Pages 43937±44144 Vol. 61 8±27±96 No. 167 federal register August 27,1996 Tuesday of thisissue. Washington, DC,seeannouncementontheinsidecover For informationonbriefingsinNewYork,NYand Briefings onHowToUsetheFederalRegister 1 II Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996

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2 III

Contents Federal Register Vol. 61, No. 167

Tuesday, August 27, 1996

Agency for International Development Comptroller of the Currency NOTICES RULES Agency information collection activities: Federal Deposit Insurance Act: Submission for OMB review; comment request, 44077– Safety and soundness standards, 43948–43952 44078 Customs Service Agricultural Marketing Service RULES RULES Merchandise, special classes: Cauliflower (frozen); grade standards, 43939–43943 Nonroad engines; emissions standards, 43960–43963 Potatoes (Irish) grown in— Colorado, 43946–43947 NOTICES Defense Department Agency information collection activities: See Engineers Corps Proposed collection; comment request, 44036–44037 NOTICES Agency information collection activities: Agriculture Department Submission for OMB review; comment request, 44041– See Agricultural Marketing Service 44042 See Commodity Credit Corporation See Farm Service Agency Education Department See Federal Crop Insurance Corporation NOTICES See Foreign Agricultural Service Agency information collection activities: NOTICES Proposed collection; comment request, 44042–44043 Industrial products or processes; agricultural material use; proposal request, 44035–44036 Employment and Training Administration Army Department NOTICES See Engineers Corps Adjustment assistance: Buster Brown Apparel, Inc., 44078 Bonneville Power Administration Cone Mills Corp., 44078–44079 NOTICES Dura-Bond et al., 44079 Floodplain and wetlands protection; environmental review J&J Lingerie Co. et al., 44079–44080 determinations; availability, etc.: Mahan Western Industries, Inc., 44080 Kalispel Tribe, WA; bass hatchery and nurseries, 44043 Warner’s of Warnaco, 44080 Emergency unemployment compensation programs: Centers for Disease Control and Prevention Extended benefit periods; changes, 44080–44081 NOTICES Agency information collection activities: Energy Department Proposed collection; comment request, 44066 See Bonneville Power Administration Children and Families Administration See Energy Efficiency and Renewable Energy Office See Energy Information Administration NOTICES See Federal Energy Regulatory Commission Grants and cooperative agreements; availability, etc.: See Hearings and Appeals Office, Energy Department Native American social and economic development projects, 44122–44139 Energy Efficiency and Renewable Energy Office Commerce Department PROPOSED RULES See International Trade Administration Consumer products; energy conservation program: See National Oceanic and Atmospheric Administration Appliance standards; revised product data sheets, 44001– NOTICES 44002 Agency information collection activities: Submission for OMB review; comment request, 44038 Energy Information Administration Commodity Credit Corporation NOTICES Agency information collection activities: RULES Conservation and environmental programs: Submission for OMB review; comment request, 44043 Conservation Reserve Programs (1986–1990 and 1991– 2002), 43943–43946 Engineers Corps RULES Commodity Futures Trading Commission Danger zones and restricted areas: PROPOSED RULES Pamlico Sound and adjacent waters, NC; Alligator Bayou Commodity pool operators and commodity trading off St. Andrew Bay, FL; and Suisun Bay, west of advisors: Carguinez Straits, Naval Weapons Station, CA, Electronic media use, 44009–44013 43969–43970 IV Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Contents

Environmental Protection Agency Federal Communications Commission RULES RULES Air programs: Common carrier services: Motor vehicle inspection/maintenance (I/M) program Commercial mobile radio service providers; roaming requirements; on-board diagnostic checks service provision, 43977–43981 Correction, 44119 Television broadcasting: Air quality implementation plans; approval and Children’s television broadcast services, 43981–43998 promulgation; various States: PROPOSED RULES California, 43976–43977 Common carrier services: Massachusetts, 43973–43976 Commercial mobile radio service providers; roaming Tennessee, 43972–43973 service provision, 44026–44031 Wisconsin, 43970–43972 PROPOSED RULES Federal Crop Insurance Corporation Air quality implementation plans; approval and PROPOSED RULES promulgation; various States: Crop insurance regulations: Massachusetts, 44024–44025 Extra long staple cotton, 43999–44001 Tennessee, 44024 Federal Deposit Insurance Corporation Superfund program: National oil and hazardous substances contingency RULES plan— Federal Deposit Insurance Act: Safety and soundness standards, 43948–43952 National priorities list update, 44025–44026 NOTICES Federal Emergency Management Agency Agency information collection activities: NOTICES Submission for OMB review; comment request, 44049– Agency information collection activities: 44050 Submission for OMB review; comment request, 44057– Air pollutants, hazardous; national emission standards: 44059 Surface coating operations from new or existing Meetings: shipbuilding and ship repair facilities, 44050–44057 Technical Mapping Advisory Council, 44059–44060 Reports; availability, etc.: Air quality criteria for ozone and related photochemical Federal Energy Regulatory Commission oxidants, 44057 NOTICES Superfund program: Applications, hearings, determinations, etc.: Prospective purchaser agreements— East Tennessee Natural Gas Co., 44044 Croydon Site, PA, [Editorial note: This document, Panhandle Eastern Pipe Line Co., 44044 published at 61 FR 42902 in the Federal Register Transcontinental Gas Pipe Line Corp., 44044–44045 issue of August 19, 1996, was incorrectly contented in that issue’s Table of Contents.] Federal Highway Administration RULES Executive Office of the President Engineering and traffic operations: See Presidential Documents Public lands highways funds program; elimination; See Trade Representative, Office of United States federal regulatory reform; CFR part removed, 43964– 43966

Farm Service Agency Federal Reserve System RULES RULES Agricultural conservation programs: Federal Deposit Insurance Act: Conservation reserve programs (1986–1990 and 1991– Safety and soundness standards, 43948–43952 2002), 43943–43946 NOTICES Banks and bank holding companies: Change in bank control, 44060 Federal Aviation Administration Formations, acquisitions, and mergers, 44060 RULES Permissible nonbanking activities, 44060–44061 Airworthiness standards: European Joint Aviation requirements; normal and Federal Trade Commission transport category rotorcraft— NOTICES Performance, systems, propulsion, and airframes; Prohibited trade practices: harmonization; correction, 43952 Computer Business Services, Inc., 44061–44065 PROPOSED RULES Airworthiness directives: Fish and Wildlife Service British Aerospace, 44006–44008 PROPOSED RULES Fokker, 44004–44006 Endangered and threatened species: McDonnell Douglas, 44002–44004 Anadromous Atlantic salmon in seven Maine rivers, Class C and Class D airspace; correction, 44119 44032–44033 Class D airspace, 44008–44009 Migratory bird hunting: NOTICES Bismuth-tin shot as nontoxic for waterfowl and coot Meetings: hunting; approval RTCA, Inc., 44117–44118 Correction, 44119 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Contents V

Food and Drug Administration Immigration and Naturalization Service RULES RULES Animal drugs, feeds, and related products: Nationals and citizens of U.S. at birth: Ivermectin tablets and chewable cubes Equal treatment of women in conferring citizenship on Correction, 43963–43964 children born abroad Food for human consumption: Correction, 43948 Federal regulatory reform, 43963 PROPOSED RULES Indian Affairs Bureau Federal regulatory review: PROPOSED RULES Food and cosmetic labeling, 44013 Energy and minerals: Medical devices: Quapaw Indian lands; lead and zinc mining operation Class III infant radiant warmer; reclassification into class and leases, 44019–44023 II; premarket approval, 44013–44019 NOTICES Interior Department Food additive petitions: See Fish and Wildlife Service Hoechst Celanese Corp., 44066–44067 See Indian Affairs Bureau Toray Industries (America), Inc., 44067 See Land Management Bureau Zeneca Inc., 44067–44068 See National Park Service Human drugs: See Reclamation Bureau Patent extension; regulatory review period See Surface Mining Reclamation and Enforcement Office determinations— ARIMIDEX, 44069–44070 Internal Revenue Service CEDAX capsules, 44070–44071 CEDAX oral suspension, 44068–44069 PROPOSED RULES Income taxes: Foreign Agricultural Service Inventory and natural resources produced in one NOTICES jurisdiction and sold in another jurisdiction; source North American Free Trade Agreement (NAFTA): of income from sales; correction, 44023–44024 Mexican frozen concentrated orange juice; temporary Stock disposition loss allocation duty imposition, 44037–44038 Correction, 44024 World Food Summit: U.S.-Rome Forum, 44038 International Development Cooperation Agency See Agency for International Development General Services Administration NOTICES International Trade Administration Acquisition regulations: NOTICES Performance bond to update the burden statement (SF Antidumping: 25); revision, 44065 Anhydrous sodium metasilicate from— Agency information collection activities: France, 44038–44039 Submission for OMB review; comment request, 44041– Corrosion-resistant carbon steel flat products from— 44042 Australia, 44039–44041 North American Free Trade Agreement (NAFTA); Health and Human Services Department binational panel reviews: See Centers for Disease Control and Prevention Oil country tubular goods from— See Children and Families Administration Mexico, 44041 See Food and Drug Administration See Substance Abuse and Mental Health Services Justice Department Administration See Immigration and Naturalization Service NOTICES Agency information collection activities: Labor Department Submission for OMB review; comment request, 44065 See Employment and Training Administration Meetings: See Pension and Welfare Benefits Administration Vital and Health Statistics National Committee, 44065– NOTICES 44066 Agency information collection activities: Hearings and Appeals Office, Energy Department Submission for OMB review; comment request; correction, 44078 NOTICES Cases filed, 44045–44049 Land Management Bureau Housing and Urban Development Department NOTICES RULES Closure of public lands: HUD-owned properties: Nevada, 44074–44075 Sale of HUD-held single family mortgages, 43966 Protraction diagrams: NOTICES Idaho, 44075 Agency information collection activities: Submission for OMB review; comment request, 44071– Maritime Administration 44074 NOTICES Grants and cooperative agreements; availability, etc.: Agency information collection activities: John Heinz neighborhood development program, 44074 Proposed collection; comment request, 44118 VI Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Contents

National Aeronautics and Space Administration Postal Service NOTICES NOTICES Agency information collection activities: Meetings: Submission for OMB review; comment request, 44041– Information based indicia program, 44094 44042 Presidential Documents National Archives and Records Administration EXECUTIVE ORDERS NOTICES Committees; establishment, renewal, termination, etc.: Agency records schedules; availability, 44091–44092 White House Commission on Aviation Safety and Security (EO 13015), 43937 National Capital Planning Commission PROCLAMATIONS Special observances: NOTICES Minority Enterprise Development Week (Proc. 6913), Environmental statements; availability, etc.: 44143–44144 Washington, D.C. convention center; construction and operation, 44092 Public Health Service See Centers for Disease Control and Prevention National Highway Traffic Safety Administration See Food and Drug Administration PROPOSED RULES See Substance Abuse and Mental Health Services Motor vehicle safety standards: Administration Heavy vehicle safety performance, 44031–44032 Reclamation Bureau National Oceanic and Atmospheric Administration NOTICES RULES Leasing of public lands: Fishery conservation and management: Nevada, 44077 Caribbean, Gulf of Mexico and South Atlantic fisheries, 43952–43960 Securities and Exchange Commission PROPOSED RULES NOTICES Fishery conservation and management: Agency information collection activities: Bering Sea and Aleutian Islands groundfish, 44033–44034 Submission for OMB review; comment request, 44094 Marine mammals: Meetings; Sunshine Act, 44097 Endangered fish or wildlife— Self-regulatory organizations; proposed rule changes: Anadromous Atlantic salmon in seven Maine rivers, American Stock Exchange, Inc., 44097–44098 44032–44033 Municipal Securities Rulemaking Board, 44098–44100 National Association of Securities Dealers, Inc., 44100– National Park Service 44116 NOTICES New York Stock Exchange, Inc., 44116–44117 Environmental statements; availability, etc.: Applications, hearings, determinations, etc.: Cape Cod National Seashore, MA, 44075 The One Group et al., 44094–44097 Carlsbad Caverns National Park, NM, 44075–44076 Pecos National Historical Park, NM, 44076–44077 Substance Abuse and Mental Health Services National Register of Historic Places: Administration Pending nominations, 44077 NOTICES Meetings; special emphasis panels: National Science Foundation August, 44071 NOTICES Meetings: Surface Mining Reclamation and Enforcement Office Materials Research Special Emphasis Panel, 44092–44093 RULES Permanent program and abandoned mine land reclamation National Transportation Safety Board plan submissions: NOTICES Wyoming, 43966–43969 Meetings; Sunshine Act, 44093 Thrift Supervision Office RULES Nuclear Regulatory Commission Federal Deposit Insurance Act: NOTICES Safety and soundness standards, 43948–43952 Meetings; Sunshine Act, 44093–44094 Applications, hearings, determinations, etc.: Trade Representative, Office of United States Virginia Electric & Power Co., 44093 NOTICES Meetings: Office of United States Trade Representative United States Pacific Trade and Investment Policy See Trade Representative, Office of United States Commission, 44117

Pension and Welfare Benefits Administration Transportation Department NOTICES See Federal Aviation Administration Employee benefit plans; prohibited transaction exemptions: See Federal Highway Administration Society National Bank et al., 44081–44085 See Maritime Administration Zerhusen and Ghazi, M.D., Inc., 44085–44091 See National Highway Traffic Safety Administration Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Contents VII

NOTICES Part III Meetings: The President, 44143–44144 White House Commission on Aviation Safety and Security, 44117

Treasury Department Reader Aids See Comptroller of the Currency See Customs Service Additional information, including a list of public laws, See Internal Revenue Service telephone numbers, reminders, and finding aids, appears in See Thrift Supervision Office the Reader Aids section at the end of this issue.

United StatesÐPacific Trade and Investment Policy Commission NOTICES Electronic Bulletin Board Meetings, 44117 Free Electronic Bulletin Board service for Public Law numbers, Federal Register finding aids, and a list of documents on public inspection is available on 202–275– Separate Parts In This Issue 1538 or 275–0920.

Part II Health and Human Services Department, Children and Families Administration, 44122–44139 VIII Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Contents

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.

3 CFR 47 CFR Proclamations: 20...... 43977 6913...... 44143 22...... 43977 73...... 43981 Executive Orders: 13015...... 43937 Proposed Rules: 20...... 44026 7 CFR 52...... 43939 49 CFR 704...... 43943 Proposed Rules: 948...... 43946 571...... 44031 1410...... 43943 50 CFR Proposed Rules: 622...... 43952 457...... 43999 Proposed Rules: 8 CFR 20...... 44119 301...... 43948 227...... 44032 425...... 44032 10 CFR 679...... 44033 Proposed Rules: 430...... 44001 12 CFR 30...... 43948 208...... 43948 364...... 43948 570...... 43948 14 CFR 27...... 43952 29...... 43952 Proposed Rules: 39 (3 documents) ...... 44002, 44004, 44006 71 (2 documents) ...... 44008, 44119 15 CFR 902...... 43952 17 CFR Proposed Rules: 4...... 44009 19 CFR 12...... 43960 21 CFR 105...... 43963 520...... 43963 Proposed Rules: 730...... 44013 880...... 44013 23 CFR 667...... 43964 24 CFR 291...... 43966 25 CFR Proposed Rules: 215...... 44019 26 CFR Proposed Rules: 1 (2 documents) ...... 44023, 44024 30 CFR 950...... 43966 33 CFR 334...... 43969 40 CFR 51...... 44119 52 (4 documents) ...... 43970, 43972, 43973, 43976 Proposed Rules: 52 (2 documents) ...... 44024 300...... 44025 43937

Federal Register Presidential Documents Vol. 61, No. 167

Tuesday, August 27, 1996

Title 3— Executive Order 13015 of August 22, 1996

The President White House Commission on Aviation Safety and Security

By the authority vested in me as President by the Constitution and the laws of the United States, including section 301 of title 3, United States Code, it is hereby ordered as follows: Section 1. Establishment. There is established the White House Commission on Aviation Safety and Security (the ‘‘Commission’’). The Commission shall consist of not more than 25 members, to be appointed by the President from the public and private sectors, each of whom shall have experience or expertise in some aspect of aviation safety or security. The Vice President shall serve as the Chair of the Commission. Sec. 2. Functions. (a) The Commission shall advise the President on matters involving aviation safety and security, including air traffic control. (b) The Commission shall develop and recommend to the President a strategy designed to improve aviation safety and security, both domestically and internationally. (c) The Chair may, from time to time, invite experts to submit information to the Commission; hold hearings on relevant issues; and form committees and teams to assist the Commission in accomplishing its objectives and duties, which may include individuals other than members of the Commis- sion. Sec. 3. Administration. (a) The heads of executive departments and agencies shall, to the extent permitted by law, provide the Commission such informa- tion with respect to aviation safety and security as the Commission requires to fulfill its functions. (b) The Commission shall be supported, both administratively and finan- cially, by the Department of Transportation and such other sources (including other Federal agencies) as may lawfully contribute to Commission activities. Sec. 4. General. (a) I have determined that the Commission shall be estab- lished in compliance with the Federal Advisory Committee Act, as amended (5 U.S.C. App. 2). Notwithstanding any other Executive order, the functions of the President under the Federal Advisory Committee Act, as amended, shall be performed by the Secretary of Transportation in accordance with the guidelines and procedures established by the Administrator of General Services, except that of reporting to the Congress. (b) The Commission shall exist for a period of 6 months from the date of this order, unless extended by the President. œ–

THE WHITE HOUSE, August 22, 1996. [FR Doc. 96–21996 Filed 8–26–96; 8:45 am] Billing code 3195–01–P 43939

Rules and Regulations Federal Register Vol. 61, No. 167

Tuesday, August 27, 1996

This section of the FEDERAL REGISTER SUPPLEMENTARY INFORMATION: The USDA They also requested that the revised contains regulatory documents having general is issuing this rule in conformance with standards assign individual tolerances applicability and legal effect, most of which Executive Order 12866. to each individual quality factor. The are keyed to and codified in the Code of Pursuant to the requirements set forth system of grading, referred to as Federal Regulations, which is published under in the Regulatory Flexibility Act, (5 ‘‘individual attributes,’’ will provide 50 titles pursuant to 44 U.S.C. 1510. U.S.C. 601 et seq.), the Agricultural statistically derived acceptable quality The Code of Federal Regulations is sold by Marketing Service, has considered the levels (AQL’s) based on the tolerances the Superintendent of Documents. Prices of economic impact on small entities. in the current grade standards. new books are listed in the first FEDERAL The Agricultural Marketing Service The discussion draft incorporated the REGISTER issue of each week. (AMS) has certified that this action will changes recommended by AFFI and not have a significant economic impact NFPA. The draft also incorporated on a substantial number of small USDA’s policy of replacing dual grade DEPARTMENT OF AGRICULTURE entities, as defined in the Regulatory nomenclature with single letter grade Flexibility Act. The proposed changes designations. Agricultural Marketing Service reflect current marketing practices. The In the revision, ‘‘U.S. Grade A’’ (or use of these standards is voluntary. A ‘‘U.S. Fancy’’) and ‘‘U.S. Grade B’’ (or 7 CFR Part 52 small entity may avoid incurring any ‘‘U.S. Extra Standard’’) will have simply [FV±91±329] additional economic impact by not become ‘‘U.S. Grade A,’’ and ‘‘U.S. employing the standards. Grade B.’’ United States Standards for Grades of This final rule has been reviewed The USDA prepared a discussion Frozen Cauliflower under Executive Order 12988, Civil draft, incorporating the requested and Justice Reform. This action is not editorial changes, and submitted it to AGENCY: Agricultural Marketing Service, intended to have retroactive effect. AFFI and NFPA for comment. Minor USDA. This final rule will not preempt any changes were recommended for the ACTION: Final rule. State or local laws, regulations, or draft revision. SUMMARY: The purpose of this final rule policies, unless they present an In addition to these changes, the is to revise the current voluntary U.S. irreconcilable conflict with this rule. revision will modify the standards to Standards for Grades of Frozen There are no administrative procedures present them in a simplified easy-to-use Cauliflower. This rule was developed by which must be exhausted prior to any format. Consistent with recent revisions the Department of Agriculture (USDA) judicial challenge to the provisions of of other U.S. grade standards, at the request of the American Frozen this rule. definitions of terms and easy-to-read Food Institute (AFFI) and the National Agencies periodically review existing tables will replace the textual Food Processors Association (NFPA). Its regulations. An objective of the descriptions. These changes were effect will be to improve the standards regulatory review is to ensure that the intended to facilitate better grade standards are serving their by: bringing the standards in line with understanding and more uniform intended purpose, the language is clear, current marketing practices and application of the grade standards. and the standards are consistent with innovations in processing techniques; AMS policy and authority. Proposed Rule providing for the ‘‘individual attributes’’ The Western Technical Advisory A proposed rule to revise the U.S. procedure for product grading with Committee of the American Frozen Standards for Grades of Frozen sample sizes, acceptable quality levels Food Institute (AFFI) and the USDA Cauliflower was published in the (AQL’s), tolerances and acceptance Grade Standards Review Subcommittee Federal Register on November 24, 1995 numbers (number of allowable defects) of the National Food Processors (60 FR 57958). A proposal to revise the being published in the standards; Association (NFPA), requested that the U.S. Standards for Grades of Frozen replacing dual grade nomenclature with USDA prepare a draft revision of the Cauliflower was previously published single letter grade designations, such as U.S. grade standards for frozen in the Federal Register on January 11, ‘‘U.S. Grade A’’ or ‘‘U.S. Fancy,’’ with cauliflower in 1992. They requested that 1993 (58 FR 3816). A reopening and ‘‘U.S. Grade A;’’ and providing a the draft allow for the use of mechanical extension of the comment period to uniform format consistent with other trimming devices in cauliflower December 31, 1993, for the at proposal recently revised U.S. grade standards by processing by de-emphasizing the was published in the Federal Register adopting definitions for terms and importance of uniform shape and on May 25, 1993 (58 FR 29985). replacing textual descriptions with easy- symmetry of cauliflower clusters in the There were no public comments to-read tables. This rule also includes standards because mechanical trimmers received during the comment period for conforming and editorial changes. now perform processing operations the first proposal. However, USDA EFFECTIVE DATE: September 26, 1996. previously done by hand. The received comments from Patterson FOR FURTHER INFORMATION CONTACT: mechanical trimming devices produce Frozen Foods, Inc. and AFFI regarding James R. Rodeheaver, Processed clusters which are less uniform in size, the proposal, after the extended Products Branch, Fruit and Vegetable shape, and symmetry and remove, comment period closed. Division, Agricultural Marketing partially or completely, the bud portion The two commenters suggested that Service, U.S. Department of Agriculture, of the unit. The absence of a uniform the style name ‘‘Nuggets or Small P.O. Box 96456, Room 0709, South shape does not significantly affect the Clusters’’ should be used instead of Building, Washington, DC 20090–6456, eating quality or nutritional value of ‘‘Clusters for Limited Use’’ due to the Telephone: (202) 720–4693. frozen cauliflower. terms familiarity in the industry and the 43940 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations marketplace. USDA agreed with the to clarify the standards based on tolerance for ‘‘total color defects.’’ We comment to change in style names to industry practices. did not agree, however, with the change incorporate familiar names. A change in the definition of ‘‘color in the tolerance for ‘‘major color Both commenting parties requested a defect’’ was recommended by the defects.’’ Such a change will present a change in the proposed method of commenters. It was suggested that a significant deviation from the tolerance determining style in frozen cauliflower definition differentiating ‘‘minor’’ and in the existing U.S. Standards for Grades and the requirements. Both agreed that ‘‘major’’ color defects based on existing of Frozen Cauliflower without valid the method for determining style should USDA inspection criteria should be justification as to why it should be be based on ‘‘weight’’ instead of ‘‘count’’ incorporated into the ‘‘color defect’’ changed. and Patterson Frozen Foods also definition of the revision. USDA agreed It was also suggested that the suggested that the six millimeter with the change and incorporated it. tolerance for mechanical damage, in minimum requirement for ‘‘Nuggets or The incorporated changes from the Nuggets style, should be increased to 10 Small Clusters’’ style be removed since inspection criteria will accurately reflect percent for ‘‘Grade A’’ and 20 percent there is no maximum size requirement the method used in the food industry to for ‘‘Grade B’’ to better reflect the use of for ‘‘Clusters’’ style. evaluate color defects. mechanical trimming devices. USDA Both parties suggested that Minor changes were suggested for the agreed with this change and determining ‘‘style’’ by ‘‘weight’’ instead definitions of the terms ‘‘blemished, incorporated it in the revision. of by ‘‘count’’ will make the standards fragments, and mechanical damage’’ to A copy of the initial proposed rule more compatible with the industry’s help clarify their meaning. Both was provided to the Agricultural practice of using mechanical trimming commenters suggested the term Research Service (ARS) for help in devices which produce clusters that are ‘‘discoloration’’ should be removed from identifying studies, data collection or less uniform in size, shape, and the definition of ‘‘blemished,’’ and the other information relevant to the symmetry. phrase, ‘‘in the aggregate,’’ should be possible effect of the revision on USDA conducted a study using added to the ‘‘minor blemished and pesticide use. ARS reported that they imported and domestic samples in 10, major blemished’’ definition. 16, 20, 32 and 35 ounce package sizes AFFI and Patterson Frozen Foods also were unable to find much information to determine the average counts and suggested that the words ‘‘tough or on the subject. The information that was weights of cauliflower clusters. fibrous’’ should be added to the found by ARS proved not to be relevant. Based on the information collected, definition of ‘‘fragments’’ and the words The changes and issues raised by the USDA agreed with the suggested change ‘‘seriously’’ and ‘‘excessive or’’ should comments regarding the first proposed to determine style ‘‘by weight’’ instead be deleted from the definition of rule supported publishing another of ‘‘by count’’ for ‘‘Clusters Style’’ and ‘‘mechanical damage.’’ USDA agreed proposed rule that was published in the with the recommended tolerance of 10 with these changes and incorporated Federal Register (60 FR 57958) on percent by weight to better reflect them into the revision. November 24, 1995, with a 60 day industry practices. It was requested that the classified comment period. In response to that USDA disagreed with the elimination quality factor, ‘‘mushy character,’’ proposed rule the only comment of the minimum size requirement in should be deleted from the standards received was from AFFI, which agreed ‘‘Nuggets or Small Clusters’’ style. The since its definition has been with this revision. Accordingly, this prerequisite of ‘‘appearance’’ was incorporated into the definition of ‘‘soft final rule will modify the standards to incorporated into the reproposal to character.’’ The USDA deleted the a simplified easy-to-use format, maintain present tolerances for small classified quality factor for ‘‘mushy consistent with recent revisions of other pieces of cauliflower (chaff) that affect character’’ and adjusted the tolerance U.S. grade standards, with definitions of the appearance and edibility of for the quality factor, ‘‘soft character’’ to terms and easy-to-read tables that will ‘‘Nuggets or Small Clusters’’ and reflect the change. replace the textual descriptions. This ‘‘Clusters’’ style cauliflower. A Changes in the tolerances of several final rule is intended to facilitate better definition for ‘‘chaff’’ was also ‘‘classified quality factors’’ were understanding and more uniform incorporated into the reproposal. suggested. For the quality factor of application of the grade standards. The study conducted by USDA ‘‘ricey character,’’ tolerances of 15 List of Subjects in 7 CFR Part 52 showed that the average unit weight of percent for ‘‘Grade A’’ and 30 percent ‘‘Nuggets or Small Clusters’’ was closer for ‘‘Grade B’’ were preferred by AFFI Food grades and standards, Food to two grams per unit than to three and Patterson Frozen Foods because this labeling, Frozen foods, Fruit juices, grams per unit as published in the defect is more common and less Fruits, Reporting and record keeping initial proposal. The AQL’s and objectionable. For ‘‘soft character’’, a requirements, Vegetables. acceptance numbers in Table II were tolerance of 5 percent rather than 10 For the reasons set forth in the adjusted to reflect the finding. percent was preferred because it is more preamble, 7 CFR part 52 is amended to AFFI and Patterson Frozen Foods preventable and more objectionable. read as follows: asked that the definitions for ‘‘ricey’’ The USDA has adjusted the tolerances and ‘‘fuzzy’’ character in the current for ‘‘soft character’’ and ‘‘ricey PART 52ÐPROCESSED FRUITS AND standards be retained in the revision. character’’ and incorporated them into VEGETABLES, PROCESSED USDA agreed that maintaining the same the revision. PRODUCTS THEREOF, AND CERTAIN definitions for ‘‘ricey’’ and ‘‘fuzzy’’ will It was suggested that the quality factor OTHER PROCESSED FOOD reduce confusion within the industry. It of ‘‘color defect’’ be divided into ‘‘major PRODUCTS 1 was also requested that the term color defects’’ and ‘‘total color defects.’’ ‘‘mushy’’ character should be deleted The comments suggested tolerances for 1. The authority citation for part 52 is and that its definition be incorporated the new factors should reflect this revised to read as follows: into the definition for ‘‘soft’’ character. change with 3 percent for ‘‘major’’ and 1 Among such other processed food products are The industry believed this change will 8 percent for ‘‘total.’’ We agreed with the following: Honey; molasses, except for be less confusing and more accurate. the changes in the quality factor for stockfeed; nuts and nut products, except oil; sugar USDA agreed and made these changes color defects and with the 8 percent (cane, beet, and maple); sirups (blended), sirups, Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43941

Authority: 7 U.S.C. 1621–1627. materially affected and; for clusters (j) Loose leaves mean leaf material, 2. In part 52, Subpart—United States style, a maximum of 5%, by weight, of exclusive of small tender leaves, that are Standards for Grades of Frozen chaff is allowed for the sample unit. For detached from the stem. Cauliflower, is revised to read as nuggets style, a maximum of 10%, by (k) Mechanical damage means that follows: weight, of chaff is allowed for the the appearance of the unit is affected by sample unit. trimming, or the unit is crushed or SubpartÐUnited States Standards for (c) Blemished means the cluster is broken to the extent that the appearance Grades of Frozen Cauliflower affected or damaged by pathological is materially affected. Sec. injury, insect injury, or any other injury, (l) Normal flavor and odor means that 52.721 Product description. which singly or in combination, affects the cauliflower, before and after 52.722 Styles. the appearance or eating quality of the cooking, has a flavor and odor that is 52.723 Requirements for style. 52.724 Definitions of terms. unit. normal and is free from objectionable 52.725 Grades. (1) Minor blemished means a unit flavors and odors. 52.726 Factors of quality. with a dark blemish(s), which in the (m) Sample unit means the amount of 52.727 Requirements for classified quality aggregate, exceeds the area of a circle 4 product specified to be used for grading. factors. mm (0.16 in) in diameter but not 6 mm For varietal characteristics, flavor and 52.728 Sample size. (0.25 in) or a light blemish(s), which in odor and appearance, a sample unit is 52.729 Acceptance criteria. the aggregate, exceeds the area of a the entire container. For blemishes, circle 6 mm (0.25 in) in diameter. character, color, core material, SubpartÐUnited States Standards for (2) Major blemished means a unit fragments, mechanical damage and Grades of Frozen Cauliflower with a dark blemish(s), which in the loose leaves, a sample unit is 100 grams § 52.721 Product description. aggregate, exceeds the area of a circle 6 for Nuggets Style and 50 units for Frozen cauliflower is prepared from mm (0.25 in) in diameter. Clusters Style. It may be: fresh flower heads of the cauliflower (d) Chaff mean individual segments of (1) The entire contents of a container; plant (Brassica oleracea botrytis) by trimmed and cored cauliflower material, (2) A portion of the contents of a trimming, washing, and blanching and with and without head material, which container; or is frozen and maintained at measure less than 6 mm (0.25 in) in its (3) A combination of the contents of temperatures necessary for preservation greatest dimension. two or more containers. of the product. (e) Character means the extent of (n) Tolerance (TOL.) means the firmness and compactness of the cluster percentage of defective units allowed for § 52.722 Styles. and its degree of freedom from fuzzy, each quality factor for a specific sample (a) Clusters mean individual segments ricey and soft units. size. of trimmed and cored cauliflower heads, (1) Fuzzy character means a cluster (o) Unit means one cluster or piece of which measure not less than 20 mm with sections of head that have cauliflower. (0.75 in) in the greatest dimension elongated individual flowers (or § 52.725 Grades. across the top of the unit. pedicels) that result in a very fuzzy (a) U.S. Grade A is the quality of (b) Nuggets or Small Clusters mean appearance. frozen cauliflower that meets the individual segments of trimmed and (2) Ricey character means a cluster following prerequisites in which the cored cauliflower heads, which measure with sections of head on which the cauliflower: from 6 mm (0.25 in) to less than 20 mm ultimate branches have become (1) Has similar varietal characteristics, (0.75 in) in the greatest dimension elongated, causing the flower clusters to across the top of the unit. (2) Has a normal flavor and odor; separate and present a loose or open and (3) Has a good appearance; and sometimes granular appearance. § 52.723 Requirements for style. (4) Is within the limits for defects as (3) Soft character means a cluster that specified in Tables I and II, of this (a) Clusters style. A maximum of 10%, is limp and flabby and the flesh yields by weight, of clusters less than 20 mm subpart, as applicable for the style in readily when handled. § 52.727. (0.75 in) in the greatest dimension (f) Color defect. across the top of the unit are allowed. (b) U.S. Grade B is the quality of (1) Minor means that after cooking, frozen cauliflower that meets the (b) Nuggets style. A maximum of 20%, the cluster possesses a color that is more by weight, of clusters, 20 mm (0.75 in) following prerequisites in which the than slightly darker than light cream to cauliflower: or greater, and a maximum of 10%, by dark cream. weight, of clusters less than 6 mm (0.25 (1) Has similar varietal characteristics; (2) Major means that after cooking, the (2) Has a normal flavor and odor; in) in the greatest dimension across the cluster possesses a color that is top of the unit are allowed. (3) Has a good appearance; and seriously darkened or discolored. (4) Is within the limits for defects as § 52.724 Definitions of terms. (g) Core material means the loose or specified in Tables I and II, of this (a) Acceptable quality level (AQL) attached center portion of the subpart as applicable for the style in means the maximum percent of cauliflower head which is tough or § 52.727. defective units or the maximum number fibrous. (c) Substandard is the quality of of defects per hundred units of product (h) Defect means any nonconformance frozen cauliflower that fails to meet the that, for the purpose of acceptance of a unit(s) of product from a specified requirements of U.S. Grade B. sampling, can be considered satisfactory requirement of a single quality § 52.726 Factors of quality. as a process average. characteristic. (b) Appearance. Good appearance (i) Fragment means a stem or other The grade of frozen cauliflower is means that the overall appearance or cauliflower material without head based on meeting the requirements for edibility of the cauliflower is not material that is 6 mm (0.25 in) or greater the following factors: in the greatest dimension (excluding (a) Prerequisites; except from grain; tea, cocoa, coffee, spices, tough or fibrous core material, loose (1) Varietal characteristics; condiments. leaves, and chaff). (2) Flavor and odor; and 43942 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

(3) Appearance. (4) Ricey character; (9) Fragments; (b) Classified Quality Factors; (5) Soft character; (10) Loose leaves; and (1) Major blemished; (6) Major color defects; (11) Mechanical damage. (2) Total blemished (Major and (7) Total color defects (Major and Minor); Minor); § 52.727 Requirements for classified (3) Fuzzy character; (8) Core material; quality factors.

TABLE I.ÐAQL'S AND TOLERANCES (TOL.) FOR DEFECTS IN CLUSTERS STYLE BASED ON 50 UNITS OF PRODUCT FOR 13 SAMPLE UNITS, 50×13=650 UNITS

Sample Units × Sample Unit Size 1×50 3×50 6×50 13×50 21×50 29×50

Units of Product 50 150 300 650 1050 1450

Defects AQL TOL

Grade A Acceptance numbers

Major Blemished ...... 3.8 5.0 4 9 17 33 50 67 Total Blemished (Major & Minor) ...... 8.2 10.0 7 18 33 65 101 137 Fuzzy Characteer ...... 1.3 2.0 2 4 7 13 20 26 Ricey Character ...... 8.2 10.0 7 18 33 65 101 137 Soft Character ...... 0.612 1.0 1 2 4 7 10 14 Major Color Defect ...... 0.612 1.0 1 2 4 7 10 14 Total Color Defect (Major & Minor) ...... 6.4 8.0 6 15 26 52 80 108 Core Material ...... 2.17 3.0 3 6 11 20 31 41 Fragments ...... 3.8 5.0 4 9 17 33 50 67 Mechanical Damage ...... 8.2 10.0 7 18 33 65 101 137 Loose Leaves (each piece) ...... 2.17 3.0 3 6 11 20 31 41

Grade B Acceptance numbers

Major Blemished ...... 8.2 10.0 7 18 33 65 101 137 Total Blemished (Major & Minor) ...... 13.0 15.0 10 26 48 98 154 209 Fuzzy Character ...... 6.4 8.0 6 15 26 52 80 108 Ricey Character ...... 13.0 15.0 10 26 48 98 154 209 Soft Character ...... 2.9 4.0 3 8 13 26 39 53 Major Color Defect ...... 3.8 5.0 4 9 17 33 50 67 Total Color Defect (Major & Minor) ...... 13.8 16.0 11 27 51 104 163 221 Core Material ...... 3.8 5.0 4 9 17 33 50 67 Fragments ...... 8.2 10.0 7 18 33 65 101 137 Mechanical Damage ...... 17.6 20.0 13 34 63 130 205 279 Loose Leaves (each piece) ...... 6.4 8.0 6 15 26 52 80 108

TABLE II.ÐAQL'S AND TOLERANCES (TOL.) FOR DEFECTS IN NUGGETS OR SMALL CLUSTERS STYLE BASED ON 100 GRAMS OF PRODUCT FOR 13 SAMPLE UNITS, 100×13=1300 UNITS

Sample Units × Sample Unit Size 1×100 3×100 6×100 13×100 21×100 29×100

Grams of Product 100 300 600 1300 2100 2900

Defects AQL TOL

Grade A Acceptance numbers (grams)

Major Blemished ...... 3.8 5.0 7 17 31 61 94 127 Total Blemished (Major & Minor) ...... 8.2 10.0 13 33 61 123 194 263 Fuzzy Character ...... 1.3 2.0 3 7 12 23 36 48 Ricey Character ...... 8.2 10.0 13 33 61 123 194 263 Soft Character ...... 0.612 1.0 2 4 7 12 19 24 Major Color Defect ...... 2.17 3.0 4 11 19 37 56 76 Total Color Defect (Major & Minor) ...... 8.2 10.0 13 33 61 123 194 263 Core Material ...... 2.17 3.0 4 11 19 37 56 76 Fragments ...... 3.8 5.0 7 17 31 61 94 127 Mechanical Damage ...... 8.2 10.0 13 33 61 123 194 263 Loose Leaves (each piece) ...... 3.8 5.0 7 17 31 61 94 127

Grade B Acceptance numbers (grams)

Major Blemished ...... 8.2 10.0 13 33 61 123 194 263 Total Blemished (Major & Minor) ...... 13.0 15.0 18 48 91 189 298 407 Fuzzy Character ...... 6.4 8.0 10 26 48 98 153 208 Ricey Character ...... 13.0 15.0 18 48 91 189 298 407 Soft Character ...... 2.9 4.0 6 13 24 48 74 99 Major Color Defect ...... 6.4 8.0 10 26 48 98 153 208 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43943

Total Color Defect (Major & Minor) ...... 13.8 16.0 19 51 96 200 316 430 Core Material ...... 2.17 3.0 4 11 19 37 56 76 Fragments ...... 3.8 5.0 7 17 31 61 94 127 Mechanical Damage ...... 17.6 20.0 24 63 121 251 398 544 Loose Leaves (each piece) ...... 6.4 8.0 10 26 48 98 153 208

