriately enrolled to independence or the appearance of or State laws. For example, this might in coverage due to misconduct on the such impairments of independence. We part of a non-Exchange entity. include a Navigator’s failure to comply stated that an external audit will help Accordingly, we are making a with the requirements set forth in 45 ensure the consistency and accuracy of conforming amendment to CFR 155.210. State Exchange financial reporting and § 155.725(j)(2)(i) to add a cross-reference program activities. We proposed that Comment: We received comments to § 155.420(d)(10), the new special this requirement may be satisfied stating that the special enrollment enrollment period. through an audit by an independent period, as proposed, might result in 4. Subpart M—Oversight and Program State-government entity. We proposed adverse selection or gaming by Integrity Standards for State Exchanges that the State Exchange will submit to consumers. One commenter requested HHS, concurrent with the annual report, that this provision not be codified to a. General Program Integrity and Oversight Requirements (§ 155.1200) the results on the audit along with eliminate the risk of adverse selection proposals on how it will remedy any and another commenter requested that We proposed that the State Exchange material weakness or significant the duration of this special enrollment maintain an accounting of all its deficiency (the terms ‘‘material period be limited to 30-days, rather than receipts and expenditures, in weakness’’ and ‘‘significant deficiency’’ the 60-days from the date of the accordance with GAAP. We also are defined in OMB Circular A–133, triggering event, as proposed. proposed that the State Exchange Audits of States, Local Governments develop and implement a process for and Non-Profit Organizations). Response: We believe that any risk monitoring all Exchange-related that this special enrollment period activities for effectiveness, efficiency, In § 155.1200(d) we proposed that might result in adverse selection is integrity, transparency, and independent audits address specific mitigated by the fact that consumers accountability. We stated our belief that processes and activities of State will need to demonstrate to the these activities would help to ensure Exchanges including financial and Exchange that they have been harmed in State Exchange compliance with Federal programmatic activities and those order to receive this special enrollment requirements as set forth in Part 155 and related to the verification and period. We believe that this special ensure the appropriate administration of determination of applicants’ eligibility enrollment period is important to Federal funds, including advance for enrollment in the State Exchanges protect consumers from certain kinds of payment of the premium tax credit and and the subsequent enrollments. We misconduct on the part of non-Exchange cost-sharing reductions. also proposed that the external audit address whether the Exchange is entities. In addition, the 60-day time In § 155.1200(b), we proposed that the complying with § 155.1200(a)(1) by period for the new special enrollment State Exchange submit several types of keeping an accurate accounting of period in the individual market reports to HHS. The State Exchange would submit at least annually a report Exchange receipts and expenditures in Exchanges is consistent with special accordance with generally accepted enrollment periods otherwise available to allow for transparency of State Exchange activities. The report must accounting principles (GAAP). We also to Exchange consumers in the include a financial statement presented proposed that external audits and individual market and we believe in accordance with GAAP. The report is annual reports required under provides consumers with adequate time due to HHS by April 1 of each year. paragraphs (b) and (c) address State to review available plan options and Additionally, the State Exchange must Exchange processes and procedures to make informed decisions to correct the submit reports in a form and manner to comply with the standards for harm. Consistent with other special be specified by HHS regarding eligibility Exchanges under Part 155 related to enrollment periods available in the and enrollment. These reports will focus advance payments of the premium tax SHOPs, this special enrollment period on eligibility determination errors, non- credits and cost-sharing reductions. will be for 30 days, not 60 days, in the discrimination safeguards, accessibility These standards include the SHOPs. of information, and fraud and abuse requirements under subpart D regarding incidences. The State Exchange must eligibility determinations, including the Summary of Regulatory Changes also submit performance monitoring requirements regarding the We are finalizing the provision data that includes financial confidentiality, disclosure, proposed in § 155.420(d)(10) with sustainability, operational efficiency, maintenance, and use of information as amendments reflecting our decision to and consumer satisfaction. We sought set forth in 45 CFR 155.302(d)(3); subpart E regarding individual market extend the special enrollment period to comments on our approach, including enrollment in QHPs; and subpart K SHOPs, and with a minor correction to comments on the content, format, and timing of such reports. regarding QHP certification. We also remove ‘‘of this subchapter’’ following In § 155.1200(c) we proposed that the proposed that such audits and annual ‘‘part 156’’ from the proposed regulation State Exchange engage an independent reports assess whether a State Exchange text. qualified auditing entity, whether has processes and procedures in place

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to prevent improper eligibility further guidance on the elements of would require State Exchanges to retain. determinations and enrollment financial and programmatic activities The maintenance of records provision in transactions. We sought comment on the that should be included in the external § 155.1210 only applies to entities that proposed annual audits, and other financial audit. are carrying out one or more activities that State Exchanges should responsibilities of the Exchange in the Summary of Regulatory Changes specifically be required to audit capacity of a contractor, subcontractor, annually or on an interim basis. We are finalizing the provisions or agent, and does not apply to QHP Comment: We received comments on proposed in § 155.1200 with the issuers because these entities do not the timing of the annual financial following modification. As discussed in provide services or carry out one or statement. We also received comments II.D.1.a of this final rule, if the Exchange more responsibilities of the Exchange. requesting additional reporting is collecting premiums under 45 CFR Furthermore, the oversight standards requirements including reporting for 155.240, we are adding subparagraph with respect to cost-sharing reductions fraud and abuse incidences and (b)(4) to require the Exchange to and advance payments of the premium suggesting that we specify in regulation annually report if it did not reduce an tax credit finalized in 45 CFR 156.480 text the types of reporting requirements enrollee’s premium by the amount of of this final rule ensure that CMS can we described in the preamble. the advance payment of the premium sufficiently monitor compliance with Additionally, commenters suggested tax credit in accordance with 45 CFR federal standards with respect to the that we make reports publicly available. 155.340(g)(1)–(2). In paragraph (c) we federal funds distributed to QHP issuers Response: We do not believe any are adding a requirement that the State through these programs. Therefore, additional reporting requirements are make public a summary of the results of requiring QHP issuers to maintain needed because the financial statement external financial audit. records is not necessary. is intended to ensure the transparency b. Maintenance of Records (§ 155.1210) Comment: One commenter suggested of State Exchange activity and the that HHS articulate how consumers, We proposed that State Exchanges eligibility and enrollment reporting is advocates, Navigators, and other entities and its contractors, subcontractors, and intended to ensure that processes and will be able to file complaints with HHS agents maintain records for 10 years, procedures are appropriately in place to in a meaningful way such as triggering including documents and records ensure that Federal requirements are a targeted audit. (whether paper, electronic, or other being met. Response: We expect that the media) and other evidence of The performance monitoring data consumer satisfaction section of the accounting procedures and practices of provide insight into the performance performance monitoring data will the State Exchanges to prepare for and impact of State Exchanges, include reporting on consumer targeted audits. We stated that these including the cost of insurance, the complaints that will be used in records must be sufficient and scope of coverage, and access issues. determining whether we will conduct a appropriate to respond to any periodic This limited set of standardized metrics targeted audit. also ensures basic transparency and auditing, inspection, or investigation of allows consistent cross-state the State Exchange’s financial records or Summary of Regulatory Changes comparisons of the impacts of varying to enable HHS or its designee to We are finalizing the provisions approaches to State Exchange appropriately evaluate the State proposed in § 155.1210, and note that implementation. We anticipate Exchange’s compliance with Federal the 10 year record retention requirement providing further guidance on the requirements. We anticipate that begins when the record is created. format and timing of the reports, as well targeted audits will be conducted based as, whether the public will have access on information from the external audit, E. Part 156—Health Insurance Issuer to them. annual report, prospective measurement Standards Under the Affordable Care Comment: One commenter suggested programs of improper payments, Act, Including Standards Related To that we make these independent annual consumer complaints, or other data Exchanges audits available to the public and sources. In addition, we proposed that 1. Subpart A—General Provisions increase the scope of the independent the State Exchange must make all audit. records of this section available to HHS, a. Definitions (§ 156.20) Response: We accept the commenter’s the OIG, the Comptroller General, or We proposed amending 45 CFR suggestion regarding public availability their designees, upon request. 156.20 by adding the definition for and we will require the State to make Comment: Commenters suggested that ‘‘Enrollee satisfaction survey vendor’’ public a summary of the results of the the proposed maintenance of records and ‘‘Registered user of the enrollee independent annual audit. Publicizing requirements for State Exchanges and satisfaction survey data warehouse.’’ the audit summary will increase the their contractors, subcontractors, and We are making a technical correction transparency and accountability of State agents should specifically outline to our regulation text, which Exchange activities. We are finalizing additional records to be kept, which inadvertently left out the word ‘‘that’’ our proposal that the independent audit could include data related not only to from the definition. The definition for address the elements in § 155.1200(d) as appeals but to the outcome of the ‘‘enrollee satisfaction survey vendor’’ described above, as well as all subparts appeals. In addition, commenters should begin, ‘‘an organization that has of Part 155. While we are not accepting suggested that the requirement apply . . .’’ the commenter’s suggestion that only to those eligible entities contracted We received no comments in regards independent audits include incomplete with the State Exchanges to carry out to these definitions, and finalize these applications or application questions one or more responsibilities of the definitions as proposed, but with the most commonly left unanswered, we Exchange (see 45 CFR 155.110), and technical corrections as mentioned believe that the criteria in Part 155 and should not apply to QHP issuers. above. in § 155.1200(d) adequately address Response: The maintenance of records areas of compliance including eligibility provision we are finalizing in Summary of Regulatory Changes denials and information to improve the § 155.1210 (b) sufficiently addresses the We are finalizing this provision as eligibility process. We anticipate issuing minimum types of records that we proposed.

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b. Single Risk Pool (§ 156.80) establish an index rate each calendar effective dates of quarterly rate updates To ensure consistency with rate year with an effective date of January 1, in the small group market. and, in the small group market, ensure setting schedules in the Exchanges and 2. Subpart B—Standards for Essential that any rate changes at other times thus reduce the risk of adverse Health Benefits, Actuarial Value, and during the year are effective only on selection, we proposed in § 156.80 to Cost Sharing add paragraph (d)(3) to clarify when April 1, July 1, or October 1, the only a. Enrollment in Catastrophic Plans issuers may establish and update dates for which Federal systems will be (§ 156.155) premium rates under the single risk in place for processing rate updates. We pool requirements. Specifically, in believe § 156.80(d)(1) already provides We are making a technical correction for the establishment of an index rate by paragraph (d)(3)(i), we proposed that to our regulation text in § 156.155, January 1 of each calendar year, and that issuers in the individual market or in a which inadvertently omitted the the proposed rule contemplates small market in which the individual and statutory language in section 1302(e) of group market rate changes that small group risk pools were merged by the Affordable Care Act indicating that correspond to the calendar quarters. the State would be permitted to make a catastrophic plan provides ‘‘no Nonetheless, for precision and clarity, changes to their market-wide adjusted benefits’’ for any plan year (except for we are revising the regulation text to index rate and plan-specific pricing on providing coverage for at least 3 primary include these clarifications. We note an annual basis. In paragraph (d)(3)(ii), care visits and preventive health that any new rates set by an issuer we proposed that issuers in the small services in accordance with section would apply for new or renewing group market would be permitted to 2713 of the PHS Act) until the coverage on or after the rate effective individual has incurred cost-sharing make such changes on a quarterly basis date, and would apply for the entire the once the Federally-Facilitated Small expenses in an amount equal to the plan year. annual limitation on cost sharing in Business Health Options Program’s (FF– Comment: Some commenters sought effect under section 1302(c)(1) of the SHOP) capability to process quarterly assurance that the single risk pool Affordable Care Act. Although this rate updates is established. Until that requirements would not prevent issuers provision was not addressed in the time, we proposed that issuers in the from filing new products for sale small group market may make changes outside of Exchanges nor prevent proposed rule, it is part of the law to rates no more frequently than issuers from entering a market until governing benefits under catastrophic annually. January 1 of each year. plans, and we believe it is appropriate Comment: Commenters generally Response: As described above, under to revise the regulation text in this final acknowledged the reasons for the the guaranteed availability standard, all rule to reflect this fact. proposal to prohibit quarterly index rate non-grandfathered plans in the 3. Subpart D—Qualified Health Plan and plan-level adjustments for issuers in individual or merged market must be Minimum Certification Standards FF–SHOPs until the issues are resolved, offered on a calendar year basis starting but asserted this policy should not January 1, 2014. Furthermore, under the a. Changes of Ownership of Issuers of apply in States with SHOPs that have single risk pool standard, an index rate Qualified Health Plans in Federally- the capability to accept quarterly rate must be established and adjusted only Facilitated Exchanges (§ 156.330) adjustments, nor should they apply to once annually in the individual and In § 156.330, we proposed that when issuers offering coverage in the small merged markets. The interaction of a QHP issuer in the FFE undergoes a group market solely outside of the these provisions is such that an issuer change in ownership, it notify HHS of SHOPs. cannot introduce new products the change at least 30 days prior to the Response: HHS, in operating both the throughout the year without affecting date of the change and provide the legal FF–SHOPs as well as the market-wide the pricing of all of the issuer’s other name and taxpayer identification rate review program under section 2794 products in the risk pool, in violation of number (TIN) of the new owner, as well of the PHS Act, cannot accept quarterly the single risk pool provision. We note as the effective date of the change. We rate changes at this time. Accordingly, that issuers will have greater flexibility also proposed that the new owner must we are finalizing our proposal that to introduce new products in the small agree to adhere to applicable statutes issuers offering coverage in the small group market, where coverage may be and regulations. group market through the SHOPs or issued on a rolling basis throughout the Comment: One commenter expressed outside of the SHOPs must refrain from year and rates generally will be able to support for the proposed standard and making index rate and plan-level be updated on a quarterly basis. urged HHS to examine any relevant adjustments more frequently than compliance and other issues impacted Summary of Regulatory Changes annually, until notified of the system by the change of ownership at the time capability to process quarterly rate We are finalizing the provisions notified, such as accreditation status. changes. We expect to establish this proposed in § 156.80 of the proposed Response: HHS intends to examine capability by the third quarter of 2014. rule with the following modifications. possible compliance issues related to Comment: One commenter requested We are revising existing paragraph (d)(1) the change of ownership, including clarification as to whether States could to provide that an index rate must be impact on accreditation status, as part of require less frequent index rate and established and effective for a State its overall oversight framework. plan-level adjustments in the small market (individual, small group, or Comment: One commenter urged group market than those specified in the merged market) by January 1 of each flexibility in assessing what constitutes regulation. calendar year. We are also restructuring a change in ownership and expressed Response: Nothing in this final rule proposed paragraph (d)(3) to clearly concern that the standard in § 156.330 prevents a State from requiring less state that an issuer is prohibited for could be triggered when transferring frequent rate changes in the small group making index rate and plan-level blocks of business from one affiliated market than the quarterly changes adjustments on any basis other than entity to another. permitted under this final rule. At a annually, except in the small group Response: HHS believes that the minimum, however, an issuer in small market once quarterly rate changes are notice requirement is minimally group or individual market must permitted. We also now clearly state the burdensome. Further, we believe that it

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will be apparent to issuers when the proposed provisions and are finalizing provided by the Exchange, then the standard is triggered—if recognized by these provisions as proposed. QHP issuer would, no later than 30 the applicable State, then an issuer calendar days after discovery of the b. Improper Plan Assignment and would need to comply with § 156.330. improper assignment, reassign the Application of Cost-Sharing Reductions enrollee to the applicable plan variation Comment: One commenter asked HHS (§ 156.410(c) Through (d)) to exempt changes of ownership within (or standard plan without cost-sharing the same holding company from the In § 156.410, we proposed to add new reductions) and notify the enrollee of notice provision and requested paragraphs (c) and (d) to specify the the improper assignment. additional flexibility in implementing actions a QHP issuer would take if it Conversely, paragraph (d)(2) proposed this provision for the 2014 plan year. does not provide the appropriate cost- that, if a QHP issuer reassigns an Response: We believe that the sharing reductions to an individual, or enrollee from a less generous plan standard, which would only require if it does not assign an individual to the variation (or a standard plan without notification if the change of ownership appropriate plan variation (or standard cost-sharing reductions) to a more is recognized at the State level, is clear. plan without cost-sharing reductions) in generous plan variation of a QHP to If a change of ownership within the accordance with § 156.410(a) through correct an improper assignment on the same holding company is required by a (b) or § 156.425(a) through (b) of this part of the issuer, the QHP issuer would State at the State level, then the issuer subpart. recalculate the individual’s liability for would need to report it pursuant to Specifically, in paragraph (c)(1), we cost sharing paid between the effective § 156.330. We believe that the notice proposed that if a QHP issuer fails to date of eligibility required by the standard is the most minimally ensure that an individual assigned to a Exchange and the date on which the burdensome way for HHS to be aware of QHP plan variation receives the cost- issuer effectuated the change. The QHP sharing reductions required under the these important changes, particularly as issuer would refund any excess cost applicable plan variation (taking into compared to standards that may be sharing paid by or for the enrollee account the requirement regarding cost required under State law. Therefore, we during such period, no later than 30 sharing previously paid under other do not believe that a transition period is calendar days after discovery of the plan variations of the same QHP under necessary. incorrect assignment. This refund § 156.425(b) if applicable), the QHP would be paid to the person or entity Summary of Regulatory Changes would notify the enrollee of the that paid the excess cost sharing, We are finalizing this section as improper application of the cost-sharing whether the enrollee or the provider. proposed. reductions and refund any excess cost We sought comment on the proposed sharing paid by or for the enrollee approach, including the 30-calendar-day 4. Subpart E—Health Insurance Issuer during such period no later than 30 timeframe for QHP issuers to reassign an Responsibilities With Respect to calendar days after discovery of the individual to the correct plan variation Advance Payments of the Premium Tax improper application of the cost-sharing and refund any excess cost sharing paid Credit and Cost-Sharing Reductions reductions. This refund would be paid by or for the enrollee. We also sought a. Definitions (§ 156.400) to the person or entity that paid the comment on whether the timeframe excess cost sharing, whether the should depend on the point in the Section 156.400 of this subpart enrollee or the provider. month the issuer discovers the improper includes definitions of a ‘‘most In paragraph (c)(2), we proposed that assignment, considering the amount of generous,’’ and a ‘‘more generous,’’ plan if a QHP issuer provides an enrollee time issuers may require to effectuate variation. We proposed to supplement assigned to a plan variation with greater the reassignment, as well as the impact those definitions by clarifying that the cost-sharing reductions than required on enrollees due to a delay in definitions of a ‘‘least generous,’’ and a under the applicable plan variation reassignment. We noted that the date of ‘‘less generous,’’ plan variation have the (taking into account § 156.425(b) the reassignment would not affect the opposite meanings of the existing concerning continuity of deductibles initial effective date of eligibility, and definitions of a ‘‘most generous,’’ or a and out-of-pocket amounts if applicable) that the enrollee would still be refunded ‘‘more generous’’ plan variation. then the QHP issuer will not be eligible any excess cost sharing paid by or for Specifically, we proposed that, as for reimbursement of any excess cost- the enrollee between the effective date between two plan variations (or a plan sharing reductions provided to the of eligibility and the date of the variation and a standard plan without enrollee, and may not seek reassignment. cost-sharing reductions), the plan reimbursement from the enrollee or the We also noted that we were variation or standard plan without cost- provider for any of the excess cost- considering requiring that, for each sharing reductions designed for the sharing reductions. Because the QHP quarter, a QHP issuer provide to HHS category of individuals first listed in 45 issuer is responsible for ensuring the and the Exchange a report beginning in CFR 155.305(g)(3) would be deemed the cost-sharing reduction is provided the 2015 benefit year detailing the less generous one. The term less appropriately, we noted that we do not occurrence of any improper applications generous was used in the proposed rule believe that the QHP issuer should be of cost-sharing reductions in violation of to address circumstances in which a able to recoup overpayments of cost- the standards finalized and proposed in QHP issuer would reassign an enrollee sharing reductions that resulted from § 156.410(a) and (c) and § 156.425(b), as from a more generous plan variation to the QHP issuer’s own errors. well as instances when it did not refund a less generous plan variation (or In paragraph (d), we proposed that if any excess cost sharing paid by or for standard plan without cost-sharing a QHP issuer improperly assigns an an enrollee in accordance with reductions), as discussed in greater enrollee to a plan variation (or standard proposed § 156.410(c)(1) and detail below. We also proposed a plan without cost-sharing reductions), § 156.410(d)(2), or was reimbursed for technical modification to change ‘‘QHP or does not change the enrollee’s excess cost sharing provided in or plan variation’’ to ‘‘standard plan or assignment due to a change in eligibility violation of proposed § 156.410(d)(1). plan variation’’ to clarify that a plan in accordance with § 156.425(a), in each Comment: Several commenters variation is not distinct from a QHP. We case, based on the eligibility and supported holding enrollees harmless received no comments on these enrollment information or notification for issuer mistakes. A number of

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commenters requested clarification that excess is fully applied unless the the QHP issuer must reassign the issuers will not be penalized for errors enrollee requests the refund. (The issuer individual to correct plan variation by made by Exchanges or enrollee income may also elect to directly refund the the first day of the second following misrepresentations, and asked HHS to enrollee, regardless of whether the month. We note that as with institute policies or procedures that enrollee requests the refund.) However, reassignment, we expect issuers to would make it easy for issuers to if requested by the enrollee, the QHP notify enrollees prior to the effective identify enrollment errors. One issuer would be required to directly date of the reassignment to prevent commenter suggested that restitution refund the enrollee any excess cost enrollee confusion. should only occur when the agencies sharing paid by or for the enrollee Comment: While some commenters can prove a pattern of willful within 45 calendar days of the request. supported the 30-day timeframe for misconduct, while another commenter The QHP issuer would refund the refunds, a number of commenters felt suggested that HHS request enrollee any remaining excess cost- that this timeframe is not feasible, given compensation from an Exchange for sharing paid by the individual at the enrollment reconciliation and payment errors by the Exchange. end of the period of enrollment or discrepancy processes. One commenter Response: We are clarifying that QHP benefit year, and if the excess cost suggested that the final rule adopt a 45- issuers may rely on the validity of an sharing amount was paid by the day timeframe, in line with Medicare eligibility determination sent to the provider, the QHP issuer would refund Part D. Other commenters QHP issuer by the Exchange, and are not to the provider any excess cost sharing recommended increasing the timeframe responsible for providing refunds under paid by provider within 45 calendar to 60 or 90 days. One commenter this provision resulting from an days of discovery of the error. We suggested that issuers in State Exchange or enrollee error. However, as believe that this standard will allow Exchanges have the flexibility to work noted in the proposed rule, because of issuers to reimburse enrollees without with the Exchange to establish the reliance interests of an enrollee in incurring additional operational costs appropriate timelines. the application of cost-sharing outside the standard billing practice, Response: Because cost sharing- reductions when purchasing particular while still providing the option for reductions are Federal outlays, we services, we believe that the QHP issuer direct refund to the enrollee. believe that it is appropriate to set should not be able to recover excess Comment: One commenter asked HHS uniform timeframes for correcting errors funds resulting from issuer error with to clarify that consumer protections also related to the underpayment of cost- respect to the application of cost-sharing apply to enrollees who are not eligible sharing reductions, regardless of reductions. We note that this is a for a cost-sharing reduction but who are whether the individual receives different standard from the one we are mistakenly enrolled in a silver plan coverage through a QHP issuer finalizing for misapplications of the variation by the issuer. participating in a State Exchange or an advance payments of the premium tax Response: We clarify that the FFE. However, taking into consideration credit because we believe that an standards in § 156.410(c) and (d) would current industry practice and the enrollee has lesser reliance interest in apply when an enrollee should not be monthly enrollment reconciliation miscalculated premiums because the eligible for cost-sharing reductions but process, as well as the refunds standards enrollee would have been clearly is erroneously assigned to a silver plan specified under 42 CFR 423.800(e) and notified of both the monthly premium variation by the QHP issuer. 42 CFR 423.466(a) with respect to the and advance payment of the premium Comment: One commenter suggested Medicare Part D low-income subsidy tax credit when they enroll in the plan. HHS set a threshold date such that, if a program, we are modifying the proposed In contrast, an enrollee may not be QHP issuer discovers an enrollee was policy and are requiring issuers to aware of the cost-sharing amount for a assigned to an incorrect plan variation provide refunds to enrollees within 45 specific service and might not be able to before the 15th of a month, the enrollee days of the discovery of the error. We determine whether the cost-sharing would be reassigned to the proper plan believe that this will permit issuers to reduction was correctly applied for that variation by the 1st day of the following rectify errors in a timely manner particular service at the point the cost month, and errors discovered afterwards consistent with their current monthly sharing is collected. would be corrected in the following operational cycles, without significantly Comment: Several commenters noted month. Another recommended that delaying the reimbursement to the that requiring issuers to provide refunds consumers be provided advance notice enrollee or provider as applicable. of cost-sharing reductions to enrollees is of plan reassignment, and that plans Comment: Some commenters inconsistent with standard billing ensure that enrollees have full access to suggested a de minimis threshold for practices in which an issuer bills or services while the errors are being required refunds, similar to the credits the enrollee, noting that issuing corrected. threshold for the medical loss ratio refunds would require additional Response: In response to comments, program. resources. Another commenter noted we are modifying the proposed policy to Response: Unlike the minimum that consistent with current practices align with existing Exchange regulations threshold for medical loss ratio rebates and procedures applicable to non- regarding the effective date of coverage under 45 CFR 158.243, the standards subsidized enrollees, issuers should be with respect to special enrollment proposed under this section were able to reprocess claims under the periods under 45 CFR 155.420(b)(i) and intended to ensure that Federal funds correct plan variation and recoup any (ii). Section 156.410(d)(1) and (2) now are being used to appropriately excess payment. provide that if the QHP issuer subsidize enrollee cost sharing, so that Response: In consideration of discovered the error between the first individuals receive the full cost-sharing standard issuer billing practices, the and fifteenth day of the month, the QHP reductions for which they were final rule provides that a QHP issuer must reassign the enrollee to the correct determined eligible. Because these may apply any excess cost sharing paid plan variation (or standard plan without refund standards are designed protect by or for an enrollee (except by a cost-sharing reductions) by the first day low-income individuals from provider) to the enrollee’s portion of the of the following month. If the QHP unforeseen costs, we do not believe premium for the remainder of the period issuer discovers the error between the there should be a de minimis threshold of enrollment or benefit year until the sixteen and the last day of the month, for refunds of cost-sharing reductions.

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Comment: Several commenters Summary of Regulatory Changes applicable plan variation for which the supported a standard under which an We are finalizing these provisions individual is eligible. issuer is not required to report on with the following modifications. We In the Amendments to the HHS Notice of Benefit and Payment misapplication of cost-sharing are amending paragraphs (c) and (d) to Parameters for 2014 interim final rule, reductions unless a minimum error rate increase the time period for issuing we established in § 156.430(c)(4) an occurs, while other commenters stated refunds from 30 days to 45 days of alternate methodology for calculating that all issuers should submit these discovery of the error. We are also the amount of cost sharing that the reports without respect to such a modifying these paragraphs to provide enrollees would have paid under the threshold. Other commenters stated that that the QHP issuer may provide the standard plan for the purpose of a semi-annual or annual report should refund by applying the total excess cost reconciliation of the advance payments be required for the initial years. One sharing paid by or for the enrollee to the of the cost-sharing reductions. Under commenter believed that such quarterly enrollee’s portion of the premium for reports would duplicate the information this alternate methodology (referred to the remainder of the period of as the ‘‘simplified methodology’’), QHP provided via enrollment reconciliation enrollment or benefit year until the issuers calculate the amount of cost and the payment discrepancy reporting excess is fully applied, except that the sharing that the enrollees would have process. The same commenter was also QHP issuer must refund the enrollee the paid under the standard plan by using concerned about the implications of excess cost sharing within 45 days of formulas based on certain summary such self-reporting under Federal laws, the enrollee’s request or the end of the cost-sharing parameters of the standard and recommended a safe harbor from period of enrollment or benefit year. plan, applied to the total allowed costs enforcement remedies for any good faith (Any cost-sharing paid by the provider for each policy. With this approach, we reporting. Another commenter will still be refunded to the provider sought to balance the need to safeguard suggested that HHS give State within 45 days of discovery of the Federal funds with the goal of lessening Exchanges flexibility to decide the error.) Additionally, we are re- the administrative burden on QHP timing of such reports. designating subparagraphs (d)(1) and issuers. We stated that we anticipated Response: In response to comments, (d)(2) as (d)(3) and (4), and adding two that after an appropriate transition we are not establishing a quarterly new subparagraphs (d)(1) and (d)(2), period, all QHP issuers would be reporting standard with respect to the which set forth a timeframe for required to use the standard improper application of cost-sharing effectuating a reassignment to the methodology, and sought comments on reductions or improper assignments to correct plan variation. how long the transition period should plan variations (or standard plans c. Payment for Cost-Sharing Reductions be. We also noted that in later years, we without cost-sharing reductions). (§ 156.430) would consider alternative approaches However, we require this reporting as for reimbursing QHP issuers. For In the 2014 Payment Notice, we example, once more data is available, part of the annual reporting requirement established a payment approach under set forth under § 156.480(b). We believe we could change to a capitated payment which monthly advance payments will system as permitted in section that annual reporting of these errors will be made to QHP issuers to cover allow HHS to track the occurrence of 1402(c)(3)(B) of the Affordable Care Act. projected cost-sharing reduction However, such a change would require these errors and identify any problems amounts, and then, after the close of the that affect multiple issuers without access to data on the utilization and benefit year, the advance payments and cost-sharing patterns of individuals duplicating any existing interim the actual cost-sharing reduction reporting requirements. We do not eligible for cost-sharing reductions. amounts provided during the benefit In § 156.430(c)(3)(i) of the interim intend to create a safe harbor for year will be reconciled. In 45 CFR misreported information, and expect final rule, we provided that a QHP 156.430(c)(1), we established standards issuer must notify HHS prior to the start that issuers will make a good faith effort for QHP issuers to submit data to HHS of each benefit year whether or not it is to accurately report these errors.18 detailing the amount of cost sharing the selecting the simplified methodology for Comment: One commenter asked how enrollees in each plan variation paid, as the benefit year. In paragraph (c)(3)(ii), claims submitted for premium well as the amount of cost sharing the we specified that if the QHP issuer stabilization programs would be affected enrollees would have paid under the selects the simplified methodology, it by erroneous cost-sharing reduction standard plan. The value of the cost- must apply the simplified methodology amounts. sharing reductions provided is the to all plan variations it offers on the Response: As noted in 45 CFR difference of these two amounts. We Exchange for a benefit year. Since the 156.430(d), HHS will perform periodic also finalized at 45 CFR 156.430(c)(2) a simplified methodology is intended for reconciliations of any advance methodology (referred to as the issuers whose systems are not yet payments of cost-sharing reductions ‘‘standard methodology’’) for calculating capable of implementing the standard provided to the QHP issuer with the the amount of cost sharing that the methodology, in paragraph (c)(3)(iii) we actual amount of cost-sharing enrollees would have paid under the specified that the QHP issuer may not reductions provided to enrollees and standard plan, but for the cost-sharing select the simplified methodology if it reductions. Under the standard reimbursed to providers by the QHP did not select the simplified methodology, QHP issuers apply the issuers. This calculation is not required methodology for the prior benefit year. cost-sharing requirements for the for the risk adjustment or reinsurance We also set forth standards governing standard plan to the allowed costs for programs, and will be completed prior the selection of a methodology if a QHP each plan variation policy; in effect, issuer merges with or acquires another to the deadline for the risk corridors each claim would be processed twice: QHP issuer on the Exchange, or acquires program. once using the cost-sharing structure a QHP offered on the Exchange from that would have been in place if the another issuer. In paragraph (c)(3)(iv), 18 We note that many of the errors that will be the subject of the first annual report and to our 2014 individual were ineligible for cost- we provided that if each of the affected policy of nonenforcement of CMPs for good faith, sharing reductions, and once using the parties had selected a different which we codified at 45 CFR 156.800(c). reduced cost-sharing structure in the methodology for the benefit year, then

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notwithstanding paragraphs (c)(3)(ii) methodology. Several commenters also not require complex readjudication of and (iii), for the benefit year in which supported a shift to a capitated payment claims. Specifically, in the merger or acquisition took place, the system in future years, though one § 156.430(c)(4)(i), we detailed the QHP issuer must continue to use the noted that it will be important to require process for calculating the amount that methodology selected prior to the start QHP issuers to use the standard enrollees would have paid under the of the benefit year for each plan methodology for at least two years so standard plan under the simplified variation (whether or not the selection that adequate data can be collected on methodology, depending on the was made by that issuer), and for the the value of the cost-sharing reductions, utilization pattern under the policy. We next benefit year, the QHP issuer may which may vary significantly between described these calculations using select either methodology, subject to the plan variations and enrollees. The same Formulas A, B, and C, detailed in requirement in paragraph (c)(3)(ii) that a commenter suggested that HHS should § 156.430(c)(4)(i)(A), (B) and (C). In QHP issuer select the same methodology ensure that QHP issuers are adequately § 156.430(c)(4)(ii) (renumbered as for all plan variations it offers on the compensated so that issuers provide (c)(4)(iii) in this final rule), we defined Exchange for the benefit year. cost-sharing reductions as required, the effective cost-sharing parameters for In this final rule, we are generally including cost-sharing reductions for the standard plan, and established that finalizing the standards related to the American Indians and Alaska Natives. these parameters must be calculated simplified methodology as established Response: To allow QHP issuers separately for self-only coverage and in the interim final rule, with minor adequate time to develop their systems other than self-only coverage. We also clarifying edits to paragraph (c)(3)(iii) to support the standard methodology, noted that if a QHP issuer has entirely and (iv), and we are modifying we are establishing a three-year separate cost-sharing parameters for paragraph (c)(3) to specify that QHP transition period during which QHP pharmaceutical and medical services, issuers may only choose to use the issuers may use the simplified the QHP issuer may elect to develop simplified methodology for benefit years methodology, provided that they choose separate sets of effective cost-sharing 2014 through 2016. For the 2014 benefit the simplified methodology prior to the parameters for pharmaceutical and year, HHS intends to contact each QHP start of benefit year 2014. We are medical services. offering individual market coverage modifying § 156.430(c)(3) to specify that We sought comments on these through an Exchange in November, the option to use the simplified effective cost-sharing parameters and which will prompt the issuer to notify methodology will extend only through formulas for calculating the amount that HHS prior to the start of the benefit year benefit year 2016. As a result, all QHP enrollees would have paid under the whether or not it selects the simplified issuers offering coverage through the standard plan, and whether this methodology for the benefit year. We individual market of an Exchange must methodology appropriately categorizes received a number of comments on the use the standard methodology to submit policies based on utilization patterns. selection of the methodology and the the data described in 45 CFR We also sought suggestions for transition period. 156.430(c)(1) for cost-sharing reductions alternative methodologies that might Comment: The majority of provided for benefit year 2017. We will provide more accurate estimates of the commenters supported the simplified continue to consider alternative amount that enrollees would have paid methodology. Many noted that the approaches for reimbursing QHP issuers under the standard plan, while simplified methodology will likely for the future, including a capitated preserving the administrative efficiency reduce QHP issuers’ short-term costs payment system. We believe that both of the simplified methodology. In and administrative burden. Two methods of calculating the value of cost- response to comments, we are generally commenters argued that issuers should sharing reductions provided will be finalizing the simplified methodology as be permitted to choose between the accurate so that QHP issuers are established in the interim final rule, simplified and standard methodologies adequately compensated for providing with some modifications to address indefinitely because of the many new cost-sharing reductions to all unique benefit structures and to reduce functions that issuers will be performing populations. potential biases in the formulas in Exchanges and because the simplified In § 156.430(c)(4) of the interim final identified by commenters. We are also methodology should produce results rule we set forth a simplified clarifying how QHP issuers should that are similar to the standard methodology for calculating the amount calculate the effective cost-sharing methodology. However, one commenter of cost sharing that enrollees would parameters for self-only coverage, other argued that the choice of methodologies have paid under the standard plan than self-only coverage, medical could inflate Federal costs because QHP without cost-sharing reductions. We coverage, and pharmaceutical coverage. issuers will likely choose whichever established that a QHP issuer selecting Lastly, we are clarifying how the methodology results in the largest the simplified methodology must simplified methodology should apply payments. That commenter suggested calculate the amount that the enrollees when an enrollee is assigned to a that QHP issuers should only be would have paid under the standard different plan variation or is assigned permitted to choose between the plan by applying four summary, or from a plan variation to the standard simplified and standard methodologies ‘‘effective cost-sharing parameters’’ for plan (or vice versa) during the course of for the first two years. Other the standard plan—the effective the benefit year. commenters argued that the standards deductible, the effective pre-deductible Comment: In general, commenters in § 156.430(c)(3) on selecting a coinsurance rate, the effective post- supported the simplified methodology, methodology should adequately deductible coinsurance rate, and the and no commenters suggested any safeguard against potential gaming. In effective claims ceiling—to the total significantly different methodology. addition, commenters noted that it allowed costs paid for EHB under the Some commenters stated that the could take QHP issuers up to 18 months policy (that is, the policy with cost- simplified methodology will produce to develop the systems necessary to sharing reductions) for the benefit year. results that are not substantially support the standard methodology, and This simplified methodology allows different from the standard that therefore HHS should provide at QHP issuers to calculate enrollee methodology, but others proposed least one year’s notice before requiring liability under the standard plan using certain modifications that they said a transition to the standard a standardized methodology that does would improve the accuracy of the

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methodology, particularly when applied modifications to the simplified each separate deductible, and excluding to certain types of plan designs. methodology to improve the accuracy of services that are not subject to any Specifically, three commenters noted the calculations. deductible). Conversely, in paragraph that the effective deductible and First, we are making several minor (c)(4)(iii)(B), we are defining effective effective claims ceiling parameters, as edits to clarify the standards originally non-deductible cost sharing to be established in the interim final rule, established. We are reordering some of calculated based only on standard plan may result in the overestimation or the text in the definitions of the policies with total allowed costs for underestimation of enrollee liability effective pre-deductible and effective EHB for the benefit year that are above under a standard plan with certain post-deductible coinsurance rates to the effective deductible but for which benefit structures. For example, because mirror the structure of the other associated cost sharing for EHB is less the effective deductible was defined as definitions. Also, in response to the than the annual limitation on cost the weighted average of the deductibles comment asking about mid-year changes sharing, and equal to the average for the standard plan, excluding services in eligibility for cost-sharing reductions, portion of total allowed costs for EHB not subject to the deductible, Formula B we are clarifying in § 156.430(c)(4) that that are not subject to any deductible for (described in § 156.430(c)(4)(i)(B)) may the effective cost-sharing parameters, or the standard plan for the benefit year overestimate the cost sharing under the one minus the actuarial value of the incurred for standard plan enrollees and standard plan for those enrollees who standard plan, as appropriate, should be payable by the enrollees as cost sharing. incur claims costs greater than the applied to the total allowed costs for We are also modifying the definition of effective deductible, because they EHB for the benefit year under each effective deductible (which was initially receive services that are not subject to policy that was assigned to a plan set forth in paragraph (c)(4)(ii)(A), but the deductible. In addition, because the variation for any portion of the benefit has been renumbered in this final rule effective claims ceiling was calculated year. We note that a similar standard to be paragraph (c)(4)(iii)(C)), to be the based on the annual limitation on cost would apply to the standard sum of the average deductible and the sharing, which may only apply to in- methodology. This will ensure that QHP average total allowed costs for EHB that network benefits (as described in 45 issuers are reimbursed for cost-sharing are not subject to any deductible for the CFR 156.130(c)), Formula C (described reductions provided to enrollees that are standard plan for the benefit year. The in § 156.430(c)(4)(i)(C)) may only assigned to a plan variation for a average total allowed costs for EHB that underestimate cost sharing under the portion of the year. We are also are not subject to any deductible for the standard plan for enrollees who incur clarifying in paragraphs (c)(4)(ii) and standard plan for the benefit year must large out-of-network claims. In light of (iii) that the effective cost-sharing be calculated based only on standard these potential biases, one commenter parameters should be calculated based plan policies with total allowed costs suggested that in-network cost sharing on policies assigned to the standard for EHB for the benefit year that are should be calculated separately from plan without cost-sharing reductions for above the average deductible but for out-of-network cost sharing. Other the entire benefit year. If a particular which associated cost sharing for EHB is commenters suggested that the QHP enrollee cancels his or her standard plan less than the annual limitation on cost issuer’s actuary should be allowed policy mid-year, or is re-assigned to a sharing. Lastly, we are making greater flexibility in the calculation of plan variation, the costs incurred by that conforming modifications to the an average deductible and an average enrollee should not be included in the definition of effective claims ceiling claims ceiling, based on the actual calculation of the effective cost-sharing (which was initially set forth in claims experience of enrollees in the parameters for the standard plan paragraph (c)(4)(ii)(D), but has been standard plan. One commenter because partial-year data could reduce renumbered in this final rule to be suggested that the issuer’s actuary the accuracy of the parameters. We also paragraph (c)(4)(iii)(F)), to be calculated should be required to submit an considered requiring QHP issuers to as follows: actuarial memorandum with a separate costs by month based on the justification of any modifications to the assignment of an enrollee to a particular ECC = ED + ((AL ¥ AD ¥ NDCS)/ effective cost-sharing parameters, plan variation or standard plan, or PostD) demonstrating that the modifications requiring QHP issuers to annualize costs Where, were necessary due to the benefit design across the benefit year. However, these ECC = the effective claims ceiling; and result in a more accurate replication approaches would have significantly ED = the effective deductible; of the standard plan’s cost sharing. complicated the methodology and AL = the annual limitation on cost sharing; We also received a comment asking AD = the average deductible; potentially reduced its accuracy. NDCS = the effective non-deductible cost how mid-year changes in enrollee Second, in response to comments that sharing; and eligibility for cost-sharing reductions Formula B (described in PostD = the effective post-deductible would affect the application of the § 156.430(c)(4)(i)(B)) may overestimate coinsurance rate. simplified methodology. the cost sharing under the standard plan Response: Overall, we believe the if the enrollees receive services that are Building off of these new definitions, simplified methodology will yield not subject to a deductible, we are we are modifying the definition of results that are substantially similar to modifying several of the formulas and effective post-deductible coinsurance the results that would be produced effective cost-sharing parameters to rate (initially set forth in paragraph using the standard methodology. In more accurately estimate cost sharing (c)(4)(ii)(C), but renumbered as addition, we believe it is important that for services that are subject to a paragraph (c)(4)(iii)(E)) to be calculated issuers choosing the simplified deductible and services that are not as follows: methodology use standard formulas and subject to a deductible. Specifically, in PostD = (CSDp)/(TACDp ¥ AD) parameters to reduce the analytical paragraph (c)(4)(iii)(A), we are defining Where, burden on issuers, ensure the the average deductible to be the PostD = the effective post-deductible transparency of the calculations, and weighted average deductible for the coinsurance rate; reduce the potential for gaming. standard plan (weighted by allowed CSDp = the portion of average allowed costs Nevertheless, in response to these costs for EHB under the standard plan for EHB subject to a deductible incurred comments, we are finalizing several for the benefit year that are subject to for enrollees for the benefit year, and

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payable by the enrollees as cost sharing for EHB under the policy for the benefit may not apply to benefits provided out- other than through a deductible; year, multiplied by the effective pre- of-network (as allowed under 45 CFR AD = the average deductible; and deductible coinsurance rate. 156.130(c)), we are allowing issuers to TACDp = the average total allowed costs for We are also adding a paragraph to elect to use, on a policy-by-policy basis, EHB subject to a deductible incurred for clarify how the simplified methodology the standard methodology to calculate those enrollees for the benefit year (we distinguish TACD from the TACD ; should be applied to HMO-like plans (or the amount of cost sharing that such p i plans with HMO-like characteristics in TACDp refers to average total allowed enrollees would have paid under the costs for EHB subject to a deductible for certain subgroups) with no costs or few standard plan. This modification will all the policies that are part of the costs that are subject to a deductible. allow QHP issuers to capture the value calculation—which in this case, are Specifically, in paragraph (c)(4)(vi) we of cost-sharing reductions for enrollees standard plan policies with total allowed provide that if more than eighty percent who incur large claim amounts for costs for EHB for the benefit year that are of the total allowed costs for EHB for the services from out-of-network providers. above the effective deductible but for benefit year under a standard plan for a Comment: Commenters noted that which associated cost sharing for EHB is subgroup that requires a separate set of due to statistical aberrations under the less than the annual limitation on cost effective cost-sharing parameters simplified methodology, it is possible— sharing (that is, policies that do not incur enough cost sharing for the annual pursuant to paragraph (c)(4)(ii) are not though unlikely—that the calculated limitation on cost sharing to affect the subject to a deductible, then (i) The amount of cost sharing that enrollees cost sharing), while TACDi refers to the average deductible, the effective non- would have paid under the standard total allowed costs for EHB subject to a deductible cost sharing, and the plan could be less than what they deductible for a particular policy). effective deductible for the subgroup actually paid under the plan variation. These terms are then used in a equal zero; (ii) the effective pre- The commenter suggested that the modified Formula B (described in deductible coinsurance rate for the amount that the enrollees would have § 156.430(c)(4)(i)(B)), and detailed subgroup is equal to the effective post- paid in cost sharing under the standard below, for plan variation policies with deductible coinsurance rate for the plan be set at no less than what they total allowed costs for EHB for the subgroup, which is determined based on paid under the plan variation. Response: Although we acknowledge benefit year that are greater than the all standard plan policies for the applicable subgroup for which that in certain cases, the calculated effective deductible but less than the associated cost sharing for EHB is less amount of cost sharing that enrollees effective claims ceiling, to calculate the than the annual limitation on cost would have paid under the standard amount that enrollees would have paid sharing, and calculated for the plan could be less than what the under the standard plan without cost- applicable subgroup as the proportion of enrollees in a particular policy actually sharing reductions. paid under the plan variation, any such Formula B: C = AD + NDCS + ((TACD the total allowed costs for EHB under i results would likely be balanced by ¥ AD) * PostD) the standard plan for the benefit year incurred for standard plan enrollees and results for other policies that Where, payable as cost sharing (including cost overestimate the cost sharing that the C = the amount that the enrollees in a sharing payable through a deductible); enrollees would have paid under the particular policy would have paid under and (iii) the amount that enrollees in the standard plan. As a result, we do not the standard plan without cost-sharing believe it is necessary to modify the reductions; applicable subgroup in plan variation AD = the average deductible; policies with total allowed costs for simplified methodology. However, we NDCS = the effective non-deductible cost EHB for the benefit year that are less note that we do not intend to charge a sharing; than the effective claims ceiling would QHP issuer for cost-sharing reductions TACDi = the total allowed costs under the have paid under the standard plan must across all enrollees in a plan variation policy for the benefit year for EHB that be calculated using the formula in in the very unlikely event that the are subject to a deductible; § 156.430(c)(4)(i)(A). In effect, we are simplified methodology suggests that a PostD = the effective post-deductible merging Formulas A and B for these negative amount of cost-sharing coinsurance rate; and reductions were provided to all such ¥ plans (or these subgroups), and are ((TACDi AD) * PostD) is calculated only removing the distinction between the enrollees in the aggregate during the if positive. calculation of cost sharing for costs benefit year. We believe this formula will more incurred before the deductible is met Comment: We received comments on accurately capture cost sharing in plans versus the calculation after the § 156.430(c)(4)(ii) of the interim final that subject certain services to deductible is met. This modification rule, which directs issuers to calculate deductibles but exempt others (while should simplify calculations for issuers the effective cost-sharing parameters imposing other forms of cost sharing). of these plans (or these subgroups), and separately for self-only coverage and In addition, we note that the new improve the accuracy of the simplified other than self-only coverage, and definition of effective deductible will methodology we are finalizing here for provides the option to calculate separate likely cause some plan variation these plans (or these subgroups). parameters for pharmaceutical and policies that previously would have Lastly, in response to comments, we medical services if the QHP has entirely been subject to calculation under are modifying Formula C (described in separate cost-sharing parameters for Formula B to become subject to Formula § 156.430(c)(4)(i)(C)), which applies to each of these types of services. Two A, which we are finalizing as plan variation policies with total commenters suggested that issuers established in the interim final rule. As allowed costs for EHB for the benefit should be allowed to calculate a single described in paragraph (c)(4)(i)(A), year that are greater than or equal to the set of effective cost-sharing parameters Formula A applies to plan variation effective claims ceiling, and is used to if the cost-sharing parameters of the policies with total allowed costs for calculate the amount of cost sharing that other than self-only coverage are better EHB for the benefit year that are less those enrollees would have paid under replicated at the individual level (for than or equal to the effective deductible, the standard plan. First, we are example, for plan designs applying and calculates the amount that the simplifying the formula established in individual level deductibles first). The enrollees would have paid under the the interim final rule. Second, because same commenters also suggested that standard plan as the total allowed costs the annual limitation on cost sharing issuers should be allowed to calculate

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separate parameters for pharmaceutical cost-sharing parameters for only medical costs and self-only and medical services even when the pharmaceutical and medical services, pharmaceutical costs). costs are not adjudicated by a separate but does not have separate cost-sharing In relation to in-network and out-of- vendor. Similarly, for QHPs in which a parameters for self-only coverage and network costs, we clarify that although large portion of allowed charges are other than self-only coverage, the QHP QHP issuers are not required to reduce subject to co-pays but not deductibles, issuer must calculate and apply separate out-of-network cost sharing to meet the the commenters suggested that issuers sets of effective cost-sharing parameters actuarial value requirements for the should be allowed to calculate separate based on the medical costs of the silver plan variations, as described on effective cost-sharing parameters for enrollees in the standard plan, and the page 15481 of the 2014 Payment Notice, those services. Another commenter pharmaceutical costs of the enrollees in if a QHP issuer chooses to reduce out- suggested that QHP issuers should the standard plan. This standard is not of-network cost sharing, they will calculate separate effective cost-sharing tied to whether or not the receive reimbursement for those parameters for benefits provided in- pharmaceutical costs are adjudicated reductions. In addition, QHP issuers network versus benefits provided out-of- separately by a vendor, but depends on must eliminate cost sharing for both in- network because enrollee liability often whether or not the cost sharing network and out-of-network covered differs significantly for these benefits. accumulates to separate deductibles and EHB for the zero cost sharing plan The commenter also suggested that if annual limitations on cost sharing. variation, as well as for the limited cost the QHP issuer made no reductions in Lastly, in paragraph (c)(4)(ii)(C), we sharing plan variation when the service cost sharing for benefits provided out- state that if the standard plan has is furnished by the Indian Health of-network (that is, the out-of-network separate cost-sharing parameters for Service, an Indian Tribe, Tribal cost-sharing parameters for the standard self-only coverage and other than self- Organization, or Urban Indian plan match the out-of-network cost- only coverage, and also has separate Organization, or through referral under sharing parameters for the plan cost-sharing parameters for contract health services, as described in variation), the QHP issuer should be pharmaceutical and medical services, 45 CFR 156.420(b). Nevertheless, we are able to exclude costs for benefits the QHP issuer must calculate and not requiring, nor allowing, QHP issuers provided out-of-network and the apply separate sets of effective cost- to calculate separate effective cost- applicable cost-sharing parameters from sharing parameters based on the sharing parameters for in-network and the simplified methodology medical costs of enrollees in the out-of-network costs. We believe that the modifications to Formula C should calculations. Similarly, the QHP issuer standard plan with self-only coverage, address much of the bias in the should be allowed to exclude costs for the pharmaceutical costs of enrollees in simplified methodology that could be benefits paid in full by the issuer for the standard plan with self-only caused by differences in cost-sharing both the standard plan and plan coverage, the medical costs of enrollees parameters for in-network and out-of- variations, with no enrollee liability, in the standard plan with other than network services. In addition, we hope since there are no cost-sharing self-only coverage, and the to limit the number of plans that do not reductions for these benefits. Lastly, one pharmaceutical costs of enrollees in the meet the minimum credibility standard, commenter requested clarification on standard plan with other than self-only whether the effective cost-sharing which as described below and in coverage. While these new standards in parameters for a QHP should be paragraph (c)(4)(v), requires QHP issuers paragraph (c)(4)(ii) may require calculated separately for each rating to use an actuarial value methodology to additional calculations, enrollee area, or across an entire State. calculate the amount that enrollees Response: In response to comments, liability can vary significantly between would have paid under the standard we are adding a new paragraph (c)(4)(ii) these subgroups, as noted by plan, if a standard plan has enrollment and making conforming edits to commenters, and as a result, we believe of fewer than 12,000 member months for paragraphs (c)(4)(i) through (v) of this that separate effective cost-sharing a particular subgroup. We believe that it section to clarify which subgroups of parameters for each subgroup of costs is possible that a large number of costs require a unique set of effective will often lead to more accurate results. standard plans would not have 12,000 cost-sharing parameters. In paragraph For example, if a QHP is subject to the member months for enrollees with out- (c)(4)(ii)(A), we state that if the standard standards in paragraph (c)(4)(ii)(C), the of-network claims costs above the plan has separate cost-sharing QHP issuer must create four sets of applicable effective deductible. parameters for self-only coverage and effective cost-sharing parameters. One of Therefore, we will not provide for other than self-only coverage, but does the sets of effective cost-sharing separate calculations for in-network and not have separate cost-sharing parameters would be calculated based out-of-network costs. parameters for pharmaceutical and on self-only coverage of medical In response to the comments medical services, the QHP issuer must services (for example, the average suggesting that QHP issuers should be calculate and apply separate sets of deductible would be the medical allowed to exclude costs for benefits effective cost-sharing parameters based deductible for self-only coverage). The without cost-sharing reductions, we on the costs of enrollees in the standard effective cost-sharing parameters for the note that in many cases, these costs plan with self-only coverage, and the subgroup would then be applied to the would accumulate towards certain cost- costs of enrollees in the standard plan total allowed medical costs for EHB of sharing parameters, such as a deductible with other than self-only coverage. We enrollees with self-only coverage under or the annual limitation on cost sharing. clarify that if the cost-sharing a plan variation policy, as described in Therefore, we are not finalizing any parameters for other than self-only paragraph (c)(4)(i). To determine the change permitting an issuer to exclude coverage accumulate at the enrollee- total amount that enrollees in the plan such claims. As discussed above, to level and match the parameters for self- variation policy with self-only coverage address plans with cost-sharing only coverage, then the standard plan would have paid under the standard structures where a large proportion of would not be subject to subparagraph plan without cost-sharing reductions, costs are not subject to a deductible, we (c)(4)(ii)(A) or (C). the QHP issuer would add the amounts have provided for a simplified, In paragraph (c)(4)(ii)(B), we clarify calculated pursuant to paragraph coinsurance-based calculation in that if the standard plan has separate (c)(4)(i) for each subgroup of costs (self- paragraph (c)(4)(vi). Finally, we note