§ 52.728 Sample size. Program (CRP) which were addressed in does not have a significant impact on The sample size used to determine rules published on May 8, 1995 (60 FR the environmental, historical, social or whether the requirements of these 22456) and March 15, 1996 (61 FR economic resources of the Nation. standards are met shall be as specified 10671) concerning the opportunity for Therefore, it has been determined that in the sampling plans and procedures in early release of certain acreage from the these actions will not require an the ‘‘Regulations Governing Inspection CRP. The modifications reflect new Environmental Assessment or an and Certification of Processed Fruits provisions enacted in the Federal Environmental Impact Statement. Agriculture Improvement and Reform and Vegetables, Processed Products Executive Order 12372 Thereof, and Certain Other Processed Act of 1996 (1996 Act). This rule also Products’’ (7 CFR 52.1 through 52.83). sets out other modifications to reflect This program is not subject to the new provisions in the 1996 Act and to provisions of Executive Order 12372, § 52.729 Acceptance criteria. make technical corrections and other which require intergovernmental (a) Style. A lot of frozen cauliflower, minor modifications to the rule. These consultation with State and local is considered as meeting the additional modifications include: officials. See notice related to 7 CFR requirements for style if the revisions of the ‘‘contour grass strip’’ part 3015, subpart V, published at 48 FR requirements in § 52.723, as applicable, and ‘‘filterstrip’’ definitions to remove 29115 (June 24, 1983). are not exceeded. size limitations; a correction of a (b) Quality Factors. A lot of frozen landlord-tenant reference in the rule; a Federal Domestic Assistance Program cauliflower is considered as meeting the reassignment of provisions dealing with The title and number of the Federal requirements for quality if: the preservation of cropland bases; and Domestic Assistance Program, as found (1) The prerequisites specified in technical changes to reflect a in the Catalog of Federal Domestic § 52.726 are met; and Department of Agriculture (USDA) Assistance, to which this rule applies, is (2) The Acceptance Numbers in Table reorganization. Further, this rule also the Conservation Program-10.069. I or II in § 52.727, as applicable, are not updates the base period for the cropping exceeded. history needed to enter cropland into Paperwork Reduction Act (c) Single Sample Unit. Each the CRP. The previous information collection unofficial sample unit submitted for DATES: This rule is effective August 27, under OMB control number 0560–0125 quality evaluation will be treated 1996. Comments concerning this rule has been reinstated with changes and individually and is considered as should be received by October 28, 1996, has received emergency clearance. A meeting requirements for quality and to be assured consideration. regular information collection style if: ADDRESSES: Comments and requests for submission will be submitted pursuant (1) The prerequisites specified in additional information should be to the Paperwork Reduction Act of 1995. § 52.726 are met; and (2) The requirements for style in directed to Cheryl Zavodny, Executive Order 12778 § 52.723 and the Acceptable Quality Conservation and Environmental Levels (AQL’s) in Tables I & II in Protection Division, FSA, P.O. Box This interim rule has been reviewed § 52.727, as applicable, are not 2415, STOP Box 0513, Room 4768–S, in accordance with Executive Order exceeded. Washington, DC 20013–2415, telephone 12778. The provisions of this rule are 202–720–7333. not retroactive and preempt State and Dated: August 21, 1996. FOR FURTHER INFORMATION CONTACT: local laws to the extent such laws are Robert C. Keeney, Cheryl Zavodny, (202) 720–7333. inconsistent with the provisions of this Director, Fruit and Vegetable Division. rule. Before any action may be brought SUPPLEMENTARY INFORMATION: [FR Doc. 96–21783 Filed 8–26–96; 8:45 am] in a Federal court of competent BILLING CODE 3410±02±P Executive Order 12866 jurisdiction, the administrative appeal This interim rule has been determined rights afforded program participants at 7 to be significant and was reviewed by CFR parts 11, 624, and 780 must be Farm Service Agency OMB under Executive Order 12866. exhausted. Commodity Credit Corporation Regulatory Flexibility Act Background 7 CFR Parts 704 and 1410 It has been determined that the Current regulations in 7 CFR part 704 Regulatory Flexibility Act is not and 7 CFR part 1410 implement the RIN 0560±AE84 applicable to this interim rule because CRP, which was first authorized by Title XII of the Food Security Act of 1985 1986±1990 Conservation Reserve neither FSA nor the Commodity Credit (1985 Act). Acreage enrolled in signups Program; 1991±2002 Conservation Corporation (CCC) is required by 5 held from 1986 through 1990 are Reserve Program U.S.C. 553 or any other provision of law to publish a notice of proposed controlled by regulations in 7 CFR part AGENCY: Farm Service Agency and rulemaking with respect to the subject 704 whereas acreage enrolled in Commodity Credit Corporation, USDA. matter of this rule. subsequent signups is controlled under ACTION: Interim rule. part 1410. In the CRP, the CCC pays Environmental Evaluation owners and operators of highly erodible SUMMARY: This interim rule modifies It has been determined by an and other environmentally sensitive provisions for the Conservation Reserve environmental evaluation that this rule cropland to convert the land to a 43944 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations conserving use cover for a period of at insure that the limitations of the Environmental indicators, Natural least 10 years. Because of a desire to program to cropland are applied as fully resources, and Technical assistance. redirect CRP to more sensitive land, as possible consistent with the goals of 7 CFR Part 1410 interim rules published May 8, 1995, the program. and March 15, 1996, allowed for an The Department seeks public Administrative practices and early release of some acreage from some comment regarding the acreage procedures, Base protection, contracts. Subsequently, in the 1996 determined ineligible for early release. Conservation plan, Contracts, Act, enacted on April 4, 1996, CRP The Secretary determined, in addition Environmental indicators, Natural enrollments were re-authorized through to the acreage excluded by statute, resources, and Technical assistance. 2002, and with respect to existing acreage enrolled under wetland criteria Accordingly, 7 CFR parts 704 and contracts it was provided that certain during signup periods 8 and 9 and 1410 are amended as follows: CRP participants could unilaterally acreage on which a CRP useful life obtain an early release of contracts easement is filed will not be eligible. A PART 704Ð1986±1990 entered into before January 1, 1995, if cost/benefit analysis was conducted to CONSERVATION RESERVE PROGRAM the contract had been in effect for at evaluate two options concerning the least 5 years. Under the statute, there is types of enrolled acreage that would not 1. The authority citation for 7 CFR a 60 day waiting period before the be eligible for early release under this Part 704 continues to read as follows: application to terminate is effective. rule. The first (selected) option included Authority: 15 U.S.C. 714b and 714c; 16 That termination will not relieve the the acreage and cover types listed in U.S.C. 3801–3847. participant of liability for a pre-existing sections 704.20 and 1410.116. The § 704.1 [Amended] contract violation. The 1996 Act second option added wetland not provides that land which is not eligible enrolled in the eighth and ninth 2. Section 704.1 is amended by for the early termination includes signups, buffer acreage for all wetland, adding ‘‘, as amended’’ after ‘‘(Pub. L. filterstrips, grass waterways, riparian wellhead protection acres, and acres 99–198).’’ areas, field windbreaks, shelterbelts, affected by scour erosion to the list. § 704.2 [Amended] shallow water areas, acreage with an About 1.7 million fewer acres would be erodibility index of more than 15, and eligible for early release under the 3. Section 704.2(a)(23) is amended by other lands of high environmental value second option and almost 110,000 fewer adding the words ‘‘or as otherwise (including wetlands), as may be acres would have been released early. authorized by the Secretary’’ after the determined by the Secretary. This rule The increased plantings from the higher word ‘‘Department.’’ implements those provisions and amount of early release acreage under § 704.3 [Amended] modifies the May 1995, and March the first option would have minimal 4. Section 704.3 is amended in 1996, interim rules accordingly. In impacts on farm prices and income. CRP paragraph (a) by removing the words addition, Title III of the 1996 Act (which payments would be $6 million lower ‘‘State ASC Committees (STC) and covers a number of conservation issues under the second option, if none of the County ASC Committees (COC)’’ and for the CRP and other programs) allows withdrawn acres are replaced with new adding in their place the words ‘‘State for the Secretary to permit technical enrollments until after they would have FSA committees (STC) and county FSA assistance in connection with the normally expired. The loss of committees (COC)’’; in paragraph (b) by creation of new enrollments to be environmental benefits under the first removing the words ‘‘Soil Conservation obtained from private sources. That option would be only slightly larger Service (SCS)’’ and adding in their place provision has also been incorporated than under the second option. For the words ‘‘Natural Resources into the regulations. Other changes to additional information or to obtain a Conservation Service (NRCS)’’; in reflect the new legislation include copy of the cost/benefit analysis, contact paragraph (d) by removing the words modifications in the 1996 rule which Tom Browning, USDA/FSA/EPAS, P.O. ‘‘Extension Service (ES)’’ and adding in change the CRP statute to reduce from Box 2415 STOP 0519, Washington, D.C. their place ‘‘Cooperative State Research, 3 to 1 the number of years which an 20013–2415. owner or operator of cropland must This interim rule had a statutory Education and Extension Service’’. have that status prior to offering land for requirement to be issued within 90 days § 704.7 [Amended] enrollment in the CRP. following enactment of the Federal 5. Section 704.7 is amended in In addition, this rule makes certain Agriculture Improvement and Reform paragraph (a)(3)(ii) by removing ‘‘SCS’’ technical changes to the rule. These Act of 1996 on April 4, 1996, as and adding in its place ‘‘NRCS’’; in include: (1) Affording more flexibility in required by Section 1243(c) of the 1985 paragraph (d)(4) by removing the word enrollments by removing size limits in Act, as amended by the 1996 Act. the definitions of filterstrip and contour ‘‘exceeded’’ and adding the word Because the modifications in this rule grass strip; (2) correcting the reference ‘‘adjusted’’ in its place and by removing are required by law, technical in nature, to the general regulations governing ‘‘SCS’’ and adding ‘‘NRCS’’ in its place; do not limit any entitlement, and/or landlord-tenant matters and in paragraphs (e)(1) and (e)(8) by involve the provisions of immediate assignments and moving the reference removing ‘‘SCS’’ and adding ‘‘NRCS’’ in benefits provided for in the 1996 Act, it concerning the preservation of cropland its place. has been determined that the delay of bases from its former position in part this rule pending comment would be 719, and; (3) changing references from § 704.9 [Amended] contrary to both the law and the public SCS to Natural Resources Conservation 6. Section 704.9 is amended in interest. Service. paragraph (a) by removing the words Further, the rule is amended to List of Subjects ‘‘Soil Conservation Service (SCS)’’ and change the 1986–1990 base period adding the words ‘‘NRCS or another previously used to determine whether 7 CFR Part 704 source as approved by the NRCS, in land qualifies as cropland for CRP Administrative practices and consultation with FSA’’ in its place; in purposes. The new base period will be procedures, Base protection, paragraphs (b) and (d) by removing a 1992–1996 base period. This is to Conservation plan, Contracts, ‘‘SCS’’ and adding in its place ‘‘NRCS.’’ Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43945

§ 704.18 [Amended] § 704.27 [Amended] determining the likelihood of improved 7. Section 704.18 is amended by 11. Section 704.27 is amended in water quality, and adequacy of the removing the words ‘‘part 709, paragraph (b) by removing ‘‘SCS’’ and planned practice to achieve desired Assignment of Payment’’ and adding in adding in its place ‘‘NRCS.’’ objectives, shall be determined by the their place the words ‘‘part 1404, 12. Section 704.30 is amended by Natural Resource Conservation Service Assignment of Payments.’’ adding paragraph (c) as follows: (NRCS) in accordance with the local field office technical guide or other 8. Section 704.20 is amended in § 704.30 Miscellaneous. paragraph (b) by removing ‘‘SCS’’ and guidelines deemed appropriate by the adding in its place ‘‘NRCS’’, and * * * * * NRCS, except that no such paragraph (a)(4) is revised to read as (c) Cropland acreage established and determination by the NRCS shall follows: maintained in vegetative cover under compel CCC to execute a contract which CRP, including approved volunteer CCC does not believe will serve the § 704.20 Contract modifications. cover, shall retain its cropland purposes of the program established by (a) * * * classification for the period of time that this part. (4) Terminate contracts enrolled in the cover is maintained or as otherwise * * * * * CRP before January 1, 1995, which have established by the Deputy (g) State FSA committees, with NRCS, been in effect for at least 5 years as Administrator. may develop a State ranking process to determined by CCC. Contract acreage PART 1410Ð1991±1995 evaluate acreage based on State specific located within an average of 100 feet of CONSERVATION RESERVE PROGRAM goals and objectives. Such STC’s may a perennial stream or other permanent choose between developing a State waterbody, on which a CRP easement is 13. The authority citation for 7 CFR ranking process or utilizing a national filed, that was enrolled under the Part 1410 continues to read as follows: ranking process. States’ ranking wetland eligibility criteria established in Authority: 15 U.S.C. 714b and 714c; 16 processes shall be developed based on signup periods eight and nine, and U.S.C. 3831–3847. recommendations from State Technical contract acreage on which there exist committees, follow national guidelines, 14. The title of Part 1410 is amended the following practices installed or and be approved by the Deputy by removing ‘‘1991–95’’ and adding developed as a result of participation in Administrator.’’ ‘‘1991–2002’’ in its place. the CRP or are otherwise required by the * * * * * NRCS local Field Office Technical § 1410.1 [Amended] § 1410.3 [Amended] Guide are not eligible for termination 15. Section 1410.1 is amended by prior to the expiration date of the adding, ‘‘as amended’’ after ‘‘Food 18. Section 1410.3(b) is amended by: contract as provided in this paragraph: Security Act of 1985.’’ removing the definition of ‘‘SCS’’; grass waterways; filter strips; shallow placing the definition of ‘‘FSA’’ in its water areas for wildlife; bottomland § 1410.2 [Amended] correct alphabetical position; and in the timber established on wetlands; field 16. Section 1410.2 is amended by: definition of ‘‘Highly erodible land’’ windbreaks; and, shelterbelts. In removing the words ‘‘Soil Conservation removing ‘‘SCS’’ and adding ‘‘NRCS’’ in addition, for any land for which an early Service (SCS)’’ in paragraph (f)(2) and its place. termination is sought, the land must adding ‘‘NRCS’’ in their place; in 19. Section 1410.3(b) is further have an EI of 15 or less. With respect to paragraph (h) removing the words amended by adding, at its appropriate any terminations made under this ‘‘Extension Service (ES)’’ and adding in alphabetical location, a new definition paragraph (a)(4): their place the words ‘‘Cooperative State for ‘‘NRCS’’ and by revising the (i) The termination shall become Research, Education, and Extension definitions of ‘‘Contour grass strip’’, effective 60 days from the date the Service (CSREES)’’; and redesignating ‘‘Filterstrip’’, and ‘‘FSA’’, to read as participant(s) submits notification to paragraphs (g) and (h) as (h) and (i) follows: CCC of the participant’s desire to respectively. * * * * * terminate the contract; 17. Section 1410.2 is further amended ‘‘Contour grass strip means a (ii) Acreage terminated under this by revising paragraphs (a) and (f)(1) and vegetation area that follows the contour provision is eligible to be re-offered for adding a new paragraph (g), to read as of the land, whose width is determined CRP during future signup periods follows: by the NRCS local office Field Office providing the acreage otherwise meets § 1410.2 Administration. Technical Guide and whose designation the eligibility criteria established for is included as a contour grass strip by (a) The regulations in this part will be that signup; and, a conservation plan required under this administered under the general (iii) Participants shall be required to part;’’ meet conservation compliance supervision and direction of the Executive Vice President, Commodity * * * * * requirements of 7 CFR part 12 to the ‘‘Filterstrip means a strip or area of extent applicable to other land. Credit Corporation (CCC), and the Administrator, Farm Service Agency vegetation of a width determined * * * * * (FSA), through the Deputy appropriate for the purpose by the § 704.24 [Amended] Administrator for Farm Programs, FSA. NRCS local office Field Office Technical In the field, the regulations in this part Guide;’’ 9. Section 704.24 is amended by ‘‘FSA means the Farm Service Agency removing all references therein to will be administered by the State and county FSA committees (‘‘State of the United States Department of ‘‘SCS’’ and adding in their place Agriculture;’’ ‘‘NRCS.’’ committees’’ and ‘‘county committees,’’ respectively). * * * * * § 704.26 [Amended] * * * * * ‘‘NRCS means the Natural Resources 10. Section 704.26 is amended by (f)(1) The erosion index (EI), Conservation Service of the United removing ‘‘713.109 and 713.150’’ and suitability of land for permanent States Department of Agriculture;’’ adding in its place ‘‘1413.150.’’ vegetative or water cover, factors for * * * * * 43946 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

20. Section 1410.13 is amended by which an early termination is sought, Specialist, Northwest Marketing Field adding paragraph (d) to read as follows: the land must have an EI of 15 or less. Office, Fruit and Vegetable Division, With respect to terminations under this AMS, USDA, Green-Wyatt Federal § 1410.13 Miscellaneous. paragraph: Building, room 369, 1220 Southwest * * * * * (i) The termination shall become Third Avenue, Portland, OR 97204, (d) Cropland acreage established and effective 60 days from the date the telephone 503–326–2724, FAX 503– maintained in vegetative cover under participant(s) submit notification to CCC 326–7440. Small businesses may request CRP, including approved volunteer of the participant’s desire to terminate information on compliance with this cover, shall retain its cropland the contract; regulation by contacting: Jay Guerber, classification for the period of time that (ii) Acreage terminated under this Marketing Order Administration the cover is maintained or as otherwise provision is eligible to be re-offered for Branch, Fruit and Vegetable Division, established by the Deputy CRP during future signup periods AMS, USDA, P.O. Box 96456, room Administrator. providing the acreage otherwise meets 2523–S, Washington, DC 20090–6456, the eligibility criteria established for § 1410.102 [Amended] telephone 202–720–2491, FAX 202– that signup; and, 720–5698. 21. Section 1410.102 is amended in (iii) Participants shall be required to paragraphs (a) and (b) by removing ‘‘3 meet conservation compliance SUPPLEMENTARY INFORMATION: This rule years’’ and adding in its place ‘‘1 year.’’ requirements of 7 CFR part 12 to the is issued under Marketing Agreement extent applicable to other land. No. 97 and Order No. 948, both as § 1410.103 [Amended] amended regulating the handling of 22. Section 1410.103 is amended: * * * * * Signed at Washington, DC, on August 19, Irish potatoes grown in Colorado, In paragraph (a)(1) by removing ‘‘1986 hereinafter referred to as the ‘‘order.’’ through 1990’’ and adding in its place 1996. Bruce R. Weber, The order is effective under the ‘‘1992 through 1996’’; Agricultural Marketing Agreement Act In paragraph (b)(4) by removing the Acting Administrator, Farm Service Agency and Executive Vice President, Commodity of 1937, as amended (7 U.S.C. 601–674), word ‘‘exceeded’’ and adding in its hereinafter referred to as the ‘‘Act.’’ place the word ‘‘adjusted’’ and by Credit Corporation. removing ‘‘SCS’’ and adding in its place [FR Doc. 96–21624 Filed 8–26–96; 8:45 am] The Department is issuing this rule in conformance with Executive Order ‘‘NRCS’’; BILLING CODE 3410±05±P In paragraph (c) by removing ‘‘SCS’’ 12866. wherever it appears and adding in its This rule has been reviewed under place ‘‘NRCS’’; and Agricultural Marketing Service Executive Order 12988, Civil Justice In paragraph (f)(2) by removing ‘‘part Reform. Under the marketing order now 703’’ and adding in its place ‘‘part 620’’. 7 CFR Part 948 in effect, Colorado potato handlers are [Docket No. FV96±948±1 FIR] subject to assessments. Funds to § 1410.111 [Amended] administer the order are derived from 23. Section 1410.111 is amended: Irish Potatoes Grown in Colorado; such assessments. It is intended that the In paragraph (a) by adding after the Assessment Rate assessment rate as issued herein will be words ‘‘conservation district,’’ the applicable to all assessable potatoes words ‘‘or another source as approved AGENCY: Agricultural Marketing Service, USDA. beginning July 1, 1996, and continuing by the NRCS,’’ and until amended, suspended, or ACTION: Final rule. In paragraph (a) removing ‘‘SCS’’ and terminated. This rule will not preempt adding in its place ‘‘NRCS’’. SUMMARY: The Department of any State or local laws, regulations, or 24. Section 1410.116 is amended by Agriculture (Department) is adopting as policies, unless they present an revising paragraph (a)(5) to read as a final rule, with a correction, the irreconcilable conflict with this rule. follows: provisions of an interim final rule that The Act provides that administrative § 1410.116 Contract modifications. established an assessment rate for the proceedings must be exhausted before (a) * * * Colorado Potato Administrative parties may file suit in court. Under (5) Terminate contracts enrolled in Committee, Northern Colorado Office section 608c(15)(A) of the Act, any CRP before January 1, 1995, which have (Area III) (Committee) under Marketing handler subject to an order may file been in effect for at least 5 years. Order No. 948 for the 1996–97 and with the Secretary a petition stating that Contract acreage located within an subsequent fiscal periods. The the order, any provision of the order, or average of 100 feet of a perennial stream Committee is responsible for local any obligation imposed in connection or other permanent waterbody, on administration of the marketing order with the order is not in accordance with which a CRP easement is filed, that was which regulates the handling of Irish law and request a modification of the enrolled under the wetland eligibility potatoes grown in Colorado. order or to be exempted therefrom. Such criteria established in signup periods 8 Authorization to assess potato handlers handler is afforded the opportunity for and 9, and contract acreage on which enables the Committee to incur a hearing on the petition. After the there exist the following practices, expenses that are reasonable and hearing the Secretary would rule on the installed or developed as a result of necessary to administer the program. petition. The Act provides that the participation in the CRP or as otherwise EFFECTIVE DATE: Effective on July 1, district court of the United States in any required by the NRCS local Field Office 1996. district in which the handler is an Technical Guide, are not eligible for FOR FURTHER INFORMATION CONTACT: inhabitant, or has his or her principal termination prior to the expiration date Martha Sue Clark, Program Assistant, place of business, has jurisdiction to of the contract as provided in this Marketing Order Administration review the Secretary’s ruling on the paragraph: grass waterways; filter strips; Branch, Fruit and Vegetable Division, petition, provided an action is filed not shallow water areas for wildlife; AMS, USDA, P.O. Box 96456, room later than 20 days after the date of the bottomland timber established on 2523–S, Washington, DC 20090–6456, entry of the ruling. wetlands; field windbreaks; and, telephone 202–720–9918, FAX 202– Pursuant to requirements set forth in shelterbelts. In addition, for any land for 720–5698, or Dennis L. West, Marketing the Regulatory Flexibility Act (RFA), the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43947

Agricultural Marketing Service (AMS) Committee for the 1996–97 year include appropriate, approved by the has considered the economic impact of $11,500 for the manager’s salary, $2,400 Department. this rule on small entities. for rent, and $1,500 for office supplies, After consideration of all relevant The purpose of the RFA is to fit the same as in 1995–96. material presented, including the regulatory actions to the scale of The assessment rate recommended by information and recommendation business subject to such actions in order the Committee was derived by dividing submitted by the Committee and other that small businesses will not be unduly anticipated expenses by expected available information, it is hereby found or disproportionately burdened. shipments of Colorado Area III potatoes. that this rule, as hereinafter set forth, Marketing orders issued pursuant to the Potato shipments for the year are will tend to effectuate the declared Act, and the rules issued thereunder, are estimated at 1,450,750 hundredweight unique in that they are brought about which should provide $14,507.50 in policy of the Act. through group action of essentially assessment income. Income derived This final rule also adds a new small entities acting on their own from handler assessments, interest, and subpart heading—Handling Regulations behalf. Thus, both statutes have small rent from the sublease of office space to to the Code of Federal Regulations entity orientation and compatibility. the State inspection service, along with immediately preceding § 948.386 There are approximately 85 producers funds from the Committee’s authorized Handling regulation. of Colorado Area III potatoes in the reserve, will be adequate to cover Pursuant to 5 U.S.C. 553, it is also production area and approximately 15 budgeted expenses. Funds in the reserve found and determined that good cause handlers subject to regulation under the will be kept within the maximum exists for not postponing the effective marketing order. Small agricultural permitted by the order. date of this rule until 30 days after producers have been defined by the An interim final rule regarding this publication in the Federal Register Small Business Administration (13 CFR action was published in the June 12, because: (1) The Committee needs to 121.601) as those having annual receipts 1996, issue of the Federal Register (61 have sufficient funds to pay its expenses of less than $500,000, and small FR 29635). That interim final rule added which are incurred on a continuous agricultural service firms are defined as § 948.215 to establish an assessment rate basis; (2) the 1996–97 fiscal period those whose annual receipts are less for the Committee. That rule provided than $5,000,000. The majority of that interested persons could file began on July 1, 1996, and the Colorado Area III potato producers and comments through July 12, 1996. No marketing order requires that the rate of handlers may be classified as small comments were received. assessment for each fiscal period apply entities. While this rule will impose some to all assessable potatoes handled The Colorado potato marketing order additional costs on handlers, the costs during such fiscal period; (3) handlers provides authority for the Committee, are in the form of uniform assessments are aware of this action which was with the approval of the Department, to on all handlers. Some of the additional unanimously recommended by the formulate an annual budget of expenses costs may be passed on to producers. Committee at a public meeting and is and collect assessments from handlers However, these costs will be offset by similar to other assessment rate actions to administer the program. The the benefits derived by the operation of issued in past years; and (4) an interim members of the Committee are the marketing order. Therefore, the AMS final rule was published on this action producers and handlers of Colorado has determined that this rule will not and provided for a 30-day comment Area III potatoes. They are familiar with have a significant economic impact on period, and no comments were received. the Committee’s needs and with the a substantial number of small entities. List of Subjects in 7 CFR Part 948 costs for goods and services in their The assessment rate established in local area and are thus in a position to this rule will continue in effect Marketing agreements, Potatoes, formulate an appropriate budget and indefinitely unless modified, Reporting and recordkeeping assessment rate. The assessment rate is suspended, or terminated by the requirements. formulated and discussed in a public Secretary upon recommendation and meeting. Thus, all directly affected information submitted by the Accordingly, the interim final rule persons have an opportunity to Committee or other available amending 7 CFR part 948 which was participate and provide input. information. published at 61 FR 29635 on June 12, In Colorado, both a State and a Although this assessment rate is 1996, is adopted as a final rule with the Federal marketing order operate effective for an indefinite period, the following change: simultaneously. The State order Committee will continue to meet prior authorizes promotion, including paid to or during each fiscal period to PART 948ÐIRISH POTATOES GROWN advertising, which the Federal order recommend a budget of expenses and IN COLORADO does not. All expenses in this category consider recommendations for are financed under the State order. The modification of the assessment rate. The 1. The authority citation for 7 CFR jointly operated programs consume dates and times of Committee meetings part 947 continues to read as follows: about equal administrative time and the are available from the Committee or the Authority: 7 U.S.C. 601–674. two orders continue to split Department. Committee meetings are administrative costs equally. open to the public and interested 2. Part 948 is amended by adding a The Committee met on April 11, 1996, persons may express their views at new subpart heading immediately and unanimously recommended 1996– those meetings. The Department will preceding § 948.386 to read as follows: 97 expenditures of $24,462.50 and an evaluate Committee recommendations assessment rate of $0.01 per and other available information to SubpartÐHandling Regulations hundredweight of potatoes. In determine whether modification of the Dated: August 21, 1996. comparison, last year’s budgeted assessment rate is needed. Further expenditures were $27,362.50. The rulemaking will be undertaken as Robert C. Keeney, assessment rate of $0.01 is $0.01 less necessary. The Committee’s 1996–97 Director, Fruit and Vegetable Division. than last year’s established rate. Major budget and those for subsequent fiscal [FR Doc. 96–21750 Filed 8–26–96; 8:45 am] expenditures recommended by the periods will be reviewed and, as BILLING CODE 3410±02±P 43948 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

DEPARTMENT OF JUSTICE fourth and fifth lines, remove the phrase Bank Examiner (202/874–5170), Office ‘‘take the oath of allegiance’’ and insert of the Chief National Bank Examiner; Immigration and Naturalization Service the phrase: ‘‘make his or her claim’’. David Thede, Senior Attorney (202/874– 5210), Securities and Corporate 8 CFR Part 301 Dated: August 22, 1996. Doris Meissner, Practices Division; or Mark Tenhundfeld, Senior Attorney (202/ [INS No. 1736±95] Commissioner, Immigration and Naturalization Service. 874–5090), Legislative and Regulatory RIN 1115±AE19 Activities Division, Office of the [FR Doc. 96–21804 Filed 8–26–96; 8:45 am] Comptroller of the Currency, 250 E Acquisition of Citizenship; Equal BILLING CODE 4410±10±M Treatment of Women in Conferring Street, SW, Washington, DC 20219. Board of Governors: David Wright, Citizenship on Children Born Abroad Project Manager (202/728–5854), DEPARTMENT OF THE TREASURY AGENCY: Immigration and Naturalization Division of Banking Supervision and Regulation; Gregory A. Baer, Managing Service, Justice. Office of the Comptroller of the Senior Counsel (202/452–3236), Legal ACTION: Correction to the interim rule. Currency Division, Board of Governors of the SUMMARY: This regulation contains 12 CFR Part 30 Federal Reserve System. For the hearing corrections to the interim regulation, impaired only, Telecommunication published Friday, July 5, 1996, at 61 FR [Docket No. 96±19] Device for the Deaf (TDD), Dorothea 35111, establishing procedures for RIN 1557±AB17 Thompson (202/452–3544), Board of certain United States citizen women to Governors of the Federal Reserve confer citizenship on their children FEDERAL RESERVE SYSTEM System, 20th and C Streets, NW, born outside of the United States before Washington, DC 20551. noon (Eastern Standard Time) May 24, 12 CFR Part 208 FDIC: Robert W. Walsh, Manager, Planning and Program Development 1934. [Docket No. R±0766] EFFECTIVE DATES: July 5, 1996. (202/898–6911) or Michael D. Jenkins, Examination Specialist (202/898–6896), FOR FURTHER INFORMATION CONTACT: Jane FEDERAL DEPOSIT INSURANCE CORPORATION Division of Supervision; or Susan B. Barker, Adjudications Officer, vandenToorn, Counsel (202/898–8707), Adjudications Branch, Immigration and 12 CFR Part 364 or Nancy L. Alper, Counsel (202/736– Naturalization Service, 425 I Street, 0828), Legal Division, Federal Deposit NW., Room 3214, Washington, DC RIN 3064±AB13 Insurance Corporation, 550 17th Street, 20536, telephone (202) 514–5014. DEPARTMENT OF THE TREASURY NW, Washington, DC 20429. SUPPLEMENTARY INFORMATION: The OTS: William Magrini, Senior Project Immigration and Naturalization Service Manager (202/906–5744), Supervision Office of Thrift Supervision (Service) published an interim rule in Policy; or Kevin Corcoran, Assistant the Federal Register on July 5, 1996, at Chief Counsel (202/906–6962), or Teri 12 CFR Part 570 61 FR 35111 which became effective M. Valocchi, Counsel (Banking and upon date of publication. In the interim [No. 96±53] Finance) (202/906–7299), Chief rule persons residing outside the United RIN 1550±AA97 Counsel’s Office, Office of Thrift States are directed to ‘‘take the oath of Supervision, 1700 G Street, NW, allegiance abroad before any diplomatic Interagency Guidelines Establishing Washington, DC 20552. or consular officer of the United States Standards for Safety and Soundness ** *’’ This reference has been SUPPLEMENTARY INFORMATION: removed because the Department of AGENCIES: Office of the Comptroller of I. Background State does not require an oath of the Currency, Treasury; Board of A. Statutory Framework allegiance in connection with passport Governors of the Federal Reserve applications. System; Federal Deposit Insurance Section 132 of the Federal Deposit Corporation; and Office of Thrift Insurance Corporation Improvement Act Corrections Supervision, Treasury. of 1991 (FDICIA), Pub. L. 102–242, 1. On page 35112, in the first column, ACTION: Final guidelines. amended the Federal Deposit Insurance in the second paragraph, in the fourth Act (FDI Act) by adding a new section and fifth lines, remove the phrase: ‘‘for SUMMARY: The Office of the Comptroller (section 39, codified at 12 U.S.C. 1831p– an interview under oath concerning’’ of the Currency (OCC), the Board of 1) that requires each Federal banking and insert the phrase: ‘‘to make’’. Governors of the Federal Reserve agency to establish by regulation certain 2. On page 35112, in the second System (Board of Governors), the safety and soundness standards for the column, in Part 301—Nationals and Federal Deposit Insurance Corporation insured depository institutions and Citizens of the United States at Birth, in (FDIC), and the Office of Thrift depository institution holding the table of contents, under ‘‘Sec.’’, the Supervision (OTS) (collectively, the companies for which it is the primary reference to ‘‘301.0 Procedures.’’ is agencies) are amending the Interagency Federal regulator. As enacted in FDICIA, corrected to ‘‘301.1 Procedures.’’ Guidelines Establishing Standards for section 39(b) of the FDI Act required the Safety and Soundness (Guidelines) to agencies to establish standards by § 301.1 [Corrected] include asset quality and earnings regulation specifying a maximum ratio 3. On page 35112, in the second standards. The Guidelines were adopted of classified assets to capital and column, in § 301.1(a)(2), in the fourth pursuant to section 39 of the Federal minimum earnings sufficient to absorb line, the reference to ‘‘301(H)’’ is Deposit Insurance Act (FDI Act). losses without impairing capital. corrected to read: ‘‘301(h)’’. EFFECTIVE DATE: October 1, 1996. Section 318(a) of the Riegle 4. On page 35112, in the third FOR FURTHER INFORMATION CONTACT: Community Development and column, in paragraph (b)(2), in the OCC: Emily R. McNaughton, National Regulatory Improvement Act of 1994 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43949

(CDRIA), Pub. L. 103–325, which was losses on those and other assets; (3) take determination of CAMEL ratings. enacted on September 23, 1994, appropriate corrective action to resolve Another commenter emphasized that eliminated the application of section 39 problem assets; and (4) provide periodic institutions need flexibility in to depository institution holding asset quality reports to the board of determining earnings benchmarks and companies and replaced the directors to assess the level of asset risk. defining the appropriate peer group. A requirement that the agencies ‘‘specify’’ The proposal noted that the complexity third commenter suggested that the quantitative asset quality and earnings and sophistication of an institution’s agencies eliminate the earnings standard standards with a requirement that the monitoring, reporting systems, and directing each institution to evaluate the agencies prescribe standards, by corrective actions should be effect of nonrecurring or extraordinary regulation or by guideline, relating to commensurate with the size, nature, and income or expense. This commenter asset quality and earnings that the scope of the institution’s operations. believed such an evaluation was agencies determine to be appropriate. The agencies proposed earnings effectively required by the separate standards requiring monitoring and standard requiring the institution to B. Agencies’ Proposals reporting systems similar to those assess the source, volatility, and The agencies published a joint notice required in the standards for asset sustainability of earnings. Finally, one of proposed rulemaking in the Federal quality. The proposed earnings commenter asked that institutions be Register on November 18, 1993 (59 FR standards were intended to enhance given the option of complying with 60802) that solicited comment on early identification and resolution of quantitative standards. specific standards that would govern problems. The standards required an III. Final Guidelines numerous facets of a depository institution to compare its earnings institution’s operations, including trends, relative to equity, assets, and The agencies are adopting the asset quantitative standards governing a other common benchmarks, with its quality and earnings standards depository institution’s asset quality historical experience and with the substantially as proposed. These and earnings. On July 10, 1995 (60 FR earnings trends of its peers. The qualitative standards are sufficiently 35674), the agencies adopted: (1) final proposed standards also provided that flexible to permit an institution to adopt guidelines in all areas except asset an institution should: (1) evaluate the practices that are consistent with safe quality and earnings; and (2) a final rule adequacy of earnings given the and sound banking practices and that establishing deadlines for submission institution’s size, and complexity, and are appropriate for the institution. and review of safety and soundness the risk profile of the institution’s assets Moreover, the standards are designed to compliance plans which may be and operations; (2) assess the source, prompt a depository institution to take required for failure to meet one or more volatility, and sustainability of earnings; steps that will help identify emerging of the safety and soundness standards (3) evaluate the effect of nonrecurring or problems in the institution. 1 The final rule makes two minor adopted in the Guidelines. On the same extraordinary income or expense; (4) changes to the asset quality standards. day (60 FR 35688), the agencies also take steps to ensure that earnings are First, the order of the steps a depository proposed revised guidelines concerning sufficient to maintain adequate capital institution is to take is rearranged to asset quality and earnings standards to and reserves after considering asset reflect more accurately the appropriate address problems noted by many quality and the institution’s rate of commenters with the quantitative sequence of these steps. Second, the growth; and (5) provide periodic reports standards. The primary concern of these final rule deletes the word ‘‘quality’’ in with adequate information for commenters was that it was impossible the standard requiring periodic asset management and the board of directors to design quantitative standards that reports (asset quality standard 6 in the to assess earnings performance. would be appropriate for every final guidelines). This change was made regulated institution. Because the II. Discussion of Comments to emphasize that the report is to CDRIA clarified that quantitative The agencies received a total of 31 2 address each of the asset quality standards were not required, the comments, some of which were sent to standards, as appropriate, and not focus agencies proposed to replace the more than one agency. Commenters solely on problem assets. In response to quantitative standards with more were overwhelmingly supportive of the the comment about the redundant comprehensive qualitative standards proposal, particularly its reliance on earnings standards, the final rule that emphasize monitoring, reporting, qualitative and flexible standards in lieu combines the two standards concerning and preventive or corrective action of the quantitative standards originally the nonrecurring income and appropriate to the size of the institution proposed. Commenters noted that the sustainability of income. The agencies and the nature and scope of its more flexible guidelines embodied in agree that these standards need not be activities. the second proposed rule built upon a listed separately, given the significant The proposed asset quality standards depository institution’s own procedures overlap in what they address. A required an institution to identify for monitoring, reporting, and taking discussion of the remaining comments problem assets and estimate inherent action with respect to asset quality and follows. losses. The proposal also required an Impact on examinations and ratings. earnings conditions. Commenters agreed institution to: (1) consider the size and The guidelines will not change the that well run institutions would not potential risks of material examination process or the have to alter their practices in order to concentrations of credit risk; (2) determination of CAMEL ratings. These comply with the proposed standards. compare the level of problem assets to Some commenters suggested guidelines represent the agencies’ the level of capital and establish amendments to the proposal. One longstanding expectation regarding an reserves sufficient to absorb anticipated commenter asked the agencies to clarify institution’s management of asset how the proposed standards interact quality and earnings, and, as such, will 1 For the OCC, these Guidelines appear as with the examination process and the not require a change in the agencies’ Appendix A to part 30; for the Board of Governors, examination procedures or the these Guidelines appear as Appendix D to part 208; for the FDIC, these Guidelines appear as Appendix 2 The Board of Governors received 14 comments, determination of an institution’s rating. A to part 364; and for the OTS, these Guidelines while the OCC, FDIC, and OTS received 8, 6, and Definition of peer group. The agencies appear as Appendix A to part 570. 3, respectively. recognize that defining a peer group 43950 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations necessarily entails making decisions statement is required, section 205 of the entries for II.G. and II.H. to read as about which criteria to use. The Unfunded Mandates Act also requires follows: guidelines identify equity and asset data an agency to identify and consider a Appendix A to Part 30—Interagency as two commonly used benchmarks in reasonable number of regulatory Guidelines Establishing Standards for defining a peer group and expressly alternatives before promulgating a rule. Safety and Soundness state that an institution may use other The OCC and OTS have determined that commonly used benchmarks. The the final guidelines will not result in Table of Contents agencies will be flexible in permitting expenditures by State, local, and tribal * * * * * institutions to select criteria reasonably governments, or by the private sector, of II. * * * designed to provide a meaningful peer $100 million or more in any one year. G. Asset quality. group comparison. Accordingly, the OCC and the OTS have H. Earnings. Quantitative standards. The agencies not prepared a budgetary impact * * * * * have decided against returning to statement or specifically addressed any 3. Item II of appendix A to part 30 is quantitative standards in lieu of, or in regulatory alternatives. As discussed in amended by adding paragraphs G and H addition to, the standards proposed. The the preamble, the final guidelines to read as follows: agencies believe the standards represent the standards applied by the * * * * * contained in the final guidelines will agencies in examining insured encourage the adoption of practices that depository institutions, and, therefore, II. Operational and Managerial are consistent with safe and sound represent no change in the agencies’ Standards banking practices and that are policies and impose minimal new * * * * * appropriate for a given institution. Federal requirements. G. Asset quality. An insured Moreover, the agencies believe that depository institution should establish these standards will be more effective List of Subjects and maintain a system that is than quantitative standards would be in 12 CFR Part 30 commensurate with the institution’s helping identify emerging problems in a Administrative practice and size and the nature and scope of its financial institution. However, even procedure, National banks, Reporting operations to identify problem assets though the agencies are not adopting and recordkeeping requirements, Safety and prevent deterioration in those quantitative standards, the agencies will and soundness. assets. The institution should: continue to analyze asset quality ratios 1. Conduct periodic asset quality and earnings levels, and trends thereof, 12 CFR Part 208 reviews to identify problem assets; in assessing an institution. Accounting, Agriculture, Banks, 2. Estimate the inherent losses in IV. Regulatory Flexibility Act banking, Confidential business those assets and establish reserves that information, Crime, Currency, Federal Pursuant to section 605(b) of the are sufficient to absorb estimated losses; Reserve System, Mortgages, Reporting Regulatory Flexibility Act, 5 U.S.C. 3. Compare problem asset totals to and recordkeeping requirements, Safety 605(b), the agencies hereby certify that capital; and soundness, Securities. these guidelines will not have a 4. Take appropriate corrective action significant economic impact on a 12 CFR Part 364 to resolve problem assets; 5. Consider the size and potential substantial number of small entities. Administrative practice and Accordingly, a regulatory flexibility risks of material asset concentrations; procedure, Bank deposit insurance, and analysis is not required. As is explained Banks, banking, Reporting and more fully in the preamble to these 6. Provide periodic asset reports with recordkeeping requirements, Safety and adequate information for management guidelines, the guidelines are designed soundness. to illustrate what the agencies consider and the board of directors to assess the to be steps that are consistent with safe 12 CFR Part 570 level of asset risk. and sound banking practices while Accounting, Administrative practices H. Earnings. An insured depository preserving flexibility for an institution and procedures, Bank deposit institution should establish and to adopt a system that is appropriate for insurance, Holding companies, maintain a system that is commensurate its circumstances. Reporting and recordkeeping with the institution’s size and the nature and scope of its operations to evaluate V. Executive Order 12866 requirements, Savings associations, Safety and soundness. and monitor earnings and ensure that The OCC and OTS have determined earnings are sufficient to maintain that these final guidelines are not Office of the Comptroller of the Currency adequate capital and reserves. The significant regulatory actions for 12 CFR CHAPTER I institution should: purposes of Executive Order 12866. 1. Compare recent earnings trends Authority and Issuance relative to equity, assets, or other VI. OCC and OTS: Unfunded Mandates For the reasons set forth in the joint commonly used benchmarks to the Reform Act of 1995 Statement preamble, part 30 of chapter I of title 12 institution’s historical results and those Section 202 of the Unfunded of the Code of Federal Regulations is of its peers; Mandates Reform Act of 1995, Pub. L. amended as follows: 2. Evaluate the adequacy of earnings 104–4 (Unfunded Mandates Act) given the size, complexity, and risk requires that an agency prepare a PART 30ÐSAFETY AND SOUNDNESS profile of the institution’s assets and budgetary impact statement before STANDARDS operations; promulgating any rule likely to result in 1. The authority citation for part 30 is 3. Assess the source, volatility, and a Federal mandate that may result in the revised to read as follows: sustainability of earnings, including the expenditure by State, local, and tribal effect of nonrecurring or extraordinary governments, in the aggregate, or by the Authority: 12 U.S.C. 93a, 1831p–1. income or expense; private sector of $100 million or more 2. The table of contents of appendix 4. Take steps to ensure that earnings in any one year. If a budgetary impact A to part 30 is amended by adding are sufficient to maintain adequate Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43951 capital and reserves after considering 3. Compare problem asset totals to Appendix A to Part 364—Interagency the institution’s asset quality and capital; Guidelines Establishing Standards for growth rate; and 4. Take appropriate corrective action Safety and Soundness 5. Provide periodic earnings reports to resolve problem assets; Table of Contents with adequate information for 5. Consider the size and potential * * * * * management and the board of directors risks of material asset concentrations; II. * * * to assess earnings performance. and G. Asset quality. * * * * * 6. Provide periodic asset reports with H. Earnings. Dated: May 21, 1996. adequate information for management and the board of directors to assess the * * * * * Eugene A. Ludwig, 3. Item II of appendix A to part 364 level of asset risk. Comptroller of the Currency. is amended by adding paragraphs G and H. Earnings. An insured depository H to read as follows: Federal Reserve System institution should establish and 12 CFR CHAPTER II maintain a system that is commensurate * * * * * with the institution’s size and the nature Authority and Issuance II. Operational and Managerial and scope of its operations to evaluate Standards For the reasons set forth in the joint and monitor earnings and ensure that preamble, part 208 of chapter II of title earnings are sufficient to maintain * * * * * G. Asset quality. An insured 12 of the Code of Federal Regulations is adequate capital and reserves. The depository institution should establish amended as follows: institution should: and maintain a system that is 1. Compare recent earnings trends commensurate with the institution’s PART 208ÐMEMBERSHIP OF STATE relative to equity, assets, or other size and the nature and scope of its BANKING INSTITUTIONS IN THE commonly used benchmarks to the operations to identify problem assets FEDERAL RESERVE SYSTEM institution’s historical results and those and prevent deterioration in those (REGULATION H) of its peers; assets. The institution should: 1. The authority citation for part 208 2. Evaluate the adequacy of earnings 1. Conduct periodic asset quality continues to read as follows: given the size, complexity, and risk reviews to identify problem assets; profile of the institution’s assets and 2. Estimate the inherent losses in Authority: 12 U.S.C. 36, 248 (a) and (c), operations; 321–338, 461, 481, 486, 601, 611, 1814, those assets and establish reserves that 1823(j), 1831o, 1831p–1, 3906, 3909, 3310, 3. Assess the source, volatility, and are sufficient to absorb estimated losses; 3331–3351, 15 U.S.C. 78b, 78o–4(c)(5), 78q, sustainability of earnings, including the 3. Compare problem asset totals to 78q–1, 78w, 781(b), 781(i), and 1781(g). effect of nonrecurring or extraordinary capital; income or expense; 2. The table of contents of appendix 4. Take appropriate corrective action 4. Take steps to ensure that earnings D to part 208 is amended by adding to resolve problem assets; are sufficient to maintain adequate entries for II.G. and II.H. to read as 5. Consider the size and potential capital and reserves after considering follows: risks of material asset concentrations; the institution’s asset quality and and Appendix D to Part 208—Interagency growth rate; and 6. Provide periodic asset reports with Guidelines Establishing Standards for 5. Provide periodic earnings reports adequate information for management Safety and Soundness with adequate information for and the board of directors to assess the Table of Contents management and the board of directors level of asset risk. to assess earnings performance. H. Earnings. An insured depository * * * * * institution should establish and II. * * * * * * * * By order of the Board of Governors of the maintain a system that is commensurate G. Asset quality. Federal Reserve System, June 14th, 1996. with the institution’s size and the nature H. Earnings. William W. Wiles, and scope of its operations to evaluate * * * * * Secretary of the Board. and monitor earnings and ensure that 3. Item II of appendix D to part 208 earnings are sufficient to maintain Federal Deposit Insurance Corporation is amended by adding paragraphs G and adequate capital and reserves. The H to read as follows: 12 CFR CHAPTER III institution should: * * * * * Authority and Issuance 1. Compare recent earnings trends relative to equity, assets, or other II. Operational and Managerial For the reasons set forth in the joint commonly used benchmarks to the Standards preamble, part 364 of chapter III of title institution’s historical results and those * * * * * 12 of the Code of Federal Regulations is of its peers; G. Asset quality. An insured amended as follows: 2. Evaluate the adequacy of earnings depository institution should establish given the size, complexity, and risk and maintain a system that is PART 364ÐSTANDARDS FOR SAFETY profile of the institution’s assets and commensurate with the institution’s AND SOUNDNESS operations; size and the nature and scope of its 1. The authority citation for part 364 3. Assess the source, volatility, and operations to identify problem assets continues to read as follows: sustainability of earnings, including the and prevent deterioration in those effect of nonrecurring or extraordinary assets. The institution should: Authority: 12 U.S.C. 1819 (Tenth), 1831p- income or expense; 1. Conduct periodic asset quality 1. 4. Take steps to ensure that earnings reviews to identify problem assets; 2. The table of contents of appendix are sufficient to maintain adequate 2. Estimate the inherent losses in A to part 364 is amended by adding capital and reserves after considering those assets and establish reserves that entries for II.G. and II.H. to read as the institution’s asset quality and are sufficient to absorb estimated losses; follows: growth rate; and 43952 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

5. Provide periodic earnings reports 5. Consider the size and potential and transport category rotorcraft under with adequate information for risks of material asset concentrations; parts 27 and 29 of Title 14, Code of management and the board of directors and Federal Regulations (CFR) relating to to assess earnings performance. 6. Provide periodic asset reports with performance systems, propulsion and * * * * * adequate information for management airframes. By order of the Board of Directors. and the board of directors to assess the FOR FURTHER INFORMATION CONTACT: Dated at Washington, D.C. this 13th day of level of asset risk. Carroll Wright, (817) 222–5120. H. Earnings. An insured depository August 1996. Need for Correction Federal Deposit Insurance Corporation. institution should establish and In the final rule document (FR Doc. Jerry L. Langley, maintain a system that is commensurate 96–11493) published in the Federal Executive Secretary. with the institution’s size and the nature and scope of its operations to evaluate Register on May 10, 1996, (61 FR Office of Thrift Supervision and monitor earnings and ensure that 21904), on page 21908, at the end of the 12 CFR CHAPTER V earnings are sufficient to maintain first column, Item No. 14 is corrected to adequate capital and reserves. The read as follows: Authority and Issuance institution should: 14. Section 29.1305 is amended by For the reasons set forth in the joint 1. Compare recent earnings trends redesignating existing paragraphs (a)(6) preamble, part 570 of chapter V of title relative to equity, assets, or other through (a)(25) as paragraphs (a)(7) 12 of the Code of Federal Regulations is commonly used benchmarks to the through (a)(26), by adding a new amended as follows: institution’s historical results and those paragraph (a)(6), and by changing the of its peers; words ‘‘paragraph (a)(13)’’ in the text of PART 570ÐSUBMISSION AND REVIEW 2. Evaluate the adequacy of earnings redesignated paragraph (a)(13) to read as OF SAFETY AND SOUNDNESS given the size, complexity, and risk ‘‘paragraph (a)(14)’’. COMPLIANCE PLANS AND ISSUANCE profile of the institution’s assets and § 29.1305 [Corrected] OF ORDERS TO CORRECT SAFETY operations; AND SOUNDNESS DEFICIENCIES (a) * * * 3. Assess the source, volatility, and (6) An oil pressure indicator for each sustainability of earnings, including the 1. The authority citation for part 570 pressure-lubricated gearbox. effect of nonrecurring or extraordinary continues to read as follows: income or expense; * * * * * (13) A tachometer for each engine Authority: 12 U.S.C. 1831p–1. 4. Take steps to ensure that earnings that, if combined with the applicable are sufficient to maintain adequate 2. The table of contents of appendix instrument required by paragraph capital and reserves after considering A to part 570 is amended by adding (a)(14) of this section, indicates rotor the institution’s asset quality and entries for II.G. and II.H. to read as r.p.m. during autorotation. follows: growth rate; and 5. Provide periodic earnings reports * * * * * Appendix A to Part 570—Interagency with adequate information for Issued in Washington, DC, on August 22, 1996. Guidelines Establishing Standards for management and the board of directors Donald P. Byrne, Safety and Soundness to assess earnings performance. Assistant Chief Counsel for Regulations. Table of Contents * * * * * [FR Doc. 96–21853 Filed 8–26–96; 8:45 am] * * * * * Dated: June 3, 1996. II. * * * John F. Downey, BILLING CODE 4910±13±M G. Asset quality. Executive Director, Supervision. H. Earnings. [FR Doc. 96–21590 Filed 8–26–96; 8:45 am] DEPARTMENT OF COMMERCE * * * * * BILLING CODE 4810±33±P, 6210±01±P, 6714±01±P, 3. Item II of appendix A to part 570 6720±01±P National Oceanic and Atmospheric is amended by adding paragraphs G and Administration H to read as follows: * * * * * DEPARTMENT OF TRANSPORTATION 15 CFR Part 902 II. Operational and Managerial Standards Federal Aviation Administration 50 CFR Part 622 * * * * * G. Asset quality. An insured 14 CFR Parts 27 and 29 [Docket No. 950316075±6222±03; I.D. 022696A] depository institution should establish [Docket No. 28008; Amdt. 27±33, 29±40] and maintain a system that is RIN 0648±AH86 commensurate with the institution’s RIN 2120±AF65 Fisheries of the Caribbean, Gulf of size and the nature and scope of its Rotorcraft Regulatory Changes Based operations to identify problem assets Mexico, and South Atlantic; Golden on European Joint Airworthiness Crab Fishery Off the Southern Atlantic and prevent deterioration in those Requirement; Correction assets. The institution should: States; Initial Regulations; OMB 1. Conduct periodic asset quality AGENCY: Federal Aviation Control Numbers reviews to identify problem assets; Administration (FAA), DOT. AGENCY: National Marine Fisheries 2. Estimate the inherent losses in ACTION: Final rule; correction. Service (NMFS), National Oceanic and those assets and establish reserves that Atmospheric Administration (NOAA), are sufficient to absorb estimated losses; SUMMARY: This document contains a Commerce. 3. Compare problem asset totals to correction to the final rule published in ACTION: Final rule. capital; the Federal Register on May 10, 1996 4. Take appropriate corrective action (61 FR 21904). That final rule amended SUMMARY: NMFS issues this final rule to to resolve problem assets; the airworthiness standards for normal implement the approved measures of Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43953 the Fishery Management Plan for the emphasized that the FMP was necessary the Council should allow at-sea Golden Crab Fishery of the South to protect the biological integrity of the processing. Finally, the quality and Atlantic Region (FMP) and to revise the golden crab resource and to maintain value of golden crab processed at sea definition of fish trap applicable in the economic and social benefits from the would be greater than crabs landed alive exclusive economic zone (EEZ) off the fishery by establishing a controlled and whole. southern Atlantic states. This rule access program. The Council remains Response: NMFS agrees with the restricts the harvest or possession of concerned about the potential for Council’s position that landing crabs golden crab in or from the EEZ off the overfishing this resource. Finally, the whole is necessary to ensure that southern Atlantic states and controls Council disagrees with NMFS females and undersized crabs are not access to the fishery. In addition, NMFS concerning the mandatory 100 percent taken. informs the public of the approval by logbook action that NMFS disapproved. Comment: The commenter questioned the Office of Management and Budget Response: NMFS agrees with the the necessity of owning a vessel in order (OMB) of the collection-of-information Council concerning the need for the to obtain a permit. requirements contained in this rule and FMP. As stated in the proposed rule, Response: Among the factors publishes the OMB control numbers for NMFS intends to select 100 percent of considered by the Council in these collections. The intended effect of vessels for sampling until circumstances determining the criteria for initial this rule is to conserve and manage the change. NMFS believes that the permits is current participation in the golden crab fishery. Southeast Regions’ Science and fishery. NMFS concurs in the Council’s use of the requirement as an indication EFFECTIVE DATES: September 26, 1996; Research Director (SRD) should determine the sampling protocol for this of current participation in the fishery. except that the amendments to 15 CFR Comment: The middle zone should be part 902, 50 CFR 622.1, 622.2, 622.4(d), fishery. Comment: Four fishing companies combined with the northern zone for and 622.7(b) and the additions 50 CFR fishing purposes. 622.17 (b) through (f) and (h) are and one seafood retailer, located in Florida, strongly supported the golden Response: The Council decided to effective August 27, 1996; and the establish three zones based on historical amendments to 50 CFR 622.4(a)(4), crab FMP. They noted that this is a new fishery and they prefer that NMFS act fishing patterns, an estimate of the 622.5, 622.6, 622.7 (a) and (c), and potential number of fishermen that 622.40(a)(3) and the additions 50 CFR before overfishing occurs or conflicts arise among user groups. would select each zone, and the 622.7(z), 622.17 (a), (g), (i), and (j), and probable abundance of golden crab in 622.45(f) (2) through (4) are effective Response: NMFS agrees. Comment: Five golden crab fishermen each zone. The southern zone is the October 28, 1996. Florida Keys area which has a very ADDRESSES: Comments regarding the strongly supported the FMP. They noted the opportunity to manage a resource narrow shelf. Consequently, most collection-of-information requirements fishermen in this area have relatively contained in this rule should be sent to from the fishery’s inception. They are concerned about the golden crab small vessels. These fishermen exploit a Edward E. Burgess, Southeast Regional number of species including golden Office, NMFS, 9721 Executive Center resource and strongly support management to prevent future problems. crab, which is taken most often during Drive N., St. Petersburg, FL 33702, and the warmer months of the year. The to the Office of Information and Response: NMFS agrees. Comment: One golden crab consumer potential for user conflict is greatest in Regulatory Affairs, OMB, Washington, reported she supports the FMP because this area because the narrow shelf DC 20503 (Attention: NOAA Desk it will prevent depletion of the resource. concentrates users in the same area. Officer). Response: NMFS agrees. Fishermen in the Florida Keys were FOR FURTHER INFORMATION CONTACT: Comment: A citizen concerned about particularly concerned about unfair Peter J. Eldridge, 813–570–5305. overfishing strongly supported the FMP. competition with large vessels. SUPPLEMENTARY INFORMATION: The FMP He noted the importance of protecting The middle zone is the east coast of was prepared by the South Atlantic the golden crab resource and Florida north of Miami. The shelf is also Fishery Management Council (Council) biodiversity. He also stated that the FMP relatively narrow in this area. In under the authority of the Magnuson would protect fishermen by minimizing addition, fewer fishing opportunities Fishery Conservation and Management the possibility of overfishing. exist here than in the southern zone. Act (Magnuson Act). The background Response: NMFS agrees. The relatively small vessels that fish in and rationale for the measures in the An early participant in the golden this zone are heavily dependent upon FMP, and the rationale for the crab fishery made a number of the golden crab resource. Again, disapproval at the proposed rule stage of comments, summarized as follows: fishermen in this zone were concerned the measure that would have required Comment: The 18-month transition about unfair competition with larger 100 percent of the owners or operators period for evaluation of the use of wire vessels. of permitted vessels to maintain and cable for mainlines and buoy lines is The northern zone is much larger than submit vessel logbook information, were needed. Eliminating wire cable may either the southern or middle zones and contained in the preamble to the actually increase, rather than decrease, fishing grounds are much further proposed rule (61 FR 16076, April 11, the risk of habitat damage. offshore. Sea and weather conditions are 1996) and are not repeated here. Response: NMFS supports the more severe in this zone. Consequently, evaluation period to determine the larger vessels are required for fishing Comments and Responses effects of wire cable. operations in this area. Because of the Comment: The U.S. Fish & Wildlife Comment: The requirement that all sparse catch data for the northern zone, Service stated that it had participated in golden crabs be landed whole is too less is known concerning the abundance the development of the golden crab FMP restrictive. Specifically, taking females of golden crab. However, if abundance and recommends its approval and and undersized males is an unlikely is proportional to area, there may be implementation. problem because processing them more crabs available in this zone. Response: NMFS agrees. would not be profitable. Also, it would The Council wishes to minimize user Comment: The Council reiterated its not be profitable to operate large conflict, especially between smaller and support for the FMP. The Council processing vessels in this fishery; thus, larger vessels. Since fishermen in the 43954 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations southern and middle zones have implement a more efficient sampling Because the eligibility requirements relatively small vessels and a narrow protocol. for initial vessel permits can be met area to fish, separating the southern and Comment: A fisherman reported that only by owners, the option for either the middle zones from the northern zone he had caught golden crabs since the owner or the operator to apply for a will minimize user conflict and avoid control date but implied that he would permit is removed—only vessel owners unfair competition. Because historical not qualify for a permit because he did may apply for a permit. fishing patterns (and opportunities) are not catch sufficient crabs prior to At § 622.17(b), the final rule clarifies substantially different between the September 1, 1995, to obtain a permit. that the use of landings records to southern and middle zones, separating He believes his exclusion from the establish qualifications for an initial these areas is appropriate. fishery is unfair. vessel permit is restricted to either the In the spring of 1995, an analysis of Response: The Council originally owner of a vessel at the time of the the Florida golden crab catch data announced a control date of April 7, landings or to a subsequent owner of revealed that most vessels in the golden 1995. However, during the public that vessel. That is, landings records crab fishery were small and fished hearing process it became evident that may be transferred only in connection either in the middle or southern zones. the number of participants was with a change of ownership of the At that time, several owners of large increasing rapidly off the east coast of harvesting vessel. vessels had expressed their intent to Florida, but only a few vessels were Language is added to clarify the time conduct preliminary fishing operations fishing north of Florida (northern zone). frame during which the Director, in the northern zone. Because of this The Council relaxed the original control Southeast Region, NMFS (RD), will possibility, the Council established the date by adding a second criterion for advise an applicant for a vessel permit September 1, 1995, qualifying criterion. entry; namely, a vessel owner who that he or she has not met the eligibility The Council did not constrain any documents landings of 2,500 lb by criteria. vessel concerning selection of a fishing September 1, 1995, would be eligible for For consistency and clarification, zone because of the low number of large a commercial vessel permit for the NMFS extends the prohibition at vessels involved, although it was hoped fishery. This was designed to provide § 622.7(b), regarding falsification of that the large vessels would select the vessel owners an additional 5 months to information on or submitted with a northern zone. If this occurs, user qualify for entry. The Florida fish trip permit application, to information on or conflict will be minimized in the other ticket records indicate that most golden submitted with a request for transfer of zones and additional catch data will be crab fishermen can catch one to several a permit. Under NOAA Administrative Order obtained from the northern zone. For thousand pounds per trip (average trips 205–11, 7.01, dated December 17, 1990, the reasons summarized above, NMFS run 3 to 4 days). Accordingly, such the Under Secretary for Oceans and agrees with the Council’s separation of fishermen could easily catch the Atmosphere has delegated to the the middle and northern zones. required 2,500 lbs within the additional Assistant Administrator for Fisheries, Comment: A minimum size limit five months allowed by the Council’s NOAA, the authority to sign material for could be required in the future. extended qualifying date. Response: The Council and NMFS publication in the Federal Register. Changes From the Proposed Rule agree. If required, a minimum size limit Classification may be implemented under the FMP’s Since the proposed rule was The RD, with concurrence by the framework procedure for new published, NMFS, as part of the NOAA Assistant Administrator for management measures. President’s Regulatory Reinvention Fisheries, determined that the FMP is Comment: A quota is not necessary at Initiative, consolidated most of its necessary for the conservation and this time. fishery regulations for the Southeast management of the golden crab fishery Response: The Council and NMFS Region into 50 CFR part 622 (61 FR off the southern Atlantic states and that agree and note that, if necessary, a quota 34930, July 3, 1996). Accordingly, this it is consistent with the Magnuson Act may be implemented under the final rule, instead of adding a new part and other applicable laws, with the framework procedure. to title 50 of the CFR to implement the exception of the measure that was Comment: The commenter supports FMP as proposed by the Council and previously disapproved. See the the FMP. approved by NMFS, implements the proposed rule for a discussion of the Response: NMFS agrees. FMP by amending 50 CFR part 622. As disapproved measure. Comment: Another commenter a result, general provisions that are This final rule has been determined to believes that NMFS will not require common to all federally managed be not significant for purposes of E.O. vessel logbooks for the golden crab fisheries in the Southeast Region, 12866. fishery. Specifically, NMFS has already contained in part 622, are not The Assistant General Counsel for disapproved the mandatory vessel included in this final rule. In addition, Legislation and Regulation of the logbook action and logbooks are minor changes in language have been Department of Commerce certified to necessary to determine the status of the made to conform to the standards in the Chief Counsel for Advocacy of the fishery. part 622. Substantive changes from the Small Business Administration that the Response: NMFS agrees that logbooks proposed rule are as follows. proposed rule, if adopted, would not are necessary to monitor the fishery, but The proposed rule would have have a significant economic impact on disagrees that the sampling levels are an allowed 90 days from the date of a substantial number of small entities. appropriate matter for the Council to publication of the final rule before The reasons for this certification were decide. NMFS intends initially to select vessel permits would be required in the published in the preamble to the 100 percent of vessels for logbook fishery. NMFS now finds that it can proposed rule (61 FR 16076, April 11, reporting and continue this level of issue initial vessel permits earlier than 1996) and are not repeated here. As a sampling as long as necessary. If previously anticipated. Accordingly, the result, a regulatory flexibility analysis circumstances change, or a better final rule requires that vessel permits be was not prepared. sampling procedure is developed, obtained within 60 days after the date Notwithstanding any other provision NMFS needs the flexibility to of publication of this final rule. of law, no person is required to respond Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43955 to, nor shall a person be subject to, a to 5 U.S.C. 553(d), are not subject to a It is noted that the administrative penalty for failure to comply with a delay in effective date. The revision of procedures for implementing the collection of information subject to the the definition of ‘‘fish trap,’’ while a controlled access system involve requirements of the Paperwork substantive rule, relieves a restriction references to the definitions added to 50 Reduction Act (PRA) unless that and, pursuant to 5 U.S.C. 553(d)(1), is CFR 622.2. For these reasons, the collection of information displays a not subject to a delay in effective date. Assistant Administrator for Fisheries, currently valid OMB control number. The addition to the regulations at 50 NOAA, finds that, pursuant to 5 U.S.C. This rule contains collection-of- CFR 622.17(b) through (f) and (h), and 553(d)(3), good cause exists to waive the information requirements subject to the the amendments to the associated 30-day delay in effective date of the PRA—namely, (1) initial vessel permit provisions at 50 CFR 622.4(d) and amendments to 50 CFR 662.2, 622.4(d) applications, (2) vessel permit renewals, 622.7(b), set forth administrative and 622.7(b) and the addition of 50 CFR (3) vessel permit appeals, (4) dealer procedures and authority necessary for 622.17(b) through (f) and (h). To allow permit applications, (5) vessel reports, timely implementation of the controlled time for determination of permit (6) dealer reports, (7) notification access program for commercial vessel eligibility and issuance of permits, requirements for purposes of permits. Consistent with the FMP, these NMFS makes the provisions of this final accommodating observer coverage, (8) regulations require that applications for rule that require permits, or that are notification requirements for vessels initial vessel permits be submitted dependent on the possession of a transiting golden crab zones, (9) gear within 30 days after the date of permit, effective October 28, 1996. identification, and (10) vessel publication of this rule in the Federal identification. The existing vessel Register. The class of persons affected List of Subjects identification requirements contained in by the controlled access program is very 15 CFR Part 902 50 CFR 622.6(a)(1)(i) and (a)(2) are made small, and all such affected persons applicable to a vessel in the golden crab should be aware of the provisions of the Reporting and recordkeeping fishery by requiring such vessel to controlled access system, including the requirements. obtain a permit—each vessel for which vessel permit requirements and, in 50 CFR Part 622 a permit has been issued under 50 CFR particular, the time provided for permit 622.4 or 622.17 is required to comply application. Virtually all affected Fisheries, Fishing, Puerto Rico, with those requirements. These commercial golden crab fishermen have Reporting and recordkeeping collections have been approved by OMB been involved fully in the Council requirements, Virgin Islands. under OMB control numbers as follows: process of developing the FMP, which Dated: August 21, 1996. Items (1) through (4), (7), and (8)— included numerous public hearings C. Karnella, 0648–0205; item (5)—0648–0016; item with opportunities for being informed of Acting Deputy Assistant Administrator for (6)—0648–0013; item (9)—0648–0305, and commenting on the Council’s Fisheries, National Marine Fisheries Service. and item (10)—0648–0306. The public proposed management measures. It is reporting burdens for these collections extremely unlikely that any persons For the reasons set out in the of information are estimated to average affected by the controlled access preamble, 15 CFR part 902 and 50 CFR 20, 20, 30, 15, 10, 15, 3, 2, 7, and 45 program are unaware of the terms of the part 622 are amended as follows: minutes per response, respectively, FMP, or the timing aspects of its PART 902ÐNOAA INFORMATION including the time for reviewing implementation. It is also unlikely that COLLECTION REQUIREMENTS UNDER instructions, searching existing data any affected persons will require sources, gathering and maintaining the additional time to adjust to this THE PAPERWORK REDUCTION ACT: data needed, and completing and regulation. Rather, virtually all industry OMB CONTROL NUMBERS reviewing the collections of participants are anticipating 1. The authority citation for part 902 information. Send comments regarding implementation of the FMP and are continues to read as follows: these reporting burden estimates or any ready to apply for their vessel and other aspect of the collections of dealer permits. Furthermore, NMFS can Authority: 44 U.S.C. 3501 et seq. information, including suggestions for identify virtually all eligible fishermen 2. Effective August 27, 1996, in reducing the burdens, to NMFS and for this golden crab fishery and will give § 902.1, paragraph (b) table, in the OMB (see ADDRESSES). actual notice to those individuals entries for 50 CFR, the following entries The publication of the OMB control immediately upon filing of this final are added in numerical order to read as numbers for approved collection-of- rule with the Office of the Federal follows: information requirements at 15 CFR part Register. Accordingly, a period of 902, and the addition to the table of delayed effectiveness for the § 902.1 OMB control numbers assigned FMPs implemented under part 622 are administrative procedures for pursuant to the Paperwork Reduction Act. not substantive rules within the implementing the controlled access * * * * * meaning of 5 U.S.C. 553 and, pursuant system in this instance is unnecessary. (b) * * *

Current OMB con- trol number CFR part or section where the information collection requirement is located (all numbers begin with 0648±)

******* 50 CFR

******* 622.10 ...... ±0205 43956 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

Current OMB con- trol number CFR part or section where the information collection requirement is located (all numbers begin with 0648±)

******* 622.17 ...... ±0205

*******

PART 622ÐFISHERIES OF THE Authority: 16 U.S.C. 1801 et seq. § 622.1 Purpose and Scope CARIBBEAN, GULF, AND SOUTH * * * * * ATLANTIC 4. In § 622.1, table 1, effective August 27, 1996, the following entry is added 3. The authority citation for part 622 in alphabetical order to read as follows: continues to read as follows:

TABLE 1.ÐFMPS IMPLEMENTED UNDER PART 622

Respon- sible Fish- FMP title ery Man- Geographical agement area council(s)

******* FMP for the Golden Crab Fishery of the South Atlantic Region ...... SAFMC South Atlantic

*******

5. In § 622.2, effective August 27, board a vessel that possesses golden § 622.5 Recordkeeping and reporting. 1996, in the definition of ‘‘Fish trap’’, crab in or from the South Atlantic EEZ. * * * * * paragraph (3) is revised and definitions * * * * * (a) * * * of ‘‘Golden crab’’ and ‘‘Golden crab (1) * * * 6. In § 622.4, effective October 28, (v) South Atlantic golden crab. The trap’’ are added in alphabetical order to 1996, the first sentence of paragraph owner or operator of a vessel for which read as follows: (a)(4) and, effective August 27, 1996, the a commercial permit for golden crab has first sentence of paragraph (d) are § 622.2 Definitions and acronyms. been issued, as required under revised to read as follows: * * * * * § 622.17(a), who is selected to report by Fish trap * * * § 622.4 Permits and fees. the SRD must maintain a fishing record on a form available from the SRD. (3) In the South Atlantic EEZ, a trap (a) * * * (2) Reporting deadlines. * * * and its component parts (including the (4) * * * For a dealer to receive Gulf (ii) Reporting forms required in lines and buoys), regardless of the reef fish, golden crab harvested from the paragraph (a)(1)(v) of this section must construction material, used for or South Atlantic EEZ, South Atlantic be submitted to the SRD postmarked not capable of taking fish, except a sea bass snapper-grouper, or wreckfish, a dealer later than 30 days after sale of the pot, a golden crab trap, or a crustacean permit for Gulf reef fish, golden crab, golden crab offloaded from a trip. If no trap (that is, a type of trap historically South Atlantic snapper-grouper, or fishing occurred during a calendar used in the directed fishery for blue wreckfish, respectively, must be issued month, a report so stating must be crab, stone crab, red crab, jonah crab, or to the dealer. * ** submitted on one of the forms spiny lobster and that contains at any * * * * * postmarked not later than 7 days after time not more than 25 percent, by the end of that month. Information to be (d) * * * A fee is charged for each number, of fish other than blue crab, reported is indicated on the form and its permit application submitted under stone crab, red crab, jonah crab, and accompanying instructions. paragraph (b) of this section or under spiny lobster). § 622.17(d) and for each fish trap or sea * * * * * * * * * * bass pot identification tag required (c) * * * under § 622.6(b)(1)(i). * ** (6) South Atlantic golden crab. A Golden crab means the species dealer who receives from a fishing Chaceon fenneri, or a part thereof. * * * * * vessel golden crab harvested from the Golden crab trap means any trap used 7. In § 622.5, effective October 28, South Atlantic EEZ and who is selected or possessed in association with a 1996, the text of paragraph (a)(2) is by the SRD must provide information on directed fishery for golden crab in the redesignated as paragraph (a)(2)(i); the receipts of, and prices paid for, South South Atlantic EEZ, including any trap heading of paragraph (a)(2) is revised; Atlantic golden crab to the SRD at that contains a golden crab in or from and paragraphs (a)(1)(v), (a)(2)(ii), and monthly intervals, postmarked not later the South Atlantic EEZ or any trap on (c)(6) are added to read as follows: than 5 days after the end of each month. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43957

Reporting frequency and reporting South Atlantic EEZ other than the zone or at least 2,500 lb (1,134 kg) by deadlines may be modified upon for which the vessel is permitted, as September 1, 1995. Only the owner of notification by the SRD. specified in § 622.17(h). a vessel at the time landings occurred * * * * * 10. Effective September 26, 1996, may use those landings to meet the 8. In § 622.6, effective October 28, § 622.8 is added to subpart A to read as eligibility requirements described in 1996, in paragraph (a)(1)(i) introductory follows: this paragraph, except if that owner transferred the right to use those text, the reference ‘‘§ 622.4’’ is removed § 622.8 At-sea observer coverage. and the reference ‘‘§ 622.4 or § 622.17’’ landings to a subsequent owner in is added in its place; in the first (a) If a vessel’s trip is selected by the writing as part of the vessel’s sales sentence of paragraph (c) and in SRD for observer coverage, the owner or agreement. If evidence of such paragraph (d), the phrase ‘‘a golden crab operator of a vessel for which a agreement is provided to the RD, the trap,’’ is added after ‘‘a fish trap,’’; a commercial permit for golden crab has subsequent owner may use those sentence is added at the end of been issued, as required under landings to meet the eligibility paragraph (b)(1)(ii); and a sentence is § 622.17(a), must carry a NMFS- requirements instead of the owner of the added at the end of paragraph (b)(2)(ii) approved observer. vessel at the time the landings occurred. to read as follows: (b) When notified in writing by the (c) Documentation of eligibility. The SRD that his or her vessel has been documentation requirements described § 622.6 Vessel and gear identification. selected to carry an NMFS-approved in this paragraph are the only acceptable * * * * * observer, an owner or operator must means for an owner to establish a (b) * * * advise the SRD in writing not less than vessel’s eligibility for an initial permit. (1) * * * 5 days in advance of each trip of the Failure to meet the documentation (ii) * * * A golden crab trap used or following: requirements, including submission of possessed in the South Atlantic EEZ or (1) Departure information (port, dock, data as required, will result in failure to on board a vessel with a commercial date, and time). qualify for an initial commercial vessel permit for golden crab must have the (2) Expected landing information permit. Acceptable sources of commercial vessel permit number (port, dock, and date). documentation include: Landings permanently affixed so as to be easily (c) An owner or operator of a vessel documented by the trip ticket systems of distinguished, located, and identified; on which a NMFS approved observer is Florida or South Carolina as described an identification tag issued by the RD embarked must: in paragraph (c)(1) of this section and may be used for this purpose but is not (1) Provide accommodations and food data substantiating landings that required. that are equivalent to those provided to occurred prior to establishment of the (2) * * * the crew. respective trip ticket systems or (ii) * * * However, no color code is (2) Allow the observer access to and landings that occurred in North Carolina required on a buoy attached to a golden use of the vessel’s communications or Georgia as described in paragraph crab trap. equipment and personnel upon request (c)(2) of this section. * * * * * for the transmission and receipt of (1) Trip ticket data. NMFS has access 9. In § 622.7, effective August 27, messages related to the observer’s to records of golden crab landings 1996, paragraph (b) is revised; effective duties. reported under the trip ticket systems in September 26, 1996, paragraphs (w),(x), (3) Allow the observer access to and Florida and South Carolina. No further and (y) are added; and effective October use of the vessel’s navigation equipment documentation or submission of these 28, 1996, paragraphs (a) and (c) are and personnel upon request to records is required if the applicant was revised and paragraph (z) is added to determine the vessel’s position. the owner of the harvesting vessel at the read as follow: (4) Allow the observer free and time of the landings documented by unobstructed access to the vessel’s these records. An applicant will be § 622.7 Prohibitions. bridge, working decks, holding bins, given printouts of trip ticket records for (a) Engage in an activity for which a weight scales, holds, and any other landings made when the applicant valid Federal permit is required under space used to hold, process, weigh, or owned the harvesting vessel, and an § 622.4 or § 622.17 without such permit. store golden crab. applicant will have an opportunity to (b) Falsify information on a permit (5) Allow the observer to inspect and submit records of landings he or she application or submitted with such copy the vessel’s log, communications believes should have been included on application, as specified in § 622.4 (b) or logs, and any records associated with such printouts or to clarify allocation of (g) or § 622.17. the catch and distribution of golden crab landings shown on such printouts. (c) Fail to display a permit or for that trip. Landings reported under these trip endorsement, as specified in § 622.4(i) 11. Effective August 27, 1996, ticket systems and received by the or § 622.17(g). § 622.17, is added to subpart B to read respective states prior to December 31, * * * * * as follows: 1995, with such adjustments/ (w) Fail to comply with the clarifications for landings for which requirements for observer coverage as § 622.17 South Atlantic golden crab there is adequate documentation that specified in § 622.10. controlled access. they should have been included on the (x) Assault, resist, oppose, impede, (a) [Reserved] printouts, are conclusive as to landings intimidate, or interfere with a NMFS- (b) Initial eligibility. A vessel is in the respective states during the approved observer aboard a vessel. eligible for an initial commercial vessel period that landing reports were (y) Prohibit or bar by command, permit for golden crab if the owner required or voluntarily submitted by a impediment, threat, coercion, or refusal meets the documentation requirements vessel. For such time periods, landings of reasonable assistance, an observer described in paragraph (c) of this data from other sources will not be from conducting his or her duties section substantiating his or her considered for landings in these states. aboard a vessel. landings of golden crab harvested from (2) Additional landings data. (i) An (z) Fish for or possess golden crab in the South Atlantic EEZ in quantities of owner of a vessel that does not meet the or from a designated fishing zone of the at least 600 lb (272 kg) by April 7, 1995, criteria for initial eligibility for a 43958 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations commercial vessel permit based on (iii) Name, address, telephone Magnuson Act at 16 U.S.C. 1853(d) and landings documented by the trip ticket number, and other identifying subpart E of part 600 of this chapter are systems of Florida or South Carolina information of the vessel owner. waived with respect to any information may submit documentation of required (iv) Documentation of initial supplied by the RD to the SAFMC and landings that either occurred prior to eligibility, as specified in paragraphs (b) its advisory bodies for purposes of the implementation of the respective and (c) of this section. receiving the recommendations of the trip ticket systems or occurred in North (v) The fishing zone in which the appeals committee members on the Carolina or Georgia. Acceptable vessel will fish, as specified in appeal. An appellant may also make a documentation of such landings paragraph (h) of this section. personal appearance before the appeals consists of trip receipts or dealer records (vi) Any other information concerning committee. that definitively show the species the vessel, gear characteristics, principal (4) The appeals committee will meet known as golden crab; the vessel’s fisheries engaged in, or fishing areas, as only once to consider appeals submitted name, official number, or other specified on the application form. within the time period specified in reference that clearly identifies the (vii) Any other information that may paragraph (f)(3) of this section. Members vessel; and dates and amounts of South be necessary for the issuance or of the appeals committee will provide Atlantic golden crab landings. In administration of the permit, as their individual recommendations for addition, a sworn affidavit may be specified on the application form. each appeal to the RD. Members of the submitted to document landings. A (e) Issuance. (1) The RD will mail an appeals committee may comment upon sworn affidavit is a notarized written initial commercial vessel permit to an whether the eligibility criteria, specified statement wherein the individual applicant no later than October 28, in the FMP and in paragraph (b) of this signing the affidavit affirms under 1996, if the application is complete and section, were correctly applied in each penalty of perjury that the information the eligibility requirements specified in case, based solely on the available presented is accurate to the best of his paragraph (b) of this section are met. record, including documentation or her knowledge, information, and (2) Upon receipt of an incomplete submitted by the appellant. The RD will belief. application that is postmarked or hand- decide the appeal based on the initial (ii) Documentation by a combination delivered on or before September 26, eligibility criteria in paragraph (b) of of trip receipts and dealer records is 1996, the RD will notify the applicant of this section and the available record, acceptable, but duplicate records for the the deficiency. If the applicant fails to including documentation submitted by same landings will not result in correct the deficiency within 30 days of the appellant and the recommendations additional credit. the date of the RD’s notification, the and comments from members of the (iii) Additional data submitted under application will be considered appeals committee. The RD will notify paragraph (c)(2) of this section must be abandoned. the appellant of the decision and the attached to a Golden Crab Landings Data (3) The RD will notify an applicant, in reason therefore, in writing, normally form, which is available from the RD. writing, no later than October 28, 1996, within 30 days of receiving the (3) Verification. Documentation of if the RD determines that the applicant recommendation from the appeals golden crab landings from the South fails to meet the eligibility requirements committee members. The RD’s decision Atlantic EEZ and other information specified in paragraph (b) of this will constitute the final administrative submitted under this section are subject section. action by NMFS on an appeal. to verification by comparison with state, (f) Appeals. (1) An appeal of the RD’s (g) [Reserved] Federal, and other records and decision regarding initial permit (h) Fishing zones. (1) The South information. Submission of false eligibility may be submitted to an ad Atlantic EEZ is divided into three documentation or information may hoc appeals committee appointed by the fishing zones for golden crab. A vessel disqualify a person from initial SAFMC. owner must indicate on the initial participation under the South Atlantic (2) The appeals committee is application for a commercial vessel golden crab controlled access program. empowered only to deliberate whether permit the zone in which the vessel will (d) Application procedure. Permit the eligibility criteria specified in fish. A permitted vessel may fish for application forms are available from the paragraph (b) of this section were golden crab only in the zone shown on RD. An application for an initial applied correctly to the appellant’s its permit. A vessel may possess golden commercial vessel permit that is application. In making that crab only in that zone, except that other postmarked or hand-delivered after determination, the appeals committee zones may be transited if the vessel September 26, 1996, will not be members will consider only disputed notifies NMFS, Office of Enforcement, accepted. calculations and determinations based Southeast Region, St. Petersburg, FL, by (1) An application for a commercial on documentation provided as specified telephone (813–570–5344) in advance vessel permit must be submitted and in paragraph (c) of this section, and does not fish in an unpermitted signed by the vessel owner (in the case including transfers of landings records. zone. The designated fishing zones are of a corporate-owned vessel, an officer The appeals committee is not as follows: or shareholder who meets the empowered to consider whether a (i) Northern zone—the South Atlantic requirements of paragraph (b) of this person should have been eligible for a EEZ north of 28 N. lat. section; in the case of a partnership- commercial vessel permit because of (ii) Middle zone—the South Atlantic owned vessel, a general partner who hardship or other factors. EEZ from 25 N. lat. to 28 N. lat. meets these requirements). (3) A written request for consideration (iii) Southern zone—the South (2) An owner must provide the of an appeal must be submitted within Atlantic EEZ south of 25 N. lat. following: 30 days of the date of the RD’s (2) An owner of a permitted vessel (i) A copy of the vessel’s valid U.S. notification denying permit issuance may have the zone specified on a permit Coast Guard certificate of and must provide written changed only when the change is from documentation or, if not documented, a documentation supporting the basis for the middle or southern zone to the copy of its valid state registration the appeal. Such a request must contain northern zone. A request for such certificate. the appellant’s acknowledgment that the change must be submitted to the RD (ii) Vessel name and official number. confidentiality provisions of the with the existing permit. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43959