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that QHP issuers cannot create separate paragraph on reporting as paragraph appropriate. Last, we requested effective cost-sharing parameters for (c)(4)(iv), and specifying that a QHP comments on the composition of the each rating area. issuer using the simplified methodology subgroups, whether they appropriately In § 156.430(c)(4)(iii) of the interim must submit to HHS, in the manner and divide enrollees based on their final rule, we established reporting timeframe established by HHS, the utilization patterns, whether any standards for QHP issuers that elect to effective cost-sharing parameters, subgroups are required, and whether use the simplified methodology. We calculated pursuant to paragraph low enrollment in one subgroup should specified that QHP issuers must submit (c)(4)(iii), for each standard plan offered prompt the QHP issuer to use the to HHS, in the manner and timeframe by the QHP issuer in the individual actuarial value for enrollees in all established by HHS: The effective market through the Exchange for each subgroups or just the subgroup with low deductible; the effective pre-deductible set of circumstances described in enrollment. coinsurance rate; the effective post- paragraph (c)(4)(ii). Therefore, if a QHP Comment: We received one comment deductible coinsurance rate; the issuer must calculate multiple sets of on this section, suggesting that the effective claims ceiling; and a effective cost-sharing parameters as credibility standard should apply to memorandum developed by a member described in paragraph (c)(4)(ii), the both the standard plan and the plan of the American Academy of Actuaries QHP issuer must submit each set of variations because even if the effective in accordance with generally accepted parameters to HHS. A QHP issuer may cost-sharing parameters are based on at actuarial principles and methodologies submit one actuarial memorandum as least 12,000 member months, applying that describes how the QHP issuer long as it describes how the QHP issuer them to a small number of plan calculated the effective cost-sharing calculated each set of effective cost- variation policies could produce parameters for the standard plan. This sharing parameters for each standard unusual results. The same commenter information will allow HHS to ensure plan. We will provide guidance on the noted that because actuarial value is a that QHP issuers are calculating the manner and timeframe of this measure of the issuer’s liability, one effective cost-sharing parameters submission in the future. minus the actuarial value should be correctly. We sought comments on applied to the total allowed costs for As discussed in the interim final rule, whether HHS should require any other EHB for each policy offered under the we recognize that because the effective data submissions or establish any plan variation for the benefit year in pre- and post-deductible coinsurance additional standards to oversee these order to determine the cost sharing that rates are calculated based on the average provisions. enrollees would have paid under the Comment: One commenter experience of the enrollees in the standard plan. recommended that HHS put in place standard plan, low enrollment in the Response: In response to these robust processes to monitor QHP issuers standard plan could lead to inaccurate comments, we are correcting the using the simplified methodology to effective coinsurance rates. Therefore, instructions for calculating enrollee cost limit the potential for overpayments. we provided additional standards sharing based on actuarial value in the The commenter suggested that HHS related to the simplified methodology in renumbered paragraph (c)(4)(v). We are reserve the authority to review and § 156.430(c)(4)(iv) to address credibility not expanding the credibility standard approve all QHP issuer submissions for concerns that may result from low to apply to enrollment in each plan the simplified methodology and the enrollment in the standard plan. We variation since this would likely require resulting reconciliation amount— established that if a standard plan has many more QHP issuers to use the particularly if such amounts are an enrollment during the benefit year of standard or actuarial value substantially different from the advance fewer than 12,000 member months (that methodology, rather than the simplified payment amounts. Another commenter is, the sum of the months that each methodology. However, we are adding a suggested that HHS collect detailed data enrollee is covered by the plan) in any ‘‘cap’’ to the actuarial methodology, on the payments made by QHP issuers of four subgroups, and the QHP issuer such that QHP issuers whose standard to providers to ensure that providers are has selected the simplified plan does not meet the credibility reimbursed, particularly providers methodology, then the QHP issuer must standard must calculate the amount that associated with the Indian Health calculate the amount that all enrollees enrollees would have paid under the Service, an Indian Tribe, Tribal in the plan variation (in all subgroups) standard plan as the lesser of the annual Organization, or Urban Indian would have paid under the standard limitation on cost sharing for the Organization. plan by applying the standard plan’s standard plan or the amount derived Response: To ensure that QHP issuers actuarial value, as calculated under through the actuarial value using either the standard or simplified § 156.135, to the allowed costs for EHB methodology. This approach will reduce methodology submit accurate for the enrollees for the benefit year. the likelihood that plan variations with information for cost-sharing reduction The credibility standard of 12,000 small enrollment will report amounts payment reconciliation, we are member months aligns with a similar that are materially inaccurate. finalizing cost-sharing reduction standard used by the Medicare Part D We are also modifying paragraph oversight standards in § 156.480 of this program; however, we sought comments (c)(4)(v) to align with the standards final rule. Specifically, § 156.480(c) on the appropriate number of member established in paragraph (c)(4)(ii) and to provides HHS with the authority to months to achieve credible use of the clarify how the minimum credibility audit an issuer to assess compliance simplified methodology. We also sought standard should be applied to each with the cost-sharing reduction comments on whether the standard subgroup. In addition, we are removing standards, including standards related plan’s actuarial value applied to the the minimum credibility standard to reconciliation and provider allowed costs for EHB for enrollees for described in the interim final rule in reimbursement, detailed in 45 CFR the benefit year would provide an subparagraphs (c)(4)(iv)(A) and (C), 156.430(c). appropriate estimate of the amount of related to enrollees with total allowed We are also clarifying in this final rule cost sharing that enrollees would have costs for EHB for the benefit year that the standards for reporting information paid under the standard plan without are less than or equal to the effective on the effective cost-sharing parameters. cost-sharing reductions, or whether an deductible. This change should simplify Specifically, we are renumbering the alternative approach would be more the credibility analysis, with little

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impact on the ultimate credibility of the categories: (i) Coverage of medical (4)(i) through (4)(iii) of the interim final effective cost-sharing parameters services, or (ii) coverage of rule (or paragraph (4)(iv), if applicable). because it is unlikely that a standard pharmaceutical services. We sought comments on whether we plan would have adequate enrollment (C) The standard plan has separate should adopt such an approach, and on with costs above the effective cost-sharing parameters for self-only the specifics outlined above. In deductible, but low enrollment with coverage and other than self-only particular, we sought comments on the costs below the effective deductible. As coverage, has separate cost-sharing types of plans, if any, for which it discussed in the interim final rule, a parameters for pharmaceutical and would be difficult to fairly calculate the subgroup is not necessary for enrollees medical services, and has an enrollment amount that enrollees would have paid with cost sharing for EHB above the during the benefit year of fewer than under the standard plan without cost- annual limitation on cost sharing 12,000 member months for coverage sharing reductions using the simplified because the experience of this with total allowed costs for EHB for the methodology, and their prevalence. We population is not used to calculate the benefit year that are greater than the sought comments on the standard that effective cost-sharing parameters. effective deductible, but for which should apply for determining whether Therefore, in § 156.430(c)(4)(v) of this associated cost sharing for EHB is less the plan will be exempted from using final rule, we establish that if a QHP than the annual limitation on cost the simplified methodology, and how issuer’s standard plan meets certain sharing, in any of the following HHS should make that determination. criteria, and the QHP issuer has selected categories: (i) Self-only coverage of Finally, we requested comments on the simplified methodology described in medical services, (ii) self-only coverage what estimation methodology should be this paragraph (c)(4), then the QHP of pharmaceutical services, (iii) other used if the plan is determined to be issuer must calculate the amount that than self-only coverage of medical exempt, and if it is not. enrollees in the plan variation would services, or (iv) other than self-only We did not receive any specific have paid under the standard plan coverage of pharmaceutical services. comments on this proposal, though as without cost-sharing reductions as the (D) The standard plan does not have noted above, some commenters lesser of the annual limitation on cost separate cost-sharing parameters for suggested that for certain plan designs, sharing for the standard plan or the pharmaceutical and medical services, the simplified methodology may result amount equal to the product of, (x) one does not have separate cost-sharing in the overestimation or minus the standard plan’s actuarial parameters for self-only coverage and underestimation of enrollee liability, value, as calculated under 45 CFR other than self-only coverage, and has and as a result, the QHP issuer’s actuary 156.135, and (y) the total allowed costs an enrollment during the benefit year of should be allowed greater flexibility in for EHB for the benefit year under each fewer than 12,000 member months with the calculation of an average deductible policy that was assigned to a plan total allowed costs for EHB for the and an average claims ceiling, as long as variation for any portion of the benefit benefit year that are greater than the the calculations are justified in the year. effective deductible, but for which actuarial memorandum. In subparagraphs (A) through (D) of associated cost sharing for EHB is less Because we did not receive any § 156.430(c)(4)(v), we detail the than the annual limitation on cost comments supporting this proposal, or minimum credibility criteria that sharing. any examples of plans for which the prompt a QHP issuer to use the actuarial In the interim final rule, we noted the simplified methodology would not value methodology: possibility that for a very small number adequately approximate cost sharing, (A) The standard plan has separate of plans with unique cost-sharing we are not finalizing this approach. cost-sharing parameters for self-only structures, the amounts that enrollees Comment: We received a comment coverage and other than self-only would have been paid under the plan that relates generally to the coverage, does not have separate cost- might not be fairly estimated using the reconciliation of cost-sharing reduction sharing parameters for pharmaceutical simplified methodology. We considered payments. The commenter asked and medical services, and has an a process in which a QHP issuer of such whether a QHP issuer that is using the enrollment during the benefit year of a plan may notify HHS if it believes that standard methodology must re- fewer than 12,000 member months for this is the case for one or more of its adjudicate the claims sequentially as if coverage with total allowed costs for plans. We considered requiring such a the enrollees were in the standard plan. EHB for the benefit year that are greater notification within ninety days of the Response: QHP issuers using the than the effective deductible, but for beginning of the applicable benefit year, standard methodology should which associated cost sharing for EHB is and we considered requiring the QHP adjudicate the claims in a manner that less than the annual limitation on cost issuer to provide information on the will yield an accurate calculation of the sharing, in either of the following unique plan design supporting the QHP amount of cost sharing that enrollees categories: (i) Self-only coverage, or (ii) issuer’s assessment. would have paid under the standard other than self-only coverage. Under this approach, if HHS were to plan. If sequential adjudication of (B) The standard plan has separate agree with the assessment, we claims is not necessary to do so, the cost-sharing parameters for considered requiring the QHP issuer to issuer is not required to engage in pharmaceutical and medical services, calculate the amount that enrollees sequential adjudication. does not have separate cost-sharing would have paid under the standard parameters for self-only coverage and plan without cost-sharing reductions by Summary of Regulatory Changes other than self-only coverage, and has applying the standard plan’s actuarial We are modifying § 156.430(c)(3) to an enrollment during the benefit year of value, as calculated pursuant to 45 specify that QHP issuers may only fewer than 12,000 member months for CFR156.135, to the allowed costs for choose the simplified methodology for coverage with total allowed costs for EHB for the enrollees for the benefit calculating the amounts that would EHB for the benefit year that are greater year. If HHS were to disagree with the have been paid under the standard plan than the effective deductible, but for issuer’s assessment, the QHP issuer without cost-sharing reductions for which associated cost sharing for EHB is would calculate such amounts using the benefit years 2014 through 2016. We less than the annual limitation on cost effective cost-sharing parameters under also are modifying § 156.430(c)(4) to sharing, in either of the following the approach described in paragraphs address unique benefit structures and

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reduce potential biases in the formulas. Response: In consideration of the reporting standard. We require issuers We are clarifying how QHP issuers timeframes for enrollment reconciliation to report if they did not reduce the should calculate the effective cost- and resolution processes we are portion of the premium charged to or for sharing parameters for self-only extending the timeframe for QHP issuers the enrollee for the applicable month(s) coverage, other than self-only coverage, to provide refunds in such cases to by the amount of the advance payment medical services, and pharmaceutical within 45 days of discovery of the error. of the premium tax credit as part of the services. This timeframe aligns with the annual reporting requirements set forth timeframe established under § 156.410 in § 156.480(b) of this final rule. d. Failure To Reduce an Enrollee’s with respect to misapplication of cost- Summary of Regulatory Changes Premium To Account for Advance sharing reductions. Payments of the Premium Tax Credit Comment: Several commenters We are finalizing these provisions as (§ 156.460(c)) suggested that issuers be allowed to proposed with the following We also proposed to add new apply such refundable amounts to the modifications. We are increasing the paragraph (c) to § 156.460, providing premium due in subsequent months time period for issuing refunds from 30 that if a QHP issuer discovers that it did through the end of the benefit year, and to 45 days. We are also permitting the not reduce the portion of the premium that a refund be provided only at the QHP issuer to apply the total excess charged to or for the enrollee for the request of the enrollee. One commenter premium paid by or for the enrollee to applicable month(s) by the amount of noted that issuing a partial refund and the enrollee’s portion of the premium the advance payment of the premium partial credit in a given month may be each month for the remainder of the tax credit as required in § 156.460(a)(1), confusing to consumers, and does not period of enrollment or benefit year, the QHP issuer would be required to align with standard practice today. except that the QHP issuer must refund refund to the enrollee any excess Another commenter recommended that the excess premium within 45 days of premium paid by or for the enrollee and consumers should have the option of a request for the refund by or for the enrollee or within 45 days following the notify the enrollee of the improper receiving a refund directly. end of the period of enrollment or application no later than 30 calendar Response: In response to comments, benefit year. days after the QHP issuer discovers the we are modifying the proposed policy in this final rule. In particular, if a QHP error. We noted that a QHP issuer may e. Oversight of the Administration of issuer discovers that it did not reduce provide the refund to the enrollee by Cost-Sharing Reductions and Advance an enrollee’s premium by the amount of reducing the enrollee’s portion of the Payments of the Premium Tax Credit the advance payment of the premium premium in the following month, as Programs (§ 156.480) tax credit, then, upon request by or for long as the reduction is provided no the enrollee, the QHP issuer must In § 156.480, we proposed general later than 30 calendar days after the refund to the enrollee any excess provisions related to the oversight of QHP issuer discovers the improper premium paid by or for the enrollee QHP issuers in relation to cost-sharing reduction. If the QHP issuer elects to within 45 calendar days of discovery of reductions and advance payments of the provide the refund by reducing the the improper reduction. However, if a premium tax credit. We proposed to enrollee’s portion of the premium for direct refund is not requested, the QHP apply certain standards proposed in Part the following month, and the refund issuer may apply the total remaining 156, subpart H for QHP issuers exceeds the enrollee’s portion of the excess premium paid by or for the participating in FFEs to QHP issuers premium for the following month, then enrollee to the enrollee’s portion of the participating in the individual market the QHP issuer would need to refund to premium each month for the remainder on a State Exchange. In paragraph (a), the enrollee the excess no later than 30 of the period of enrollment or benefit we proposed to extend the standards set calendar days after the QHP issuer year, until the excess is fully applied. If forth in proposed § 156.705 concerning discovers the improper reduction. We any excess premium paid by or for the maintenance of records to a QHP issuer also noted that we were also considering enrollee remains at the end of the period in the individual market on a State that for each quarter beginning in 2015, of enrollment or benefit year, the QHP Exchange in relation to cost-sharing a QHP issuer would be required to issuer would be required to refund the reductions and advance payments of the provide a report to HHS and the excess within 45 calendar days of premium tax credit. We also proposed Exchange, in a manner and timeframe discovery or the error. that QHP issuers ensure that any specified by HHS, detailing the Additionally, we clarify that this delegated and downstream entities occurrence of instances of improper provision would not prevent a QHP adhere to these requirements. We noted applications of the requirements of issuer from recouping excess funds from that a QHP issuer and its delegated and § 156.460. the enrollee, if the QHP reduced the downstream entities may satisfy this Comment: Several commenters enrollee’s portion of the premium by standard by maintaining the relevant supported a 30-day timeframe for more than the advance payment of the records for a period of 10 years and issuers to refund excess advance premium tax credit. ensuring that they are accessible if payment of the premium tax credit to Comment: Two commenters needed in the event of an investigation enrollees, while other commenters supported a standard requiring quarterly or audit. stated that a 60-day timeframe is more error reports, although one suggested We also proposed that QHP issuers realistic. Another recommended a 90- that such reports be delayed until 2016. participating in State Exchanges and day timeframe given the challenges of One commenter recommended a semi- FFEs be subject to reporting and enrollment reconciliation and resolution annual report. Another commenter oversight requirements. In particular, in of discrepancies. One commenter noted stated that such reports duplicate paragraph (b), we proposed that an that associated refunds are commonly information in the monthly enrollment issuer that offers a QHP in the performed through batch processing reconciliation reports. individual market through a State which could take more than 30 calendar Response: Taking into consideration Exchange or an FFE report to HHS days to correct, and suggested that HHS the comments received and to align annually, in a timeframe and manner allow a longer timeframe to account for with the policy finalized in § 156.410, required by HHS, summary statistics such administrative processes. we are not establishing a quarterly with respect to administration of cost-

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sharing reductions and advance Insurance Marketplace Call Center, Summary of Regulatory Changes payments of the premium tax credit. where such reports will be entered into We are finalizing these provisions and Additionally, in paragraph (c) we the casework tracking system and modifying paragraph (b) to specify that proposed that HHS or its designee may addressed by CMS. the annual reports must contain audit an issuer that offers a QHP in the Comment: One commenter asked HHS summary statistics with respect to the individual market through a State to clarify that any self-reported error application of cost-sharing reductions Exchange or an FFE to assess rates will not be used as a basis for civil and advance payments of the premium compliance with the requirements of money penalties or decertification, since tax credit, including any failure to this subpart and ensure appropriate use both penalties may be imposed for non- adhere to the standards set forth under of Federal funds. § 156.410(a) through (d), § 156.425(a) Comment: In response to proposed compliance with cost-sharing reduction and advance payment of the premium through (b), and § 156.460(a) through (c) § 156.480(b), several commenters stated of this Part. that the annual reports will be critical tax credit requirements. Another to protecting consumer rights, while commenter asked HHS to provide 5. Subpart H—Oversight & Financial others argued that this information will guidance on how it will collect and Integrity Requirements for Issuers of already be in HHS’s possession. Another respond to reports of non-compliance by Qualified Health Plans in Federally- commenter recommended that HHS rely QHP issuers and others. Facilitated Exchanges on market conduct examinations to Response: HHS will collect a. Maintenance of Records for Federally- conduct oversight. One commenter information from QHP issuers on the Facilitated Exchanges (§ 156.705) asked for more information on the administration of cost-sharing We proposed in § 156.705(a) that rationale for and content of these reductions and advance payments of the issuers offering QHPs in an FFE reports. premium tax credit, including error maintain all documents and records Response: As discussed in the rates, through the annual reports (whether paper, electronic, or other proposed rule, the annual reports will described in § 156.480(b). We anticipate media) and other evidence of permit HHS to obtain summary that this information will be used to accounting procedures and practices, information regarding cost-sharing inform an oversight and audit strategy reductions and advance payments of the which are critical for HHS to conduct with respect to these programs, and will activities necessary to safeguard the premium tax credit across a broad range be provided to the State Exchanges and of issuers and identify any systemic financial and programmatic integrity of utilized by the FFE as applicable for the FFEs. We proposed that such issues and errors, without requiring oversight and enforcement activities annual audits. These reports will activities include: (1) Periodic auditing such as decertification and CMPs. We of the QHP issuer’s financial records contain information not available to note that the 2014 policy of HHS through other channels, such as related to the QHP issuer’s participation nonenforcement of CMPs in instances of in an FFE, and to evaluate the ability of data on misapplications of cost-sharing good faith established in § 156.800 reductions and advance payments of the the QHP issuer to bear the risk of would apply in 2014 with respect to potential financial losses; and (2) premium tax credit. We believe that a such errors. consolidated report from all applicable compliance reviews and other issuers with respect to these programs Comment: One commenter suggested monitoring of a QHP issuer’s will assist HHS in effectively targeting limiting the record retention compliance with all Exchange standards oversight activities and identifying requirement to 6 years, while another applicable to issuers offering QHPs in problems that affect multiple issuers. supported the proposed timeframe. the FFE listed in part 156. We proposed Comment: One commenter asked HHS Response: As previously noted in this limiting the scope of this requirement to to clarify the meaning of ‘‘delegated final rule, we are finalizing the Exchange-specific records as applicable entities’’ and ‘‘downstream entities’’ maintenance of records provisions to the FFEs. In § 156.705(b), we that are subject to the requirement, and retention standard as proposed, in proposed that the records described in noted that the requirement should only alignment with the statute of limitations proposed paragraph (a) of this section apply to entities responsible for keeping for the False Claims Act and existing include the sources listed in proposed records associated with advance Exchange regulations. § 155.1210(b)(2), (b)(3), and (b)(5) in payments of the premium tax credit or order to align the record maintenance Comment: One commenter requested standards of the FFEs and State cost-sharing reductions. that HHS provide further information on Response: The terms ‘‘delegated Exchanges to the extent possible. In the timeframe and procedure of entity’’ and ‘‘downstream entity’’ are § 156.705(c), we proposed that issuers proposed audits, suggested that audits defined at § 156.20. Furthermore, as offering QHPs in an FFE must maintain should be limited to three years after the noted in § 156.480(a), the maintenance the records described in this section, as completion of a benefit year, and of records standard applies to relevant well as records required by § 155.710 (to recommended that HHS specify a delegated entities and downstream determine SHOP eligibility), for 10 mechanism by which issuers can entities only in connection with cost- years. Proposed § 156.705(d) explained challenge the audit findings. sharing reductions and advance that the records referenced in paragraph payments of the premium tax credit. Response: We intend to provide (a) must be made available to HHS, the Comment: We received a comment detailed guidance in the future and will OIG, the Comptroller General, or their asking for further guidance on how seek comment on our audit process designees, upon request. We stated that Navigators, consumers, and other prior to finalization in order to ensure the proposed standards pertain only to entities can report instances of non- a transparent program and consistent Exchange-specific areas of concern (for compliance to HHS. audits. We are considering conducting example, matters pertaining to advance Response: We note that consumers, audits in a manner that is coordinated payments of premium tax credits or Navigators, and other entities can report across all programs and FFE compliance cost-sharing reductions) within the issuer non-compliance to HHS through reviews to limit the number of potential FFEs, as HHS would expect the State communication channels offered to audits that an organization would DOI to oversee the maintenance of consumers, such as the Health experience. records pertaining to other aspects of

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QHP issuer operations as required under b. Compliance Reviews of QHP Issuers the process by which QHP issuers will State law. in Federally-Facilitated Exchanges be notified formally of HHS’s intent to Comment: Several commenters (§ 156.715) issue a CMP or decertify one or more of requested that HHS require maintenance In § 156.715 we proposed that QHP their QHPs, the grounds for the and review of records related to issuers will be subject to compliance enforcement action, and other specified particular standards in part 156, review by HHS to ensure ongoing information, including information including QHP provider network compliance with Exchange standards about the process for requesting an adequacy, and the availability of applicable to issuers offering QHPs in appeal. The 30-day clock for requesting essential community providers. FFEs. We proposed the scope of the an appeal under 45 CFR 156.905(a) starts on the date of issuance of HHS’s Commenters also requested that HHS compliance reviews and the window of notice of intent to issue a CMP under review documentation related to time that such compliance reviews § 156.805 or notice of decertification of wellness programs, rating rules, could be conducted. a QHP under § 156.810(c) or (d). By essential health benefit requirements, Comment: We received comments contrast, 45 CFR 155.1080 requires that and other applicable market reforms supporting HHS’s authority to conduct notice be sent to the QHP issuer, included in the Affordable Care Act, compliance reviews of QHP issuers in enrollees in the QHP, and the State DOI particularly in direct enforcement the FFEs and no comments opposing when the decertification is final and no States. this provision. Response: We are finalizing our longer appealable. Furthermore, 45 CFR Response: Under § 156.715, which we policy as proposed. 155.1080 does not apply in the case of are finalizing in this final rule, HHS will a CMP. We are finalizing 45 CFR part be conducting compliance reviews to Summary of Regulatory Changes 156, subpart J as proposed, except for a ensure that issuers offering QHPs in the We are finalizing this provision with minor change to § 156.963, described FFE comply with Exchange standards as the correction of a typographical error in below. applicable to them. These include the paragraph (c). standards related to network adequacy Summary of Regulatory Changes under § 156.230 and the standards 6. Subpart J—Administrative Review of We are finalizing these provisions of related to essential community QHP Issuer Sanctions in a Federally- 45 CFR part 156, subpart J as proposed, providers under § 156.235. Section Facilitated Exchange with two exceptions. We are not 156.705 only applies to maintenance of a. Administrative Review in a Federally- finalizing § 156.949, and we are making records pertaining to FFEs, as we expect Facilitated Exchange (§§ 156.901 a minor change to correct the reference that QHP issuers will also have to Through 156.963) to the ‘‘final order’’ in § 156.963. We are comply with other aspects of issuer In Subpart J, we proposed the replacing ‘‘the final order described in operations as required under state law. administrative hearing process for § 156.945’’ with ‘‘the final order Comment: Several commenters issuers of QHPs in an FFE against which imposing a civil money penalty.’’ recommended the 10-year record an enforcement action has been taken. 7. Subpart L—Quality Standards maintenance standards be reduced to 6 The process is intended to provide the a. Establishment of Standards for HHS- or 7 years. issuer an opportunity to submit Approved Enrollee Satisfaction Survey evidence to be considered by the Response: We are finalizing the Vendors for Use by QHP Issuers in administrative law judge (ALJ) in maintenance of records provisions as Exchanges (§ 156.1105) proposed, in alignment with the statute determining whether a basis exists to In § 156.1105, we proposed processes of limitations for the False Claims Act assess a CMP against or decertify a QHP by which HHS would approve and and existing related regulations. A civil offered by the respondent, and whether oversee enrollee satisfaction survey action may be brought under the False the amount of the assessed CMP is vendors that will administer enrollee Claims Act ‘‘no more than 10 years after reasonable, if applicable. Our proposed process is modeled after the appeals satisfaction surveys on behalf of QHP the date on which the violation is process for individuals and entities issuers. We proposed that enrollee committed.’’ Additionally, similar 10- against which a CMP has been imposed satisfaction survey vendors be approved year record retention standards were in the individual and group health for one year terms and would be previously finalized in the Exchange coverage markets. We did not receive required to submit an annual Establishment Rule and the Premium any comments on our proposed application demonstrating that they Stabilization Rule. We believe that regulations in this Subpart J. meet all of the application and approval maintaining consistency in our record In § 156.805(d), we proposed that, if standards. We also proposed listing retention standards will help ensure HHS proposes to assess a CMP under HHS-approved enrollee satisfaction that entities maintain records across subpart I, HHS will send written notice survey vendors on an HHS Web site. We programs in a consistent manner, of intent to issue a CMP to the QHP received several comments and our allowing HHS and States to coordinate issuer concerned. Similarly, in responses to § 156.1105 are set forth oversight efforts across those program § 156.810(c) and (d), we proposed that, below. areas and reduce the burden on for standard and expedited Comment: Commenters generally stakeholders. QHP issuers have the decertifications, HHS will notify the supported the proposal to establish an choice to maintain records in either QHP issuer, enrollees in the QHP, and application and review process for paper or electronic format. We note that the State DOI in the State in which the enrollee satisfaction survey vendors. the 10-year obligation to retain records QHP is being decertified of HHS’s intent Commenters supported the proposed begins when the record is created. decertify a QHP offered by the issuer. requirements that will ensure that Summary of Regulatory Changes We note that the notice under 45 CFR enrollee satisfaction survey vendors 156.805(d) and 156.810(c) and (d) is abide by standards for integrity, We are finalizing the provisions different from, and in addition to, the including privacy and security proposed in § 156.705 without notice required under 45 CFR 155.1080. standards. Commenters also supported modification. In § 156.805 and § 156.810, we set forth establishing standards for QHP issuers

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to use only HHS-approved vendors to standards required of QHP issuers, as enrollee satisfaction survey, including ensure consistency and integrity in specified in 45 CFR 156.200(e). requests that the survey assess: Provider enrollee satisfaction survey Comment: Commenters requested that satisfaction with QHP issuers and the administration. enrollee satisfaction survey vendors experience of families and pediatricians Response: We are adopting the translate the enrollee satisfaction survey that interact with the Exchange for their regulation as proposed to have HHS into different languages for populations children’s coverage, and satisfaction approve and oversee enrollee representing a certain enrollment with Exchanges overall, including the satisfaction survey vendors that meet threshold, for example any language for eligibility determination processes, plan certain standards. As stated in the which a QHP issuer’s enrollment meets selection, and in-person and telephonic proposed rule, we intend to promulgate a threshold of 5 percent or 1000 primary assistance. Other commenters requested future rulemaking requiring QHP issuers speakers. that HHS ensure experience of the to contract with HHS-approved survey Response: Enrollee satisfaction survey Exchange is not attributed to QHP issuer vendors to administer enrollee vendors will not be responsible for performance. Finally, commenters cited satisfaction surveys. By finalizing as translating the enrollee satisfaction their previously submitted comments in proposed, we are ensuring that enrollee survey. HHS is developing the enrollee response to an HHS solicitation for satisfaction survey vendors will be satisfaction survey system as required comments on enrollee satisfaction approved by mid-2014. We believe that by section 1311(c)(4) of the Affordable measures and asked that their comments this will allow QHP issuers adequate Care Act and will provide translated be considered.20 time to contract with these vendors by versions of the survey to ensure Response: Comments with regard to late 2014, prior to the implementation of consistency across all surveys. HHS will the content of the surveys are outside any relevant quality reporting standards. provide enrollee satisfaction survey the scope of this final rule, which Comment: Commenters suggested that vendors with versions in English, includes standards for the application HHS utilize one enrollee satisfaction Spanish, and Chinese, which align with and approval process for enrollee survey vendor on behalf of all QHPs. current translation standards for the satisfaction survey vendors. However, as ® Commenters also suggested that issuers Medicare Advantage CAHPS Health previously mentioned, commenters can have a role in the survey vendor Plan surveys. review the draft surveys as part of the application process. Comment: Commenters supported the Enrollee Satisfaction Survey Data recommendation that HHS utilize the Collection, including the QHP Survey Response: We believe that allowing ® multiple enrollee satisfaction survey CAHPS Health Plan survey as a model and the Marketplace Survey. Comments vendors the opportunity to apply for for the enrollee satisfaction survey to submitted in response to the June 21, approval will encourage a competitive assess patient experience with QHP 2013 call for measures will be issuers. Another commenter suggested considered in the development of the market of qualified enrollee satisfaction ® survey vendors. Therefore, HHS is using the existing CAHPS Health Plan enrollee satisfaction survey. survey without modification. finalizing the proposal to establish a Summary of Regulatory Changes standardized process to review and Response: As stated in the proposed approve multiple enrollee satisfaction rule, we intend to establish in future We are finalizing the provisions survey vendors. We intend for QHP rulemaking that the enrollee satisfaction proposed in § 156.1105 without ® issuers, along with the public, to have survey will be modeled on the CAHPS modification. 5.0 Health Plan survey, which assesses an opportunity to provide comments on 8. Subpart M—Qualified Health Plan patients’ satisfaction and experience other draft documents related to the Issuer Responsibilities enrollee satisfaction survey vendor with their health care, personal doctors, application and approval process. and health plans. In a Federal Register a. Confirmation of HHS Payment and 19 Further, while QHP issuers will not Notice published June 28, 2013, we Collections Reports (§ 156.1210) have a direct role in HHS review and sought public comment on the Enrollee We noted in the proposed rule that we approval of enrollee satisfaction survey Satisfaction Survey Data Collection, anticipate sending each applicable vendors, QHP issuers are expected to including the draft surveys. issuer a monthly payment and have a choice of enrollee satisfaction Commenters may wish to review the collections report. This report will survey vendors with which to contract, draft enrollee satisfaction surveys. show, with respect to certain provisions including those with which the issuers Comment: Commenters requested that under Title I of the Affordable Care Act, may already have a business CMS articulate detailed implementation payments the Federal government owes relationship, for example, to administer standards for the enrollee satisfaction to the issuer, as well as those the issuer other surveys like the Consumer survey. Commenters also requested that owes the Federal government. For the Assessment of Healthcare Providers and results of the survey be shared with 2014 benefit year, we anticipate issuing Systems (CAHPS®) survey on behalf of State Exchanges. a detailed monthly report, also known the issuer. Additionally, QHP issuers Response: As indicated in the as the HIX 820, that will describe the will have the opportunity to provide to proposed rule, we are planning to issue advance payments of the premium tax HHS comment and feedback related to future regulations that will include credit and advance payments of cost- the work of approved enrollee detailed implementation standards for sharing reductions that the Federal satisfaction survey vendors. the enrollee satisfaction surveys as they government is paying to the issuer for relate to QHP issuers and Exchanges. Comment: Commenters requested each policy listed on the payment Further, 45 CFR 155.205(a)(iv) requires affirmation that enrollee satisfaction report, any amounts owed by the issuer Exchanges to display the enrollee survey vendors would be required to for FFE user fees, as well as any satisfaction results on their Web sites. adhere to non-discrimination standards. adjustments from previous payments Comment: Several commenters made Response: Enrollee satisfaction survey remarks about the content of the vendors, as ‘‘delegated entities’’ of QHP 20 Request for Domains, Instruments, and Measures for Development of a Standardized issuers defined in 45 CFR 156.20 and set 19 Agency Information Collection Activities: Instrument for Use in Public Reporting of Enrollee forth in 45 CFR 156.340, would be Proposed Collection; Comment Request, 78 FR Satisfaction With Their Qualified Health Plan and required to meet any non-discrimination 38986 (June 28, 2013). Exchange 77 FR 37409 (June 21, 2012).

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under those programs. The issuer will that there should be at least a 60-day lag report are payments to and from the need to review this detailed payment between the dates covered by the Federal government. and collections report against the payment and collections report and the III. Collection of Information payments it expects for each policy date it is sent to issuers. Requirements based on the eligibility and enrollment Response: We are aware that in some information transmitted by the cases, particularly in this first year of Under the Paperwork Reduction Act Exchange, and any amounts it expects operations, issuers may find it difficult of 1995, we are required to provide 30- the Federal government to collect for to perform a full analysis of the payment day notice in the Federal Register and FFE user fees.21 In § 156.1210 we and collections report and provide a solicit public comment before a proposed that, within 15 calendar days response. However, it is largely due to collection of information requirement is of the date of a payment and collections the challenges of the first year of submitted to the Office of Management report, the issuer would either confirm operations that we proposed a 15-day and Budget (OMB) for review and to HHS that the payment and collections verification period—this short time lag approval. In order to fairly evaluate report accurately lists payments owed will help HHS adjust any discrepancies whether an information collection by and to the issuer for the timeframe as soon as possible. As we discuss should be approved by OMB, section specified in the payment and collections below, if an issuer is unable to meet the 3506(c)(2)(A) of the Paperwork report, or would describe to HHS any 15-day timeline, it will have later Reduction Act of 1995 requires that we inaccuracy it identifies in these amounts opportunities to note discrepancies. solicit comment on the following issues: (including incorrect payment amounts, Comment: Several commenters • The need for the information or extra or missing policies in the expressed concern about the potential collection and its usefulness in carrying report). These notifications would be consequences of failing to report a out the proper functions of our agency. provided in a format specified by HHS. discrepancy. Other commenters • The accuracy of our estimate of the We stated that HHS will work with suggested that there should be a information collection burden. issuers to resolve any discrepancies retroactive payment correction process, • The quality, utility, and clarity of between the amounts listed in the HIX or an appeals process, to update the information to be collected. 820 payment and collections report and eligibility and enrollment • Recommendations to minimize the the amounts the issuer believes it determinations based upon information information collection burden on the should receive for the time period received late. affected public, including automated specified in the report. This proposed Response: We recognize that there are collection techniques. provision’s verification timeframe helps legitimate circumstances in which an The following sections of this align enrollment and eligibility data issuer might not discover an inaccuracy document contain estimates of burden transmitted by the Exchange, payments within the 15-day timeline set forth in imposed by the associated information provided by and collected by the § 156.1210, and we do not wish to collection requirements (ICRs); Federal government, and the issuer’s penalize an issuer in such however, not all of these estimates are own records of payments due. This circumstances. Therefore, we are adding subject to the ICRs under the PRA for provision will also help ensure that the a new paragraph (b) to § 156.1210 the reasons noted. Estimated salaries for correct amounts of advance payments of stating that HHS will work with issuers the positions cited were mainly taken the premium tax credit and cost-sharing to resolve discrepancies reported by an from the Bureau of Labor Statistics reductions are paid to issuers on behalf issuer after the 15-day deadline, as long (BLS) Web site (http://www.bls.gov/oco/ of eligible individuals in a timely as the late discovery of the discrepancy ooh_index.htm). The estimated salaries manner. The ability of HHS to identify was not due to misconduct on the part for the health policy analyst and the and correct these errors promptly of the issuer. We are also considering senior manager were taken from the protects enrollees from unanticipated establishing in future rulemaking a final Office of Personnel Management Web tax liability that could result if the deadline after which discrepancies site. Fringe Benefits estimates were advance payments of the premium tax cannot be reported, as well as an taken from the BLS March 2013 credit they receive are greater than the administrative appeals process that Employer Costs for Employee amounts of premium tax credit would be available to issuers that are Compensation Report.22 authorized by the Exchange and not satisfied with the result of that We are soliciting public comment on accepted by the enrollee. process. each of these issues for the following Comment: We received several Summary of Regulatory Changes sections of this document that contain comments seeking further information We are finalizing § 156.1210, with the information collection requirements about the HIX 820 payment and (ICRs): collections report. following modifications. We are Response: In the fall of 2013, HHS redesignating paragraphs (a) and (b) as A. ICRs Regarding Program Integrity intends to publish a Companion Guide paragraphs (a)(1) and (a)(2) and are Provisions Related to State Operation of to the HIX 820 payment and collections adding a new paragraph (b) to state that the Reinsurance Program (§ 153.260) if an issuer reports a discrepancy in a report. HHS offered related issuer In § 153.260, we direct a State- payment and collections report later training in September. operated reinsurance program to: (1) than 15 calendar days after the date of Comment: Some commenters Keep an accurate accounting of the report, HHS will work with the suggested that issuers would need at reinsurance contributions, payments, issuer to resolve the discrepancy as long least 30 days to analyze and respond to and administrative expenses; (2) submit the late reporting by the issuer was not the HIX 820 payment and collections to HHS and make public a summary due to misconduct on the part of the report. Another commenter suggested report on program operations; and (3) issuer. And because HHS’s payments engage an independent qualified 21 We note that in order to provide issuers with will technically be made by the U.S. auditing entity to perform a financial more lead time to review the payment and Treasury, we are modifying collections report, HHS also anticipates providing an initial statement listing anticipated payments § 155.1210(a)(1) to clarify that the 22 BLS March 2013 Employer Costs for Employee and charges. Issuers will not be under any payments owed by and to the issuer Compensation Report (March 12, 2013). Available obligation to respond to this initial statement. listed on the payment and collections at: http://www.bls.gov/news.release/ecec.toc.htm.

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and programmatic audit for each benefit contributing entity archives the we estimate an aggregate burden of year, provide the audit results to HHS, documents and records and ensures that $731,310.00 and 19,000 hours as a result and make public a summary of the audit they are accessible if needed in the of this requirement. results. Fewer than 10 States have event of an investigation or audit. The burden estimates for these two informed HHS that they will operate We estimate that 26,200 contributing recordkeeping requirements are broad reinsurance for the 2014 benefit year. entities will be subject to this estimates that include not only the While these reinsurance records requirement, based on the Department maintenance of data, but all records and requirements are subject to the PRA, we of Labor’s (DOL) estimated count of self- documents that may be necessary to believe the associated burden is exempt insured plans and the number of fully substantiate the enrollment count and under 5 CFR 1320.3(c)(4) and 44 U.S.C. insured issuers that we estimate will requests for reinsurance payments made 3502(3)(A)(i), since fewer than 10 make reinsurance contributions.23 We pursuant to 45 CFR 153.405 and entities would be affected. Therefore, believe that most of these contributing 153.410, respectively. Because the scope we are not seeking approval from OMB entities will already have the systems in of these requirements is substantially for these information collection place for record maintenance, and that narrower than the scope of the requirements. the additional burden associated with recordkeeping requirement applicable to this requirement is the time, effort, and a State operating reinsurance, these B. ICRs Regarding Program Integrity additional labor cost required to estimates are lower than those that were Provisions Related to State Operation of maintain the records. On average, we set forth for the State-operated the Risk Adjustment Program estimate that it will take each reinsurance programs record (§ 153.310(c)(4) and § 153.310(d)(3)–(4), contributing entity approximately 5 maintenance requirement (45 CFR and § 153.365) hours annually to maintain records. We 153.240(c)) in the Premium Stabilization In § 153.310(c)(4), § 153.310(d)(3)–(4), estimate that it will take an insurance Rule published March 23, 2012 (77 FR and § 153.365, we require a State operations analyst 5 hours (at $38.49 per 17220), and the associated information operating risk adjustment to: (1) Retain hour) to meet the requirements in collection request approved under OMB records for a 10-year period; (2) submit § 153.405(h). On average, the cost for Control Number 0938–1155. We note an interim report in its first year of each contributing entity would be that we will account for the additional operation; (3) submit to HHS and make approximately $192.45 annually. burden associated with submitting this public a summary report on program Therefore, for 26,200 contributing information to HHS in a future operations for each benefit year; and (4) entities, we estimate an aggregate information collection request that will keep an accurate accounting for each burden of $5,042,190.00 and 131,000 go through the requisite notice and benefit year of all receipts and hours as a result of this requirement. comment period and subsequent OMB expenditures related to risk adjustment In § 153.410(c), we require issuers of review and approval process. payments, charges, and administrative reinsurance-eligible plans to maintain D. ICRs Related to Oversight and expenses. Fewer than 10 States have documents and records, whether paper, informed HHS that they will operate Financial Integrity Standards for State electronic, or in other media, sufficient Exchanges (§ 155.1200 to § 155.1210) risk adjustment for the 2014 benefit to substantiate the requests for year. Since the burden associated with reinsurance payments made pursuant to In subpart M of part 155, we describe collections from fewer than 10 entities § 153.410(a) for a period of at least 10 the information collection and third- is exempt from the PRA under 5 CFR years, and must make that evidence party disclosure standards related to the 1320.3(c)(4) and 44 U.S.C. 3502(3)(A)(i), available upon request to HHS, the OIG, oversight and financial integrity of State we are not seeking approval from OMB the Comptroller General, or their Exchanges. for the risk adjustment information designees, (or, in the case of a State Section 155.1200(a)(1) through (3) collection requirements. However, if operating reinsurance, the State or its requires the State Exchange to follow more than nine States elect to operate designees), for purposes of verification GAAP and to monitor and report to HHS risk adjustment in the future, we will of reinsurance payment requests. We all Exchange-related activities. This seek approval from OMB for these estimate that 1,900 issuers of includes keeping an accurate accounting information collections. reinsurance-eligible plans will be of all Exchange receipts and expenditures. The burden associated C. ICRs Regarding Maintenance of subject to this requirement, based on HHS’s most recent estimate of the with this reporting requirement is the Records for Contributing Entities and time and effort needed to develop and number of fully insured issuers that will Issuers of Reinsurance-Eligible Plans submit reports of Exchange-related submit requests for reinsurance (§ 153.405(h) and § 153.410(c)) activities to HHS. The State Exchanges payments. On average, we estimate that will electronically maintain the In § 153.405(h) and § 153.410(c), we it will take each issuer of a reinsurance- information as a result of normal included record retention standards for eligible plan approximately 10 hours business practices; therefore, the burden contributing entities and issuers of annually to maintain the records. We does not include the time and effort reinsurance-eligible plans. In estimate that it will take an insurance needed to maintain the Exchange- § 153.405(h), we require contributing operations analyst 10 hours (at $38.49 related activity information. State entities to maintain documents and per hour) to meet these requirements. Exchanges most likely will already have records, whether paper, electronic, or in On average, the cost estimate for each accounting systems in place to store other media, sufficient to substantiate issuer is approximately $384.90 accounting information. The burden the enrollment count submitted annually. Therefore, for 1,900 issuers, pursuant to § 153.405(b) for a period of associated with this requirement at least 10 years, and to make those 23 We use an estimate of self-insured entities includes a computer programmer taking documents and records available upon published by the DOL in the March 2013 ‘‘Report 8 hours (at $48.61 an hour) to modify request to HHS, the OIG, the to Congress: Annual Report of Self-insured Group the system to maintain and monitor the Comptroller General, or their designees, Health Plans,’’ which reflects only those self- information required under insured health plans (including 19,800 self-insured for purposes of verification of plans and 4,000 plans that mixed self-insurance and § 155.1200(a)(1) through (3), an analyst reinsurance contribution amounts. This insurance) that are required to file a Form 5500 taking 8 hours (at $58.05 an hour) to requirement may be satisfied if the with the DOL. pull the necessary data under

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§ 155.1200(a)(1) through (3) in the State and submission of the reported data. summary of the results of the external Exchange accounting system, and a The burden also includes the time and financial audit. The burden associated senior manager taking 2 hours (at $77.00 effort necessary to post the data on the with this requirement is the time and an hour) to oversee the development State Exchange Web site. We estimate effort for a computer programmer taking and transmission of the reported data. an initial year burden of 58 hours at a 1 hour (at $48.61 an hour) to design the We estimate that it will take 18 total cost of $3,082.64 to each State summary and for an analyst to take 1 hours at a cost of $1,007.28 for each Exchange. Therefore, for the 18 State hour (at $58.05 an hour) to pull data State Exchange. Therefore, for the 18 Exchanges, we estimate an aggregate into the summary and prepare for public State Exchanges, we estimate an burden of $55,487.52 and 1,044 hours as display. For this requirement we aggregate burden of $18,131.04 and 324 a result of this requirement. estimate in the initial year a burden of hours as a result of this requirement. As discussed in § 155.1200(b)(3), the 2 hours for the State Exchanges at a cost Section 155.1200(b)(1) requires the State Exchange will report performance of $107.00 each and a total burden of State Exchange to submit a financial monitoring data to HHS. The $1926.00. Therefore, for the 18 State statement, in accordance with GAAP to performance monitoring data includes Exchanges, we estimate an aggregate HHS. The information under information on financial sustainability, burden of $1926.00 and 36 hours as a § 155.1200(b) must be submitted at least operational efficiency, and consumer result of this requirement. annually by April 1 to HHS and must satisfaction which will be reported on Section 155.1200(c)(1) through (3) also be publicly displayed. The burden an annual basis. The State Exchanges directs the State Exchange to engage an associated with this reporting will electronically maintain the independent audit/review organization requirement is the time and effort information as a result of normal to perform an external financial and needed to develop and submit the business practices developed under programmatic audit of the State financial statement to HHS. The State Establishment Grants from HHS for this Exchange. The State Exchange must Exchanges will electronically submit the purpose. Therefore the burden does not provide the results of the audit and information. Therefore, the burden is include the time and effort needed to identify any material weakness or the time and effort needed to develop develop and maintain the performance significant deficiency and any intended and publically display the financial data. The burden associated with corrective action. The State Exchange statement. The State Exchanges will meeting the reporting requirement must also make public a summary of the electronically maintain the information includes the time and effort necessary audit results. The burden associated as a result of normal business practices, for a computer programmer taking 40 with meeting this third party disclosure therefore the burden does not include hours (at $48.61 an hour) to design the requirement includes the burden for an the time and effort needed to develop report, for an analyst taking 12 hours (at analyst level employee taking 3 hours and maintain the financial information. $58.05 an hour) to pull data into the (at $48.61 an hour) to pull data into a The burden associated with this report and prepare for submission to report, the time and effort necessary for requirement includes a computer HHS and for a senior manager taking 2 a health policy analyst taking 2 hours (at programmer taking 40 hours (at $48.61 hours (at $77.00 an hour) to oversee the $58.05 an hour) to prepare the report of an hour) to design the financial development and transmission of the the audit results, and the time for senior statement report, an analyst taking 8 reported data. Section 155.1200(b) management taking 1 hour (at $77.00 an hours (at $58.05 an hour) pulling the requires the State Exchange to submit to hour) to review and submit to HHS. We necessary data and inputting it into the HHS and to display publicly financial, estimate a burden of 6 hours at a cost financial statement report, and a senior eligibility and enrollment reports and of $338.93 for each State Exchange. manager taking 2 hours (at $77.00 an performance data at least annually. For Therefore, for the 18 State Exchanges, hour) overseeing the development and those measures reported annually, we we estimate an aggregate burden of transmission of the reported data. We estimate that in the initial year a burden $6,100.74 and 108 hours as a result of estimate a burden of 50 total hours for of 54 hours at a cost of $2,795.00 for this requirement. each State Exchange at a cost of each State Exchange. Therefore, for the As stated in § 155.1210(a), the State $2,562.80. Therefore, for the 18 State 18 State Exchanges, we estimate an Exchange and its contractors, Exchanges, we estimate an aggregate aggregate burden of $50,031.00 and 972 subcontractors, and agents must burden of $45,410.40 and 900 hours as hours as a result of this requirement. For maintain for 10 years, books, records, a result of this requirement. subsequent years, when the documents, and other evidence of Section 155.1200(b)(2) requires the Establishment Grant project period ends accounting procedures and practices. State Exchange to submit eligibility and we estimate an additional burden of 208 Section 155.1210(b) specifies that the enrollment reports to HHS. The State hours necessary for the computer records include information concerning Exchanges will electronically maintain programmer (at $48.61 an hour) to management and operation of the State the information as a result of normal maintain the performance data. For the Exchange’s financial and other record business practices, therefore the burden first year, the burden for maintaining keeping systems. The records must also does not include the time and effort the data was already accounted for in include financial statements, including required to develop and maintain the the PRA package for the Exchange cash flow statements, and accounts source information. The burden Establishment Grants (OMB Control receivable and matters pertaining to the associated with this reporting Number 0938–1119); therefore, we are costs of operation. Additionally, the requirement includes the time and effort only including subsequent years in the records must contain any financial necessary for a computer programmer ICR. We estimate that the total burden report filed with other Federal programs taking 40 hours (at $48.61 an hour) to from year 1 will decrease to $25,016.00 or State authorities. Finally, the records design the report template, an analyst assuming a decreased effort and an must contain data and records relating taking 8 hours (at $58.05 an hour) to additional burden of $18,1996.00 for to the State Exchange’s eligibility compile the statistics for the report for maintaining the data, yielding a total verifications and determinations, submission to HHS, a privacy officer burden of $44,012.00 for subsequent enrollment transactions, appeals, plan taking 8 hours (at $64.98 an hour) and years. variation certifications, QHP contracting senior manager taking 2 hours (at $77.00 Section 155.1200(b)(4) requires the data, consumer outreach, and Navigator an hour) overseeing the development State Exchange to make public a grant oversight information. State

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Exchanges most likely already have estimate the incremental effect of the the error, when the QHP issuer systems in place to store records. The simplified methodology, we compared improperly reduces the premium by the burden associated with this record the burden of the standard methodology amount of the advance payment of the keeping requirement includes the time to the simplified methodology for those premium tax. A parallel provision is and effort necessary for a network issuers that we assumed would select established under § 155.340 when the administrator taking 16 hours (at $46.86 the simplified methodology. As Exchange is facilitating the collection of an hour) to modify the State systems to discussed in the Collection of premiums. Additionally, in § 156.410(c) maintain the information required Information section in the 2014 and (d) a QHP issuer must notify the under § 155.1210(b), for a health policy Payment Notice, we estimated that enrollee within 45 calendar days of the analyst taking 8 hours (at $58.05 an 1,200 issuers will participate in an QHP issuer’s discovery of the error of a hour) to enter the data under Exchange nationally and will incur total misapplication of the cost-sharing § 155.1210(b) into the State Exchange costs of approximately $138 million reduction or the improper assignment to record retention system, and for senior using the standard methodology. In a plan variation (or standard plan management taking 2 hours (at $77.00 contrast, in the interim final rule, we without cost-sharing reductions) and an hour) to oversee record collection estimated that each issuer using the subsequent reassignment. We believe and retention. We estimate that it will simplified methodology would incur that these notifications will be take 26 hours at a cost of $1,368.16 for labor costs of 40 hours of work by an effectuated as part of standard billing each State Exchange. Therefore, for the actuary (at a wage rate of $56.89) and 20 practices and therefore will not create 18 State Exchanges, we estimate an hours of work by an insurance manager an additional burden on the Exchange aggregate burden of $24,626.88 and 468 (at a wage rate of $67.44) to develop the or QHP issuers. Therefore, we do not hours as a result of this requirement. effective cost-sharing parameters and estimate a burden for this notification. E. ICRs Related to Change of Ownership actuarial memorandum, and calculate In § 156.480(a), we extend the (§ 156.330) the amount of cost-sharing reductions standards set forth in proposed provided, resulting in a cost of The QHP issuer must notify HHS of § 156.705 concerning maintenance of approximately $3,624 per issuer.24 records to a QHP issuer in the the change in a manner to be specified Because we have modified the by HHS and provide the legal name and individual market on State Exchange simplified methodology in this final with respect to cost-sharing reductions tax identification number of the new rule, we are updating this estimate to owner of the QHP and the effective date and advance payments of the premium require 42 hours of work by an actuary tax credit. We believe that the burden of of the change of ownership. The and 22 hours of work by an insurance information must be submitted at least maintaining records related to cost- manager, resulting in a cost of sharing reductions and advance 30 days prior to the effective date of the approximately $3,873 per issuer. change of ownership. We estimate fewer payments of the premium tax credit for Although we cannot predict the precise QHP issuers in an FFE is already than 10 QHP issuers will report changes number of issuers that will select either of ownership. While this reporting accounted for in the burden for finalized the standard or simplified methodology, § 156.705, described elsewhere in the requirement is subject to the PRA, we we estimate that approximately half of believe the associated burden is exempt Collection of Information section of this QHP issuers (600 issuers) will final rule. In § 156.480(b), we establish under 5 CFR 1320.3(c)(4) and 44 U.S.C. implement the simplified methodology. 3502(3)(A)(i), since fewer than 10 that, for each benefit year, an issuer that Therefore, we estimate that the offers a QHP in the individual market entities would be affected. Therefore, provisions of this rule will result in an we are not seeking approval from OMB through a State Exchange or an FFE incremental savings of approximately report to HHS annually, in a timeframe for these information collection $57,676,164 ($60 million that would requirements. and manner required by HHS, summary have been incurred by these issuers statistics with respect to cost-sharing F. ICRs Related to Payment for Cost- under the standard methodology, minus reductions and advance payments of the Sharing Reductions (§ 156.430) 600 multiplied by $3,873) by reducing premium tax credit. In the proposed Several of the provisions established the overall administrative costs that rule we stated that we believed that in the interim final rule and finalized in issuers incur. QHP issuers would already have the this final rule require the collection of The information collections information and data systems in place information. associated with these provisions are necessary to generate a summary report, First, under paragraph (c)(3)(i) as subject to the Paperwork Reduction Act; and that there would only be a small established in the interim final rule, and however, the information collection additional burden as a result of this finalized in this rule, a QHP issuer must process and instruments are currently submission requirement. We estimated notify HHS prior to the start of each under development. We will seek OMB that it would take an insurance benefit year whether or not it selects the approval and solicit public comments operations analyst 16 hours (at $38.49 simplified methodology for the benefit upon their completion. an hour) annually and one senior year. Pursuant to the Paperwork G. ICRs Related to Oversight of Cost- manager 2 hours (at $77.00 an hour) to Reduction Act of 1995, we detailed this Sharing Reductions and Advance gather summary information and information collection in a notice Payments of the Premium Tax Credit prepare a report for submission to HHS. requesting comment in the Federal (§ 155.340, § 156.410, § 156.460 and Therefore, we estimated an additional Register (78 FR 38983), and estimated § 156.480) burden of 21,600 hours and total costs the total burden of this request to be of approximately $923,808 for 1,200 $3,600,000 for 2014 through 2016. Section 156.460 requires a QHP issuer QHP issuers ($769.84, on average, for In § 156.430(c)(4) of the interim final to notify the enrollee within 45 calendar each QHP issuer) as a result of this rule, we established a simplified days of the QHP issuer’s discovery of requirement. However, in this final rule, methodology for calculating the value of we are adding a requirement that these 24 HHS relied on the Bureau of Labor Statistics, the amount that the enrollees would U.S. Department of Labor, National Compensation summary reports include information have paid under the standard plan Survey Occupational Earnings in the United States, on misapplication of cost-sharing without cost-sharing reductions. To 2011, for estimates of job descriptions and wages. reductions and advance payments of the