12. In § 622.17, effective October 28, § 622.32 Prohibited and limited-harvest § 622.40 Limitations on traps and pots. 1996, paragraphs (a), (g), (i), and (j) are species. (a) * * * added to read as follows: * * * * * (3) South Atlantic EEZ. A sea bass pot (b) * * * or golden crab trap in the South Atlantic § 622.17 South Atlantic golden crab (4) * * * EEZ may be pulled or tended only by a controlled access. (v) It is intended that no female person (other than an authorized officer) (a) Applicability. For a person aboard golden crabs in or from the South aboard the vessel permitted to fish such a vessel to fish for golden crab in the Atlantic EEZ be retained on board a pot or trap or aboard another vessel if South Atlantic EEZ, possess golden crab vessel and that any female golden crab such vessel has on board written in or from the South Atlantic EEZ, off- in or from the South Atlantic EEZ be consent of the owner or operator of the load golden crab from the South released in a manner that will ensure vessel so permitted. For golden crab Atlantic EEZ, or sell golden crab in or maximum probability of survival. only, a vessel with written consent on from the South Atlantic EEZ, a However, to accommodate legitimate board must also possess a valid commercial vessel permit for golden incidental catch and retention, the commercial vessel permit for golden crab must be issued to the vessel and number of female golden crabs in or crab. must be on board. It is a rebuttable from the South Atlantic EEZ retained on (b) * * * presumption that a golden crab on board board a vessel may not exceed 0.5 (3) * * * or off-loaded from a vessel in the South percent, by number, of all golden crabs (ii) A golden crab trap that is used or Atlantic was harvested from the South on board. See § 622.45(f)(1) regarding possessed in the South Atlantic EEZ Atlantic EEZ. the prohibition of sale of female golden must have at least one escape gap or * * * * * crabs. escape ring on each of two opposite (g) Display. A commercial vessel (vi) South Atlantic snapper-grouper vertical sides. The minimum allowable permit issued under this section must may not be possessed in whole, gutted, inside dimensions of an escape gap are be carried on board the vessel. The or filleted form by a person aboard a 2.75 by 3.75 inches (7.0 by 9.5 cm); the operator of a vessel must present the vessel fishing for or possessing golden minimum allowable inside diameter of permit for inspection upon the request crab in or from the South Atlantic EEZ an escape ring is 4.5 inches (11.4 cm). of an authorized officer. or possessing a golden crab trap in the In addition to the escape gaps— * * * * * South Atlantic. Only the head, fins, and (A) A golden crab trap constructed of (i) Transfer. (1) A valid golden crab backbone (collectively the ‘‘rack’’) of webbing must have an opening (slit) at permit may be transferred for use by South Atlantic snapper-grouper may be least 1 ft (30.5 cm) long that may be another vessel by returning the existing possessed for use as bait. closed (relaced) only with untreated 3 permit(s) to the RD along with an * * * * * cotton string no larger than ⁄16 inch application for a permit for the 14. In § 622.35, effective September (0.48 cm) in diameter. replacement vessel. 26, 1996, paragraph (f) is added to read (B) A golden crab trap constructed of (2) To obtain a commercial vessel as follows: material other than webbing must have an escape panel or door measuring at permit via transfer, the owner of the § 622.35 South Atlantic EEZ seasonal and/ replacement vessel must submit to the least 12 by 12 inches (30.5 by 30.5 cm), or area closures. located on at least one side, excluding RD a valid permit for a vessel with a * * * * * documented length overall, or permits top and bottom. The hinges and (f) Golden crab trap closed areas. In fasteners of such door or panel must be for vessels with documented aggregate the golden crab northern zone, a golden lengths overall, of at least 90 percent of made of either ungalvanized or crab trap may not be deployed in waters uncoated iron wire no larger than 19 the documented length overall of the less than 900 ft (274 m) deep. In the replacement vessel. gauge (0.04 inch (1.0 mm) in diameter) golden crab middle and southern zones, or untreated cotton string no larger than (j) Renewal. (1) In addition to the a golden crab trap may not be deployed procedures and requirements of 3/16 inch (4.8 mm) in diameter. in waters less than 700 ft (213 m) deep. (c) * * * § 622.4(h) for commercial vessel permit See § 622.17(h) for specification of the (3) * * * renewals, for a golden crab permit to be golden crab zones. (ii) A golden crab trap deployed or renewed, the SRD must have received 15. In § 622.38, effective September possessed in the South Atlantic EEZ reports for the permitted vessel, as 26, 1996, paragraph (f) is added to read may not exceed 64 ft3 (1.8 m3) in required by § 622.5(a)(1)(v), as follows: volume in the northern zone or 48 ft3 documenting that at least 5,000 lb (2,268 (1.4 m3) in volume in the middle and § 622.38 Landing fish intact. kg) of golden crab were landed from the southern zones. See § 622.17(h) for South Atlantic EEZ by the permitted * * * * * specification of the golden crab zones. vessel during at least one of the two 12- (f) A golden crab in or from the South (d) * * * month periods immediately prior to the Atlantic EEZ must be maintained in (2) * * * expiration date of the vessel permit. whole condition through landing (ii) Rope is the only material allowed (2) An existing permit for a vessel ashore. For the purposes of this to be used for a mainline or buoy line meeting the minimum golden crab paragraph, whole means a crab that is in attached to a golden crab trap, except landing requirement specified in its natural condition and that has not that wire cable is allowed for these paragraph (j)(1) of this section may be been gutted or separated into purposes through January 31, 1998. renewed by following the procedure component pieces, e.g., clusters. 17. In § 622.41, effective September specified in paragraph (d) of this 16. In § 622.40, effective October 28, 26, 1996, paragraph (e) is added to read section. However, documentation of the 1996, paragraph (a)(3) is revised; and, as follows: vessel’s initial eligibility need not be effective September 26, 1996, paragraph resubmitted. (d)(2) existing text is redesignated as § 622.41 Species specific limitations. 13. In § 622.32, effective September paragraph (d)(2)(i) and paragraphs * * * * * 26, 1996, paragraphs (b)(4)(v) and (vi) (b)(3)(ii), (c)(3)(ii), and (d)(2)(ii) are (e) South Atlantic golden crab. Traps are added to read as follows: added to read as follows: are the only fishing gear authorized in 43960 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations directed fishing for golden crab in the DEPARTMENT OF THE TREASURY nonroad vehicles or nonroad equipment South Atlantic EEZ. Golden crab in or imported into the United States. from the South Atlantic EEZ may not be Customs Service Nonconforming nonroad large CI retained on board a vessel possessing or engines may only be imported by 19 CFR Part 12 using unauthorized gear. independent commercial importers [T.D. 96±64] (ICIs) who hold valid certificates of 18. In § 622.45, effective September conformity issued by the EPA (see 26, 1996, paragraph (f)(1) is added and, RIN 1515±AB94 § 12.74(c)(2), infra), unless an effective October 28, 1996, paragraphs exemption or exclusion otherwise Emissions Standards for Imported (f)(2) through (4) are added to read as applies thereto. The ICI will be Nonroad Engines follows: responsible for assuring that subsequent to importation, the nonroad engine is § 622.45 Restrictions on sale/purchase. AGENCY: Customs Service, Department of the Treasury. properly modified and/or tested to * * * * * ACTION: Final rule. comply with EPA emission and other (f) South Atlantic golden crab. (1) A requirements over its useful life. female golden crab in or from the South SUMMARY: This document sets forth By contrast, no ICI program exists for Atlantic EEZ may not be sold or amendments to the Customs Regulations nonconforming nonroad small SI purchased. which conform to regulations that have engines. However, an individual may already been adopted by the import on a single occasion up to three (2) A golden crab harvested in the Environmental Protection Agency nonconforming nonroad small SI South Atlantic EEZ on board a vessel (EPA), in order to ensure the engines, vehicles or equipment items for that does not have a valid commercial compliance of imported nonroad personal use (and not for purposes of permit for golden crab, as required engines with applicable EPA emissions resale). In fact, with specific exceptions, under § 622.17(a), may not be sold or standards required by law. nonconforming nonroad small SI purchased. EFFECTIVE DATE: August 27, 1996. engines, vehicles and equipment are (3) A golden crab harvested on board FOR FURTHER INFORMATION CONTACT: Leo generally not permitted to be imported a vessel that has a valid commercial Wells, Trade Compliance Division, for resale. After an individual’s limit of permit for golden crab may be sold only (202–927–0771). three, or after the first importation, to a dealer who has a valid permit for additional small SI engines, vehicles, or SUPPLEMENTARY INFORMATION: equipment are not permitted golden crab, as required under importation, unless an exception or § 622.4(a)(4). Background exclusion otherwise so provides. (4) A golden crab harvested in the The Clean Air Act, as amended, (42 Exemptions or exclusions to the South Atlantic EEZ may be purchased U.S.C. 7401 et seq.), which has long general restrictions on importing by a dealer who has a valid permit for authorized the Environmental nonconforming nonroad engines are golden crab, as required under Protection Agency (EPA) to regulate on- similar to those contained in § 12.73, § 622.4(a)(4), only from a vessel that has highway motor vehicle and engine Customs Regulations (19 CFR 12.73) for a valid commercial permit for golden emissions, was amended in 1990 to nonconforming motor vehicles and their crab. extend EPA’s regulatory authority to engines, and include exemptions for include as well nonroad engines and repair and alteration, testing, 19. In § 622.48, effective September related vehicles and 2 equipment (see precertification, display, national 26, 1996, paragraph (g) is added to read 42 U.S.C. 7521–7525, 7541–7543, 7547, security, hardship, use in competition, as follows: 7549, 7550, 7601(a)). In brief, EPA was and certain nonroad engines proven to given authority, inter alia, to regulate § 622.48 Adjustment of management be identical, in all material respects, to measures. those categories or classes of new their corresponding U.S. versions. nonroad engines and associated vehicles Furthermore, foreign diplomatic or * * * * * and equipment that contribute to air military personnel on assignment in the (g) South Atlantic golden crab. MSY, pollution, if such nonroad emissions U.S. may import a nonconforming ABC, TAC, quotas (including quotas have been determined to be significant. nonroad engine exempt from emissions equal to zero), trip limits, minimum To this end, the EPA has since requirements. In addition, nonroad sizes, gear regulations and restrictions, conducted the requisite studies, and engines greater than 20 original permit requirements, seasonal or area issued regulations in 40 CFR parts 89 production years old are not subject to closures, time frame for recovery of and 90, which set emission standards EPA emissions requirements. golden crab if overfished, fishing year for certain nonroad engines, specifically Accordingly, Customs is amending its (adjustment not to exceed 2 months), new nonroad compression-ignition regulations to add a new § 12.74 which observer requirements, and authority for engines at or above 50 horsepower (37 conforms to the regulations that have the RD to close the fishery when a quota kilowatts) (nonroad large CI engines) as already been adopted by EPA, in order well as new nonroad spark-ignition is reached or is projected to be reached. to ensure the compliance of imported engines at or below 25 horsepower (19 nonroad engines with applicable EPA [FR Doc. 96–21814 Filed 8–26–96; 8:45 am] kilowatts) (nonroad small SI engines). emissions standards required by law. BILLING CODE 3510±22±P For a complete discussion of the background and development of EPA’s Inapplicability of Public Notice and regulations concerning emissions Comment and Delayed Effective Date standards for nonroad large CI and small Requirements, the Regulatory SI engines, see 59 FR 31306 (June 17, Flexibility Act, and Executive Order 1994) and 60 FR 34582 (July 3, 1995), 12866 respectively. The Customs Regulations Inasmuch as these amendments set forth in this document are applicable merely conform the Customs to all nonroad engines incorporated into Regulations to existing law and Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43961 regulation as noted above, pursuant to 5 more detailed information concerning equipment manufacturer. Further U.S.C. 553(b)(B), notice and public EPA emission requirements. These specific discussion of who qualifies as procedure thereon are unnecessary and requirements apply to nonroad an ICI is set forth in the EPA pursuant to 5 U.S.C. 553(d)(3), a delayed combustion-ignition engines at or above regulations. effective date is not required. Since this 37 kilowatts (kW), and nonroad spark- (ii) Procedure. An ICI may enter into document is not subject to the notice ignition engines at or below 19 kW. For the United States certain nonroad and public procedure requirements of 5 the purpose of this section, the term engines, only if it holds a currently U.S.C. 553, it is not subject to the ‘‘nonroad engine’’ includes all nonroad valid EPA certificate of conformity for provisions of the Regulatory Flexibility engines incorporated into nonroad the same nonroad engine class and fuel Act (5 U.S.C. 601 et seq.). Nor do these equipment or nonroad vehicles when type as the nonroad engines being amendments meet the criteria for a imported into the United States. entered. A ‘‘certificate of conformity’’ is ‘‘significant regulatory action’’ under (b) Importation of complying nonroad the document which is issued by the E.O. 12866. engines. (1) Labeled engines. Nonroad Administrator, EPA, to the ICI, and engines which in their condition as Drafting Information. The principal author which entitles the ICI to import of this document was Russell Berger, imported are covered by an EPA nonconforming nonroad engines into Regulations Branch, U.S. Customs Service. certificate of conformity and which bear the United States, and ensure that such However, personnel from other offices the manufacturer’s label showing such nonroad engines are brought into participated in its development. conformity and other EPA-required conformance with applicable EPA information shall be deemed in List of Subjects in 19 CFR Part 12 emissions standards. 40 CFR 89.602–96. compliance with applicable emission (d) Importation of nonconforming Customs duties and inspection, requirements for the purpose of spark-ignition engines at or below 19 Imports, Motor vehicles, Motor vehicle Customs admissibility and entry kW. (1) General. A nonconforming safety, Nonroad engines, Reporting and liquidation determinations. This engine at or below 19 kW may not be recordkeeping requirements. paragraph does not apply to imported by any person, business or ICI, Amendments to the Regulations importations by independent except for purposes other than resale commercial importers covered by under paragraph (d)(2) of this section, or Part 12, Customs Regulations (19 CFR paragraph (c) of this section. part 12), is amended as set forth below. unless an exemption or exclusion (2) Pending certification. Nonroad applies as provided in paragraphs (e)– engines otherwise covered by paragraph (m) of this section. PART 12ÐSPECIAL CLASSES OF (b)(1) of this section which were (2) Importation for purposes other MERCHANDISE manufactured for compliance with than resale. Any individual may import applicable emission requirements, but 1. The general authority citation for on a one-time basis 3 or fewer for which an application for a certificate part 12 continues to read as follows, and nonconforming spark-ignition engines at of conformity is pending with the EPA the specific authority for § 12.73 is or below 19 kW for purposes other than may be conditionally released from revised by adding a reference to § 12.74 resale under 40 CFR 90.611. Such an to read as follows: Customs custody pending production of the certificate of conformity within 120 engine may be conditionally admitted Authority: 5 U.S.C. 301; 19 U.S.C. 66, 1202 without prior EPA approval and without (General Note 20, Harmonized Tariff days of release. (c) Importation of nonconforming bond. Schedule of the United States (HTSUS)), (e) Exemptions and exclusions from 1624; engines. (1) By other than an independent emissions requirements based on age of * * * * * engine. The following nonroad engines Sections 12.73 and 12.74 also issued commercial importer (ICI). Except for nonroad engines imported in the may be imported by any person and do under 19 U.S.C. 1484, 42 U.S.C. 7522, not have to be shown to be in 7601; particular circumstances covered by paragraphs (d)–(m) of this section, an compliance with emissions * * * * * individual or business, other than an requirements before being entitled to 2. Part 12 is amended by revising the independent commercial importer (ICI) admissibility: undesignated centerhead preceding holding a currently valid EPA certificate (1) All spark-ignition engines greater § 12.73, and by adding a new § 12.74 of conformity for the same nonroad than 19 kW, unless regulated under 19 following § 12.73, to read as follows: engine class and fuel type as the engine CFR 12.73; Entry of Motor Vehicles, Motor Vehicle being imported, may not enter into the (2) All compression-ignition engines Engines and Nonroad Engines Under United States a nonconforming nonroad less than 37 kW; the Clean Air Act, As Amended engine to which EPA emissions (3) Spark-ignition engines less than or equal to 19 kW originally manufactured * * * * * requirements apply. Individuals and businesses may, however, arrange for before the 1997 model year; § 12.74 Nonroad engine compliance with the importation of nonconforming (4) Compression-ignition engines Federal antipollution emission nonroad engines through an ICI. In these greater than or equal to 37 kW but less requirements. circumstances, the ICI will not act as an than 75 kW originally manufactured (a) Applicability of EPA requirements. agent or broker for Customs transaction before January 1, 1998; This section is ancillary to the purposes unless otherwise licensed or (5) Compression-ignition engines regulations of the U.S. Environmental authorized to do so. greater than or equal to 75 kW but less Protection Agency (EPA) issued under (2) By an ICI. (i) Definition. Generally, than 130 kW originally manufactured the Clean Air Act, as amended (42 an ICI is an importer that holds a before January 1, 1997; U.S.C. 7401 et seq.), and found in 40 certificate of conformity from EPA, but (6) Compression-ignition engines CFR parts 89 and 90. Nothing in this that lacks a contract with a foreign or greater than or equal to 130 kW but less section should be construed as limiting domestic nonroad engine manufacturer than or equal to 560 kW originally or changing in any way the applicability for distributing nonroad engines into the manufactured before January 1, 1996; of the EPA regulations. Those United States market and cannot (7) Compression-ignition engines regulations should be consulted for therefore export as an original greater than 560 kW originally 43962 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations manufactured before January 1, 2000; individual as well as by an ICI for use holding a relevant certificate of and as a prototype in applying for EPA conformity, an individual importer, or (8) Engines not otherwise exempt certification, unless otherwise specified. other status, and further declares or from EPA emission requirements and 40 CFR 89.611–96(b)(3) and 89.906. affirms the status or condition of the more than 20 years old. (Age is Unless the engine is brought into imported engines and the circumstances determined by subtracting the calendar conformity within 180 days from the concerning importation including a year of production (as opposed to model date of entry, it shall be exported or citation to the specific paragraph in this year) from the calendar year of otherwise disposed of subject to section upon which application for importation.) paragraph (q) of this section. conditional or final release from (f) Exemption for exports. Nonroad (k) Display exemption. An engine may Customs custody is made. engines which will be used in nonroad be imported by anyone solely for (3) Other documentation and vehicles or equipment intended solely display in relation to a business or the information. The EPA requires, for export to a country which does not public interest, as determined by EPA, pursuant to its regulations at 40 CFR have in force emissions standards if the engine will not be sold in the 89.604(a) and 40 CFR 90.604(c), that the identical to EPA standards are exempt United States. This exemption is limited following information shall be included from applicable EPA emissions to a period of 12 months or for the or submitted with the importer’s requirements if both the engine and its duration of the display, whichever is declaration: container bear a label or tag indicating shorter. Two extensions are available of (i) The importer’s name, address and that it is intended solely for export. 40 up to 12 months each, if approved by telephone number; CFR 89.909 and 90.909. The EPA EPA, but, in no case may the total (ii) Identification of the engine, publishes in the Federal Register a list extension period exceed 36 months. 40 including the unique engine number, of foreign countries that have emissions CFR 89.611–96(b)(4) and 90.612(b)(3). the engine owner’s taxpayer standards identical to EPA standards. (l) Exemption for engines identical to identification number, and his or her (g) Exemptions for diplomats, foreign U.S.-certified versions. An engine may current address and telephone number military personnel and nonresidents. be imported by its owner other than for in the United States if different from Subject to the conditions that they are resale if it is proven to be identical, in that provided in paragraph (n)(3)(i) of not resold in the United States and are all material respects, to an engine this section; subsequently exported or destroyed or certified by the original manufacturer (iii) Identification, where applicable, brought into conformity with EPA for sale in the United States. 40 CFR of the place where the engine will be emissions requirements, the following 89.611–96(c)(3) and 90.612(c)(3). stored until EPA approval of the nonroad engines are exempt from EPA (m) Exemptions and exclusions based importer’s application to EPA for final emission requirements: on prior EPA approval. The following admission; (1) A nonroad engine imported solely exemptions or exclusions from EPA (iv) Authorization for EPA for the personal use of a nonresident emission standards apply to nonroad enforcement officers to conduct importer or consignee where the use engines, if prior approval has been inspections or testing otherwise will not exceed one year and the engine obtained in writing from EPA: subsequently will be exported; and (1) Competition exemption. An engine permitted by the Clean Air Act and (2) A nonroad engine of a member of may be imported for use to propel a regulations promulgated thereunder; the armed forces of a foreign country on vehicle or to power equipment used (v) Identification, in the case of assignment in the United States, or of a solely for competition. 40 CFR 89.611– importation by an ICI, of the certificate member of the personnel of a foreign 96(e) and 90.612(e); of conformity by means of which the government on assignment in the (2) National security exemption. An engine is being imported; United States or other individual who engine that received a national security (vi) The date of manufacture of the comes within the class of persons for exemption in writing from EPA may be engine; whom free entry of nonroad engines has imported. 40 CFR 89.611–96(c)(1), (vii) The date of entry; been authorized by the Department of 89.908, 90.612(c)(1) and 90.908; and (viii) Identification of the vessel or State. For special documentation (3) Hardship exemption. An engine carrier on which the merchandise was requirements, see paragraph (n)(4) of that received a hardship exemption in shipped; this section. writing from EPA may be imported. 40 (ix) The entry number, where (h) Exemption for repairs or CFR 89.911–96(c)(2) and 90.612(c)(2). applicable; alterations. An engine may be imported (n) Documentation requirements. (1) (x) Where prior written approval from by anyone solely for repairs or Exception for conforming engines. The EPA is required for an exemption or alterations. Under this exemption, the special documentation requirements of exclusion, a statement to the effect that engine may not be sold or leased in the paragraphs (n)(2) and (n)(3) of this such EPA approval has been given; and United States. 40 CFR 89.611–96(b)(1) section do not apply to the entry into (xi) Such other further information as and 90.612(b)(1). the United States of any nonroad may be required by the EPA. (i) Testing exemption. An engine may engines shown to be in compliance with (4) Documentation from diplomats or be imported by anyone solely for applicable emission requirements under foreign military personnel. For entries testing. Such engine may only be paragraph (b)(1) of this section relating for which an exemption is claimed operated as an integral part of the test. to labeling. under paragraph (g)(2) of this section, a 40 CFR 89.611–96(b)(2) and (2) Declarations of other importers. statement must also be included with 90.612(b)(2). This exemption is limited Release from Customs custody shall be the declaration, identifying and to a period not exceeding one year from refused with respect to all entries of describing the engine importer’s official the date of importation unless a request nonconforming nonroad engines into orders, if any, or, giving the name of the is made under 40 CFR 89.905(f) or the United States unless there is filed embassy to which the importer is 90.905(f), as applicable, for a one-year with the entry in duplicate a declaration accredited if the importer is a qualifying extension. in which the importer or consignee member of the personnel of a foreign (j) Precertification exemption. An declares or affirms its status as an government on assignment in the engine may be imported by an original equipment manufacturer, an ICI United States. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43963

(5) Retention and submission of period not to exceed 30 days after filing to ease the burden on regulated industry records to Customs. Documents of the entry at the risk and expense of and consumers. supporting the information contained in the importer pending submission of the DATES: Effective date confirmed: July 3, or accompanying the declaration as set missing information. An additional 30- 1996. This revocation is applicable for forth in paragraphs (n) (2)–(4) of this day extension may be granted by the all products initially introduced or section must be retained by the importer port director upon application for good initially delivered for introduction into for a period of at least 5 years from the cause shown. If at the expiration of a interstate commerce on or after this date of entry, or withdrawal from period not over 60 days the required date. Any labels or labeling that require warehouse, for consumption of the documentation has not been filed, a revision as a result of this revocation nonroad engine (see § 162.1c of this notice of inadmissibility will be issued. shall comply no later than January 1, chapter), and shall be provided to (q) Disposal of engines not entitled to 1998. Customs upon request. admission. An engine denied admission FOR FURTHER INFORMATION CONTACT: (o) Release under bond. If a under any provision of this section shall Michelle A. Smith, Center for Food declaration filed in accordance with be disposed of in accordance with Safety and Applied Nutrition (HFS– paragraph (n)(2) of this section states applicable Customs laws and 158), Food and Drug Administration, that the entry is being filed under regulations. However, an engine will not 200 C St. SW., Washington, DC 20204, circumstances described in either be disposed of in a manner in which it 202–205–5099. paragraph (h), (i), (j), or (k) of this may ultimately either directly or SUPPLEMENTARY INFORMATION: In the section, the entry shall be accepted only indirectly reach a consumer in a Federal Register of June 3, 1996 (61 FR if the importer or consignee gives a condition in which it is not in 27771), FDA issued a final rule entitled bond on Customs Form 301, containing conformity with applicable EPA ‘‘Revocation of Certain Regulations the bond conditions set forth in § 113.62 emission requirements. Affecting Food’’ that, among other of this chapter for the production of an (r) Prohibited importations. The things, revoked regulations on diabetic EPA statement that the engine is in importation of nonroad engines labeling in § 105.67 (21 CFR 105.67) and conformity with Federal emission otherwise than in accordance with this on sodium intake labeling in § 105.69 requirements. Within the period in section and the regulations of EPA in 40 (21 CFR 105.69). paragraph (i) or (j) of this section, or in CFR parts 89 and 90 is prohibited. FDA gave interested persons until the case of paragraph (h) or (k) of this George J. Weise, July 3, 1996, to file written objections to section, the period specified by EPA in Commissioner of Customs. the revocation of these regulations and its authorization for an exemption, or to request a hearing on the specific Approved: June 24, 1996. such additional period as the port provisions to which there were director of Customs may allow for good Dennis M. O’Connell, objections. No objections or requests for cause shown, the importer or consignee Acting Deputy Assistant Secretary of the hearing were received in response to the shall deliver to the port director the Treasury. final regulation. prescribed statement. If the statement is [FR Doc. 96–21843 Filed 8–26–96; 8:45 am] not delivered to the director of the port BILLING CODE 4820±02±P List of Subjects in 21 CFR Part 105 of entry within the specified period, the Dietary foods, Food grades and importer or consignee shall deliver or standards, Food labeling, Infants and cause to be delivered to the port director DEPARTMENT OF HEALTH AND children. those engines which were released HUMAN SERVICES Therefore, under the Federal Food, under a bond required by this Drug, and Cosmetic Act (secs. 201, 401, paragraph. In the event that the engine Food and Drug Administration 403, 409, 411, 701, 721 of (21 U.S.C. is not redelivered within 5 days 321, 341, 343, 348, 350, 371, 379e)) and following the specified period, 21 CFR Part 105 under authority delegated to the liquidated damages shall be assessed in [Docket No. 95N±310F] Commissioner of Food and Drugs (21 the full amount of the bond, if it is a CFR 5.10), notice is hereby given that no single entry bond, or if a continuous Revocation of Certain Regulations objections were received, and that the bond is used, the amount that would Affecting Food removal of § 105.67 on diabetic labeling have been taken under a single entry and § 105.69 on sodium intake labeling bond. Liquidated damages under the AGENCY: Food and Drug Administration, became effective on July 3, 1996. Any bond generally would be equal to 3 HHS. labels or labeling that require revision as times the value of the merchandise ACTION: Final rule; confirmation of a result of this revocation shall comply involved in the default (see § 113.62(k) effective date. no later than January 1, 1998. of this chapter). (p) Notice of inadmissibility or SUMMARY: The Food and Drug Dated: August 15, 1996. detention. If an engine is determined to Administration (FDA) is confirming the William K. Hubbard, be inadmissible before release from effective date of July 3, 1996, of the final Associate Commissioner for Policy Customs custody, or inadmissible after rule published in the Federal Register Coordination. release from Customs custody, the of June 3, 1996 (61 FR 27771), that [FR Doc. 96–21528 Filed 8–26–96; 8:45 am] importer or consignee shall be notified revoked regulations on diabetic labeling BILLING CODE 4160±01±F in writing of the inadmissibility and on sodium intake labeling. These determination and/or redelivery regulations were among those requirement. However, if an engine regulations identified by the agency for 21 CFR Part 520 cannot be released from Customs revocation as a result of a page-by-page Oral Dosage Form New Animal Drugs; custody merely because the importer review of its regulations that cover food Ivermectin Tablets and Chewable has failed to furnish with the entry the and cosmetics. This regulatory review Cubes; Correction information required by paragraph (n) of was in response to the administration’s this section, the engine shall be held in ‘‘Reinventing Government’’ initiative AGENCY: Food and Drug Administration, detention by the port director for a that seeks to streamline government and HHS. 43964 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

ACTION: Final rule; correction. among the States on the basis of need. management activities. Part 667 restates These amendments to title 23, U.S.C., these provisions, but it also SUMMARY: The Food and Drug significantly modify and clarify the supplements the statutory provisions Administration (FDA) is correcting a eligibility criteria and selection process with overly detailed descriptions of final rule that appeared in the Federal of the PLH discretionary program; as a factors to be considered in the selection Register of July 31, 1996 (61 FR 39867). result, the FHWA regulations process and of the steps taken in the The document amended the animal concerning the PLH discretionary application and selection procedure. In drug regulations to reflect approval of program have become obsolete. addition, part 667 restates some of the two supplemental new animal drug Consequently, in the interests of factors established in the statute as applications (NADA’s) filed by Merck streamlining FHWA regulations and defining the eligibility of certain Research Laboratories, Division of providing more flexibility in the projects for these funds. Merck & Co., Inc. The document was administration of this program in The eligibility criteria and selection published with a typographical error in accordance with the President’s process of the PLH discretionary the title. This document corrects that Regulatory Reinvention Initiative, the program were modified and greatly error. FHWA is eliminating these regulations. clarified by amendments to title 23, EFFECTIVE DATE: July 31, 1996. EFFECTIVE DATE: September 26, 1996. U.S.C., that were enacted as part of the FOR FURTHER INFORMATION CONTACT: FOR FURTHER INFORMATION CONTACT: Mr. ISTEA (Pub. L. 102–240, 105 Stat. 1914). Marcia K. Larkins, Center for Veterinary Mohan P. Pillay, Office of Engineering, One change resulting from these Medicine (HFV–112), Food and Drug HNG–12, (202) 366–4655 or Mr. Wilbert amendments is that title 23, U.S.C., now Administration, 7500 Standish Pl., Baccus, Office of the Chief Counsel, provides a more detailed explanation of Rockville, MD 20855, 301–827–0137. HCC–32, (202) 366–1397, Federal the kinds of projects which are eligible In FR Doc. 96–19410, appearing on Highway Administration, 400 Seventh for PLH discretionary funds. The regulation delineating eligibility criteria page 39867 in the Federal Register of Street, SW., Washington, D.C. 20590. in part 667 states that funds may be Wednesday, July 31, 1996, the following Office hours are from 7:45 a.m. to 4:15 used for ‘‘engineering and construction correction is made: On page 39867, in p.m., e.t., Monday through Friday, of the mainline roadway including the second column, the title of the except Federal holidays. adjacent vehicular parking areas and document is corrected to read ‘‘Oral SUPPLEMENTARY INFORMATION: Through Dosage Form New Animal Drugs; construction elements related to scenic the PLH Discretionary Program, the easements.’’ (§ 667.7.) After the ISTEA Ivermectin Tablets and Chewable FHWA administers the allocation of Cubes.’’ amendments, title 23, U.S.C., now Federal funds in the manner authorized includes a provision entitled ‘‘Eligible Dated: August 19, 1996. by § 202(b) of title 23 of the U.S.C. Projects’’ which lists adjacent vehicular Robert C. Livingston, ‘‘among those States having parking areas and acquisition of Director, Office of New Animal Drug unappropriated or unreserved public necessary scenic easements as two of Evaluation,Center for Veterinary Medicine. lands, nontaxable Indian lands or other seven types of projects qualifying for [FR Doc. 96–21848 Filed 8–26–96; 8:45 am] Federal reservations.’’ Approximately PLH funds. BILLING CODE 4160±01±F $50 million was made available to the These PLH regulations have also now States for the PLH Discretionary become inconsistent with title 23, Program in FY 1996. The statute directs U.S.C., as a result of the ISTEA DEPARTMENT OF TRANSPORTATION that 34 percent of the sums appropriated amendments. Section 667.7 of the for public lands highways in a given regulations states that ‘‘funds may not Federal Highway Administration fiscal year is to be allocated on the basis be used for right-of-way costs, of need among qualifying States that maintenance or other ancillaries such as 23 CFR Part 667 apply for such funds through their State sanitary, water and fire control [FHWA Docket No. 95±28] highway departments. 23 U.S.C. 202(b). facilities’’; however, the list of eligible The statute also provides that these PLH projects added to title 23, U.S.C., by the RIN 2125±AD69 funds are available for any kind of ISTEA includes, ‘‘construction and transportation project eligible for Elimination of Regulations Concerning reconstruction of roadside rest areas assistance under title 23, U.S.C., that is the Public Lands Highways including sanitary and water facilities.’’ within or adjacent to or provides access Discretionary Funds Program Thus, in general, the provisions to public lands areas. 23 U.S.C. 204(b). regarding eligibility for PLH AGENCY: Federal Highway Although Congress did not direct that discretionary funds currently included Administration (FHWA), DOT. regulations be promulgated to in the FHWA regulations have become ACTION: Final rule. implement the funding scheme both outdated and unnecessary. established by this statute, the FHWA Amendments to title 23, U.S.C., added SUMMARY: The FHWA is eliminating its did promulgate regulations which by the ISTEA also modify the selection regulations outlining the procedures to outline the procedures for administering process and the factors that will be be followed in administering the Public the PLH Discretionary Program. These taken into account in allocating PLH Lands Highways (PLH) discretionary regulations, for the most part, merely discretionary funds among the States. funds program. These provisions have reiterate the application process and As a result of the ISTEA amendments, become outdated and unnecessary as a selection criteria outlined in the statute. title 23, U.S.C., now states that result of amendments made by the For instance, the statute establishes that preference will still be given to projects Intermodal Surface Transportation PLH discretionary funds are to be which are significantly impacted by Efficiency Act of 1991 (ISTEA) (Pub. L. distributed on the basis of need among Federal land and resource management 102–240, 105 Stat. 1914) to the statutory the States that apply through their State activities, but now such preference will provisions in title 23 of the United highway departments and that be given only if these projects are States Code (U.S.C.) which authorize preference is to be given to those proposed by a State which contains at distribution of some of the funds projects which are significantly least 3 percent of the total public lands appropriated for Public Lands Highways impacted by Federal land and resource in the Nation. In light of this statutory Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43965 change, the regulations in part 667 have criteria presented in 23 CFR 667.3 (c) significant changes to the amount of become outdated because they provide and (d) as these criteria are valuable in funding available under the PLH that all projects which significantly determining appropriate projects to be Discretionary Program or to the process benefit or improve Federal land and selected for funding. For example, these by which applicants are selected to resource management will be given criteria cover matters such as route receive funding. Thus, it is anticipated preference. continuity, capacity, and safety and that the economic impact of this Consequently, as this examination of benefits of projects to Federal lands and rulemaking will be minimal. In part 667 reveals, these regulations resource management. Although these addition, it will not create a serious concerning the PLH Discretionary criteria are not expressed in definitive inconsistency with any other agency’s Program are unnecessary and in many terms of measurement and their action or materially alter the budgetary instances either straightforwardly application is subjective, the FHWA impact of any entitlements, grants, user redundant or outdated because they agrees that use of these criteria can fees, or loan programs; nor will have become inconsistent with the produce information which is valuable elimination of these regulations raise authorizing statute. Therefore, the for purposes of the selection process. It any novel legal or policy issues. FHWA is eliminating part 667 as is noted that FHWA’s annual Therefore, a full regulatory evaluation is opposed to amending it to account for solicitation for candidate projects which not required. the changes brought about by the ISTEA is publicized via a memorandum to the Regulatory Flexibility Act amendments. Elimination of these FHWA regional offices, requests regulations will provide more flexibility information on most of these criteria as In compliance with the Regulatory in administration of the PLH part of each State’s proposal. The Flexibility Act (5 U.S.C. 601–612), the discretionary program. In addition, FHWA call for fiscal year (FY) 1997 PLH FHWA has evaluated the effects of this elimination of part 667 will have the candidates contains these selection rule on small entities and has effect of further streamlining FHWA criteria. The elimination of part 667 will determined that elimination of the regulations in accordance with the not impact FHWA’s use of these FHWA regulations regarding objectives of the President’s Regulatory selection criteria, and the FHWA fully administration of PLH discretionary Reinvention Initiative. intends to include them in future funds will not have a significant economic impact on a substantial Discussion of Comments solicitations for candidate projects if this discretionary program is number of small entities. Elimination of A notice of proposed rulemaking reauthorized after FY 1997. these regulations will not affect the (NPRM) proposing the elimination of One commenter recommended that amount of funding available to the part 667 was published in the December the selection criteria, as previously States through the PLH Discretionary 6, 1995, Federal Register at 60 FR discussed, also be applied to the non- Program or the procedures used to select 62359. Interested persons were invited discretionary portion of the PLH the States eligible to receive these funds. to participate in this rulemaking by funding allocated to the States. The non- Furthermore, States are not included in submitting written comments on the discretionary PLH funding (66 percent the definition of ‘‘small entity’’ set forth NPRM to Docket No. 95–28 on or before of PLH funds) is set aside by statute for in 5 U.S.C. 601. Therefore, the FHWA February 5, 1996. Comments were Forest Highways and is distributed in hereby certifies that this action will not received from two State highway accordance with a hybrid formula. have a significant economic impact on agencies and one Indian tribe. All Funds set aside for Forest Highways are a substantial number of small entities. comments received in response to the NPRM were considered during the not discretionary, and the selection Exective Order 12612 (Federalism drafting of this final rule eliminating the criteria for PLH discretionary funds Assessment) cannot be used to allocate the remaining PLH Discretionary Program regulations. This action has been analyzed in 66 percent of the PLH funding. One State had no comments accordance with the principles and concerning elimination of the existing Rulemaking Analyses and Notices criteria contained in Executive Order regulation; however, two changes in the 12612, and it has been determined that Executive Order 12866 (Regulatory law were recommended. One such this action does not raise sufficient Planning and Review and DOT recommendation proposed a change to federalism implications to warrant the Regulatory Policies and Procedures) the provision in 23 U.S.C. 202(b) preparation of a federalism assessment. dealing with the preference in PLH The FHWA has considered the impact Elimination of these obsolete FHWA discretionary allocations to projects in a of this document and has determined regulations concerning the PLH State which contains at least 3 percent that it is neither a significant Discretionary Program would not of the total public lands in the Nation. rulemaking action within the meaning preempt any State law or State The commenting State recommended of Executive Order 12866 nor a regulation. No additional costs or that the percentage of public lands significant rulemaking under the burdens would be imposed on the States required for giving preference in PLH regulatory policies and procedures of as a result of this action, and the States’ discretionary allocation be reduced from the Department of Transportation. This ability to discharge traditional State 3 percent to 1.5 percent or deleted rulemaking eliminates FHWA governmental functions would not be entirely. The State also recommended regulations regarding administration of affected by this rulemaking. that the ‘‘Hold Harmless’’ clause in the PLH Discretionary Program. These section 1015(a)(1) of the ISTEA not regulations have become outdated and Executive Order 12372 include apportionment adjustments tied are unnecessary in light of the fact that Catalog of Domestic Assistance to allocations made to States under the the statutory provisions authorizing Program Number 20.205, Highway PLH Discretionary Program. Both of allocation of these funds adequately Planning and Construction. The these recommendations require delineate the procedures to be used and regulations implementing Executive statutory amendments and are beyond the factors to be considered in selecting Order 12372 regarding the scope of a rulemaking action. the States that will receive funding. This intergovernmental consultation on Two commenters suggested that the rulemaking eliminating these obsolete Federal programs and activities apply to FHWA retain the project selection regulations would not cause any this program. 43966 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

Paperwork Reduction Act ACTION: Interim rule; Postponement of 1995 interim rule until the final rule is This action does not create a expiration date. published and made effective. Accordingly, the expiration date of collection of information requirement SUMMARY: On August 31, 1995, HUD for the purposes of the Paperwork the interim rule published in the published an interim rule to establish Federal Register on August 31, 1995 (60 Reduction Act of 1995, 44 U.S.C. 3501– policies and procedures for the sale of 3520. FR 45331) is postponed until a final rule HUD-held single family mortgages. The is published and made effective. National Environmental Policy Act interim rule provided that its provisions Dated: August 20, 1996. The FHWA has analyzed this would expire and not be in effect after September 30, 1996, unless prior to that Nicolas P. Retsinas, rulemaking for the purposes of the Assistant Secretary for Housing—Federal National Environmental Policy Act of date HUD publishes a document to extend the effective date. This Housing Commissioner. 1969 (42 U.S.C. 4321–4347) and has [FR Doc. 96–21762 Filed 8–26–96; 8:45 am] determined that this action would not document extends the effective period BILLING CODE 4210±27±M have any effect on the quality of the of the interim rule until HUD issues a environment. Therefore an final rule for the sale of HUD-held single environmental impact statement is not family mortgages. required. DATES: Effective August 27, 1996 the DEPARTMENT OF THE INTERIOR September 30, 1996 expiration date for Regulatory Identification Number the interim rule adding 24 CFR 291.300 Office of Surface Mining Reclamation A regulation identification number through 291.307 (subpart D) is and Enforcement (RIN) is assigned to each regulatory postponed until a final rule is published action listed in the Unified Agenda of and made effective. 30 CFR Part 950 Federal Regulations. The Regulatory FOR FURTHER INFORMATION CONTACT: [SPATS No. WY±026] Information Service Center publishes Joseph McCloskey, Director, Single the Unified Agenda in April and Family Servicing Division, Office of Wyoming Regulatory Program October of each year. The RIN contained Housing, Room 9178, Department of AGENCY: Office of Surface Mining in the heading of this document can be Housing and Urban Development, 451 Reclamation and Enforcement (OSM), used to cross reference this action with Seventh Street SW, Washington, D.C. Interior. the Unified Agenda. 20410, telephone (202) 708–1672. (This ACTION: Final rule; approval of List of Subjects in 23 CFR Part 667 telephone number is not toll-free.) Hearing- or speech-impaired individuals amendment. Highways and roads, Public lands may access this number via TTY by SUMMARY: OSM is approving a proposed highway funds. calling the Federal Information Relay amendment to the Wyoming regulatory Issued on: August 20, 1996. Service at (800) 877–8339. program (hereinafter, the ‘‘Wyoming Rodney E. Slater, SUPPLEMENTARY INFORMATION: HUD program’’) under the Surface Mining Federal Highway Administrator. published an interim rule to establish Control and Reclamation Act of 1977 In consideration of the foregoing and policies and procedures for the sale of (SMCRA). The proposed amendment under the authority of 23 U.S.C. 202, HUD-held single family mortgages on consists of the revision of statutory 204, and 315, the FHWA removes and August 31, 1995 (60 FR 45331). (Note: provisions pertaining to research and reserves part 667 of title 23, Code of HUD published a correction to this development testing licenses for coal in Federal Regulations, as set forth below. interim rule on October 6, 1995 (60 FR situ processing operations. The 52296).) The August 31, 1995 interim amendment was intended to revise the PART 667ÐPUBLIC LANDS rule explained that HUD had adopted a Wyoming program to be consistent with HIGHWAYS FUNDS [REMOVED AND policy of setting an expiration date for SMCRA and the corresponding Federal RESERVED] an interim rule so that the regulatory regulations. provisions would expire unless a final 1. Part 667 is removed and reserved. EFFECTIVE DATE: August 27, 1996. rule is published before that date (60 FR [FR Doc. 96–21852 Filed 8–26–96; 8:45 am] 45332). This ‘‘sunset’’ provision appears FOR FURTHER INFORMATION CONTACT: BILLING CODE 4910±22±P in § 291.300 of the interim rule, which Guy V. Padgett, Director, Casper Field provides that §§ 291.300 through Office, Telephone: (307) 261–5824, 291.307 shall expire and shall not be in Internet address: DEPARTMENT OF HOUSING AND effect after September 30, 1996, unless [email protected]. URBAN DEVELOPMENT prior to September 30, 1996 HUD SUPPLEMENTARY INFORMATION: publishes a final rule adopting the 24 CFR Part 291 interim rule with or without changes, or I. Background on the Wyoming Program [Docket No. FR±3814±N±03] publishes a notice in the Federal Register to extend the effective date of On November 26, 1980, the Secretary RIN 2502±AG42 the interim rule. of the Interior conditionally approved Office of the Assistant Secretary for The final rule for the sale of HUD- the Wyoming program. General HousingÐFederal Housing held single family mortgages is background information on the Commissioner; Sale of HUD-Held currently in its final stages of Wyoming program, including the Single Family Mortgages; Notice of development, and HUD anticipates that Secretary’s findings, the disposition of Extension of Effective Period of Interim it will publish the final rule in the fall comments, and the conditions of Rule of 1996. However, in order to prevent a approval of the Wyoming program can period in which the single family be found in the November 26, 1980, AGENCY: Office of the Assistant mortgage sale program is without Federal Register (45 FR 78637). Secretary for Housing—Federal Housing effective regulations, HUD is extending Subsequent actions concerning Commissioner, HUD. the effective period of the August 31, Wyoming’s program and program Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43967 amendments can be found at 30 CFR concerning applications for research and reclamation operations at 30 CFR 950.12, 950.15, 950.16, and 950.20. and development testing licenses. 773.17 and the performance standards Specifically, Wyoming proposed to pertaining to underground mining II. Proposed Amendment revise W.S. 35–11–426 (a) and (b) to operations at 30 CFR Part 817. By letter dated April 18, 1996, clarify that all provisions of the act Because Wyoming’s proposed Wyoming submitted a proposed applicable to surface coal mining revisions at W.S. 35–11–426 (a) and (b), amendment to its program operations apply to coal in situ concerning in situ mineral mining (administrative record No. WY–32–2) operations, including research and permits and testing licenses, and W.S. pursuant to SMCRA (30 U.S.C. 1201 et development testing licenses, regardless 35–11–431(a)(vi), concerning seq.). Wyoming submitted the proposed of whether such operations are applications for research and amendment in response to a January 27, connected with existing surface or development testing licenses, 1995, letter from OSM that was sent in underground coal mines. In addition, respectively, (1) clarify that the accordance with the Federal regulations Wyoming proposed to revise W.S. 35– underground mining operation at 30 CFR 732.17(c) (administrative 11–431(a)(vi) to specify that the public performance standards apply to coal in record No. WY–32–1). The provisions of notice requirements applicable to situ research and development testing the Wyoming Environmental Quality surface coal mining operations at W.S. licenses, and (2) require public notice Act that Wyoming proposed to revise 35–11–406 (j) and (k) apply to an for research and development testing of were: Wyoming Statute (W.S.) 35–11– application for a research and coal in situ processing activities, the 426, concerning in situ mineral mining development testing license. Director finds that proposed W.S. 35– permits and testing licenses, and W.S. The provisions at W.S. 35–11–406 (j) 11–426 (a) and (b) and W.S. 35–11– 35–11–431, concerning applications for and (k) include, among other things, (1) 431(a)(vi), in concert with the existing research and development testing the requirement that the applicant Wyoming regulations at Chapters III, V, licenses. provide public notice in a newspaper of and XVIII, are no less effective than the general circulation in the locality of the OSM announced receipt of the Federal regulations at 30 CFR 773.17, proposed mining site once a week for proposed amendment in the May 10, 785.22, 817, and 828, concerning, four consecutive weeks, (2) the right of 1996, Federal Register (61 FR 20773), among other things, public notice any interested party to file written provided an opportunity for a public requirements and applicable objections to the application within hearing or meeting on its substantive performance standards for coal in situ thirty days after the last publication of adequacy, and invited public comment operations. The Director finds that the notice and request an informal on its adequacy (administrative record Wyoming has satisfied the requirements conference, and (3) Wyoming’s No. WY–32–7). Because no one of OSM’s January 27, 1995, 30 CFR 732 obligation to publish notice of and hold letter, and approves Wyoming’s requested a public hearing or meeting, either an informal conference or a none was held. proposed revisions at W.S. 35–11–426 public hearing within twenty days after (a) and (b) and W.S. 35–11–431(a)(vi). III. Director’s Findings the final date for filing objections. The provision at W.S. 35–11–406(k) also IV. Summary and Disposition of As discussed below, the Director, in specifies that the hearing shall be Comments accordance with SMCRA and 30 CFR conducted in accordance with the Following are summaries of all 732.15 and 732.17, finds that the Wyoming Administrative Procedure Act proposed program amendment substantive written comments on the with the right to judicial review. proposed amendment that were submitted by Wyoming on April 18, Chapter XVIII of the Wyoming Coal 1996, is no less stringent than SMCRA received by OSM, and OSM’s responses Rules and Regulations, includes, among to them. and no less effective than the other things, permit application corresponding Federal regulations. requirements pertaining to coal in situ 1. Public Comments Accordingly, the Director approves the mining. Section 5, concerning coal in University of Wyoming.—By letter proposed amendment. situ research and development testing dated May 10, 1996, the Associate Dean Public Notice and Performance license applications, references the and Director of the Agricultural Standards Applicable to Research and requirements of W.S. 35–11–431. The Experiment Station, University of Development Testing Licenses for Coal Wyoming Coal Rules and Regulations at Wyoming, commented that the In Situ Processing Activities Chapter III, Section 3, and Chapter V, proposed revisions of W.S. 35–11–426 Section 5, concerning respectively and 431(a) should not impact research In accordance with the Federal permits and performance standards for being conducted and should not present regulations at 30 CFR 732.17(c), by letter coal in situ processing activities, require any additional requirements in dated January 27, 1995 (administrative by reference to Chapters IV and VII, conducting future research projects record No. WY–032–1), OSM required compliance with applicable (administrative record No. WY–32–9). that Wyoming revise its approved performance standards for surface and program to (1) require public notice for underground mining operations. 2. Federal Agency Comments research and development testing of The Federal regulations at 30 CFR Pursuant to 732.17(h)(11)(i), OSM coal in situ processing activities and (2) 785.22 require that any application for solicited comments on the proposed clarify that the underground mining a permit for in situ operations shall be amendment from various Federal performance standards apply to coal in made according to all requirements agencies with an actual or potential situ research and development testing applicable to underground mining interest in the Wyoming program. licenses. activities and that the operations shall U.S. Rural Development.—By letter In response to OSM’s letter, Wyoming be conducted in compliance with the dated April 26, 1996, the Rural proposed to revise the Wyoming performance standards for in situ Development, responded that the Environmental Quality Act at Wyoming mining at 30 CFR Part 828. Applications revisions appeared to be reasonable Statute (W.S.) 35–11–426, concerning in for underground mining activities are (administrative record No. WY–32–8). situ mineral mining permits and testing subject to the public notice U.S. Natural Resources Conservation licenses, and W.S. 35–11–431, requirements for surface coal mining Service.—By letter dated May 22, 1996, 43968 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations the Natural Resources Conservation to make in its amendment pertain to air and whether the other requirements of Service responded that it had no or water quality standards. 30 CFR Parts 730, 731, and 732 have comments (administrative record No. Nevertheless, OSM requested EPA’s been met. WY–32–10). concurrence with the proposed U.S. Geological Survey.—By letter amendment and pursuant to 30 CFR 3. National Environmental Policy Act dated May 23, 1996, the Geological 732.17(h)(11)(i), solicited comments on No environmental impact statement is Survey responded that, because the term the proposed amendment required for this rule since section ‘‘in situ mineral mining’’ may refer to (administrative record No. WY–32–6). 702(d) of SMCRA (30 U.S.C. 1292(d)) By letter dated May 13, 1996, EPA coal bed methane extraction or coal provides that agency decisions on responded that it had no comments on gasification, a clear definition of ‘‘in situ proposed State regulatory program the amendment and that it concurred mineral mining’’ would be very helpful provisions do not constitute major to avoid the possibility of confusion with the proposed revisions (administrative record No. WY–32–12). Federal actions within the meaning of about its meaning (administrative record section 102(2)(C) of the National No. WY–32–11). 4. State Historic Preservation Officer Environmental Policy Act (42 U.S.C. The Federal regulations, at 30 CFR (SHPO) and the Advisory Council on 4332(2)(C)). 701.5, define ‘‘in situ processes’’ to Historic Preservation (ACHP) mean 4. Paperwork Reduction Act Pursuant to 30 CFR 732.17(h)(4), OSM Activities conducted on the surface or solicited comments on the proposed This rule does not contain underground in connection with in-place amendment from the SHPO and ACHP distillation, retorting, leaching, or other information collection requirements that chemical or physical processing of coal. The (administrative record No. WY–32–5). require approval by OMB under the term includes, but is not limited to, in situ Neither the SHPO nor ACHP responded Paperwork Reduction Act (44 U.S.C. gasification, in situ leaching, slurry mining, to OSM’s request. 3507 et seq.). solution mining borehole mining, and fluid V. Director’s Decision recovery mining. 5. Regulatory Flexibility Act Based on the above finding, the Wyoming, at W.S. 35–11–103(f)(iv), Director approves Wyoming’s proposed The Department of the Interior has defines ‘‘in situ mining’’ to mean amendment as submitted on April 18, determined that this rule will not have A method of in-place surface mining in 1996. a significant economic impact on a which limited quantities of overburden are The Director approves, as discussed substantial number of small entities disturbed to install a conduit or well and the in the above finding, revision of W.S. under the Regulatory Flexibility Act (5 mineral is mined by injecting or recovering 35–11–426(a) and (b), concerning rules U.S.C. 601 et seq.). The State submittal a liquid, solid, sludge or gas that causes the and regulations applicable to coal in that is the subject of this rule is based leaching, dissolution, gasification, upon counterpart Federal regulations for liquefaction or extraction of the mineral. In situ mineral mining permits and testing situ mining does not include the primary or licenses, and W.S. 35–11–431(a)(vi), which an economic analysis was enhanced recovery of naturally occurring oil concerning public notice of applications prepared and certification made that and gas or any related process regulated by for coal in situ research and such regulations would not have a the Wyoming oil and gas conservation development testing licenses. significant economic effect upon a commission. substantial number of small entities. VI. Procedural Determinations Because in situ literally means in- Accordingly, this rule will ensure that place, it includes any process for in- 1. Executive Order 12866 existing requirements previously place coal extraction. All coal in situ This rule is exempted from review by promulgated by OSM will be extraction processes would be required the Office of Management and Budget implemented by the State. In making the to meet the applicable performance (OMB) under Executive Order 12866 determination as to whether this rule standards. (Regulatory Planning and Review). would have a significant economic U.S. Bureau of Land Management.— impact, the Department relied upon the 2. Executive Order 12988 By letter dated May 28, 1996, the data and assumptions for the Bureau of Land Management, Wyoming The Department of the Interior has counterpart Federal regulations. State Office, responded that it had no conducted the reviews required by 6. Unfunded Mandates comments (administrative record No. section 3 of Executive Order 12988 WY–32–13). (Civil Justice Reform) and has This rule will not impose a cost of U.S. Bureau of Reclamation.—By determined that this rule meets the $100 million or more in any given year letter dated June 17, 1996, the Bureau of applicable standards of subsections (a) on any governmental entity or the Reclamation responded that it had no and (b) of that section. However, these private sector. comments (administrative record No. standards are not applicable to the WY–32–14). actual language of State regulatory List of Subjects in 30 CFR Part 950 programs and program amendments 3. Environmental Protection Agency since each such program is drafted and Intergovernmental relations, Surface (EPA) Concurrence and Comments promulgated by a specific State, not by mining, Underground mining. Pursuant to 30 CFR 732.17(h)(11)(ii), OSM. Under sections 503 and 505 of Dated: July 25, 1996. OSM is required to solicit the written SMCRA (30 U.S.C. 1253 and 1255) and Peter A. Rutledge, concurrence of EPA with respect to the Federal regulations at 30 CFR Acting Regional Director, Western Regional those provisions of the proposed 730.11, 732.15, and 732.17(h)(10), Coordinating Center. program amendment that relate to air or decisions on proposed State regulatory water quality standards promulgated programs and program amendments For the reasons set out in the under the authority of the Clean Water submitted by the States must be based preamble, title 30, chapter VII, Act (33 U.S.C. 1251 et seq.) or the Clean solely on a determination of whether the subchapter T, part 950 of the Code of Air Act (42 U.S.C. 7401 et seq.). None submittal is consistent with SMCRA and Federal Regulations is amended as set of the revisions that Wyoming proposed its implementing Federal regulations forth below: Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43969

PART 950ÐWYOMING areas continue to be essential to the are editorial in nature and since the safety and security of Government revisions do not change the boundaries 1. The authority citation for part 950 facilities, vessels and personnel and or increase the restrictions on the continues to read as follows: protect the public from the hazards public’s use or entry into the designated Authority: 30 U.S.C. 1201 et seq. associated with the operations at areas, the changes will have practically 2. Section 950.15 is amended by Government facilities. no effect on the public. Accordingly, we adding paragraph (y) to read as follows: EFFECTIVE DATE: October 28, 1996. have determined that public comment is ADDRESSES: HQUSACE, CECW–OR, unnecessary and impractical. § 950.15 Approval of regulatory program Washington, D.C. 20314–1000. amendments. Procedural Requirements FOR FURTHER INFORMATION CONTACT: * * * * * Mr. Ralph Eppard, Regulatory Branch, a. Review under Executive Order 12866 (y) The following statutory provisions, CECW–OR at (202) 761–1783, or This final rule is issued with respect as submitted to OSM on April 18, 1996, questions concerning the Pamlico to a military function of the Defense are approved effective August 27, 1996: Sound, NC danger zone revocation may Department and the provisions of revision of W.S. 35–11–426 (a) and (b), be directed to Mr. David Franklin of the Executive Order 12866 do not apply. concerning in situ mineral mining Wilmington District at (910) 251–44952. permits and testing licenses; and W.S. Questions concerning the Alligator b. Review under the Regulatory 35–11–431(a)(vi), concerning Bayou restricted area may be directed to Flexibility Act applications for research and Mr. Larry Evans of the Jacksonville These rules have been reviewed under development testing licenses. District at (904) 232–3943. Any the Regulatory Flexibility Act (Pub. L. [FR Doc. 96–21676 Filed 8–26–96; 8:45 am] questions concerning the Suisun Bay, 86–354), which requires the preparation BILLING CODE 4310±05±M California restricted area may be of a regulatory flexibility analysis for directed to Mr. Mark D’Avignon of the any regulation that will have a San Francisco District at (415) 977– significant economic impact on a DEPARTMENT OF DEFENSE 8446. substantial number of small entities SUPPLEMENTARY INFORMATION: Pursuant (i.e., small businesses and small Department of the Army to its authorities in Section 7 of the governments). The Corps expects that Rivers and Harbors Act of 1917 (40 Stat. the economic impact of the changes to Corps of Engineers 266; 33 U.S.C. 1) and Chapter XIX of the the restricted areas will have practically Army Appropriations Act of 1919 (40 no impact on the public, no anticipated 33 CFR Part 334 Stat. 892; 33 U.S.C. 3), the Corps is navigational hazard or interference with amending the regulations in 33 CFR Part Pamlico Sound and Adjacent Waters, existing waterway traffic and 334.420, 334.760 and 334.1110. North Carolina, Danger Zones; accordingly, certifies that this proposal The Commanding Officer, Marine Alligator Bayou off St. Andrew Bay, if adopted, will have no significant Corps Air Bases, Eastern Area, Cherry Florida; and Suisun Bay, West of economic impact on small entities. Point, North Carolina, has requested an Carquinez Straits at the Naval amendment to the regulations in 33 CFR c. Review under the National Weapons Station, Concord, California, 334.420(b)(1)(ii), to disestablish a Environmental Policy Act Restricted Areas danger zone in the waters off Mulberry An environmental assessment has AGENCY: U.S. Army Corps of Engineers, Point in Pamlico Sound. The area will been prepared for each of these actions. DoD. be opened to public use upon the We have concluded, based on the minor ACTION: Final rule. effective date of these final rules. The nature of these proposed amendments remaining danger zones established in that these amendments to danger zones SUMMARY: The Corps is amending the 33 CFR 334.420 remain in effect. We are and restricted areas will not have a regulations which establish several also making an editorial change to significant impact to the human danger zones in Pamlico Sound and the clarify that these danger zone environment, and preparation of a Neuse River in North Carolina to delete regulations apply to personnel as well environmental impact statement is not one of the danger zones and make minor as vessels. The Commanding Officer, required. The environmental assessment editorial changes to the regulations. The Coastal Systems Station, Dahlgren for the appropriate area may be danger zone as it exists, protrudes into Division, Naval Surface Warfare Center, reviewed at the District Offices listed at and interferes with navigation in Panama City, Florida, and the the end of FOR FURTHER INFORMATION Turnagain Bay and will not be used Commanding Officer, Naval Weapons CONTACT, above. again by the Government for a use that Station Concord, Concord, California precludes free use by the public. The have also requested that the word d. Submission to Congress and the GAO Corps is also making minor editorial ‘‘person’’ be inserted into the Pursuant to Section 801(a)(1)(A) of the amendments to the regulations which regulations in 33 CFR 334.760(b)(1) and Administrative Procedure Act as establish a restricted area in the waters 33 CFR 334.1110(2), respectively, to amended, by the Small Business of Alligator Bayou, a tributary of St. clarify that restrictions apply not only to Regulatory Enforcement Fairness Act of Andrews Bay and the Gulf of Mexico, vessels, but to personnel as well. Other 1996, the Army has submitted a report Florida and a restricted area in the minor editorial changes are being made containing this rule to the U.S. Senate, waters of Suisun Bay, west of Carquinez to 33 CFR 334.1110 to correct paragraph House of Representatives and the Straits at the Naval Weapons Station, designations in the regulations. These Comptroller General of the General Concord, California, to clarify that amendments to the danger zones in 33 Accounting Office prior to publication persons, as well as vessels, are not CFR 334.420 and the restricted areas in of this rule in the Federal Register. This allowed within the restricted areas. This 33 CFR 334.760 and 334.1110 are being rule is not a major rule within the amendment will not affect the size, promulgated without being published as meaning of section 804(2) of the location or further restrict the public’s proposed rules with opportunity for Administrative Procedure Act, as use of the restricted areas. The restricted public comment because the changes amended. 43970 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations e. Unfunded Mandates Act navigation at night. No vessel or person ENVIRONMENTAL PROTECTION This rulemaking does not impose an shall enter these areas during the hours AGENCY enforceable duty among the private of daylight without special permission 40 CFR Part 52 sector and therefore, is not a Federal from the enforcing agency. The areas private sector mandate and is not will be patrolled and vessels ‘‘buzzed’’ subject to the requirements of Section by the patrol plane prior to the conduct [WI67±01±7276; FRL±5550±6] 202 or 205 of the Unfunded Mandates of operations in the areas. Vessels or Act. We have also found under Section personnel which have inadvertently Approval and Promulgation of 203 of the Act, that small governments entered the danger zones shall leave the Implementation Plan; Wisconsin will not be significantly and uniquely area immediately upon being warned. AGENCY: Environmental Protection affected by this rulemaking. * * * * * Agency (EPA). List of Subjects in 33 CFR Part 334 3. Section 334.760 is amended by ACTION: Final rule. Danger Zones, Navigation (water), revising paragraph (b)(1) to read as Transportation. follows: SUMMARY: On May 10, 1996, the For the reasons set out in the Environmental Protection Agency (EPA) § 334.760 Alligator Bayou, a tributary of St. proposed approval of a Wisconsin State preamble, 33 CFR Part 334 is amended Andrew Bay, Fla.; restricted area. as follows: Implementation Plan (SIP) revision. The * * * * * purpose of the revision was to meet the PART 334ÐDANGER ZONE AND (b) The regulations. (1) No vessel or requirements of the EPA transportation RESTRICTED REGULATIONS person shall enter the area or navigate conformity rule set forth at 40 CFR part 51, subpart T—Conformity to State or 1. The authority citation for Part 334 therein without permission of the Commanding Officer, Naval Ship Federal Implementation Plans of continues to read as follows: Transportation Plans, Programs, and Research and Development Laboratory, Authority: 40 Stat. 266; (33 U.S.C. 1) and Projects Developed, Funded or Panama City, Fla., or her/his authorized 40 Stat. 892; (33 U.S.C. 3). Approved Under Title 23 U.S.C. or the representative. 2. Section 334.420 is amended by Federal Transit Act. Conformity is the revising the first sentence of paragraph * * * * * process, defined in the Clean Air Act, (a)(2), removing paragraph (b)(1)(ii), 4. Section 334.1110 is amended by used to assure that transportation redesignating paragraphs (b)(1)(iii), (iv) revising the heading for paragraph (a); planning activities meet the SIP’s and (v) as (b)(1)(ii), (iii) and (iv), revising the paragraph (a)(1) designation purpose of eliminating or reducing the respectively, and revising paragraph and heading; and redesignating severity and number of violations of the (b)(2) to read as follows: paragraph (a)(2) as (b), and revising it to National Ambient Air Quality Standards read as follows: and achieving expeditious attainment of § 334.420 Pamlico Sound and adjacent such standards. The proposed approval waters, N.C.; danger zones for Marine § 334.1110 Suisun Bay at Naval Weapons Corps operations. was subject to a 30 day public comment Station, Concord; restricted area. period during which no comments were (a) * * * received. (2) The regulations. The area shall be (a) The area. * ** EFFECTIVE DATE: closed to navigation and personnel at all (b) The regulations. (1) No person, This final rule will be effective on September 26, 1996. times except for vessels engaged in vessel, watercraft, conveyance or device operational and maintenance work as shall enter or cause to enter or remain ADDRESSES: Copies of the SIP revision directed by the enforcing agency. * ** in this area. No person shall refuse or are available for inspection at the (b) Bombing, rocket firing, and following address: United States strafing areas in Pamlico Sound and fail to remove any person or property in his custody or under his control from Environmental Protection Agency, Neuse River—(1) The areas. *** Region 5, Air and Radiation Division, 77 (2) The regulations. (i) The area this area upon the request of the Commanding Officer of the Naval West Jackson Boulevard, Chicago, described in paragraph (b)(1) of this Illinois 60604. (It is recommended that section will be used as bombing, rocket Weapons Station Concord or his/her authorized representative. you telephone Michael Leslie at (312) firing, and strafing areas. Live and 353–6680 before visiting the Region 5 dummy ammunition will be used. The (2) The regulations in this section Office.) area shall be closed to navigation and all shall be enforced by the Commanding A copy of this SIP revision is persons at all times except for such Officer, Naval Weapons Station vessels as may be directed by the available for inspection at the following Concord, and such agencies as he/she location: Office of Air and Radiation enforcing agency to enter on assigned shall designate. duties. The area will be patrolled and (OAR) Docket and Information Center vessels ‘‘buzzed’’ by the patrol plane Dated: August 2, 1996. (Air Docket 6102), room M1500, United prior to the conduct of operations in the Stanley G. Genega, States Environmental Protection Agency, 401 M Street S.W., Washington, area. Vessels or personnel which have Major General, U.S. Army, Director of Civil D.C. 20460, (202) 260–7548. inadvertently entered the danger zone Works. shall leave the area immediately upon [FR Doc. 96–21841 Filed 8–26–96; 8:45 am] FOR FURTHER INFORMATION CONTACT: being so warned. BILLING CODE 3710±92±M Michael G. Leslie, Regulation (ii) The areas described in paragraphs Development Section (AR–18J), Air (b)(1)(ii), (iii) and (iv) of this section Programs Branch, Air and Radiation shall be used for bombing, rocket firing, Division, United States Environmental and strafing areas. Practice and dummy Protection Agency, Region 5, 77 West ammunition will be used. All operations Jackson Boulevard, Chicago, Illinois will be conducted during daylight 60604, Telephone Number (312) 353– hours, and the areas will be open to 6680. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43971

SUPPLEMENTARY INFORMATION: Regional Administrator under the Federal mandate that may result in I. Background procedures published in the Federal estimated costs of $100 million or more Register on January 19, 1989 (54 FR to either State, local, or tribal Section 176(c) of the Clean Air Act 2214–2225), as revised by a July 10, governments in the aggregate, or to the (Act), 42 U.S.C 7506(c), provides that no 1995 memorandum from Mary Nichols, private sector. This Federal action Federal department, agency, or Assistant Administrator for Air and approves pre-existing requirements instrumentality shall engage in, support Radiation. The Office of Management under State or local law, and imposes in any way or provide financial and Budget (OMB) has exempted this no new Federal requirements. assistance for, license or permit, or regulatory action from E.O. 12866 Accordingly, no additional costs to approve any activity which does not review. State, local, or tribal governments, or to conform to a SIP which has been B. Regulatory Flexibility Act the private sector, result from this approved or promulgated pursuant to action. the Act. Conformity is defined as Under the Regulatory Flexibility Act, conformity to the SIP’s purpose of 5 U.S.C. 600 et seq., EPA must prepare D. Submission to Congress and the eliminating or reducing the severity and a regulatory flexibility analysis General Accounting Office number of violations of the National assessing the impact of any proposed or Under 5 U.S.C. 801(a)(1)(A) as added Ambient Air Quality Standards and final rule on small entities. 5 U.S.C. 603 by the Small Business Regulatory achieving expeditious attainment of and 604. Alternatively, EPA may certify Enforcement Fairness Act of 1996, EPA such standards, and that such activities that the rule will not have a significant submitted a report containing this rule will not: (1) cause or contribute to any impact on a substantial number of small and other required information to the new violation of any standard in any entities. Small entities include small U.S. Senate, the U.S. House of area, (2) increase the frequency or businesses, small not-for-profit Representatives and the Comptroller severity of any existing violation of any enterprises, and government entities General of the General Accounting standard in any area, or (3) delay timely with jurisdiction over populations of Office prior to publication of the rule in attainment of any standard or any less than 50,000. today’s Federal Register. This rule is required interim emission reductions or SIP approvals under section 110 and not a ‘‘major rule’’ as defined by 5 other milestones in any area. subchapter I, part D of the Clean Air Act U.S.C. 804(2). Section 176(c)(4)(A) of the Act do not create any new requirements but requires EPA to promulgate criteria and simply approve requirements that the E. Petitions for Judicial Review procedures for determining conformity State is already imposing. Therefore, Under section 307(b)(1) of the Clean of all Federal actions (transportation because the Federal SIP approval does Air Act, petitions for judicial review of and general) to applicable SIPs. The not impose any new requirements, the this action must be filed in the United EPA published the final transportation Administrator certifies that it does not States Court of Appeals for the conformity rules in the November 24, have a significant impact on any small appropriate circuit by October 28, 1996. 1993, Federal Register and codified entities affected. Moreover, due to the Filing a petition for reconsideration by them at 40 CFR part 51 subpart T— nature of the Federal-State relationship the Administrator of this final rule does Conformity to State or Federal under the CAA, preparation of a not affect the finality of this rule for the Implementation Plans of Transportation flexibility analysis would constitute purposes of judicial review nor does it Plans, Programs, and Projects Federal inquiry into the economic extend the time within which a petition Developed, Funded or Approved Under reasonableness of state action. The for judicial review may be filed, and Title 23 U.S.C. or the Federal Transit Clean Air Act forbids EPA to base its shall not postpone the effectiveness of Act. The conformity rules require States actions concerning SIPs on such such rule or action. This action may not and local agencies to adopt and submit grounds. Union Electric Co. v. U.S. EPA, be challenged later in proceedings to to the EPA a transportation conformity 427 U.S. 246, 255–66 (1976); 42 U.S.C. enforce its requirements. (See section SIP revision not later than November 24, 7410(a)(2). 1994. The State of Wisconsin submitted 307(b)(2).) C. Unfunded Mandates a SIP revision to EPA on November 23, List of Subjects in 40 CFR Part 52 1994, and supplemented this submittal Under Section 202 of the Unfunded on June 14, 1995. Mandates Reform Act of 1995 Environmental protection, Air pollution control, Hydrocarbons, II. EPA Action (‘‘Unfunded Mandates Act’’), signed into law on March 22, 1995, EPA must Intergovernmental relations, Ozone, The EPA is approving the prepare a budgetary impact statement to Transportation conformity, transportation conformity SIP revision accompany any proposed or final rule Transportation-air quality planning, for the State of Wisconsin. The EPA has that includes a Federal mandate that Volatile organic compounds. previously evaluated this SIP revision may result in estimated costs to State, Dated: July 24, 1996. and has determined that the State has local, or tribal governments in the Barry C. Degraff, fully adopted the provisions of the aggregate; or to private sector, of $100 Acting Regional Administrator. Federal transportation conformity rules million or more. Under Section 205, in accordance with 40 CFR part 51, EPA must select the most cost-effective 40 CFR part 52 is amended as follows: subpart T. The appropriate public and least burdensome alternative that PART 52Ð[AMENDED] participation and comprehensive achieves the objectives of the rule and interagency consultations have been is consistent with statutory 1. The authority citation for part 52 undertaken during development and requirements. Section 203 requires EPA continues to read as follows: adoption of this SIP revision. to establish a plan for informing and Authority: 42 U.S.C 7401–7671q. III. Administrative Requirements advising any small governments that may be significantly or uniquely Subpart YYÐWisconsin A. Executive Order 12866 impacted by the rule. This action has been classified as a EPA has determined that the approval 2. Section 52.2585 is amended by Table 3 action for signature by the action promulgated does not include a adding paragraph (j) to read as follows: 43972 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

§ 52.2585 Control strategy: Ozone. Denman at the Environmental cover the use of VOCs as well as * * * * * Protection Agency, Region 4 Air handling, storage and disposal. (j) Approval—On June 14, 1995, the Programs Branch, 345 Courtland Street, On June 3, 1996, the TDAPC Wisconsin Department of Natural NE, Atlanta, Georgia 30365. Copies of submitted three new VOC rules; 1200– Resources submitted a revision to the documents relative to this action are 3–18–.44 ‘‘Surface Coating of Plastic ozone State Implementation Plan. The available for public inspection during Parts’’, 1200–3–18–.45 ‘‘Standards of submittal pertained to a plan for the normal business hours at the following Performance for Commercial Motor implementation and enforcement of the locations. The interested persons Vehicle and Mobile Equipment Federal transportation conformity wanting to examine these documents Refinishing Operations’’, and 1200–3– requirements at the State or local level should make an appointment with the 18–.48 ‘‘Volatile Organic Liquid Storage in accordance with 40 CFR part 51, appropriate office at least 24 hours Tanks’’. Rules 1200–3–18–.44 and subpart T—Conformity to State or before the visiting day. Reference files 1200–3–18–.45 were submitted to obtain Federal Implementation Plans of TN–176–1–9641a and TN–177–1–9642a. VOC reductions for which credit was Transportation Plans, Programs, and The Region 4 office may have additional taken in the ozone redesignation Projects Developed, Funded or background documents not available at maintenance plan for the Nashville Approved Under Title 23 U.S.C. or the the other locations. ozone nonattainment area. Rule 1200– 3–18–.44 ‘‘Surface Coating of Plastic Federal Transit Act. Air and Radiation Docket and Parts’’ applies to sources with potential [FR Doc. 96–21696 Filed 8–26–96; 8:45 am] Information Center (Air Docket 6102), emissions greater than 25 tons per year BILLING CODE 6560±50±P U.S. Environmental Protection (tpy) in the Nashville ozone Agency, 401 M Street, SW, nonattainment area. Rule 1200–3–18– Washington, DC 20460. .45 ‘‘Standards of Performance for 40 CFR Part 52 Environmental Protection Agency, Commercial Motor Vehicle and Mobile [TN±176±1±9641a; TN±177±1±9642a; FRL± Region 4 Air Programs Branch, 345 Equipment Refinishing Operations’’ 5547±1] Courtland Street, NE, Atlanta, Georgia applies to sources whose potential 30365, William Denman, 404/347– emissions are greater than 15 pounds Approval and Promulgation of 3555 extension 4208. per day. Rule 1200–3–18–.48 ‘‘Volatile Implementation Plans Tennessee: Tennessee Department of Environment Organic Liquid Storage Tanks’’ applies Approval of Revisions to the and Conservation, Division of Air to sources with potential emissions Tennessee SIP Regarding Volatile Pollution Control, L & C Annex, 9th greater than 100 tpy. Organic Compounds Floor, 401 Church Street, Nashville, Tennessee 37243–1531, 615/532– Final Action AGENCY: Environmental Protection 0554. The EPA is approving these revisions Agency (EPA). FOR FURTHER INFORMATION CONTACT: to the Tennessee SIP as measures for ACTION: Direct final rule. William Denman, Regulatory Planning maintenance of the ozone standard in the Nashville nonattainment area. This SUMMARY: In this document, EPA is and Development Section, Air Programs rulemaking is being published without acting on revisions to the Tennessee Branch, Air, Pesticides & Toxics a prior proposal for approval because State Implementation Plan (SIP) which Management Division, Region 4 the Agency views this as a were submitted to EPA by Tennessee, Environmental Protection Agency, 345 noncontroversial amendment and through the Tennessee Department of Courtland Street, NE, Atlanta, Georgia anticipates no adverse comments. Air Pollution Control (TDAPC), to 30365. The telephone number is 404/ However, in a separate document in this amend the Tennessee chapter regulating 347–3555 extension 4208. Reference Federal Register publication, the EPA is volatile organic compounds (VOC). The files TN–176–1–9641a and TN–177–1– proposing to approve the SIP revision revisions amending the TDAPC’s VOC 9642a. should adverse or critical comments be chapter were submitted on June 3, 1996, SUPPLEMENTARY INFORMATION: On June 3, filed. This action will be effective and June 4, 1996, and add rules which 1996, the Tennessee Department of Air October 11, 1996, unless, by September regulate surface coating of plastic parts Pollution Control (TDAPC) submitted a 26, 1996, adverse or critical comments operations, commercial and motor request to the EPA to incorporate are received. vehicle and mobile equipment revisions to section 1200–3–18–.01 If the EPA receives such comments, refinishing operations, and volatile ‘‘Definitions’’ into the Tennessee SIP. this action will be withdrawn before the organic liquid storage tanks. Paragraph 26 of this rule contains the effective date by publishing a Additionally, the State submitted definition of exempt compounds and subsequent document that will revisions to the existing definition for was revised to correct typographical withdraw the final action. All public exempt VOCs and to the existing errors and add the recently exempted comments received will then be chapter regulating handling, storage, use compounds acetone, addressed in a subsequent final rule and disposal of volatile organic parachlorobenzotrifluoride (PCBTF), based on the separate proposed rule. compounds. These revisions provide and cyclic, branched or linear The EPA will not institute a second emission reductions for maintenance of completely methylated siloxanes (VMS). comment period on this action. Any the ozone standard in the Nashville Paragraph 87 of this rule contains the parties interested in commenting on this ozone nonattainment area. definition of volatile organic action should do so at this time. If no DATES: This final rule is effective compounds and was also revised as such comments are received, the public October 11, 1996, unless adverse or described above. is advised that this action will be critical comments are received by On June 4, 1996, the TDAPC effective [Insert date 45 days from date September 26, 1996. If the effective date submitted a new rule 1200–3–18–.06 of publication]. is delayed, timely notice will be ‘‘Handling, Storage, Use, and Disposal Under section 307(b)(1) of the Clean published in the Federal Register. of Volatile Organic Compounds (VOCs)’’ Air Act (CAA), 42 U.S.C. 7607(b)(1), ADDRESSES: Written comments on this to replace the current rule 1200–3–18– petitions for judicial review of this action should be addressed to William .06. The new rule was expanded to action must be filed in the United States Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43973

Court of Appeals for the appropriate U.S. 246, 256–66 (S.Ct. 1976); 42 U.S.C. Subpart RRÐTennessee circuit by October 11, 1996. Filing a section 7410(a)(2) and 7410(k)(3). petition for reconsideration by the Under sections 202, 203, and 205 of 2. Section 52.2220 is amended by Administrator of this final rule does not the Unfunded Mandates Reform Act of adding (c)(143) to read as follows: affect the finality of this rule for 1995 (‘‘Unfunded Mandates Act’’), § 52.2220 Identification of plan. purposes of judicial review nor does it signed into law on March 22, 1995, EPA * * * * * extend the time within which a petition must undertake various actions in (c) * * * for judicial review may be filed, and association with proposed or final rules (143) Revisions to chapter 1200–3–18 shall not postpone the effectiveness of that include a Federal mandate that may ‘‘Volatile Organic Compounds’’ were such rule or action. This action may not result in estimated costs of $100 million submitted by the Tennessee Department be challenged later in proceedings to or more to the private sector, or to State, of Air Pollution Control (TDAPC) to enforce its requirements. (See section local, or tribal governments in the EPA on June 3, 1996, and June 4, 1996. 307(b)(2) of the CAA, 42 U.S.C. aggregate. (i) Incorporation by reference. 7607(b)(2).) Through submission of this state (A) Rule 1200–3–18–.01, paragraphs This action has been classified as a implementation plan or plan revision, (26) and (87), effective on August 10, Table 3 action for signature by the the State and any affected local or tribal 1996. Regional Administrator under the governments have elected to adopt the (B) Rule 1200–3–18–.06 ‘‘Handling, procedures published in the Federal program provided for under section 182 Storage, Use, and Disposal of Volatile Register on January 19, 1989 (54 FR of the CAA. These rules may bind State, Organic Compounds (VOCs)’’, effective 2214–2225), as revised by a July 10, local and tribal governments to perform on August 11, 1996. 1995 memorandum from Mary Nichols, certain actions and also require the (C) Rule 1200–3–18–.44 ‘‘Surface Assistant Administrator for Air and private sector to perform certain duties. Coating of Plastic Parts’’, effective on Radiation. The Office of Management EPA has examined whether the rules August 10, 1996. and Budget (OMB) has exempted this being approved by this action will (D) Rule 1200–3–18–.45 ‘‘Standards of regulatory action from E.O. 12866 impose any new requirements. Since Performance for Commercial Motor review. such sources are already subject to these Vehicle and Mobile Equipment Nothing in this action shall be regulations under State law, no new Refinishing Operations’’, effective on construed as permitting or allowing or requirements are imposed by this January 17, 1996. establishing a precedent for any future approval. Accordingly, no additional (E) Rule 1200–3–18–.48 ‘‘Volatile request for a revision to any state costs to State, local, or tribal Organic Liquid Storage Tanks’’, effective implementation plan. Each request for governments, or to the private sector, on August 2, 1996. revision to the state implementation result from this action, and therefore (ii) Other material. None. plan shall be considered separately in there will be no significant impact on a light of specific technical, economic, substantial number of small entities. [FR Doc. 96–21694 Filed 8–26–96; 8:45 am] and environmental factors and in Under section 801(a)(1)(A) of the BILLING CODE 6560±50±P relation to relevant statutory and Administrative Procedure Act (APA) as regulatory requirements. amended by the Small Business 40 CFR Part 52 Under the Regulatory Flexibility Act, Regulatory Enforcement Fairness Act of 5 U.S.C. 601 et seq., EPA must prepare 1996, EPA submitted a report containing [MA±46±1±7194a; A±1±FRL±5552±9] a regulatory flexibility analysis this rule and other required information assessing the impact of any proposed or to the U.S. Senate, the U.S. House of Approval and Promulgation of Air final rule on small entities. 5 U.S.C. 603 Representatives and the Comptroller Quality Implementation Plans; and 604. Alternatively, EPA may certify General of the General Accounting Massachusetts; Marine Vessel that the rule will not have a significant Office prior to publication of the rule in Transfer Operations impact on a substantial number of small today’s Federal Register. This rule is entities. Small entities include small not a ‘‘major rule’’ as defined by section AGENCY: Environmental Protection businesses, small not-for-profit 804(2) of the APA as amended. Agency (EPA). enterprises, and government entities ACTION: Direct final rule. with jurisdiction over populations of List of Subjects in 40 CFR Part 52 SUMMARY: less than 50,000. Environmental protection, Air EPA is conditionally SIP approvals under section 110 and pollution control, Hydrocarbons, approving a State Implementation Plan subchapter I, part D of the CAA do not Incorporation by reference, (SIP) revision submitted by the create any new requirements, but Intergovernmental relations, Ozone, Commonwealth of Massachusetts. This simply approve requirements that the Reporting and recordkeeping revision contains a regulation to reduce State is already imposing. Therefore, requirements. volatile organic compound (VOC) because the Federal SIP-approval does emissions from marine vessel loading not impose any new requirements, I Dated: July 22, 1996. operations. The intended effect of this certify that it does not have a significant A. Stanley Meiburg, action is to conditionally approve this impact on any small entities affected. Acting Regional Administrator. regulation into the Massachusetts SIP. Moreover, due to the nature of the Part 52 of chapter I, title 40, Code of This action is being taken in accordance Federal-state relationship under the Federal Regulations, is amended as with the Clean Air Act. CAA, preparation of a regulatory follows: DATES: This action will become effective flexibility analysis would constitute October 28, 1996, unless notice is Federal inquiry into the economic PART 52Ð[AMENDED] received by September 26, 1996, that reasonableness of state action. The CAA adverse or critical comments will be forbids EPA to base its actions 1. The authority citation for part 52 submitted. If the effective date is concerning SIPs on such grounds. continues to read as follows: delayed, timely notice will be published Union Electric Co. v. U.S. E.P.A., 427 Authority: 42.U.S.C. 7401–7671q. in the Federal Register. 43974 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