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premium tax credit. We estimate that administrator (at $46.86 an hour), 15 information issuers must make available will take an insurance operations hours by a compliance officer (at $53.75 to an FFE in conducting such reviews. analyst 3 hours (at $38.49 an hour) an hour), and 10 hours for a senior Compliance reviews evaluate a QHP annually and one senior manager 1 manager to review (at $77.00 an hour). issuer’s compliance with the Affordable hours (at $77.00 an hour) to gather and We estimate that it will take 100 hours Care Act and applicable regulations. prepare this additional information for total at a cost of $5,693.00 for a QHP Compliance reviews will target high-risk the summary report, resulting in an issuer to maintain these records for an QHP issuers and not every issuer will be additional burden of 4,800 hours and aggregate burden of 47,500 hours and reviewed each year. The results of total costs of approximately $230,964 $2,704,175 for all 475 QHP issuers. compliance reviews will also provide for 1,200 QHP issuers ($192.84, on Section 156.705(d) provides that QHP insight into trends across the average, for each issuer). This would issuers must make all records described compliance statuses of QHP issuers, increase the total burden for the in paragraph (a) of this section available enabling HHS to prioritize areas of summary reports to 26,400 hours and to HHS, the OIG, the Comptroller oversight and technical assistance. total costs to approximately $1,154,772. General, or their designees, upon We assume that HHS will conduct request. In estimating the annual hour H. ICRs Related to Oversight and desk reviews of 31 QHP issuers each and cost burden on QHP issuers of year. For each QHP issuer desk review Financial Integrity Standards for Issuers making these records available to such of Qualified Health Plans in Federally- we estimate an average of 40 hours of authorities upon request, we assumed administrative work to assemble the facilitated Exchanges (§ 156.705 to that such requests would normally be § 156.715) requested information by a health policy made in connection with a formal audit analyst (at $58.05 an hour), 19.5 hours The burden estimates for the or compliance review or a similar to review the information for collections of information in Part 156, process. Our burden estimates for this completeness and an additional 30 Subpart H, of the regulation reflect the section address the hour and cost minutes for a compliance officer to assumption that the FFEs will include burden of making records available to submit the information to HHS (at 475 QHP issuers. We update the number HHS, the OIG, the Comptroller General, $53.75 an hour). There will also be an of issuers in the FFEs from the or their designees, for audit. Our additional 10 hours to spend on phone estimated number in the proposed rule estimates reflect our assumptions that interviews conducted by the compliance to reflect more current information on about 47 QHP issuers would be subject reviewer and 2 hours to spend speaking the number of issuers expected to to a formal audit in a given year and that through processes with the compliance participate in the FFEs. The labor the burden on issuers of making the reviewer (at $53.75 an hour). We categories and salary estimates used to records available would include the estimate it will take 72 hours at a cost calculate the cost burden of these time, effort, and associated cost of of $4,042.00 for an issuer to make collections on issuers are derived from compiling the information, reviewing it information available to HHS for a desk the Bureau of Labor Statistics’ (BLS) for completeness, submitting it to the review for a total of 2,232 hours and May 2012 Occupational Employment auditor(s), and participating in Statistics data for selected occupations. telephone or in-person interviews. We $125,302.00 across all issuers that may These burden estimates generally reflect anticipate using a risk-based approach be subject to this information collection burden for the first year. to selection of the majority of QHP requirement. Section 156.705 provides that issuers issuers for compliance review so that We assume that HHS will conduct offering QHPs in an FFE must maintain burdens to the issuer community would onsite reviews of 16 QHP issuers each all documents and records (whether generally be linked to the QHP issuers’ year. For each onsite review we estimate paper, electronic or other media), and risk. This reflects 75 hours of work by it will take an average of 40 hours for other evidence of accounting procedures an actuary (at $56.89 an hour), 10 hours a health policy analyst (at $58.05 an and practices necessary for HHS to by a compliance officer (at $53.75 an hour) to assemble the requested conduct activities necessary to hour), and 5 hours for a senior manager information, and 19.5 hours for a safeguard the financial and to review (at $77.00 an hour).We compliance officer (at $53.75 an hour) to programmatic integrity of the FFEs. estimate it will take 90 hours at a cost review the information for completeness Such activities include: (1) periodic of $5,189.25 for an issuer to make its and 30 minutes to submit the auditing of the QHP issuer’s financial records available for an audit for a total information to HHS in preparation for records, including data related to the of 4,230 hours and $243,894.75 across an onsite review. An onsite review QHP issuer’s ability to bear the risk of all QHP issuers subject to this requires an additional 2 hours to potential financial losses; and (2) requirement, which we estimate at an schedule the onsite activities with the compliance reviews and other upper end as 100 issuers. compliance officer (at $53.75 an hour), monitoring of a QHP issuer’s Section 156.715 establishes the 4 hours for introductory meeting, 8 compliance with all Exchange standards general standard that QHP issuers are hours to tour reviewers onsite, 10 hours applicable to issuers offering QHPs in subject to compliance reviews. Our of interview time, 2 hours to walk the FFEs listed in part 156. These burden estimates for § 156.715 address through processes with the reviewer, standards are limited to Exchange- the estimated annual hour and cost and 4 hours for concluding meetings. specific records as applicable to the burden on QHP issuers of complying This is a total of approximately 60 hours FFEs, and are not enforced by States as with the records disclosure of preparation time and an additional 30 primary regulators. This standard requirements associated with hours for onsite time for each QHP. We mirrors the maintenance of records compliance reviews conducted by an estimate it will take 90 hours at a cost standard applicable to State Exchanges FFE. of $5,009.50 for an issuer to make and set forth in § 155.1210. The burden Section 156.715 provides standards information available to HHS for an includes utilizing existing technology for compliance reviews in the FFEs, onsite review. We estimate that the and systems to process and maintain stating that QHP issuers offering QHPs burden for all respondents that may be this information. This reflects 60 hours in the FFEs may be subject to subject to this information collection of work by an actuary (at $56.89 an compliance reviews. This section also will be 1,440 hours at a cost of hour), 15 hours by a network describes the categories of records and $80,152.00

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In cases in which HHS could assemble the necessary background Federal government and the issuer; or potentially require clarification around materials described under § 156.907, describe to HHS any inaccuracy it submitted information, HHS may need and prepare the written request (at identifies in the payment and to contact QHP issuers within 30 days $53.75 an hour), 12 hours for an collections report. We believe that of information submission. This would attorney (at $90.14 an hour) to review issuers will generally be able to perform be the case for approximately 20 issuers. the background materials and written this confirmation automatically, and We estimate it will take an issuer 2 request and provide recommendations that there will only be a small hours (at $53.75 an hour) to respond to to the senior manager, and 2 hours for additional burden as a result of this questions for a total of 40 hours and the senior manager (at $77.00 an hour) requirement. We estimate that it will $1,075.00. to discuss and act upon the attorney’s take an insurance operations analyst 1 recommendations and submit the hour (at $38.49 an hour) monthly to I. ICRs Regarding Administrative Review written request. We estimate that it will make the comparison and note any of QHP Issuer Sanctions in a Federally- take 24 hours at a cost of $1,773.18 for discrepancies to HHS (approximately facilitated Exchange (§ 156.901 to an issuer to prepare and submit a § 156.963) $461.88 for each issuer annually). Based request for a hearing for a total of 48 on our most recent estimates, we believe Subpart J of Part 156 sets forth the hours and $3546.36 for each issuer that 2,400 issuers will be affected by administrative process for issuers subject to an enforcement action under this requirement, resulting in aggregate subject to a CMP or decertification of a this scenario. This estimate includes burden of approximately $1,108,512. QHP offered by the issuer to appeal the any statement of good cause under If you comment on these information enforcement action. In this process, an § 156.805(e)(3) or request for extension collection and recordkeeping ALJ decides whether there is a basis for under § 156.905(b), if applicable. requirements, please do either of the HHS to assess a CMP against the issuer Because we only estimate that one following: and whether the amount of an assessed issuer per year would appeal a CMP and 1. Submit your comments penalty is reasonable, or whether there one issuer will have its QHP offered in electronically as specified in the is a basis for decertifying a QHP offered an FFE decertified, we do not include ADDRESSES section of this rule; or by the issuer, as applicable. Section this burden estimate in our overall 2. Submit your comments to the 156.905 (intended to parallel 45 CFR calculation of burden for this rule. Office of Information and Regulatory 150.405) provides that a party has a Affairs, Office of Management and J. ICRs Related to Quality Standards right to a hearing before an ALJ if it files Budget, Attention: CMS Desk Officer, (§ 156.1105) a valid request for a hearing within 30 [CMS–9957–F2], Fax: (202) 395–6974; days after the date of issuance of HHS’s In subpart L of part 156, we describe or Email: OIRA_submission@ notice of proposed assessment or the information collection and omb.eop.gov. decertification. An issuer’s request for a disclosure requirements that pertain to hearing must include the information the approval of enrollee satisfaction IV. Regulatory Impact Analysis listed in § 156.907. Under § 156.907, the survey vendors. The burden estimate In accordance with the provisions of request for a hearing must identify any associated with these disclosure Executive Order 12866, this rule was factual or legal bases for the assessment requirements includes the time and reviewed by the OMB. or decertification with which the issuer effort required for enrollee satisfaction A. Summary disagrees. It must also describe with survey vendors to develop, compile, and reasonable specificity the basis for the submit the application information and This final rule sets financial integrity disagreement, including any affirmative any documentation necessary to support and oversight standards with respect to facts or legal arguments on which the oversight in the form and manner Exchanges; QHP issuers in an FFE; and respondent is relying. The request must required by HHS. HHS is developing a States in regards to the operation of the also identify the relevant notice of model enrollee satisfaction survey risk adjustment and reinsurance assessment or decertification by date vendor application that will include programs. It also provides additional and attach a copy of the notice. data elements necessary for HHS review standards for special enrollment The burden associated with this and approval. In the near future, HHS periods; survey vendors that may request includes the time and effort will publish the model application and conduct enrollee satisfaction surveys on needed by the issuer to create the will solicit public comment. At that behalf of QHP issuers in Exchanges; and written request and submit it to the time, and per the requirements outlined issuer participation in an FFE. In appropriate entity. The associated costs in the PRA, we will estimate the burden addition, this final rule amends and are labor costs for gathering the on survey vendors for complying with adopts as final interim provisions necessary background information this provision of the regulation. We related to risk corridors and cost-sharing described under § 156.907 and then solicit comment on the burden for the reduction reconciliation. Finally, it preparing and submitting the written application and review process for these provides additional standards for statement. entities. guaranteed availability and renewability We base our burden estimate on the and makes certain amendments to the assumptions that one issuer will be K. ICRs Related to Confirmation of definitions and standards related to the subject to a CMP and that one issuer Payment and Collection Reports market reform rules. will have a QHP that it offers in an FFE (§ 156.1210) HHS has crafted this final rule to decertified. We assume that the issuer in In § 156.1210, we establish that, implement the protections intended by each case will choose to exercise its within 15 calendar days of the date of Congress in an economically efficient right to a hearing and will submit a a HIX 820 payment and collections manner. We have examined the effects valid request for hearing. The hours report from HHS, the issuer must, in a of this final rule as required by involved in preparing this request may format specified by HHS, either confirm Executive Order 12866 (58 FR 51735, vary; for the purpose of this burden to HHS that the HIX 820 payment and September 1993, Regulatory Planning estimate we estimate an average of 24 collections report accurately lists, for and Review), the Regulatory Flexibility hours will be needed: 10 hours for the the timeframe specified in the report, Act (RFA) (September 19, 1980, Pub. L. compliance officer to gather and applicable payments owed by the 96–354), section 1102(b) of the Social

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Security Act, the Unfunded Mandates thereof; or (4) raising novel legal or also restricts the use of funds for Reform Act of 1995 (Pub. L. 104–4), policy issues arising out of legal administrative expenses generated for Executive Order 13132 on Federalism, mandates, the President’s priorities, or State Exchanges and State-operated and the Congressional Review Act (5 the principles set forth in the Executive reinsurance programs; specifies U.S.C. 804(2)). In accordance with OMB Order. procedures for oversight of advance Circular A–4, HHS has quantified the A regulatory impact analysis (RIA) payments of the premium tax credit and benefits and costs where possible, and must be prepared for major rules with cost-sharing reductions; provides has also provided a qualitative economically significant effects ($100 procedures to ensure the accuracy of discussion of some of the benefits and million or more in any 1 year), and a data collection, calculations, and costs that may stem from this final rule. ‘‘significant’’ regulatory action is subject submissions; establishes requirements to review by the OMB. OMB has B. Executive Orders 13563 and 12866 for enrollee satisfaction survey vendors; designated this final rule as a establishes standards related to risk Executive Order 12866 (58 FR 51735) ‘‘significant regulatory action.’’ Even corridors and cost-sharing reduction directs agencies to assess all costs and though it is not certain whether it will reconciliation; and provides additional benefits of available regulatory have economic impacts of $100 million standards for special enrollment alternatives and, if regulation is or more in any one year, HHS has periods. necessary, to select regulatory provided an assessment of the potential approaches that maximize net benefits costs and benefits associated with this 2. Summary of Impacts (including potential economic, final regulation. environmental, public health and safety In accordance with OMB Circular A– effects; distributive impacts; and 1. Need for Regulatory Action 4, Table IV.1 below depicts an equity). Executive Order 13563 (76 FR Starting in 2014, qualified individuals accounting statement summarizing 3821, January 21, 2011) is supplemental and qualified employers will be able to HHS’s assessment of the benefits and to and reaffirms the principles, use coverage provided by QHPs— costs associated with this regulatory structures, and definitions governing private health insurance that has been action. The period covered by the RIA regulatory review as established in certified as meeting certain standards— is 2014–2017. Executive Order 12866. through Exchanges. The premium HHS anticipates that the provisions of Section 3(f) of Executive Order 12866 stabilization programs—the reinsurance, this final rule will ensure smooth defines a ‘‘significant regulatory action’’ risk corridors and risk adjustment operation of Exchanges, integrity of the as an action that is likely to result in a programs—will be in place to ensure reinsurance, risk adjustment and risk final rule—(1) Having an annual effect premium stability for health insurance corridors programs, safeguard the use of on the economy of $100 million or more issuers as enrollment increases and Federal funds, prevent fraud and abuse, in any one year, or adversely and issuers enroll high-risk individuals. and increase access to healthcare materially affecting a sector of the This final rule establishes general coverage. Affected entities such as economy, productivity, competition, oversight requirements for State- States and QHP issuers will incur costs jobs, the environment, public health or operated reinsurance and risk to maintain records, submit reports to safety, or State, local or tribal adjustment programs; establishes HHS and Exchanges, and provide governments or communities (also oversight of issuers inside and outside records for compliance reviews. In referred to as ‘‘economically of the Exchange when HHS operates risk addition, QHP issuers that adopt the significant’’); (2) creating a serious adjustment or reinsurance on behalf of simplified methodology for calculating inconsistency or otherwise interfering a State; and establishes oversight and cost sharing reductions will incur lower with an action taken or planned by monitoring of State Exchanges, FFEs, administrative costs during a another agency; (3) materially altering SHOPs (both State Exchanges and FFEs) transitional period. In accordance with the budgetary impacts of entitlement and issuers of QHPs, specifically with Executive Order 12866, HHS believes grants, user fees, or loan programs or the respect to financial integrity, and that the benefits of this regulatory action rights and obligations of recipients maintenance of records. This final rule justify the costs.

TABLE IV.1—ACCOUNTING TABLE

Benefits: Qualitative: * Ensure integrity of the reinsurance and risk adjustment programs, smooth functioning of State Exchanges and FFEs * Prevent fraud and abuse * Ensure prompt refund of any excess premium or cost-sharing paid * Safeguard the use of Federal funds provided as cost-sharing reductions and advance payments of the premium tax credit and provide value for taxpayers’ dollars

Costs: Estimate Year dollar Discount rate Period percent covered

Annualized Monetized ($/year) ...... $15.4 million 1 ...... 2013 7 2014–2017 $15.3 million 1 ...... 2013 3 2014–2017

Annual costs related to financial oversight, maintenance of records and reporting requirements for State Exchanges and State-operated reinsur- ance and risk-adjustment programs; record retention requirements for contributing entities and issuers of reinsurance-eligible plans; audit costs for State Exchanges and State-operated risk adjustment and reinsurance programs; costs for QHP issuers related to reporting require- ments, record maintenance, audits, and training for customer service representatives.

Qualitative: * Costs incurred by enrollee satisfaction survey vendors related to annual application and meeting HHS standards

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TABLE IV.1—ACCOUNTING TABLE—Continued * Reduce administrative costs for QHP issuers by allowing the use of a simplified methodology to calculate cost-sharing reductions during a transitional period * Reduce compliance costs for issuers by allowing a State operating a SHOP-only Exchange to establish and operate risk adjustment pro- grams for both the small group and individual markets Note: 1. Approximately $2.7 million of these costs are estimated below in the RIA, including the audit costs in Table IV.2 and the rest of these costs are estimated in section III.

3. Anticipated Benefits and Costs Federal funds provided as cost-sharing operating reinsurance programs to Starting in 2014, individuals and reductions and advance payments of the maintain any records associated with small businesses will be able to use premium tax credit, and provide value the reinsurance program was previously health insurance coverage purchased for taxpayers’ dollars. estimated in the RIA of the 2014 through Exchanges. The Congressional The provisions of this final rule also Payment Notice as being part of State Budget Office estimated that the number ensure that enrollees are promptly administrative costs associated with of people enrolled in coverage through refunded any excess premium paid or operating the reinsurance program and Exchanges will increase from 7 million any excess cost sharing they should not are not included in this RIA. in 2014 to 24 million in 2017.25 have paid. Individuals harmed by State-operated reinsurance programs Exchanges will create competitive misconduct on the part of non-Exchange will submit to HHS annually and make marketplaces where qualified entities will also be eligible for a special public a summary report of their individuals and qualified employers can enrollment period. A QHP is also program operations, which will include shop for insurance coverage, and are required to promptly reassign an a summary of the accounting kept expected to reduce the unit price of enrollee improperly assigned to a plan pursuant to § 153.260(a). We assume quality insurance for the average variation (or standard plan without cost- that the data already collected and used consumer by pooling risk and sharing reductions), minimizing to report to issuers and HHS will be the promoting competition. consumer harm. same used to prepare this annual report. The final rule specifies the standards The annual application requirement Therefore, the cost associated with this and processes for the oversight and for enrollee satisfaction survey vendors requirement is the incremental time and accountability of entities responsible for allows HHS to ensure that these entities cost to prepare an annual report to HHS operations of the Exchanges and participate in relevant training and post- and the public on program operations. reinsurance and risk adjustment training certification, follow protocols We estimate it will take an insurance programs. Affected entities include related to quality assurance and the use management analyst 16 hours (at $51 States that establish and operate of HHS data, and adhere to privacy and per hour) and a senior manager 2 hours Exchanges and administer reinsurance security standards when handling data. (at $77 per hour) to prepare the report. and risk adjustment programs; FFEs; This will help to ensure that ultimately Therefore, we estimate it will cost each issuers of QHPs; health insurance the enrollee satisfaction survey data are State that operates reinsurance issuers offering coverage both through reliable and valid and that the approximately $970 to submit this and outside of an Exchange when HHS information is sufficiently protected. report to HHS. Because two States will operates risk adjustment or reinsurance operate reinsurance programs in the b. Costs on behalf of the State; and contractors 2014 benefit year, we estimate that an of these organizations. Affected entities will incur costs to aggregate cost of $1,940 as a result of comply with the provisions of this final this requirement in the first year. We a. Benefits rule. Costs related to information note that HHS will provide a portion of This final rule implements oversight, collection requirements subject to PRA the reinsurance contributions it collects record maintenance, and enforcement are discussed in detail in section III and to States operating reinsurance provisions that will ensure integrity of include administrative costs incurred by programs to support State the reinsurance and risk adjustment States and issuers related to record administration of reinsurance payments, programs, State Exchanges and FFE maintenance and reporting which will likely cover the costs functions, and prevent fraud and abuse. requirements; and oversight and associated with this requirement. This final rule includes provisions financial integrity standards. In this A State operating a risk adjustment that will create a system of oversight, section we discuss other costs related to program is required to maintain financial integrity and program integrity the provisions in this final rule. documents and records relating to the in the Exchanges and the premium States operating reinsurance programs risk adjustment program, whether stabilization programs. The oversight are required to keep an accurate paper, electronic or in other media, for requirements for the reinsurance and accounting for each benefit year, of all each benefit year for at least 10 years, risk-adjustment programs will ensure reinsurance funds received from HHS and make them available upon request that these programs are effective and for reinsurance payments and for from HHS, the OIG, the Comptroller efficient, and use program funds administrative expenses, as well as all General, or their designees, to any such appropriately. The provisions of this claims for reinsurance payments from entity. The documents and records must final rule will also ensure that Federal issuers of reinsurance-eligible plans, all be sufficient to enable the evaluation of funds are used appropriately by State payments made to those issuers, and all a State-operated risk adjustment Exchanges. By monitoring financial administrative expenses incurred. State- program’s compliance with Federal reports and overseeing State Exchange operated reinsurance programs will standards. States are also directed to activities, HHS will safeguard the use of already have a system in place to track ensure that their contractors, reinsurance funds received from HHS, subcontractors, and agents maintain and 25 ‘‘Effects on Health Insurance and the Federal claims from and payments to issuers, make those documents and records Budget for the Insurance Coverage Provisions in the Affordable Care Act—May 2013 Baseline,’’ and expenses incurred to operate the available upon request from HHS, the Congressional Budget Office, May 14, 2013. reinsurance program. The cost for States OIG, the Comptroller General, or their

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designees. States operating risk the program. This summary report will conduct a financial audit and a adjustment programs should already include the results of a programmatic programmatic audit annually, which have the documents and records of and financial audit for each benefit year will encompass the reinsurance and risk accounting procedures needed for conducted by an independent qualified adjustment programs if the State periodic audits. Therefore, we estimate auditing entity. We believe the cost of operates these programs. Financial audit that the additional burden associated this annual report will be the same as costs are estimated based on prices with this requirement is the time, effort, the cost of producing the interim first- among the big four audit firms for and additional labor cost required to year report described above, except for governmental entities of similar size to maintain and archive the records. We the cost of independent external audits those of the anticipated State Exchanges assume that it will take an insurance required in subsequent years. The costs for a financial statement audit and operations analyst 10 hours (at $38.49 related to the annual external audit are Yellowbook Report (report on internal an hour) to maintain records. Therefore, estimated later in this RIA. These controls) that reflects different levels of the average cost for each State will be estimates also include the cost for small, medium, and large approximately $385. Because one State administrative costs related to the entities, for entities with low, medium, will operate risk adjustment for the 2014 requirement for State-operated risk and high risk. Programmatic audit benefit year, we estimate an aggregate adjustment programs to keep accurate estimates reflect the experience of cost of $385 to comply with this accounting for each benefit year of all Federal entitlement programs similar to requirement in the first year. receipts and expenditures related to risk Medicaid, audited under an A–133 A State operating a risk adjustment adjustment payments, charges, and program compliance supplement, and program is required to submit by administration of the program. vary only by the size of the program December 31st of the first benefit year States face a variety of costs due to the (small, medium and large). For example, of operation an interim summary report monitoring requirements in this final a small Exchange judged to have low on the first 10 months of risk adjustment rule. Conducting oversight of the risk is estimated to have a combined activities, in order to obtain re- Exchanges, State-operated risk financial and programmatic audit cost of certification for the third benefit year. adjustment and reinsurance programs, $90,000; a large Exchange, in a State The cost of complying with this administration of the advance payments that also administers a reinsurance provision is the time and effort to write of the premium tax credit or cost- program (which implies a more the interim report and submit it to HHS. sharing reductions, and other activities complex, high risk operation) is We estimate it will take an insurance require independent external audits, estimated to have combined financial management analyst 16 hours (at $51 investigations, rectification of errors, and programmatic audit costs of per hour) and a senior manager 2 hours and the development of summary $360,000. Audit prices are based on (at $77 per hour) to prepare the interim reports which will be submitted to HHS. 2012 pricing and reflect an annual summary report. Therefore, we estimate The estimated total costs for increase of 3 percent each year, based that it will cost each State operating risk independent external audits for State- on recent industry experience. It is adjustment $970 to submit this report to operated reinsurance, risk adjustment expected that there will be four small HHS (an aggregate cost of $970 in the and Exchange programs are presented in State Exchanges, 12 medium size State 2014 benefit year). A State operating a Table IV.2. It is expected that 18 States Exchanges and two large State risk adjustment program will submit will establish State Exchanges in 2014 Exchanges. The lower bound of the and make public, a summary report of and, without further information; we range in Table IV.2 below assumes that its risk adjustment program operations assume that number will stay the same all State Exchanges have low risk and for each benefit year after the first during the period covered by the RIA. the upper bound is calculated assuming benefit year for which the State operates We also assume that each State will that all State Exchanges have high risk.

TABLE IV.2—ESTIMATED AUDIT COSTS FOR STATE PROGRAMS: EXCHANGES, RISK ADJUSTMENT AND REINSURANCE

2014 2015 2016 2017

Mid-range point estimate $2,572,000 $2,649,160 $2,728,635 $2,810,494 Range ...... $2,320,000–$2,820,000 $2,389,600–$2,904,600 $2,461,288–$2,991,738 $2,535,127–$3,081,490

A State operating a SHOP-only would be required for the standard The final rule requires the enrollee Exchange will be able to establish and methodology. The costs related to the satisfaction survey vendors engaged by operate a risk adjustment program for administration of cost-sharing issuers to meet HHS standards. Survey both the small group and individual reductions using the standard vendors will apply for approval markets starting in 2015, which will methodology are accounted for in the annually in order to administer enrollee allow it to minimize costs by achieving 2014 Payment Notice and are not satisfaction surveys to QHP enrollees on economies of scale and reduce included here. However, as explained in behalf of a QHP issuer. Survey vendors compliance costs for issuers. The section III, the provisions of this final will incur costs to submit the annual approach to allowable costs will be rule allowing the use of a simplified applications to HHS and to meet the operationally simpler for issuers to methodology during the transitional requirements necessary to meet implement and thus minimize related period are likely to result in a reduction approval. costs. in costs estimated to be approximately C. Regulatory Alternatives $57.7 million.26 The final rule permits QHP issuers to Under the Executive Order, HHS is use the simplified methodology to 26 required to consider alternatives to calculate cost-sharing reductions during These cost savings have not been accounted for in the RIA since they are mostly due to a a transitional period and postpone a postponement of IT implementation necessary for incur those costs at the end of the transitional more costly IT implementation that using the standard methodology. QHP issuers will period.

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issuing rules and alternative regulatory could have imposed costly IT system since they do not include receipts from approaches. HHS considered the build requirements on many issuers at these companies’ other lines of following alternatives while developing a time when QHP issuers are required business. It is estimated that out of 510 this final rule: to make many significant IT and issuers nationwide, there are 58 small operational changes. entities each with less than $35.5 1. Increased Uniformity of FFE and HHS believes that the options adopted million in earned premiums that offer State Exchange Standards in this final rule strike the best balance individual or group health insurance Under this alternative, HHS would of ensuring efficient operation and coverage and will therefore be subject to have required a single standard for integrity of Exchanges and the premium the requirements of this final regulation. Exchanges across the nation regardless stabilization programs while providing Forty three percent of these small of whether the Exchange was flexibility to the States and minimizing issuers belong to larger holding groups, established and operated by a State or the burden on States. and many if not all of these small was Federally-facilitated. The final rule D. Regulatory Flexibility Act issuers are likely to have other lines of defers to State discretion in oversight of business that will result in their QHPs. This element of State flexibility The Regulatory Flexibility Act (RFA) revenues exceeding $35.5 million. It is would have been precluded if greater requires agencies that issue a rule to uncertain how many of these 510 uniformity in operations and standards analyze options for regulatory relief of issuers will offer QHPs and be subject were to be imposed. Greater small businesses if a rule has a to the provisions of this final rule. Based standardization would have had an significant impact on a substantial on this analysis, however, HHS expects uncertain impact on Federal oversight number of small entities. The RFA that this final rule will not affect small activities but would have likely generally defines a ‘‘small entity’’ as— issuers. imposed greater costs of compliance on (1) A proprietary firm meeting the size State operations and issuers of QHPs in standards of the Small Business E. Unfunded Mandates Reform Act those States. Administration (SBA), (2) a nonprofit Section 202 of the Unfunded organization that is not dominant in its Mandates Reform Act (UMRA) of 1995 2. Place More Responsibility on the field, or (3) a small government requires that agencies assess anticipated States To Oversee Standards, Including jurisdiction with a population of less costs and benefits before issuing any Those for FFEs than 50,000 (States and individuals are final rule that includes a Federal Under this alternative, HHS would not included in the definition of ‘‘small mandate that could result in have placed more responsibility on entity’’). HHS uses as its measure of expenditure in any one year by State, States and State Exchanges to interpret significant economic impact on a local or tribal governments, in the and meet statutory requirements. This substantial number of small entities a aggregate, or by the private sector, of approach could have created a number change in revenues of more than 3 $100 million in 1995 dollars, updated of problems. If every State developed its percent to 5 percent. HHS anticipates annually for inflation. In 2013, that own monitoring standards, oversight of that this final rule will not have a threshold level is approximately $141 different Exchanges could be quite significant economic impact on a million. uneven, as States across the country substantial number of small entities. UMRA does not address the total cost have varying levels of fiscal resources As discussed in the Web Portal of a final rule. Rather, it focuses on with which to monitor activities. States interim final rule with comment period certain categories of cost, mainly those currently have certain levels of published on May 5, 2010 (75 FR ‘‘Federal mandate’’ costs resulting responsibility under the Affordable Care 24481), HHS examined the health from—(1) imposing enforceable duties Act to oversee standards for Exchanges, insurance industry in depth in the RIA on State, local, or tribal governments, or QHPs, and other programs. State we prepared for the proposed rule on on the private sector; or (2) increasing Exchanges also have latitude in the the establishment of the Medicare the stringency of conditions in, or number, type, and standardization of Advantage program (69 FR 46866, decreasing the funding of, State, local, plans they certify and accept into the August 3, 2004). In that analysis it was or tribal governments under entitlement Exchange as QHPs. determined that there were few, if any, programs. There are a number of provisions in insurance firms underwriting The final rule directs States to the Affordable Care Act that devolve comprehensive health insurance undertake oversight activities for State responsibilities from the Federal policies (in contrast, for example, to Exchanges, State-operated reinsurance government to States. Increased travel insurance policies or dental and risk adjustment programs. The costs devolution could have decreased the discount policies) that fell below the related to oversight activities, need of Federal oversight, while size thresholds for ‘‘small’’ business recordkeeping, reporting and audits are granting States increased flexibility to established by the SBA (currently $35.5 estimated to be approximately $2.8 regulate Exchanges within their borders. million in annual receipts for health million in 2014. There are no mandates There would also have been a decrease insurance issuers).27 In addition, HHS on local or tribal governments. The in oversight-related activities for the used the data from Medical Loss Ratio private sector, for example, QHP issuers Federal government such as HHS (MLR) annual report submissions for the and agents and brokers, will incur costs investigations or audits. On the other 2012 MLR reporting year to develop an to comply with the record maintenance hand, States would have likely faced an estimate of the number of small entities and reporting requirements set forth in increase in their own oversight activities that offer comprehensive major medical this final rule. The related costs are and related costs. coverage. These estimates may overstate estimated to be approximately $14.2 the actual number of small health million in 2014. However, QHP issuers 3. Require QHP Issuers To Use the insurance issuers that will be affected, are also expected to experience a cost Standard Methodology To Reconcile savings of approximately $57.7 million Cost-Sharing Reductions. 27 ‘‘Table of Small Business Size Standards by adopting the simplified methodology Matched To North American Industry Classification HHS considered not promulgating the System Codes,’’ effective July 23, 2013, U.S. Small to calculate cost sharing reductions simplified methodology during a Business Administration, available at http:// during a transitional period and transition period. However, doing so www.sba.gov. postponing costly IT implementation.

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Consistent with the policy embodied in States, HHS has engaged in efforts to insurance, Reporting and recordkeeping UMRA, this final rule has been designed consult with and work cooperatively requirements, State and local to be a low-burden alternative for State, with affected States. Throughout the governments, Cost-sharing reductions, local and tribal governments, and the process of developing this final rule, Advance payments of premium tax private sector while achieving the HHS has attempted to balance the credit, Administration and calculation objectives of the Affordable Care Act. States’ interests in regulating health of advance payments of the premium insurance issuers, and the Congress’ F. Federalism tax credit, Plan variations, Actuarial intent to provide uniform protections to value. Executive Order 13132 establishes consumers in every State. By doing so, certain requirements that an agency it is HHS’s view that it has complied 45 CFR Part 156 must meet when it promulgates a final with the requirements of Executive Administrative practice and rule that imposes substantial direct Order 13132. Under the requirements procedure, Advertising, Advisory requirement costs on State and local set forth in section 8(a) of Executive Committees, Brokers, Conflict of governments, preempts State law, or Order 13132, and by the signatures interest, Consumer protection, Cost- otherwise has Federalism implications. affixed to this rule, HHS certifies that sharing reductions, Cost-sharing States are the primary regulators of the CMS Center for Consumer reduction reconciliation, health insurance coverage. States will Information and Insurance Oversight Administration and calculation of continue to apply State laws regarding has complied with the requirements of advance payments of the premium tax health insurance coverage. However, if Executive Order 13132 for the attached credit, Payment and Collection Reports, any State law or requirement prevents final rule in a meaningful and timely Grant programs—health, Grants the application of a Federal standard, manner. administration, Health care, Health then that particular State law or insurance, Health maintenance requirement would be preempted. State G. Congressional Review Act organization (HMO), Health records, requirements that are more stringent This final rule is subject to the Hospitals, American Indian/Alaska than the Federal requirements would be Congressional Review Act provisions of Natives, Individuals with disabilities, not be preempted by this final rule. the Small Business Regulatory Loan programs—health, Organization Accordingly, States have significant Enforcement Fairness Act of 1996 (5 and functions (Government agencies), latitude to impose requirements with U.S.C. 801 et seq.), which specifies that Medicaid, Public assistance programs, respect to health insurance coverage before a rule can take effect, the Federal that are more restrictive than the Reporting and recordkeeping agency promulgating the rule shall requirements, State and local Federal law. submit to each House of the Congress The State Exchange oversight program governments, Sunshine Act, Technical and to the Comptroller General a report assistance, Women, and Youth. builds on State oversight efforts, where containing a copy of the rule along with possible, by coordinating with State other specified information, and has For the reasons set forth in the authorities to address compliance issues been transmitted to the Congress and preamble, the Department of Health and and concerns. Because QHPs are one of the Comptroller General for review. Human Services amends 45 CFR parts several commercial market insurance 144, 146, 147, 153, 155, and 156 as set products operating in State markets, List of Subjects forth below: HHS will not seek to inappropriately 45 CFR Part 144 duplicate or interfere with the PART 144—REQUIREMENTS traditional regulatory roles played by Health care, Health insurance, RELATING TO HEALTH INSURANCE the State DOIs. HHS will generally Reporting and recordkeeping COVERAGE confine its QHP oversight to Exchange- requirements. specific requirements and attributes. 45 CFR Part 146 ■ 1. The authority citation for part 144 continues to read as follows: HHS will also seek to work Health care, Health insurance, collaboratively with State DOIs on Reporting and recordkeeping Authority: Secs. 2701 through 2763, 2791, topics of mutual concern, in the interest requirements. and 2792 of the Public Health Service Act 42 of efficiently deploying oversight U.S.C. 300gg through 300gg–63, 300gg–91, resources and avoiding needlessly 45 CFR Part 147 and 300gg–92. duplicative regulatory roles. QHP Health care, Health insurance, ■ 2. Section 144.102 is amended by issuers are expected to comply with Reporting and recordkeeping revising the second sentence of standards established by State law and requirements, and State regulation of paragraph (c) to read as follows: regulation for cases forwarded to an health insurance. issuer by a State in which it offers § 144.102 Scope and applicability. QHPs. 45 CFR Part 153 * * * * * The requirements specified in this Administrative practice and (c) * * * If the coverage is offered to final rule will impose direct costs on procedure, Adverse selection, Health an association member other than in State and local governments and HHS care, Health insurance, Health records, connection with a group health plan, has attempted to minimize those costs. Organization and functions the coverage is considered individual State Exchanges and State-operated (Government agencies), Premium health insurance coverage for purposes reinsurance and risk adjustment stabilization, Reporting and of 45 CFR parts 144 through 148. programs are required to undertake recordkeeping requirements, * * * * * oversight, record maintenance and Reinsurance, Risk adjustment, Risk reporting activities. corridors, Risk mitigation, State and ■ 3. Section 144.103 is amended by In compliance with the requirement local governments. revising the introductory text and the of Executive Order 13132 that agencies definitions of ‘‘Group market,’’ examine closely any policies that may 45 CFR Part 155 ‘‘Individual market,’’ ‘‘Large employer,’’ have Federalism implications or limit Administrative practice and ‘‘Policy year,’’ and ‘‘Small employer’’ to the policymaking discretion of the procedure, Health care access, Health read as follows:

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§ 144.103 Definitions. employer by substituting ‘‘50 § 147.104 Guaranteed availability of For purposes of parts 146 (group employees’’ for ‘‘100 employees.’’ coverage. market), 147 (group and individual * * * * * (a) Guaranteed availability of market), 148 (individual market), and coverage in the individual and group 150 (enforcement) of this subchapter, PART 146—HEALTH INSURANCE market. Subject to paragraphs (b) the following definitions apply unless REFORM REQUIREMENTS FOR THE through (d) of this section, a health otherwise provided: GROUP AND INDIVIDUAL HEALTH insurance issuer that offers health * * * * * INSURANCE MARKETS insurance coverage in the individual, Group market means the market for small group, or large group market in a ■ health insurance coverage offered in 4. The authority citation for part 146 State must offer to any individual or connection with a group health plan. continues to read as follows: employer in the State all products that * * * * * Authority: Secs. 2702 through 2705, 2711 are approved for sale in the applicable Individual market means the market through 2723, 2791, and 2792 of the Public market, and must accept any individual Health Service Act (42 U.S.C. 300gg–1 for health insurance coverage offered to or employer that applies for any of those through 300gg–5, 300gg–11 through 300gg– products. individuals other than in connection 23, 200gg–91, and 300gg–92) (1996). with a group health plan. Section 146.145 also issued under secs. * * * * * * * * * * 2701 through 2763, 2791, and 2792 of the (b) * * * Public Health Service Act (42 U.S.C. 300gg Large employer means, in connection (2) * * * Health insurance coverage with a group health plan with respect to through 300gg–63, 300gg–91, and 300gg–92), as amended (2010). in the individual market or in a market a calendar year and a plan year, an in which the State has merged the employer who employed an average of § 146.145 [Amended] individual and small group risk pools at least 101 employees on business days must be offered on a calendar year basis. during the preceding calendar year and ■ 5. Section 146.145 is amended by— who employs at least 1 employee on the ■ A. Removing paragraph (b). * * * * * first day of the plan year. In the case of ■ B. Redesignating paragraphs (c) (c) * * * plan years beginning before January 1, through (e) as paragraphs (b) through (2) An issuer that denies health 2016, a State may elect to define large (d). insurance coverage to an individual or employer by substituting ‘‘51 ■ C. In redesignated paragraph (b), an employer in any service area, in employees’’ for ‘‘101 employees.’’ removing references to ‘‘paragraph (c)’’ accordance with paragraph (c)(1)(ii) of * * * * * and adding in their place ‘‘paragraph this section, may not offer coverage in Policy year means, with respect to— (b)’’ wherever they appear in the the individual, small group, or large (1) A grandfathered health plan following places: group market, as applicable, for a period offered in the individual health ■ i. Paragraph (b)(1). of 180 calendar days after the date the insurance market, the 12-month period ■ ii. Paragraph (b)(3)(i). coverage is denied. This paragraph (c)(2) that is designated as the policy year in ■ iii. Paragraph (b)(3)(ii). does not limit the issuer’s ability to the policy documents of the individual ■ iv. Paragraph (b)(4)(i). renew coverage already in force or health insurance coverage. If there is no ■ v. Paragraph (b)(4)(ii). relieve the issuer of the responsibility to designation of a policy year in the renew that coverage. ■ vi. Paragraph (b)(4)(iii) and policy document (or no such policy Conclusion. * * * * * document is available), then the policy ■ (d) * * * year is the deductible or limit year used vii. Paragraph (b)(5)(ii) and under the coverage. If deductibles or Conclusion. (1) * * * ■ other limits are not imposed on a yearly D. In redesignated paragraph (c), (ii) It is applying this paragraph (d)(1) basis, the policy year is the calendar removing references to ‘‘paragraph (d)’’ uniformly to all employers or individual year. and adding in their place ‘‘paragraph in the large group, small group, or (2) A non-grandfathered health plan (c)’’ wherever they appear in the individual market, as applicable, in the offered in the individual health following places: State consistent with applicable State insurance market, or in a market in ■ i. Paragraph (c)(1). law and without regard to the claims which the State has merged the ■ ii. Paragraph (c)(3). experience of those individuals, individual and small group risk pools, employers and their employees (and for coverage issued or renewed PART 147—HEALTH INSURANCE their dependents) or any health status- beginning January 1, 2014, a calendar REFORM REQUIREMENTS FOR THE related factor relating to such year for which health insurance GROUP AND INDIVIDUAL HEALTH individuals, employees, and coverage provides coverage for health INSURANCE MARKETS dependents. benefits. ■ 6. The authority citation for part 147 (2) An issuer that denies health * * * * * continues to read as follows: insurance coverage to any employer or Small employer means, in connection individual in a state under paragraph with a group health plan with respect to Authority: Secs. 2701 through 2763, 2791, and 2792 of the Public Health Service Act (42 (d)(1) of this section may not offer a calendar year and a plan year, an coverage in the large group, small group, employer who employed an average of U.S.C. 300gg through 300gg–63, 300gg–91, and 300gg–92), as amended. or individual market, as applicable, in at least 1 but not more than 100 the State before the later of either of the employees on business days during the ■ 7. Section 147.104 is amended by following dates: preceding calendar year and who revising paragraph (a), adding a * * * * * employs at least 1 employee on the first sentence at the end of paragraph (b)(2), day of the plan year. In the case of plan and revising paragraphs (c)(2), (d)(1)(ii), ■ 8. Section 147.106 is amended by years beginning before January 1, 2016, and (d)(2) introductory text to read as revising paragraphs (a) and (d)(1) a State may elect to define small follows: introductory text to read as follows:

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§ 147.106 Guaranteed renewability of compliance with Federal standards. The § 153.265 Restrictions on use of coverage. State must also ensure that its reinsurance funds for administrative (a) General rule. Subject to paragraphs contractors, subcontractors, and agents expenses. (b) through (d) of this section, a health similarly maintain and make relevant A State that establishes a reinsurance insurance issuer offering health documents and records available upon program must ensure that its applicable insurance coverage in the individual, request from HHS, the OIG, the reinsurance entity does not use any small group, or large group market is Comptroller General, or their designees, funds for the support of reinsurance required to renew or continue in force to any such entity. operations, including any reinsurance the coverage at the option of the plan * * * * * contributions provided under the sponsor or the individual, as applicable. ■ 12. Section 153.260 is added to national contribution rate for * * * * * subpart C to read as follows: administrative expenses, for any of the (d) * * * following purposes: (1) An issuer may elect to discontinue § 153.260 General oversight requirements (a) Staff retreats; offering all health insurance coverage in for State-operated reinsurance programs. (b) Promotional giveaways; the individual, small group, or large (a) Accounting requirements. A State (c) Excessive executive compensation; group market, or all markets, in a State that establishes a reinsurance program or in accordance with applicable State law must ensure that its applicable (d) Promotion of Federal or State only if— reinsurance entity keeps an accounting legislative or regulatory modifications. ■ 14. Section 153.310 is amended by: * * * * * for each benefit year of: (1) All reinsurance contributions A. Adding paragraph (c)(4). PART 153—STANDARDS RELATED TO received from HHS for reinsurance B. Revising the paragraph (d) subject REINSURANCE, RISK CORRIDORS, payments and for administrative heading and adding paragraphs (d)(3) AND RISK ADJUSTMENT UNDER THE expenses; and (4). AFFORDABLE CARE ACT (2) All claims for reinsurance C. Removing paragraph (f). payments received from issuers of The additions and revision read as ■ 9. The authority citation for part 153 reinsurance-eligible plans; follows: is revised to read as follows: (3) All reinsurance payments made to issuers of reinsurance-eligible plans; § 153.310 Risk adjustment administration. Authority: Secs. 1311, 1321, 1341–1343, * * * * * Pub. L. 111–148, 24 Stat. 119. and (4) All administrative expenses (c) * * * ■ 10. Section 153.20 is amended by incurred for the reinsurance program. (4) Maintenance of records. A State revising the definition of ‘‘contributing (b) State summary report. A State that operating a risk adjustment program entity’’ to read as follows: establishes a reinsurance program must must maintain documents and records submit to HHS and make public a report relating to the risk adjustment program, § 153.20 Definitions. on its reinsurance program operations whether paper, electronic, or in other * * * * * for each benefit year in the manner and media, for each benefit year for at least Contributing entity means a health timeframe specified by HHS. The report 10 years, and make them available upon insurance issuer or a self-insured group must summarize the accounting for the request from HHS, the OIG, the health plan (including a group health benefit year kept pursuant to paragraph Comptroller General, or their designees, plan that is partially self-insured and (a) of this section. to any such entity. The documents and partially insured, where the health (c) Independent external audit. A records must be sufficient to enable the insurance coverage does not constitute State that establishes a reinsurance evaluation of the State-operated risk major medical coverage). A self-insured program must engage an independent adjustment program’s compliance with group health plan is responsible for the qualified auditing entity to perform a Federal standards. A State operating a reinsurance contributions, although it financial and programmatic audit for risk adjustment program must also may elect to use a third party each benefit year of its State-operated ensure that its contractors, administrator or administrative services- reinsurance program in accordance with subcontractors, and agents similarly only contractor for transfer of the generally accepted auditing standards maintain and make relevant documents reinsurance contributions. (GAAS). The State must: and records available upon request from * * * * * (1) Provide to HHS the results of the HHS, the OIG, the Comptroller General, ■ 11. Section 153.240 is amended by audit, in the manner and timeframe to or their designees, to any such entity. revising paragraph (c) to read as follows: be specified by HHS; (d) Approval for a State to operate (2) Ensure that the audit addresses the risk adjustment. *** § 153.240 Disbursement of reinsurance prohibitions set forth in § 153.265; (3) In addition to requirements set payments. (3) Identify to HHS any material forth in paragraphs (d)(1) and (2) of this * * * * * weakness or significant deficiency section, to obtain re-approval from HHS (c) Maintenance of records. If a State identified in the audit, and address in to operate risk adjustment for a third establishes a reinsurance program, the writing to HHS how the State intends to benefit year, the State must, in the first State must maintain documents and correct any such material weakness or benefit year for which it operates risk records relating to the reinsurance significant deficiency; and adjustment, provide to HHS an interim program, whether paper, electronic, or (4) Make public a summary of the report, in a manner specified by HHS, in other media, for each benefit year for results of the audit, including any including a detailed summary of its risk at least 10 years, and make them material weakness or significant adjustment activities in the first 10 available upon request from HHS, the deficiency and how the State intends to months of the benefit year, no later than OIG, the Comptroller General, or their correct the material weakness or December 31 of the applicable benefit designees, to any such entity. The significant deficiency, in the manner year. documents and records must be and timeframe to be specified by HHS. (4) To obtain re-approval from HHS to sufficient to enable the evaluation of the ■ 13. Section 153.265 is added to operate risk adjustment for each benefit State-operated reinsurance program’s subpart C to read as follows: year after the third benefit year, each

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State operating a risk adjustment ■ 17. Section 153.405 is amended by § 158.170 of this subchapter, the method program must submit to HHS and make adding paragraph (h) to read as follows: used for purposes of this paragraph public a detailed summary of its risk must be consistent. adjustment program operations for the § 153.405 Calculation of reinsurance (b) Allocation across plans. Each item contributions. most recent benefit year for which risk of expense in the target amount must adjustment operations have been * * * * * reflect an amount equal to the pro rata completed, in the manner and (h) Maintenance of records. A portion of the aggregate amount of such timeframe specified by HHS. contributing entity must maintain expense across all of the QHP issuer’s (i) The summary must include the documents and records, whether paper, non-grandfathered health plans in a results of a programmatic and financial electronic, or in other media, sufficient market within a State, allocated to the audit for each benefit year of the State- to substantiate the enrollment count QHP based on premiums earned. submitted pursuant to this section for a operated risk adjustment program * * * * * period of at least 10 years, and must conducted by an independent qualified (e) Maintenance of records. A QHP make those documents and records auditing entity in accordance with issuer must maintain documents and available upon request from HHS, the generally accepted auditing standards records, whether paper, electronic, or in OIG, the Comptroller General, or their (GAAS). other media, sufficient to enable the designees, to any such entity, for (ii) The summary must identify any evaluation of the issuer’s compliance purposes of verification, investigation, material weakness or significant with applicable risk corridors standards, audit, or other review of reinsurance deficiency identified in the audit and for each benefit year for at least 10 contribution amounts. address how the State intends to correct years, and must make those documents ■ any such material weakness or 18. Section 153.410 is amended by and records available upon request from significant deficiency. adding paragraph (c) to read as follows: HHS, the OIG, the Comptroller General, ■ 15. Section 153.365 is added to § 153.410 Requests for reinsurance or their designees, to any such entity, subpart D to read as follows: payment. for purposes of verification, § 153.365 General oversight requirements * * * * * investigation, audit or other review. for State-operated risk adjustment (c) Maintenance of records. An issuer ■ 21. Section 153.530 is amended by programs. of a reinsurance-eligible plan must revising paragraphs (b) and (c) to read If a State is operating a risk maintain documents and records, as follows: adjustment program, it must keep an whether paper, electronic, or in other § 153.530 Risk corridors data accounting of all receipts and media, sufficient to substantiate the requirements. expenditures related to risk adjustment requests for reinsurance payments made payments and charges and the pursuant to this section for a period of * * * * * administration of risk adjustment- at least 10 years, and must make those (b) Allowable costs. A QHP issuer related functions and activities for each documents and records available upon must submit to HHS data on the benefit year. request from HHS, the OIG, the allowable costs incurred with respect to the QHP issuer’s non-grandfathered ■ 16. Section 153.400 is amended by Comptroller General, or their designees, health plans in a market within a State revising paragraph (a)(1)(i) and adding or, in a State where the State is in a manner specified by HHS. For paragraph (a)(3) to read as follows: operating reinsurance, the State or its designee, to any such entity, for purposes of this subpart, allowable costs § 153.400 Reinsurance contribution funds. purposes of verification, investigation, must be — (a) * * * audit, or other review of reinsurance (1) Increased by any risk adjustment (1) * * * payment requests. charges paid by the issuer for the non- (i) Such plan or coverage is not major grandfathered health plans under the ■ 19. Section 153.510 is amended by medical coverage, subject to paragraph risk adjustment program established adding paragraph (e) (a)(3) of this section. under subpart D of this part. * * * * * § 153.510 Risk corridors establishment (i) Any risk adjustment charges paid (3) Notwithstanding paragraph and payment methodology by the issuer for the non-grandfathered (a)(1)(i) of this section, a health * * * * * health plans under the risk adjustment insurance issuer must make reinsurance (e) A QHP issuer is not subject to the program established pursuant to subpart contributions for lives covered by its provisions of this subpart with respect D of this part; and group health insurance coverage to a stand-alone dental plan. (ii) Any reinsurance contributions whether or not the insurance coverage ■ 20. Section 153.520 is amended by made by the issuer for the non- constitutes major medical coverage, if— revising paragraphs (a), (b), and (e) to grandfathered health plans under the (i) The group health plan provides read as follows: transitional reinsurance program health insurance coverage for those established pursuant to subpart C of this covered lives through more than one § 153.520 Attribution and allocation of part. insurance policy that in combination revenue and expense items. (2) Reduced by — constitute major medical coverage; (a) Attribution to plans. Each item of (i) Any risk adjustment payments (ii) The lives are not covered by self- expense in the target amount with received by the issuer for the non- insured coverage of the group health respect to a QHP must be reasonably grandfathered health plans under the plan (except for self-insured coverage attributable to the operation of the QHP risk adjustment program established limited to excepted benefits); and issuer’s non-grandfathered health plans pursuant to subpart D of this part; (iii) The health insurance coverage in a market within a State, with the (ii) Any reinsurance payments under the policy offered by the health attribution based on a generally received by the issuer for the non- insurance issuer constitutes the greatest accepted accounting method, grandfathered health plans under the portion of inpatient hospitalization consistently applied. To the extent that transitional reinsurance program benefits under the group health plan. a QHP issuer utilizes a specific method established pursuant to subpart C of this * * * * * for allocating expenses for purposes of part; and

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(iii) Any cost-sharing reduction (b) Default risk adjustment charge. If period of enrollment or benefit year, payments received by the issuer for the an issuer of a risk adjustment covered whichever comes first. QHP issuer’s QHPs in a market within plan fails to establish a dedicated (2) If a refund is requested by or for a State to the extent not reimbursed to distributed data environment or fails to the enrollee, the refund must be the provider furnishing the item or provide HHS with access to the required provided within 45 calendar days of the service. data in such environment in accordance date of the request. (c) Allowable administrative costs. A with § 153.610(a), § 153.700, § 153.710, ■ 26. Section 155.420 is amended by QHP issuer must submit to HHS data on or § 153.730 such that HHS cannot adding paragraph (d)(10) to read as the allowable administrative costs apply the applicable Federally certified follows: incurred with respect to the QHP risk adjustment methodology to issuer’s non-grandfathered health plans calculate the risk adjustment payment § 155.420 Special enrollment periods. in a market within a State in a manner transfer amount for the risk adjustment * * * * * specified by HHS. covered plan in a timely fashion, HHS (d) * * * * * * * * will assess a default risk adjustment (10) It has been determined by the ■ 22. Section 153.620 is amended by charge. Exchange that a qualified individual or revising paragraph (b) to read as follows: enrollee, or his or her dependents, was PART 155—EXCHANGE not enrolled in QHP coverage; was not § 153.620 Compliance with risk adjustment ESTABLISHMENT STANDARDS AND enrolled in the QHP selected by the standards. OTHER RELATED STANDARDS qualified individual or enrollee; or is * * * * * UNDER THE AFFORDABLE CARE ACT eligible for but is not receiving advance (b) Issuer records maintenance payments of the premium tax credit or requirements. An issuer that offers risk ■ 24. The authority citation for part 155 cost-sharing reductions as a result of adjustment covered plans must also is revised to read as follows: misconduct on the part of a non- maintain documents and records, Authority: Title I of the Affordable Care Exchange entity providing enrollment whether paper, electronic, or in other Act, sections 1301, 1302, 1303, 1304, 1311, assistance or conducting enrollment media, sufficient to enable the 1312, 1313, 1321, 1322, 1331, 1332, 1334, activities. For purposes of this evaluation of the issuer’s compliance 1402, 1411, 1412, 1413, Pub. L. 111–148, 124 provision, misconduct includes, but is with applicable risk adjustment Stat. 119 (42 U.S.C. 18021–18024, 18031– not limited to, the failure of the non- standards, for each benefit year for at 18033, 18041–18042, 18051, 18054, 18071, Exchange entity to comply with least 10 years, and must make those and 18081–18083). applicable standards under this part, documents and records available upon ■ part 156 of this subchapter, or other request to HHS, the OIG, the 25. Section 155.340 is amended by adding paragraph (h) to read as follows: applicable Federal or State laws, as Comptroller General, or their designees, determined by the Exchange. or in a State where the State is operating § 155.340 Administration of advance * * * * * risk adjustment, the State or its designee payments of the premium tax credit and to any such entity, for purposes of cost-sharing reductions. § 155.725 [Amended] verification, investigation, audit or other * * * * * ■ 27. Section 155.725(j)(2)(i) is revised review. (h) Failure to reduce enrollee’s to read as follows: ■ 23. Section 153.740 is added to premiums to account for advance * * * * * subpart H to read as follows: payments of the premium tax credit. If (j) * * * § 153.740 Failure to comply with HHS- the Exchange discovers that it did not (2) * * * operated risk adjustment and reinsurance reduce an enrollee’s premium by the (i) Experiences an event described in data requirements. amount of the advance payment of the § 155.420(d)(1), (2), (4), (5), (7), (8), (9), (a) Enforcement actions. If an issuer of premium tax credit, then the Exchange or (10); a risk adjustment covered plan or must notify the enrollee of the improper * * * * * reduction within 45 calendar days of reinsurance-eligible plan fails to ■ discovery of the improper reduction and 28. Subpart M is added to read as establish a dedicated distributed data follows: environment in a manner and timeframe refund the enrollee any excess premium specified by HHS; fails to provide HHS paid by or for the enrollee as follows: Subpart M—Oversight and Program with access to the required data in such (1) Unless a refund is requested by or Integrity Standards for State Exchanges environment in accordance with for the enrollee, the Exchange must, Sec. § 153.700(a) or otherwise fails to comply within 45 calendar days of discovery of 155.1200 General program integrity and with the requirements of §§ 153.700 the error, apply the excess premium oversight requirements. through 153.730; fails to adhere to the paid by or for the enrollee to the 155.1210 Maintenance of records. reinsurance data submission enrollee’s portion of the premium (or Subpart M—Oversight and Program requirements set forth in § 153.420; or refund the amount directly). If any Integrity Standards for State fails to adhere to the risk adjustment excess premium remains, the Exchange Exchanges data submission and data storage must then apply the excess premium to requirements set forth in §§ 153.610 the enrollee’s portion of the premium § 155.1200 General program integrity and through 153.630, HHS may impose civil for each subsequent month for the oversight requirements. money penalties in accordance with the remainder of the period of enrollment or (a) General requirement. A State procedures set forth in § 156.805 of this benefit year until the excess premium is Exchange must: subchapter. Civil monetary penalties fully refunded (or refund the remaining (1) Keep an accurate accounting of will not be imposed for non-compliance amount directly). If any excess premium Exchange receipts and expenditures in with these requirements during 2014 remains at the end of the period of accordance with generally accepted pursuant to this paragraph (a) if the enrollment or benefit year, the Exchange accounting principles (GAAP). issuer has made good faith efforts to must refund any excess premium within (2) Monitor and report to HHS on comply with these requirements. 45 calendar days of the end of the Exchange related activities.