ADDRESSES: Comments may be mailed to ozone standard by December 31, 1982. This regulation also limits the loading Susan Studlien, Deputy Director, Office Those areas that submitted an of marine tank vessels to those vessels of Ecosystem Protection, U.S. attainment demonstration projecting that are vapor tight. Environmental Protection Agency, attainment by that date were required to Massachusetts’ marine vessel rule will Region I, JFK Federal Building, Boston, adopt RACT for sources covered by the reduce VOC emissions. VOCs contribute MA 02203. Copies of the documents Group I and II CTGs. Those areas that to the production of ground level ozone relevant to this action are available for sought an extension of the attainment and smog. This regulation was adopted public inspection during normal date under Section 172(a)(2) to as late as as part of an effort to achieve the business hours, by appointment at the December 31, 1987 were required to National Ambient Air Quality Standard Office of Ecosystem Protection, U.S. adopt RACT for all CTG sources and for (NAAQS) for ozone. The following is Environmental Protection Agency, all major (i.e., 100 ton per year or more EPA’s evaluation of 310 CMR 7.24(8). Region I, One Congress Street, 11th of VOC emissions) non-CTG sources. EPA’s Evaluation of Massachusetts’ Floor, Boston, MA; Air and Radiation On November 15, 1990, amendments Submittal Docket and Information Center, U.S. to the Clean Air Act were enacted. Pub. Environmental Protection Agency, 401 L. 101–549, 104 Stat. 2399, codified at In determining the approvability of a M Street, SW. (LE–131), Washington, 42 U.S.C. §§ 7401–7671q. Pursuant to VOC rule, EPA must evaluate the rule for consistency with the requirements of D.C. 20460; and the Division of Air the 1990 Amendments, all of the Act and EPA regulations, as found Quality Control, Commonwealth of Massachusetts was classified as serious in Section 110 and Part D of the Act and Massachusetts, Department of nonattainment for ozone (56 FR 56694 40 CFR Part 51 (Requirements for Environmental Protection, One Winter (Nov. 6, 1991)). Street, 8th Floor, Boston, MA 02108. Preparation, Adoption, and Submittal of Section 182(b)(2) of the amended Act Implementation Plans). EPA’s FOR FURTHER INFORMATION CONTACT: requires States to adopt RACT rules for interpretation of these requirements, Anne E. Arnold, (617) 565–3166. all areas designated nonattainment for which forms the basis for today’s action, SUPPLEMENTARY INFORMATION: On ozone and classified as moderate or appears in various EPA policy guidance January 11, 1995, the Massachusetts above. There are three parts to the documents. The specific guidance relied Department of Environmental Protection Section 182(b)(2) RACT requirement: (1) on for this action is referenced within submitted a formal State RACT for sources covered by an existing the technical support document and this Implementation Plan (SIP) submittal CTG—i.e., a CTG issued prior to the notice. For the purpose of assisting State containing a new regulation 310 CMR enactment of the 1990 amendments to and local agencies in developing RACT 7.24(8) ‘‘Marine Volatile Organic Liquid the Act; (2) RACT for sources covered rules, EPA prepared a series of CTG Transfer’’ as well as amendments to 310 by a post-enactment CTG; and (3) all documents. The CTGs are based on the CMR 7.00 ‘‘Definitions.’’ These major sources not covered by a CTG, underlying requirements of the Act and regulations had been recently adopted i.e., non-CTG sources. Also, under specify presumptive norms for RACT for pursuant to the reasonable further Section 182(c) of the Act, the major specific source categories. EPA has not progress requirements and the volatile source definition for serious yet developed CTGs to cover all sources organic compound reasonable available nonattainment areas was lowered to of VOC emissions. Further control technology (VOC RACT) include sources that have a potential to interpretations of EPA policy are found requirements of the Clean Air Act (CAA) emit 50 tons or greater of VOCs per year. in, but not limited to, the following: (1) [Sections 182(b)(1) and 182(b)(2)(C)]. In In response to the Act’s requirement the proposed Post-1987 ozone and addition, on March 25, 1995, DEP to regulate major non-CTG VOC sources, carbon monoxide policy, 52 FR 45044 submitted additional documentation Massachusetts adopted 310 CMR 7.24(8) (November 24, 1987); (2) the document indicating that these regulations became ‘‘Marine Vessel Transfer Operations’’ entitled, ‘‘Issues Relating to VOC effective on January 27, 1995. and submitted this rule to EPA as a SIP Regulation Cutpoints, Deficiencies, and revision on January 11, 1995. Deviations, Clarification to Appendix D Background Massachusetts’ marine vessel rule is of November 24, 1987 Federal Register Under the pre-amended Clean Air Act briefly summarized below. Notice,’’ otherwise known as the ‘‘Blue (i.e., the Clean Air Act before the 310 CMR 7.24(8) ‘‘Marine Vessel Book’’ (notice of availability was enactment of the amendments of Transfer Operations’’ published in the Federal Register on November 15, 1990), ozone May 25, 1988); and (3) the ‘‘Model nonattainment areas were required to This regulation contains requirements Volatile Organic Compound Rules for adopt RACT rules for sources of VOC for reducing VOC emissions from Reasonably Available Control emissions. EPA issued three sets of loading events in which organic liquid Technology,’’ (Model VOC RACT Rules) control technique guideline (CTG) is loaded onto marine tank vessels or in issued as a staff working draft in June documents, establishing a ‘‘presumptive which any liquid is loaded into a of 1992. In general, these guidance norm’’ for RACT for various categories marine tank vessel which previously documents have been set forth to ensure of VOC sources. The three sets of CTGs held an organic liquid. Massachusetts’ that VOC rules are fully enforceable and were: (1) Group I—issued before January rule prohibits a loading event to occur strengthen or maintain the SIP. 1978 (15 CTGs); (2) Group II—issued in unless: In addition, Section 183(f) of the 1978 (9 CTGs); and (3) Group III—issued (1) marine tank vessel VOC emissions amended Act specifically requires EPA in the early 1980’s (5 CTGs). Those are limited to 2 lbs per 1,000 bbls of to promulgate RACT standards to sources not covered by a CTG were organic liquid transferred; or reduce VOC emissions from the loading called non-CTG sources. EPA (2) marine tank vessel VOC emissions and unloading of marine tank vessels. determined that the area’s SIP-approved are reduced at least 95 percent by Furthermore, on November 12, 1993 (58 attainment date established which weight from uncontrolled conditions FR 60021), marine vessels were added RACT rules the area needed to adopt when using a recovery device or at least to the list of those categories for which and implement. Under Section 98 percent by weight from uncontrolled EPA will promulgate a maximum 172(a)(1), ozone nonattainment areas conditions when using a combustion achievable control technology (MACT) were generally required to attain the device. standard. On September 19, 1995 (60 FR Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43975

48388), EPA promulgated both RACT in 3.2 tons of VOC per summer day the lack of emission limits for ballasting and MACT standards for marine tank (tpsd), which includes 2.8 tpsd from operations) within one year of the date vessels. ballasting and 0.4 tpsd from loading of publication of EPA’s conditional EPA has evaluated Massachusetts’ operations. Massachusetts’ marine approval. If the Commonwealth fails to marine vessel rule and has found that it vessel rule SIP submittal states that do so, this approval will become a is generally consistent with EPA’s ballasting emissions will be reduced by disapproval on October 28, 1997. EPA national marine vessel rule and current 2.1 tpsd. This statement assumes that will notify the Commonwealth by letter EPA guidance. There are, however, two ballasting operations are subject to a 95 that this action has occurred. At that outstanding issues associated with the percent control efficiency requirement time, the conditionally approved Commonwealth’s regulation. (i.e., 0.95 control efficiency x 0.8 rule submittal will no longer be a part of the effectiveness x 2.8 tpsd uncontrolled = approved Massachusetts SIP. EPA Outstanding Issues 2.1 tpsd reduction). Therefore, subsequently will publish a notice in 1. Lack of Monitoring Requirements Massachusetts’ marine vessel rule the notice section of the Federal should require that ballasting operations Register notifying the public that the Massachusetts’ regulation requires be subject to the emission limitations conditional approval automatically that, upon initial startup of the control stated in Section 7.24(8)(c)(1)(B) of the converted to a disapproval. If the equipment, the owner or operator of a rule. Commonwealth meets its commitment, marine terminal conduct an initial Massachusetts’ regulation and EPA’s within the applicable time frame, the performance test in order to evaluation are detailed in a conditionally approved submission will demonstrate compliance. However, as memorandum, dated April 23, 1996, remain a part of the SIP until EPA takes was stated in EPA’s public hearing entitled ‘‘Technical Support final action approving or disapproving comments on Massachusetts’ proposed Document—Massachusetts—Marine the new submittal. If EPA disapproves version of this rule, the regulation Vessel Rule.’’ Copies of that document the new submittal, the conditionally should also require the facility to are available, upon request, from the approved submittal will also be demonstrate continued compliance as is EPA Regional Office listed in the disapproved at that time. If EPA required under EPA’s national marine ADDRESSES section of this notice. approves the new submittal, the newly vessel rule (40 CFR § 63.564). EPA is publishing this action without submitted regulations will be fully Specifically, the regulation should prior proposal and anticipates no approved and will replace the require that certain parameters be adverse comments. However, in a conditionally approved regulations in monitored continuously while marine separate document in this Federal the SIP. vessel loading or ballasting operations Register publication, EPA is proposing If the conditional approval is are occurring and that records be kept to approve the SIP revision should converted to a disapproval, such action of all measurements needed to adverse or critical comments be filed. will trigger EPA’s authority to impose demonstrate compliance with the This action will be effective October 28, sanctions under Section 110(m) of the applicable standard including all data 1996, unless adverse or critical CAA at the time EPA issues the final collected in any periods of operation comments are received by September disapproval or on the date the during which the previously established 26, 1996. Commonwealth fails to meet its parameter boundaries are exceeded. If the EPA receives such comments, commitment. In the latter case, EPA will 2. Emission Limits for Ballasting this action will be withdrawn before the notify the Commonwealth by letter that Operations effective date by publishing a the conditional approval has been subsequent notice that will withdraw converted to a disapproval and that Massachusetts’ marine vessel rule the final action. All public comments EPA’s sanctions authority has been applies to the loading of an organic received will then be addressed in a triggered. In addition, the final liquid and to ballasting operations. subsequent final rule based on this disapproval triggers the federal However, the emissions limitations action serving as a proposed rule. The implementation plan (FIP) requirement stated in Section 7.24(8)(c)(1) of the rule EPA will not institute a second under Section 110(c). only apply to ‘‘loading events.’’ This comment period on this action. Any Under the Regulatory Flexibility Act, term, as defined in 310 CMR 7.00, does parties interested in commenting on this 5 U.S.C. 600 et seq., EPA must prepare not include ballasting operations. action should do so at this time. If no a regulatory flexibility analysis Although Sections 7.24(8)(c)(2) and such comments are received, the public assessing the impact of any proposed or 7.24(8)(d) of Massachusetts’ marine is advised that this action will be final rule on small entities. 5 U.S.C. vessel rule do require control equipment effective on October 28, 1996. §§ 603 and 604. Alternatively, EPA may to be used during ballasting, these certify that the rule will not have a sections do not require specific Final Action significant impact on a substantial emission limitations to be met during EPA is conditionally approving 310 number of small entities. Small entities ballasting operations. CMR 7.24(8) ‘‘Marine Vessel Transfer include small businesses, small not-for- EPA’s national marine vessel rule Operations’’ and the associated 310 profit enterprises, and government does not apply to ballasting operations. CMR 7.00 ‘‘Definitions’’ into the entities with jurisdiction over The absence of emission limitations for Massachusetts SIP. populations of less than 50,000. ballasting operations in Massachusetts’ Under Section 110(k)(4) of the Act, Conditional approvals of SIP rule, however, is inconsistent with the EPA may conditionally approve a plan submittals under Section 110 and information contained in Massachusetts’ based on a commitment from the State subchapter I, Part D of the CAA do not reasonable further progress (RFP) plan to adopt specific enforceable measures create any new requirements, but regarding the reduction in VOC by a date certain, but not later than 1 simply approve requirements that the emissions that is expected to result from year from the date of approval. On State is already imposing. Therefore, the implementation of this rule. February 1, 1996, Massachusetts because the federal SIP-approval does Specifically, Massachusetts’ 1990 base submitted a written commitment to not impose any new requirements, I year inventory shows that uncontrolled address the issues outlined above (i.e., certify that it does not have a significant marine vessel transfer operations result the lack of monitoring requirements and impact on any small entities affected. 43976 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

Moreover, due to the nature of the Representatives and the Comptroller Subpart WÐMassachusetts federal-State relationship under the General of the General Accounting CAA, preparation of a regulatory Office prior to publication of the rule in 2. Section 52.1119 is amended by flexibility analysis would constitute today’s Federal Register. This rule is adding paragraph (a)(2) to read as federal inquiry into the economic not a ‘‘major rule’’ as defined by 5 follows: reasonableness of State action. The CAA U.S.C. 804(2). § 52.1119 Identification of plan-conditional forbids EPA to base its actions This action has been classified as a approval. concerning SIPs on such grounds. Table 3 action for signature by the * * * * * * Union Electric Co. v. U.S. E.P.A., 427 Regional Administrator under the (a) * * * U.S. 246, 256–66 (S. Ct. 1976); 42 U.S.C. procedures published in the Federal (2) Revisions to the State 7410 (a)(2). Register on January 19, 1989 (54 FR Implementation Plan submitted by the If the conditional approval is 2214–2225), as revised by a July 10, Massachusetts Department of converted to a disapproval under 1995 memorandum from Mary Nichols, Environmental Protection on January Section 110(k), based on the Assistant Administrator for Air and 11, 1995 and March 29, 1995. Commonwealth’s failure to meet the Radiation. The Office of Management (i) Incorporation by reference. commitment, it will not affect any and Budget (OMB) has exempted this (A) Letters from the Massachusetts existing State requirements applicable regulatory action from review under Department of Environmental Protection to small entities. Federal disapproval of Executive Order 12866. dated January 11, 1995 and March 29, the State submittal does not affect its 1995 submitting a revision to the Nothing in this action should be State-enforceability. Moreover, EPA’s Massachusetts State Implementation construed as permitting or allowing or disapproval of the submittal does not Plan. impose a new federal requirement. establishing a precedent for any future (B) 310 CMR 7.24(8) ‘‘Marine Vessel Therefore, EPA certifies that this request for revision to any State Transfer Operations’’ effective in the disapproval action does not have a Implementation Plan. Each request for Commonwealth of Massachusetts on significant impact on a substantial revision to the State Implementation January 27, 1995. number of small entities because it does Plan shall be considered separately in (C) Definitions of ‘‘combustion not remove existing State requirements light of specific technical, economic, device,’’ ‘‘leak,’’ ‘‘leaking component,’’ nor does it substitute a new federal and environmental factors and in ‘‘lightering or lightering operation,’’ requirement. relation to relevant statutory and ‘‘loading event,’’ ‘‘marine tank vessel,’’ Under Sections 202, 203, and 205 of regulatory requirements. ‘‘marine terminal,’’ ‘‘marine vessel,’’ the Unfunded Mandates Reform Act of Under Section 307(b)(1) of the Clean ‘‘organic liquid,’’ and ‘‘recovery device’’ 1995 (‘‘Unfunded Mandates Act’’), Air Act, petitions for judicial review of in 310 CMR 7.00 ‘‘Definitions’’ effective signed into law on March 22, 1995, EPA this action must be filed in the United in the Commonwealth of Massachusetts must undertake various actions in States Court of Appeals for the on January 27, 1995. association with proposed or final rules appropriate circuit by October 28, 1996. (ii) Additional materials. that include a Federal mandate that may Filing a petition for reconsideration by (A) Letter from the Massachusetts result in estimated costs of $100 million the Administrator of this final rule does Department of Environmental Protection or more to the private sector, or to State, not affect the finality of this rule for the dated February 1, 1996 committing to local, or tribal governments in the purposes of judicial review nor does it address the outstanding issues aggregate. extend the time within which a petition associated with 310 CMR 7.24(8) as Through submission of this State for judicial review may be filed, and identified by EPA in a letter dated Implementation Plan revision, the State shall not postpone the effectiveness of September 19, 1995. and any affected local or tribal such rule or action. This action may not (B) Nonregulatory portions of the governments have elected to adopt the be challenged later in proceedings to submittal. program provided for under Sections enforce its requirements. (See Section [FR Doc. 96–21692 Filed 8–26–96; 8:45 am] 182(b) of the Clean Air Act. These rules 307(b)(2).) BILLING CODE 6560±50±P may bind State, local and tribal Note: Incorporation by reference of the governments to perform certain actions State Implementation Plan for the and also require the private sector to Commonwealth of Massachusetts was 40 CFR Part 52 perform certain duties. To the extent approved by the Director of the Federal that the rules being approved by this Register on July 1, 1982. [CA 014±0014; FRL±5553±5] action will impose no new List of Subjects in 40 CFR Part 52 requirements; such sources are already Approval and Promulgation of subject to these regulations under State Environmental protection, Air Implementation Plans; California State law. Accordingly, no additional costs to pollution control, Hydrocarbons, Implementation Plan Revision, El State, local, or tribal governments, or to Incorporation by reference, Ozone. Dorado County Air Pollution Control District, Kern County Air Pollution the private sector, result from this Dated: July 22, 1996. action. EPA has also determined that Control District, Placer County Air John P. DeVillars, this final action does not include a Pollution Control District, Santa mandate that may result in estimated Regional Administrator, Region I. Barbara County Air Pollution Control costs of $100 million or more to State, Part 52 of chapter I, title 40 of the District, and the South Coast Air local, or tribal governments in the Code of Federal Regulations is amended Quality Management District; aggregate or to the private sector. as follows: Withdrawal Under 5 U.S.C. 801(a)(1)(A) as added AGENCY: Environmental Protection by the Small Business Regulatory PART 52Ð[AMENDED] Agency (EPA). Enforcement Fairness Act of 1996, EPA ACTION: Withdrawal of direct final rule. submitted a report containing this rule 1. The authority citation for part 52 and other required information to the continues to read as follows: SUMMARY: Due to an adverse comment, U.S. Senate, the U.S. House of Authority: 42 U.S.C. 7401–7671q. EPA is withdrawing the direct final rule Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43977 for the approval of revisions to the Subpart FÐCalifornia of the Federal Register. The complete California State Implementation Plan. text of this Second R&O is available for EPA published the direct final rule on § 52.220 [Amended] inspection and copying during normal June 12, 1996 (61 FR 29659), approving 2. Section 52.220 is amended by business hours in the FCC Reference revisions to rules from the following air removing paragraphs (c)(185)(i)(A)(9), Center (Room 239), 1919 M Street, NW., pollution control districts: El Dorado (194)(i)(G), (198)(i)(K), (207)(i)(B)(2), Washington, DC, and also may be County Air Pollution Control District and (225)(i)(B)(3). purchased from the Commission’s copy (EDCAPCD), Kern County Air Pollution [FR Doc. 96–21691 Filed 8–26–96; 8:45 am] contractor, International Transcription Control District (KCAPCD), Placer BILLING CODE 6560±50±P Service, (202) 857–3800, 2100 M Street, County Air Pollution Control District NW., Suite 140, Washington, DC, 20037. (PCAPCD), Santa Barbara County Air Synopsis of the Second Report and Pollution Control District (SBCAPCD), FEDERAL COMMUNICATIONS Order and the South Coast Air Quality COMMISSION Management District (SCAQMD). As 1. In this Second R&O, the stated in that Federal Register 47 CFR Parts 20 and 22 Commission extends its existing rule under which cellular licensees are document, if adverse or critical [CC Docket No. 94±54; FCC 96±284] comments were received by July 12, required to provide manual roaming service upon request to subscribers in 1996, the effective date would be Provision of Roaming Services by delayed and notice would be published good standing of any cellular carrier. Commercial Mobile Radio Service 2. ‘‘Roaming’’ occurs when the in the Federal Register. EPA Providers subsequently received adverse subscriber of one commercial mobile comments on that direct final rule. EPA AGENCY: Federal Communications radio service (CMRS) provider utilizes the facilities of another CMRS provider will address the comments received in Commission. with which the subscriber has no direct a subsequent final action in the near ACTION: Final rule. pre-existing service or financial future. EPA will not institute a second relationship to place an outgoing call, to comment period on this document. SUMMARY: The Federal Communications Commission adopts a Second Report receive an incoming call, or to continue EFFECTIVE DATE: Withdrawal of the and Order and Third Notice of Proposed an in-progress call. Typically, although direct final rule is effective on August Rulemaking regarding the offering of not always, roaming occurs when the 27, 1996. roaming services by commercial mobile subscriber is physically located outside FOR FURTHER INFORMATION CONTACT: Erik radio service providers. The Third the service area of the provider to which Beck, Rulemaking Section (A–5–3), Air Notice of Proposed Rulemaking portion he or she subscribes. Under § 22.901 of and Toxics Division, U.S. of this decision is summarized the Commission’s rules, cellular system Environmental Protection Agency, elsewhere in this edition of the Federal licensees ‘‘must provide cellular mobile Region IX, 75 Hawthorne Street, San Register. The Second Report and Order radiotelephone service upon request to Francisco, CA 94105, Internet: expands the scope of the Commission’s all cellular subscribers in good standing, [email protected] Telephone: existing ‘‘manual’’ roaming rule. As a including roamers, while such (415) 744–1202. result of this action, cellular, broadband subscribers are located within any personal communications services and portion of the authorized cellular SUPPLEMENTARY INFORMATION: See the certain specialized mobile radio geographic service area * * * where information provided in the direct final licensees must, as a condition of their facilities have been constructed and rule located in the final rules section of licenses, provide service upon request service to subscribers has commenced.’’ the June 12, 1996 Federal Register, and to any individual roamer whose handset 3. The Commission initiated this in the Federal Register document is technically capable of accessing their proceeding in a Notice of Proposed located in the proposed rule section of networks. This decision is needed to Rulemaking and Notice of Inquiry, 59 the June 12, 1996 (61 FR 29725) Federal ensure that customers of all providers FR 35664, July 13, 1994, which Register. competing in the mass market for two- requested comment regarding whether the obligation to permit roaming should List of Subjects in 40 CFR Part 52 way, real-time, interconnected switched voice service have an equal opportunity be extended to all CMRS, what regulatory standards are appropriate to Environmental protection, Air to obtain manual roaming service if they promote roaming, and what technical pollution control, Hydrocarbons, are using technically compatible issues or requirements are implicated. Incorporation by reference, equipment, thus promoting competition. Intergovernmental relations, Ozone, In the Second Notice of Proposed EFFECTIVE DATE: October 28, 1996. Reporting and recordkeeping Rulemaking (Second NPRM), 60 FR requirements, Volatile organic FOR FURTHER INFORMATION CONTACT: 20949, April 28, 1995, the Commission compounds. Jeffrey Steinberg, Wireless tentatively concluded that roaming Telecommunications Bureau, (202) 418– Dated: August 8, 1996. service is important to the development 1310. of a seamless CMRS ‘‘network of Alexis Strauss, SUPPLEMENTARY INFORMATION: This is a networks.’’ The Second NPRM also Acting Regional Administrator. summary of the Second Report and tentatively concluded that uncertainties Subpart F of part 52, chapter I, title 40 Order (Second R&O) portion of the concerning the technological of the Code of Federal Regulations is Commission’s Second Report and Order development of non-cellular CMRS and amended as follows: and Third Notice of Proposed the likelihood that market forces would Rulemaking in CC Docket No. 94–54, adequately promote the availability of PART 52Ð[AMENDED] FCC 96–284, adopted June 27, 1996, and roaming counseled regulatory caution. released August 13, 1996. The summary Therefore, the Commission proposed, in 1. The authority citation for part 52 of the Third Notice of Proposed lieu of a rule, to monitor the continues to read as follows: Rulemaking portion of this decision development of roaming service and to Authority: 42 U.S.C. 7401–7671q. may be found elsewhere in this edition intercede as appropriate. In addition, 43978 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations the Commission requested comment on consists of 800 MHz and 900 MHz SMR to the roaming rule. Allegations that several other issues related to roaming, licensees that hold geographic area particular practices by non-covered including the technical feasibility of licenses. The second covers incumbent CMRS providers are unjust, cross-service roaming, the necessity of wide area SMR licensees, defined as unreasonable or otherwise in violation direct physical interconnection to licensees who have obtained extended of the Communications Act would be facilitate roaming, the necessity of implementation authorizations in the grounds for complaint under section access to subscriber databases and any 800 MHz or 900 MHz SMR service, 208 of that Act. privacy or proprietary issues raised, and either by waiver or under § 90.629 of the Final Regulatory Flexibility Analysis the technical and contractual Commission’s rules. Within each of arrangements that are currently used to these classes, ‘‘covered SMR providers’’ 9. As required by section 603 of the provide roaming in the cellular service. includes only licensees that offer real- Regulatory Flexibility Act, 5 USC 603 4. At the outset, the Commission time, two-way switched voice service (RFA), an Initial Regulatory Flexibility notes that Sections 201(b) and 202(a) of that is interconnected with the public Analysis (IRFA) was incorporated in the the Communications Act apply to CMRS switched network, either on a stand- Second NPRM in this proceeding. The providers and govern the provision of alone basis or packaged with other Commission sought written public common carrier communications telecommunications services. This is the comments on the proposals in the services.1 The Commission agrees with same group of SMR licensees to which Second NPRM, including on the IRFA. those commenters that argue that the Commission applied its recently The Commission’s Final Regulatory roaming is a common carrier service adopted rule governing restrictions on Flexibility Analysis (FRFA) in this because it gives end users access to a resale. Second R&O conforms to the RFA, as foreign network in order to 7. Under the rule adopted in this amended by the Contract With America communicate messages of their own Second R&O, cellular, broadband PCS, Advancement Act of 1996, Pub. L. 104– choosing. The Commission also notes and covered SMR licensees are required 121, 110 Stat. 847 (1996) (CWAAA).3 that it has authority to impose a roaming to provide manual roaming to any I. Need for and Purpose of this Action requirement in the public interest subscriber of any of these services who pursuant to its license conditioning is using a handset that is technically 10. In this decision, the Commission authority under sections 303(r) and 309 capable of accessing the licensee’s extends its existing rule under which of the Communications Act. system. The rule does not require cellular licensees are required to 5. The record submitted in response licensees to modify their systems in provide manual roaming service upon to the Second NPRM demonstrates that order to provide service to any end user. request to subscribers in good standing roaming capability is widely available to To avoid any uncertainty, this decision of any cellular carrier. Under the rule cellular subscribers, is highly valued by clarifies that any subscriber to any adopted in this decision, cellular, those subscribers, and is one of the covered service with a technically broadband personal communications industry’s fastest growing sources of cellular-compatible handset has the services (PCS), and certain specialized revenue. Thus, roaming capability may same right as a cellular subscriber to mobile radio (SMR) licensees must be a key competitive consideration in manually roam on cellular systems. provide manual roaming service upon the wireless marketplace, and newer Furthermore, the existing rule is request to subscribers in good standing entrants may be at a competitive extended to obligate broadband PCS and of all such carriers, provided the disadvantage vis-a-vis incumbent covered SMR, as well as cellular, subscriber is using a handset that is wireless carriers if their subscribers licensees. Because this Second R&O technically capable of accessing the have no ability to roam on other furthers the public interest by licensee’s system. This action will networks. Having said that, the facilitating the widespread availability ensure that customers of all providers Commission recognizes that roaming of roaming, the Commission makes competing in the mass market for two- regulation may impose significant costs compliance with this rule a condition of way, real-time, interconnected switched and burdens on CMRS providers and cellular, broadband PCS and covered voice service have an equal opportunity that it should narrowly tailor its actions SMR licenses under sections 303(r) and to obtain manual roaming service, if to avoid placing an undue burden on 309 of the Communications Act. they are using technically compatible such providers. 8. By contrast, the record does not equipment. In this way, the rule will 6. Based on comments in the record establish that ubiquitous roaming promote the development of and the experience of the first capability is important to the competition by ensuring that newer broadband PCS licensee to begin competitive success or utility of mobile entrants to the market, as well as service, the Commission concludes that services other than those offered by competitors without extensive cellular, broadband PCS and covered the public interest will be served by affiliations, are not competitively SMR providers. The Commission extending its existing manual roaming disadvantaged by the inability of their therefore concludes that its action shall rule, which is part of the Commission’s subscribers to roam. cellular service rules,2 to obligate all be limited to such licensees. In particular, because they do not compete II. Summary of Issues Raised by the CMRS licensees competing in the mass substantially with cellular and Public Comments in Response to the market for real-time, two-way voice broadband PCS providers, local SMR Initial Regulatory Flexibility Analysis services and to protect the subscribers of licensees offering mainly dispatch all carriers offering such services. That 11. No comments were filed in direct services to specialized customers in a group consists of cellular, broadband response to the IRFA. In general non-cellular system configuration, as PCS and covered SMR providers. These comments on the Second NPRM, well as licensees offering only data, one- ‘‘covered SMR providers’’ include two however, several commenters raised way, or stored voice services on an classes of SMR licensees. The first issues that might affect small entities. interconnected basis, are not covered by Some of these commenters argued that the roaming rule. Of course, any SMR 1 See 47 U.S.C. 332(c)(1) (CMRS providers are subject to duties of common carriers, including provider that is not interconnected to 3 Subtitle II of the CWAAA is the Small Business Sections 201 and 202). the public switched network does not Regulatory Enforcement Fairness Act of 1996 2 See 47 CFR 22.901. offer CMRS, and therefore is not subject (SBREFA), codified at 5 USC 601 et seq. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43979 the Commission should adopt a roaming more employees.5 The Commission broadband PCS auctions has been rule in order to protect the ability of therefore used the 1992 Census of approved by the SBA.7 carriers without a nationwide footprint Transportation, Communications, and 17. The Commission has auctioned or extensive affiliations to compete. Utilities, conducted by the Bureau of the broadband PCS licenses in Blocks A, B, Other commenters, however, expressed Census, which is the most recent and C. The Commission does not have concern that compliance with a information available. This document sufficient data to determine how many requirement to offer roaming could be shows that only 12 radiotelephone firms small businesses bid successfully for technically infeasible or unduly costly out of a total of 1,178 such firms which licenses in Blocks A and B. As of now, under some circumstances. In operated during 1992 had 1,000 or more there are 90 non-defaulting winning particular, several commenters urged employees.6 Therefore, even if all 12 of bidders that qualify as small entities in the Commission not to require carriers these firms were cellular telephone the Block C auctions. Based on this to adopt particular technologies or companies, nearly all cellular carriers information, the Commission concludes modify their networks in order to were small businesses under the SBA’s that the number of broadband PCS facilitate roaming. Some commenters definition. The Commission assumes, licensees affected by the rule adopted in also argued that a roaming requirement for purposes of its evaluations and this Second R&O includes the 90 could expose carriers to financial losses conclusions in this FRFA, that all of the winning bidders that qualify as small due to fraud. Two alliances of rural current cellular licensees are small entities in the Block C broadband PCS cellular carriers argued that, in drafting entities, as that term is defined by the auctions. SBA. Although there are 1,758 cellular any roaming rule, the Commission 18. At present, no licenses have been licenses, the Commission does not know should consider the technical obstacles awarded for Blocks D, E, and F of the number of cellular licensees, since faced by providers that do not have SS7 broadband PCS spectrum. Therefore, a cellular licensee may own several capability, as well as rural cellular there are no small businesses currently licensees’ alleged lack of market power. licenses. 15. Two alliances of rural cellular providing these services. However, a III. Description and Estimate of the licensees filed comments in which they total of 1,479 licenses will be awarded Small Entities Subject to the Rules argued that a roaming rule may have an in the D, E, and F Block broadband PCS 12. The rule adopted in this Second especially large impact on rural auctions, which are scheduled to begin R&O will apply to cellular, broadband licensees. In its comments, the Rural on August 26, 1996. Eligibility for the PCS, and geographic area 800 MHz and Cellular Coalition states that it has 12 493 F Block licenses is limited to 900 MHz SMR licensees, including members which serve licensed cellular entrepreneurs with average gross licensees who have obtained extended areas encompassing approximately 3 revenues of not more than $125 million. implementation authorizations in the million people; the Rural Cellular However, the Commission cannot 800 MHz or 900 MHz SMR services, Association states that its members estimate how many of these licenses either by waiver or under § 90.629 of the serve areas with a cumulative will be won by small entities, nor how Commission’s rules. However, the rule population of more than 6 million. The many small entities will win D and E will apply to SMR licensees only if they Commission does not have information, Block licenses. Given the facts that offer real-time, two-way voice service however, sufficient to support a nearly all radiotelephone companies that is interconnected with the public meaningful estimate regarding the total have fewer than 1,000 employees and switched network. number of rural licensees, nor does it that no reliable estimate of the number have specific information regarding how of prospective D, E, and F Block A. Estimates for Cellular Licensees many rural cellular licensees are small licensees can be made, the Commission 13. The Commission has not entities. For purposes of this FRFA, the assumes, for purposes of its evaluations developed a definition of small entities Commission assumes that all rural and conclusions in this FRFA, that all applicable to cellular licensees. cellular licensees are small entities, as of the licenses will be awarded to small Therefore, the applicable definition of that term is defined by the SBA. entities, as that term is defined by the small entity is the definition under the SBA. B. Estimates for Broadband PCS Small Business Administration (SBA) Licensees C. Estimates for SMR Licensees rules applicable to radiotelephone companies. This definition provides 16. The broadband PCS spectrum is 19. Pursuant to 47 CFR 90.814(b)(1), that a small entity is a radiotelephone divided into six frequency blocks the Commission has defined ‘‘small company employing fewer than 1,500 designated A through F. Pursuant to 47 entity’’ in auctions for geographic area persons.4 Since the Regulatory CFR 24.720(b), the Commission has 800 MHz and 900 MHz SMR licenses as Flexibility Act amendments were not in defined ‘‘small entity’’ in the auctions a firm that had average gross revenues effect until the record in this proceeding for Blocks C and F as a firm that had of not more than $15 million in the was closed, the Commission was unable average gross revenues of not more than three previous calendar years. This to request information regarding the $40 million in the three previous regulation defining ‘‘small entity’’ in the number of small cellular businesses and calendar years. This regulation defining context of 800 MHz and 900 MHz SMR is unable at this time to determine the ‘‘small entity’’ in the context of has been approved by the SBA.8 precise number of cellular firms which are small businesses. 5 U.S. Small Business Administration 1992 7 See Implementation of section 309(j) of the 14. The size data provided by the SBA Economic Census Employment Report, Bureau of Communications Act—Competitive Bidding, PP the Census, U.S. Department of Commerce, SIC Docket No. 93–253, Fifth Report and Order, 59 FR does not enable the Commission to Code 4812 (radiotelephone communications 37566 (July 22, 1994). make a meaningful estimate of the industry data adopted by the SBA Office of 8 See Amendment of parts 2 and 90 of the number of cellular providers which are Advocacy). Commission’s rules to Provide for the Use of 200 small entities because it combines all 6 U.S. Bureau of the Census, U.S. Department of Channels Outside the Designated Filing Areas in Commerce, 1992 Census of Transportation, the 896–901 MHz and the 935–940 MHz Bands radiotelephone companies with 500 or Communications, and Utilities, UC92–S–1, Subject Allotted to the Specialized Mobile Radio Pool, PR Series, Establishment and Firm Size, Table 5, Docket No. 89–583, Second Order on 4 13 CFR 121.201, Standard Industrial Employment Size of Firms: 1992, SIC Code 4812 Reconsideration and Seventh Report and Order, 60 Classification (SIC) Code 4812. (issued May 1995). Continued 43980 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

20. The rule adopted in this Second IV. Summary of Projected Reporting, the last group of initial licenses for R&O applies to SMR providers in the Recordkeeping and Other Compliance currently allotted broadband PCS 800 MHz and 900 MHz bands that either Requirements spectrum. hold geographic area licenses or have 23. The rule adopted in this Second 26. Finally, the Commission believes obtained extended implementation R&O imposes no reporting or that the rule adopted in this Second authorizations. The Commission does recordkeeping requirements. The only R&O will benefit certain small entities not know how many firms provide 800 compliance requirement is that by ensuring that subscribers of MHz or 900 MHz geographic area SMR licensees subject to the rule (i.e., cellular service pursuant to extended providers that do not have a nationwide implementation authorizations, nor how licensees, broadband PCS licensees, and presence or affiliations will have the many of these providers have annual geographic area 800 MHz and 900 MHz same right to obtain roaming service as revenues of less than $15 million. Since SMR licensees that offer real-time, two- subscribers to competing larger carriers, the Regulatory Flexibility Act way, interconnected switched voice provided they are using technically amendments were not in effect until the service) must provide manual roaming compatible equipment. record in this proceeding was closed, service upon request to subscribers in good standing of covered services who VI. Significant Alternatives Considered the Commission was unable to request and Rejected information regarding the number of are using technically compatible equipment. small businesses in this category. The 27. The Commission considered and Commission does know that one of V. Steps Taken to Minimize the rejected the alternative of not extending these firms has over $15 million in Economic Impact on Small Entities its existing manual roaming rule beyond revenues. The Commission assumes, for 24. The rule adopted in this Second cellular licensees and cellular purposes of its evaluations and subscribers. Instead, the Commission conclusions in this FRFA, that all of the R&O only requires certain CMRS licensees to provide manual roaming concluded that the rule should extend remaining existing extended to broadband PCS and covered SMR implementation authorizations are held service to eligible subscribers upon request. The Commission determines on services in order to protect smaller and by small entities, as that term is defined newer providers of these services from by the SBA. the present record not to promulgate any rule governing roaming agreements likely competitive disadvantage. At the 21. The Commission recently held same time, the Commission rejected the auctions for geographic area licenses in between carriers, but instead to request further comment regarding the need for alternative of extending the rule to other the 900 MHz SMR band. There were 60 CMRS services because the record did winning bidders who qualified as small any such rule and the costs that it would impose. Thus, the Commission in not establish that ubiquitous roaming entities in the 900 MHz auction. Based capability is important to the on this information, the Commission this Second R&O avoids potential burdens that a rule governing competitive success or utility of these concludes that the number of services. The Commission also rejected geographic area SMR licensees affected intercarrier roaming agreements might the alternative of promulgating a rule by the rule adopted in this Second R&O impose on small entities, including governing intercarrier roaming includes these 60 small entities. questions regarding the feasibility and agreements in this Second R&O because 22. No auctions have been held for cost of offering automatic roaming the record did not sufficiently 800 MHz geographic area SMR licenses. under certain circumstances, the illuminate the costs and benefits of any Therefore, no small entities currently administrative costs of entering into such rule. Finally, the Commission hold these licenses. A total of 525 roaming agreements, and possible rejected any alternative that would licenses will be awarded for the upper exposure to fraud. Furthermore, the rule require carriers to adopt particular 200 channels in the 800 MHz requires covered licensees to provide technologies or modify their physical geographic area SMR auction. However, service only to subscribers who are networks. the Commission has not yet determined using equipment that is technically capable of accessing their systems. The how many licenses will be awarded for VII. Report to Congress the lower 230 channels in the 800 MHz rule therefore does not require carriers geographic area SMR auction. There is to adopt particular technologies or to 28. The Commission shall send a copy no basis to estimate, moreover, how modify their networks to accommodate of this Final Regulatory Flexibility many small entities within the SBA’s roamers using different technologies. Analysis, along with this Second Report definition will win these licenses. Given Because the rule neither requires and Order, in a report to Congress the facts that nearly all radiotelephone carriers to enter into roaming pursuant to SBREFA, 5 U.S.C. companies have fewer than 1,000 agreements nor impacts their 801(a)(1)(A). employees and that no reliable estimate technological choices, it does not Ordering Clause of the number of prospective 800 MHz implicate the concerns raised by rural licensees can be made, the Commission carriers. 25. The Commission also determines 29. Accordingly, it is ordered that the assumes, for purposes of its evaluations rule amendments appearing below are and conclusions in this FRFA, that all not to apply its roaming rule to CMRS providers other than cellular, broadband adopted and shall be effective October of the licenses will be awarded to small 28, 1996. entities, as that term is defined by the PCS and certain SMR licensees. Many of SBA. the providers that are thereby excluded List of Subjects from the rule are small entities, FR 48913 (September 21, 1995); Amendment of Part including paging, narrowband PCS, air- 47 CFR Part 20 90 of the Commission’s Rules to Facilitate Future ground, public coast service, and non- Development of SMR Systems in the 800 MHz covered SMR providers. In addition, the Communications common carriers Frequency Band, PR Docket No. 93–144, First Commission requests comment on Report and Order, Eighth Report and Order, and 47 CFR Part 22 Second Further Notice of Proposed Rulemaking, 61 whether it should sunset the rule FR 6212 (February 16, 1996). adopted herein five years after it awards Communications common carriers Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43981