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(3) Collect and report to HHS (b) Records. The State Exchange and authorized to access CMS’s secure data performance monitoring data. its contractors, subcontractors, and warehouse to submit survey data and to (b) Reporting. The State Exchange agents must ensure that the records preview survey results prior to public must, at least annually, provide to HHS, specified in paragraph (a) of this section reporting. in a manner specified by HHS, the include, at a minimum, the following: ■ 31. Section 156.80 is amended by following data and information: (1) Information concerning revising the first sentence of paragraph (1) A financial statement presented in management and operation of the State (d)(1) and adding paragraph (d)(3) to accordance with GAAP by April 1 of Exchange’s financial and other record read as follows: each year, keeping systems; (2) Eligibility and enrollment reports, (2) Financial statements, including § 156.80 Single risk pool. (3) Performance monitoring data, and cash flow statements, and accounts * * * * * (4) If the Exchange is collecting receivable and matters pertaining to the premiums under § 155.240, a report on (d) * * * costs of operations; (1) In general. A health insurance instances in which it did not reduce an (3) Any financial reports filed with enrollee’s premium by the amount of issuer must establish an index rate that other Federal programs or State is effective January 1 of each calendar the advance payment of the premium authorities; tax credit in accordance with year for a state market described in (4) Data and records relating to the paragraphs (a) through (c) of this section § 155.340(g)(1) and (2). State Exchange’s eligibility verifications (c) External audits. The State based on the total combined claims and determinations, enrollment costs for providing essential health Exchange must engage an independent transactions, appeals, and plan variation qualified auditing entity which follows benefits within the single risk pool of certifications; and that state market. * * * generally accepted governmental (5) Qualified health plan contracting auditing standards (GAGAS) to perform (including benefit review) data and * * * * * an annual independent external consumer outreach and Navigator grant (3) Frequency of index rate and plan- financial and programmatic audit and oversight information. level adjustments. (i) A health insurance must make such information available (c) Availability. A State Exchange issuer may not establish an index rate to HHS for review. The State must: must make all records and must ensure and make the market-wide adjustments (1) Provide to HHS the results of the its contractors, subcontractors, and pursuant to paragraph (d)(1) of this annual external audit; and agents must make all records in section, or make the plan-level (2)) Inform HHS of any material paragraph (a) of this section available to adjustments pursuant to paragraph weakness or significant deficiency (d)(2) of this section, more or less identified in the audit and must develop HHS, the OIG, the Comptroller General, or their designees, upon request. frequently than annually, except as and inform HHS of a corrective action provided in paragraph (d)(3)(ii) of this plan for such material weakness or PART 156—HEALTH INSURANCE section. significant deficiency; ISSUER STANDARDS UNDER THE (ii) Beginning the quarter after HHS (3) Make public a summary of the AFFORDABLE CARE ACT, INCLUDING issues notification that the FF–SHOP results of the external audit. STANDARDS RELATED TO can process quarterly rate updates, a (d) External audit standard. The State EXCHANGES health insurance issuer in the small Exchange must ensure that independent group market (not including a merged audits of State Exchange financial ■ 29. The authority citation for part 156 market) may establish index rates and statements and program activities in continues to read as follows: make the market-wide adjustments paragraph (c) of this section address: (1) Compliance with paragraph (a)(1) Authority: Title I of the Affordable Care pursuant to paragraph (d)(1) of this of this section; Act, sections 1301–1304, 1311–1313, 1321– section, and make the plan-level (2) Compliance with requirements 1322, 1324, 1334, 1342–1343, 1401–1402, adjustments pursuant to paragraph Pub. L. 111–148, 124 Stat. 119 42 U.S.C. (d)(2) of this section, no more frequently under this part; 18021–18024, 18031–18032, 18041–18042, (3) Processes and procedures designed than quarterly, provided that any 18044, 18054, 18061, 18063, 18071, 18082, changes to rates must have effective to prevent improper eligibility 26 U.S.C. 36B, and 31 U.S.C. 9701). dates of January 1, April 1, July 1, or determinations and enrollment ■ transactions; and 30. Section 156.20 is amended by October 1. (4) Identification of errors that have adding definitions in alphabetical order * * * * * for ‘‘Enrollee satisfaction survey resulted in incorrect eligibility ■ 32. Section 156.155 is amended by determinations. vendor’’ and ‘‘Registered user of the enrollee satisfaction survey data revising paragraph (a)(3) to read as § 155.1210 Maintenance of records. warehouse’’ to read as follows: follows: (a) General. The State Exchange must § 156.20 Definitions § 156.155 Enrollment in catastrophic maintain and must ensure its plans. * * * * * contractors, subcontractors, and agents (a) * * * maintain for 10 years, documents and Enrollee satisfaction survey vendor means an organization that has relevant (3) Provides coverage of the essential records (whether paper, electronic, or health benefits under section 1302(b) of other media) and other evidence of survey administration experience (for ® the Affordable Care Act, except that the accounting procedures and practices, example, CAHPS surveys), organizational survey capacity, and plan provides no benefits for any plan which are sufficient to do the following: year (except as provided in paragraphs (1) Accommodate periodic auditing of quality control procedures for survey (a)(4) and (b) of this section) until the the State Exchange’s financial records; administration. annual limitation on cost sharing in and * * * * * section 1302(c)(1) of the act is reached. (2) Enable HHS or its designee(s) to Registered user of the enrollee inspect facilities, or otherwise evaluate satisfaction survey data warehouse * * * * * the State- Exchange’s compliance with means enrollee satisfaction survey ■ 33. Section 156.330 is added to Federal standards. vendors, QHP issuers, and Exchanges subpart D to read follows:

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§ 156.330 Changes of Ownership of enrollee to the enrollee’s portion of the reassigns an enrollee from a more Issuers of Qualified Health Plans in premium (or refund the amount generous plan variation to a less Federally-facilitated Exchanges. directly). If any excess premium generous plan variation of a QHP (or a When a QHP issuer that offers one or remains, the QHP issuer must apply the standard plan without cost-sharing more QHPs in a Federally-facilitated excess premium to the enrollee’s reductions), the QHP issuer will not be Exchange undergoes a change of portion of the premium for each eligible for reimbursement for any of the ownership as recognized by the State in subsequent month for the remainder of excess cost-sharing reductions provided which the issuer offers the QHP, the the period of enrollment or benefit year to the enrollee following the effective QHP issuer must notify HHS of the until the excess is fully applied (or date of eligibility required by the change in a manner to be specified by refund any remaining amount directly). Exchange, and may not seek HHS, and provide the legal name and If any excess premium remains at the reimbursement from the enrollee or the Taxpayer Identification Number (TIN) of end of the period of enrollment or applicable provider for any of the excess the new owner and the effective date of benefit year, the QHP issuer must cost-sharing reductions. the change at least 30 days prior to the refund the enrollee any remaining effective date of the change of excess cost sharing paid by or for the (4) If, pursuant to a reassignment ownership. The new owner must agree enrollee within 45 calendar days of the under this paragraph (d), a QHP issuer to adhere to all applicable statutes and end of the period of enrollment or reassigns an enrollee from a less regulations. benefit year, whichever comes first. generous plan variation (or a standard ■ 34. Section 156.400 is amended by (iii) If the excess cost sharing was not plan without cost-sharing reductions) to revising the definition of ‘‘Most paid by the provider, and if a refund is a more generous plan variation of a generous or more generous’’ to read as requested by the enrollee, the refund QHP, the QHP issuer must recalculate follows: must be provided to the enrollee within the enrollee’s liability for cost sharing 45 calendar days of the date of the paid between the effective date of § 156.400 Definitions. request. eligibility required by the Exchange and * * * * * (2) If a QHP issuer provides an the date on which the issuer effectuated Most generous or more generous individual assigned to a plan variation the change, and must refund any excess means, as between a QHP (including a greater cost-sharing reductions than cost sharing paid by or for the enrollee standard silver plan) or plan variation required under the applicable plan during such period as follows: and one or more other plan variations of variation, taking into account (i) If the excess cost sharing was paid the same QHP, the standard plan or plan § 156.425(b) concerning continuity of by the provider, the QHP issuer must variation designed for the category of deductibles and out-of-pocket amounts refund the excess cost sharing to the individuals last listed in § 155.305(g)(3) (if applicable), then the QHP issuer will provider within 45 calendar days of of this subchapter. Least generous or not be eligible for reimbursement of any discovery of the improper assignment. less generous has the opposite meaning. excess cost-sharing reductions provided * * * * * to the enrollee, and may not seek (ii) If the excess cost sharing was not paid by the provider and is not ■ 35. Section 156.410 is amended by reimbursement from the enrollee or the requested by the enrollee as a refund, adding paragraphs (c) and (d) to read as applicable provider for any of the excess the QHP issuer must, within 45 calendar follows: cost-sharing reductions. (d) Improper assignment. If a QHP days of discovery of the improper § 156.410 Cost-sharing reductions for issuer does not assign an individual to assignment, apply the excess cost enrollees. the applicable plan variation (or sharing paid by or for the enrollee to the * * * * * standard plan without cost-sharing enrollee’s portion of the premium (or (c) Improper cost-sharing reductions. reductions) in accordance with refund the amount directly). If any (1) If a QHP issuer fails to ensure that § 156.410(b) and § 156.425(a) based on excess premium remains, the QHP an individual assigned to a plan the eligibility and enrollment issuer must apply the excess premium variation receives the cost-sharing information or notification provided by to the enrollee’s portion of the premium reductions required under the the Exchange, then the QHP issuer must for each subsequent month for the applicable plan variation, taking into reassign the enrollee to the applicable remainder of the period of enrollment or account § 156.425(b) concerning plan variation (or standard plan without benefit year until the excess is fully continuity of deductibles and out-of- cost-sharing reductions) and notify the applied (or refund the remaining pocket amounts (if applicable), then the enrollee of the improper assignment amount directly). If any excess premium QHP issuer must notify the enrollee of such that: remains at the end of the period of the improper application of any cost- (1) If the QHP issuer discovers the enrollment or benefit year, the QHP sharing reduction within 45 calendar improper assignment between the first issuer must refund the enrollee any days of discovery of such improper and fifteenth day of the month, the QHP remaining excess cost sharing paid by or application, and refund any resulting issuer must reassign the enrollee to the for the enrollee within 45 calendar days excess cost sharing paid by or for the correct plan variation (or standard plan of the end of the period of enrollment enrollee as follows: without cost-sharing reductions) by the or benefit year, whichever comes first. (i) If the excess cost sharing was paid first day of the following month. (ii) If the excess cost sharing was not by the provider, the QHP issuer must (2) If the QHP issuer discovers the paid by the provider, then, if the refund the excess cost sharing to the improper assignment between the enrollee requests a refund, the refund provider within 45 calendar days of sixteen and the last day of the month, must be provided to the enrollee within discovery of the improper application. the QHP issuer must reassign the 45 calendar days of the date of the (ii) If the excess cost sharing was not individual to the correct plan variation request. paid by the provider and is not (or standard plan without cost-sharing requested by the enrollee as a refund, reductions) by the first day of the ■ 36. Section 156.430 is amended by the QHP issuer must, within 45 calendar second following month. revising paragraphs (c)(3) introductory days of discovery of the error, apply the (3) If, pursuant to a reassignment text, (c)(3)(iii) through (iv), and (c)(4) to excess cost sharing paid by or for the under this paragraph (d), a QHP issuer read as follows:

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§ 156.430 Payment for cost-sharing (A) Less than or equal to the effective based on the pharmaceutical costs of the reductions. deductible, the amount that the enrollees in the standard plan. * * * * * enrollees would have paid under the (C) If the standard plan has separate (c) * * * standard plan is equal to the total cost-sharing parameters for self-only (3) Selection of methodology. For allowed costs for EHB under the policy coverage and other than self-only benefit years 2014 through 2016, for the benefit year multiplied by the coverage, and also has separate cost- notwithstanding paragraph (c)(2) of this effective pre-deductible coinsurance sharing parameters for pharmaceutical section, a QHP issuer may choose to rate. and medical services, the QHP issuer calculate the amounts that would have (B) Greater than the effective must calculate and apply separate sets been paid under the standard plan deductible but less than the effective of effective cost-sharing parameters without cost-sharing reductions using claims ceiling, the amount that the based on the medical costs of enrollees the simplified methodology described in enrollees would have paid under the in the standard plan with self-only paragraph (c)(4) of this section. standard plan is equal to the sum of (x) coverage, based on the pharmaceutical * * * * * the average deductible, plus (y) the costs of enrollees in the standard plan (iii) The QHP issuer may not select effective non-deductible cost sharing, with self-only coverage, based on the the simplified methodology for a benefit plus (z) the difference, if positive, medical costs of enrollees in the year if the QHP issuer did not select the between the total allowed costs under standard plan with other than self-only simplified methodology for the prior the policy for the benefit year for EHB coverage, and based on the benefit year. that are subject to a deductible and the pharmaceutical costs of enrollees in the (iv) Notwithstanding paragraphs average deductible, multiplied by the standard plan with other than self-only (c)(3)(ii) and (iii) of this section, if a effective post-deductible coinsurance coverage. QHP issuer merges with or acquires rate. (iii) The effective cost-sharing another issuer of a QHP on the (C) Greater than or equal to the parameters for the standard plan Exchange, or acquires a QHP offered on effective claims ceiling, the amount that without cost-sharing reductions must be the Exchange from another QHP issuer, the enrollees would have paid under the calculated based on policies assigned to and if one, but not all, of the merging, standard plan is equal to the annual the standard plan for the entire benefit acquiring, or acquired parties had limitation on cost sharing for the year for each of the required subgroups selected the simplified methodology for standard plan (as defined at 45 CFR under paragraph (c)(4)(ii) of this section the benefit year, then for the benefit year 156.400), or, at the QHP issuer’s election as follows: in which the merger or acquisition took on a policy-by-policy basis, the amount (A) If the standard plan has only one place, the QHP issuer must calculate the calculated pursuant to the standard deductible (for the applicable amounts that would have been paid methodology described in paragraph subgroup), the average deductible of the using the methodology (whether the (c)(2) of this section, standard plan is that deductible amount. standard methodology described in (ii) The QHP issuer must calculate If the standard plan has more than one paragraph (c)(2) of this section or the one or more sets of effective cost-sharing deductible (for the applicable simplified methodology described in parameters, as described in paragraph subgroup), the average deductible is the paragraph (c)(4) of this section) selected (c)(4)(iii) of this section, based on weighted average of the deductibles, with respect to the plan variation prior policies assigned to the standard plan weighted by allowed costs for EHB to the start of the benefit year (even if without cost-sharing reductions for the under the standard plan for the benefit the selection was not made by that QHP entire benefit year and must separately year that are subject to each separate issuer). For the next benefit year (if such apply each set of effective cost-sharing deductible. Services that are not subject benefit year is 2015 or 2016), the QHP parameters to the corresponding to any deductible (including services issuer may select the simplified subgroup of total allowed costs for EHB subject to copayments or coinsurance methodology (subject to paragraph for each plan variation policy, as but not any deductible) are not to be (c)(3)(ii) of this section but, for that described in paragraph (c)(4)(i) of this incorporated into the calculation of the benefit year, not paragraph (c)(3)(iii) of section, as follows: average deductible. this section) or the standard (A) If the standard plan has separate (B) The effective non-deductible cost methodology. cost-sharing parameters for self-only sharing for the applicable subgroup is (4) Simplified methodology. Subject to coverage and other than self-only the average portion of total allowed paragraph (c)(4)(v) of this section, a coverage, but does not have separate costs for EHB that are not subject to any QHP issuer that selects the simplified cost-sharing parameters for deductible for the standard plan for the methodology described in this pharmaceutical and medical services, benefit year incurred for standard plan paragraph (c)(4) must calculate the the QHP issuer must calculate and enrollees and payable by the enrollees amount that the enrollees would have apply separate sets of effective cost- as cost sharing. The effective non- paid under the standard plan without sharing parameters based on the costs of deductible cost sharing must be cost-sharing reductions for each policy enrollees in the standard plan with self- calculated based only on standard plan that was assigned to a plan variation for only coverage, and based on the costs of policies with total allowed costs for any portion of the benefit year by enrollees in the standard plan with EHB for the benefit year that are above applying each set of the standard plan’s other than self-only coverage. the effective deductible but for which effective cost-sharing parameters (as (B) If the standard plan has separate associated cost sharing for EHB is less calculated under paragraphs (c)(3)(ii) cost-sharing parameters for than the annual limitation on cost and (iii) of this section) to the pharmaceutical and medical services, sharing. corresponding subgroup of total allowed but does not have separate cost-sharing (C) The effective deductible for the costs for EHB for the policy (as parameters for self-only coverage and applicable subgroup is equal to the sum described in paragraph (c)(4)(i) of this other than self-only coverage, the QHP of the average deductible and the section). issuer must calculate and apply separate average total allowed costs for EHB that (i) For plan variation policies with sets of effective cost-sharing parameters are not subject to any deductible for the total allowed costs for EHB for the based on the medical costs of the standard plan for the benefit year. The benefit year that are: enrollees in the standard plan, and average total allowed costs for EHB that

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are not subject to any deductible for the (C) The effective non-deductible cost less than the annual limitation on cost standard plan for the benefit year must sharing amount for each applicable sharing, in either of the following be calculated based only on standard subgroup; categories: plan policies with total allowed costs (D) The effective pre-deductible (1) Coverage of medical services; or for EHB for the benefit year that are coinsurance rate for each applicable (2) Coverage of pharmaceutical above the average deductible but for subgroup; services. which associated cost sharing for EHB is (E) The effective post-deductible (C) The standard plan has separate less than the annual limitation on cost coinsurance rate for each applicable cost-sharing parameters for self-only sharing. subgroup; coverage and other than self-only (D) The effective pre-deductible (F) The effective claims ceiling for coverage and for pharmaceutical and coinsurance rate for the applicable each applicable subgroup; and medical services, and has an enrollment subgroup is the proportion of the total (G) A memorandum developed by a during the benefit year of fewer than allowed costs for EHB under the member of the American Academy of 12,000 member months for coverage standard plan for the benefit year Actuaries in accordance with generally with total allowed costs for EHB for the incurred for standard plan enrollees and accepted actuarial principles and benefit year that are greater than the payable as cost sharing. The effective methodologies that describes how the effective deductible, but for which pre-deductible coinsurance rate must be QHP issuer calculated the effective cost- associated cost sharing for EHB is less calculated based only on standard plan sharing parameters for each applicable than the annual limitation on cost policies with total allowed costs for subgroup for the standard plan. sharing, in any of the following (v) Notwithstanding paragraphs EHB for the benefit year that are less categories: (c)(4)(i) through (iii) of this section, if a than or equal to the effective deductible. (1) Self-only coverage of medical QHP issuer’s standard plan meets the (E) The effective post-deductible services; criteria in any of the following (2) Self-only coverage of coinsurance rate for the applicable subparagraphs, and the QHP issuer has pharmaceutical services; subgroup is the quotient of (x) the selected the simplified methodology (3) Other than self-only coverage of portion of average allowed costs for EHB described in this paragraph (c)(4), then medical services; or subject to a deductible incurred for the QHP issuer must calculate the (4) Other than self-only coverage of enrollees for the benefit year, and amount that the enrollees in the plan pharmaceutical services. payable by the enrollees as cost sharing variation would have paid under the (D) The standard plan does not have other than through a deductible, over standard plan without cost-sharing separate cost-sharing parameters for the difference of (y) the average allowed reductions as the lesser of the annual pharmaceutical and medical services, or costs for EHB subject to a deductible limitation on cost sharing for the for self-only coverage and other than incurred for enrollees for the benefit standard plan or the amount equal to self-only coverage, and has an year, and (z) the average deductible. The the product of, (x) one minus the enrollment during the benefit year of effective post-deductible coinsurance standard plan’s actuarial value, as fewer than 12,000 member months with rate must be calculated based only on calculated under 45 CFR 156.135, and total allowed costs for EHB for the standard plan policies with total (y) the total allowed costs for EHB for benefit year that are greater than the allowed costs for EHB for the benefit the benefit year under each policy that effective deductible, but for which year that are above the effective was assigned to a plan variation for any associated cost sharing for EHB is less deductible but for which associated cost portion of the benefit year. than the annual limitation on cost sharing for EHB is less than the annual (A) The standard plan has separate sharing. limitation on cost sharing. cost-sharing parameters for self-only (vi) Notwithstanding paragraphs (F) The effective claims ceiling for the coverage and other than self-only (c)(4)(i)(A) and (B) of this section, and applicable subgroup is calculated as the coverage, does not have separate cost- paragraphs (c)(4)(iii)(A) through (E) of effective deductible plus the quotient of sharing parameters for pharmaceutical this section, if more than eighty percent (x) the difference between the annual and medical services, and has an of the total allowed costs for EHB for the limitation on cost sharing and the sum enrollment during the benefit year of benefit year under a standard plan for a of the average deductible and the fewer than 12,000 member months for subgroup that requires a separate set of effective non-deductible cost sharing, coverage with total allowed costs for effective cost-sharing parameters divided by (y) the effective post- EHB for the benefit year that are greater pursuant to paragraph (c)(4)(ii) are not deductible coinsurance rate. than the effective deductible, but for subject to a deductible, then: (iv) If a QHP issuer uses the which associated cost sharing for EHB is (A) The average deductible, the simplified methodology described in less than the annual limitation on cost effective non-deductible cost sharing, this paragraph (c)(4), and the QHP sharing, in either of the following and the effective deductible for the issuer’s standard plan does not meet any categories – subgroup equal zero; of the criteria in paragraphs (c)(4)(v)(A) (1) Self-only coverage; or (B) The effective pre-deductible through (D) of this section, the QHP (2) Other than self-only coverage. coinsurance rate for the subgroup is issuer must also submit to HHS, in the (B) The standard plan has separate equal to the effective post-deductible manner and timeframe established by cost-sharing parameters for coinsurance rate for the subgroup, HHS, the following information for each pharmaceutical and medical services, which is determined based on all standard plan offered by the QHP issuer does not have separate cost-sharing standard plan policies for the applicable in the individual market through the parameters for self-only coverage and subgroup for which associated cost Exchange for each of the required other than self-only coverage, and has sharing for EHB is less than the annual subgroups described in paragraph an enrollment during the benefit year of limitation on cost sharing, and (c)(4)(ii) of this section: fewer than 12,000 member months for calculated for the applicable subgroup (A) The average deductible for each coverage with total allowed costs for as the proportion of the total allowed applicable subgroup; EHB for the benefit year that are greater costs for EHB under the standard plan (B) The effective deductible for each than the effective deductible, but for for the benefit year incurred for applicable subgroup; which associated cost sharing for EHB is standard plan enrollees and payable as

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cost sharing (including cost sharing market through a State Exchange must federally-facilitated Exchange as listed payable through a deductible); and adhere to, and ensure that any relevant in this part. (C) The amount that enrollees in the delegated entities and downstream (b) Records. The records described in applicable subgroup in plan variation entities adhere to, the standards set paragraph (a) of this section include the policies with total allowed costs for forth in § 156.705 concerning sources listed in § 155.1210(b)(2), (3), EHB for the benefit year that are less maintenance of documents and records, and (5) of this subchapter. than the effective claims ceiling would whether paper, electronic, or in other (c) Record retention timeframe. have paid under the standard plan must media, by issuers offering QHPs in a Issuers offering QHPs in a Federally- be calculated using the formula in Federally-facilitated Exchange, in facilitated Exchange must maintain all paragraph (c)(4)(i)(A). connection with cost-sharing reductions records referenced in paragraph (a) of * * * * * and advance payments of the premium this section for 10 years. ■ 37. Section 156.460 is amended by tax credit. (d) Record availability. Issuers adding paragraph (c) to read as follows: (b) Annual reporting requirements. offering QHPs in a Federally-facilitated For each benefit year, an issuer that Exchange must make all records in § 156.460 Reduction of enrollee’s share of offers a QHP in the individual market paragraph (a) of this section available to premium to account for advance payments through an Exchange must report to HHS, the OIG, the Comptroller General, of the premium tax credit. HHS, in the manner and timeframe or their designees, upon request. * * * * * required by HHS, summary statistics (c) Refunds to enrollees for improper § 156.715 Compliance Reviews of QHP specified by HHS with respect to Issuers in Federally-facilitated Exchanges. reduction of enrollee’s share of administration of cost-sharing reduction premium to account for advance (a) General standard. Issuers offering and advance payments of the premium QHPs in a Federally-facilitated payments of the premium tax credit. If tax credit programs, including any a QHP issuer discovers that it did not Exchange may be subject to compliance failure to adhere to the standards set reviews to ensure ongoing compliance reduce the portion of the premium forth under § 156.410(a) through (d), charged to or for an enrollee for the with Exchange standards applicable to § 156.425(a) through (b), and issuers offering QHPs in a Federally- applicable month(s) by the amount of § 156.460(a) through (c) of this Part. the advance payment of the premium facilitated Exchange. (c) Audits. HHS or its designee may tax credit in accordance with paragraph (b) Records. In preparation for or in audit an issuer that offers a QHP in the (a)(1) of this section, the QHP issuer the course of the compliance review, a individual market through an Exchange must notify the enrollee of the improper QHP issuer must make available for to assess compliance with the reduction within 45 calendar days of the HHS to review the records of the QHP requirements of this subpart. QHP issuer’s discovery of the improper issuer that pertain to its activities within reduction and refund any excess ■ 39. Subpart H is added to read as a Federally-facilitated Exchange. Such premium paid by or for the enrollee, as follows: records may include, but are not limited follows: Subpart H—Oversight and Financial to the following: (1) Unless a refund is requested by or Integrity Standards for Issuers of Qualified (1) The QHP issuer’s books and for the enrollee, the QHP issuer must, Health Plans in Federally-Facilitated contracts, including the QHP issuer’s within 45 calendar days of discovery of Exchanges policy manuals and other QHP plan the error, apply the excess premium Sec. benefit information provided to the QHP paid by or for the enrollee to the 156.705 Maintenance of records for issuer’s enrollees; enrollee’s portion of the premium (or Federally-facilitated Exchange. (2) The QHP issuer’s policies and refund the amount directly). If any 156.715 Investigations and compliance procedures, protocols, standard excess premium remains, the QHP reviews in Federally-facilitated operating procedures, or other similar issuer must apply the excess premium Exchanges. manuals related to the QHP issuer’s to the enrollee’s portion of the premium activities in a Federally-facilitated Subpart H—Oversight and Financial Exchange; for each subsequent month for the Integrity Standards for Issuers of remainder of the period of enrollment or (3) Any other information reasonably Qualified Health Plans in Federally- necessary for HHS to— benefit year until the excess is fully Facilitated Exchanges applied (or refund the remaining (i) Evaluate the QHP issuer’s amount directly). If any excess premium § 156.705 Maintenance of records for compliance with QHP certification remains at the end of the period of Federally-facilitated Exchanges. standards and other Exchange standards applicable to issuers offering QHPs in a enrollment or benefit year, the QHP (a) General standard. Issuers offering issuer must refund any excess premium Federally-facilitated Exchange; QHPs in a Federally-facilitated (ii) Evaluate the QHP’s performance, within 45 calendar days of the end of Exchange must maintain all documents the period of enrollment or benefit year, including its adherence to an effective and records (whether paper, electronic, compliance plan, within a Federally- whichever comes first. or other media) and other evidence of (2) If a refund is requested by or for facilitated Exchange; accounting procedures and practices, (iii) Verify that the QHP issuer has the enrollee, the refund must be necessary for HHS to do the following: provided within 45 calendar days of the performed the duties attested to as part (1) Periodically audit financial date of the request. of the QHP certification process; and records related to QHP issuers’ (iv) Assess the likelihood of fraud or ■ 38. Section 156.480 is added to participation in a Federally-facilitated abuse. subpart E to read as follows: Exchange, and evaluate the ability of (c) Interest of Qualified Individuals § 156.480 Oversight of the administration QHP issuers to bear the risk of potential and Qualified Employers. HHS’s of the cost-sharing reductions and advance financial losses; and findings from the compliance reviews payments of the premium tax credit (2) Conduct compliance reviews or under this section may be in programs. otherwise monitor QHP issuers’ conjunction with other findings related (a) Maintenance of records. An issuer compliance with all Exchange standards to the QHP issuers’ compliance with that offers a QHP in the individual applicable to issuers offering QHPs in a certification standards, used to confirm

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that permitting the issuer’s QHPs to be 156.939 Effect of submission of proposed date of issuance of either HHS’ notice of available through a Federally-facilitated hearing exhibits. proposed assessment under § 156.805, Exchange is in the interest of the 156.941 Prehearing conferences. notice of decertification of a QHP under qualified individuals and qualified 156.943 Standard of proof. § 156.810(c) or § 156.810(d). The request 156.945 Evidence. employers as provided under 156.947 The record. for hearing should be addressed as § 155.1000(c)(2) of this subchapter. 156.951 Posthearing briefs. instructed in the notice of proposed (d) Onsite and desk reviews. The QHP 156.953 ALJ decision. determination. ‘‘date of issuance’’ is five issuer will make available, for the 156.955 Sanctions. (5) days after the filing date, unless purposes listed in paragraph (c) of this 156.957 Review by Administrator. there is a showing that the document section, its premises, physical facilities 156.959 Judicial review. was received earlier. and equipment (including computer and 156.961 Failure to pay assessment. (b) The ALJ may extend the time for other electronic systems), for HHS to 156.963 Final order not subject to review. filing a request for hearing only if the ALJ finds that the respondent was conduct a compliance review as Subpart J—Administrative Review of prevented by events or circumstances provided under this section. QHP Issuer Sanctions in Federally- beyond its control from filing its request (1) A compliance review under this Facilitated Exchanges section will be carried out as an onsite within the time specified above. Any or desk review based on the specific § 156.901 Definitions. request for an extension of time must be circumstances. In this subpart, unless the context made promptly by written motion. (2) Unless otherwise specified, indicates otherwise: § 156.907 Form and content of request for nothing in this section is intended to ALJ means administrative law judge hearing. preempt Federal laws and regulations of the Departmental Appeals Board of (a) The request for hearing must do related to information privacy and HHS. the following: security. Filing date means the date (1) Identify any factual or legal bases (e) Compliance review timeframe. A postmarked by the U.S. Postal Service, for the assessment or decertifications QHP issuer may be subject to a deposited with a carrier for commercial with which the respondent disagrees. compliance review up to 10 years from delivery, or hand delivered. (2) Describe with reasonable the last day of that plan benefit year, or Hearing includes a hearing on a specificity the basis for the 10 years from the last day that the QHP written record as well as an in-person or disagreement, including any affirmative certification is effective if the QHP is no telephone hearing. facts or legal arguments on which the Party means HHS or the respondent. longer available through a Federally- respondent is relying. Receipt date means five days after the facilitated Exchange; provided, (b) Identify the relevant notice of date of a document, unless there is a however, that if the 10 year review assessment or decertification by date showing that it was in fact received period falls during an ongoing and attach a copy of the notice. compliance review, the review period later. would be extended until the compliance Respondent means an entity that § 156.909 Amendment of notice of review is completed. received a notice of proposed assessment or decertification request for assessment of a civil money penalty hearing. ■ 40. Subpart J is added to read as issued pursuant to § 156.805 or a notice The ALJ may permit CMS to amend follows: of decertification pursuant to its notice of assessment or Subpart J—Administrative Review of QHP § 156.810(c) or (d). decertification, or permit the respondent Issuer Sanctions in Federally-Facilitated to amend a request for hearing that Exchanges § 156.903 Scope of Administrative Law Judge’s (ALJ) authority. complies with § 156.907(a), if the ALJ Sec. finds that no undue prejudice to either 156.901 Definitions. (a) The ALJ has the authority, party will result. 156.903 Scope of Administrative Law including all of the authority conferred Judge’s (ALJ) authority. by the Administrative Procedure Act (5 § 156.911 Dismissal of request for hearing. 156.905 Filing of request for hearing. U.S.C. 554a), to adopt whatever An ALJ will order a request for 156.907 Form and content of request for procedures may be necessary or proper hearing dismissed if the ALJ determines hearing. to carry out in an efficient and effective that: 156.909 Amendment of notice of manner the ALJ’s duty to provide a fair (a) The request for hearing was not assessment or decertification request for and impartial hearing on the record and filed within 30 days as specified by hearing. to issue an initial decision concerning 156.911 Dismissal of request for hearing. § 156.905(a) or any extension of time 156.913 Settlement. the imposition of a civil money penalty granted by the ALJ pursuant to 156.915 Intervention. or the decertification of a QHP offered § 156.905(b). 156.917 Issues to be heard and decided by in a Federally-facilitated Exchange. (b) The request for hearing fails to ALJ. (b) The ALJ’s authority includes the meet the requirements of § 156.907. 156.919 Forms of hearing. authority to modify, consistent with the (c) The entity that filed the request for 156.921 Appearance of counsel. Administrative Procedures Act (5 U.S.C. hearing is not a respondent under 156.923 Communications with the ALJ. 552a), any hearing procedures set out in § 156.901. 156.925 Motions. this subpart. (d) The respondent has abandoned its 156.927 Form and service of submissions. (c) The ALJ does not have the request. 156.929 Computation of time and authority to find invalid or refuse to (e) The respondent withdraws its extensions of time. 156.929 Computation of time and follow Federal statutes or regulations. request for hearing. extensions of time. § 156.905 Filing of request for hearing. § 156.913 Settlement. 156.931 Acknowledgment of request for hearing. (a) A respondent has a right to a HHS has exclusive authority to settle 156.935 Discovery. hearing before an ALJ if it files a request any issue or any case, without the 156.937 Submission of briefs and proposed for hearing that complies with consent of the ALJ at any time before or hearing exhibits. § 156.907(a), within 30 days after the after the ALJ’s decision.

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§ 156.915 Intervention. (b) The ALJ may decide a case based (b) A party filing a submission with (a) The ALJ may grant the request of solely on the written record where there the ALJ must, at the time of filing, serve an entity, other than the respondent, to is no disputed issue of material fact the a copy of such submission on the intervene if all of the following occur: resolution of which requires the receipt opposing party. An intervenor filing a (1) The entity has a significant interest of oral testimony. submission with the ALJ must, at the relating to the subject matter of the case. time of filing, serve a copy of the (2) Disposition of the case will, as a § 156.921 Appearance of counsel. submission on all parties. Service must practical matter, likely impair or impede Any attorney who is to appear on be made by mailing or hand delivering the entity’s ability to protect that behalf of a party must promptly file, a copy of the submission to the interest. with the ALJ, a notice of appearance. opposing party. If a party is represented (3) The entity’s interest is not § 156.923 Communications with the ALJ. by an attorney, service must be made on adequately represented by the existing the attorney. parties. No party or person (except employees (4) The intervention will not unduly of the ALJ’s office) may communicate in § 156.929 Computation of time and delay or prejudice the adjudication of any way with the ALJ on any matter at extensions of time. the rights of the existing parties. issue in a case, unless on notice and (a) For purposes of this subpart, in (b) A request for intervention must opportunity for both parties to computing any period of time, the time specify the grounds for intervention and participate. This provision does not begins with the day following the act, the manner in which the entity seeks to prohibit a party or person from event, or default and includes the last participate in the proceedings. Any inquiring about the status of a case or day of the period unless it is a Saturday, participation by an intervenor must be asking routine questions concerning Sunday, or legal holiday observed by in the manner and by any deadline set administrative functions or procedures. the Federal government, in which event it includes the next business day. When by the ALJ. § 156.925 Motions. (c) The Department of Labor (DOL) or the period of time allowed is less than the Internal Revenue Service (IRS) may (a) Any request to the ALJ for an order seven days, intermediate Saturdays, intervene without regard to paragraphs or ruling must be by motion, stating the Sundays, and legal holidays observed by (a)(1) through (3) of this section. relief sought, the authority relied upon, the Federal government are excluded and the facts alleged. All motions must from the computation. § 156.917 Issues to be heard and decided be in writing, with a copy served on the (b) The period of time for filing any by ALJ. opposing party, except in either of the responsive pleading or papers is (a) The ALJ has the authority to hear following situations: determined by the date of receipt (as and decide the following issues: (1) The motion is presented during an defined in § 156.901) of the submission (1) Whether a basis exists to assess a oral proceeding before an ALJ at which to which a response is being made. civil money penalty against the both parties have the opportunity to be (c) The ALJ may grant extensions of respondent. present. the filing deadlines specified in these (2) Whether the amount of the (2) An extension of time is being regulations or set by the ALJ for good assessed civil money penalty is requested by agreement of the parties or cause shown (except that requests for reasonable. with waiver of objections by the extensions of time to file a request for (3) Whether a basis exists to decertify opposing party. hearing may be granted only on the a QHP offered by the respondent in a (b) Unless otherwise specified in this grounds specified in § 156.905(b)). Federally-facilitated Exchange. subpart, any response or opposition to (b) In deciding whether the amount of a motion must be filed within 20 days § 156.931 Acknowledgment of request for a civil money penalty is reasonable, the of the party’s receipt of the motion. The hearing. ALJ— ALJ does not rule on a motion before the After receipt of the request for (1) Will apply the factors that are time for filing a response to the motion hearing, the ALJ assigned to the case or identified in § 156.805 for civil money has expired except where the response someone acting on behalf of the ALJ will penalties. is filed at an earlier date, where the send a letter to the parties that (2) May consider evidence of record opposing party consents to the motion acknowledges receipt of the request for relating to any factor that HHS did not being granted, or where the ALJ hearing, identifies the docket number apply in making its initial determines that the motion should be assigned to the case, provides determination, so long as that factor is denied. instructions for filing submissions and identified in this subpart. other general information concerning (c) If the ALJ finds that a basis exists § 156.927 Form and service of procedures, and sets out the next steps to assess a civil money penalty, the ALJ submissions. in the case. may sustain, reduce, or increase the (a) Every submission filed with the penalty that HHS assessed. ALJ must be filed in triplicate, including § 156.935 Discovery. one original of any signed documents, (a) The parties must identify any need § 156.919 Forms of hearing. and include: for discovery from the opposing party as (a) All hearings before an ALJ are on (1) A caption on the first page, setting soon as possible, but no later than the the record. The ALJ may receive forth the title of the case, the docket time for the reply specified in argument or testimony in writing, in number (if known), and a description of § 156.937(c). Upon request of a party, person, or by telephone. The ALJ may the submission (such as ‘‘Motion for the ALJ may stay proceedings for a receive testimony by telephone only if Discovery’’). reasonable period pending completion the ALJ determines that doing so is in (2) The signatory’s name, address, and of discovery if the ALJ determines that the interest of justice and economy and telephone number. a party would not be able to make the that no party will be unduly prejudiced. (3) A signed certificate of service, submissions required by § 156.937 The ALJ may require submission of a specifying each address to which a copy without discovery. The parties should witness’ direct testimony in writing of the submission is sent, the date on attempt to resolve any discovery issues only if the witness is available for cross- which it is sent, and the method of informally before seeking an order from examination. service. the ALJ.

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(b) Discovery devices may include tabbed and organized chronologically § 156.941 Prehearing conferences. requests for production of documents, and accompanied by an indexed list An ALJ may schedule one or more requests for admission, interrogatories, identifying each document. prehearing conferences (generally depositions, and stipulations. The ALJ (3) A statement regarding whether conducted by telephone) on the ALJ’s orders interrogatories or depositions there is a need for an in-person hearing own motion or at the request of either only if these are the only means to and, if so, a list of proposed witnesses party for the purpose of any of the develop the record adequately on an and a summary of their expected following: issue that the ALJ must resolve to testimony that refers to any factual (a) Hearing argument on any decide the case. dispute to which the testimony will outstanding discovery request. (c) Each discovery request must be relate. (b) Establishing a schedule for any responded to within 30 days of receipt, (4) Any stipulations or admissions. supplements to the submissions unless that period of time is extended (b) Within 30 days of its receipt of the required by § 156.937 because of for good cause by the ALJ. respondent’s submission required by information obtained through discovery. (d) A party to whom a discovery paragraph (a) of this section, CMS will (c) Hearing argument on a motion. request is directed may object in writing file the following with the ALJ: (d) Discussing whether the parties can for any of the following reasons: (1) A statement responding to the agree to submission of the case on a (1) Compliance with the request is respondent’s brief, including the stipulated record. unduly burdensome or expensive. respondent’s proposed hearing exhibits, (e) Establishing a schedule for an in- (2) Compliance with the request will if appropriate. The statement may person hearing, including setting unduly delay the proceedings. include citations to CMS’s proposed deadlines for the submission of written (3) The request seeks information that hearing exhibits submitted in direct testimony or for the written is wholly outside of any matter in accordance with paragraph (b)(2) of this reports of experts. dispute. section. (f) Discussing whether the issues for (4) The request seeks privileged (2) Any documents supporting CMS’s a hearing can be simplified or narrowed. information. Any party asserting a claim response not already submitted as part (g) Discussing potential settlement of of privilege must sufficiently describe of the respondent’s proposed hearing the case. the information or document being exhibits, organized and indexed as (h) Discussing any other procedural or withheld to show that the privilege indicated in paragraph (a)(2) of this substantive issues. applies. If an asserted privilege applies section (CMS’s proposed hearing § 156.943 Standard of proof. to only part of a document, a party exhibits). (a) In all cases before an ALJ— withholding the entire document must (3) A statement regarding whether (1) CMS has the burden of coming state why the nonprivileged part is not there is a need for an in-person hearing forward with evidence sufficient to segregable. and, if so, a list of proposed witnesses establish a prima facie case; (5) The disclosure of information and a summary of their expected (2) The respondent has the burden of responsive to the discovery request is testimony that refers to any factual coming forward with evidence in prohibited by law. dispute to which the testimony will response, once CMS has established a (e) Any motion to compel discovery relate. prima facie case; and must be filed within 10 days after (4) Any admissions or stipulations. (3) CMS has the burden of persuasion receipt of objections to the party’s (c) Within 15 days of its receipt of regarding facts material to the discovery request, within 10 days after CMS’s submission required by assessment or decertification; and the time for response to the discovery paragraph (b) of this section, the (4) The respondent has the burden of request has elapsed if no response is respondent may file with the ALJ a persuasion regarding facts relating to an received, or within 10 days after receipt reply to CMS’s submission. affirmative defense. of an incomplete response to the (b) The preponderance of the discovery request. The motion must be § 156.939 Effect of submission of proposed hearing exhibits. evidence standard applies to all cases reasonably specific as to the information before the ALJ. or document sought and must state its (a) Any proposed hearing exhibit relevance to the issues in the case. submitted by a party in accordance with § 156.945 Evidence. § 156.937 is deemed part of the record (a) The ALJ will determine the § 156.937 Submission of briefs and unless the opposing party raises an admissibility of evidence. proposed hearing exhibits. objection to that exhibit and the ALJ (b) Except as provided in this part, the (a) Within 60 days of its receipt of the rules to exclude it from the record. An ALJ will not be bound by the Federal acknowledgment provided for in objection must be raised either in Rules of Evidence. However, the ALJ § 156.931, the respondent must file the writing prior to the prehearing may apply the Federal Rules of following with the ALJ: conference provided for in § 156.941 or Evidence where appropriate; for (1) A statement of its arguments at the prehearing conference. The ALJ example, to exclude unreliable concerning CMS’s notice of assessment may require a party to submit the evidence. or decertification (respondent’s brief), original hearing exhibit on his or her (c) The ALJ excludes irrelevant or including citations to the respondent’s own motion or in response to a immaterial evidence. hearing exhibits provided in accordance challenge to the authenticity of a (d) Although relevant, evidence may with paragraph (a)(2) of this section. proposed hearing exhibit. be excluded if its probative value is The brief may not address factual or (b) A party may introduce a proposed substantially outweighed by the danger legal bases for the assessment or hearing exhibit following the times for of unfair prejudice, confusion of the decertification that the respondent did submission specified in § 156.937 only issues, or by considerations of undue not identify as disputed in its request if the party establishes to the delay or needless presentation of for hearing or in an amendment to that satisfaction of the ALJ that it could not cumulative evidence. request permitted by the ALJ. have produced the exhibit earlier and (e) Although relevant, evidence is (2) All documents (including any that the opposing party will not be excluded if it is privileged under affidavits) supporting its arguments, prejudiced. Federal law.

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(f) Evidence concerning offers of § 156.953 ALJ decision. (c) Within 30 days of the date of the compromise or settlement made in this The ALJ will issue an initial agency initial agency decision, the action will be inadmissible to the extent decision based only on the record and Administrator will mail a notice provided in the Federal Rules of on applicable law; the decision will advising the respondent of any intent to Evidence. contain findings of fact and conclusions review the decision in whole or in part. (g) Evidence of acts other than those of law. The ALJ’s decision is final and (d) Within 30 days of receipt of a at issue in the instant case is admissible appealable after 30 days unless it is notice that the Administrator intends to in determining the amount of any civil modified or vacated under § 156.957. review an initial agency decision, the respondent may submit, in writing, to money penalty if those acts are used § 156.955 Sanctions. under § 156.805 of this part to consider the Administrator any arguments in (a) The ALJ may sanction a party or the entity’s prior record of compliance, support of, or exceptions to, the initial an attorney for failing to comply with an or to show motive, opportunity, intent, agency decision. order or other directive or with a knowledge, preparation, identity, or (e) This submission of the information requirement of a regulation, for lack of mistake. This evidence is indicated in paragraph (d) of this abandonment of a case, or for other admissible regardless of whether the section must be limited to issues the actions that interfere with the speedy, acts occurred during the statute of Administrator has identified in his or orderly or fair conduct of the hearing. limitations period applicable to the acts her notice of intent to review, if the Any sanction that is imposed will relate that constitute the basis for liability in Administrator has given notice of an reasonably to the severity and nature of the case and regardless of whether HHS’ intent to review the initial agency the failure or action. decision only in part. A copy of this notice sent in accordance with § 156.805 (b) A sanction may include any of the submission must be sent to the other referred to them. following actions: party. (h) The ALJ will permit the parties to (1) In the case of failure or refusal to introduce rebuttal witnesses and provide or permit discovery, drawing (f) After receipt of any submissions evidence. negative fact inferences or treating such made pursuant to paragraph (d) of this section and any additional submissions (i) All documents and other evidence failure or refusal as an admission by for which the Administrator may offered or taken for the record will be deeming the matter, or certain facts, to provide, the Administrator will affirm, open to examination by all parties, be established. reverse, modify, or remand the initial unless the ALJ orders otherwise for good (2) Prohibiting a party from agency decision. The Administrator will cause shown. introducing certain evidence or otherwise advocating a particular claim mail a copy of his or her decision to the (j) The ALJ may not consider evidence respondent. regarding the willingness and ability to or defense. (3) Striking pleadings, in whole or in (g) The Administrator’s decision will enter into and successfully complete a be based on the record on which the corrective action plan when that part. (4) Staying the case. initial agency decision was based (as evidence pertains to matters occurring (5) Dismissing the case. forwarded by the ALJ to the after HHS’ notice under § 156.805(d) or (6) Entering a decision by default. Administrator) and any materials § 156.810(c) or § 156.810(d). (7) Refusing to consider any motion or submitted pursuant to paragraphs (b), § 156.947 The record. other document that is not filed in a (d), and (f) of this section. timely manner. (h) The Administrator’s decision may (a) Any testimony that is taken in- (8) Taking other appropriate action. rely on decisions of any courts and person or by telephone is recorded and § 156.957 Review by Administrator. other applicable law, whether or not transcribed. The ALJ may order that cited in the initial agency decision. other proceedings in a case, such as a (a) The Administrator of CMS (which prehearing conference or oral argument for purposes of this section may include § 156.959 Judicial review. of a motion, be recorded and his or her delegate), at his or her (a) Filing of an action for review. Any transcribed. discretion, may review in whole or in responsible entity against whom a final (b) The transcript of any testimony, part any initial agency decision issued order imposing a civil money penalty or exhibits and other evidence that is under § 156.953. decertification of a QHP is entered may admitted, and all pleadings and other (b) The Administrator may decide to obtain review in the United States documents that are filed in the case review an initial agency decision if it District Court for any district in which constitute the record for purposes of an appears from a preliminary review of the entity is located or in the United ALJ decision. the decision (or from a preliminary States District Court for the District of review of the record on which the initial Columbia by doing the following: (c) For good cause, the ALJ may order agency decision was based, if available (1) Filing a notice of appeal in that appropriate redactions made to the at the time) that: record. (1) The ALJ made an erroneous court within 30 days from the date of a final order. § 156.951 Posthearing briefs. interpretation of law or regulation. (2) The initial agency decision is not (2) Simultaneously sending a copy of Each party is entitled to file proposed supported by substantial evidence. the notice of appeal by registered mail findings and conclusions, and (3) The ALJ has incorrectly assumed to HHS. supporting reasons, in a posthearing or denied jurisdiction or extended his or (b) Certification of administrative brief. The ALJ will establish the her authority to a degree not provided record. HHS promptly certifies and files schedule by which such briefs must be for by statute or regulation. with the court the record upon which filed. The ALJ may direct the parties to (4) The ALJ decision requires the penalty was assessed. brief specific questions in a case and clarification, amplification, or an (c) Standard of review. The findings may impose page limits on posthearing alternative legal basis for the decision. of HHS and the ALJ may not be set aside briefs. Additionally, the ALJ may allow (5) The ALJ decision otherwise unless they are found to be unsupported the parties to file posthearing reply requires modification, reversal, or by substantial evidence, as provided by briefs. remand. 5 U.S.C. 706(2)(E).

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§ 156.961 Failure to pay assessment. (3) Ensure the accuracy of their data ■ 42. Section 156.1210 is added to If any entity fails to pay an assessment collection, calculation and submission subpart M to read as follows: after it becomes a final order, or after the processes and attest to HHS the veracity court has entered final judgment in of the data and these processes; § 156.1210 Confirmation of HHS payment and collections reports. favor of CMS, CMS refers the matter to (4) Sign and execute a standard HHS the Attorney General, who brings an data use agreement, in a form and (a) Responses to reports. Within 15 action against the entity in the manner to be determined by HHS, that calendar days of the date of a payment appropriate United States district court establishes protocols related to the and collections report from HHS, the to recover the amount assessed. disclosure, use, and reuse of HHS data; issuer must, in a format specified by HHS, either: § 156.963 Final order not subject to review. (5) Adhere to the enrollee satisfaction survey protocols and technical (1) Confirm to HHS that the amounts In an action brought under § 156.961, specifications in a manner and form identified in the payment and the validity and appropriateness of the required by HHS; collections report for the timeframe final order imposing a civil money (6) Develop and submit to HHS a specified in the report accurately reflect penalty is not subject to review. applicable payments owed by the issuer ■ quality assurance plan and any 41. Subpart L is added to read as supporting documentation as to the Federal government and the follows: determined to be relevant by HHS. The payments owed to the issuer by the Federal government; or Subpart L—Quality Standards plan must describe in adequate detail the implementation of and compliance (2) Describe to HHS any inaccuracy it § 156.1105 Establishment of standards for with all required protocols and identifies in the payment and HHS-approved enrollee satisfaction survey technical specifications described in collections report. vendors for use by QHP issuers in paragraph (b)(5) of this section; (b) Late discovery of a discrepancy. If Exchanges. (7) Adhere to privacy and security an issuer reports a discrepancy in a (a) Application for approval. An standards established and implemented payment and collections report later enrollee satisfaction survey vendor must under § 155.260 of this subchapter by than 15 calendar days after the date of be approved by HHS, in a form and the Exchange with which they are the report, HHS will work with the manner to be determined by HHS, to associated; issuer to resolve the discrepancy as long administer, on behalf of a QHP issuer, (8) Comply with all applicable State as the late reporting was not due to enrollee satisfaction surveys to QHP and Federal laws; misconduct on the part of the issuer. enrollees. HHS will approve enrollee (9) Become a registered user of the satisfaction survey vendors on an (Catalog of Federal Domestic Assistance enrollee satisfaction survey data Program No. 93.778, Medical Assistance annual basis, and each enrollee warehouse to submit files to HHS on Program) satisfaction survey vendor must submit behalf of its authorized QHP contracts; (Catalog of Federal Domestic Assistance an application for each year that (10) Participate in and cooperate with Program No. 93.773, Medicare—Hospital approval is sought. Insurance; and Program No. 93.774, (b) Standards. To be approved by HHS oversight for quality-related Medicare—Supplementary Medical HHS, an enrollee satisfaction survey activities, including, but not limited to: Insurance Program) vendor must meet each of the following review of the enrollee satisfaction survey vendor’s quality assurance plan Dated: September 27, 2013. standards: Marilyn Tavenner, (1) Sign and submit an application and other supporting documentation; form for approval in accordance with analysis of the vendor’s submitted data Administrator, Centers for Medicare & Medicaid Services. paragraph (a) of this section; and sampling procedures; and site visits (2) Ensure, on an annual basis, that and conference calls; and, Dated: Approved: October 18, 2013 appropriate staff participate in enrollee (11) Comply with minimum business Kathleen Sebelius, satisfaction survey vendor training and criteria as established by HHS. Secretary, Department of Health and Human successfully complete a post-training (c) Approved list. A list of approved Services. certification exercise as established by enrollee satisfaction survey vendors will [FR Doc. 2013–25326 Filed 10–24–13; 4:15 pm] HHS; be published on an HHS Web site. BILLING CODE 4120–01–P

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Part III Department of the Treasury Office of the Comptroller of the Currency 12 CFR Parts 22 and 172 Federal Reserve System 12 CFR Part 208 Federal Deposit Insurance Corporation 12 CFR Parts 339 and 391 Farm Credit Administration 12 CFR Part 614 National Credit Union Administration 12 CFR Part 760 Loans in Areas Having Special Flood Hazards; Proposed Rule

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DEPARTMENT OF THE TREASURY corrections. Furthermore, the OCC and attachments and other supporting the FDIC are proposing to integrate their materials, are part of the public record Office of the Comptroller of the flood insurance regulations for national and subject to public disclosure. Do not Currency banks and Federal savings associations enclose any information in your and for State non-member banks and comment or supporting materials that 12 CFR Parts 22, 172 State savings associations, respectively. you consider confidential or [Docket ID OCC–2013–0015] DATES: Comments must be received on inappropriate for public disclosure. or before December 10, 2013, except that You may review comments and other RIN 1557–AD67 comments on the Paperwork Reduction related materials that pertain to this Act analysis in part V of the rulemaking action by any of the FEDERAL RESERVE SYSTEM SUPPLEMENTARY INFORMATION must be following methods: • received on or before December 30, Viewing Comments Electronically: 12 CFR Part 208 2013. Go to http://www.regulations.gov. Enter ‘‘Docket ID OCC–2013–0015’’ in the [Regulation H, Docket No. R–1462] ADDRESSES: Interested parties are Search box and click ‘‘Search.’’ RIN 7100 AE–00 encouraged to submit written comments Comments can be filtered by Agency jointly to all of the Agencies. using the filtering tools on the left side FEDERAL DEPOSIT INSURANCE Commenters are encouraged to use the of the screen. Click on the ‘‘Help’’ tab CORPORATION title ‘‘Loans in Areas Having Special on the Regulations.gov home page to get Flood Hazards’’ to facilitate the information on using Regulations.gov, 12 CFR Parts 339, 391 organization and distribution of including instructions for viewing comments among the Agencies. RIN 3064–AE03 public comments, viewing other Interested parties are invited to submit supporting and related materials, and written comments to: FARM CREDIT ADMINISTRATION viewing the docket after the close of the OCC: Because paper mail in the comment period. Washington, DC area and at the OCC is 12 CFR Part 614 • Viewing Comments Personally: You subject to delay, commenters are may personally inspect and photocopy RIN 3052–AC93 encouraged to submit comments by the comments at the OCC, 400 7th Street Federal eRulemaking Portal or email, if SW., Washington, DC. For security NATIONAL CREDIT UNION possible. Please use the title ‘‘Loans in reasons, the OCC requires that visitors ADMINISTRATION Areas Having Special Flood Hazards’’ to make an appointment to inspect facilitate the organization and comments. You may do so by calling 12 CFR Part 760 distribution of the comments. You may (202) 649–6700. Upon arrival, visitors RIN 3133–AE18 submit comments by any of the will be required to present valid following methods: • government-issued photo identification Loans in Areas Having Special Flood Federal eRulemaking Portal— and to submit to security screening in Hazards ‘‘regulations.gov’’: Go to http:// order to inspect and photocopy www.regulations.gov. Enter ‘‘Docket ID comments. AGENCY: Office of the Comptroller of the OCC–2013–0015’’ in the Search Box and • Docket: You may also view or Currency, Treasury; Board of Governors click ‘‘Search.’’ Results can be filtered request available background of the Federal Reserve System; Federal using the filtering tools on the left side documents and project summaries using Deposit Insurance Corporation; Farm of the screen. Click on ‘‘Comment Now’’ the methods described above. Credit Administration; National Credit to submit public comments. Click on the Board: You may submit comments, Union Administration. ‘‘Help’’ tab on the Regulations.gov home identified by Docket No. R–1462 or RIN ACTION: Joint notice of proposed page to get information on using 7100 AE–00, by any of the following rulemaking. Regulations.gov, including instructions methods: for submitting public comments. • Agency Web site: http:// SUMMARY: The Office of the Comptroller • Email: regs.comments@ www.federalreserve.gov. Follow the of the Currency (OCC), Board of occ.treas.gov. instructions for submitting comments at Governors of the Federal Reserve • Mail: Legislative and Regulatory http://www.federalreserve.gov/ System (Board), Federal Deposit Activities Division, Office of the generalinfo/foia/ProposedRegs.cfm. Insurance Corporation (FDIC), the Farm Comptroller of the Currency, 400 7th • Federal eRulemaking Portal: http:// Credit Administration (FCA), and the Street SW., Suite 3E–218, Mail Stop www.regulations.gov. Follow the National Credit Union Administration 9W–11, Washington, DC 20219. instructions for submitting comments. (NCUA) (collectively, the Agencies) are • Hand Delivery/Courier: 400 7th • Email: regs.comments@ proposing to amend their regulations Street SW., Suite 3E–218, Mail Stop federalreserve.gov. Include the docket regarding loans in areas having special 9W–11, Washington, DC 20219. number in the subject line of the flood hazards to implement provisions • Fax: (571) 465–4326. message. of the Biggert-Waters Flood Insurance Instructions: You must include • Fax: (202) 452–3819 or (202) 452– Reform Act of 2012. Specifically, the ‘‘OCC’’ as the agency name and ‘‘Docket 3102. proposal would establish requirements ID OCC–2013–0015’’ in your comment. • Mail: Address to Robert deV. with respect to the escrow of flood In general, OCC will enter all comments Frierson, Secretary, Board of Governors insurance payments, the acceptance of received into the docket and publish of the Federal Reserve System, 20th private flood insurance coverage, and them on the Regulations.gov Web site Street and Constitution Avenue NW., the force-placement of flood insurance. without change, including any business Washington, DC 20551. The proposal also would clarify the or personal information that you All public comments will be made Agencies’ flood insurance regulations provide such as name and address available on the Board’s Web site at with respect to other amendments made information, email addresses, or phone http://www.federalreserve.gov/ by the Act and make technical numbers. Comments received, including generalinfo/foia/ProposedRegs.cfm as

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submitted, unless modified for technical Web site, Select ‘‘Law & Regulations,’’ Services Analyst (202) 452–2705; Vivian reasons. Accordingly, comments will then ‘‘FCA Regulations,’’ then ‘‘Public W. Wong, Counsel (202) 452–3667, not be edited to remove any identifying Comments,’’ and follow the directions Division of Consumer and Community or contact information. Public for ‘‘Reading Submitted Public Affairs; or Daniel Ericson, Counsel (202) comments may also be viewed Comments.’’ We will show your 452–3359, Legal Division; for users of electronically or in paper in Room MP– comments as submitted, including any Telecommunications Device for the Deaf 500 of the Board’s Martin Building (20th supporting data provided, but for (TDD) only, contact (202) 263–4869. and C Streets NW.) between 9:00 a.m. technical reasons we may omit items FDIC: Navid Choudhury, Senior and 5:00 p.m. on weekdays. such as logos and special characters. Attorney, Consumer Compliance FDIC: You may submit comments by Identifying information that you Section (202) 898–6526, Legal Division; any of the following methods: provide, such as phone numbers and or John Jackwood, Senior Policy Analyst • Federal eRulemaking Portal: http:// addresses, will be publicly available. www.regulations.gov. Follow the (202) 898–3991, Division of Depositor However, we will attempt to remove and Consumer Protection. instructions for submitting comments. email addresses to help reduce Internet • Agency Web site: http:// spam. FCA: Paul K. Gibbs, Senior www.fdic.gov/regulations/laws/federal/ NCUA: You may submit comments, Accountant, Office of Regulatory Policy propose.html identified by RIN 3133–AE18 by any of (703) 883–4203, TTY (703) 883–4056; or • Mail: Robert E. Feldman, Executive the following methods (Please send Mary Alice Donner, Senior Counsel, Secretary, Attention: Comments/Legal comments by one method only): Office of General Counsel (703) 883– ESS, Federal Deposit Insurance • Federal eRulemaking Portal: http:// 4020, TTY (703) 883–4056. Corporation, 550 17th Street NW., www.regulations.gov. Follow the NCUA: Sarah Chung, Staff Attorney, Washington, DC 20429. instructions for submitting comments. • (703) 518–1178, Office of General Hand Delivered/Courier: The guard • Agency Web site: http:// Counsel. station at the rear of the 550 17th Street www.ncua.gov/Legal/Regs/Pages/ Building (located on F Street), on PropRegs.aspx. Follow the instructions SUPPLEMENTARY INFORMATION: business days between 7:00 a.m. and for submitting comments. 5:00 p.m. • I. Background • Email: Address to regcomments@ Email: [email protected]. ncua.gov. Include [Your name] A. Introduction Comments submitted must include Comments on ‘‘Loans in Areas Having ‘‘FDIC’’ and ‘‘Loans in Areas Having Special Flood Hazards’’ in the email The Biggert-Waters Flood Insurance Special Flood Hazards.’’ Comments subject line. Reform Act of 2012 1 (the Act), signed received will be posted without change • Fax: (703) 518–6319. Use the into law by the President on July 6, to http://www.fdic.gov/regulations/laws/ subject line described above for email. 2012, significantly revised Federal flood federal/propose.html, including any • Mail: Address to Gerard Poliquin, insurance statutes. Section 100209 of personal information provided. Secretary of the Board, National Credit the Act, relating to the escrow of flood FCA: We offer a variety of methods for Union Administration, 1775 Duke insurance payments, and section 100239 you to submit your comments. For Street, Alexandria, Virginia 22314– of the Act, relating to the acceptance of accuracy and efficiency reasons, 3428. private flood insurance coverage, commenters are encouraged to submit • Hand Delivery/Courier: Same as amended provisions of the Flood comments by email or through the mail address. Disaster Protection Act (FDPA) 2 that FCA’s Web site. As facsimiles (fax) are You can view all public comments on require the Agencies to issue difficult for us to process and achieve NCUA’s Web site at http:// implementing regulations. Section compliance with section 508 of the www.ncua.gov/Legal/Regs/Pages/ 100244 of the Act, relating to force- Rehabilitation Act, we are no longer PropRegs.aspx as submitted, except for placed insurance, necessitates accepting comments submitted by fax. those we cannot post for technical conforming revisions to the Agencies’ Regardless of the method you use, reasons. NCUA will not edit or remove current flood insurance regulations. The please do not submit your comments any identifying or contact information Agencies jointly are issuing this multiple times via different methods. from the public comments submitted. proposal to revise their regulations You may submit comments by any of You may inspect paper copies of accordingly. In connection with the the following methods: issuance of this proposal, the Agencies • comments in NCUA’s law library at Email: Send us an email at reg- 1775 Duke Street, Alexandria, Virginia have coordinated and consulted with [email protected]. 22314, by appointment weekdays the Federal Financial Institutions • Agency Web site: http:// between 9:00 a.m. and 3:00 p.m. To Examination Council (FFIEC), as is www.fca.gov. Select ‘‘Law & make an appointment, call (703) 518– required by certain provisions of the Regulations,’’ then ‘‘FCA Regulations,’’ 6546 or send an email to OGCMail@ flood insurance statutes.3 The Agencies’ then ‘‘Public Comments,’’ and follow ncua.gov. proposal would implement only certain the directions for ‘‘Submitting a provisions of the Act over which the FOR FURTHER INFORMATION CONTACT: Comment.’’ Agencies have jurisdiction. • OCC: Rhonda L. Daniels, Compliance Federal eRulemaking Portal: http:// Accordingly, the Agencies encourage Specialist, Compliance Policy Division, www.regulations.gov. Follow the lenders to consult the Act for further (202) 649–5405; Margaret C. Hesse, instructions for submitting comments. information about revisions to the flood • Senior Counsel, Community and Mail: Barry F. Mardock, Deputy insurance statutes that will not be Consumer Law Division, (202) 649– Director, Office of Regulatory Policy, implemented through this rulemaking. Farm Credit Administration, 1501 Farm 6350, or Heidi M. Thomas, Special Credit Drive, McLean, VA 22102–5090. Counsel, Legislative and Regulatory 1 You may review copies of all Activities Division, (202) 649–5490, Public Law 112–141, 126 Stat. 916 (2012). 2 Public Law 93–234, 87 Stat. 975 (1973). comments we receive at our office in Office of the Chief Counsel. 3 See 42 U.S.C. 4012a(b)(1). The heads of four of McLean, Virginia or on our Web site at Board: Lanette Meister, Senior the five Agencies (OCC, Board, FDIC, and NCUA) http://www.fca.gov. Once you are in the Supervisory Consumer Financial comprise part of the membership of the FFIEC.

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B. Flood Insurance Statutes comprehensively amended the Federal fees for flood insurance on residential 10 The National Flood Insurance Act of flood insurance statutes. The Reform improved real estate, unless the 1968 (1968 Act) 4 and the FDPA govern Act established new requirements on regulated lending institution meets the 14 the National Flood Insurance Program Federally regulated lending institutions, statutory small institution exception; (NFIP).5 The 1968 Act made Federally such as the escrow for flood insurance (iii) directs regulated lending subsidized flood insurance available to premiums under certain conditions and institutions to accept private flood owners of improved real estate or mandatory force-placement of flood insurance, as defined by the Act, and to mobile homes located in special flood insurance coverage. The Reform Act was notify borrowers of the availability of 15 hazard areas if the community where intended to increase compliance with private flood insurance; and (iv) the improved real estate or mobile home the mandatory flood insurance purchase amends the force-placement is located participates in the NFIP. A requirements and participation in the requirement to clarify that regulated special flood hazard area (SFHA) is an NFIP in order to provide additional lending institutions may charge a area within a floodplain having a one income to the National Flood Insurance borrower for the cost of premiums and percent or greater chance of flood Fund and to decrease the financial fees incurred for coverage beginning on burden of flooding on the Federal occurrence in any given year.6 SFHAs the date on which the flood insurance government, taxpayers, and flood are delineated on maps issued by FEMA coverage lapsed or did not provide victims. In addition, the Reform Act for individual communities.7 A sufficient coverage and to prescribe the broadened the definition of ‘‘Federal community establishes its eligibility to procedures for terminating force-placed entity for lending regulation’’ to include 16 participate in the NFIP by adopting and insurance. the FCA, thereby increasing the number 17 enforcing floodplain management The civil money penalty provisions, of regulated lending institutions subject measures to regulate new construction and the force-placement requirements to the mandatory flood insurance and by making substantial were effective upon enactment. In purchase requirement to include lenders improvements within its SFHAs to contrast, both the escrow and private regulated by the FCA. flood insurance provisions will become eliminate or minimize future flood The Reform Act required the Agencies 8 effective when the Agencies finalize damage. to revise their flood insurance Until the adoption of the FDPA in implementing regulations. The Agencies regulations and required the FCA to previously published guidance 1973, the purchase of flood insurance promulgate flood insurance regulations was voluntary. The FDPA required the regarding the effective dates of these for the first time. The Agencies fulfilled amendments.18 mandatory purchase of flood insurance these requirements by issuing a joint and directed the OCC, Board, FDIC, final rule in August 1996.11 II. Summary of the Proposal NCUA, and the former Office of Thrift Supervision (OTS) 9 to issue regulations C. The Biggert-Waters Act Amendments As indicated above, the Agencies propose to revise their respective flood governing the lending institutions that Among other changes,12 the Act insurance regulations to implement the they supervised. The resulting significantly amends the NFIP Act’s amendments addressing the regulations directed these lending requirements, over which the Agencies escrow of flood insurance payments, institutions to require flood insurance have jurisdiction. Specifically, the Act: private flood insurance, and force- on improved real estate or mobile (i) Increases the maximum civil money placed insurance. These provisions, and homes serving as collateral for a loan penalty (CMP) that the Agencies may other amendments, proposed by this (secured property) if the secured impose per violation when there is a rulemaking are summarized below and property was located in a SFHA in a pattern or practice of flood violations more specifically described in IV. participating community. The and eliminates the limit on the total regulations also required lenders to amount of penalties that the Agencies Section-by-Section Analysis of this notify borrowers that the secured may assess against a regulated lending preamble. Although the Agencies’ property is located in a SFHA and that institution during any calendar year; 13 proposals are substantively consistent, Federal disaster assistance is available (ii) requires regulated lending the format of the regulatory text varies with respect to the property in the event institutions to escrow premiums and of a flood. 14 Section 100209 of the Act, amending section 102(d) of the FDPA (42 U.S.C. 4012a(d)). Congress Title V of the Riegle Community 10 Public Law 103–325, 108 Stat. 2255 (1994) further amended section 42 U.S.C. 4012a(d) (codified as amended at 42 U.S.C. 4001 et seq. Development and Regulatory subsequent to the enactment of the Act to clarify (1994)). Improvement Act of 1994, also known that the flood insurance escrow requirement applies 11 as the National Flood Insurance Reform 61 FR 45684 (Aug. 29, 1996). only to loans secured by residential improved real 12 The Agencies note, for example, that section Act of 1994 (Reform Act), estate. See Public Law 112–281, 125 Stat. 2485 (Jan. 100222 of the Act mandates a revision to the 14, 2013). Special Information Booklet required under section 15 Section 100239 of the Act, amending section 4 5 of the Real Estate Settlement Procedures Act of Public Law 90–448, 82 Stat. 572 (1968). 102(b) of the FDPA (42 U.S.C. 4012a(b)) and section 1974 (RESPA) (12 U.S.C. 2604(b)) to include a 5 These statutes are codified at 42 U.S.C. 4001– 1364(a)(3)(C) of the 1968 Act (42 U.S.C. 4129. The Federal Emergency Management Agency notice to the borrower of the availability of flood insurance under the NFIP or from a private 4104a(a)(3)(C)). (FEMA) administers the NFIP; its regulations 16 insurance company, whether or not the real estate Section 100244 of the Act, amending section implementing the NFIP appear at 44 CFR parts 59– is located in an area having special flood hazards. 102(e) of the FDPA (42 U.S.C. 4012a(e)). 77. The requirement to revise the Special Information 17 Some of the Agencies have revised their 6 44 CFR 59.1. Booklet is the responsibility of the Bureau of regulations to incorporate these increased civil 7 44 CFR part 65. Consumer Financial Protection (CFPB) under money penalties. See OCC: 77 FR 66529 (Nov. 11, 8 44 CFR part 60. RESPA. In addition, section 100204 of the Act 2012) and 77 FR 76354 (Dec. 28, 2012); Board: 77 9 Title III of the Dodd-Frank Wall Street Reform directs the Administrator of FEMA to make flood FR 68680 (Nov. 16, 2012); FDIC: 77 FR 74573 (Dec. and Consumer Protection Act, Public Law 111–203, insurance available to cover residential properties 17, 2012); and FCA: 78 FR 24336 (April 25, 2013). 124 Stat. 1376 (2010), (Dodd-Frank Act), transferred of five or more residences. The maximum coverage The NCUA is in the process of updating its rule to the powers, duties, and functions formerly made available to such residential properties will reflect this civil money penalty change. performed by the OTS among the FDIC, as to State be equal to the coverage made available to 18 ‘‘Interagency Statement on the Impact of savings associations, the OCC, as to Federal savings commercial properties. Policies for such properties Biggert-Waters Act,’’ March 29, 2013 (Board: CA associations, and the Board as to savings and loan will be made available by FEMA at a later date. 13–2; OCC: Bulletin 2013–10; FDIC: FIL 14–2013, holding companies. The OTS was abolished 90 days 13 Section 100208 of the Act, amending section FCA: Information Memorandum, March 29, 2013; after the transfer date. 102(f)(5) of the FDPA (42 U.S.C. 4012a(f)(5)). NCUA: 13–RA–03).

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to conform to each Agency’s current institutions in complying with the III. Legal Authority regulation. proposal’s requirement to inform Section 102(b) of the FDPA (42 U.S.C. First, the Agencies’ proposal generally existing borrowers about the new 4012a(b)), as amended by the Act, would require regulated lending escrow requirement. An institution provides that the Agencies (after institutions, or servicers acting on their would provide this notice for existing consultation and coordination with the behalf, to escrow premiums and fees for loans when neither the Notice of Special FFIEC) shall by regulation direct flood insurance for any loans secured by Flood Hazards and Availability of regulated lending institutions not to residential improved real estate or a Federal Disaster Relief Assistance nor make, increase, extend, or renew any mobile home, unless the institutions the notice of force-placement is loan secured by improved real estate or qualify for the statutory exception. provided. Finally, as Appendix C, the a mobile home located or to be located Except as may be required under Agencies are proposing a sample clause in an area that has been identified by applicable State law, a regulated lending regarding the new escrow requirement the Administrator of FEMA as an area institution is not required to escrow if that may be included with the force- having special flood hazards and in it has total assets of less than $1 billion placement notice. which flood insurance has been made and, as of the Act’s date of enactment, Fourth, the proposal would amend available under the NFIP, unless the July 6, 2012, was not required by the force-placement of flood insurance building or mobile home and any Federal or State law to escrow taxes or provisions to clarify that a lender or its personal property securing such loan is servicer has the authority to charge a insurance for the term of the loan and covered for the term of the loan by flood did not have a policy to require escrow borrower for the cost of flood insurance insurance. Thus, section 102(b) of the of taxes and insurance. The Agencies coverage commencing on the date on FDPA grants the Agencies rulemaking are proposing to implement the which the borrower’s coverage lapsed or authority to implement this mandatory exception substantially as set forth in became insufficient. The proposal also flood insurance purchase requirement the statute. would stipulate the circumstances as it pertains to regulated lending Second, consistent with the Act, the under which a lender or its servicer Agencies’ proposal would require that institutions. must terminate force-placed flood Furthermore, under section 102(b) of regulated lending institutions accept insurance coverage and refund the FDPA, as amended by section private flood insurance that meets the payments to a borrower. It also sets forth 100239 of the Act, the Agencies (after statutory definition to satisfy the the documentary evidence a lender consultation and coordination with the mandatory purchase requirement. The must accept to confirm that a borrower FFIEC) must by regulation direct proposal also specifically requests has obtained an appropriate amount of comment on whether the Agencies regulated lending institutions to accept flood insurance coverage. private flood insurance as satisfaction of should use their authority under the Fifth, the Agencies propose needed the mandatory flood insurance purchase FDPA to include a provision in the final technical corrections. For example, the requirement, described above. Section rules that expressly permits regulated Agencies’ current flood insurance 102(b) of the FDPA, as amended by lending institutions to accept a flood regulations refer to the ‘‘Director’’ of the section 100239 of the Act, also insurance policy issued by a private FEMA. The correct title for the head of authorizes the Agencies to implement insurer that does not meet the Act’s that agency is ‘‘Administrator.’’ 19 The the definition of private flood insurance definition of ‘‘private flood insurance’’ Agencies’ proposal would correct all to satisfy the FDPA’s general mandatory under section 102(b) of the FDPA, as references to the head of FEMA. amended by the Act, as well as the purchase requirement. The Agencies are Finally, the OCC and the FDIC requirement that the lender disclose to also soliciting comment on what criteria propose to integrate their flood the borrower the availability of flood the Agencies might require for such a insurance regulations for national banks insurance from private insurance policy. Alternatively, the Agencies and Federal savings associations and for solicit comment on whether it is companies. State non-member banks and State The OCC, Board, and FDIC have appropriate to include a provision in the savings associations, respectively. final rules that specifically requires general authority to issue regulations Specifically, the OCC proposes to add assuring the safety and soundness of regulated lending institutions to accept language to its flood insurance depository institutions.21 The NCUA only policies issued by private insurers regulation for national banks, 12 CFR and FCA have similar authority with that meet the statutory definition, and if part 22, to make it applicable to both respect to the institutions that they included, what would be the effect of national banks and Federal savings supervise.22 In addition, section such a provision on the availability of associations, and to remove its privately issued flood insurance. regulation for Federal savings Third, the Agencies’ proposal associations and the FDIC republished the former associations, 12 CFR part 172. Similarly, OTS rule with respect to State savings associations includes new and revised sample notice the FDIC proposes to add language to 12 in 2011, with only nomenclature changes. See 76 forms and clauses. Specifically, the CFR part 339, its flood regulation for FR 49140 (Aug. 9, 2011) (OCC) and 76 FR 47811 proposal amends the current Sample State non-member banks, to make it (Aug. 5, 2011) (FDIC). 21 See 12 U.S.C. 1 and 93a; 12 U.S.C. 321 Form of Notice of Special Flood Hazards applicable to both State non-member and Availability of Federal Disaster (granting the Board authority to impose conditions banks and State savings associations for membership in the Federal Reserve System); 12 Relief Assistance, set forth as Appendix and to remove its flood regulation for U.S.C. 1820(g) (granting the FDIC authority to A in the Agencies’ respective State savings associations, 12 CFR part prescribe regulations to carry out the FDI Act; See also section 39 of the Federal Deposit Insurance Act regulations, to add language concerning 391 subpart D. Parts 22, 172, 339, and the availability of private flood (12 U.S.C. 1831p–1) 391 subpart D, are nearly identical and 22 insurance coverage (pursuant to the The Federal Credit Union Act (12 U.S.C. 1751 contain no substantive differences, as et seq.) and section 5.17 of the Farm Credit Act of notice requirements under section they were originally adopted through an 1971, as amended, (12 U.S.C. 2252). Sections 106, 100239 of the Act) and the escrow interagency rulemaking process.20 201, and 206 of the Federal Credit Union Act (12 requirement. The proposal also adds an U.S.C. 1756, 1781, and 1786) provide NCUA with the authority to examine and supervise Federally additional sample notice form, Notice of 19 6 U.S.C. 313. insured credit unions to protect the credit union Requirement to Escrow for Outstanding 20 The OCC republished the former OTS rule as system and the safety and soundness of the Loans, as Appendix B to assist an OCC rule with respect to Federal savings National Credit Union Share Insurance Fund.

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100239(a)(1), which amended section the State or jurisdiction in which the such subsidiaries are subject to the rules 102(b) of the FDPA, provides that insured building is located by the applicable to the operations of their nothing in that subsection shall be insurance regulator of the State or parent bank pursuant to 12 CFR 5.34. construed to supersede or limit the jurisdiction or, in the case of a policy of Because Federal savings association Agencies’ authority to establish difference in condition, multiple peril, operating subsidiaries also are subject to requirements relating to the financial all risk, or other blanket coverage the same rules applicable to the parent solvency, strength, or claims-paying insuring nonresidential commercial savings association, as provided by 12 ability of private insurance companies property, is recognized, or not CFR 159.3(h), the inclusion of from which a regulated lending disapproved, as a surplus lines insurer ‘‘subsidiary’’ in this definition is institution will accept private flood by the insurance regulator of the State unnecessary and its removal will not insurance. or jurisdiction; 24 (ii) provides flood affect the applicability of 12 CFR part 22 Finally, section 102(d) of the FDPA coverage at least as broad as the to Federal savings association operating (42 U.S.C. 4012a(d)), as amended by coverage provided by a standard flood subsidiaries. section 100209 of the Act and Public insurance policy (SFIP) under the NFIP, Second, the OCC proposes to remove Law No. 112–281,23 states that the including when considering the definition of ‘‘bank,’’ which the rule Agencies (after consultation and deductibles, exclusions, and conditions currently defines as meaning a national coordination with the FFIEC) must by offered by the insurer; (iii) includes a bank. Instead, the term ‘‘bank’’ is regulation require all premiums and fees requirement for the insurer to give 45 replaced with ‘‘national bank’’ for flood insurance under the 1968 Act days’ written notice of cancellation or throughout the rule. for residential improved real estate or a non-renewal of flood insurance coverage FDIC-only definition. The FDIC also mobile home be paid to the regulated to the insured and the regulated lending proposes the following amendments to lending institution or servicer for any institution; (iv) includes information the definitional section for purposes of loan secured by the improved real estate about the availability of flood insurance integrating its State nonmember bank or mobile home with the same coverage under the NFIP; (v) includes a and State savings association flood frequency as payments on the loan are mortgage interest clause similar to the insurance rules. The FDIC proposes to made for the duration of the loan. The clause contained in an SFIP; (vi) remove the definition of ‘‘bank’’ and statute requires that such funds be includes a provision requiring an replace it with ‘‘FDIC-supervised deposited in an escrow account on insured to file suit not later than one institution’’ which would be defined to behalf of the borrower and used to pay year after the date of a written denial for mean any insured depository institution the flood insurance provider when all or part of a claim under a policy; and for which the Federal Deposit Insurance premiums are due. Section 102(d) of the (vii) contains cancellation provisions Corporation is the appropriate Federal FDPA, as amended, also authorizes the that are as restrictive as the provisions banking agency pursuant to section 3(g) Agencies to implement the exception to contained in an SFIP. of the Federal Deposit Insurance Act, 12 Other definitions. The Agencies also this requirement for certain regulated U.S.C. 1813(g). are proposing technical amendments to lending institutions with assets less ______than $1 billion. change the references to the head of . Requirement to purchase flood FEMA from Director to Administrator in insurance where available. IV. Section-by-Section Analysis the definitions and to renumber the In General. ___.___ Authority, purpose, and scope definitions to accommodate the inclusion of the new definition for The current regulation provides that a Since the Agencies last revised their ‘‘private flood insurance.’’ regulated lending institution shall not regulations in 1996, the title of the head OCC-only definitions. The OCC also make, increase, extend, or renew any of FEMA has changed from ‘‘Director’’ proposes the following amendments to designated loan unless the building or to ‘‘Administrator.’’ In accordance with the definition section for purposes of mobile home and any personal property this change, the Agencies are proposing integrating its national bank and Federal securing the loan is covered by flood an amendment to the reference to the savings association flood insurance insurance for the term of the loan. This head of FEMA in the scope section. rules. First, the proposed rule provides provision further provides that flood As part of the OCC’s and FDIC’s that the term ‘‘Federal savings insurance coverage is limited to the consolidation of their flood insurance association’’ means a Federal savings overall value of the property securing rules, the OCC and FDIC also are association as defined in 12 U.S.C. the designated loan minus the value of proposing to insert the term ‘‘Federal 1813(b)(2) and any service corporations the land on which the property is savings association’’ or ‘‘FDIC- thereof. This definition is identical to located. A ‘‘designated loan’’ means a supervised institution’’ where necessary the definition of ‘‘Federal savings loan secured by a building or mobile throughout their flood insurance rules. association’’ in 12 CFR part 172, except home that is located or to be located in ___.___ Definitions that part 172 specifically referenced a special flood hazard area in which ‘‘subsidiaries.’’ Current 12 CFR part 22 flood insurance is available under the Private flood insurance. The Agencies does not specifically include a reference 1968 Act, as amended.25 The Agencies are proposing to add a new definition to bank operating subsidiaries because are proposing to revise the language for ‘‘private flood insurance’’ consistent relating to the coverage limit to reflect with section 100239 of the Act, which 24 The Agencies note that with respect to alien more accurately what is actually added a new section 102(b)(7) to the (non-U.S.) surplus lines insurers, States may not covered under Federal flood insurance FDPA. Under section 102(b)(7) of the prohibit a surplus lines broker from placing non- admitted insurance with, or procuring non- statutes. Specifically, the Agencies are FDPA, ‘‘private flood insurance’’ means admitted insurance from, a non-U.S., non-admitted proposing that the language be amended an insurance policy that: (i) Is issued by insurer that is listed on the Quarterly Listing of to state that flood insurance coverage is an insurance company that is licensed, Alien Insurers maintained by the National limited to the building or mobile home admitted or otherwise approved to Association of Insurance Commissioners’ (NAIC) International Insurer’s Department (IID List). See engage in the business of insurance in The Nonadmitted and Reinsurance Reform Act of 25 OCC: 12 CFR 22.2(e); Board: 12 CFR (NRRA), Title V of the Dodd-Frank Act, Public Law 208.25(b)(4); FDIC: 12 CFR 339.2(e); FCA: 12 CFR 23 126 Stat. 2485 (Jan. 14, 2013). 111–203 (July 21, 2011). 614.4925(e); NCUA: 12 CFR 760.2(f).

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and any personal property securing the by private insurers; (iii) such a safe that expressly permits regulated lending loan and not the land itself. harbor would alleviate the concerns of institutions, at their discretion, to accept regulated lending institutions in policies issued by private insurers that Private flood insurance evaluating private flood policies; and do not meet the statutory definition of The Agencies also are proposing to (iv) a safe harbor would enable the ‘‘private flood insurance’’ to satisfy the amend this section to implement section growth of the private flood insurance mandatory purchase requirement, the 102(b)(1)(B) of the FDPA, as added by market. Agencies are requesting comment on section 100239(a)(1) of the Act, which Although section 102(b)(1)(B) of the whether they should require the requires that all regulated lending FDPA, as added by section 100239(a)(1) following criteria for such discretionary institutions accept private flood of the Act, requires a regulated lending policies pursuant to the Agencies’ insurance if certain conditions are met. institution to accept private flood authority to implement the FDPA’s Specifically, the proposal would require insurance that meets the statutory general mandatory purchase a regulated lending institution to accept definition, the Agencies note that the requirement. private flood insurance that meets the statute is silent about whether a First, State insurance regulators, as definition of this term to satisfy the regulated lending institution may accept the functional regulator of insurance FDPA’s insurance requirement, a flood insurance policy issued by a companies, may be in the best position provided that the private flood private insurer that does not meet the to evaluate the condition and ability of insurance policy also meets the statutory definition. The Agencies a private insurer to issue a flood conditions set forth in the general believe that the Congressional intent of insurance policy. Accordingly, the mandatory purchase requirement. the statute was to stimulate the private Agencies could require that flood Therefore, a regulated lending flood insurance market.26 Consequently, insurance issued by a private insurer institution may only accept private in addition to requiring regulated that a regulated lending institution may flood insurance coverage under this lending institutions to accept private accept at its discretion must be issued provision if the building or mobile flood insurance policies that comply by an insurer that is licensed, admitted, home and any personal property that with the statutory definition of ‘‘private or otherwise approved to engage in the secures the mortgage loan is covered for flood insurance,’’ the Agencies are business of insurance in the State or the term of that loan by the amount of considering whether to include a jurisdiction in which the insured flood insurance required by section provision in the final rules that building is located by the insurance 102(b)(1)(A) of the FDPA. As described expressly permits regulated lending regulator of the State. Further, in the above in ___.___ Definitions, this institutions to accept, as satisfaction of case of a policy of difference in proposal also would amend the the FDPA’s mandatory purchase condition, multiple peril, all risk, or Agencies’ regulations to include the requirement, a flood insurance policy other blanket coverage insuring statutory definition of ‘‘private flood issued by a private insurer that does not nonresidential commercial property, the insurance.’’ meet the Act’s definition of ‘‘private Agencies could require that the private The Agencies understand that there flood insurance.’’ The Agencies would have been concerns regarding the ability insurance provider must be recognized, include this provision pursuant to their or not disapproved, as a surplus lines of regulated lending institutions to authority under the FDPA to issue evaluate whether a flood insurance insurer by the insurance regulator of the regulations directing lending State or jurisdiction where the property policy meets the definition of ‘‘private institutions not to make, increase, to be insured is located.28 flood insurance’’ set forth in the Act extend, or renew any loan secured by Second, the Agencies could require because some regulated lending property in a SFHA unless the property that the coverage provided under any institutions lack the necessary technical is covered by ‘‘flood insurance.’’ 27 expertise. To facilitate compliance in To assist with determining whether flood insurance policy issued by a this regard, the Agencies are proposing the Agencies should include this private insurer that a regulated lending a safe harbor to allow lenders to rely on provision, the Agencies solicit comment institution accepts at its discretion must the expertise of State insurance on whether policies issued by private be at least as broad as the coverage regulators. Under the proposed safe insurers that do not meet the statutory provided by a SFIP under the NFIP, harbor, if a State insurance regulator definition of ‘‘private flood insurance’’ including when considering makes a written determination that a should be permitted to satisfy the deductibles, exclusions, and conditions flood insurance policy issued by a mandatory purchase requirement. offered by the insurer. For example, the private insurer meets the definition of Alternatively, the Agencies solicit private flood insurance policy must ‘‘private flood insurance’’ set forth in comment on whether it is appropriate to provide coverage for the foundation of the Act, then the Agencies will deem include a provision in the final rules a building in addition to the above- such policy to meet the statutory that specifically requires regulated ground portion of the building. This definition of ‘‘private flood insurance.’’ lending institutions to accept only criterion could ensure that a private The Agencies note that regulating policies issued by private insurers that flood insurance policy accepted by a insurance providers is generally the meet the statutory definition and, if regulated lending institution provides domain of State insurance regulators. As included, what would be the effect of the institution and the borrower with a result, State insurance regulators may such a provision on the availability of appropriate and sufficient coverage for be the appropriate parties to determine privately issued flood insurance. the property securing the loan. whether a flood insurance policy meets Furthermore, if the Agencies decide to all the criteria set forth in the statutory include a provision in the final rules 28 As discussed above in the SUPPLEMENTARY INFORMATION accompanying the definition of definition of ‘‘private flood insurance.’’ ‘‘private flood insurance’’ in ___.___ Definitions, The Agencies solicit comment on 26 The Act’s reforms were designed to improve with respect to alien (non-U.S.) surplus lines whether: (i) Any mechanism exists or the NFIP’s financial integrity and stability as well insurers, States may not prohibit a surplus lines may be developed by State regulators to as to ‘‘increase the role of private markets in the broker from placing non-admitted insurance with, management of flood insurance risk.’’ H. Rep. No. or procuring non-admitted insurance from, a non- make such a determination; (ii) a 112–102, at 1 (2011); see also 158 Cong. Rec. H4622 U.S., non-admitted insurer that is listed on the written determination would facilitate (daily ed. June 29, 2012) (statement of Rep. Biggert). Quarterly Listing of Alien Insurers maintained by lenders’ acceptance of flood insurance 27 See 42 U.S.C. 4012a(b). the NAIC’s IID List.

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Finally, the Agencies could require insurers that do not meet the statutory premiums and fees must be payable that any flood insurance policy issued definition of ‘‘private flood insurance’’ with the same frequency as payments on by a private insurer that a regulated as compared to policies issued by the loan are made for the duration of the lending institution accepts at its private insurers that meet the statutory loan. Consistent with section 102(d) of discretion must include a mortgage definition of ‘‘private flood insurance.’’ the FDPA, as amended, the proposed interest clause similar to the clause Regulated lending institutions have provision applies to any loan secured by contained in a SFIP.29 Therefore, the previously relied upon FEMA’s residential improved real estate or a Agencies could require the mortgage ‘‘Mandatory Purchase of Flood mobile home that is made or is interest clause to cover the interests of Insurance Guidelines’’ (Guidelines) for outstanding on or after July 6, 2014. both the insured (whether such insured guidance when determining whether a The Agencies are proposing to is a mortgagor/borrower or another private insurance policy conforms to the implement amended section 102(d) of entity that purchased the policy, such as flood insurance requirements. FEMA the FDPA with some clarifications. a condominium owners’ association) had advised that, to the extent that the First, as noted above, Public Law 112– and the mortgagee (the lender). Having private policy differs from the NFIP’s 281 amended section 102(d) of the both the insured and the mortgagee policy, the differences should be FDPA, as amended by section 100209 of covered in the mortgage interest clause carefully examined before accepting the the Act, to insert the word ‘‘residential’’ would mean that, in the event of a loss, policy. On February 4, 2013, FEMA prior to every mention of ‘‘improved the interests of both the regulated rescinded the Guidelines and advised real estate.’’ The Agencies’ understand lending institution and the insured lenders to ‘‘consult their respective that Congress’s intent was to apply the would be protected. regulatory agency for information escrow requirement to residential loans The Agencies solicit comment as to regarding compliance with the and exclude commercial loans.35 whether requiring the above criteria for mandatory purchase requirements.’’ 32 Consequently, the Agencies are any flood insurance policy issued by a The Agencies note that currently proposing that regulated lending private insurer that a lender accepts at institutions continue to have the institutions need not escrow flood its discretion would be inconsistent discretion to accept flood insurance insurance premiums and fees for loans with State legal requirements and issued by a private insurer pursuant to that are an extension of credit for a industry practice with respect to private section 102(b)(1)(A) of the FDPA. business, commercial, or agricultural purpose even if secured by residential flood insurance. The Agencies also ______solicit comment as to whether criteria, . Exemptions real estate. This exception is consistent additional to those discussed above, The Agencies are proposing a with similar exceptions in the RESPA 36 should be imposed if the Agencies technical amendment to change the and the Truth in Lending Act.37 permit regulated lending institutions to reference to the head of FEMA from Second, the Agencies are proposing accept a private flood insurance policy Director to Administrator. that when a regulated lending institution has determined that a issued by a private insurer that does not ______meet the statutory definition of ‘‘private . Escrow requirement borrower has obtained flood insurance flood insurance.’’ 30 The Agencies In General coverage that meets the mandatory believe that the proposed mandatory purchase requirement for the residential Pursuant to section 102(d) of the acceptance approach is consistent with improved real estate or mobile home FDPA, as amended by section 100209(a) both the statutory language and securing the loan and is currently of the Act and Public Law 112–281,33 Congressional intent.31 paying premiums and fees into an Additionally, the Agencies are proposing to revise the Agencies request comment on escrow account that has been their regulations to require regulated established by another lender, the whether allowing discretionary lending institutions, or servicers acting acceptance of flood insurance policies institution need not establish another on behalf of a regulated lending escrow account for the same purpose. issued by private insurers not meeting institution, to escrow all premiums and the statutory definition of private flood Such circumstances may arise, for fees for flood insurance required for any example, when the regulated lending insurance but requiring that such loans secured by residential improved discretionary policies meet certain institution takes a second lien position real estate or a mobile home unless the on a particular property and the criteria could encourage development of lending institutions qualify for the borrower is already paying flood the private flood insurance market statutory exception.34 In addition, these insurance premiums and fees on such while also ensuring that regulated lending institutions and borrowers are 32 FEMA Letter, February 4, 2013. See http:// servicer would be required under the CFPB’s rule properly protected. The Agencies also www.fema.gov/library/ to advance funds to continue the borrower’s hazard seek comment regarding the experience viewRecord.do?fromSearch=fromsearch&id=2954. insurance policy. In promulgating this rule, the of both lenders and their borrowers with 33 126 Stat. 2485 (Jan. 14, 2013). CFPB relied on its authority under section 19(a) of respect to policies issued by private 34 The Agencies note that CFPB’s mortgage RESPA to prescribe such rules and to make such servicing rule promulgated the new escrow interpretations as may be necessary to achieve the requirements set forth in section 6 of RESPA, which consumer protection purposes of RESPA. The 29 ‘‘Any loss payable under Coverage A—Building were enacted in the Dodd-Frank Act. The CFPB’s Agencies do not have a similar grant of consumer Property will be paid to any mortgagee of whom we rule excludes flood insurance that is required under protection authority under any of the Federal flood have actual notice as well as any other mortgagee the FDPA from the new escrow requirements. 78 FR statutes. or loss payee determined to exist at the time of loss, 10696, 10880 (Feb. 14, 2013). That is, the CFPB rule 35 In a floor statement on January 1, 2013, in and you, as interests appear.’’ NFIP Dwelling Form. exempts from the definition of force-placed support of S. 3677, which was adopted as Public 30 Additionally, as indicated above, nothing in insurance, insurance required by the FDPA. Ibid. Law No. 112–281, Congresswoman Biggert stated the Act can be construed to supersede or limit the The CFPB’s rule requires a servicer to advance that the bill is ‘‘necessary to clarify that this Agencies’ authority to establish requirements funds to a borrower’s escrow account and to escrowing provision only applies to ‘residential’ relating to the financial solvency, strength, or disburse such funds in a timely manner to pay the mortgage loans and not commercial and claims-paying ability of private insurance premium charge on a borrower’s hazard insurance multifamily loans.’’ The statement further provides companies from which a regulated lending (unless the servicer has a reasonable basis to believe that the bill does not impose new escrow institution will accept private flood insurance. See that a borrower’s hazard insurance has been obligations on commercial and multifamily real 42 U.S.C. 4012a(b)(5). canceled or not renewed for reasons other than estate servicers. 31 158 Cong. Rec. H4616–01, H4621–H4622 (daily nonpayment of premium charges). Thus, even if a 36 See 12 U.S.C. 2606(a). ed. June 29, 2012) (statement of Rep. Biggert). borrower were delinquent by more than 31 days, a 37 See 15 U.S.C. 1603(1).

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property into an escrow account deficiency, and the proposed rule would insurance policy renewal, the proposal established by the first lienholder. It is require that the regulated lending would allow regulated lending the Agencies’ understanding that, in institution escrow the premiums and institutions to comply with the such cases, the lender in the second fees for the supplemental policy. For requirement on a staggered basis, rather lienholder position will generally example, if a condominium owners’ than requiring them to establish escrow request the borrower to increase the association purchases an RCBAP or a accounts for all outstanding designated current flood insurance policy coverage private flood insurance policy for less loans at one time. amount to satisfy the flood insurance than the maximum amount of insurance The Agencies believe this proposal purchase requirement for the second available under the NFIP, the borrower will also benefit borrowers. Delaying the loan. The Agencies believe that the may be required to obtain a dwelling establishment of the escrow until increase in premiums and fees due to policy for supplemental coverage. If the immediately after their flood insurance the expanded coverage would then be borrower is required to obtain a policy is renewed will ensure that all paid into the escrow that was previously dwelling policy, the proposed rule borrowers will have the maximum established by the first lienholder. would require the regulated lending amount of time to escrow for their Therefore, requiring a second escrow institution to escrow the premiums and subsequent flood insurance policy account to be established would not be fees for such policy. renewal. If the Agencies were to require regulated lending institutions to necessary. However, if the first Timing lienholder is not required to or establish escrow accounts for all otherwise does not escrow flood The Agencies’ proposal sets forth outstanding designated loans at one insurance premiums and fees for timing provisions that stipulate when time, some borrowers may be burdened adequate insurance coverage for the regulated lending institutions must with larger escrow payments to cover residential improved real estate or a begin escrowing premiums and fees for the premium for the full term over a mobile home, the proposed rule would required flood insurance. Section shorter period of time than other require the regulated lending institution 100209(b) of the Act (42 U.S.C. 4012a borrowers. For example, if the Agencies in the second lienholder position to note) provides that the escrow required all regulated lending escrow required flood insurance provisions apply to any mortgage institutions to establish escrow accounts premiums and fees, unless such outstanding or entered into on or after for all outstanding loans on July 6, 2014, regulated lending institution qualifies the expiration of the two-year period then a borrower whose yearly flood beginning on the date of enactment of for an exception from the escrowing insurance policy renewal date is the Act. Therefore, loans secured by provisions. September 15, 2014, would have only residential improved real estate or a approximately two months to escrow for Third, the Agencies recognize that mobile home that are outstanding or a full year of flood insurance premiums when flood insurance coverage for a entered into on or after July 6, 2014 are and fees while a borrower whose yearly residential improved real estate or a covered by this requirement, provided flood insurance policy renewal date is mobile home is provided by a policy the loan is required to have flood March 15, 2015, would have purchased by a common interest insurance. Consequently, the Agencies approximately eight months to escrow community, such as a condominium propose that for any designated loans for a full year of flood insurance owners’ association, the borrower is not made on or after July 6, 2014, the premiums and fees. Consequently, the the purchaser of the policy. If that regulated lending institution must begin borrower with the March 15, 2015, policy is purchased by a common escrowing upon loan consummation. renewal date would have smaller interest community in an amount that is With respect to designated loans that escrow payments each payment period sufficient to meet the mandatory flood are outstanding on July 6, 2014, the than the borrower with the September insurance purchase requirement, then proposed rule would require regulated 15, 2014 renewal date. Requiring escrowing flood insurance premiums lending institutions to begin escrowing regulated lending institutions to begin and fees on behalf of the borrower with the first loan payment after the first escrowing with the first loan payment would not be necessary because the renewal date of the borrower’s flood after the borrower renews the existing borrower would not be directly insurance policy that occurs on or after policy would mean that all borrowers responsible for paying the flood July 6, 2014. For example, if a will have the maximum amount of time insurance premiums or fees. As a result, borrower’s current flood insurance to escrow for the next flood insurance the Agencies are proposing that a policy will renew on March 15, 2015, payment, regardless of when their regulated lending institution need not and the borrower’s loan payments are policies renew. establish an escrow account for flood generally due the first of each month, The Agencies request comment on the insurance premiums and fees when the the institution must begin escrowing timing proposed for complying with the institution has determined that flood with the loan payment due on April 1, escrow requirement for outstanding insurance coverage is provided by a 2015. The borrower would be loans and whether regulated lending policy purchased by a common interest responsible for paying the premium to institutions should be provided the community instead of the borrower, renew the policy on March 15, 2015, option of complying with the escrow such as an NFIP Residential however. Payments that are escrowed requirement earlier than the dates set Condominium Building Association beginning April 1, 2015 will be used by forth in the proposal. Lenders with a Policy (RCBAP), that meets the the lender to pay the premiums for small number of designated loans that mandatory flood insurance purchase subsequent years. are not otherwise excepted from the requirement, including coverage for the The Agencies’ proposal is intended to escrow requirement may prefer to proper amount. If the amount of the alleviate the potential burden to lenders establish all required escrow accounts policy purchased by a common interest and borrowers of establishing an escrow for outstanding designated loans in their community is insufficient to meet the account for an outstanding loan for portfolio at one time, prior to the mandatory flood insurance purchase which a borrower was not previously insurance policy renewal dates. requirement, however, the borrower escrowing flood insurance premiums Permitting institutions to comply with would be required to obtain a and fees. By tying the establishment of the escrow requirement earlier, supplemental policy to cover the the escrow to the time of flood however, may mean that some

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borrowers will have less time to make designated loan after July 6, 2014, or a servicer acting on its behalf, must escrow payments for flood insurance should be limited only to when a provide a notice that contains language premiums and fees associated with the borrower-purchased flood insurance substantially similar to model clauses first insurance policy payment to be policy is established and exclude on the escrow requirement in the paid out of the funds in the escrow than instances in which a lender-placed revised sample notice provided in other borrowers, depending on when flood insurance policy is established. If Appendix A with or on the Notice of the regulated lending institution, or its the rule were to be limited only to when Special Flood Hazards and Availability servicer, decides to comply with the a borrower-purchased flood insurance is of Federal Disaster Relief Assistance. escrow requirement. Although established, a regulated lending Similarly, under the proposal, for a loan borrowers would ultimately pay the institution would not be required to that becomes a designated loan after same amount regardless of when the escrow flood insurance premiums and July 6, 2014, a regulated lending escrow begins, the Agencies request fees when it force-places an initial flood institution, or a servicer acting on its comment on whether lenders’ early insurance policy. In this instance, after behalf, must provide notice concerning compliance with the escrow the expiration of such a force-placed the escrow requirement with the force- requirements would be otherwise insurance policy, there would be no placement notice, using language that is detrimental to borrowers, and if so, how funds escrowed for any policy that may substantially similar to the sample it may be detrimental. be purchased at that time, whether it is language proposed in Appendix C. The Agencies are also proposing to borrower-purchased or lender-placed. However, for loans that are address the timing applicable to loans Under the proposed rule, a regulated outstanding on July 6, 2014, there are no that were not designated loans at the lending institution would be required to required notices under current law that time that they were made, but become escrow flood insurance premiums and the regulated lending institution would designated loans after July 6, 2014. This fees following the establishment of a be certain to provide before the may occur, for example, when there is force-placed policy for a loan that institution would be required to begin a FEMA map change, and a building becomes a designated loan after July 6, escrowing under the proposal. that was not previously located in an 2014. If a borrower fails to purchase the Consequently, the Agencies are SFHA is now located in an SFHA. In requisite flood insurance upon the proposing that a regulated lending those instances, the loan secured by expiration of such force-placed institution, or a servicer acting on its such building may be required to have insurance, then the lender would use behalf, provide a separate notice flood insurance under the FDPA. If the escrowed funds to renew or describing the escrow requirement, flood insurance is required, a regulated purchase a new force-placed policy. substantially similar to the sample lending institution, or a servicer acting notice proposed by the Agencies in on its behalf, also would be required to Notice Appendix B, at least 90 days before the establish an escrow account to comply In order to ensure that borrowers are regulated lending institution must begin with the FDPA, as amended by the Act. well-informed about the escrow escrowing. The Agencies believe that 90 The proposed rule would require requirement to collect premiums and days’ advance notice would give regulated lending institutions to begin fees for required flood insurance, the borrowers sufficient time to gather the escrowing premiums and fees for Agencies are proposing that regulated necessary funds for the escrow. required flood insurance with the first lending institutions provide borrowers However, the Agencies solicit comment loan payment after the flood insurance with a written notice. Specifically, the on whether 90 days is an appropriate policy is established. Under the proposed rule would mandate that a time period to provide notice for loans proposal, this initial flood insurance regulated lending institution, or a outstanding on July 6, 2014. policy may either be purchased by the servicer acting on its behalf, mail or Exception borrower or, if the borrower failed to deliver a written notice informing a purchase a policy, force-placed by the borrower that it is required to escrow all This proposal implements the regulated lending institution. premiums and fees for required flood statutory exception to the escrow The following explanation illustrates insurance on residential improved real requirement substantially as included in how this provision would operate. estate. In order to facilitate compliance the Act with some clarifications. The Under the Agencies’ proposal, in the with the proposed notice requirement, statute states that, except as provided by situation in which a lender determines the Agencies are proposing model State law, regulated lending institutions that a loan that was not originally a language for this notice as discussed in that have total assets of less than $1 designated loan, but has become a more detail below in the SUPPLEMENTARY billion are exempt from this escrow designated loan, for example, due to INFORMATION to Appendices A, B, and C. requirement if, on or before July 6, 2012, remapping, the lender would notify the To minimize the burden to regulated the institution: (i) in the case of a loan borrower that flood insurance is lending institutions of providing this secured by residential improved real required, as provided in the force- notice and to ensure that borrowers estate or a mobile home, was not placement provision of the rule. After receive the notice at a time when they required under Federal or State law to the required notification, either the are considering the purchase of flood deposit taxes, insurance premiums, fees, borrower would purchase and pay for a insurance, the proposal takes advantage or any other charges in an escrow flood insurance policy or the lender of flood insurance notices that already account for the entire term of the loan; would force-place a policy and charge are required under current law. and (ii) did not have a policy of the borrower for the cost of coverage. Specifically, the proposal adds language consistently and uniformly requiring the The lender also would commence regarding the escrow requirement to the deposit of taxes, insurance premiums, escrowing payments to cover premiums existing Notice of Special Flood Hazards fees, or any other charges in an escrow and fees, which would be applied to the and Availability of Federal Disaster account for loans secured by residential next annual policy renewal, upon the Relief Assistance, included in the improved real estate or a mobile home. borrower’s next loan payment. Agencies’ current rules as Appendix A. Because the Act does not specify a The Agencies solicit comment on The proposal would require that, for point in time to measure the asset size whether the requirement to begin designated loans made on or after July of an institution to determine whether escrowing for a loan that becomes a 6, 2014, a regulated lending institution, such institution qualifies for the

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exception, the Agencies are proposing after a regulated lending institution has with the force-placement notice under that a regulated lending institution may a change in status, the proposed rule the proposal, using language qualify for the exception if it has total would require the institution to begin substantially similar to the sample assets of less than $1 billion as of escrowing upon loan consummation. language provided in Appendix C. December 31 of either of the two prior Finally, for any loan that becomes a Change in Ownership calendar years. Thus, a regulated designated loan after July 1 of the lending institution would only be succeeding calendar year after a The Agencies also are proposing a subject to the escrow requirement if it regulated lending institution has a provision to address situations in which has assets of $1 billion or more as of change in status, the proposed rule a regulated lending institution that is December 31 for at least two would require the institution to begin required to comply with the escrow consecutive years. Consequently, if the escrowing with the first loan payment requirement acquires a designated loan proposal is finalized and becomes after the flood insurance policy is that is covered by FDPA-required flood effective in 2014, regulated lending established. insurance that becomes subject to the institutions with assets of $1 billion or For example, assume a regulated escrow requirement as a result of the more as of both December 31, 2012, and lending institution qualified for the acquisition. For example, this may December 31, 2013, would not qualify exception in 2014, but had assets of $1 occur if a lender that qualifies for the for the exception. In contrast, a billion or more as of December 31, 2014, statutory exception sells the loan to or regulated lending institution with assets and December 31, 2015. In that case, merges with a regulated lending of less than $1 billion as of either 2016 would be the succeeding calendar institution that must comply with the December 31, 2012 or December 31, year. Under the proposal, such regulated escrow requirement. In these cases, the 2013, may qualify for the exception, lending institution would be required to Agencies are proposing that the provided the other conditions for the begin escrowing with the first loan regulated lending institution must begin exception are met. payment on or after the first renewal escrowing premiums and fees for flood This measurement method is similar date of the borrower’s flood insurance insurance with the first loan payment to how the OCC, the Board, and the policy on or after July 1, 2016, for any on or after the first renewal date of the FDIC have measured asset size in loan outstanding on July 1, 2016. For borrower’s flood insurance policy on or relation to the definitions for small any designated loan made after July 1, after the date that is six months from the entities under the Community 2016, the proposal would require such transfer date of the loan. For instance, 38 Reinvestment Act (CRA). The institution to begin escrowing upon loan suppose a regulated lending institution Agencies believe the asset measurement consummation. For any loan that that is required to comply with the method these agencies have used with becomes a designated loan after July 1, escrow requirement purchases loans respect to CRA is an appropriate model 2016, the proposal would require such from an institution that is not subject to in this case as it ensures an institution institution to begin escrowing with the the escrow requirement, and the transfer is definitively over the size threshold first loan payment after the flood date for the loans is February 1, 2015. before requiring the institution to insurance policy is established. Under the proposal, for any designated In addition, the Agencies are expend the resources needed to loan that is transferred on February 1, proposing the same notice obligation for establish a new escrow program. 2015, the regulated lending institution Moreover, the Agencies are proposing regulated lending institutions after a that acquires the loan must begin transition rules for a change in status of change in status with similar timing escrowing premiums and fees for flood a regulated lending institution that may requirements as would apply to other insurance with the first loan payment initially qualify for the exception, but regulated lending institutions that are on or after the first renewal date of the later grows to exceed the $1 billion asset subject to the escrow requirement. As a borrower’s flood insurance policy on or size threshold. Similar to the Board’s result, for loans that are outstanding on after August 1, 2015. Regulation II, the Agencies propose to July 1 of the succeeding calendar year give regulated lending institutions after a regulated lending institution has This proposed timing is similar to the approximately six months to begin a change in status, the proposal would timing the Agencies have proposed for complying with the escrow require a regulated lending institution to regulated lending institutions that no requirement.39 The proposed rules provide notice on the escrow longer qualify for the statutory would mirror the proposed rules requirement at least 90 days before the exception. Furthermore, as with the concerning the timing requirements for regulated lending institution must begin notice requirement proposed for other when regulated lending institutions escrowing, using language that is outstanding designated loans, the must begin to escrow for loans substantially similar to the language Agencies are proposing that a regulated outstanding or entered into on or after provided in Appendix B. For designated lending institution provide notice at July 6, 2014. Therefore, for any loans that are made on or after July 1 of least 90 days before the institution must designated loans outstanding on July 1 the succeeding calendar year after a begin to escrow for a designated loan of the succeeding calendar year after a regulated lending institution has a that becomes subject to the escrow regulated lending institution has a change in status, the Agencies propose requirement as a result of a change in change in status, the proposal would that notice concerning the escrow loan ownership. require the institution to begin requirement be provided with the notice l.l Required use of standard flood escrowing with the first loan payment of special flood hazards, using language hazard determination form. on or after the first renewal date of the that is substantially similar to the borrower’s flood insurance policy on or escrow requirement language provided The Agencies are proposing technical after July 1 of the succeeding calendar in the sample form of notice contained amendments in this section to change year. For any designated loan made after in Appendix A. Finally, for a loan that the reference to the head of FEMA from July 1 of the succeeding calendar year becomes a designated loan after July 1 Director to Administrator and to update of the succeeding calendar year after a how a lending institution may obtain 38 See 12 CFR 25.12(u); 12 CFR 195.12(u); 12 CFR regulated lending institution has a the standard flood hazard insurance 228.12(u); and 12 CFR 345.12(u). change in status, notice concerning the form by directing the institution to 39 See 12 CFR 235.5(a)(3). escrow requirement would be provided FEMA’s Web site.