Federal Communications Commission. 47 CFR Part 73 and/or modified information collections are due October 28, 1996. William F. Caton, [MM Docket No. 93±48; FCC 96±335] ADDRESSES: Acting Secretary. Comments on the Broadcast Services; Children's information collections contained Rule Changes Television herein should be submitted to Secretary, Parts 20 and 22 of Chapter I of Title Federal Communications Commission, 47 of the Code of Federal Regulations AGENCY: Federal Communications Room 222, 1919 M Street, NW., are amended as follows: Commission. Washington, DC 20554, and a copy ACTION: Final rule. submitted to Dorothy Conway, Federal PART 20ÐCOMMERCIAL MOBILE Communications Commission, Room RADIO SERVICES SUMMARY: This Report and Order 234, 1919 M Street, NW., Washington, amends the children’s television DC 20554, or via the Internet to 1. The authority citation for part 20 educational and informational [email protected]. continues to read as follows: programming requirements to FOR FURTHER INFORMATION CONTACT: Authority: Sec. 4, 303, and 332, 48 Stat. strengthen our enforcement of the Charles Logan, Kim Matthews, or Jane 1066, 1092, as amended; 47 U.S.C. 154, 303, Children’s Television Act of 1990 Gross, Mass Media Bureau, Policy and and 332, unless otherwise noted. (‘‘CTA’’). First, we adopt requirements Rules Division, (202) 418–2130. For 2. Section 20.12 is amended by designed to provide better information additional information concerning the revising the section heading and adding to the public about the shows information collections contained in new paragraph (c) to read as follows: broadcasters air to fulfill their obligation this Report and Order contact Dorothy under the CTA to air educational and Conway at 202–418–0217, or via the § 20.12 Resale and roaming. informational programming for Internet at [email protected]. * * * * * children. Such information will assist SUPPLEMENTARY INFORMATION: This is a (c) Roaming. Each licensee subject to parents to guide their children’s synopsis of the Commission’s Report this section must provide mobile radio television viewing, may ultimately and Order in MM Docket No. 93–48, service upon request to all subscribers increase the amount of educational adopted August 8, 1996, and released in good standing to the services of any programming available in the market, August 8, 1996. The complete text of carrier subject to this Section, including and will help parents and others to this Report and Order is available for roamers, while such subscribers are work with broadcasters in their inspection and copying during normal located within any portion of the community to improve educational business hours in the FCC Dockets licensee’s licensed service area where programming without government Branch (Room 230), 1919 M Street, NW., facilities have been constructed and intervention. Second, we adopt a Washington, DC, and also may be service to subscribers has commenced, definition of programming ‘‘specifically purchased from the Commission’s if such subscribers are using mobile designed’’ to educate or inform children duplicating contractor, ITS, at (202) equipment that is technically (or ‘‘core’’ programming) that provides 857–3800, 1919 M Street, NW., Room compatible with the licensee’s base better guidance to broadcasters 246, Washington, DC 20554. This Report stations. concerning their specific obligation & Order contains new or modified under the CTA to air such programming. information collections subject to the PART 22ÐPUBLIC MOBILE SERVICES Third, we adopt a processing guideline Paperwork Reduction Act of 1995 1. The authority citation for part 22 that will provide certainty for (PRA), Public Law No. 104–13. It will be continues to read as follows: broadcasters about how to comply with submitted to the Office of Management the CTA, counteract market and Budget (OMB) for review under Authority: Sec. 4, 303, and 332, 48 Stat. disincentives to air children’s Section 3507(d) of the PRA. OMB, the 1066, 1082, as amended; 47 U.S.C. 154, 303, educational and informational general public, and other Federal and 332, unless otherwise noted. programming, and facilitate staff agencies are invited to comment on the 2. Section 22.901 is amended by processing of the children’s educational new or modified information collections revising the introductory paragraph to programming portion of renewal contained in this proceeding. read as follows: applications. The purpose of these new Synopsis of Report and Order § 22.901 Cellular service requirements and rules is to improve public access to limitations. information about ‘‘core’’ programs, I. Introduction provide better clarity to broadcasters Cellular system licensees must In this Report and Order, the about their obligation to air such provide cellular mobile radiotelephone Commission takes action to strengthen programs, and facilitate our application service upon request to subscribers in its enforcement of the Children’s processing efforts. This proceeding was good standing, including roamers, as Television Act of 1990 (‘‘CTA’’). The initiated by a Notice of Inquiry and a provided in § 20.12 of this chapter. A CTA requires the Commission, in its Notice of Proposed Rule Making. cellular system licensee may refuse or review of each television broadcast terminate service, however, subject to DATES: Effective date: The rule changes license renewal application, to any applicable requirements for timely to §§ 73.673, 73.3526(a)(8)(iii), and ‘‘consider the extent to which the notification, to anyone who operates a 73.3500, will become effective on licensee * * * has served the cellular telephone in an airborne aircraft January 2, 1997, subject to OMB educational and informational needs of in violation of § 22.925 or otherwise approval under the Paperwork children through the licensee’s overall fails to cooperate with the licensee in Reduction Act. Notice in the Federal programming, including programming exercising operational control over Register will be given upon OMB’s specifically designed to serve such mobile stations pursuant to § 22.927. action to confirm this effective date. The needs.’’ Our initial regulations rule changes to §§ 73.671 and 73.672, 47 implementing the CTA have not been * * * * * CFR §§ 73.671, 73.672, will become fully effective in prompting broadcasters [FR Doc. 96–21797 Filed 8–26–96; 8:45 am] effective on September 1, 1997. Written to increase the amount of educational BILLING CODE 6712±01±P comments by the public on the new and informational broadcast television 43982 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations programming available to children. the fact that fewer children have access stations earn their revenues from the Some broadcasters are carrying very to cable television than to over-the-air sale of advertising time. Revenues little regularly scheduled standard television. In the United States, 38 received from the sale of advertising length programming specifically percent of children from ages 12 to 17 depend on the size and the socio- designed to educate and inform and 37 percent of children from ages 2 demographic characteristics of the children, and some broadcasters are to 11 live in homes that are not audience reached by the broadcaster’s claiming to have satisfied their statutory connected to cable television. Hence, programming. Broadcasters thus have a obligations with shows that, by any over-the-air broadcasting is an reduced economic incentive to promote reasonable benchmark, cannot be said to important source of video programs for children’s programming because be ‘‘specifically designed’’ to educate children and for all members of low children’s television audiences are and inform children within the meaning income families, including children. smaller than general audiences. of the CTA. In addition, parents and 4. Previous Implementation of the Broadcasters have even less economic others frequently lack timely access to CTA. For over 30 years, the Commission incentive to provide educational information about the availability of has recognized that, as part of their programs for children because the programming in their communities obligation as trustees of the public’s market for children’s educational specifically designed to educate and airwaves, broadcasters must provide television may be segmented by age in inform children, exacerbating market programming that serves the special ways that do not characterize children’s disincentives. needs of children. In 1990, Congress entertainment programming or adult 2. We refine our policies and rules to enacted the CTA both to impose programming. If stations are required to remedy these problems. First, we adopt limitations on the number of provide some educational programming a number of proposals designed to commercials shown during children’s for children, we believe that the same provide better information to the public programs and to make clear that the FCC incentives could cause station owners to about the shows broadcasters air to could not rely solely on market forces to prefer to show such programming when fulfill their obligation to air educational increase the educational and relatively few adults would likely be in and informational programming under informational programming available to the audience. Furthermore, small the CTA. Second, we adopt a definition children on commercial television. In audiences with little buying power, of programming ‘‘specifically designed’’ enacting the CTA Congress intended to such as children’s educational to educate and inform children (or increase the amount of educational and television audiences, are unlikely to be ‘‘core’’ programming) that provides informational broadcast television able to signal the intensity of their better guidance to broadcasters available to children. Congress sought to demand for such programming in the concerning programming that fulfills accomplish this objective by placing on broadcasting market. Therefore, their statutory obligation to air such each and every licensee an obligation to broadcasters will have little incentive to programming. In order to qualify as core provide educational and informational provide such programming because the programming, a show must have serving programming, including programming small audiences and small resulting the educational and informational needs specifically designed to educate and advertising revenues means that there of children as a significant purpose, be inform children, and by requiring the will be a substantial cost to them (the a regularly scheduled, weekly program FCC to enforce that obligation. so-called ‘‘opportunity cost’’) of forgoing 5. In 1991, the Commission adopted of at least 30 minutes, and be aired larger revenues from other types of regulations to implement the CTA. In between 7:00 a.m. and 10:00 p.m. The programs not shown. The combination program must also be identified as response to concerns expressed by a of all these market forces consequently educational and informational for number of parties that our rules provide can create economic disincentives for children when it is aired and must be insufficient guidance for broadcasters commercial broadcasters with respect to listed in the children’s programming seeking to comply with the CTA, we educational programming. Broadcasters report placed in the broadcaster’s public initiated this proceeding with a Notice who desire to provide substantial inspection file. Third, we adopt a of Inquiry (‘‘NOI’’), 58 FR 14367 (March children’s educational programming processing guideline that will provide 17, 1993), in 1993. Based on comments may face economic pressure not to do so certainty for broadcasters about how to responding to our NOI, as well as because airing a substantial amount of comply with the CTA and facilitate our comments received in connection with educational programming may place processing efforts. our 1994 en banc hearing on the subject of children’s educational television that broadcaster at a competitive II. Background programming, we proposed in the disadvantage compared to those who do 3. The Importance of Children’s Notice of Proposed Rule Making very little. Educational TV. Congress has (‘‘NPRM’’), 60 FR 20586 (April 26, 7. The amount of educational recognized that television can benefit 1995), to make a number of changes to programming on broadcast television. A society by helping to educate and our rules to achieve the goals of the number of parties have submitted inform our children. In enacting the CTA. In response to the NPRM, we studies in this proceeding examining CTA, Congress cited research received a substantial number of formal the amount of regularly scheduled, demonstrating that television programs and informal comments from interested standard length educational designed to teach children specific parties. programming aired on commercial skills are effective. There is substantial 6. The Economics of Children’s television stations since passage of the evidence in this proceeding that Educational Programming. In enacting CTA. These studies are inconclusive in children can benefit greatly from the CTA, Congress found that market establishing the exact amount of viewing educational television. That forces were not sufficient to ensure that educational programming that currently television has the power to teach is commercial stations would provide is being provided by broadcasters. They important because nearly all American children’s educational and information arrive at different conclusions on this children have access to television and programming. A number of factors question in part because they define the spend considerable time watching it. explain the marketplace constraints on programming to be measured and select The significance of over-the-air providing such programming. Over-the- their samples of broadcast stations in television for children is reinforced by air commercial broadcast television different ways. Despite their Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43983 deficiencies, however, the studies six years after the enactment of the CTA, we have focused on three basic (particularly the study submitted by Dr. at least some broadcasters are providing methods, described below, to improve Dale Kunkel) do allow us to conclude less than that amount. Given the the public’s access to information. We that some broadcasters are providing a Commission’s duty to treat similarly will continue to exempt noncommercial very limited amount of programming situated broadcasters in a similar television licensees from children’s specifically designed to educate and manner, by approving the performance programming reporting requirements, inform children and that broadcasters under the CTA of broadcasters and we will also exempt them from the vary widely in their understanding of providing very little educational other public information initiatives we the type of programming that the CTA programming we would signal that all adopt today. In light of Congressional requires. The conclusion that some broadcasters may provide a minimal intent to avoid unnecessary constraints stations are airing very little educational amount of such programming. The effect on broadcasters, and in view of the programming for children is also of that would be contrary to our effort commitment demonstrated by supported by our experience in to counter the economic disincentive to noncommercial stations in general to implementing the CTA. provide children’s programming serving children, we believe it is 8. Availability of educational described above. Moreover, in light of inappropriate to impose reporting programming on nonbroadcast media. the greater value to advertisers of obligations on such stations. We A number of broadcasters submitted entertainment programs for adults, those nonetheless encourage noncommercial comments arguing that the Commission broadcasters providing very little stations voluntarily to comport with should assess not just the educational educational programming for children these initiatives to the extent feasible as programming being provided over-the- may receive an unfair economic a means of providing parents and other air by broadcast stations, but rather the advantage, a result that only exacerbates members of the public with additional overall availability of educational the economic disincentive to provide information about the availability of programming in the video marketplace. children’s programming that Congress children’s educational and We believe, however, that the proper identified in enacting the CTA. Thus informational programming on all focus in this proceeding should be on unless we modify our approach to broadcast stations. the provision of children’s educational implementing the CTA, broadcasters 13. On-Air Identification. We will programming by broadcast stations, not will be able to provide extremely little require broadcasters to provide on-air by cable systems and other subscription educational programming for children. identification of core programs, in a services such as direct broadcast That would be contrary to Congress’ manner and form that is at the sole satellite systems that, in contrast to intent in enacting the CTA. discretion of the licensee, at the broadcast service, require the payment 10. The record also shows that our beginning of the program. We believe of a subscription fee. The CTA itself definition of programming fulfilling the the on-air identification of core expressly focuses on broadcast requirements of the CTA should be programs will greatly assist parents in licensees. Thus, the statute focuses on modified to provide a clear definition of planning their children’s viewing and the provision of children’s educational ‘‘specifically designed’’ programming, improve the children’s programming programming through broadcasting, a we will give better guidance and greater marketplace at minimal cost to stations. ubiquitous service, which may be the incentives for broadcasters’ compliance On-air identifiers are likely to reach a only source of video programming for with the CTA. Finally, the record in this larger audience than information some families that cannot afford, or do proceeding also supports the conclusion printed in programs guides. Moreover, not have access to, cable or other that parents and others would profit we note that there is no certainty that subscription services. While noting an from additional information concerning published guides will include such increase in the number of nonbroadcast the educational programming available information. Identifiers will improve outlets available for children to receive in their community. broadcaster accountability by video programming, the House Report at publicizing the programs licensees III. Public Information Initiatives 6 states that ‘‘the new marketplace for identify as contributing to their video programming does not obviate the 11. We conclude that the market obligation to air core programming. An public interest responsibility of inadequacies that led Congress to pass on-air identification requirement will individual broadcast licensees to serve the Children’s Television Act can be make broadcasters more accountable to the child audience.’’ addressed, in part, by enhancing the public and further the goal of 9. Conclusion. We conclude, on the parents’ knowledge of children’s minimizing the possibility that the basis of the studies before us that while educational programming. One way to Commission would be forced to decide some broadcasters are providing encourage licensees to provide such whether particular programs serve the educational and informational programming is to encourage and enable educational and informational needs of programming as Congress intended, the public, especially parents, to children. some are not. Congress was dissatisfied interact with broadcasters. Easy public 14. Some commenter speculated that with commercial broadcasters’ access to information permits the on-air identifiers could deter children performance in 1990 when, according to Commission to rely more on from watching educational programs. National Association of Broadcasters marketplace forces to achieve the goals No commenter, however, presented (‘‘NAB’’), commercial broadcasters were of the CTA and facilitates enforcement evidence that such an effect will occur. devoting an average of two hours per of the statute by allowing parents, We will revisit our decision to require week of airtime to educational educators, and others to actively on-air identification if, after some programming, and in the CTA Congress monitor a station’s performance. experience, parties present us with provided that each broadcaster has a 12. In considering the options to evidence that they in fact have a duty to serve the educational and improve the information available deterrent effect. In the meantime, informational needs of children through regarding educational programming, we broadcasters will have full discretion to its overall programming, including seek to maximize the access to such design their identifiers to minimize or programming specifically designed to information by the public while avoid any such effect. serve children’s educational and minimizing the cost to the licensee. In 15. Program Guides. We will require informational needs. Yet it appears that, response to the comments to the NPRM, each commercial television broadcast 43984 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations station licensee to provide information station responsible for collecting public is generally unaware of these identifying programming specifically comments on the station’s compliance reports and agree with commenters who designed to educate and inform with the CTA. We believe it is contend that publicizing the children’s children, and an indication of the age reasonable to require licensees to programming reports will heighten group for which the program is designate a liaison for children’s awareness of the CTA and invite intended, to publishers of program programming and to include the name members of the public to take an active guides. It is industry practice for and method of contacting that role in monitoring compliance. broadcasters to provide programming individual in the station’s children’s 22. Quarterly reports. We will require information to program guides, which programming reports, since someone at licensees to prepare children’s publish such information without cost each station must, as a practical matter, programming reports on a quarterly to the broadcasters. Further, it has be responsible for carrying out the basis. Commenters noted that a become a well-established practice to broadcaster’s responsibilities under the quarterly reporting requirement provide specialized information about CTA. This requirement also will provides more current information programs, such as which programs are facilitate public access to information about station performance and closed captioned for the hearing on stations’ educational programming encourages more consistent focus on impaired. As broadcasters routinely efforts, and assist stations in responding educational programming efforts and provide such information about their to comments and complaints from the that, because quarterly production of programming to program guides and public. Moreover, because licensees are children’s programming reports will designate core programs for their public currently required to maintain coincide with the quarterly issues/ records, we believe it would require a children’s programming reports and programs reports that broadcasters minimum of effort, but have a major letters received from the public in their currently prepare, this requirement will positive effect, for broadcasters to public inspection file, this requirement not impose a significant additional provide publishers of program guides should not impose a significant burden on licensees. For an and listings, information identifying additional burden on licensees. experimental period of three years, we core programs, and the age group for 19. Explanation of how programming will also require broadcasters to file which, in the opinion of the meets definition of core programming. such quarterly reports with the broadcaster, the program is intended. We will require licensees to provide a Commission on an annual basis, i.e., 16. We recognize broadcasters cannot brief explanation in their children’s four quarterly reports filed jointly once require guides to print this information. programming reports of how particular a year. We encourage stations to file The information, however, is more programs meet the definition of ‘‘core’’ quarterly, in electronic form, when the likely to be in the program listings if programming. Such descriptions assist reports are prepared. We will evaluate broadcasters routinely provide it. We parents and others who wish to monitor whether to continue this requirement as believe program guides are an effective station performance in complying with part of our review of broadcasters’ means of providing parents with the CTA. Having a broadcaster identify annual reports at the end of this three- advance notice of scheduling of those programs it relies upon to meet its year period. educational programs. This information CTA obligation on an ongoing basis, 23. Standardized reporting form. We will assist parents in finding suitable rather than the end of the term, will will provide licensees with a programs for their children and be increase broadcaster accountability. standardized form for the quarterly useful to parents and others who wish With regard to a qualifying regular children’s programming reports. A to monitor station performance in series, we will consider a general standardized form should lessen the complying with the CTA. We note that description to be sufficient so long as burden on broadcasters by clarifying the a number of broadcasters supported this the description is adequate to provide information to be included and proposal, and that the major networks the public with enough information providing a ready format. A now employ a voluntary parental about how the series is specifically standardized form will facilitate advisory plan pursuant to which they designed to meet the educational and consistency of reporting among all provide to program guide services informational needs of children. licensees, assist in efforts by the public information indicating whether 20. Physically separate reports. We and the Commission to monitor station programs contain material that may be will require licensees to separate the compliance with the CTA, and lessen unsuitable for children. We believe that children’s programming reports from the burden on the public and a universal symbol for educational other reports they maintain in their Commission staff. This form—a programming would also be useful in public inspection files. This will enable Children’s Educational Television readily identifying such programming to interested parties to review the Report—will be designed so licensees the public, and encourage broadcasters information without having to search can complete the report on a computer to adopt such a symbol. through unrelated materials. This is our and file it electronically with the 17. Public File Proposals. Our rules current practice with a licensee’s Commission for purposes of the currently require commercial licensees political file. Facilitating access to experimental three-year annual filing to compile reports containing children’s programming reports will requirement. We encourage licensees to information about the children’s facilitate public monitoring and increase file the form with us electronically, programming they air, including the broadcaster accountability under the although we will accept filings either on time, date, duration, and description of CTA; requiring broadcasters to keep computer diskette or a paper copy of the the programs. Licensees maintain these their children’s programming reports report form. reports in the station’s public inspection separate from other portions of their 24. This form will request information file. We identify several ways, discussed public inspection files will ensure such to identify the individual station and below, to enhance public access to and ease of access. the programs it airs to meet its use of the information in these reports 21. Publicizing children’s obligation under the CTA. The form will that can be made without materially programming reports. We will require also request information on educational increasing any burden on the licensee. that licensees publicize the children’s programs that the station plans to air in 18. Children’s liaison. We will require programming reports in an appropriate the next quarter and ask whether the stations to identify the person at the manner. We remain concerned that the licensee has complied with other Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43985 requirements described in this Report programs will be aired, concomitantly specifically designed to meet the and Order. We plan to issue the increasing the likelihood children will educational and informational needs of reporting form by Public Notice and benefit as Congress intended, from such children ages 16 and under and have make it available on the Internet. programs. educating and informing children as a 27. We will retain, with a slight significant purpose. IV. Definition of Programming modification, our existing definition of 30. The CTA speaks of programming ‘‘Specifically Designed’’ to Serve ‘‘educational and informational specifically designed to serve ‘‘the Children’s Educational and programming’’ to provide a description educational and informational needs of Informational Needs of the broad variety of programs that can children.’’ It does not draw a distinction 25. The CTA requires every television serve to comply with a licensee’s overall between educational and informational broadcaster to air programming requirement to air programming that programming that furthers children’s ‘‘specifically designed’’ to serve the meets children’s educational and cognitive and intellectual development educational and informational needs of informational needs. In order to track and educational and informational children. Our current definition of more closely the express language of the programming that furthers children’s educational and informational CTA, we will modify this definition social and emotional development. We programming—‘‘programming that somewhat so that the broad category of decline to draw that distinction furthers the positive development of ‘‘educational and informational ourselves and accordingly conclude that children 16 years of age and under in television programming’’ is defined as both fall within the scope of our any respect, including the child’s ‘‘any television programming that definition. The test of whether intellectual/cognitive or social/ furthers the educational and programming qualifies as core does not emotional needs’’— is very broad and informational needs of children 16 years depend in any way on its viewpoint, but does not further delineate criteria for of age and under in any respect, solely on whether it is ‘‘specifically programs that are ‘‘specifically including children’s intellectual/ designed’’ to serve children’s designed’’ to educate and inform cognitive or social/emotional needs.’’ educational and informational needs. In children. To remedy this situation, we 28. The definition of core this regard, we note that entertainment have decided to adopt a more programming that we adopt is designed programming with a minor or wrap- particularized definition of to provide licensees with clear guidance around educational and informational programming specifically designed to regarding how we will evaluate renewal message cannot correctly be said to have serve children’s educational and applications. The elements of our serving the educational and informational needs, or ‘‘core’’ proposed definition are also designed to informational needs of children as a programming. We intend that this be as objective as possible so that they significant purpose.1 We anticipate that definition will identify programming are more easily understood by licensees any attempt to incorrectly characterize that clearly meets the statutory and the Commission staff and to avoid programming as core will elicit obligation to air programming injecting the Commission unnecessarily significant opposition from the ‘‘specifically designed’’ to meet the into sensitive decisions regarding community, about which the FCC will educational and informational needs of program content. As we stated in the be apprised. children. We emphasize that licensees NPRM, programming specifically 31. In determining whether should not regard our definition of core designed to serve children’s educational programming has a significant purpose programming as imposing a limit on and informational needs is the only of educating and informing children, we their ability to air other programming category of programming the CTA will ordinarily rely on the good faith that teaches and informs children even expressly requires each licensee to judgment of broadcasters, who will be if that programming does not square provide. We believe that the definition subject to increased community scrutiny with each element of our definition of we adopt today will continue to provide as a result of the public information core programming. broadcasters ample discretion in initiatives described above. We 26. The evidence in the record designing and producing such consequently will rely primarily on supports our general proposal to adopt programming. We emphasize that the such public participation to ensure a definition of core educational and test of whether programming qualifies compliance with the significant purpose informational programming. Several of as core does not depend in any way on prong of the definition of core the studies submitted in this proceeding its topic or viewpoint. We now turn to programming, with Commission review suggest that some licensees are the specific elements of the new taking place only as a last resort. uncertain about what to classify as definition of core programming. programming specifically designed to 32. One suggested rule revision meet children’s educational and Significant Purpose discussed in the NPRM was to require informational needs. This conclusion is 29. With respect to the first element that educational and informational supported by our experience in of our definition, we believe that, to programming specifically designed for reviewing renewal applications and in qualify as core programming, a show children be produced with the evaluating licensees’ efforts to meet must have served the educational and assistance of independent educational their CTA obligation to air programming informational needs of children ages 16 advisors. We continue to believe that it ‘‘specifically designed’’ to educate and and under as a significant purpose. The would not be appropriate to require the inform children. We agree with those ‘‘significant purpose’’ standard use of educational experts in developing commenters who believe that a appropriately acknowledges the point core programming. Although some particularized definition will assist advanced by broadcasters and others broadcasters may find that experts can broadcasters and will avoid potentially that to be successful, and thus to serve provide worthwhile assistance in misplaced reliance on general audience children’s needs as mandated by the developing educational programming, and entertainment programs as CTA, educational and informational as we stated in the NPRM we prefer to specifically designed to educate and programming must also be entertaining 1 The term ‘‘wrap-around’’ refers to messages inform. By more precisely defining and attractive to children. Accordingly, inserted at the beginning or end of an entertainment ‘‘specifically designed’’ programming, as proposed in the NPRM, we will program in an effort to make the program qualify we increase the likelihood that such require that core programming be as specifically designed to educate or inform. 43986 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations minimize the burdens and potential the age group a core program is other words, at 6:00 a.m. on weekdays, intrusions on programming decisions of intended to encourage them to consider 1.3 million children are watching broadcasters and provide them the whether the content of the program is television. By 7:00 a.m., the number of flexibility to select the means by which suited to the interests, knowledge, children watching television is 5.1 their educational programming is vocabulary, and other abilities of that million. Data also show that roughly as created. group. In addition, this requirement will many (i.e., very few) young children are provide information to parents watching television at 6:00 a.m. as are Educational and Informational regarding the appropriate age for core watching at midnight. With respect to Objective and Target Child Audience programs, thereby facilitating increased weekend viewing, the same data show Specified in Writing program audience and ratings. We that less than 4 percent of children 2 to 33. With respect to the second decline, however, to identify particular 17 were watching television from 6:00 element of our core programming age ranges of children to which core a.m. to 6:30 a.m. on Saturday. By 7:00 definition, we are persuaded that we programs may be directed. We prefer to a.m. on Saturday, however, the should adopt our proposal to require leave broadcasters the discretion to percentage of children 2 to 11 in the that the educational and informational develop programs suited to children audience had risen to between about 5 objective of core programming be with similar educational and percent and 7 percent, and continued to specified in writing. Requiring a informational needs and to increase sharply to about 16 percent or statement of educational and counterprogram to distinct portions of more by 8:00 a.m. Figures for Sunday informational purpose will ensure that the child audience as they believe showed a comparable low rate of broadcasters devote attention to the appropriate. viewership for all children prior to 7:00 educational and informational goals of 36. In addition, we decline to require a.m. followed by a sharp increase core programming and how those goals broadcasters to serve particular between 7:00 a.m. and 8:00 a.m. for may be achieved. A written statement of segments of the child audience. We children 2 to 11. educational and information purpose adhere to our view that we should not 38. Despite the relatively small should also assist licensees to at this time require broadcasters to serve percentage of children in the audience distinguish programs specifically particular segments of the child prior to 7:00 a.m. as compared to after designed to serve children’s educational audience, particularly in light of the that hour, a number of studies confirm and informational needs from programs significant new steps we have adopted that broadcasters air a significant whose primary purpose is to entertain to promote the overall availability of percentage of their educational children. Moreover, this requirement children’s educational and programming before 7:00 a.m. For can, as noted, allow parents and other informational programming. example, studies indicate that interested parties to participate more approximately 20 percent of educational Times Core Programming May Be Aired actively in monitoring licensee programs are aired before 7:00 a.m. In compliance with the CTA, and thus is 37. As for the third element of our light of the evidence demonstrating that consistent with our public information definition of core programming, we only 5 to 10 percent of children are initiatives. tentatively proposed in the NPRM to watching television before 7:00 a.m., 34. The description of a program’s credit as core programming children’s broadcasters appear to be airing a educational and informational objective, educational programs broadcast disproportionately large amount of which should be included in the between the hours of 6:00 a.m. and educational programming during early licensee’s children’s programming 11:00 p.m. After considering the morning hours in relation to the report, does not have to be lengthy. It evidence, we will limit the hours within relatively few children watching should state the educational and which programming may qualify as core television at that time. As noted in the informational objective of the program to a narrower time frame than that NPRM, broadcasters have an incentive and the expected educational and proposed in the NPRM. To qualify as to air educational programming during informational effects. To satisfy this core, a program must air between the very early morning hours as this is a less requirement, broadcasters need not hours of 7:00 a.m. and 10:00 p.m. In costly time for them to comply with describe the viewpoint of the program specifying this time period, our their educational programming or opinions expressed on it. The intention is to encourage broadcasters to obligation. In view of these description must be adequate to air educational programming at times circumstances, we believe it is demonstrate that a significant purpose the maximum number of child viewers appropriate to specify that core of the program is to educate and inform will be watching. With respect to the programming air no earlier than 7:00 children. morning time limit, recent data show a.m. rather than 6:00 a.m. as proposed 35. We will also require licensees to that during four sample weeks in in the NPRM. An early time limit of 7:00 indicate a specific target age group for November 1995, less than 5 percent of a.m. will ensure that core programming core programs. In enacting the CTA, children 2 to 17 nationwide were is shown when more children are likely Congress found that ‘‘[c]hildren’s watching television at 6:00 a.m. Monday to be watching television, especially educational programming is most through Friday, and less than 10 percent young children, thus maximizing the effective when it is designed to focus on of this age group was in the audience at benefit of such programming. In particular age groups and address 6:30 a.m. By 7:00 a.m., however, addition, a 7:00 a.m. cut-off will help specific skills.’’ Research has between 12.5 percent and 14 percent of counter the economic incentive of demonstrated that the ability of young children 2 to 11 were watching broadcasters to air educational and children to comprehend television television, and by 8:00 a.m. more than informational programming to time content varies as a function of age, and 20 percent of children 2 to 5, close to periods when few children are in the that educational programming should be 12 percent of children 6 to 8, and just audience. targeted to an age range of no more than under 9 percent of children 9 to 11, 39. With regard to the evening limit, three to four years to ensure that its were in the audience. Thus, at 7:00 a.m. we believe it is appropriate to require content is appropriate to the Monday through Friday, nearly four that core programming air no later than developmental level of the intended times as many young children are 10:00 p.m. rather than 11:00 p.m. as audience. Requiring licensees to specify watching television than at 6:00 a.m. In proposed in the NPRM. Recent data Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43987 show that the number of children 2 to Regularly Scheduled core. As stated above, we believe that 17 watching television drops off 41. Turning to the fourth element of programs that are aired more frequently considerably from 10:00 p.m. to 11:00 our definition of core programming, we (i.e., at least once a week) are more p.m. For all seven nights combined continue to believe that qualifying core likely to build upon and reinforce (Monday–Sunday), the average number programming should be regularly educational and informational of children 2 to 17 drops from 13 scheduled, particularly in view of our messages, more likely to develop million at 10:00 p.m. to 8 million at emphasis on improving the flow of audience loyalty, and more likely to be 11:00 p.m. According to these figures, information to parents through anticipated by children and parents and the number of children 2 to 8 watching published program guides and other thus attract a regular audience. television Monday through Friday peaks means to enable them to select Nonetheless, we recognize that at approximately 30 percent at 8:00 educational and informational programs educational and informational specials p.m., and then declines sharply to for their children. Programming that is with a significant purpose of serving the educational and informational needs of approximately 16 percent by 10:00 p.m. aired on a regular basis is more easily children ages 16 and under can help and less than 10 percent by 11:00 p.m. anticipated and located by viewers, and accomplish the objectives of the CTA For older children 9 to 17 Monday can build loyalty that will improve its and thus can count toward the second through Friday, viewership peaks chance for commercial success. A large track of our three-hour processing somewhat later, between 8:30 and 9:00 proportion of television programming, guideline as described below. The value p.m. at approximately 30 percent to 35 including children’s programming, of such programming is enhanced if percent, and then falls off to consists of shows that air on a routine parents are informed in advance of the approximately 20 percent to 25 percent basis. We agree with those commenters program and the time it is scheduled to at 10:00 p.m. and approximately 12 who argue that programs that air percent to 19 percent by 11:00 p.m. The air. We encourage broadcasters to regularly can reinforce lessons from promote educational and informational data for these age groups for Saturday episode to episode. We also believe that and Sunday also show a sharp decline specials and to schedule them far regularly scheduled programs can enough in advance to permit in viewership from 10:00 p.m. to 11:00 develop a theme which enhances the p.m. We agree with those commenters information about the program to be impact of the educational and included in program guides. who argued that core programming informational message. Accordingly, to should be aired before 10:00 p.m. when be considered as core, we will require Substantial Length a larger proportion of children are that educational and informational 44. As to the fifth element of our awake and watching television. We do programs air on a regular basis. definition of core programming, we not expect this evening limit to impose Furthermore, to count as regularly believe that core programming should a burden on broadcasters, or impede scheduled programming, such programs be at least 30 minutes in length. In their program scheduling strategies, as must be scheduled to air at least once enacting the CTA, Congress identified a they typically schedule adult a week. Regularly scheduled weekly number of examples of worthwhile entertainment programming for the programming is the dominant form of educational and informational 10:00 p.m. to 11:00 p.m. time period. television programming. It is more programs, all of which are at least one We therefore will require that, in order likely to be anticipated by parents and half-hour in length. Although we do not to qualify as core, educational and children, to develop audience loyalty, mean to suggest that these examples in informational children’s programming and to build successfully upon and the legislative history are equivalent to be aired between the hours of 7:00 a.m. reinforce educational and informational statutory requirements, we believe they and 10:00 p.m. We believe that this time messages, thereby better serving the reflect the fact that the dominant period effectuates the language of the educational and informational needs of broadcast television format is 30 CTA that licensees air programming children. It is also our view that minutes or longer in length. We believe ‘‘specifically designed’’ to serve programs that air at less frequent it reasonable that our rules, which are children’s educational and intervals are less likely to attract a intended to promote the accessibility of informational needs, as children are best regular audience and to be anticipated children’s educational and served by programming that airs during by parents. informational programming, reflect this times more children are watching 42. Television series typically air in current industry practice. Programs in television. the same time slot for 13 consecutive these standard formats are more likely 40. We do not believe that the time weeks, although some episodes may be than shorter programming to be period for core programming must be preempted for programs such as regularly scheduled and to be listed in consistent with the indecency safe breaking news or live sports events. program guides, and thus are easier for harbor (10:00 p.m. to 6:00 a.m.). The Indeed, evidence suggests that a parents to identify for their child’s indecency safe harbor is intended to significant number of educational and viewing. In addition, programs that are provide for the airing of indecent informational programs, particularly 30 minutes or longer allow more time material when the risk of children in the those that air on Saturday, are for educational and informational audience is minimized, while our preempted by sports and other material to be presented, and a number purpose in this context is to promote the programming. Although a program must of commenters stated that shows of this availability of children’s educational be regularly scheduled on a weekly length can be particularly beneficial to programs when substantial numbers of basis to qualify as core, we will leave to children. There was no evidence children are watching. Nevertheless, the the staff to determine, with guidance presented in response to the NPRM to data recited above indicate that because from the full Commission as necessary, support claims by some parties that there is an appreciable drop in the what constitutes regularly scheduled children have short attention spans and number of children in the audience after programming and what level of thus will not benefit from substantial 10:00 p.m. the time frame for purposes preemption is allowable. length programming. of the core programming definition 43. Specials, including those 45. We will not credit educational and should be 10:00 p.m. rather than 11:00 scheduled to appear on a regular informational PSAs, interstitials, or p.m. nonweekly basis, will not be credited as other short segments as core 43988 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations programming. The CTA does not to serve children’s educational and renewal applications referred to the full preclude broadcasters from counting informational needs.2 Commission. Licensees referred to the such programming as educational and Commission should be on notice by this Assessment Guidelines informational; indeed, we recognize that order that they will not necessarily be some short segments have significant 48. In view of our adoption of a found to have complied with the CTA. public interest benefits. Nevertheless, definition of core educational and Given the modest nature of the while we have previously found that informational programming that guideline described in Categories A and short segment programming may qualify provides licensees with clearer guidance B, we expect few broadcasters will fail as specifically designed educational and regarding the types of programming to meet this benchmark. However, even informational programming, for the required to meet their obligation under if a licensee did not meet the guideline reasons stated above we believe that the CTA, we believe that our permissive for staff approval, it will have an programs that are 30 minutes or more in assessment guidelines are no longer opportunity to make a showing before length are a more appropriate focus of necessary and should be eliminated. the Commission that it has satisfied its CTA obligations in other ways. our definition of ‘‘core’’ programming. V. Processing Guideline We also note that short segments and Broadcasters will have a full PSAs are less likely to be regularly 49. Based on our review of the record, opportunity to make this demonstration as well as our experience in enforcing scheduled or listed in program guides, by, for example, relying in part on the CTA over the past five years, we and consequently are not easily located sponsorship of core educational and have decided to adopt a three-hour and anticipated by parents and children. informational programs on other processing guideline. Under this stations in the market that increases the 46. We emphasize that programming guideline, the Mass Media Bureau will amount of core educational and with a significant purpose of educating be authorized to approve the CTA informational programming on the and informing children that is less than portions of a broadcaster’s renewal station airing the sponsored program 30 minutes in length, although not application where the broadcaster has and/or on special nonbroadcast efforts credited as core programming, can aired three hours per week (averaged which enhance the value of children’s contribute to serving children’s needs over a six month period) of educational educational and informational pursuant to the CTA. Such and informational programming that has television programming. It is also programming can count toward meeting as a significant purpose serving the possible that a licensee might seek to the three-hour processing guideline educational and informational needs of demonstrate that it suffered such serious when broadcasters air somewhat less children ages 16 and under. A economic hardship—such as than 3 hours per week of core broadcaster can demonstrate that it has bankruptcy—that might excuse programming, as described below. We aired three hours per week of such noncompliance with the CTA. encourage all broadcasters to continue programming in either of two ways: (A) 51. If we find that a broadcaster has to provide a diverse mix of educational By checking a box on its renewal not complied with the CTA, we will and informational programming, application and providing supporting apply the same remedies that we use in including short segments and PSAs, information indicating that it has aired enforcing our other rules. These toward their overall obligation to three hours per week of regularly remedies will vary depending on the provide programming for children. scheduled, weekly shows that are 30 severity of the deficiency based on minutes or longer and that otherwise objective criteria. For less serious Identified as Educational and meet the definition of ‘‘core deficiencies, we will consider letters of Informational programming’’ (repeats and reruns of admonition or reporting requirements. We may also consider using a ‘‘promise 47. With respect to the sixth element core programming may be counted versus performance’’ approach. This of our definition, we proposed that toward fulfillment of the three-hour would be a prospective remedy under stations be required to identify core guideline); or (B) By showing that it has which a licensee would detail its plan programs as educational and aired a package of different types of for coming into full compliance with informational at the beginning of the educational and informational CTA programming obligations; if this program, and to make available the programming that, while containing plan meets with Commission approval, necessary information for listing these somewhat less than three hours per week of core programming, the station’s license would be renewed programs as educational and on the condition that the licensee informational in program guides. As demonstrates a level of commitment to educating and informing children that is adheres to the plan absent special discussed above, we will adopt both of circumstances. For more serious these proposals in order to improve the at least equivalent to airing three hours per week of core programming. (By violations, we will consider other information available to parents sanctions, including forfeitures and regarding programming specifically ‘‘package’’ we do not mean to imply that the programming is in any way related short-term renewals. In extreme cases, designed for children’s educational and we will consider designating the license informational needs, and to assist them by topics or purchased from a single source.) A broadcaster seeking to secure for hearing to determine whether the in selecting these programs for their licensee’s violations of the CTA and our children. We also believe this measure staff approval under Category B must show that any reasonable observer implementing rules warrant nonrenewal will make broadcasters more under the standards set forth in Section accountable in classifying programming would recognize its commitment to educating and informing children to be 309(k) of the Communications Act. as specifically designed to educate and 52. We believe that a three hour per at least equivalent to the commitment inform. Thus, as with the other aspects week processing guideline is a reflected in Category A. of our definition of core programming, reasonable benchmark for all broadcast we believe that the identification 50. Broadcasters that do not fall within Category A or B will have their television stations to meet six years after requirements provide an appropriate enactment of the CTA given long-term regulatory incentive for licensees to 2 As we noted above, we will exempt performance improvement Congress comply with their statutory obligation to noncommercial stations from these identification intended when it passed the Act. The air programming specifically designed requirements. inferences that we can draw from the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43989 entire record in this proceeding, or mandating a quantification burdensome to the public, prevent including the studies that were standard,’’ this language does not legitimate complaints from being heard, submitted, suggest that this benchmark prohibit us from seeking to provide and deny the FCC an important source is a reasonable, achievable guideline. In greater clarity and guidance through a of information. We will nonetheless the context of the CTA, a processing processing guideline. Rather, this encourage parties to seek to resolve CTA guideline is clear, fair and efficient. Our language simply makes clear that the programming concerns with the station experience in reviewing the children’s CTA does not require quantitative before filing a complaint with the programming portions of renewal standards or guidelines. Commission, and will consider whether applications teaches us that a processing 55. We will continue our policy of a petitioner has engaged in such guideline is desirable as a matter of exempting noncommercial television conciliation efforts as a factor in administrative efficiency in enforcing stations from specific record- assessing a petition to deny. the CTA and provides desirable clarity compilation, filing and submission 59. We sought comment in the NPRM about the extent of a broadcaster’s requirements. As is our current practice, on whether we should permit licensees programming responsibilities under the we will require noncommercial to certify whether they have aired the statute. The guideline will also help broadcast television stations to maintain prescribed amount of core ameliorate the inequities that may arise documentation sufficient to show programming. We decline to adopt this from the economic disincentives that compliance at renewal time with the proposal. The parties that addressed this lead some stations to air little core Act’s programming obligations in proposal opposed it on the ground that programming. Although some response to a challenge or to specific it would inhibit public monitoring of broadcasters are airing a significant complaints. Any such showing that a broadcaster compliance and was amount of educational and noncommercial station may need to contrary to Congress’ intent that the informational programming, the make will be governed by the definition Commission review a licensee’s evidence suggests that others are not. A of core programming and the processing children’s programming records. Given processing guideline will help minimize guideline we adopt. these concerns, and our decision to the inequities and reduce the 56. We will monitor the broadcast require broadcasters to file children’s disincentives created by below-average industry’s children’s educational programming reports with the performers by subjecting all programming performance for three Commission for an experimental three- broadcasters to the same scrutiny for years based upon the children’s year period, we do not believe a CTA compliance by the Commission at programming reports that licensees will certification approach is workable. file with us annually on an renewal time. Moreover, the greater VII. First Amendment Issues certainty provided by the processing experimental basis. We will conduct a guideline we adopt should create a more review of these reports at the end of this 60. The First Amendment arguments stable and predictable demand for such three-year period and take appropriate raised by opponents of our proposed programming, and thus further the action as necessary to ensure that CTA regulations essentially fall into two CTA’s goal of increasing the availability stations are complying with the rules categories—arguments that attack the of programs that teach and inform the and guidelines we adopt. To CTA obligation and arguments that nation’s children. supplement this review, Commission attack the quantification of the CTA 53. The processing guideline we staff will also conduct selected obligation. To the extent that some adopt is consistent with the CTA in that individual station audits during the next commenters argue that the CTA is it provides a measure of flexibility for three years to assess station performance unconstitutional, Congress itself licensees in meeting the requirements of under our new children’s educational specifically concluded that ‘‘it is well the CTA. We further believe the and informational programming rules within the First Amendment strictures processing guideline we adopt is once they go into effect. to require the FCC to consider, during consistent with the text of the CTA, 57. We invited comment in the NPRM the license renewal process, whether a which requires us to ‘‘consider the on whether we should sunset any television licensee has provided extent’’ to which licensees serve the processing guideline or program information specifically designed to educational and informational needs of standard that we adopt on December 1, serve the educational and informational children through the licensee’s overall 2004, unless affirmatively extended by needs of children in the context of its programming, including programming the Commission. Based on the record, overall programming.’’ Even more specifically designed to serve such we do not believe that an automatic specifically, as the FCC, the courts, and needs. expiration of the rules, absent further Congress have concluded, a 54. We thus conclude that the public Commission action, is appropriate. One broadcaster’s public interest obligation interest and the interests Congress of our principal objectives in properly includes an obligation to serve sought to promote through the CTA will implementing the safe harbor processing the educational and informational needs be better served by this processing guideline is to provide broadcasters and of children. The question in this guideline approach. We recognize that the public with fair notice and certainty proceeding is not whether the this is contrary to our earlier regarding the level of performance at Commission should give effect to the interpretation of the CTA as precluding which a licensee can be assured it is CTA, but how it should do so. quantification of the CTA obligation. In complying with the CTA. Automatic 61. The course we adopt today— reaching a contrary conclusion, we elimination of the processing guideline defining what qualifies as programming begin with the fact that nothing in the is inconsistent with this important ‘‘specifically designed’’ to serve the statutory language of the CTA forbids objective. educational needs of children and the use of a processing guideline. giving broadcasters clear but Furthermore, although there is specific VI. Renewal Procedures nonmandatory guidance on how to language in the legislative history, cited 58. We have decided not to require guarantee compliance—is a in our 1991 Report and Order and by members of the public to communicate constitutional means of giving effect to parties in this proceeding, stating the with a licensee prior to filing a petition the CTA’s programming requirement. ‘‘It ‘‘Committee does not intend that the to deny, as proposed in the NPRM. Such does not violate the First Amendment to FCC interpret this section as requiring a requirement could be unduly treat licensees given the privilege of 43990 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations using scarce radio frequencies as information they receive.’’ If Congress appropriate manner in which to meet proxies for the entire community, and the Commission may ban broadcast children’s educational and obligated to give suitable time and of certain material during specified informational needs.’’ Upon further attention to matters of great public hours, even under standards of strict consideration, we reject that position. concern.’’ Red Lion Broadcasting Co. v. scrutiny, it should follow that the Processing guidelines give broadcasters FCC, 395 U.S. 367, 394 (1969). Commission’s adoption of less an option for guaranteeing routine staff Congress’s authority to order ‘‘suitable restrictive measures to encourage the processing of the CTA portion of their time and attention to matters of great airing of material beneficial to children renewal applications, but broadcasters public concern’’ includes the authority is consistent with the First Amendment. remain free to find other ways to fulfill to require broadcasters to air That is particularly true because the their obligation. In any event, our initial programming specifically designed to Children’s Television Act is designed to reluctance to adopt any form of further the educational needs of promote programming that educates processing guideline derived in large children. The airwaves belong to the and informs children. It is entirely part from our wish to initiate public, not to any individual consistent with the First Amendment to implementation of the CTA with as little broadcaster. As the Supreme Court ask trustees of the public airwaves to regulation as possible. As described observed in CBS, Inc. v. FCC, ‘‘a pursue reasonable, viewpoint-neutral above, our subsequent experience has licensed broadcaster is ‘granted the free measures designed to increase the persuaded us that we should alter our and exclusive use of a limited and likelihood that children will grow into course in the interests of fairness and valuable part of the public domain; adults capable of fully participating in efficiency by clarifying ways in which when he accepts that franchise it is our deliberative democracy. broadcasters can ensure compliance. burdened by enforceable public 64. The measures we adopt today to 67. Together, the new measures that obligations.’’’ 453 U.S. 367, 395 (1981). advance the Nation’s interest in the we adopt today will help parents, The fact that Congress elected to retain intellectual development of our children children, and the general public public ownership of the broadcast are sustainable under the analysis in understand the programming benefits FCC v. Pacifica Foundation, 438 U.S. spectrum and to lease it for free to that the CTA is intended to guarantee. 726 (1978) as they are significantly less private licensees for limited periods That understanding is necessary to burdensome than the measure upheld carries significant First Amendment ensure that the public, in exercising there. Pacifica upheld a complete ban consequences. informal influence over the 62. We have chosen to adopt a on a particular type of programming programming choices of broadcasters, processing guideline that requires (indecent programming) during hours can play an important role in broadcasters to show us how they have when children are likely to be in the effectuating Congress’s intent to served the educational and audience, a period which the increase the amount of educational informational needs of children, and Commission was later upheld in children’s programming on television. which provides guidance to them about defining as 16 hours per day (6:00 a.m.– ways in which they can meet that 10:00 p.m.) in Action for Children’s Similarly, both the clearer definition obligation. We are not, however, telling Television v. FCC. The measures we and the processing guidelines give licensees what topics to discuss. The adopt today do not ban programming of broadcasters reasonable notice of Supreme Court has reaffirmed that any type, they simply notify nonmandatory ways to guarantee ‘‘broadcast programming, unlike cable broadcasters that compliance with the compliance with their statutory programming, is subject to certain CTA can be achieved with, on average, programming obligations. Such clarity is limited content restraints imposed by less than half an hour a day of desirable and helps to narrowly tailor statute and FCC regulation.’’ If the programming expressing any viewpoint our regulations. equal-time and personal attack rules and on any topic that broadcasters desire. VIII. Effective Dates and Transition the rules channeling indecent 65. For those reasons, our Period programming away from times when implementing rules are constitutional children are most likely to be in the under the traditional First Amendment 68. Our rules regarding on-air viewing audience survive constitutional standard. But even if evaluated under a identification, program guides, public scrutiny, then so, a fortiori, would the heightened standard, our rules would file, and reporting requirements will Commission’s considerably less pass muster because the interest become effective on January 2, 1997, intrusive proposal for giving meaningful advanced is compelling and our subject to OMB approval under the effect to the CTA by defining ‘‘core’’ regulations are narrowly tailored. As Paperwork Reduction Act, and we will educational programming and detailed above, our regulations are no begin to evaluate compliance with these establishing a procedure that more burdensome than necessary to requirements in renewal applications broadcasters can use to assure routine ensure that children will be able to filed after that date. With respect to our staff processing of the CTA portion of watch educational and informational newly adopted definition of their renewal applications. programming. As we explain above, any programming specifically designed to 63. Our new regulations, like the CTA programming specifically designed to serve the educational and informational itself, impose reasonable, viewpoint- meet the educational and informational needs of children, as well as our safe neutral conditions on a broadcaster’s needs of children can ‘‘count’’ for harbor processing guideline relating to free use of the public airwaves. The purposes of meeting the processing such programming, we believe that a CTA and our regulations directly guideline. In addition, a broadcaster can longer transition period is appropriate. advance the government’s substantial, rely on other more general programming Accordingly, we adopt an effective date and indeed compelling, interest in the and related non-programming efforts to for these rules of September 1, 1997, education of America’s children. As satisfy its CTA obligation—albeit after and will begin to evaluate compliance Congress recognized, ‘‘[i]t is difficult to full Commission review. with these provisions in renewal think of an interest more substantial 66. We declined to adopt quantitative applications filed after that date. As than the promotion of the welfare of processing guidelines in 1991 on the with all of the provisions adopted today, children who watch so much television ground that they would ‘‘infringe on these provisions will be applied on a and rely upon it for so much of the broadcaster discretion regarding the purely prospective basis. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43991