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l.l Force placement of flood The Agencies seek comment on whether overlap period within the 30-day period insurance. the Agencies’ interpretation of the term required by the statute. Pursuant to section 102(e) of the ‘‘lapsed’’ is consistent with the In addition, the Agencies note that FDPA, as amended by section 100244 of insurance industry’s use of the term and section 102(e)(3) of the FDPA, as the Act, the Agencies are proposing to as to whether further clarification is amended, and the Agencies’ proposed amend their rules for the force- necessary on when a lender or servicer regulations, do not specify a party from placement of flood insurance.40 The may begin to charge for force-placed which a regulated lending institution proposal implements section 100244 of flood insurance. must receive confirmation of a the Act by setting forth when a For purposes of safety and soundness, borrower’s existing flood insurance regulated lending institution or its regulated lending institutions should coverage. Therefore, regulated lending servicer may begin to charge the monitor the continuous coverage of institutions may receive the borrower for force-placed insurance, the flood insurance for the building or confirmation from either the borrower circumstances under which a regulated mobile home and any personal property or a third party, such as an insurance lending institution or its servicer must securing a designated loan. agent or insurer with whom the terminate force-placed insurance and Additionally, the Agencies interpret the institution has direct contact. Act to permit a regulated lending refund payments, and what Sufficiency of Demonstration documentary evidence is sufficient to institution to force-place a flood insurance policy purchased on behalf of Pursuant to section 102(e)(4) of the demonstrate a borrower has flood FDPA, as amended by section 100244 of insurance coverage. a borrower that is effective the day after expiration of a borrower’s original the Act, the Agencies propose that for Notice and Purchase of Coverage insurance policy to ensure that it is the purposes of confirming a borrower’s Under current regulations, if a continuous. Such a practice will ensure existing flood insurance coverage, a regulated lending institution, or a that institutions complete the force- regulated lending institution or its servicer acting on its behalf, determines placement of flood insurance in a timely servicer must accept from the borrower at any time during the term of a manner upon lapse of the policy and an insurance policy declarations page designated loan that the building or that there is continuous insurance that includes the existing flood mobile home and any personal property coverage to protect both the borrower insurance policy number and the securing the designated loan is not and the institution. identity of, and contact information for, the insurance company or its agent, as covered by flood insurance or is covered Termination of Force-Placed Insurance by flood insurance in an amount less confirmation of the existence of than the amount required under the As provided in section 102(e)(3) of the coverage. A lender is responsible for FDPA, then the regulated lending FDPA, as added by section 100244 of making all necessary inquiries into the institution or its servicer must notify the the Act, the Agencies propose that adequacy of the borrower’s insurance borrower that the borrower should within 30 days of receipt by a regulated policy to ensure the policy complies obtain flood insurance, at the borrower’s lending institution, or a servicer acting with the mandatory purchase expense, in an amount at least equal to on its behalf, of a confirmation of a requirement. If the lender determines the amount required under the borrower’s existing flood insurance the coverage amount or any terms and mandatory purchase requirements, for coverage, a regulated lending institution conditions fail to meet applicable the remaining term of the designated is required to: (i) Notify the insurer to requirements, the lender should notify loan. If the borrower fails to obtain terminate any force-placed insurance the borrower and request the borrower adequate flood insurance within 45 days purchased by the regulated lending to obtain an adequate flood insurance after notification, then the regulated institution or its servicer; and (ii) refund policy. to the borrower all premiums paid by lending institution or its servicer must l.l Determination fees. purchase flood insurance on behalf of the borrower for any insurance the borrower. The regulated lending purchased by the regulated lending The Agencies are proposing technical institution or servicer may charge the institution or its servicer under this amendments in this section to change borrower for the cost of the premiums section for any period during which the the references to the head of FEMA from and fees incurred in purchasing the borrower’s flood insurance coverage and Director to Administrator. the insurance coverage purchased by the insurance. Pursuant to section 102(e) of l.l Notice of special flood hazards the FDPA, as amended by section regulated lending institution or its servicer were each in effect (overlap and availability of Federal disaster relief 100244 of the Act, the Agencies propose assistance. to amend their regulations to provide period), and any related fees charged to that the regulated lending institution or the borrower with respect to the Section 100239 of the Act adds a new its servicer may charge the borrower for insurance purchased by the regulated section 102(b)(6) to the FDPA (42 U.S.C. the cost of premiums and fees incurred lending institution or its servicer during 4012a(b)(6)) requiring regulated lending for coverage beginning on the date on such overlap period. institutions to disclose to a borrower which flood insurance coverage lapsed The Agencies realize that, although that: (i) Flood insurance is available or did not provide a sufficient coverage regulated lending institutions and from private insurance companies that amount. The Agencies’ understanding is servicers can request that a force-placed issue SFIPs on behalf of the NFIP or that the date on which the flood insurance policy be terminated, the directly from the NFIP; (ii) flood insurance coverage lapsed is the insurer is the party that actually cancels insurance that provides the same level expiration date provided in the policy. the policy. The Agencies’ proposal of coverage as an SFIP under the NFIP therefore clarifies the statutory language may be available from a private 40 The Agencies note that section 1463(a) of the in section 102(e)(3) of the FDPA, as insurance company that issues policies Dodd-Frank Act sets forth requirements relating to amended by section 100244 of the Act, on behalf of the company; and (iii) the the force placement of hazard insurance. The CFPB to require the institution only to notify borrower is encouraged to compare the has excluded flood insurance required under the the insurer to terminate the force-placed flood insurance coverage, deductibles, FDPA from the force placement requirements in its rule implementing this provision. 78 FR 10696, policy and to fully refund to the exclusions, conditions, and premiums 10880 (February 14, 2013). borrower the premiums and fees for the associated with flood insurance policies

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issued on behalf of the NFIP and institutions mail or deliver a written implemented, the draft NPRM would policies issued on behalf of private notice informing borrowers about the impact approximately 871 of these small insurance companies and to direct requirement to escrow premiums and institutions. Thus, the proposed rule inquiries regarding the availability, cost, fees for required flood insurance. To impacts a substantial number of small and comparisons of flood insurance facilitate compliance with the proposed institutions. The OCC classifies the coverage to an insurance agent. notice requirement, the Agencies are economic impact of total costs on an Furthermore, section 100239(b) of the proposing model language that may be institution as significant if the total Act amends section 1364(a)(3)(C) of the included, if applicable, in the Notice of costs in a single year are greater than 5 1968 Act (42 U.S.C. 4104a(a)(3)(C)) to Special Flood Hazards and Availability percent of total salaries and benefits, or require that the disclosures in section of Federal Disaster Relief Assistance as greater than 2.5 percent of total non- 102(b)(6) of the FDPA be provided in set forth in the sample form of notice interest expense. The OCC estimates the Notice of Special Flood Hazards and contained in Appendix A. The Agencies that the average cost per small Availability of Federal Disaster Relief also are proposing a sample form of institution is approximately $23,000 per Assistance. Therefore, the proposal notice in new Appendix B that may be year.43 Using this cost estimate, we requires the disclosures set forth in used for designated loans that are believe the proposed rule will have a section 102(b)(6) of the FDPA to be outstanding as of the date a regulated significant economic impact on eleven included in the Notice of Special Flood lending institution becomes subject to small institutions supervised by the Hazards and Availability of Federal the escrow requirement or acquires a OCC, which is not a substantial number. Disaster Relief Assistance, and the designated loan that becomes subject to Therefore, pursuant to section 605(b) of Agencies have proposed model language the escrow requirement. Finally, new the RFA, the OCC hereby certifies that to include in the sample form of notice Appendix C provides a proposed this proposal would not have a contained in Appendix A. Sample Clause with respect to the significant economic impact on a escrow requirement notice that l.l Notice of servicer’s identity. substantial number of small entities. regulated lending institutions could Accordingly, an initial regulatory The Agencies are proposing technical include in a notice of force-placement flexibility analysis is not required. amendments in this section to change for a loan that becomes a designated Board: The RFA requires an agency to the references to the head of FEMA from loan after a regulated lending institution publish an initial regulatory flexibility Director to Administrator. becomes subject to the escrow analysis with a proposed rule or certify Appendices A, B, & C requirement. that the proposed rule will not have a significant economic impact on a As noted above in the SUPPLEMENTARY V. Regulatory Analysis substantial number of small entities. INFORMATION accompanying the Regulatory Flexibility Act revisions to l.l Notice of special flood The Board is publishing an initial hazards and availability of Federal OCC: In general, the Regulatory regulatory flexibility analysis and disaster relief assistance, the Agencies Flexibility Act (RFA) requires that in requests public comment on all aspects are proposing to amend the sample form connection with a notice of proposed of its analysis. The Board will conduct of notice contained in Appendix A to rulemaking an agency prepare and make a final regulatory flexibility analysis include the disclosures required by available for public comment an initial after considering the comments received section 102(b)(6) of the FDPA, as added regulatory flexibility analysis that during the public comment period. 1. Statement of the need for, and by section 100239 of the Act, regarding describes the impact of a proposed rule 41 objectives of, the proposed rule. The the availability of private flood on small entities. Under section 605(b) Board is proposing revisions to insurance coverage. The proposed of the RFA, this analysis is not required Regulation H to implement certain additions to the sample form closely if an agency certifies that the rule would provisions of the Act over which the track the statutory language. The not have a significant economic impact Agencies, including the Board, have Agencies also are proposing to revise on a substantial number of small entities jurisdiction. Consistent with the Act, the language relating to the coverage and publishes its certification and a the proposal would require a regulated limit to more accurately reflect what is short explanatory statement in the lending institution (or its servicer) to actually covered under the Federal flood Federal Register along with its rule. We escrow the premiums and fees for statutes, as discussed in the have concluded that the proposed rule required flood insurance for any loan SUPPLEMENTARY INFORMATION does not have a significant economic secured by residential improved real accompanying the revisions to l.l impact on a substantial number of small estate or a mobile home, unless the Requirement to purchase flood entities supervised by the OCC. The OCC currently supervises lender qualifies under the statutory insurance coverage where available. approximately 1,257 small national exception for certain small lenders. Specifically, the Agencies are proposing banks, Federal savings associations, The proposal also would implement that the language be amended to state trust companies, and branches or the Act’s requirement that regulated that flood insurance coverage is agencies of foreign banks.42 If lending institutions accept any private available only on the building or mobile insurance policy that meets the Act’s home and any personal property that 41 See 5 U.S.C. 601 et seq. definition of ‘‘private flood insurance’’ secures the loan and not the land itself. 42 We base our estimate of the number of active in satisfaction of the mandatory The Agencies propose other technical small entities on the SBA’s size thresholds for purchase requirement. The proposed amendments to the sample form of commercial banks and savings institutions, and notice contained in Appendix A, to trust companies, which are $500 million and $35.5 million, respectively. Consistent with the General of the U.S. Small Business Administration’s Table change the references to the head of Principles of Affiliation 13 CFR § 121.103(a), we of Size Standards. FEMA from Director to Administrator. count the assets of affiliated financial institutions 43 Because the OCC does not have the information In addition, as discussed in the when determining if we should classify a bank we to determine whether a small institutions would SUPPLEMENTARY INFORMATION supervise as a small entity. We use December 31, meet the exception for the escrow requirement l l 2012 to determine size because a ‘‘financial provided by proposed § 22.5(c), we have not accompanying the revisions to . institution’s assets are determined by averaging the applied this exception in our calculations. Escrow requirement, the Agencies are assets reported on its four quarterly financial Therefore, our estimated costs per small bank may proposing that regulated lending statements for the preceding year.’’ See footnote 8 be overstated.

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rule would also include a safe harbor for any period of overlap between a supervised banks which include 3,398 allowing lenders to rely on a State force placed policy and a borrower’s State nonmember banks and 259 State- insurance regulator’s written policy. Consequently, the Act’s force chartered savings banks, and 54 savings determination that a particular private placement provisions, which set forth associations. insurance policy satisfies the Act’s procedures for terminating force placed It is the opinion of the FDIC that the definition. Regulated lending insurance and refunding premiums and proposed rule will not have a significant institutions would also be required to fees to the borrower, nevertheless would economic impact on a substantial provide disclosures on the availability have had minimal impact on regulated number of the small entities, which the of private flood insurance, as mandated lending institutions. FDIC supervises. The FDIC reaches this by the Act. With respect to the proposed rules conclusion in reliance upon the fact that The Act also includes provisions regarding the acceptance of private the only requirements that the Act related to the force placement of flood flood insurance, the Board believes the requires the Agencies to impose upon insurance, which the proposal would rules will not have a significant impact supervised entities as a matter of implement. These provisions clarify that on small entities because regulated regulation are the escrow requirement regulated lending institutions may lending institutions, including those and the requirement to accept private charge a borrower for the cost of that are considered small entities, flood insurance. The Act provides that premiums and fees incurred in the currently are permitted to accept private generally a depository institution with purchase of force-placed flood flood insurance policies. Moreover, as assets of less than $1 billion is not insurance from the date coverage lapsed discussed in the SUPPLEMENTARY required to comply with the escrow or did not provide a sufficient amount INFORMATION, the proposed rule would requirement. As a result, due to this of coverage. The provisions also provide seek to alleviate the burden on regulated statutory exclusion, by law the escrow that within 30 days of receipt of a lending institutions, including those requirement cannot have a significant confirmation of a borrower’s existing that are considered small entities, of economic impact on a substantial flood insurance coverage, a regulated evaluating whether a flood insurance number of small entities. The lending institution is required to policy issued by a private insurer meets requirement to accept private flood terminate any force-placed insurance the definition of ‘‘private flood insurance also cannot have a significant purchased by the regulated lending insurance’’ by providing a safe harbor economic impact on a substantial institution, and refund to the borrower permitting lenders to rely on the number of small entities since all premiums paid by the borrower for determination of a State insurance depository institutions were permitted lender-placed coverage for any period regulator. Small entities will be required to accept private flood insurance for during which the borrower’s flood under the proposal to amend their NFIP purposes even before the Act’s insurance coverage and the lender-place notices of special flood hazards to amendments. For these reasons, the coverage overlapped. include information on the availability FDIC certifies that this proposed rule 2. Small entities affected by the of private flood insurance. The proposal will not have a significant economic proposed rule. All State member banks provides sample forms to facilitate impact on a substantial number of small that are subject to Regulation H would compliance and reduce burden upon entities that it supervises. be subject to the proposed rule. As of small institutions. FCA: June 30, 2013, there were 844 State 3. Other Federal rules. The Board has Pursuant to section 605(b) of the RFA, member banks. Under regulations not identified any likely duplication, the FCA hereby certifies that the issued by the Small Business overlap and/or potential conflict proposed rule will not have a significant Administration (SBA), banks and other between the proposed rule and any economic impact on a substantial depository institutions with total assets Federal rule. of $500 million or less are considered 4. Significant alternatives to the number of small entities. Each of the small. Of the 844 State member banks proposed revisions. The Board solicits banks in the Farm Credit System, subject to Regulation H, approximately comment on any significant alternatives considered together with its affiliated 634 State member banks would be that would reduce the regulatory burden associations, has assets and annual considered small entities by the SBA. associated with this proposed rule on income in excess of the amounts that As discussed in detail above in the small entities. would qualify them as small entities. SUPPLEMENTARY INFORMATION, regulated FDIC: The RFA generally requires Therefore, Farm Credit System lending institutions with total assets that, in connection with a notice of institutions are not ‘‘small entities’’ as less than $1 billion would generally be proposed rulemaking, an agency prepare defined in the RFA. exempt from the proposed rules and make available for public comment NCUA: implementing the escrow provisions of an initial regulatory flexibility analysis The RFA requires NCUA to prepare the Act. Therefore, the escrow that describes the impact of a proposed an analysis to describe any significant provisions of the proposed rule would rule on small entities. A regulatory economic impact a regulation may have generally not affect small entities. flexibility analysis is not required, on a substantial number of small Furthermore, the Act’s force placement however, if the agency certifies that the entities.44 For purposes of this analysis, provisions already went into effect upon rule will not have a significant NCUA considers small credit unions to passage of the Act on July 6, 2012. As economic impact on a substantial be those having under $50 million in a result, the proposed rules number of small entities (defined in assets.45 As of June 30, 2013, there are implementing the Act’s force placement regulations promulgated by the Small 1,803 small, federally insured credit provisions should not have any impact Business Administration to include unions. The proposed rule would on small entities who were required to banking organizations with total assets require a credit union to escrow the comply with the provisions as of July 6, of less than or equal to $500 million) premiums and fees for required flood 2012. Even prior to the Act’s passage, and publishes its certification and a regulated lending institutions, including short, explanatory statement in the 44 5 U.S.C. 603(a). 45 Interpretive Ruling and Policy Statement 03–2, those that are considered small entities, Federal Register together with the rule. 68 FR 31949 (May 29, 2003), as amended by would have had mechanisms in place to As of March 31, 2013, there were Interpretative Ruling and Policy Statement 13–1, 78 refund premiums and fees to borrowers approximately 3,711 small FDIC- FR 4032 (Jan. 18, 2013).

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insurance for any loan secured by a regulation does not impose a mandate The proposed rule adds a notice residential improved real estate or a to the extent it incorporates requirement stating that institutions or mobile home. The proposed rule would requirements ‘‘specifically set forth in services that are required to escrow all also implement the requirement that the law.’’ Therefore, we exclude from premiums and fees for required flood credit unions accept any private our UMRA estimate costs specifically insurance must issue a written notice to insurance policy that meets the related to requirements set forth in the the borrower. statutory definition of ‘‘private flood Act, such as costs related to establishing This information collection is insurance’’, and includes provisions escrow accounts, amendments to the required to evidence compliance with related to the force placement of flood force placement provisions, and the the requirements of the Federal flood insurance. acceptance of private flood insurance insurance statutes with respect to Under this proposed rule, credit policies. Furthermore, under Title II of lenders and servicers. Because the unions with total assets less than $1 the UMRA, indirect costs, foregone Agencies do not collect any information, billion would generally be exempt from revenues and opportunity costs are not no issue of confidentiality arises. The the escrow provisions. Therefore, the included when determining if a respondents are for-profit and non-profit escrow provisions of the proposed rule mandate meets or exceeds UMRA’s cost financial institutions, including small would not affect small credit unions. threshold. Therefore, based on these businesses. For private flood insurance, NCUA does exclusions, our UMRA cost estimate for Entities subject to the Agencies’ not believe the proposed rule will have the NPRM, if implemented, is zero. existing flood insurance rules will have a significant impact on small credit Accordingly, because the OCC has to review and revise disclosures that are unions since credit unions are currently determined that this proposed rule currently provided to ensure that such allowed to accept private flood would not result in expenditures by disclosures accurately reflect the insurance. In addition, the proposed State, local, and tribal governments, or disclosure requirements in this rule provides a safe harbor for regulated by the private sector, of $100 million or proposed rule. Entities subject to the lending institutions (which includes more, we have not prepared a budgetary rule may also need to develop new credit unions), including small entities, impact statement or specifically disclosures to meet the proposed rule’s for evaluating whether a flood insurance addressed the regulatory alternatives timing requirements. policy issued by a private insurer meets considered. The total estimated burden increase, the definition of ‘‘private flood as well as the estimates of the burden insurance’’. Lastly, the force placement Paperwork Reduction Act of 1995 increase associated with each major provisions in the proposed rule were The OCC, Board, FDIC, and NCUA section of the proposed rule as set forth effective on July 6, 2012, and credit (the Agencies) 46 have determined that below, represents averages for all unions have been enforcing force this proposed rule involves a collection respondents regulated by the Agencies. placement provisions already. In of information pursuant to the The Agencies expect that the amount of addition, credit unions currently have provisions of the Paperwork Reduction time required to implement each of the the tools to refund premiums and fees Act of 1995 (the PRA) (44 U.S.C. 3501 proposed changes for a given institution whenever a borrower’s policy overlaps a et seq.). may vary based on the size and force-placed policy, as required in the In accordance with the PRA (44 complexity of the respondent. proposed rule. The Agencies estimate that NCUA finds that this proposed rule U.S.C. 3506; 5 CFR 1320 Appendix A.1), the Board reviewed the proposed rule respondents would take, on average, 40 would affect relatively few federally hours to update their systems in order insured, small credit unions and the under the authority delegated to the Board by the Office of Management and to comply with the disclosure associated cost is minimal. Accordingly, requirements and the one-time escrow NCUA certifies the rule will not have a Budget (OMB). The collection of information that is subject to the PRA by notice under the proposed rule. In an significant economic impact on small effort to minimize the compliance cost entities. this proposed rule is found in 12 CFR 22.5, 208.25(e), 339.5, and 760.5. In and burden, particularly for small Unfunded Mandates Reform Act of 1995 addition, as permitted by the PRA, the entities that do not meet the requirement for the statutory exception, Section 202 of the Unfunded OCC, Board, and FDIC also propose to the proposed rule contains model Mandates Reform Act of 1995 (UMRA) extend for three years their respective disclosures in appendices A, B, and C (2 U.S.C. 1501 et seq.) requires certain information collections. that may be used to satisfy the agencies, including the OCC, to prepare The Agencies may not conduct or requirements. a budgetary impact statement before sponsor, and an organization is not promulgating a rule that includes a required to respond to, this information Burden Estimates Federal mandate that may result in the collection unless the information OCC: expenditure by State, local, and tribal collection displays a currently valid Number of Respondents: 1,316. governments, in the aggregate, or by the OMB control number. The OMB control Burden for Existing Recordkeeping private sector of $100 million or more numbers are 1557–0202 (OCC), 7100– Requirements: 196,907 hours. 47 in any one year. If a budgetary impact 0280 (Board), and 3064–0120 (FDIC). Burden for Existing Disclosure statement is required, section 205 of Requirements: 244,208 hours. UMRA also requires an agency to 46 The FCA has determined that the proposed rule Burden for Proposed Rule: 52,640 identify and consider a reasonable does not involve a collection of information hours. number of regulatory alternatives before pursuant to the PRA for System institutions because System institutions are Federally chartered Total Burden for Collection: 493,755 promulgating a rule. instrumentalities of the United States and hours. The OCC has estimated that the total instrumentalities of the United States are Board: cost associated with this NPRM, if specifically excepted from the definition of Number of Respondents: 843. implemented, would be approximately ‘‘collection of information’’ contained in 44 U.S.C. Burden for Existing Recordkeeping 3502(3). $72 million and the average cost per 47 NCUA’s part 760 contains various information Requirements: 14,191 hours. institution would be $55,000. However, collection requirements as described in the PRA Burden for Existing Disclosure pursuant to section 201 of the UMRA, and previously submitted by NCUA. Requirements: 17,632 hours.

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Burden for Proposed Rule: 33,720 All comments received, including 12 CFR Part 172 hours. attachments and other supporting Flood insurance, Reporting and Total Burden for Collection: 65,543 materials, are part of the public record recordkeeping requirements, Savings hours. and subject to public disclosure. Do not associations. FDIC: enclose any information in your Number of Respondents: 4,421. comment or supporting materials that 12 CFR Part 208 Burden for Existing Recordkeeping you consider confidential or Accounting, Agriculture, Banks, Requirements: 61,894 hours. inappropriate for public disclosure. banking, Confidential business Burden for Existing Disclosure Board: Cynthia Ayouch, Federal information, Crime, Currency, Federal Requirements: 76,999 hours. Reserve Clearance Officer, Office of the Reserve System, Flood insurance, Burden for Proposed Rule: 176,840 Chief Data Officer, Mail Stop 95, Board Mortgages, Reporting and recordkeeping hours. of Governors of the Federal Reserve requirements, Securities. Total Burden for Collection: 315,733 System, Washington, DC 20551, with hours. copies of such comments sent to the 12 CFR Part 339 NCUA: Office of Management and Budget, Flood insurance, Reporting and Number of Respondents: 4,192. Paperwork Reduction Project (7100– Burden for Existing Recordkeeping recordkeeping requirements, Savings 0280), Washington, DC 20503. associations. Requirements: 57,230.85 hours. FDIC: You may submit comments, Burden for Existing Disclosure which should refer to ‘‘Interagency 12 CFR Part 391 Requirements: 70,966.26 hours. Flood Insurance, 3064–0120’’ by any of Burden for Proposed Rule: 8,240 Flood insurance, Reporting and the following methods: recordkeeping requirements, Savings hours. • Agency Web site: http:// associations. Total Burden for Collection: www.fdic.gov/regulations/laws/federal/ 136,437.11 hours. propose.html. Follow the instructions 12 CFR Part 614 These collections are available to the for submitting comments on the FDIC Agriculture, Banks, banking, Flood public at www.reginfo.gov. Web site. insurance, Foreign trade, Reporting and Comments are invited on: (1) Whether • Federal eRulemaking Portal: http:// recordkeeping requirements, Rural the proposed collection of information www.regulations.gov. Follow the is necessary for the proper performance instructions for submitting comments. areas. of the Agencies’ functions; including • Email: [email protected]. 12 CFR Part 760 whether the information has practical Include ‘‘Interagency Flood Insurance, utility; (2) the accuracy of the Agencies’ 3064–0120’’ in the subject line of the Credit unions, Mortgages, Flood estimate of the burden of the proposed message. insurance, Reporting and recordkeeping information collection, including the • Mail: Gary A. Kuiper, Counsel, requirements. cost of compliance; (3) ways to enhance Attn: Comments, Room NYA–5046, Office of the Comptroller of the the quality, utility, and clarity of the Federal Deposit Insurance Corporation, Currency information to be collected; and (4) 550 17th Street NW., Washington, DC 12 CFR CHAPTER I ways to minimize the burden of 20429. information collection on respondents, • Hand Delivery: Comments may be Authority and Issuance hand delivered to the guard station at including through the use of automated For the reasons set forth in the joint the rear of the 550 17th Street Building collection techniques or other forms of preamble and under the authority of 12 (located on F Street) on business days information technology. U.S.C. 93a and 5412(b)(2)(B), the OCC Comments on the collection of between 7 a.m. and 5 p.m. proposes to amend Part 12 Chapter I as information should be sent to: Public Inspection: All comments follows: OCC: Because paper mail in the received will be posted without change Washington, DC area and at the OCC is to http://www.fdic.gov/regulations/laws/ ■ 1. Revise Part 22 to read as follows:: subject to delay, commenters are federal/propose.html including any PART 22—LOANS IN AREAS HAVING encouraged to submit comments by personal information provided. SPECIAL FLOOD HAZARDS email if possible. Comments may be NCUA: Tracy Crews, National Credit sent to: Legislative and Regulatory Union Administration, 1775 Duke Sec. Activities Division, Office of the Street, Alexandria, Virginia 22314– 22.1 Purpose and scope. Comptroller of the Currency, Attention: 3428, Fax No. 703–837–2861, Email: 22.2 Definitions. [1557–0202], 400 7th Street SW., Suite [email protected]. 22.3 Requirement to purchase flood 3E–218, Mail Stop 9W–11, Washington, Additionally, commenters may send a insurance where available. DC 20219. In addition, comments may copy of their comments to the OMB 22.4 Exemptions. desk officer for the agencies by mail to 22.5 Escrow requirement. be sent by fax to (571) 465–4326 or by 22.6 Required use of standard flood hazard electronic mail to regs.comments@ the Office of Information and Regulatory Affairs, U.S. Office of Management and determination form. occ.treas.gov. You may personally 22.7 Force-placement of flood insurance. inspect and photocopy comments at the Budget, New Executive Office Building, 22.8 Determination fees. OCC, 400 7th Street SW., Washington, Room 10235, 725 17th Street NW., 22.9 Notice of special flood hazards and DC 20219. For security reasons, the OCC Washington, DC 20503; by fax to (202) availability of Federal disaster relief _ requires that visitors make an 395–6974; or by email to oira assistance. appointment to inspect comments. You [email protected]. 22.10 Notice of servicer’s identity. may do so by calling (202) 649–6700. Appendix A to Part 22—Sample Form of List of Subjects Notice of Special Flood Hazards and Upon arrival, visitors will be required to 12 CFR Part 22 Availability of Federal Disaster Relief present valid government-issued photo Assistance identification and to submit to security Flood insurance, Mortgages, National Appendix B to Part 22—Sample Form of screening in order to inspect and banks, Reporting and recordkeeping Notice of Requirement to Escrow For photocopy comments. requirements, Savings associations. Outstanding Loans

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Appendix C to Part 22—Sample Escrow insurance in the State or jurisdiction chance of flooding in any given year, as Requirement Clause for Loans That which the insured building is located, designated by the Administrator of Become Designated Loans by the insurance regulator of that State FEMA. Authority: 12 U.S.C. 93a, 1462a, 1463, or jurisdiction; or (m) Table funding means a settlement 1464, and 5412(b)(2)(B); 42 U.S.C. 4012a, (ii) Recognized, or not disapproved, as at which a loan is funded by a 4104a, 4104b, 4106, and 4128. a surplus lines insurer by the insurance contemporaneous advance of loan funds § 22.1 Purpose and scope. regulator of the State or jurisdiction and an assignment of the loan to the where the property to be insured is (a) Purpose. The purpose of this part person advancing the funds. is to implement the requirements of the located in the case of a policy of difference in conditions, multiple peril, § 22.3 Requirement to purchase flood National Flood Insurance Act of 1968 insurance where available. and the Flood Disaster Protection Act of all risk, or other blanket coverage; (2) Provides flood insurance coverage (a) In general. A national bank or 1973, as amended (42 U.S.C. 4001– which is at least as broad as the Federal savings association shall not 4129). (b) Scope. This part, except for §§ 22.6 coverage provided under a standard make, increase, extend, or renew any and 22.8, applies to loans secured by flood insurance policy under the NFIP, designated loan unless the building or buildings or mobile homes located or to including when considering mobile home and any personal property be located in areas determined by the deductibles, exclusions, and conditions securing the loan is covered by flood Administrator of the Federal Emergency offered by the insurer; insurance for the term of the loan. The (3) Includes all of the following: Management Agency to have special amount of insurance must be at least (i) A requirement for the insurer to flood hazards. Sections 22.6 and 22.8 equal to the lesser of the outstanding give 45 days’ written notice of apply to loans secured by buildings or principal balance of the designated loan cancellation or non-renewal of flood mobile homes, regardless of location. or the maximum limit of coverage insurance coverage to: available for the particular type of § 22.2 Definitions. (A) The insured; and property under the Act. Flood insurance For the purposes of this part: (B) The national bank or Federal coverage under the Act is limited to the (a) Act means the National Flood savings association that made the building or mobile home and any Insurance Act of 1968, as amended (42 designated loan secured by the property personal property that secures a loan U.S.C. 4001–4129). for which the insurance is providing and not the land itself. (b) Administrator of FEMA means the coverage; (b) Table funded loans. A national Administrator of the Federal Emergency (ii) Information about the availability bank or Federal savings association that Management Agency. of flood insurance coverage under the acquires a loan from a mortgage broker (c) Building means a walled and NFIP; or other entity through table funding roofed structure, other than a gas or (iii) A mortgage interest clause similar shall be considered to be making a loan liquid storage tank, that is principally to the clause contained in the standard for the purposes of this part. flood insurance policy under the NFIP; above ground and affixed to a (c) Private flood insurance. (1) and permanent site, and a walled and roofed Mandatory acceptance. A national bank (iv) A provision requiring an insured structure while in the course of or Federal savings association must to file suit not later than one year after construction, alteration, or repair. accept private flood insurance, as the date of a written denial of all or part (d) Community means a State or a defined in § 22.2(h), as satisfaction of political subdivision of a State that has of a claim under the policy; and (4) Contains cancellation provisions the flood insurance coverage zoning and building code jurisdiction requirement, provided that coverage over a particular area having special that are as restrictive as the provisions contained in a standard flood insurance under the flood insurance policy meets flood hazards. the requirement for coverage under (e) Designated loan means a loan policy under the NFIP. paragraph (a) of this section. secured by a building or mobile home (i) Residential improved real estate (2) Safe harbor. A flood insurance that is located or to be located in a means real estate upon which a home or policy shall be deemed to meet the special flood hazard area in which flood other residential building is located or definition of private flood insurance in insurance is available under the Act. to be located. (f) Mobile home means a structure, (j) Federal savings association means, § 22.2(h) for purposes of paragraph (a) of transportable in one or more sections, for purposes of this part, a Federal this section if a State insurance that is built on a permanent chassis and savings association as that term is regulator makes a determination in designed for use with or without a defined in 12 U.S.C. 1813(b)(2) and any writing that the policy meets the permanent foundation when attached to service corporations thereof. definition of private flood insurance in the required utilities. The term mobile (k) Servicer means the person § 22.2(h). home does not include a recreational responsible for: § 22.4 Exemptions. vehicle. For purposes of this part, the (1) Receiving any scheduled, periodic The flood insurance requirement term mobile home means a mobile home payments from a borrower under the prescribed by § 22.3 does not apply with on a permanent foundation. The term terms of a loan, including amounts for respect to: mobile home includes a manufactured taxes, insurance premiums, and other home as that term is used in the NFIP. charges with respect to the property (a) Any State-owned property covered (g) NFIP means the National Flood securing the loan; and under a policy of self-insurance Insurance Program authorized under the (2) Making payments of principal and satisfactory to the Administrator of Act. interest and any other payments from FEMA, who publishes and periodically (h) Private flood insurance means an the amounts received from the borrower revises the list of States falling within insurance policy that: as may be required under the terms of this exemption; or (1) Is issued by an insurance company the loan. (b) Property securing any loan with an that is: (l) Special flood hazard area means original principal balance of $5,000 or (i) Licensed, admitted, or otherwise the land in the flood plain within a less and a repayment term of one year approved to engage in the business of community having at least a one percent or less.

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§ 22.5 Escrow requirement. maintained in escrow accounts for previously qualified for the exception in (a) In general. (1) Applicability. certain types of loans and requires paragraph § 22.5(c)(1), but no longer Except as provided in paragraph (c) of escrow account statements for those qualifies for the exception because it this section, a national bank or Federal accounts, only if the loan is otherwise had assets of $1 billion or more for two savings association, or a servicer acting subject to RESPA. Following receipt of consecutive calendar year ends, the on its behalf, shall require the escrow of a notice from the Administrator of national bank or Federal savings all premiums and fees for any flood FEMA or other provider of flood association must begin escrowing insurance required under § 22.3(a) for insurance that premiums are due, the premiums and fees for flood insurance any loan secured by residential national bank or Federal savings pursuant to § 22.3(a): improved real estate or a mobile home association, or a servicer acting on (i) For any designated loan that is outstanding or entered into on or behalf of the national bank or Federal outstanding on July 1 of the succeeding after July 6, 2014, payable with the same savings association, shall pay the calendar year, with the first loan frequency as payments on the loan are amount owed to the insurance provider payment on or after the first renewal made for the duration of the loan, unless from the escrow account by the date date of the borrower’s flood insurance the national bank or Federal savings when such premiums are due. policy on or after July 1 of the association has determined that: (b) Notice. A national bank or Federal succeeding calendar year; (i) The loan is an extension of credit savings association that is required to (ii) For any designated loan made on primarily for business, commercial, or comply with paragraph (a) of this or after July 1 of the succeeding agricultural purposes; section, or a servicer acting on behalf of calendar year, upon loan (ii) The borrower has obtained flood the national bank or Federal savings consummation; or insurance coverage that meets the association, shall mail or deliver a (iii) For any loan that becomes a requirements of § 22.3(a) for the written notice informing the borrower designated loan after July 1 of the residential improved real estate or that the national bank or Federal savings succeeding calendar year, with the first mobile home securing the loan and is association is required to escrow all loan payment after the flood insurance currently paying premiums and fees premiums and fees for required flood policy is established. through an escrow account established insurance: (d) Change in ownership. If a national by another lender; or (1) For loans subject to paragraphs bank or Federal savings association that (iii) Flood insurance coverage for the (a)(2)(i), (c)(2)(i), or (d) of this section, is required to comply with paragraph (a) residential improved real estate or at least 90 days before the escrow of of this section acquires a designated mobile home is provided by a policy premiums and fees under paragraphs loan covered by flood insurance that is purchased by a common interest (a)(2)(i), (c)(2)(i), or (d), using language required under § 22.3(a) that becomes community instead of the borrower, that is substantially similar to the model subject to paragraph (a) of this section such as an NFIP Residential form in appendix B; as a result of the bank’s or savings Condominium Building Association (2) For loans subject to paragraphs association’s acquisition of the loan, the Policy (RCBAP), that meets the (a)(2)(ii) or (c)(2)(ii) of this section, with bank or savings association must begin requirements of § 22.3(a). the notice provided under § 22.9, using escrowing premiums and fees for flood (2) Timing. A national bank or Federal language that is substantially similar to insurance pursuant to paragraph (a) of savings association that is subject to model clauses on the escrow this section with the first loan payment paragraph (a) of this section, other than requirement in appendix A; or on or after the first renewal date of the due to a change in status under (3) For loans subject to paragraphs borrower’s flood insurance policy on or paragraph (c)(2) of this section or for (a)(2)(iii) or (c)(2)(iii) of this section, after the date that is six months from the acquired loans subject to paragraph (d) with the notice provided under § 22.7, transfer date of the loan. of this section, shall begin escrowing using language that is substantially premiums and fees for flood insurance: similar to model clauses on the escrow § 22.6 Required use of standard flood hazard determination form. (i) For any designated loan requirement in appendix C. outstanding on July 6, 2014, with the (c) Exception. (1) Qualification. (a) Use of form. A national bank or first loan payment on or after the first Except as may be required under Federal savings association shall use the renewal date of the borrower’s flood applicable State law, paragraphs (a)(1) standard flood hazard determination insurance policy on or after July 6, 2014; and (2) of this section do not apply to form developed by the Administrator of (ii) For any designated loan made on a national bank or Federal savings FEMA when determining whether the or after July 6, 2014, upon loan association: building or mobile home offered as consummation; or (i) That has total assets of less than $1 collateral security for a loan is or will (iii) For any loan that becomes a billion as of December 31 of either of the be located in a special flood hazard area designated loan after July 6, 2014, with two prior calendar years; and in which flood insurance is available the first loan payment after the flood (ii) On or before July 6, 2012: under the Act. The standard flood insurance policy is established. (A) Was not required under Federal or hazard determination form may be used (3) Escrow Account. The national State law to deposit taxes, insurance in a printed, computerized, or electronic bank or Federal savings association, or premiums, fees, or any other charges in manner. A national bank or Federal a servicer acting on behalf of the an escrow account for the entire term of savings association may obtain the national bank or Federal savings a loan secured by residential improved standard flood hazard determination association, shall deposit the flood real estate or a mobile home; and form from FEMA’s Web site at insurance premiums and fees on behalf (B) Did not have a policy of www.fema.gov. of the borrower in an escrow account. consistently and uniformly requiring the (b) Retention of form. A national bank This escrow account will be subject to deposit of taxes, insurance premiums, or Federal savings association shall escrow requirements adopted pursuant fees, or any other charges in an escrow retain a copy of the completed standard to section 10 of the Real Estate account for loans secured by residential flood hazard determination form, in Settlement Procedures Act of 1974 (12 improved real estate or a mobile home. either hard copy or electronic form, for U.S.C. 2609) (RESPA), which generally (2) Change in status. If a national bank the period of time the bank or savings limits the amount that may be or Federal savings association association owns the loan.

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§ 22.7 Force-placement of flood insurance. borrower an insurance policy or not flood insurance is available under (a) Notice and purchase of coverage. declarations page that includes the the Act for the collateral securing the If a national bank or Federal savings existing flood insurance policy number loan. association, or a servicer acting on and the identity of, and contact (b) Contents of notice. The written behalf of the bank or savings information for, the insurance company notice must include the following association, determines at any time or agent. information: during the term of a designated loan that (1) A warning, in a form approved by § 22.8 Determination fees. the building or mobile home and any the Administrator of FEMA, that the personal property securing the (a) General. Notwithstanding any building or the mobile home is or will designated loan is not covered by flood Federal or State law other than the be located in a special flood hazard area; insurance or is covered by flood Flood Disaster Protection Act of 1973 as (2) A description of the flood insurance in an amount less than the amended (42 U.S.C. 4001— 4129), any insurance purchase requirements set amount required under § 22.3, then the national bank or Federal savings forth in section 102(b) of the Flood national bank or Federal savings association, or a servicer acting on Disaster Protection Act of 1973, as association, or its servicer shall notify behalf of the national bank or Federal amended (42 U.S.C. 4012a(b)); the borrower that the borrower should savings association, may charge a (3) A statement, where applicable, obtain flood insurance, at the borrower’s reasonable fee for determining whether that flood insurance coverage is expense, in an amount at least equal to the building or mobile home securing available from private insurance the amount required under § 22.3, for the loan is located or will be located in companies that issue standard flood the remaining term of the loan. If the a special flood hazard area. A insurance policies on behalf of the NFIP borrower fails to obtain flood insurance determination fee may also include, but or directly from the NFIP; within 45 days after notification, then is not limited to, a fee for life-of-loan (4) A statement that flood insurance the national bank or Federal savings monitoring. that provides the same level of coverage association, or its servicer, shall (b) Borrower fee. The determination as a standard flood insurance policy purchase insurance on the borrower’s fee authorized by paragraph (a) of this under the NFIP also may be available behalf. The national bank or Federal section may be charged to the borrower from a private insurance company that savings association, or its servicer may if the determination: issues policies on behalf of the charge the borrower for the cost of (1) Is made in connection with a company; premiums and fees incurred in making, increasing, extending, or (5) A statement that the borrower is purchasing the insurance, including renewing of the loan that is initiated by encouraged to compare the flood premiums or fees incurred for coverage the borrower; insurance coverage, deductibles, beginning on the date on which flood (2) Reflects the Administrator of exclusions, conditions and premiums insurance coverage lapsed or did not FEMA’s revision or updating of flood associated with flood insurance policies provide a sufficient coverage amount. plain areas or flood-risk zones; issued on behalf of the NFIP and (b) Termination of force-placed (3) Reflects the Administrator of policies issued on behalf of private insurance. (1) Termination and refund. FEMA’s publication of a notice or insurance companies and that the Within 30 days of receipt by a national compendium that: borrower should direct inquiries bank or Federal savings association, or (i) Affects the area in which the regarding the availability, cost, and a servicer acting on the bank’s or saving building or mobile home securing the comparisons of flood insurance association’s behalf, of a confirmation of loan is located; coverage to an insurance agent; and a borrower’s existing flood insurance (ii) By determination of the (6) A statement whether Federal coverage, the national bank or Federal Administrator of FEMA, may reasonably disaster relief assistance may be savings association, or its servicer shall: require a determination whether the available in the event of damage to the (i) Notify the insurance provider to building or mobile home securing the building or mobile home caused by terminate any insurance purchased by loan is located in a special flood hazard flooding in a Federally declared the national bank or Federal savings area; or disaster. association or its servicer under (4) Results in the purchase of flood (c) Timing of notice. The national paragraph (a) of this section; and insurance coverage by the lender, or its bank or Federal savings association (ii) Refund to the borrower all servicer, on behalf of the borrower shall provide the notice required by premiums paid by the borrower for any under § 22.7. insurance purchased by the national (c) Purchaser or transferee fee. The paragraph (a) of this section to the bank or Federal savings association or determination fee authorized by borrower within a reasonable time its servicer under paragraph (a) of this paragraph (a) of this section may be before the completion of the transaction, section during any period during which charged to the purchaser or transferee of and to the servicer as promptly as the borrower’s flood insurance coverage a loan in the case of the sale or transfer practicable after the bank or savings and the insurance coverage purchased of the loan. association provides notice to the by the national bank or Federal savings borrower and in any event no later than association or its servicer were each in § 22.9 Notice of special flood hazards and the time the bank or savings association effect, and any related fees charged to availability of Federal disaster relief provides other similar notices to the the borrower with respect to the assistance. servicer concerning hazard insurance insurance purchased by the national (a) Notice requirement. When a and taxes. Notice to the servicer may be bank or Federal savings association or national bank or Federal savings made electronically or may take the its servicer during such period. association makes, increases, extends, or form of a copy of the notice to the (2) Sufficiency of demonstration. For renews a loan secured by a building or borrower. purposes of confirming a borrower’s a mobile home located or to be located (d) Record of receipt. The national existing flood insurance coverage under in a special flood hazard area, the bank bank or Federal savings association paragraph (b) of this section, a national or savings association shall mail or shall retain a record of the receipt of the bank or Federal savings association or deliver a written notice to the borrower notices by the borrower and the servicer its servicer shall accept from the and to the servicer in all cases whether for the period of time it owns the loan.

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(e) Alternate method of notice. Instead APPENDIX A TO PART 22—SAMPLE the flood insurance coverage, deductibles, of providing the notice to the borrower FORM OF NOTICE OF SPECIAL exclusions, conditions and premiums required by paragraph (a) of this section, FLOOD HAZARDS AND associated with flood insurance policies AVAILABILITY OF FEDERAL issued on behalf of the NFIP and policies a national bank or Federal savings issued on behalf of private insurance association may obtain satisfactory DISASTER RELIEF ASSISTANCE companies and ask an insurance agent as to written assurance from a seller or lessor Notice of Special Flood Hazards and the availability, cost, and comparisons of that, within a reasonable time before the Availability of Federal Disaster Relief flood insurance coverage. completion of the sale or lease Assistance [Escrow Requirement for Residential Loans transaction, the seller or lessor has We are giving you this notice to inform you Federal law requires a lender or its servicer provided such notice to the purchaser or that: to escrow all premiums and fees for flood lessee. The national bank or Federal The building or mobile home securing the insurance that covers any residential savings association shall retain a record loan for which you have applied is or will building or mobile home securing a loan that be located in an area with special flood of the written assurance from the seller is located in an area with special flood hazards. hazards. These premiums and fees must be or lessor for the period of time it owns The area has been identified by the paid to the lender or its servicer with the the loan. Administrator of the Federal Emergency same frequency as your loan payments for (f) Use of prescribed form of notice. A Management Agency (FEMA) as a special the duration of your loan and will be flood hazard area using FEMA’s Flood national bank or Federal savings deposited in an escrow account on your Insurance Rate Map or the Flood Hazard behalf to be paid to the flood insurance association will be considered to be in Boundary Map for the following community: provider. Upon receipt of a notice from the compliance with the requirement for lll. This area has a one percent (1%) flood insurance provider that the premiums notice to the borrower of this section by chance of a flood equal to or exceeding the are due, the premiums shall be paid from the providing written notice to the borrower base flood elevation (a 100-year flood) in any escrow account to the insurance provider.] containing the language presented in given year. During the life of a 30-year lFlood insurance coverage under the mortgage loan, the risk of a 100-year flood in appendix A to this part within a NFIP is not available for the property a special flood hazard area is 26 percent securing the loan because the community in reasonable time before the completion (26%). which the property is located does not of the transaction. The notice presented Federal law allows a lender and borrower participate in the NFIP. In addition, if the in appendix A to this part satisfies the jointly to request the Administrator of FEMA non-participating community has been borrower notice requirements of the Act. to review the determination of whether the identified for at least one year as containing property securing the loan is located in a a special flood hazard area, properties § 22.10 Notice of servicer’s identity. special flood hazard area. If you would like located in the community will not be eligible to make such a request, please contact us for for Federal disaster relief assistance in the (a) Notice requirement. When a further information. event of a Federally declared flood disaster. national bank or Federal savings l The community in which the property association makes, increases, extends, securing the loan is located participates in APPENDIX B TO PART 22—SAMPLE renews, sells, or transfers a loan secured the National Flood Insurance Program FORM OF NOTICE OF REQUIREMENT (NFIP). Federal law will not allow us to make by a building or mobile home located or TO ESCROW FOR OUTSTANDING you the loan that you have applied for if you LOANS to be located in a special flood hazard do not purchase flood insurance. The flood area, it shall notify the Administrator of insurance must be maintained for the life of Notice of Escrow Requirement FEMA (or the Administrator’s designee) the loan. If you fail to purchase or renew We are giving you this notice to inform you in writing of the identity of the servicer flood insurance on the property, Federal law that Federal law requires a lender or its of the loan. The Administrator of FEMA authorizes and requires us to purchase the servicer to escrow all premiums and fees for has designated the insurance provider to flood insurance for you at your expense. flood insurance that covers the building or • At a minimum, flood insurance mobile home securing your loan(s). receive the national bank’s or Federal purchased must cover the lesser of: How the Escrow Will Work savings association’s notice of the (1) the outstanding principal balance of the servicer’s identity. This notice may be loan; or Federal law requires that you pay flood provided electronically if electronic (2) the maximum amount of coverage insurance premiums and fees with the same transmission is satisfactory to the allowed for the type of property under the frequency as your loan payments for the duration of your loan. Your payments will be Administrator of FEMA’s designee. NFIP. Flood insurance coverage under the NFIP deposited in an escrow account so that when (b) Transfer of servicing rights. The is limited to the building or mobile home and we receive a notice from your flood national bank or Federal savings any personal property that secures your loan insurance provider that your flood insurance association shall notify the and not the land itself. premiums are due, we will make payment • Federal disaster relief assistance (usually from the escrow account to the insurance Administrator of FEMA (or the provider on your behalf. Administrator’s designee) of any change in the form of a low-interest loan) may be available for damages incurred in excess of When the Escrow Will Start in the servicer of a loan described in your flood insurance if your community’s paragraph (a) of this section within 60 participation in the NFIP is in accordance When you receive your next flood days after the effective date of the with NFIP requirements. insurance bill with the renewal of your change. This notice may be provided policy from your flood insurance provider, Availability of Private Flood Insurance you are responsible for making that payment electronically if electronic transmission Coverage directly to your insurance provider. is satisfactory to the Administrator of Flood insurance coverage under the NFIP We will begin collecting the premiums and FEMA’s designee. Upon any change in may be purchased through an insurance fees for your flood insurance escrow account the servicing of a loan described in agent who will obtain the policy either with your mortgage loan payment following paragraph (a) of this section, the duty to directly through the NFIP or through an this renewal date for the next policy term. provide notice under this paragraph (b) insurance company that participates in the For example, if your flood insurance policy NFIP. Flood insurance that provides the same renewal date is September 15 and your next shall transfer to the transferee servicer. level of coverage as a standard flood mortgage loan payment is October 1, the bank insurance policy under the NFIP may be will begin collecting the flood insurance available from private insurers that do not premiums and fees for escrow with the participate in the NFIP. You should compare October 1 mortgage loan payment.

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The escrow amount for flood insurance 1973, as amended (42 U.S.C. 4001– difference in conditions, multiple peril, will be added to your existing periodic 4129). all risk, or other blanket coverage; mortgage payment. The payments you make (2) Scope. This section, except for (ii) Provides flood insurance coverage into the escrow account will accumulate over paragraphs (f) and (h) of this section, which is at least as broad as the time and the funds will be used to pay your applies to loans secured by buildings or coverage provided under a standard flood insurance policy at the next policy renewal date. mobile homes located or to be located flood insurance policy under the NFIP, Any questions regarding this new escrow in areas determined by the including when considering requirement should be directed to [Insert Administrator of the Federal Emergency deductibles, exclusions, and conditions Name of Lender or Servicer] at [Insert Management Agency to have special offered by the insurer; Contact Information]. flood hazards. Paragraphs (f) and (h) of (iii) Includes all of the following: this section apply to loans secured by (A) A requirement for the insurer to APPENDIX C TO PART 22—SAMPLE buildings or mobile homes, regardless of give 45 days’ written notice of ESCROW REQUIREMENT CLAUSE location. cancellation or non-renewal of flood FOR LOANS THAT BECOME (b) Definitions. For purposes of this insurance coverage to: DESIGNATED LOANS section: (1) The insured; and Escrow Requirement Clause (1) Act means the National Flood (2) The member bank that made the Federal law requires a lender or its servicer Insurance Act of 1968, as amended (42 designated loan secured by the property to escrow all premiums and fees for flood U.S.C. 4001–4129). for which the insurance is providing insurance that covers any residential (2) Administrator of FEMA means the coverage; building or mobile home securing a loan that Administrator of the Federal Emergency (B) Information about the availability is located in an area with special flood Management Agency. of flood insurance coverage under the hazards. You must make payments of these (3) Building means a walled and NFIP; premiums and fees to [Insert Name of Lender roofed structure, other than a gas or (C) A mortgage interest clause similar or Servicer] with the same frequency as your liquid storage tank, that is principally to the clause contained in the standard loan payments for the duration of your loan. flood insurance policy under the NFIP; Your payments will be deposited in an above ground and affixed to a escrow account on your behalf to be paid to permanent site, and a walled and roofed and the flood insurance provider. Upon receipt of structure while in the course of (D) A provision requiring an insured a notice from the flood insurance provider construction, alteration, or repair. to file suit not later than one year after that the flood insurance premium is due, (4) Community means a State or a the date of a written denial of all or part [Insert Name of Lender or Servicer] will pay political subdivision of a State that has of a claim under the policy; and the premium from the escrow account to the zoning and building code jurisdiction (iv) Contains cancellation provisions insurance provider. over a particular area having special that are as restrictive as the provisions flood hazards. contained in a standard flood insurance PART 172—[REMOVED] (5) Designated loan means a loan policy under the NFIP. ■ 2. Remove part 172. secured by a building or mobile home (9) Residential improved real estate that is located or to be located in a means real estate upon which a home or Federal Reserve System special flood hazard area in which flood other residential building is located or 12 CFR CHAPTER II insurance is available under the Act. to be located. (6) Mobile home means a structure, (10) Servicer means the person Authority and Issuance transportable in one or more sections, responsible for: For the reasons set forth in the joint that is built on a permanent chassis and (i) Receiving any scheduled, periodic preamble, part 208 of chapter II of title designed for use with or without a payments from a borrower under the 12 of the Code of Federal Regulations is permanent foundation when attached to terms of a loan, including amounts for proposed to be amended as set forth the required utilities. The term mobile taxes, insurance premiums, and other below: home does not include a recreational charges with respect to the property vehicle. For purposes of this section, the securing the loan; and PART 208—MEMBERSHIP OF STATE term mobile home means a mobile home (ii) Making payments of principal and BANKING INSTITUTIONS IN THE on a permanent foundation. The term interest and any other payments from FEDERAL RESERVE SYSTEM mobile home includes a manufactured the amounts received from the borrower (REGULATION H) home as that term is used in the as may be required under the terms of National Flood Insurance Program. the loan. ■ 1. The authority citation for part 208 (7) NFIP means the National Flood (11) Special flood hazard area means continues to read as follows: Insurance Program authorized under the the land in the flood plain within a Authority: 12 U.S.C. 36, 248(a), 248(c), Act. community having at least a one percent 321–338a, 371d, 461, 481–486, 601, 611, (8) Private flood insurance means an chance of flooding in any given year, as 1814, 1823(j), 1828(o), 1831o, 1831p–1, 3105, insurance policy that: designated by the Administrator of 3310, 3331–3351, and 3906–3909; 15 U.S.C. (i) Is issued by an insurance company FEMA. 78b, 781(b), 781(g), 781(i), 78o–4(c)(5), 78q, that is: (12) Table funding means a settlement 78q–1, and 78w; 31 U.S.C. 5318; 42 U.S.C. (A) Licensed, admitted, or otherwise at which a loan is funded by a 4012a, 4104a, 4104b, 4106, and 4128. approved to engage in the business of contemporaneous advance of loan funds ■ 2. Revise § 208.25 as follows: insurance in the State or jurisdiction and an assignment of the loan to the which the insured building is located, person advancing the funds. § 208.25 Loans in areas having special by the insurance regulator of that State (c) Requirement to purchase flood flood hazards. or jurisdiction; or insurance where available—(1) In (a) Purpose and scope—(1) Purpose. (B) Recognized, or not disapproved, as general. A member bank shall not make, The purpose of this section is to a surplus lines insurer by the insurance increase, extend, or renew any implement the requirements of the regulator of the State or jurisdiction designated loan unless the building or National Flood Insurance Act of 1968 where the property to be insured is mobile home and any personal property and the Flood Disaster Protection Act of located in the case of a policy of securing the loan is covered by flood

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insurance for the term of the loan. The (B) The borrower has obtained flood escrow all premiums and fees for amount of insurance must be at least insurance coverage that meets the required flood insurance: equal to the lesser of the outstanding requirements of paragraph (c)(1) of this (i) For loans subject to paragraphs principal balance of the designated loan section for the residential improved real (e)(1)(ii)(A), (e)(3)(ii)(A), or (e)(4) of this or the maximum limit of coverage estate or mobile home securing the loan section, at least 90 days before the available for the particular type of and is currently paying premiums and escrow of premiums and fees under property under the Act. Flood insurance fees through an escrow account paragraphs (e)(1)(ii)(A), (e)(3)(ii)(A), or coverage under the Act is limited to the established by another lender; or (e)(4) of this section, using language that building or mobile home and any (C) Flood insurance coverage for the is substantially similar to the model personal property that secures a loan residential improved real estate or form in appendix B; or and not the land itself. mobile home is provided by a policy (ii) For loans subject to paragraphs (2) Table funded loans. A member that is purchased by a common interest (e)(1)(ii)(B) or (e)(3)(ii)(B) of this section, bank that acquires a loan from a community instead of the borrower, with the notice provided under mortgage broker or other entity through such as an NFIP Residential paragraph (i) of this section, using table funding shall be considered to be Condominium Building Association language that is substantially similar to making a loan for the purposes of this Policy (RCBAP), that meets the model clauses on the escrow section. requirements of paragraph (c) of this requirement in appendix A; or (3) Private flood insurance. (i) section. (iii) For loans subject to paragraphs Mandatory acceptance. A member bank (ii) Timing. A member bank that is (e)(1)(ii)(C) or (e)(3)(ii)(C) of this section, must accept private flood insurance, as subject to paragraph (e)(1) of this with the notice provided under defined in paragraph (b)(8) of this section, other than due to a change in paragraph (g) of this section, using section, as satisfaction of the flood status under paragraph (e)(3)(ii) of this language that is substantially similar to insurance coverage requirement, section or for acquired loans subject to model clauses on the escrow provided that coverage under the flood paragraph (e)(4) of this section, shall requirement in appendix C. insurance policy meets the requirement begin escrowing premiums and fees for (3) Exception. (i) Qualification. Except for coverage under paragraph (c)(1) of flood insurance: as may be required under applicable this section. (A) for any designated loan State law, paragraphs (e)(1) and (2) of (ii) Safe harbor. A flood insurance outstanding on July 6, 2014, with the this section do not apply to a member policy shall be deemed to meet the first loan payment on or after the first bank: definition of private flood insurance in renewal date of the borrower’s flood (A) That has total assets of less than paragraph (b)(8) of this section for insurance policy on or after July 6, 2014; $1 billion as of December 31 of either purposes of paragraph (c)(1) of this of the two prior calendar years; and (B) For any designated loan made on section if a State insurance regulator (B) On or before July 6, 2012: or after July 6, 2014, upon loan makes a determination in writing that (1) Was not required under Federal or consummation; or the policy meets the definition of State law to deposit taxes, insurance (C) For any loan that becomes a private flood insurance in paragraph premiums, fees, or any other charges in designated loan after July 6, 2014, with (b)(8) of this section. an escrow account for the entire term of (d) Exemptions. The flood insurance the first loan payment after the flood a loan secured by residential improved requirement prescribed by paragraph (c) insurance policy is established. real estate or a mobile home; and of this section does not apply with (iii) Escrow account. The member (2) Did not have a policy of respect to: bank, or a servicer acting on its behalf, consistently and uniformly requiring the (1) Any State-owned property covered shall deposit the flood insurance deposit of taxes, insurance premiums, under a policy of self-insurance premiums and fees on behalf of the fees, or any other charges in an escrow satisfactory to the Administrator of borrower in an escrow account. This account for loans secured by residential FEMA, who publishes and periodically escrow account will be subject to improved real estate or a mobile home. revises the list of States falling within escrow requirements adopted pursuant (ii) Change in status. If a member this exemption; or to section 10 of the Real Estate bank previously qualified for the (2) Property securing any loan with an Settlement Procedures Act of 1974 (12 exception in paragraph (e)(3)(i) of this original principal balance of $5,000 or U.S.C. 2609) (RESPA), which generally section, but no longer qualifies for the less and a repayment term of one year limits the amount that may be exception because it had assets of $1 or less. maintained in escrow accounts for billion or more for two consecutive (e) Escrow requirement. (1) In general. certain types of loans and requires calendar year ends, the member bank (i) Applicability. Except as provided in escrow account statements for those must begin escrowing premiums and paragraph (e)(3) of this section, a accounts, only if the loan is otherwise fees for flood insurance pursuant to member bank, or a servicer acting on its subject to RESPA. Following receipt of paragraph (e)(1) of this section: behalf, shall require the escrow of all a notice from the Administrator of (A) For any designated loan premiums and fees for any flood FEMA or other provider of flood outstanding on July 1 of the succeeding insurance required under paragraph (c) insurance that premiums are due, the calendar year, with the first loan of this section for any loan secured by member bank, or a servicer acting on its payment on or after the first renewal residential improved real estate or a behalf, shall pay the amount owed to date of the borrower’s flood insurance mobile home that is outstanding or the insurance provider from the escrow policy on or after July 1 of the entered into on or after July 6, 2014, account by the date when such succeeding calendar year; or payable with the same frequency as premiums are due. (B) For any designated loan made on payments on the loan are made for the (2) Notice. A member bank that is or after July 1 of the succeeding duration of the loan, unless the member required to comply with paragraph calendar year, upon loan bank has determined that: (e)(1) of this section, or a servicer acting consummation; or (A) The loan is an extension of credit on its behalf, shall mail or deliver a (C) For any loan that becomes a primarily for business, commercial, or written notice informing the borrower designated loan after July 1 of the agricultural purposes; or that the member bank is required to succeeding calendar year, with the first

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loan payment after the flood insurance incurred for coverage beginning on the (B) By determination of the policy is established. date on which flood insurance coverage Administrator of FEMA, may reasonably (4) Change in ownership. If a member lapsed or did not provide a sufficient require a determination whether the bank that is required to comply with coverage amount. building or mobile home securing the paragraph (e)(1) of this section acquires (2) Termination of force-placed loan is located in a special flood hazard a designated loan covered by flood insurance. (i) Termination and refund. area; or insurance required under paragraph (c) Within 30 days of receipt by a member (iv) Results in the purchase of flood of this section that becomes subject to bank, or a servicer acting on its behalf, insurance coverage by the lender or its paragraph (e)(1) of this section as a of a confirmation of a borrower’s servicer on behalf of the borrower under result of the member bank’s acquisition existing flood insurance coverage, the paragraph (g) of this section. of the loan, the member bank must member bank or its servicer shall: (3) Purchaser or transferee fee. The begin escrowing premiums and fees for (A) Notify the insurance provider to determination fee authorized by flood insurance pursuant to paragraph terminate any insurance purchased by paragraph (h)(1) of this section may be (e)(1) of this section with the first loan the member bank or its servicer under charged to the purchaser or transferee of payment on or after the first renewal paragraph (g)(1) of this section; and a loan in the case of the sale or transfer date of the borrower’s flood insurance (B) Refund to the borrower all of the loan. policy on or after the date that is six premiums paid by the borrower for any (i) Notice of special flood hazards and months from the transfer date of the insurance purchased by the member availability of Federal disaster relief loan. bank or its servicer under paragraph assistance. When a member bank (f) Required use of standard flood (g)(1) of this section during any period makes, increases, extends, or renews a hazard determination form.—(1) Use of during which the borrower’s flood loan secured by a building or a mobile form. A member bank shall use the insurance coverage and the insurance home located or to be located in a standard flood hazard determination coverage purchased by the member bank special flood hazard area, the bank shall form developed by the Administrator of or its servicer were each in effect, and mail or deliver a written notice to the FEMA when determining whether the any related fees charged to the borrower borrower and to the servicer in all cases building or mobile home offered as with respect to the insurance purchased whether or not flood insurance is collateral security for a loan is or will by the member bank or its servicer available under the Act for the collateral be located in a special flood hazard area during such period. securing the loan. in which flood insurance is available (ii) Sufficiency of demonstration. For (1) Contents of notice. The written under the Act. The standard flood purposes of confirming a borrower’s notice must include the following hazard determination form may be used existing flood insurance coverage under information: in a printed, computerized, or electronic paragraph (g)(2)(i) of this section, a (i) A warning, in a form approved by manner. A member bank may obtain the member bank or its servicer shall accept the Administrator of FEMA, that the standard flood hazard determination from the borrower an insurance policy building or the mobile home is or will form from FEMA’s Web site at declarations page that includes the be located in a special flood hazard area; www.fema.gov. existing flood insurance policy number (ii) A description of the flood (2) Retention of form. A member bank and the identity of, and contact insurance purchase requirements set shall retain a copy of the completed information for, the insurance company forth in section 102(b) of the Flood standard flood hazard determination or agent. Disaster Protection Act of 1973, as form, in either hard copy or electronic (h) Determination fees.—(1) General. amended (42 U.S.C. 4012a(b)); form, for the period of time the bank Notwithstanding any Federal or State (iii) A statement, where applicable, owns the loan. law other than the Flood Disaster that flood insurance coverage is (g) Force placement of flood Protection Act of 1973, as amended (42 available from private insurance insurance. (1) Notice and purchase of U.S.C. 4001–4129), any member bank, companies that issue standard flood coverage. If a member bank, or a servicer or a servicer acting on behalf of the insurance policies on behalf of the NFIP acting on behalf of the bank, determines bank, may charge a reasonable fee for or directly from the NFIP; at any time during the term of a determining whether the building or (iv) A statement that flood insurance designated loan that the building or mobile home securing the loan is that provides the same level of coverage mobile home and any personal property located or will be located in a special as a standard flood insurance policy securing the designated loan is not flood hazard area. A determination fee under the NFIP also may be available covered by flood insurance or is covered may also include, but is not limited to, from a private insurance company that by flood insurance in an amount less a fee for life-of-loan monitoring. issues policies on behalf of the than the amount required under (2) Borrower fee. The determination company; paragraph (c) of this section, then the fee authorized by paragraph (h)(1) of (v) A statement that the borrower is bank or its servicer shall notify the this section may be charged to the encouraged to compare the flood borrower that the borrower should borrower if the determination: insurance coverage, deductibles, obtain flood insurance, at the borrower’s (i) Is made in connection with a exclusions, conditions and premiums expense, in an amount at least equal to making, increasing, extending, or associated with flood insurance policies the amount required under paragraph renewing of the loan that is initiated by issued on behalf of the NFIP and (c) of this section, for the remaining the borrower; policies issued on behalf of private term of the loan. If the borrower fails to (ii) Reflects the Administrator of insurance companies and that the obtain flood insurance within 45 days FEMA’s revision or updating of flood borrower should direct inquiries after notification, then the member bank plain areas or flood-risk zones; regarding the availability, cost, and or its servicer shall purchase insurance (iii) Reflects the Administrator of comparisons of flood insurance on the borrower’s behalf. The member FEMA’s publication of a notice or coverage to an insurance agent; and bank or its servicer may charge the compendium that: (vi) A statement whether Federal borrower for the cost of premiums and (A) Affects the area in which the disaster relief assistance may be fees incurred in purchasing the building or mobile home securing the available in the event of damage to the insurance, including premiums or fees loan is located; or building or mobile home caused by

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flooding in a Federally declared days after the effective date of the Availability of Private Flood Insurance disaster. change. This notice may be provided Coverage (2) Timing of notice. The member electronically if electronic transmission Flood insurance coverage under the NFIP bank shall provide the notice required is satisfactory to the Administrator of may be purchased through an insurance by paragraph (i)(1) of this section to the FEMA’s designee. Upon any change in agent who will obtain the policy either borrower within a reasonable time the servicing of a loan described in directly through the NFIP or through an before the completion of the transaction, insurance company that participates in the paragraph (j)(1) of this section, the duty NFIP. Flood insurance that provides the same and to the servicer as promptly as to provide notice under this paragraph level of coverage as a standard flood practicable after the bank provides (j)(2) of this section shall transfer to the insurance policy under the NFIP may be notice to the borrower and in any event transferee servicer. available from private insurers that do not no later than the time the bank provides participate in the NFIP. You should compare other similar notices to the servicer APPENDIX A TO § 208.25—SAMPLE the flood insurance coverage, deductibles, concerning hazard insurance and taxes. FORM OF NOTICE OF SPECIAL exclusions, conditions, and premiums Notice to the servicer may be made FLOOD HAZARDS AND associated with flood insurance policies electronically or may take the form of a AVAILABILITY OF FEDERAL issued on behalf of the NFIP and policies copy of the notice to the borrower. DISASTER RELIEF ASSISTANCE issued on behalf of private insurance (3) Record of receipt. The member companies and ask an insurance agent as to Notice of Special Flood Hazards and the availability, cost, and comparisons of bank shall retain a record of the receipt Availability of Federal Disaster Relief flood insurance coverage. of the notices by the borrower and the Assistance [Escrow Requirement for Residential Loans servicer for the period of time the bank We are giving you this notice to inform you Federal law requires a lender or its servicer owns the loan. that: to escrow all premiums and fees for flood (4) Alternate method of notice. The building or mobile home securing the insurance that covers any residential Instead of providing the notice to the loan for which you have applied is or will borrower required by paragraph (i)(1) of building or mobile home securing a loan that be located in an area with special flood is located in an area with special flood this section, a member bank may obtain hazards. hazards. These premiums and fees must be satisfactory written assurance from a The area has been identified by the paid to the lender or its servicer with the seller or lessor that, within a reasonable Administrator of the Federal Emergency same frequency as your loan payments for time before the completion of the sale or Management Agency (FEMA) as a special the duration of your loan and will be lease transaction, the seller or lessor has flood hazard area using FEMA’s Flood deposited in an escrow account on your provided such notice to the purchaser or Insurance Rate Map or the Flood Hazard behalf to be paid to the flood insurance Boundary Map for the following community: provider. Upon receipt of a notice from the lessee. The member bank shall retain a llll. This area has a one percent (1%) record of the written assurance from the flood insurance provider that the premiums chance of a flood equal to or exceeding the are due, the premiums shall be paid from the seller or lessor for the period of time the base flood elevation (a 100-year flood) in any escrow account to the insurance provider. ] bank owns the loan. given year. During the life of a 30-year lFlood insurance coverage under the (5) Use of prescribed form of notice. mortgage loan, the risk of a 100-year flood in NFIP is not available for the property A member bank will be considered to be a special flood hazard area is 26 percent securing the loan because the community in in compliance with the requirement for (26%). which the property is located does not notice to the borrower of this paragraph Federal law allows a lender and borrower participate in the NFIP. In addition, if the (i) of this section by providing written jointly to request the Administrator of FEMA non-participating community has been notice to the borrower containing the to review the determination of whether the identified for at least one year as containing language presented in appendix A of property securing the loan is located in a a special flood hazard area, properties this section within a reasonable time special flood hazard area. If you would like located in the community will not be eligible to make such a request, please contact us for for Federal disaster relief assistance in the before the completion of the transaction. further information. event of a Federally declared flood disaster. The notice presented in appendix A of l The community in which the property this section satisfies the borrower notice securing the loan is located participates in APPENDIX B TO § 208.25—SAMPLE requirements of the Act. the National Flood Insurance Program FORM OF NOTICE OF REQUIREMENT (j) Notice of servicer’s identity. (1) (NFIP). Federal law will not allow us to make TO ESCROW FOR OUTSTANDING Notice requirement. When a member you the loan that you have applied for if you LOANS bank makes, increases, extends, renews, do not purchase flood insurance. The flood sells, or transfers a loan secured by a insurance must be maintained for the life of Notice of Escrow Requirement building or mobile home located or to the loan. If you fail to purchase or renew flood insurance on the property, Federal law We are giving you this notice to inform you be located in a special flood hazard area, that Federal law requires a lender or its the bank shall notify the Administrator authorizes and requires us to purchase the flood insurance for you at your expense. servicer to escrow all premiums and fees for of FEMA (or the Administrator’s • At a minimum, flood insurance flood insurance that covers the building or designee) in writing of the identity of purchased must cover the lesser of: mobile home securing your loan(s). the servicer of the loan. The (1) the outstanding principal balance of the How the Escrow Will Work Administrator of FEMA has designated loan; or Federal law requires that you pay flood the insurance provider to receive the (2) the maximum amount of coverage insurance premiums and fees with the same member bank’s notice of the servicer’s allowed for the type of property under the frequency as your loan payments for the identity. This notice may be provided NFIP. duration of your loan. Your payments will be electronically if electronic transmission Flood insurance coverage under the NFIP deposited in an escrow account so that when is satisfactory to the Administrator of is limited to the building or mobile home and we receive a notice from your flood FEMA’s designee. any personal property that secures your loan insurance provider that your flood insurance (2) Transfer of servicing rights. The and not the land itself. premiums are due, we will make payment • Federal disaster relief assistance (usually member bank shall notify the from the escrow account to the insurance in the form of a low-interest loan) may be provider on your behalf. Administrator of FEMA (or the available for damages incurred in excess of Administrator’s designee) of any change your flood insurance if your community’s When the Escrow Will Start in the servicer of a loan described in participation in the NFIP is in accordance When you receive your next flood paragraph (j)(1) of this section within 60 with NFIP requirements. insurance bill with the renewal of your

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policy from your flood insurance provider, 339.9 Notice of special flood hazards and of the Federal Deposit Insurance Act, 12 you are responsible for making that payment availability of Federal disaster relief U.S.C. 1813(g). directly to your insurance provider. assistance. (g) Mobile home means a structure, We will begin collecting the premiums and 339.10 Notice of servicer’s identity. transportable in one or more sections, fees for your flood insurance escrow account Appendix A to Part 339—Sample Form of that is built on a permanent chassis and with your mortgage loan payment following Notice of Special Flood Hazards and this renewal date for the next policy term. Availability of Federal Disaster Relief designed for use with or without a For example, if your flood insurance policy Assistance permanent foundation when attached to renewal date is September 15 and your next Appendix B to Part 339—Sample Form of the required utilities. The term mobile mortgage loan payment is October 1, the bank Notice of Requirement to Escrow for home does not include a recreational will begin collecting the flood insurance Outstanding Loans vehicle. For purposes of this part, the premiums and fees for escrow with the Appendix C to Part 339—Sample Escrow term mobile home means a mobile home October 1 mortgage loan payment. Requirement Clause for Loans that on a permanent foundation. The term The escrow amount for flood insurance Become Designated Loans will be added to your existing periodic mobile home includes a manufactured mortgage payment. The payments you make Authority: 12 U.S.C. 1462, 1462a, 1463, home as that term is used in the NFIP. into the escrow account will accumulate over 1464, 1819 (Tenth), 5412(b)(2)(C) and 42 (h) NFIP means the National Flood time and the funds will be used to pay your U.S.C. 4012a, 4104a, 4104b, 4106, and 4128. Insurance Program authorized under the flood insurance policy at the next policy Act. renewal date. § 339.1 Authority, purpose, and scope. (i) Private flood insurance means an Any questions regarding this new escrow (a) Authority. This part is issued insurance policy that: requirement should be directed to [Insert pursuant to 12 U.S.C. 1462a, 1463, 1464, (1) Is issued by an insurance company Name of Lender or Servicer] at [Insert 1819 (Tenth), 5412(b)(2)(C) and 42 that is Contact Information]. U.S.C. 4012a, 4104a, 4104b, 4106, and (A) Licensed, admitted, or otherwise APPENDIX C TO § 208.25—SAMPLE 4128. approved to engage in the business of ESCROW REQUIREMENT CLAUSE (b) Purpose. The purpose of this part insurance in the State or jurisdiction in FOR LOANS THAT BECOME is to implement the requirements of the which the insured building is located, DESIGNATED LOANS National Flood Insurance Act of 1968 by the insurance regulator of that State and the Flood Disaster Protection Act of or jurisdiction; or Escrow Requirement Clause 1973, as amended (42 U.S.C. 4001– (B) In the case of a policy of difference Federal law requires a lender or its servicer 4129). in conditions, multiple peril, all risk, or to escrow all premiums and fees for flood (c) Scope. This part, except for other blanket coverage insuring insurance that covers any residential §§ 339.6 and 339.8, applies to loans nonresidential commercial policy, is building or mobile home securing a loan that secured by buildings or mobile homes recognized, or not disapproved, as a is located in an area with special flood located or to be located in areas surplus lines insurer by the insurance hazards. You must make payments of these determined by the Administrator of the regulator of the State where the property premiums and fees to [Insert Name of Lender or Servicer] with the same frequency as your Federal Emergency Management Agency to be insured is located; loan payments for the duration of your loan. to have special flood hazards. Sections (2) Provides flood insurance coverage Your payments will be deposited in an 339.6 and 339.8 apply to loans secured that is at least as broad as the coverage escrow account on your behalf to be paid to by buildings or mobile homes, provided under a standard flood the flood insurance provider. Upon receipt of regardless of location. insurance policy under the NFIP, a notice from the flood insurance provider including when considering that the flood insurance premium is due, § 339.2 Definitions. deductibles, exclusions, and conditions [Insert Name of Lender or Servicer] will pay (a) Act means the National Flood offered by the insurer; the premium from the escrow account to the Insurance Act of 1968, as amended (42 (3) Includes all of the following: insurance provider. U.S.C. 4001–4129). (A) A requirement for the insurer to Federal Deposit Insurance Corporation (b) Administrator of FEMA means the give 45 days’ written notice of Administrator of the Federal Emergency cancellation or non-renewal of flood 12 CFR CHAPTER III Management Agency. insurance coverage to the insured and Authority and Issuance (c) Building means a walled and the FDIC-supervised institution; roofed structure, other than a gas or For the reasons set forth in the joint (B) Information about the availability liquid storage tank, that is principally preamble, the Board of Directors of the of flood insurance coverage under the above ground and affixed to a FDIC proposes to amend chapter III of NFIP; permanent site, and a walled and roofed (C) A mortgage interest clause similar title 12 of the Code of Federal structure while in the course of to the clause contained in a standard Regulations to read as follows: construction, alteration, or repair. ■ 1. Part 339 is revised to read as flood insurance policy under the NFIP; (d) Community means a State or a follows: and political subdivision of a State that has (D) A provision requiring an insured PART 339—LOANS IN AREAS HAVING zoning and building code jurisdiction to file suit not later than one year after SPECIAL FLOOD HAZARDS over a particular area having special the date of a written denial of all or part flood hazards. of a claim under the policy; and Sec. (e) Designated loan means a loan (4) Contains cancellation provisions 339.1 Authority, purpose, and scope. secured by a building or mobile home that are as restrictive as the provisions 339.2 Definitions. that is located or to be located in a contained in a standard flood insurance 339.3 Requirement to purchase flood special flood hazard area in which flood policy under the NFIP. insurance where available. insurance is available under the Act. (j) Residential improved real estate 339.4 Exemptions. 339.5 Escrow requirement. (f) FDIC-supervised institution means means real estate upon which a home or 339.6 Required use of standard flood hazard any insured depository institution for other residential building is located or determination form. which the Federal Deposit Insurance to be located. 339.7 Force-placement of flood insurance. Corporation is the appropriate Federal (k) Servicer means the person 339.8 Determination fees. banking agency pursuant to section 3(g) responsible for:

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(1) Receiving any scheduled, periodic § 339.4 Exemptions. the first loan payment after the flood payments from a borrower under the The flood insurance requirement insurance policy is established. terms of a loan, including amounts for prescribed by § 339.3 does not apply (3) Escrow account. The FDIC- taxes, insurance premiums, and other with respect to: supervised institution, or a servicer charges with respect to the property (a) Any state-owned property covered acting on its behalf, shall deposit the securing the loan; and under a policy of self-insurance flood insurance premiums and fees on (2) Making payments of principal and satisfactory to the Administrator of behalf of the borrower in an escrow interest and any other payments from FEMA, who publishes and periodically account. This escrow account will be the amounts received from the borrower revises the list of states falling within subject to escrow requirements adopted as may be required under the terms of this exemption; or pursuant to section 10 of the Real Estate (b) Property securing any loan with an the loan. Settlement Procedures Act of 1974 (12 original principal balance of $5,000 or U.S.C. 2609) (RESPA), which generally (l) Special flood hazard area means less and a repayment term of one year limits the amount that may be the land in the flood plain within a or less. maintained in escrow accounts for community having at least a one percent certain types of loans and requires § 339.5 Escrow requirement. chance of flooding in any given year, as escrow account statements for those designated by the Administrator of (a) In general. (1) Applicability. accounts, only if the loan is otherwise FEMA. Except as provided in paragraph (c) of subject to RESPA. Following receipt of this section, an FDIC-supervised (m) Table funding means a settlement a notice from the Administrator of institution, or a servicer acting on its at which a loan is funded by a FEMA or other provider of flood behalf, shall require the escrow of all contemporaneous advance of loan funds insurance that premiums are due, the premiums and fees for any flood and an assignment of the loan to the FDIC-supervised institution, or a insurance required under § 339.3(a) for person advancing the funds. servicer acting on its behalf, shall pay any loan secured by residential the amount owed to the insurance § 339.3 Requirement to purchase flood improved real estate or a mobile home provider from the escrow account by the insurance where available. that is outstanding or entered into on or date when such premiums are due. after July 6, 2014, payable with the same (b) Notice. An FDIC-supervised (a) In general. An FDIC-supervised frequency as payments on the loan are institution shall not make, increase, institution that is required to comply made for the duration of the loan, unless with paragraph (a) of this section, or a extend, or renew any designated loan the FDIC-supervised institution has unless the building or mobile home and servicer acting on its behalf, shall mail determined that: or deliver a written notice informing the any personal property securing the loan (i) The loan is an extension of credit borrower that the FDIC-supervised is covered by flood insurance for the primarily for business, commercial, or institution is required to escrow all term of the loan. The amount of agricultural purposes; or premiums and fees for required flood insurance must be at least equal to the (ii) The borrower has obtained flood insurance: lesser of the outstanding principal insurance coverage that meets the balance of the designated loan or the requirements of § 339.3(a) for the (1) For loans subject to paragraphs maximum limit of coverage available for residential improved real estate or (a)(2)(i), (c)(2)(i), or (d) of this section, the particular type of property under the mobile home securing the loan and is at least 90 days before the escrow of Act. Flood insurance coverage under the currently paying premiums and fees premiums and fees under paragraphs Act is limited to the building or mobile through an escrow account established (a)(2)(i), (c)(2)(i), or (d), using language home and any personal property that by another lender; or that is substantially similar to the model secures a loan and not the land itself. (iii) Flood insurance coverage for the form in appendix B; or (2) For loans subject to paragraphs (b) Table funded loans. An FDIC- residential improved real estate or (a)(2)(ii) or (c)(2)(ii) of this section, with supervised institution that acquires a mobile home is provided by a policy the notice provided under § 339.9, using loan from a mortgage broker or other that is purchased by a common interest language that is substantially similar to entity through table funding shall be community instead of the borrower, model clauses on the escrow considered to be making a loan for the such as an NFIP Residential requirement in appendix A; or purpose of this part. Condominium Building Association Policy (RCBAP), that meets the (3) For loans subject to paragraphs (c) Private flood insurance. (1) (a)(2)(iii) or (c)(2)(iii) of this section, Mandatory acceptance. An FDIC- requirements of § 339.3(a). (2) Timing. An FDIC-supervised with the notice provided under § 339.7, supervised institution must accept institution that is subject to paragraph using language that is substantially private flood insurance, as defined in (a) of this section, other than due to a similar to model clauses on the escrow § 339.2(i), as satisfaction of the flood change in status under paragraph (c)(2) requirement in appendix C. insurance coverage requirement, of this section or for acquired loans (c) Exception. provided that coverage under the flood subject to paragraph (d) of this section, (1) Qualification. Except as may be insurance policy meets the requirement shall begin escrowing premiums and required under applicable State law, for coverage under paragraph (a) of this fees for flood insurance: paragraphs (a)(1) and (2) of this section section. (i) For any designated loan do not apply to an FDIC-supervised (2) Safe harbor. A flood insurance outstanding on July 6, 2014, with the institution: policy shall be deemed to meet the first loan payment on or after the first (i) That has total assets of less than $1 definition of private flood insurance in renewal date of the borrower’s flood billion as of December 31 of either of the § 339.2(i) for purposes of paragraph (a) insurance policy on or after July 6, 2014; two prior calendar years; and of this section if a State insurance (ii) For any designated loan made on (ii) On or before July 6, 2012: regulator makes a determination in or after July 6, 2014, upon loan (A) Was not required under Federal or writing that the policy meets the consummation; or State law to deposit taxes, insurance definition of private flood insurance in (iii) For any loan that becomes a premiums, fees, or any other charges in § 339.2(i). designated loan after July 6, 2014, with an escrow account for the entire term of

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a loan secured by residential improved determination form from FEMA’s Web (2) Sufficiency of demonstration. For real estate or a mobile home; and site at www.fema.gov. purposes of confirming a borrower’s (B) Did not have a policy of (b) Retention of form. An FDIC- existing flood insurance coverage under consistently and uniformly requiring the supervised institution shall retain a paragraph (b) of this section, an FDIC- deposit of taxes, insurance premiums, copy of the completed standard flood supervised institution or its servicer fees, or any other charges in an escrow hazard determination form, in either shall accept from the borrower an account for loans secured by residential hard copy or electronic form, for the insurance policy declarations page that improved real estate or a mobile home. period of time the FDIC-supervised includes the existing flood insurance (2) Change in status. If an FDIC- institution owns the loan. policy number and the identity of, and supervised institution previously § 339.7 Force-placement of flood contact information for, the insurance qualified for the exception in paragraph insurance. company or agent. § 339.5(c)(1), but no longer qualifies for (a) Notice and purchase of coverage. § 339.8 Determination fees. the exception because it had assets of $1 If an FDIC-supervised institution, or a (a) General. Notwithstanding any billion or more for two consecutive servicer acting on its behalf, determines calendar year ends, the FDIC-supervised Federal or State law other than the at any time during the term of a Flood Disaster Protection Act of 1973, as institution must begin escrowing designated loan, that the building or premiums and fees for flood insurance amended (42 U.S.C. 4001–4129), any mobile home and any personal property FDIC-supervised institution, or a pursuant to § 339.3(a): securing the designated loan is not (i) For any designated loan servicer acting on its behalf, may charge covered by flood insurance or is covered a reasonable fee for determining outstanding on July 1 of the succeeding by flood insurance in an amount less calendar year, with the first loan whether the building or mobile home than the amount required under § 339.3, securing the loan is located or will be payment on or after the first renewal then the FDIC-supervised institution or date of the borrower’s flood insurance located in a special flood hazard area. A its servicer shall notify the borrower determination fee may also include, but policy on or after July 1 of the that the borrower should obtain flood succeeding calendar year; or is not limited to, a fee for life-of-loan insurance, at the borrower’s expense, in monitoring. (ii) For any designated loan made on an amount at least equal to the amount (b) Borrower fee. The determination or after July 1 of the succeeding required under § 339.3, for the fee authorized by paragraph (a) of this calendar year, upon loan remaining term of the loan. If the section may be charged to the borrower consummation; or borrower fails to obtain flood insurance if the determination: (iii) For any loan that becomes a within 45 days after notification, then (1) Is made in connection with a designated loan after July 1 of the the FDIC-supervised institution or its making, increasing, extending, or succeeding calendar year, with the first servicer shall purchase insurance on the renewing of the loan that is initiated by loan payment after the flood insurance borrower’s behalf. The FDIC-supervised the borrower; policy is established. institution or its servicer may charge the (2) Reflects the Administrator of (d) Change in ownership. If an FDIC- borrower for the cost of premiums and FEMA’s revision or updating of supervised institution that is required to fees incurred in purchasing the floodplain areas or flood-risk zones; comply with paragraph (a) of this insurance, including premiums or fees (3) Reflects the Administrator of section acquires a designated loan incurred for coverage beginning on the FEMA’s publication of a notice or covered by flood insurance required date on which flood insurance coverage compendium that: under § 339.3(a) that becomes subject to lapsed or did not provide a sufficient (i) Affects the area in which the paragraph (a) of this section as a result coverage amount. building or mobile home securing the of the FDIC-supervised institution’s (b) Termination of force-placed loan is located; or acquisition of the loan, the FDIC- insurance. (1) Termination and refund. (ii) By determination of the supervised institution must begin Within 30 days of receipt by an FDIC- Administrator of FEMA, may reasonably escrowing premiums and fees for flood supervised institution, or a servicer require a determination whether the insurance pursuant to paragraph (a) of acting on its behalf, of a confirmation of building or mobile home securing the this section with the first loan payment a borrower’s existing flood insurance loan is located in a special flood hazard on or after the first renewal date of the coverage, the FDIC-supervised area; or borrower’s flood insurance policy on or institution or its servicer shall: (4) Results in the purchase of flood after the date that is six months from the (A) Notify the insurance provider to insurance coverage by the lender or its transfer date of the loan. terminate any insurance purchased by servicer on behalf of the borrower under the FDIC-supervised institution or its § 339.7. § 339.6 Required use of standard flood servicer under paragraph (a) of this hazard determination form. (c) Purchaser or transferee fee. The section; and determination fee authorized by (a) Use of form. An FDIC-supervised (B) Refund to the borrower all paragraph (a) of this section may be institution shall use the standard flood premiums paid by the borrower for any charged to the purchaser or transferee of hazard determination form developed insurance purchased by the FDIC- a loan in the case of the sale or transfer by the Administrator of FEMA when supervised institution or its servicer of the loan. determining whether the building or under paragraph (a) of this section mobile home offered as collateral during any period during which the § 339.9 Notice of special flood hazards and security for a loan is or will be located borrower’s flood insurance coverage and availability of Federal disaster relief in a special flood hazard area in which the insurance coverage purchased by the assistance. flood insurance is available under the FDIC-supervised institution or its (a) Notice requirement. When an Act. The standard flood hazard servicer were each in effect, and any FDIC-supervised institution makes, determination form may be used in a related fees charged to the borrower increases, extends, or renews a loan printed, computerized, or electronic with respect to the insurance purchased secured by a building or a mobile home manner. An FDIC-supervised institution by the FDIC-supervised institution or its located or to be located in a special may obtain the standard flood hazard servicer during such period. flood hazard area, the FDIC-supervised

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institution shall mail or deliver a period of time the FDIC-supervised Appendix A to Part 339—Sample Form written notice to the borrower and to the institution owns the loan. of Notice of Special Flood Hazards and servicer in all cases whether or not flood (e) Alternate method of notice. Instead Availability of Federal Disaster Relief insurance is available under the Act for of providing the notice to the borrower Assistance the collateral securing the loan. required by paragraph (a) of this section, We are giving you this notice to inform you (b) Contents of notice. The written an FDIC-supervised institution may that: notice must include the following obtain satisfactory written assurance The building or mobile home securing the information: loan for which you have applied is or will from a seller or lessor that, within a (1) A warning, in a form approved by be located in an area with special flood reasonable time before the completion the Administrator of FEMA, that the hazards. building or the mobile home is or will of the sale or lease transaction, the seller The area has been identified by the or lessor has provided such notice to the Administrator of the Federal Emergency be located in a special flood hazard area; Management Agency (FEMA) as a special (2) A description of the flood purchaser or lessee. The FDIC- supervised institution shall retain a flood hazard area using FEMA’s Flood insurance purchase requirements set Insurance Rate Map or the Flood Hazard forth in section 102(b) of the Flood record of the written assurance from the Boundary Map for the following community: Disaster Protection Act of 1973, as seller or lessor for the period of time the llll. This area has a one percent (1%) amended (42 U.S.C. 4012a(b)); FDIC-supervised institution owns the chance of a flood equal to or exceeding the (3) A statement, where applicable, loan. base flood elevation (a 100-year flood) in any that flood insurance coverage is given year. During the life of a 30-year (f) Use of prescribed form of notice. mortgage loan, the risk of a 100-year flood in available from private insurance An FDIC-supervised institution will be a special flood hazard area is 26 percent companies that issue flood insurance considered to be in compliance with the (26%). policies on behalf of the NFIP or requirement for notice to the borrower Federal law allows a lender and borrower directly from the NFIP; of this section by providing written jointly to request the Administrator of FEMA (4) A statement that flood insurance notice to the borrower containing the to review the determination of whether the that provides the same level of coverage property securing the loan is located in a language presented in appendix A to special flood hazard area. If you would like as a standard flood insurance policy this part within a reasonable time before under the NFIP may also be available to make such a request, please contact us for the completion of the transaction. The further information. from a private insurance company that notice presented in appendix A to this l The community in which the property issues policies on behalf of the part satisfies the borrower notice securing the loan is located participates in company. requirements of the Act. the National Flood Insurance Program (5) A statement that the borrower is (NFIP). Federal law will not allow us to make encouraged to compare the flood § 339.10 Notice of servicer’s identity. you the loan that you have applied for if you insurance coverage, deductibles, do not purchase flood insurance. The flood exclusions, conditions and premiums (a) Notice requirement. When an insurance must be maintained for the life of the loan. If you fail to purchase or renew associated with flood insurance policies FDIC-supervised institution makes, increases, extends, renews, sells, or flood insurance on the property, Federal law issued on behalf of the NFIP and authorizes and requires us to purchase the policies issued on behalf of private transfers a loan secured by a building or flood insurance for you at your expense. insurance companies and that the mobile home located or to be located in • At a minimum, flood insurance borrower should direct inquiries a special flood hazard area, the FDIC- purchased must cover the lesser of: regarding the availability, cost, and supervised institution shall notify the (1) the outstanding principal balance of the comparisons of flood insurance Administrator of FEMA (or the loan; or coverage to an insurance agent; and Administrator of FEMA’s designee) in (2) the maximum amount of coverage allowed for the type of property under the (6) A statement whether Federal writing of the identity of the servicer of NFIP. disaster relief assistance may be the loan. The Administrator of FEMA Flood insurance coverage under the NFIP available in the event of damage to the has designated the insurance provider to is limited to the building or mobile home and building or mobile home caused by receive the FDIC-supervised any personal property that secures your loan flooding in a Federally-declared institution’s notice of the servicer’s and not the land itself. • disaster. identity. This notice may be provided Federal disaster relief assistance (usually in the form of a low-interest loan) may be (c) Timing of notice. The FDIC- electronically if electronic transmission supervised institution shall provide the available for damages incurred in excess of is satisfactory to the Administrator of your flood insurance if your community’s notice required by paragraph (a) of this FEMA’s designee. participation in the NFIP is in accordance section to the borrower within a with NFIP requirements. reasonable time before the completion (b) Transfer of servicing rights. The FDIC-supervised institution shall notify Availability of Private Flood Insurance of the transaction, and to the servicer as Coverage promptly as practicable after the FDIC- the Administrator of FEMA (or the supervised institution provides notice to Administrator of FEMA’s designee) of Flood insurance coverage under the NFIP may be purchased through an insurance the borrower and in any event no later any change in the servicer of a loan described in paragraph (a) of this agent who will obtain the policy either than the time the FDIC-supervised directly through the NFIP or through an institution provides other similar section within 60 days after the effective insurance company that participates in the notices to the servicer concerning date of the change. This notice may be NFIP. Flood insurance that provides the same hazard insurance and taxes. Notice to provided electronically if electronic level of coverage as a standard flood the servicer may be made electronically transmission is satisfactory to the insurance policy under the NFIP may be or may take the form of a copy of the Administrator or his or her designee. available from private insurers that do not notice to the borrower. Upon any change in the servicing of a participate in the NFIP. You should compare the flood insurance coverage, deductibles, (d) Record of receipt. The FDIC- loan described in paragraph (a) of this exclusions, conditions and premiums supervised institution shall retain a section, the duty to provide notice associated with flood insurance policies record of the receipt of the notices by under this paragraph (b) shall transfer to issued on behalf of the NFIP and policies the borrower and the servicer for the the transferee servicer. issued on behalf of private insurance

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companies and ask an insurance agent as to flood insurance policy at the next policy Subpart S—Flood Insurance the availability, cost, and comparisons of renewal date. Requirements flood insurance coverage. Any questions regarding this new escrow [Escrow Requirement for Residential Loans requirement should be directed to [Insert Sec. Name of Lender or Servicer] at [Insert 614.4920 Purpose and scope. Federal law requires a lender or its servicer Contact Information]. 614.4925 Definitions. to escrow all premiums and fees for flood Appendix C to Part 339—Sample 614.4930 Requirement to purchase flood insurance that covers any residential insurance where available. building or mobile home securing a loan that Escrow Requirement Clause for Loans 614.4935 Escrow requirement. is located in an area with special flood that Become Designated Loans 614.4940 Required use of standard flood hazards. These premiums and fees must be Escrow Requirement Clause hazard determination form. paid to the lender or its servicer with the 614.4945 Force placement of flood Federal law requires a lender or its servicer same frequency as your loan payments for insurance. to escrow all premiums and fees for flood the duration of your loan and will be 614.4950 Determination fees. insurance that covers any residential deposited in an escrow account on your 614.4955 Notice of special flood hazards building or mobile home securing a loan that behalf to be paid to the flood insurance and availability of Federal disaster relief is located in an area with special flood provider. Upon receipt of a notice from the assistance. hazards. You must make payments of these flood insurance provider that the premiums 614.4960 Notice of servicer’s identity. are due, the premiums shall be paid from the premiums and fees to [Insert Name of Lender or Servicer] with the same frequency as your Appendix A to Subpart S of Part escrow account to the insurance provider.] 614—Sample Form of Notice of Special lFlood insurance coverage under the loan payments for the duration of your loan. NFIP is not available for the property Your payments will be deposited in an Flood Hazards and Availability of securing the loan because the community in escrow account on your behalf to be paid to Federal Disaster Relief Assistance which the property is located does not the flood insurance provider. Upon receipt of Appendix B to Subpart S of Part participate in the NFIP. In addition, if the a notice from the flood insurance provider 614—Sample Form of Notice of non-participating community has been that the flood insurance premium is due, Requirement to Escrow for Outstanding identified for at least one year as containing [Insert Name of Lender or Servicer] will pay Loans a special flood hazard area, properties the premium from the escrow account to the Appendix C to Subpart S of Part insurance provider. located in the community will not be eligible 614—Sample Escrow Requirement for Federal disaster relief assistance in the Clause for Loans that Become event of a Federally-declared flood disaster. PART 391—FORMER OFFICE OF THRIFT SUPERVISION REGULATIONS Designated Loans Appendix B to Part 339—Sample Form ■ 2. The authority citation for Part 391 Subpart S—Flood Insurance of Notice of Requirement to Escrow for continues to read as follows: Requirements Outstanding Loans Authority: 12 U.S.C. 1819. § 614.4920 Purpose and scope. Notice of Escrow Requirement (a) Purpose. This subpart implements We are giving you this notice to inform you Subpart D—[Removed and Reserved] the requirements of the National Flood that Federal law requires a lender or its ■ 3. Remove and reserve Subpart D servicer to escrow all premiums and fees for Insurance Act of 1968 and the Flood flood insurance that covers the building or consisting of §§ 391.30 through 391.39. Disaster Protection Act of 1973, as mobile home securing your loan(s). Farm Credit Administration amended (42 U.S.C. 4001–4129). (b) Scope. This subpart, except for How the Escrow Will Work 12 CFR CHAPTER VI §§ 614.4940 and 614.4950, applies to Federal law requires that you pay flood Authority and Issuance loans secured by buildings or mobile insurance premiums and fees with the same homes located or to be located in areas frequency as your loan payments for the For the reasons stated in the determined by the Administrator of the duration of your loan. Your payments will be preamble, part 614 of chapter VI, title 12 deposited in an escrow account so that when Federal Emergency Management Agency of the Code of Federal Regulations is to have special flood hazards. Sections we receive a notice from your flood proposed to be amended as follows: insurance provider that your flood insurance 614.4940 and 614.4950 apply to loans premiums are due, we will make payment PART 614—LOAN POLICIES AND secured by buildings or mobile homes, from the escrow account to the insurance OPERATIONS regardless of location. provider on your behalf. ■ § 614.4925 Definitions. When the Escrow Will Start 1. The authority citation for part 614 continues to read as follows: For the purposes of this subpart: When you receive your next flood (a) 1968 Act means the National Flood insurance bill with the renewal of your Authority: 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128; secs. 1.3, 1.5, 1.6, 1.7, 1.9, Insurance Act of 1968, as amended (42 policy from your flood insurance provider, U.S.C. 4001–4129). you are responsible for making that payment 1.10, 2.0, 2.2, 2.3, 2.4, 2.10, 2.12, 2.13, 2.15, directly to your insurance provider. 3.0, 3.1, 3.3, 3.7, 3.8, 3.10, 3.20, 3.28, 4.12, (b) Administrator of FEMA means the We will begin collecting the premiums and 4.12A, 4.13, 4.13B, 4.14, 4.14A, 4.14C, 4.14D, Administrator of the Federal Emergency fees for your flood insurance escrow account 4.14E, 4.18, 4.19, 4.36, 4.37, 5.9, 5.10, 5.17, Management Agency. with your mortgage loan payment following 7.0, 7.2, 7.6, 7.7, 7.8, 7.12, 7.13, 8.0, 8.5 of (c) Building means a walled and this renewal date for the next policy term. the Farm Credit Act (12 U.S.C. 2011, 2013, roofed structure, other than a gas or For example, if your flood insurance policy 2014, 2015, 2017, 2018, 2071, 2073, 2074, liquid storage tank, that is principally renewal date is September 15 and your next 2075, 2091, 2093, 2094, 2096, 2121, 2122, above ground and affixed to a 2124, 2128, 2129, 2131, 2141, 2149, 2183, mortgage loan payment is October 1, the bank permanent site, and a walled and roofed will begin collecting the flood insurance 2184, 2199, 2201, 2202, 2202a, 2202c, 2202d, 2202e, 2206, 2207, 2219a, 2219b, 2243, 2244, structure while in the course of premiums and fees for escrow with the construction, alteration, or repair. October 1 mortgage loan payment. 2252, 2279a, 2279a–2, 2279b, 2279b–1, The escrow amount for flood insurance 2279b–2, 2279f, 2279f–1, 2279aa, 2279aa–5); (d) Community means a state or a will be added to your existing periodic sec. 413 of Pub. L. 100–233, 101 Stat. 1568, political subdivision of a State that has mortgage payment. The payments you make 1639. zoning and building code jurisdiction into the escrow account will accumulate over ■ 2. Part 614 is amended by revising over a particular area having special time and the funds will be used to pay your subpart S to read as follows: flood hazards.

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(e) Designated loan means a loan other residential building is located or regulator makes a determination in secured by a building or mobile home to be located. writing that the policy meets the that is located or to be located in a (k) Servicer means the person definition of private flood insurance in special flood hazard area in which flood responsible for: § 614.4925. insurance is available under the 1968 (1) Receiving any scheduled, periodic (d) The flood insurance requirement Act. payments from a borrower under the of paragraph (a) of this section does not (f) Mobile home means a structure, terms of a loan, including amounts for apply with respect to: transportable in one or more sections, taxes, insurance premiums, and other (1) Any State-owned property covered that is built on a permanent chassis and charges with respect to the property under a policy of self-insurance designed for use with or without a securing the loan; and satisfactory to the Administrator of permanent foundation when attached to (2) Making payments of principal and FEMA, who publishes and periodically the required utilities. The term mobile interest and any other payments from revises the list of States falling within home does not include a recreational the amounts received from the borrower this exemption; or vehicle. For purposes of this part, the as may be required under the terms of (2) Property securing any loan with an term mobile home means a mobile home the loan. original principal balance of $5,000 or on a permanent foundation. The term (l) Special flood hazard area means less and a repayment term of 1 year or mobile home includes a manufactured the land in the flood plain within a less. home as that term is used in the NFIP. community having at least a one percent (h) NFIP means the National Flood chance of flooding in any given year, as § 614.4935 Escrow requirement. Insurance Program authorized under the designated by the Administrator of (a) In general. 1968 Act. FEMA. (i) Private flood insurance means an (m) Table funding means a settlement (1) Applicability. Except as provided insurance policy that: at which a loan is funded by a in paragraph (c) of this section, a System (1) Is issued by an insurance company contemporaneous advance of loan funds institution, or a servicer acting on its that is and an assignment of the loan to the behalf, shall require the escrow of all (i) Licensed, admitted, or otherwise person advancing the funds. premiums and fees for any flood approved to engage in the business of insurance required under § 614.4930(a) insurance in the State or jurisdiction in § 614.4930 Requirement to purchase flood for any loan secured by residential insurance where available. which the insured building is located, improved real estate or a mobile home by the insurance regulator of that State (a) In general. A System institution that is outstanding or entered into on or or jurisdiction; or shall not make, increase, extend, or after July 6, 2014, payable with the same (ii) In the case of a policy of difference renew any designated loan unless the frequency as payments on the loan are in conditions, multiple peril, all risk, or building or mobile home and any made for the duration of the loan, unless other blanket coverage insuring personal property securing the loan is the System institution has determined nonresidential commercial policy, is covered by flood insurance purchased that: recognized, or not disapproved, as a under the NFIP or private flood (i) The loan is an extension of credit surplus lines insurer by the insurance insurance, as that term is defined in primarily for business, commercial, or regulator of the State where the property § 614.4925, for the term of the loan. The agricultural purposes; or to be insured is located; amount of insurance must be at least (ii) The borrower has obtained flood (2) Provides flood insurance coverage equal to the lesser of the outstanding insurance coverage that meets the that is at least as broad as the coverage principal balance of the designated loan requirement of § 614.4930(a) for the provided under a standard flood or the maximum limit of coverage residential improved real estate or insurance policy under the NFIP, available for the particular type of mobile home securing the loan and is including when considering property under the 1968 Act. Flood currently paying premiums and fees deductibles, exclusions, and conditions insurance coverage under the 1968 Act through an escrow account established offered by the insurer; is limited to the building or mobile by another lender; or home and any personal property that (3) Includes all of the following: (iii) Flood insurance coverage for the (i) A requirement for the insurer to secures a loan and not the land itself. residential improved real estate or give 45 days’ written notice of (b) Table funded loans. A System mobile home is provided by a policy cancellation or non-renewal of flood institution that acquires a loan from a that is purchased by a common interest insurance coverage to the insured and mortgage broker or other entity through community instead of the borrower, the System institution; table funding shall be considered to be such as an NFIP Residential (ii) Information about the availability making a loan for the purpose of this Condominium Building Association of flood insurance coverage under the subpart. Policy (RCBAP), that meets the NFIP; (c) Private flood insurance. (iii) A mortgage interest clause similar (1) Mandatory acceptance. A System requirements of § 614.4930(a). to the clause contained in a standard institution must accept private flood (2) Timing. A System institution that flood insurance policy under the NFIP; insurance, as defined in § 614.4925, as is subject to paragraph (a) of this and satisfaction of the flood insurance section, other than due to a change in (iv) A provision requiring an insured coverage requirement, provided that status under paragraph (c)(2) of this to file suit not later than one year after coverage under the flood insurance section or for acquired loans subject to the date of a written denial of all or part policy meets the requirement for paragraph (d) of this section, shall begin of a claim under the policy; and coverage under paragraph (a) of this escrowing premiums and fees for flood (4) Contains cancellation provisions section. insurance: that are as restrictive as the provisions (2) Safe harbor. A flood insurance (i) For any designated loan contained in a standard flood insurance policy shall be deemed to meet the outstanding on July 6, 2014, with the policy under the NFIP. definition of private flood insurance in first loan payment on or after the first (j) Residential improved real estate § 614.4925 for purposes of paragraph (a) renewal date of the borrower’s flood means real estate upon which a home or of this section if a State insurance insurance policy on or after July 6, 2014;

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(ii) For any designated loan made on (A) Was not required under Federal or manner. A System institution may or after July 6, 2014, upon loan State law to deposit taxes, insurance obtain the standard flood hazard consummation; or premiums, fees, or any other charges in determination form from FEMA’s Web (iii) For any loan that becomes a an escrow account for the entire term of site at www.fema.gov. designated loan after July 6, 2014, with a loan secured by residential improved (b) Retention of form. A System the first loan payment after the flood real estate or a mobile home; and institution shall retain a copy of the insurance policy is established. (B) Did not have a policy of completed standard flood hazard (3) Escrow account. The System consistently and uniformly requiring the determination form, in either hard copy institution, or a servicer acting on its deposit of taxes, insurance premiums, or electronic form, for the period of time behalf, shall deposit the flood insurance fees, or any other charges in an escrow the System institution owns the loan. premiums and fees on behalf of the account for loans secured by residential improved real estate or a mobile home. § 614.4945 Force-placement of flood borrower in an escrow account. This insurance. escrow account will be subject to (2) Change in status. If a System (a) Notice and purchase of coverage. escrow requirements adopted pursuant institution previously qualified for the If a System institution, or a servicer to section 10 of the Real Estate exception in § 614.4935(c)(1), but no acting on its behalf, determines, at any Settlement Procedures Act of 1974 (12 longer qualifies for the exception time during the term of a designated U.S.C. 2609) (RESPA), which generally because it had assets of $1 billion or loan, that the building or mobile home limits the amount that may be more for 2 consecutive calendar year and any personal property securing the maintained in escrow accounts for ends, the System institution must begin designated loan is not covered by flood certain types of loans and requires escrowing premiums and fees for flood insurance or is covered by flood escrow account statements for those insurance pursuant to § 614.4930(a): insurance in an amount less than the accounts, only if the loan is otherwise (i) For any designated loan amount required under § 614.4930, then subject to RESPA. Following receipt of outstanding on July 1 of the succeeding the System institution or its servicer a notice from the Administrator of calendar year, with the first loan shall notify the borrower that the FEMA or other provider of flood payment on or after the first renewal borrower should obtain flood insurance, insurance that premiums are due, the date of the borrower’s flood insurance at the borrower’s expense, in an amount System institution, or a servicer acting policy on or after July 1 of the at least equal to the amount required on its behalf, shall pay the amount owed succeeding calendar year; or under § 614.4930, for the remaining to the insurance provider from the (ii) For any designated loan made on term of the loan. If the borrower fails to escrow account by the date when such or after July 1 of the succeeding obtain flood insurance within 45 days premiums are due. calendar year, upon loan consummation; or after notification, then the System (b) Notice. A System institution that is institution or its servicer shall purchase required to comply with paragraph (a) of (iii) For any loan that becomes a designated loan after July 1 of the insurance on the borrower’s behalf. The this section, or a servicer acting on its System institution or its servicer may behalf, shall mail or deliver a written succeeding calendar year, with the first loan payment after the flood insurance charge the borrower for the cost of notice informing the borrower that the premiums and fees incurred in System institution is required to escrow policy is established. (d) Change in ownership. If a System purchasing the insurance, including all premiums and fees for required flood institution that is required to comply premiums or fees incurred for coverage insurance: with paragraph (a) of this section beginning on the date on which flood (1) For loans subject to paragraph acquires a designated loan covered by insurance coverage lapsed or did not (a)(2)(i) or (c)(2)(i) or (d) of this section, flood insurance required under provide a sufficient coverage amount. at least 90 days before the escrow of § 614.4930(a) that becomes subject to (b) Termination of force-placed premiums and fees under paragraph paragraph (a) of this section as a result insurance. (1) Termination and refund. (a)(2)(i) or (c)(2)(i) or (d), using language of the System institution’s acquisition of Within 30 days of receipt by a System that is substantially similar to the model the loan, the System institution must institution, or its servicer, of a form in Appendix B; or begin escrowing premiums and fees for confirmation of a borrower’s existing (2) For loans subject to paragraph flood insurance pursuant to paragraph flood insurance coverage, the System (a)(2)(ii) or (c)(2)(ii) of this section, with (a) of this section with the first loan institution or its servicer shall: the notice provided under § 614.4945, payment on or after the first renewal (i) Notify the insurance provider to using language that is substantially date of the borrower’s flood insurance terminate any insurance purchased by similar to model clauses on the escrow policy on or after the date that is 6 the System institution or its servicer requirement in Appendix A; or months from the transfer date of the under paragraph (a) of this section; and (3) For loans subject to paragraph loan. (ii) Refund to the borrower all (a)(2)(iii) or (c)(2)(iii) of this section, premiums paid by the borrower for any with the notice provided under § 614.4940 Required use of standard flood insurance purchased by the System § 614.4955, using language that is hazard determination form. institution or its servicer under substantially similar to model clauses (a) Use of form. A System institution paragraph (a) of this section during any on the escrow requirement in Appendix shall use the standard flood hazard period during which the borrower’s C. determination form developed by the flood insurance coverage and the (c) Exception. (1) Qualification. Administrator of FEMA when insurance coverage purchased by the Except as may be required under determining whether the building or System institution or its servicer were applicable State law, paragraph (a)(1) mobile home offered as collateral each in effect, and any related fees and (2) of this section do not apply to security for a loan is or will be located charged to the borrower with respect to a System institution: in a special flood hazard area in which the insurance purchased by the System (i) That has total assets of less than $1 flood insurance is available under the institution or its servicer during such billion as of December 31 of either of the Act. The standard flood hazard period. 2 prior calendar years; and determination form may be used in a (2) Sufficiency of demonstration. For (ii) On or before July 6, 2012: printed, computerized, or electronic purposes of confirming a borrower’s

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existing flood insurance coverage under is required whether or not flood seller or lessor that, within a reasonable paragraph (b) of this section, a System insurance is available under the 1968 time before the completion of the sale or institution or its servicer shall accept Act for the collateral securing the loan. lease transaction, the seller or lessor has from the borrower an insurance policy (b) Contents of notice. The written provided such notice to the purchaser or declarations page that includes the notice must include the following lessee. The System institution shall existing flood insurance policy number information: retain a record of the written assurance and the identity of, and contact (1) A warning, in a form approved by from the seller or lessor for the period information for, the insurance company the Administrator of FEMA, that the of time the System institution owns the or agent. building or the mobile home is or will loan. be located in a special flood hazard area; (f) Use of prescribed form of notice. A § 614.4950 Determination fees. (2) A description of the flood System institution will be considered to (a) General. Notwithstanding any insurance purchase requirements set be in compliance with the requirement federal or state law other than the Flood forth in section 102(b) of the Flood for notice to the borrower of this section Disaster Protection Act of 1973, as Disaster Protection Act of 1973, as by providing written notice to the amended (42 U.S.C. 4001–4129), any amended (42 U.S.C. 4012a(b)); borrower containing the language System institution, or a servicer acting (3) A statement, where applicable, presented in appendix A to this part on its behalf, may charge a reasonable that flood insurance coverage is within a reasonable time before the fee for determining whether the available from private insurance completion of the transaction. The building or mobile home securing the companies that issue flood insurance notice presented in appendix A to this loan is located or will be located in a policies on behalf of the NFIP or part satisfies the borrower notice special flood hazard area. A directly from the NFIP; and requirements of the 1968 Act. determination fee may also include, but (4) A statement that flood insurance § 614.4960 Notice of servicer’s identity. is not limited to, a fee for life-of-loan that provides the same level of coverage monitoring. as a standard flood insurance policy (a) Notice requirement. When a (b) Borrower fee. The determination under the NFIP may be available from System institution makes, increases, fee authorized by paragraph (a) of this a private insurance company that issues extends, renews, sells, or transfers a section may be charged to the borrower policies on behalf of the company. loan secured by a building or mobile if the determination: (5) A statement that the borrower is home located or to be located in a (1) Is made in connection with a encouraged to compare the flood special flood hazard area, the System making, increasing, extending, or insurance coverage, deductibles, institution shall notify the renewing of the loan that is initiated by exclusions, conditions and premiums Administrator of FEMA (or the the borrower; associated with flood insurance policies Administrator of FEMA’s designee) in (2) Reflects the Administrator of issued on behalf of the NFIP and writing of the identity of the servicer of FEMA’s revision or updating of policies issued on behalf of private the loan. The Administrator of FEMA floodplain areas or flood-risk zones; insurance companies and that the has designated the insurance provider to (3) Reflects the Administrator of borrower should direct inquiries receive the System institution’s notice FEMA’s publication of a notice or regarding the availability, cost, and of the servicer’s identity. This notice compendium that: comparisons of flood insurance may be provided electronically if (i) Affects the area in which the coverage to an insurance agent; and electronic transmission is satisfactory to building or mobile home securing the (6) A statement whether federal the Administrator of FEMA’s designee. loan is located; or disaster relief assistance may be (b) Transfer of servicing rights. The (ii) By determination of the available in the event of damage to the System institution shall notify the Administrator of FEMA, may reasonably building or mobile home caused by Administrator of FEMA (or the require a determination whether the flooding in a federally declared disaster. Administrator of FEMA’s designee) of building or mobile home securing the (c) Timing of notice. The System any change in the servicer of a loan loan is located in a special flood hazard institution shall provide the notice described in paragraph (a) of this area; or required by paragraph (a) of this section section within 60 days after the effective (4) Results in the purchase of flood to the borrower within a reasonable time date of the change. This notice may be insurance coverage by the lender or its before the completion of the transaction, provided electronically if electronic servicer on behalf of the borrower under and to the servicer as promptly as transmission is satisfactory to the § 614.4945. practicable after the System institution Administrator of FEMA’s designee. (c) Purchaser or transferee fee. The provides notice to the borrower and in Upon any change in the servicing of a determination fee authorized by any event no later than the time the loan described in paragraph (a) of this paragraph (a) of this section may be System institution provides other section, the duty to provide notice charged to the purchaser or transferee of similar notices to the servicer under this paragraph (b) shall transfer to a loan in the case of the sale or transfer concerning hazard insurance and taxes. the transferee servicer. of the loan. Notice to the servicer may be made Appendix A to Subpart S of Part 614— electronically or may take the form of a § 614.4955 Notice of special flood hazards Sample Form of Notice of Special Flood copy of the notice to the borrower. Hazards and Availability of Federal and availability of Federal disaster relief (d) Record of receipt. The System Disaster Relief Assistance assistance. institution shall retain a record of the (a) Notice requirement. When a receipt of the notices by the borrower We are giving you this notice to inform you System institution makes, increases, and the servicer for the period of time that: extends, or renews a loan secured by a the System institution owns the loan. The building or mobile home securing the building or a mobile home located or to (e) Alternate method of notice. Instead loan for which you have applied is or will be located in an area with special flood be located in a special flood hazard area, of providing the notice to the borrower hazards. the System institution shall mail or required by paragraph (a) of this section, The area has been identified by the deliver a written notice to the borrower a System institution may obtain Administrator of the Federal Emergency and to the servicer of the loan. Notice satisfactory written assurance from a Management Agency (FEMA) as a special

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flood hazard area using FEMA’s Flood [Escrow Requirement for Residential Loans Name of Lender or Servicer] at [Insert Insurance Rate Map or the Flood Hazard Federal law requires a lender or its servicer Contact Information]. Boundary Map for the following community: to escrow all premiums and fees for flood llll. This area has at least a one percent Appendix C to Subpart S of Part 614— insurance that covers any residential Sample Escrow Requirement Clause for (1%) chance of a flood equal to or exceeding building or mobile home securing a loan that the base flood elevation (a 100-year flood) in is located in an area with special flood Loans That Become Designated Loans any given year. During the life of a 30-year hazards. These premiums and fees must be Escrow Requirement Clause mortgage loan, the risk of a 100-year flood in paid to the lender or its servicer with the Federal law requires a lender or its servicer a special flood hazard area is 26 percent same frequency as your loan payments for to escrow all premiums and fees for flood (26%). the duration of your loan and will be insurance that covers any residential Federal law allows a lender and borrower deposited in an escrow account on your building or mobile home securing a loan that jointly to request the Administrator of FEMA behalf to be paid to the flood insurance is located in an area with special flood to review the determination of whether the provider. Upon receipt of a notice from the hazards. You must make payments of these property securing the loan is located in a flood insurance provider that the premiums premiums and fees to [Insert Name of Lender special flood hazard area. If you would like are due, the premiums shall be paid from the or Servicer] with the same frequency as your to make such a request, please contact us for escrow account to the insurance provider.] loan payments for the duration of your loan. further information. l Flood insurance coverage under the Your payments will be deposited in an llll The community in which the NFIP is not available for the property escrow account on your behalf to be paid to property securing the loan is located securing the loan because the community in the flood insurance provider. Upon receipt of participates in the National Flood Insurance which the property is located does not a notice from the flood insurance provider Program (NFIP). Federal law will not allow participate in the NFIP. In addition, if the that the flood insurance premium is due, us to make you the loan that you have non-participating community has been [Insert Name of Lender or Servicer] will pay applied for if you do not purchase flood identified for at least one year as containing the premium from the escrow account to the insurance. The flood insurance must be a special flood hazard area, properties insurance provider. maintained for the life of the loan. If you fail located in the community will not be eligible to purchase or renew flood insurance on the for federal disaster relief assistance in the National Credit Union Administration event of a federally-declared flood disaster. property, federal law authorizes and requires 12 CFR CHAPTER VII us to purchase the flood insurance for you at Appendix B to Subpart S of Part 614— your expense. Authority and Issuance • Sample Form of Notice of Requirement Flood insurance coverage under the to Escrow for Outstanding Loans For the reasons set forth in the joint NFIP may be purchased through an insurance preamble, the NCUA Board proposes to agent who will obtain the policy either Notice of Escrow Requirement revise part 760 of chapter VII of title 12 directly through the NFIP or through an We are giving you this notice to inform you insurance company that participates in the of the Code of Federal Regulations to that Federal law requires a lender or its read as follows: NFIP. Flood insurance also may be available servicer to escrow all premiums and fees for from private insurers that do not participate flood insurance that covers the building or PART 760—LOANS IN AREAS HAVING in the NFIP. mobile home securing your loan(s). • At a minimum, flood insurance SPECIAL FLOOD HAZARDS purchased must cover the lesser of: How the Escrow Will Work (1) the outstanding principal balance of the Federal law requires that you pay flood Sec. loan; or insurance premiums and fees with the same 760.1 Authority, purpose, and scope. (2) the maximum amount of coverage frequency as your loan payments for the 760.2 Definitions. allowed for the type of property under the duration of your loan. Your premiums will be 760.3 Requirement to purchase flood NFIP. deposited in an escrow account so that when insurance where available. Flood insurance coverage under the NFIP we receive a notice from your flood 760.4 Exemptions. is limited to the improvements that have insurance provider that your flood insurance 760.5 Escrow requirement. been made to the real property that secure premiums are due, we will make payment 760.6 Required use of standard flood hazard the loan and not the land itself. from the escrow account to the insurance determination form. • Federal disaster relief assistance (usually provider on your behalf. 760.7 Force-placement of flood insurance. in the form of a low-interest loan) may be 760.8 Determination fees. available for damages incurred in excess of When the Escrow Will Start 760.9 Notice of special flood hazards and your flood insurance if your community’s When you receive your next flood availability of Federal disaster relief participation in the NFIP is in accordance insurance bill with the renewal of your policy assistance. with NFIP requirements. from your flood insurance provider, you are 760.10 Notice of servicer’s identity. responsible for making that payment directly Appendix A to Part 760—Sample Form of Availability of Private Flood Insurance to your insurance provider. Notice of Special Flood Hazards and Coverage We will begin collecting the premiums and Availability of Federal Disaster Relief Flood insurance coverage under the NFIP fees for your flood insurance escrow account Assistance may be purchased through an insurance with your mortgage loan payment following Appendix B to Part 760—Sample Form of agent who will obtain the policy either this renewal date for the next policy term. Notice of Requirement to Escrow for directly through the NFIP or through an For example, if your flood insurance policy Outstanding Loans insurance company that participates in the renewal date is September 15 and your next Appendix C to Part 760—Sample Escrow NFIP. Flood insurance that provides the same mortgage loan payment is October 1, the Requirement Clause for Loans that level of coverage as a standard flood institution will begin collecting the flood Become Designated Loans insurance policy under the NFIP may be insurance premiums and fees for escrow with Authority: 12 U.S.C. 1757, 1789; 42 U.S.C. available from private insurers that do not the October 1 mortgage loan payment. 4012a, 4104a, 4104b, 4106, and 4128. participate in the NFIP. You should compare The escrow amount for flood insurance the flood insurance coverage, deductibles, will be added to your existing periodic § 760.1 Authority, purpose, and scope. exclusions, conditions and premiums mortgage payment. The payments you make associated with flood insurance policies into the escrow account will accumulate over (a) Authority. This part is issued issued on behalf of the NFIP and policies time and the funds will be used to pay your pursuant to 12 U.S.C. 1757, 1789 and 42 issued on behalf of private insurance flood insurance policy at the next policy U.S.C. 4012a, 4104a, 4104b, 4106, and companies and ask an insurance agent as to renewal date. 4128. the availability, cost, and comparisons of Any questions regarding this new escrow (b) Purpose. The purpose of this part flood insurance coverage. requirement should be directed to [Insert is to implement the requirements of the

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National Flood Insurance Act of 1968 (ii) Recognized, or not disapproved, as designated loan unless the building or and the Flood Disaster Protection Act of a surplus lines insurer by the insurance mobile home and any personal property 1973, as amended (42 U.S.C. 4001– regulator of the State where the property securing the loan is covered by flood 4129). to be insured is located in the case of insurance for the term of the loan. The (c) Scope. This part, except for a policy of difference in conditions, amount of insurance must be at least §§ 760.6 and 760.8, applies to loans multiple peril, all risk, or other blanket equal to the lesser of the outstanding secured by buildings or mobile homes coverage insuring non-residential principal balance of the designated loan located or to be located in areas commercial policies; or the maximum limit of coverage determined by the Administrator of the (2) Provides flood insurance coverage available for the particular type of Federal Emergency Management Agency that is at least as broad as the coverage property under the Act. Flood insurance to have special flood hazards. Sections provided under a standard flood coverage under the Act is limited to the 760.6 and 760.8 apply to loans secured insurance policy under the NFIP, building or mobile home and any by buildings or mobile homes, including when considering personal property that secures a loan regardless of location. deductibles, exclusions, and conditions and not the land itself. offered by the insurer; (b) Table funded loan. A credit union § 760.2 Definitions. (3) Includes all of the following: that acquires a loan from a mortgage (a) Act means the National Flood (i) A requirement for the insurer to broker or other entity through table Insurance Act of 1968, as amended (42 give 45 days’ written notice of funding shall be considered to be U.S.C. 4001–4129). cancellation or non-renewal of flood making a loan for the purposes of this (b) Administrator of FEMA means the insurance coverage to the insured and part. Administrator of the Federal Emergency the credit union; (c) Private flood insurance. Management Agency. (ii) Information about the availability (1) Mandatory acceptance. A credit (c) Credit union means a Federal or of flood insurance coverage under the State-chartered credit union that is union must accept private flood NFIP; insurance, as defined in § 760.2(i), as insured by the National Credit Union (iii) A mortgage interest clause similar Share Insurance Fund. satisfaction of the flood insurance to the clause contained in a standard coverage requirement, provided that (d) Building means a walled and flood insurance policy under the NFIP; roofed structure, other than a gas or coverage under the flood insurance and policy meets the requirement for liquid storage tank, that is principally (iv) A provision requiring an insured coverage under paragraph (a) of this above ground and affixed to a to file suit not later than one year after section. permanent site, and a walled and roofed the date of a written denial of all or part structure while in the course of of a claim under the policy; and (2) Safe harbor. A flood insurance construction, alteration, or repair. (4) Contains cancellation provisions policy shall be deemed to meet the (e) Community means a State or a that are as restrictive as the provisions definition of private flood insurance in political subdivision of a State that has contained in a standard flood insurance § 760.2(i) for purposes of paragraph (a) zoning and building code jurisdiction policy under the NFIP. of this section if a State insurance over a particular area having special (j) Residential improved real estate regulator makes a determination in flood hazards. means real estate upon which a home or writing that the policy meets the (f) Designated loan means a loan other residential building is located or definition of private flood insurance in secured by a building or mobile home to be located. § 760.2(i). that is located or to be located in a (k) Servicer means the person § 760.4 Exemptions. special flood hazard area in which flood responsible for: insurance is available under the Act. (1) Receiving any scheduled, periodic The flood insurance requirement (g) Mobile home means a structure, payments from a borrower under the prescribed by § 760.3 does not apply transportable in one or more sections, terms of a loan, including amounts for with respect to: that is built on a permanent chassis and taxes, insurance premiums, and other (a) Any State-owned property covered designed for use with or without a charges with respect to the property under a policy of self-insurance permanent foundation when attached to securing the loan; and satisfactory to the Administrator of the required utilities. The term ‘‘mobile (2) Making payments of principal and FEMA, who publishes and periodically home’’ does not include a recreational interest and any other payments from revises the list of States falling within vehicle. For purposes of this part, the the amounts received from the borrower this exemption; or term ‘‘mobile home’’ means a mobile as may be required under the terms of (b) Property securing any loan with an home on a permanent foundation. The the loan. original principal balance of $5,000 or term ‘‘mobile home’’ includes a (l) Special flood hazard area means less and a repayment term of one year manufactured home as that term is used the land in the flood plain within a or less. in the NFIP. community having at least a one percent § 760.5 Escrow requirement. (h) NFIP means the National Flood chance of flooding in any given year, as Insurance Program authorized under the designated by the Administrator of (a) In general. (1) Applicability. Act. FEMA. Except as provided in paragraph (c) of (i) Private flood insurance means an (m) Table funding means a settlement this section, a credit union, or a servicer insurance policy that: at which a loan is funded by a acting on behalf of the credit union, (1) Is issued by an insurance company contemporaneous advance of loan funds shall require the escrow of all premiums that is: and an assignment of the loan to the and fees for any flood insurance (i) Licensed, admitted, or otherwise person advancing the funds. required under § 760.3(a) for any loan approved to engage in the business of secured by residential improved real insurance in the State or jurisdiction in § 760.3 Requirement to purchase flood estate or a mobile home that is which the insured building is located, insurance where available. outstanding or entered into on or after by the insurance regulator of that State (a) In general. A credit union shall not July 6, 2014, payable with the same or jurisdiction; or make, increase, extend, or renew any frequency as payments on the loan are

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made for the duration of the loan, unless deliver a written notice informing the (d) Change in ownership. If a credit the credit union has determined that: borrower that the credit union is union that is required to comply with (i) The loan is an extension of credit required to escrow all premiums and paragraph (a) of this section acquires a primarily for business, commercial, or fees for required flood insurance: designated loan covered by flood agricultural purposes; (1) For loans subject to paragraphs insurance required under § 760.3(a) that (ii) The borrower has obtained flood (a)(2)(i), (c)(2)(i), or (d) of this section, becomes subject to paragraph (a) of this insurance coverage that meets the at least 90 days before the escrow of section as a result of the credit union’s requirement of § 760.3(a) for the premiums and fees under paragraphs acquisition of the loan, the credit union residential improved real estate or (a)(2)(i), (c)(2)(i), or (d), using language must begin escrowing premiums and mobile home securing the loan and is that is substantially similar to the model fees for flood insurance pursuant to currently paying premiums and fees form in appendix B; paragraph (a) of this section with the through an escrow account established (2) For loans subject to paragraphs first loan payment on or after the first by another lender; or (a)(2)(ii) or (c)(2)(ii) of this section, with renewal date of the borrower’s flood (iii) Flood insurance coverage for the the notice provided under § 760.9, using insurance policy on or after the date that residential improved real estate or language that is substantially similar to is six months from the transfer date of mobile home is provided by a policy model clauses on the escrow the loan. that is purchased by a common interest requirement in appendix A; or community instead of the borrower, (3) For loans subject to paragraphs § 760.6 Required use of standard flood such as an NFIP Residential (a)(2)(iii) or (c)(2)(iii) of this section, hazard determination form. Condominium Building Association with the notice provided under § 760.7, (a) Use of form. A credit union shall Policy (RCBAP), that meets the using language that is substantially use the standard flood hazard requirements of § 760.3(a). similar to model clauses on the escrow determination form developed by the (2) Timing. A credit union that is requirement in appendix C. Administrator of FEMA when subject to paragraph (a) of this section, (c) Exception. determining whether the building or other than due to a change in status (1) Qualification. Except as may be mobile home offered as collateral under paragraph (c)(2) of this section or required under applicable State law, security for a loan is or will be located for acquired loans subject to paragraph paragraphs (a)(1) and (2) of this section in a special flood hazard area in which (d) of this section, shall begin escrowing do not apply to a credit union: flood insurance is available under the premiums and fees for flood insurance: (i) That has total assets of less than $1 Act. The standard flood hazard (i) For any designated loan billion as of December 31 of either of the determination form may be used in a outstanding on July 6, 2014, with the two prior calendar years; and printed, computerized, or electronic first loan payment on or after the first (ii) On or before July 6, 2012: manner. A credit union may obtain the renewal date of the borrower’s flood (A) Was not required under Federal or standard flood hazard determination insurance policy on or after July 6, 2014; State law to deposit taxes, insurance form from FEMA’s Web site at (ii) For any designated loan made on premiums, fees, or any other charges in www.fema.gov. or after July 6, 2014, upon loan an escrow account for the entire term of (b) Retention of form. A credit union consummation; or a loan secured by residential improved shall retain a copy of the completed (iii) For any loan that becomes a real estate or a mobile home; and standard flood hazard determination designated loan after July 6, 2014, with (B) Did not have a policy of form, in either hard copy or electronic the first loan payment after the flood consistently and uniformly requiring the form, for the period of time the credit insurance policy is established. deposit of taxes, insurance premiums, union owns the loan. (3) Escrow account. The credit union, fees, or any other charges in an escrow or a servicer acting on behalf of the account for loans secured by residential § 760.7 Force-placement of flood credit union, shall deposit the flood improved real estate or a mobile home. insurance. insurance premiums and fees on behalf (2) Change in status. If a credit union (a) Notice and purchase of coverage. of the borrower in an escrow account. previously qualified for the exception in If a credit union, or a servicer acting on This escrow account will be subject to paragraph § 760.5(c)(1), but no longer behalf of the credit union, determines at escrow requirements adopted pursuant qualifies for the exception because it any time during the term of a designated to section 10 of the Real Estate had assets of $1 billion or more for two loan that the building or mobile home Settlement Procedures Act of 1974 (12 consecutive calendar year ends, the and any personal property securing the U.S.C. 2609) (RESPA), which generally credit union must begin escrowing designated loan is not covered by flood limits the amount that may be premiums and fees for flood insurance insurance, or is covered by flood maintained in escrow accounts for pursuant to § 760.3(a): insurance in an amount less than the certain types of loans and requires (i) For any designated loan amount required under § 760.3, then the escrow account statements for those outstanding on July 1 of the succeeding credit union or its servicer shall notify accounts, only if the loan is otherwise calendar year, with the first loan the borrower that the borrower should subject to RESPA. Following receipt of payment on or after the first renewal obtain flood insurance, at the borrower’s a notice from the Administrator of date of the borrower’s flood insurance expense, in an amount at least equal to FEMA or other provider of flood policy on or after July 1 of the the amount required under § 760.3, for insurance that premiums are due, the succeeding calendar year; the remaining term of the loan. If the credit union, or a servicer acting on (ii) For any designated loan made on borrower fails to obtain flood insurance behalf of the credit union, shall pay the or after July 1 of the succeeding within 45 days after notification, then amount owed to the insurance provider calendar year, upon loan the credit union or its servicer shall from the escrow account by the date consummation; or purchase insurance on the borrower’s when such premiums are due. (iii) For any loan that becomes a behalf. The credit union or its servicer (b) Notice. A credit union that is designated loan after July 1 of the may charge the borrower for the cost of required to comply with paragraph (a) of succeeding calendar year, with the first premiums and fees incurred in this section, or a servicer acting on loan payment after the flood insurance purchasing the insurance, including behalf of the credit union, shall mail or policy is established. premiums or fees incurred for coverage

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beginning on the date on which flood (i) Affects the area in which the comparisons of flood insurance insurance coverage lapsed or did not building or mobile home securing the coverage to an insurance agent; and provide a sufficient coverage amount. loan is located; or (6) A statement whether Federal (b) Termination of force-placed (ii) By determination of the disaster relief assistance may be insurance. (1) Termination and refund. Administrator of FEMA, may reasonably available in the event of damage to the Within 30 days of receipt by a credit require a determination whether the building or mobile home caused by union, or a servicer acting on the credit building or mobile home securing the flooding in a Federally-declared union’s behalf, of a confirmation of a loan is located in a special flood hazard disaster. borrower’s existing flood insurance area; or (c) Timing of notice. The credit union coverage, the credit union, or its (4) Results in the purchase of flood shall provide the notice required by servicer shall: insurance coverage by the credit union paragraph (a) of this section to the (i) Notify the insurance provider to or its servicer on behalf of the borrower borrower within a reasonable time terminate any insurance purchased by under § 760.7. before the completion of the transaction the credit union or its servicer under (c) Purchaser or transferee fee. The and to the servicer as promptly as paragraph (a) of this section; and determination fee authorized by practicable after the credit union (ii) Refund to the borrower all paragraph (a) of this section may be provides notice to the borrower and in premiums paid by the borrower for any charged to the purchaser or transferee of any event no later than the time the insurance purchased by the credit union a loan in the case of the sale or transfer credit union provides other similar or its servicer under paragraph (a) of of the loan. notices to the servicer concerning this section during any period during hazard insurance and taxes. Notice to which the borrower’s flood insurance § 760.9 Notice of special flood hazards and the servicer may be made electronically availability of Federal disaster relief coverage and the insurance coverage assistance. or may take the form of a copy of the purchased by the credit union or its notice to the borrower. servicer were each in effect, and any (a) Notice requirement. When a credit (d) Record of receipt. The credit union related fees charged to the borrower union makes, increases, extends, or shall retain a record of the receipt of the with respect to the insurance purchased renews a loan secured by a building or notices by the borrower and the servicer by the credit union or its servicer during a mobile home located or to be located for the period of time the credit union such period. in a special flood hazard area, the credit owns the loan. (2) Sufficiency of demonstration. For union shall mail or deliver a written (e) Alternate method of notice. Instead purposes of confirming a borrower’s notice to the borrower and to the of providing the notice to the borrower existing flood insurance coverage under servicer in all cases whether or not flood required by paragraph (a) of this section, paragraph (b) of this section, a credit insurance is available under the Act for a credit union may obtain satisfactory union or its servicer shall accept from the collateral securing the loan. written assurance from a seller or lessor the borrower an insurance policy (b) Contents of notice. The written that, within a reasonable time before the declarations page that includes the notice must include the following completion of the sale or lease existing flood insurance policy number information: transaction, the seller or lessor has and the identity of, and contact (1) A warning, in a form approved by provided such notice to the purchaser or information for, the insurance company the Administrator of FEMA, that the lessee. The credit union shall retain a or agent. building or the mobile home is or will record of the written assurance from the be located in a special flood hazard area; seller or lessor for the period of time the § 760.8 Determination fees. (2) A description of the flood credit union owns the loan. (a) General. Notwithstanding any insurance purchase requirements set (f) Use of prescribed form of notice. A Federal or State law other than the forth in section 102(b) of the Flood credit union will be considered to be in Flood Disaster Protection Act of 1973, as Disaster Protection Act of 1973, as compliance with the requirement for amended (42 U.S.C. 4001–4129), any amended (42 U.S.C. 4012a(b)); notice to the borrower of this section by credit union, or a servicer acting on (3) A statement, where applicable, providing written notice to the borrower behalf of the credit union, may charge that flood insurance coverage is containing the language presented in a reasonable fee for determining available from private insurance appendix A to this part within a whether the building or mobile home companies that issue flood insurance reasonable time before the completion securing the loan is located or will be policies on behalf of the NFIP or of the transaction. The notice presented located in a special flood hazard area. A directly from the NFIP; in appendix A to this part satisfies the determination fee may also include, but (4) A statement that flood insurance borrower notice requirements of the Act. is not limited to, a fee for life-of-loan that provides the same level of coverage monitoring. as a standard flood insurance policy § 760.10 Notice of servicer’s identity. (b) Borrower fee. The determination under the NFIP may also be available (a) Notice requirement. When a credit fee authorized by paragraph (a) of this from a private insurance company that union makes, increases, extends, section may be charged to the borrower issues policies on behalf of the renews, sells, or transfers a loan secured if the determination: company; by a building or mobile home located or (1) Is made in connection with a (5) A statement that the borrower is to be located in a special flood hazard making, increasing, extending, or encouraged to compare the flood area, the credit union shall notify the renewing of the loan that is initiated by insurance coverage, deductibles, Administrator of FEMA (or the the borrower; exclusions, conditions and premiums Administrator’s designee) in writing of (2) Reflects the Administrator of associated with flood insurance policies the identity of the servicer of the loan. FEMA’s revision or updating of issued on behalf of the NFIP and The Administrator of FEMA has floodplain areas or flood-risk zones; policies issued on behalf of private designated the insurance provider to (3) Reflects the Administrator of insurance companies and that the receive the credit union’s notice of the FEMA’s publication of a notice or borrower should direct inquiries servicer’s identity. This notice may be compendium that: regarding the availability, cost, and provided electronically if electronic

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transmission is satisfactory to the any personal property that secures your loan frequency as your loan payments for the Administrator of FEMA’s designee. and not the land itself. duration of your loan. Your payments will be (b) Transfer of servicing rights. The • Federal disaster relief assistance (usually deposited in an escrow account so that when credit union shall notify the in the form of a low-interest loan) may be we receive a notice from your flood available for damages incurred in excess of insurance provider that your flood insurance Administrator of FEMA (or the your flood insurance if your community’s Administrator’s designee) of any change premiums are due, we will make payment participation in the NFIP is in accordance from the escrow account to the insurance in the servicer of a loan described in with NFIP requirements. provider on your behalf. paragraph (a) of this section within 60 Availability of Private Flood Insurance days after the effective date of the Coverage When the Escrow Will Start change. This notice may be provided Flood insurance coverage under the NFIP When you receive your next flood electronically if electronic transmission may be purchased through an insurance insurance bill with the renewal of your is satisfactory to the Administrator of agent who will obtain the policy either policy from your flood insurance provider, FEMA’s designee. Upon any change in directly through the NFIP or through an you are responsible for making that payment the servicing of a loan described in insurance company that participates in the directly to your insurance provider. paragraph (a) of this section, the duty to NFIP. Flood insurance that provides the same We will begin collecting the premiums and provide notice under this paragraph (b) level of coverage as a standard flood fees for your flood insurance escrow account shall transfer to the transferee servicer. insurance policy under the NFIP may be with your mortgage loan payment following available from private insurers that do not this renewal date for the next policy term. Appendix A to Part 760—Sample Form participate in the NFIP. You should compare For example, if your flood insurance policy the flood insurance coverage, deductibles, of Notice of Special Flood Hazards and renewal date is September 15 and your next exclusions, conditions and premiums Availability of Federal Disaster Relief mortgage loan payment is October 1, the Assistance associated with flood insurance policies issued on behalf of the NFIP and policies credit union will begin collecting the flood issued on behalf of private insurance insurance premiums and fees for escrow with We are giving you this notice to inform you companies and ask an insurance agent as to the October 1 mortgage loan payment. that: the availability, cost, and comparisons of The escrow amount for flood insurance The building or mobile home securing the flood insurance coverage. will be added to your existing periodic loan for which you have applied is or will mortgage payment. The payments you make be located in an area with special flood [Escrow Requirement for Residential Loans hazards. into the escrow account will accumulate over Federal law requires a lender or its servicer time and the funds will be used to pay your The area has been identified by the to escrow all premiums and fees for flood flood insurance policy at the next policy Administrator of the Federal Emergency insurance that covers any residential Management Agency (FEMA) as a special building or mobile home securing a loan that renewal date. flood hazard area using FEMA’s Flood is located in an area with special flood Any questions regarding this new escrow Insurance Rate Map or the Flood Hazard hazards. These premiums and fees must be requirement should be directed to [Insert Boundary Map for the following community: paid to the lender or its servicer with the Name of Lender or Servicer] at [Insert llll. This area has a one percent (1%) same frequency as your loan payments for Contact Information]. chance of a flood equal to or exceeding the the duration of your loan and will be base flood elevation (a 100-year flood) in any deposited in an escrow account on your Appendix C to Part 760—Sample given year. During the life of a 30-year behalf to be paid to the flood insurance Escrow Requirement Clause for Loans mortgage loan, the risk of a 100-year flood in provider. Upon receipt of a notice from the That Become Designated Loans a special flood hazard area is 26 percent flood insurance provider that the premiums Escrow Requirement Clause (26%). are due, the premiums shall be paid from the Federal law allows a lender and borrower escrow account to the insurance provider.] Federal law requires a lender or its servicer jointly to request the Administrator of FEMA l Flood insurance coverage under the to escrow all premiums and fees for flood to review the determination of whether the NFIP is not available for the property insurance that covers any residential property securing the loan is located in a securing the loan because the community in building or mobile home securing a loan that special flood hazard area. If you would like which the property is located does not is located in an area with special flood to make such a request, please contact us for participate in the NFIP. In addition, if the hazards. You must make payments of these further information. non-participating community has been premiums and fees to [Insert Name of Lender l The community in which the property identified for at least one year as containing or Servicer] with the same frequency as your securing the loan is located participates in a special flood hazard area, properties the National Flood Insurance Program loan payments for the duration of your loan. located in the community will not be eligible Your payments will be deposited in an (NFIP). Federal law will not allow us to make for Federal disaster relief assistance in the escrow account on your behalf to be paid to you the loan that you have applied for if you event of a Federally-declared flood disaster. do not purchase flood insurance. The flood the flood insurance provider. Upon receipt of insurance must be maintained for the life of Appendix B to Part 760—Sample Form a notice from the flood insurance provider the loan. If you fail to purchase or renew of Notice of Requirement to Escrow for that the flood insurance premium is due, flood insurance on the property, Federal law Outstanding Loans [Insert Name of Lender or Servicer] will pay authorizes and requires us to purchase the the premium from the escrow account to the flood insurance for you at your expense. Notice of Escrow Requirement insurance provider. • At a minimum, flood insurance We are giving you this notice to inform you Dated: October 9, 2013. purchased must cover the lesser of: that Federal law requires a lender or its (1) the outstanding principal balance of the servicer to escrow all premiums and fees for Thomas J. Curry, loan; or flood insurance that covers the building or Comptroller of the Currency. (2) the maximum amount of coverage mobile home securing your loan(s). By order of the Board of Governors of the allowed for the type of property under the Federal Reserve System, October 10, 2013. NFIP. How the Escrow Will Work Flood insurance coverage under the NFIP Federal law requires that you pay flood Robert deV. Frierson, is limited to the building or mobile home and insurance premiums and fees with the same Secretary of the Board.

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By order of the Board of Directors of the Dated at McLean, VA, this 10th day of Dated at Alexandria, VA, this 9th day of Federal Deposit Insurance Corporation. October, 2013. October, 2013. Dated at Washington, DC, this 8th day of Dale Aultman Gerard Poliquin, October, 2013. Secretary of the Board. Robert E. Feldman, Secretary. [FR Doc. 2013–24724 Filed 10–29–13; 8:45 am] Executive Secretary. By order of the Board of the National Credit Union Association. BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P; By order of the Board of the Farm Credit 6705–01–P; 7535–01–U Administration.

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Reader Aids Federal Register Vol. 78, No. 210 Wednesday, October 30, 2013

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING OCTOBER

Federal Register/Code of Federal Regulations At the end of each month the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. Presidential Documents 1 CFR 13652) ...... 63367 Executive orders and proclamations 741–6000 13532 (Continued by The United States Government Manual 741–6000 Proposed Rules: 13652) ...... 63367 51...... 60784 13538 (Continued by Other Services 13652) ...... 63367 3 CFR Electronic and on-line services (voice) 741–6020 13539 (Continued by Privacy Act Compilation 741–6064 Proclamations: 13652) ...... 63367 Public Laws Update Service (numbers, dates, etc.) 741–6043 9024...... 60177 13540 (Continued by TTY for the deaf-and-hard-of-hearing 741–6086 9025...... 60179 13652) ...... 63367 9026...... 61151 13559 (Continued by ELECTRONIC RESEARCH 9027...... 61803 13652) ...... 63367 9028...... 61805 13634 (Continued by World Wide Web 9029...... 61807 13652) ...... 63367 9030...... 61809 Full text of the daily Federal Register, CFR and other publications 13600 (Continued by 9031...... 61811 is located at: www.fdsys.gov. 13652) ...... 63367 9032...... 61813 13621 (Continued by Federal Register information and research tools, including Public 9033...... 61815 13652) ...... 63367 Inspection List, indexes, and Code of Federal Regulations are 9034...... 62305 13631 (Continued by located at: www.ofr.gov. 9035...... 62307 13652) ...... 63367 E-mail 9036...... 62309 13585 (Superseded in 9037...... 62311 FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is part by 13652)...... 63367 9038...... 62313 an open e-mail service that provides subscribers with a digital 13591 (Superseded in 9039...... 62315 form of the Federal Register Table of Contents. The digital form part by 13652)...... 63367 9040...... 62335 of the Federal Register Table of Contents includes HTML and 13538 (Amended by 9041...... 62337 PDF links to the full text of each document. 13652) ...... 63367 9042...... 62339 To join or leave, go to http://listserv.access.gpo.gov and select 13043 (Amended by 9043...... 62955 13652) ...... 63367 Online mailing list archives, FEDREGTOC-L, Join or leave the list 9044...... 62957 (or change settings); then follow the instructions. 13231 (Amended by 9045...... 64387 13652) ...... 63367 PENS (Public Law Electronic Notification Service) is an e-mail Executive Orders 13652...... 61817 service that notifies subscribers of recently enacted laws. 11145 (Continued by Administrative Orders To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 13652) ...... 63367 Memorandums: and select Join or leave the list (or change settings); then follow 11183 (Continued by Memo. of September the instructions. 13652) ...... 63367 27, 2013 ...... 62413 FEDREGTOC-L and PENS are mailing lists only. We cannot 11287 (Continued by Notices: respond to specific inquiries. 13652) ...... 63367 Notice of October 16, Reference questions. Send questions and comments about the 11612 (Continued by 2013 ...... 62341 Federal Register system to: [email protected] 13652) ...... 63367 Notice of October 23, The Federal Register staff cannot interpret specific documents or 12131 (Continued by 2013 ...... 64151 regulations. 13652) ...... 63367 Presidential Reminders. Effective January 1, 2009, the Reminders, including 12216 (Continued by Determinations: Rules Going Into Effect and Comments Due Next Week, no longer 13652) ...... 63367 No. 2014–01 of appear in the Reader Aids section of the Federal Register. This 12367 (Continued by October 2, 2013 ...... 62415 information can be found online at http://www.regulations.gov. 13652) ...... 63367 No. 2014–02 of CFR Checklist. Effective January 1, 2009, the CFR Checklist no 12382 (Continued by October 10, 2013 ...... 62953 longer appears in the Federal Register. This information can be 13652) ...... 63367 No. 2013–17 of found online at http://bookstore.gpo.gov/. 12829 (Continued by September 30, 13652) ...... 63367 2013 ...... 63367 FEDERAL REGISTER PAGES AND DATE, OCTOBER 12905 (Continued by 13652) ...... 63367 5 CFR 60177–60652...... 1 62357–62416...... 21 12994 (Continued by 532...... 60181, 60182 60653–61152...... 2 62417–62954...... 22 13652) ...... 63367 890...... 60653, 64873 61153–61802...... 3 62955–63368...... 23 13231 (Continued by 892...... 64873 61803–61936...... 4 63369–63822...... 24 13652) ...... 63367 894...... 64873 61937–61948...... 7 63823–64152...... 25 12365 (Continued by 2641...... 61153 61949–61982...... 8 64153–64388...... 28 13652) ...... 63367 61983–61988...... 9 13640 (Continued by 7 CFR 64389–64872...... 29 61989–62004...... 10 13652) ...... 63367 205...... 61154 62005–62292...... 11 64873–65144...... 30 13515 (Continued by 210...... 64153 62293–62304...... 15 13652) ...... 63367 215...... 64153 62305–62328...... 16 13521 (Continued by 220...... 64153 62329–62334...... 17 13652) ...... 63367 225...... 64153 62335–62356...... 18 13522 (Continued by 226...... 64153

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245...... 64153 60188, 60656, 60658, 60660, 356...... 62417 117 ...... 61180, 62439, 64178, 301...... 63369 60667, 60670, 60673, 60676, Proposed Rules: 64886, 64887 305...... 63373 60679, 60681, 61161, 61164, 351...... 60240 165 ...... 60216, 60218, 60220, 920...... 62959 61168, 61171, 61173, 61177, 60222, 60698, 61183, 61185, 922...... 62961, 62963 63850, 63852, 63853, 63855, 20 CFR 61937, 62293, 63381 946...... 62967 63858, 64156, 64159, 64162, 718...... 60686 Proposed Rules: Proposed Rules: 64164, 64394 725...... 60686 117 ...... 63136, 64186, 64189 993...... 63128 45...... 63015, 63017 165...... 61223 1210...... 64408 71 ...... 60683, 61179, 63380, 21 CFR 34 CFR 63861 510...... 63870 8 CFR 73 ...... 63860, 63866, 63867, 520...... 63870 Proposed Rules: Proposed Rules: 63868, 63869 522...... 63870 Ch. I–VI...... 63913 97 ...... 64167, 64168, 64170, 293...... 64183 524...... 63870 36 CFR 64172 558...... 63870 9 CFR Proposed Rules: 1240...... 63872 7...... 63069 25 ...... 62495, 63902, 64415 Proposed Rules: Proposed Rules: 37 CFR 2...... 63408 39 ...... 60798, 60800, 60804, 16...... 64425, 64736 Ch. I ...... 61185 3...... 63408 60807, 61220, 63130, 63132, 225...... 64425, 64736 1...... 62368 63135, 63429, 63431, 63903, 500...... 64425, 64736 3...... 62368 10 CFR 63907, 64417, 64419, 64421, 507 ...... 64425, 64428, 64736 11...... 62368 72...... 63375 64894 579...... 64425, 64736 429...... 62970, 63823 71 ...... 60235, 60236, 60237, 1308...... 61991, 62500 38 CFR 62498 430 ...... 62970, 62988, 63823 17...... 62441 431...... 62970, 62988 73...... 60238 22 CFR 120...... 61750 Proposed Rules: Proposed Rules: 15 CFR 121...... 61750 12...... 63139 50...... 63901 17...... 63143 51...... 64412, 64413 730...... 61744 123...... 61750 55...... 63901 732...... 61744 126...... 61750 39 CFR 734...... 61744, 61874 233...... 64175 72...... 63375 Proposed Rules: 429 ...... 62472, 64068, 64296 736...... 61744 738...... 61744, 61874 24 CFR 20...... 63433, 63434 430 ...... 62488, 62494, 63410, 111...... 63915 64068 740...... 61744, 61874 903...... 63748 431...... 62472, 64296 742...... 61744, 61874 905...... 63748 40 CFR 810...... 64414 743...... 61744 941...... 63748 744...... 61744 9...... 62443 968...... 63748 49...... 60700 12 CFR 746...... 61744 969...... 63748 748...... 61744, 61874 51...... 62451 3...... 62018 3282...... 60193 750...... 61744, 61874 52 ...... 60225, 60704, 61188, 5...... 62018 756...... 61744 25 CFR 62455, 62459, 63093, 63383, 6...... 62018 758...... 61744 63388, 63394, 63877, 63878, 46...... 64153 543...... 63873 762...... 61744 63881, 63883, 63887, 64402 165...... 62018 764...... 61744 26 CFR 62...... 63887 167...... 62018 770...... 61744 70...... 63887 208...... 62018 1 ...... 62418, 62426, 64396 772...... 61744, 61874 80...... 62462 217...... 62018 Proposed Rules: 774...... 61744, 61874 81...... 60704, 62459 225...... 62018 1...... 64430 180 ...... 60707, 60709, 60715, Proposed Rules: 324...... 62417 60720 922...... 64186 27 CFR Ch. VI...... 63380 300...... 60721, 63099 9 ...... 60686, 60690, 60693 610...... 63379 16 CFR 312...... 64403 741...... 64879, 64883 721...... 62443 4...... 64885 28 CFR 748...... 64883 Proposed Rules: 1112...... 63019 Ch. X...... 64389 524...... 63875 49...... 62509 1002...... 60382 1218...... 63019 29 CFR 52 ...... 62523, 63145, 63148, 1024...... 60382, 62993 Proposed Rules: 63435, 63436, 63437, 63929, 1026...... 60382, 62993 312...... 64423 552...... 60454 63933, 63934, 63937, 64430, 1227...... 63007 4022...... 62426 17 CFR 64896 Proposed Rules: 30 CFR 62...... 63937 22...... 65108 23...... 64173 70...... 63937 172...... 65108 232...... 60684 250...... 60208 122...... 64435 208...... 65108 Proposed Rules: 924...... 64397 123...... 64435 339...... 65108 229...... 60560 Proposed Rules: 127...... 64435 391...... 65108 230...... 61222 925...... 63909 180...... 63938 614...... 65108 239...... 61222 926...... 63911 300...... 60809 760...... 65108 249...... 60560 403...... 64435 31 CFR 501...... 64435 13 CFR 18 CFR Ch. 11 ...... 60695 503...... 64435 121...... 61114 40...... 63036 124...... 61114 32 CFR 42 CFR 125...... 61114 19 CFR 199...... 62427 412...... 61191, 61197 126...... 61114 10...... 60191, 63052 236...... 62430 413...... 61202 127...... 61114 24...... 60191, 63052 706...... 62438 424...... 61202 162...... 60191, 63052 Proposed Rules: 482...... 61197 14 CFR 163...... 60191, 63052 199...... 62506 485...... 61197, 64604 25 ...... 63845, 63847, 63848 178...... 60191, 63052 489...... 61197 34...... 63015, 63017 351...... 62417 33 CFR Proposed Rules: 39 ...... 60182, 60185, 60186, 354...... 62417 100...... 62329 121...... 60810

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43 CFR 87...... 61203 174...... 60745 63796, 64638, 64692 Proposed Rules: Proposed Rules: 177...... 60745 217...... 63396 10...... 64436 1...... 64191, 64442 178...... 60745 229...... 61821 2...... 64442 179...... 60745 622 ...... 61826, 61827, 61939, 44 CFR 25...... 64442 180...... 60745 61989, 64181, 64888 Proposed Rules: 27...... 64191, 64442 350...... 60226 648 ...... 61828, 61838, 62331, 206...... 61227 64...... 61250, 63152 381...... 60226 62471, 63405, 63406, 63892, 383...... 60226 73...... 61251 64182, 64889 45 CFR 101...... 64442 384...... 60226 679 ...... 61990, 62005, 63899, 144...... 65046 385...... 60226 48 CFR 64891, 64892 146...... 65046 386...... 60226 147...... 65046 Proposed Rules: 387...... 60226 Proposed Rules: 153...... 65046 1815...... 64442 390...... 63100 17 ...... 60813, 61046, 61082, 155...... 65046 1852...... 64442 392...... 60226 61273, 61293, 61622, 61764, 156...... 65046 395...... 64179 62523, 62529, 62560, 63574, 49 CFR Proposed Rules: 63625, 64192, 64328, 64358, 46 CFR 107...... 60726, 60745 Ch. VI...... 61251 64446, 64840 Proposed Rules: 109...... 60755 821...... 63438 223...... 63439, 63941 153...... 64905 130...... 60745 50 CFR 224...... 63941 171...... 60745 622...... 62579, 63946 47 CFR 17 ...... 60608, 60766, 61004, 172...... 60745 679...... 63951 20...... 64404 173 ...... 60745, 60763, 60766 61208, 61452, 61506, 63100,

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