69. Thus, renewal applications filed commercial TV stations making must- public file provides public access to earlier than September 1, 1997 will be carry/retransmission consent elections; documentation of station’s elections assessed for compliance with the 1,200 commercial TV stations which are used by cable operators in program-related provisions of the CTA publicizing existence and location of negotiations with television stations and based exclusively on the rules and children’s public inspection file. by the public to ascertain why some criteria set forth in our 1991 CTA Estimated time per response: 104 stations are/are not carried by the cable rulemaking proceeding. Beginning hours per year for radio recordkeeping; systems. The information contained in September 1, 1997, we will begin to 130 hours per year for TV the separate children’s television file evaluate renewal applications to recordkeeping; 1 hour per election will be used by the general public, determine the extent to which licensees statement to 150 cable systems per TV interested parties, and FCC staff to are providing educational programming station; 5 minutes per TV station for facilitate public monitoring of that complies with the new definition of revising station identification broadcasters’ educational programming core programming using the new publicizing the existence and location of and to ensure compliance with the CTA. processing guideline. In this renewal children’s public inspection file. The requirement that children’s cycle (i.e. for applications filed through Total annual burden: 1,282,100 television material be kept in a separate April 1999) such renewals will cover hours. file will provide easier access to such licensee performance that both pre-dates Needs and Uses: Section 73.3526 material. requires that each licensee/permittee of and post-dates these new rules. Licensee OMB Approval Number: None. performance during the term that a commercial broadcast station maintain a file for public inspection. The contents Title: Section 73.673 Public predates the relevant effective dates will information initiatives regarding be evaluated under existing standards of the file vary according to type of service and status. The contents educational and informational and performance that post-dates the programming for children. rules will be judged under the new include, but are not limited to, copies of Form No.: None. provisions. certain applications tendered for filing, a statement concerning petitions to deny Type of Review: New Collection. Administrative Matters filed against such applications, copies of Respondents: Businesses or other for- ownership reports and annual Paperwork Reduction Act Statement profit. employment reports, statements Number of Respondents: 1,200 70. This Report and Order contains certifying compliance with filing commercial television broadcast new or modified information collections announcements in connection with licensees. subject to the Paperwork Reduction Act renewal applications, letters received Estimated Time Per Response: 1 of 1995 (PRA), Public Law No. 104–13. from members of the public, etc. On minute per program to ensure that on- It will be submitted to the Office of August 8, 1996, the Commission the-air identification is provided; 5 Management and Budget (OMB) for adopted this Report and Order in MM minutes per program to convey review under the PRA. The Docket No. 93–49 which, among other children’s television information to Commission, as part of its continuing things, modifies the requirements publishers of program guides. effort to reduce paperwork burdens, currently in Section 73.3526(a)(8)(iii) by invites OMB, the general public, and removing the requirement to keep Total annual burden: 37,440 hours. other Federal agencies to comment on records of educational and Needs and Uses: This new Section the information collections contained in informational programming specifically 73.673 will require commercial TV this Report and Order as required by the designed to serve children’s needs. This broadcasters to identify programs PRA. Public and agency comments are requirement was replaced with a specifically designed to educate and due October 28, 1996. Comments should requirement that commercial television inform children at the beginning of address: (a) whether the new or stations place in their public inspection those programs, in a form that is at the modified collection of information is file, on a quarterly basis, a Children’s discretion of the licensee, and to necessary for the proper performance of Television Programming Report, provide information identifying such the functions of the Commission, maintained in a physically separate file programs and the age groups for which including whether the information shall from the other material kept in the they are intended to publishers of have practical utility; (b) the accuracy of public inspection file. Licensees must program guides. These requirements the Commission’s burden estimates; (c) also publicize the existence and location will provide better information to the ways to enhance the quality, utility, and of these Reports and file the Report public about the shows broadcasters air clarity of the information collected; and annually with the Commission for three to fulfill their obligation to air (d) ways to minimize the burden of the years. The data are used by the public educational and informational collection of information on the and FCC to evaluate information about programming under the CTA. This respondents, including the use of broadcast licensees’ performance, to information will assist parents who automated collection techniques or ensure that broadcast stations are wish to guide their children’s television other forms of information technology. addressing issues concerning the viewing. In addition, if large numbers of OMB Approval Number: 3060–0214. community they are licensed to serve, parents use that information to choose Title: Section 73.3526 Local public and to ensure that radio stations educational programming for their inspection file of commercial stations. entering into time brokerage agreements children, it will increase the likelihood Form No.: None. comply with Commission policies that the market will respond with more Type of Review: Revision of existing pertaining to licensee control and to the educational programming. Better collection. Communications Act and the antitrust information should help parents and Respondents: Businesses or other for- laws. Broadcasters are required to send others to have an effective dialogue with profit. each cable operator in the station’s broadcasters in their community about Number of Respondents: 10,250 market a copy of the election statement children’s programming and, where commercial radio licensees applicable to that particular cable appropriate, to urge programming recordkeepers ; 1,200 commercial TV operator. Placing these retransmission improvements without resorting to licensees recordkeepers; 1,200 consent/must-carry elections in the government intervention. 43992 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

Final Regulatory Flexibility Analysis B. Issues Raised by the Public overstates the number of television Comments in Response to the Initial broadcast stations that are small 71. As required by the Regulatory Regulatory Flexibility Analysis businesses and is not suitable for Flexibility Act, as amended (‘‘RFA’’), an 73. There were no comments purposes of determining the impact of Initial Regulatory Flexibility Analysis submitted specifically in response to the the new rules on small television (‘‘IRFA’’), 5 U.S.C. § 603, was IRFA. We have, however, taken into stations, we did not propose an 5 incorporated in the Notice of Proposed account all issues raised by the public alternative definition in the IRFA. Rule Making in MM Docket No. 93–48 in response to the proposals raised in Accordingly, for purposes of this Report (‘‘NPRM’’). The Commission sought this proceeding. In certain instances, we and Order, we utilize the SBA’s written public comments on the have modified the rules adopted in definition in determining the number of proposals in the NPRM, including the response to those comments. small businesses to which the rules IRFA. The Commission’s Final apply, but we reserve the right to adopt Regulatory Flexibility Analysis C. Description and Number of Small a more suitable definition of ‘‘small Entities to Which the Rules Will Apply (‘‘FRFA’’) 3 in this Report and Order is business’’ as applied to television as follows: 1. Definition of a ‘‘Small Business’’ broadcast stations and to consider further the issue of the number of small A. Need for and Objectives of the Rules 74. Under the RFA, small entities may entities that are television broadcasters include small organizations, small in the future. Further, in this FRFA, we 72. The rulemaking proceeding was businesses, and small governmental will identify the different classes of initiated to explore ways to implement jurisdictions. 5 U.S.C. § 601(6). The small television stations that may be the Children’s Television Act of 1990 RFA, 5 U.S.C. § 601(3), generally defines impacted by the rules adopted in this (‘‘CTA’’) more effectively by facilitating the term ‘‘small business’’ as having the Report and Order. broadcasters’ compliance with their same meaning as the term ‘‘small obligation to air educational and business concern’’ under the Small 2. Issues in Applying the Definition of a ‘‘Small Business’’ informational programming for Business Act, 15 U.S.C. § 632. A small children, including programming business concern is one which: (1) is 76. As discussed below, we could not specifically designed for this purpose, independently owned and operated; (2) precisely apply the foregoing definition is not dominant in its field of operation; and by furthering the CTA’s goal of of ‘‘small business’’ in developing our and (3) satisfies any additional criteria increasing the amount of educational estimates of the number of small entities established by the Small Business and informational programming to which the rules will apply. Our Administration (‘‘SBA’’). Id. According estimates reflect our best judgments available to children. In ¶¶ 9–13 of the to the SBA’s regulations, entities based on the data available to us. Report and Order, we discuss the engaged in television broadcasting 77. An element of the definition of importance of children’s educational (Standard Industrial Classification ‘‘small business’’ is that the entity not television programming, and in ¶¶ 25– (‘‘SIC’’) Code 4833—Television be dominant in its field of operation. We 46 and throughout this order, we Broadcasting Stations) may have a were unable at this time to define or discuss the basis of our concerns that maximum of § 10.5 million in annual quantify the criteria that would our prior rules to implement the CTA receipts in order to qualify as a small establish whether a specific television were not producing a level of business concern.4 13 CFR §§ 121.101 et station is dominant in its field of performance consistent with the long- seq. This standard also applies in operation. Accordingly, the following term goals of the statute. The rules determining whether an entity is a small estimates of small businesses to which adopted herein meet these objectives by business for purposes of the RFA. the new rules will apply do not exclude giving licensees clear, efficient, and fair 75. Pursuant to 5 U.S.C. 601(3), the any television station from the guidance regarding their children’s statutory definition of a small business programming obligation under the CTA. applies ‘‘unless an agency after 5 We have pending proceedings seeking comment consultation with the Office of on the definition of and data relating to small They do this by increasing the flow of businesses. In our Notice of Inquiry in GN Docket programming information to the public Advocacy of the Small Business Administration and after opportunity No. 96–113 (In the Matter of Section 257 Proceeding to facilitate enforcement of the CTA and to Identify and Eliminate Market Entry Barriers for for public comment, establishes one or improve the functioning of the Small Businesses), 61 FR 33066 (June 26, 1996), we more definitions of such term which are requested commenters to provide profile data about children’s programming marketplace; by appropriate to the activities of the small telecommunications businesses in particular services, including television, and the market entry adopting a definition of programming agency and publishes such definition(s) that is clearly ‘‘specifically designed’’ to barriers they encounter, and we also sought in the Federal Register.’’ While we comment as to how to define small businesses for educate and inform children (which we tentatively believe that the foregoing purposes of implementing Section 257 of the refer to as ‘‘core programming’’) to definition of ‘‘small business’’ greatly Telecommunications Act of 1996, which requires us provide licensees guidance in fulfilling to identify market entry barriers and to prescribe regulations to eliminate those barriers. The their statutory obligation to air this 4 This revenue cap appears to apply to comment and reply comment deadlines in that programming; and by adopting a three- noncommercial educational television stations, as proceeding have not yet elapsed. Additionally, in hour processing guideline to facilitate well as to commercial television stations. See our Order and Notice of Proposed Rule Making in Executive Office of the President, Office of MM Docket No. 96–16 (In the Matter of review at renewal time by the Management and Budget, Standard Industrial Streamlining Broadcast EEO Rule and Policies, Commission, as required by the CTA, of Classification Manual (1987), at 283, which Vacating the EEO Forfeiture Policy Statement and licensees’ compliance with the Act. describes ‘‘Television Broadcasting Stations (SIC Amending Section 1.80 of the Commission’s Rules Code 4833) as: to Include EEO Forfeiture Guidelines), 61 FR 9964 Establishments primarily engaged in broadcasting (March 12, 1996), we invited comment as to visual programs by television to the public, except whether relief should be afforded to stations: (1) 3 This FRFA conforms to the RFA, as amended by cable and other pay television services. Included in based on small staff and what size staff would be the Contract with America Advancement Act of this industry are commercial, religious, educational considered sufficient for relief, e.g., 10 or fewer full- 1996, Pub. L. 104–121, 110 Stat. 847 (1996) and other television stations. Also included here are time employees; (2) based on operation in a small (‘‘CWAAA’’). Subtitle II of the CWAAA is The establishments primarily engaged in television market; or (3) based on operation in a market with Small Business Regulatory Enforcement Fairness broadcasting and which produce taped television a small minority work force. We have not Act of 1996 (‘‘SBREFA’’). program materials. concluded the foregoing rule making. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43993 definition of a small business on this 3. Estimates Based on Census and BIA While noncommercial stations are not basis and are therefore overinclusive to Data subject to the new reporting or that extent. An additional element of the 80. According to the Census Bureau, recordkeeping requirements adopted in definition of ‘‘small business’’ is that the in 1992, there were 1,155 out of 1,478 the Report and Order, the new entity must be independently owned operating television stations with definition (except for the reporting and operated. We attempted to factor in revenues of less than ten million requirements) and the processing this element by looking at revenue dollars. This represents 78 percent of all guideline will apply to them. The BIA statistics for owners of television television stations, including non- data indicate that, based on 1995 stations. However, as discussed further commercial stations. See 1992 Census of revenue estimates, 440 full-power commercial television stations had an below, we could not fully apply this Transportation, Communications, and estimated revenue of 10.5 million criterion, and our estimates of small Utilities, Establishment and Firm Size, dollars or less. That represents 54 businesses to which the rules may apply May 1995, at 1–25. The Census Bureau does not separate the revenue data by percent of commercial television may be overinclusive to this extent. The stations with revenue estimates listed in SBA’s general size standards are commercial and non-commercial stations in this report. Neither does it the BIA program. The data base does not developed taking into account these two list estimated revenues for 331 stations. statutory criteria. This does not allow us to determine the number of stations with a maximum of 10.5 Using a worst case scenario, if those 331 preclude us from taking these factors million dollars in annual receipts. stations for which no revenue is listed into account in making our estimates of Census data also indicates that 81 are counted as small stations, there the numbers of small entities. percent of operating firms (that owned would be a total of 771 stations with an 78. With respect to applying the at least one television station) had estimated revenue of 10.5 million revenue cap, the SBA has defined revenues of less than 10 million dollars or less, representing ‘‘annual receipts’’ specifically in 13 CFR dollars.6 approximately 68 percent of the 1,141 § 121.104, and its calculations include 81. We have also performed a separate commercial television stations listed in an averaging process. We do not study based on the data contained in the the BIA data base. BIA Publications, Inc. Master Access 82. Alternatively, if we look at owners currently require submission of of commercial television stations as financial data from licensees that we Television Analyzer Database,7 which lists a total of 1,141 full-power listed in the BIA data base, there are a could use in applying the SBA’s total of 488 owners. The data base lists definition of a small business. Thus, for commercial television stations. We have excluded Low Power Television (LPTV) estimated revenues for 60 percent of purposes of estimating the number of these owners, or 295. Of these 295 small entities to which the rules apply, stations or translator stations, which will not be subject to the new owners, 158 or 54 percent had annual we are limited to considering the requirements, from our calculations.8 It revenues of 10.5 million dollars or less. revenue data that are publicly available, should be noted that, using the SBA Using a worst case scenario, if the 193 and the revenue data on which we rely definition of small business concern, the owners for which revenue is not listed may not correspond completely with the percentage figures derived from the BIA are assumed to be small, the total of SBA definition of annual receipts. data base may be underinclusive small entities would constitute 72 79. Under SBA criteria for because the data base does not list percent of owners. 83. In summary, based on the determining annual receipts, if a revenue estimates for noncommercial foregoing worst case analysis using educational stations, and these are concern has acquired an affiliate or been census data, we estimate that our rules therefore excluded from our acquired as an affiliate during the will apply to as many as 1,155 calculations based on the data base.9 applicable averaging period for commercial and non-commercial determining annual receipts, the annual television stations (78 percent of all receipts in determining size status 6 Alternative data supplied by the U.S. Small Business Administration Office of Advocacy stations) that could be classified as include the receipts of both firms. 13 indicate that 65 percent of TV owners (627 of 967) small entities. Using a worst case CFR § 121.104(d)(1). The SBA defines have less than $10 million in annual revenue and analysis based on the data in the BIA affiliation in 13 CFR § 121.103. In this that 39 percent of TV stations (627 of 1,591) have data base, we estimate that as many as less than $10 million in annual revenue. These data context, the SBA’s definition of affiliate were prepared by the U.S. Census Bureau under approximately 771 commercial is analogous to our attribution rules. contract to the Small Business Administration. U.S. television stations (about 68 percent of Generally, under the SBA’s definition, Small Business Administration 1992 Economic all commercial televisions stations) concerns are affiliates of each other Census Industry and Enterprise Receipts Report, could be classified as small entities. As Table 2D (U.S. Census Bureau data adopted by when one concern controls or has the SBA). These data show a lower percentage of small we noted above, these estimates are power to control the other, or a third businesses than the data available directly from the based on a definition that we tentatively party or parties controls or has the Census Bureau. Therefore, for purposes of our worst believe greatly overstates the number of case analysis, we will use the data available directly television broadcasters that are small power to control both. 13 CFR from the Census Bureau. § 121.103(a)(1). The SBA considers 7 BIA Publications, Inc., Chantilly, VA. businesses. Further, it should be noted factors such as ownership, management, 8 It should be noted that the Commission has that under the SBA’s definitions, previous relationships with or ties to attempted to minimize the burden on small entities revenues of affiliated businesses that are by not applying the rules to LPTV stations and another concern, and contractual not television stations should be television translators. As of June 30, 1996, there aggregated with the television station relationships, in determining whether were 1,903 LPTV stations and 4,910 television affiliation exists. 13 CFR § 121.103(a)(2). translators licensed in the United States. FCC News revenues in determining whether a Release, Broadcast Station Totals as of June 30, concern is small. Therefore, these Instead of making an independent 1996, Mimeo No. 63298, released July 10, 1996. estimates overstate the number of small determination of whether television 9 In the Joint Comments of the Association of entities since the revenue figures on stations were affiliated based on SBA’s America’s Public Television Stations and the Public which they are based do not include or definitions, we relied on the data bases Broadcasting Service (p. 6), it is reported that there are 38 public television stations with annual available to us to provide us with that operating budgets of less than $2 million. As of June licensed. FCC News Release, Broadcast Station information. 30, 1996, there were 364 public television stations Totals as of June 30, 1996, released July 10, 1996. 43994 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations aggregate such revenues from non- total number of commercial television including time, date, duration, and television affiliated companies. stations with 4 or fewer employees is description of the programs. These 84. It should also be noted that the 132 and that the total number of reports may be produced either foregoing estimates do not distinguish noncommercial educational television quarterly or annually at the licensee’s between network-affiliated 10 stations stations with 4 or fewer employees is discretion. Licensees maintain these and independent stations. As of April, 136.14 reports in their public inspection file. 1996, the BIA data base indicates that 86. Size of the station based on the 89. The new rules will require about 73 percent of all commercial number of employees is only one factor commercial television licensees to television stations were affiliated with in assessing the impact of the provide a brief explanation in their the ABC, CBS, NBC, Fox, UPN, or WB compliance requirements on small children’s programming reports of how networks. Moreover, seven percent of stations. For example, as discussed particular programs meet the definition those affiliates have secondary below, the resources that may often be of programming specifically designed to affiliations.11 We assume that provided from the networks to network meet children’s educational and compliance with the requirements affiliates and from program syndicators informational needs that is adopted in adopted in the Report and Order will be to broadcasters showing their the Report and Order. Licensees will be less burdensome for network affiliates programming should ease the required to produce their children’s than for independent stations, as the compliance requirements by providing reports quarterly. For an experimental networks may provide some core educational program descriptions which period of three years, broadcasters will programming to network affiliates at can be used in public information be required to file these reports with the lower costs than the network affiliates dissemination. Small group-owned Commission on an annual basis (i.e., might otherwise be able to obtain. The stations may also receive similar four quarterly reports filed jointly once networks might also otherwise assist benefits from their parent companies a year). Broadcasters will also be with the fulfillment of additional when programs have been produced or required to separate their children’s requirements. acquired for multiple stations in the programming reports from other group. However, we do not have the materials in their public files and to 4. Alternative Classification of Small necessary information at this time to publicize in an appropriate manner the Stations determine the number of small group- existence and location of the children’s 85. An alternative way to classify owned stations, either under the SBA’s programming reports. The Commission small television stations is by the definition or based on those stations will, at a later date, adopt a number of employees. The Commission that have fewer than five full-time standardized form for the programming currently applies a standard based on employees. reports. We will also permit, but not require, electronic filing of children’s the number of employees in D. Description of Projected Reporting, programming reports. Finally, the administering its Equal Employment Recordkeeping and Other Compliance Commission will, at a later date, revise Opportunity (‘‘EEO’’) rule for Requirements of the Rules broadcasting.12 Thus, radio or television its license renewal form to reflect the stations with fewer than five full-time 87. The rules adopted in the Report new three hour core programming employees are exempted from certain and Order require commercial processing guideline, discussed below. EEO reporting and recordkeeping television broadcasters, regardless of 90. While licensees remain ultimately requirements.13 We estimate that the size, but not including LPTV or responsible for ensuring compliance translator stations, to identify programs with our rules, we anticipate that they 10 In this context, ‘‘affiliation’’ refers to any local specifically designed to educate and may be able to refer to information broadcast television station that has a contractual inform children at the time those provided by the broadcast networks and arrangement with a programming network to carry programs are aired (at the beginning of program suppliers in assessing the the network’s signal. This definition of affiliated the program), in a form that is at the educational and informational purpose station includes both stations owned and operated by a network and stations owned by other entities. discretion of the licensee, and to of programming. Further, we anticipate 11 Secondary affiliations are secondary to the provide information identifying such that station programming and clerical primary affiliation of the station and generally programs and the age groups for which, staff will continue to be able to perform afford the affiliate additional choice of in the opinion of the broadcaster, they the other reporting and recordkeeping programming. are intended, to publishers of program functions required under the rules. 12 The Commission’s definition of a small broadcast station for purposes of applying its EEO guides. 91. Under the new rules, commercial rule was adopted prior to the requirement of 88. Our rules currently require television licensees will also be required approval by the Small Business Administration commercial licensees to complete to designate a liaison at the station for pursuant to Section 3(a) of the Small Business Act, reports containing information about the children’s programming and to include 15 U.S.C. § 632(a), as amended by Section 222 of the name and method of contacting that the Small Business Credit and Business children’s programming they air, Opportunity Enhancement Act of 1992, Pub. L. No. person in the children’s programming 102–366, § 222(b)(1), 106 Stat. 999 (1992), as further small stations while maintaining the effectiveness reports. In order to minimize burdens, amended by the Small Business Administration of our broadcast EEO enforcement. Order and the Report and Order exempts Reauthorization and Amendments Act of 1994, Pub. Notice of Proposed Rule Making in MM Docket No. noncommercial educational television L. No. 103–403, § 301, 108 Stat. 4187 (1994). 96–16 (In the Matter of Streamlining Broadcast EEO However, this definition was adopted after public Rule and Policies, Vacating the EEO Forfeiture stations from this requirement. With notice and an opportunity for comment. See Report Policy Statement and Amending Section 1.80 of the respect to the liaison, the rules do not and Order in Docket No. 18244, 35 FR 8825 (June Commission’s Rules to Include EEO Forfeiture require that a new or additional 6, 1970). Guidelines), 61 FR 9964 (March 12, 1996). One employee be hired to perform this 13 See, e.g., 47 CFR § 73.3612 (Requirement to file option under consideration is whether to define a annual employment reports on Form 395–B applies small station for purposes of affording such relief function, and we believe that it is to licensees with five or more full-time employees); as one with ten or fewer full-time employees. Id. at reasonable to require licensees to First Report and Order in Docket No. 21474 (In the ¶ 21. designate a liaison for children’s Matter of Amendment of Broadcast Equal 14 We base this estimate on a compilation of 1995 programming since someone at each Employment Opportunity Rules and FCC Form Broadcast Station Annual Employment Reports 395), 44 FR 6722 (Feb. 2, 1979). The Commission (FCC Form 395–B), performed by staff of the Equal station must, as a practical matter, be is currently considering how to decrease the Opportunity Employment Branch, Mass Media responsible for carrying out the administrative burdens imposed by the EEO rule on Bureau, FCC. broadcaster’s responsibility under the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43995

CTA to air children’s educational suggested in the NPRM. Further, such effort, but have a major positive effect, television programming and since an identification requirement may for them to do so. licensees are currently required to benefit small stations by affording a c. Public File Requirements maintain children’s programming potential increase in audience size. An reports and letters received from the on-air identification requirement will 98–99. Our rules currently require public in their public inspection file. make broadcasters more accountable to commercial television licensees to 92. To minimize regulatory burdens, the public and further the goal of compile reports, containing information the new rules exempt noncommercial minimizing the possibility that the about the children’s programming they educational television stations from the Commission would be forced to decide air, including the time, date, duration, foregoing reporting, filing, and whether particular programs serve the and description of the programs. submission requirements and public educational and informational needs of Licensees maintain these reports in the information initiatives. children. We note that it is standard station’s public inspection file. Our new rules will require commercial television E. Steps Taken To Minimize Significant practice in the broadcast industry for licensees to prepare these reports using Economic Impact on Small Entities and stations to make various on-air a standardized format on a quarterly Significant Alternatives Considered announcements promoting their programming. We further note that basis. The reports will describe their 93. In general, we have attempted to under longstanding Commission rules, efforts to comply with the CTA-related keep burdens on television broadcast stations must make station programming requirements outlined in stations to a minimum, as discussed identification and sponsorship this decision. Licensees will be required below. The regulatory burdens we have announcements. See 47 CFR §§ 73.1201, to provide a brief explanation of how imposed are necessary to ensure 73.1212. particular programs meet the definition compliance with the CTA. of ‘‘core’’ programming. Commercial 1. Public Information Initiatives b. Program Guides television licensees will be required to separate the children’s programming 94. We adopted the requirements that 97. Television stations currently reports from the other reports they commercial television broadcasters submit programming information to maintain in their public files. identify children’s educational and programming guides, which publish 100. The impact of this requirement informational programs and designate a such information without cost to the will depend on the specific class into liaison for children’s programming, as broadcasters. See ¶ 60 supra. Our which a small station falls. Network- well as the revised public file current rules do not require broadcasters affiliated stations, regardless of staff requirements, based on the goal of to provide this information to the size, may have network support in affording the public sufficient guides. However, it has become a well- fulfilling aspects of the reporting information to play an active role in established practice to provide requirement for the programs that are assuring that the goals of the CTA are specialized information about programs, broadcast by the network. For example, met. We will also make information such as which programs are closed we assume that, in developing the obtained from the children’s captioned for the hearing impaired. Our educational and informational programming reports available on our new rules will require commercial programming they furnish to affiliates, Internet World Wide Web site if it is television broadcasters to provide to networks will have prepared program feasible so that it will be accessible by publishers of program guides information about the educational and the public. Allowing the public to play information identifying core programs, informational benefits to children that an active role will, in turn, allow the and the age group for which, in the can be disseminated to affiliated Commission to minimize its opinion of the broadcaster, the program stations.16 Assuming that the network involvement in evaluating the quality of is intended.15 This information will furnishes such material, a small station children’s programming and to rely assist parents in finding suitable may be able to rely on it in preparing more on the marketplace to achieve the programs for their children and be its programming report, with respect to goals of the CTA, thereby minimizing useful to parents and others who wish the network programs that it airs. In regulatory burdens. to monitor station performance in addition, program syndicators may also 95. We determined that these complying with the CTA. We recognize provide the information needed for a information requirements should not that broadcasters cannot require small station to complete its children’s impose significant additional burdens publishers to print this information. The programming reports with respect to the on licensees, and, in adopting the rules, information, however, is more likely to programs furnished by the syndicator, the Commission has attempted to be in the program listings if broadcasters further lessening any burden on small minimize regulatory and significant routinely provide it. This requirement is stations. economic burdens on small businesses a minor extension of what small stations 101. A small station that wishes to and facilitate compliance with reporting already do for their standard produce its own children’s educational rules wherever possible. programming. Stations are not required programming will not have the benefit a. Identification of Core Programming to purchase advertising space in TV of any such material provided by a Guide or local TV weekly publications, 96. The burden of the on-air network or syndicator in fulfilling the only to provide information to them. As identification requirement on all program report requirements. However, broadcasters routinely provide such commercial television broadcast assuming a determination of the information about their programming to stations, including small stations, is program guides and designate core 16 minimized because the form of the See e.g., NBC Comments at 7, 19; NBC Reply programs for their public records, we Comments at 9 (written articulation of the identification is at their discretion. The believe it would require a minimum of educational theme or goal of each educational rules adopted provide greater discretion segment furnished to affiliates for inclusion in their to television stations and are thus less children’s programming reports); see also ABC 15 As described above in Section IV of the Report Comments at 12 (ABC currently provides to its burdensome than if we had adopted a and Order, we will require that commercial requirement that broadcasters use an broadcasters indicate the age of the target child affiliates a brief explanation of how particular icon for such identification, as audience in their program description. programs meet the definition of educational and informational programming for children). 43996 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations educational and informational attributes burden on licensees. The rules do not benefits of the proposal. See Report and of the program has been made at the require that a new or additional Order, ¶¶ 91–95. The description of a pre-production/development stage, employee be hired to perform this program’s educational objective does additional analysis may not be function, and we believe that it is not have to be lengthy, and we do not necessary in preparing the programming reasonable to require licensees to require that the description be prepared report. It is not required, nor should it designate a liaison for children’s by an expert. be necessary, for a small station to hire programming since someone at each 3. Processing Guideline additional personnel or a children’s station must, as a practical matter, be educational expert to prepare such responsible for carrying out the 107. We adopt a three-hour per week reports. The Commission considered but broadcaster’s responsibility under the safe harbor processing guideline. A specifically rejected such a requirement CTA to air children’s educational processing guideline is consistent with in order to minimize regulatory burdens television programming. In addition, the text of the CTA and with the First on licensees. our rules place no limitations on the Amendment, and we conclude that our 102. A number of broadcasters and licensee’s discretion in assigning the current ad hoc approach provides other commenters requested that the liaison function and determining how it inadequate guidance to licensees and Commission develop a standardized will be carried out. Commission staff. Under the new form to facilitate their assembly of processing guideline adopted, we would children’s programming reports, which 2. Definition of ‘‘Specifically Designed’’ permit staff approval of the children’s they are required to do under our Programming programming portion of the renewal current rules. See Report and Order, 105. The CTA requires the application where the three-hour ¶ 69 and n. 174 supra. So that the Commission to consider the extent to benchmark is met. A measure of reporting burden will be minimized, the which a broadcaster has ‘‘served the flexibility is afforded to licensees, Commission will develop a educational and informational needs of including small businesses, since a standardized form to be used for children through the licensee’s overall licensee falling somewhat short of this preparing the quarterly children’s programming, including programming benchmark could still receive staff programming reports. We believe that specifically designed to serve such approval based on a showing that it has the standardized form will make needs.’’ We determined that we should aired a package of different types of compliance with the reporting adopt a definition of programming educational and informational requirements easier and less specifically designed to serve children’s programming that, while containing burdensome for all entities, including educational and informational needs (or somewhat less than three hours per small entities. See Report and Order, ‘‘core programming’’) because our week of core programming, ¶¶ 69–72. current definition is very broad, does demonstrates a level of commitment to 103. With regard to licensees not distinguish between general educating and informing children that is publicizing the availability and location audience/entertainment programs and at least equivalent to airing three hours of the programming reports, we believe programs that are specifically designed per week of core programming. In this that this requirement should not be to educate and inform, and does not regard, specials, PSAs, short-form burdensome on small entities because provide licensees with sufficient programs and regularly scheduled non- we do not prescribe the manner in guidance regarding their obligation to weekly shows with a significant which licensees are to publicize the air ‘‘specifically designed’’ purpose of educating and informing availability and location of the reports, programming as required by the CTA. children can count toward the three but allow the licensees flexibility to do The definition is designed to be hour per week processing guideline. so in an appropriate manner. Therefore, sensitive to our concerns that the rules Renewal applications that do not meet licensees may choose to fulfill the be explicit, clear, simple, and fair and these criteria will be referred for requirement in a manner that is least that they afford clear guidance to consideration to the Commission, where burdensome to them, provided they do licensees as to their obligations under they will have a full opportunity to so in an appropriate manner. the CTA. demonstrate compliance with the CTA. 104. Our new rules also require 106. In adopting the definition, we Such applicants may be able to commercial television licensees to attempted to minimize regulatory demonstrate compliance, for example, designate a liaison for children’s burdens and economic impact on small by relying in part on sponsorship of core programming and to include the name entities. For example, the Commission educational and informational programs and method of contacting that rejected a proposal advanced by several on other stations in the market that individual in the station’s children’s commenters that licensees be required increases the amount of core programming reports.17 Licensees to consult with educational experts in educational and informational already employ sufficient staff in order order for a program to qualify as core programming on the station airing the to maintain the children’s programming programming. Report and Order, ¶ 90. sponsored program and/or on special reports 18 and letters received from the The Commission rejected this proposal nonbroadcast efforts that enhance the public in their public inspection files, as in order to minimize burdens on our value of children’s educational and required by our current regulations.19 licensees. An element of our core informational television programming. Thus, we do not expect that the new programming definition is the A processing guideline is consistent requirement for designation of a liaison requirement that commercial television with the text of the CTA that the will impose a significant additional licensees specify in writing in their Commission ‘‘consider the extent’’ to children’s programming report the which licensees serve the ‘‘educational 17 As noted earlier, noncommercial educational educational and informational objective and informational needs of children television licensees are exempt from this of a core program as well as its target through the licensee’s overall requirement. child audience. While we recognize this programming, including programming 18 NPRM, 60 FR 20586; 47 CFR § 73.1202. element of the revised definition may specifically designed to serve such 19 47 CFR § 73.1202. Commercial stations are required to maintain a number of other reports, impose an additional paperwork burden needs.’’ Report and Order, ¶¶ 120–130. records, and applications in their public inspection on commercial licensees, we conclude 108. In adopting this guideline, the file as well. See id. at § 73.3526. that the burden is outweighed by the Commission seeks to minimize the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations 43997 regulatory burdens and economic programming responsibility with also be published in the Federal impact on licensees, including small program sponsorship or other Register. businesses, by delegating authority to exceptional programming efforts. Ordering Clauses the Mass Media Bureau to approve 111. The Commission concludes that Category A or Category B renewal the option chosen strikes the 114. Accordingly, it is Ordered that, applications. See Report and Order, appropriate balance between the need pursuant to the authority contained in ¶¶ 120–34. Additionally, the for certainty and flexibility in enforcing Sections 4 (i) & (j), 303(r), 308, and 403 Commission allows broadcasters the CTA and is thus preferable to both of the Communications Act of 1934, 47 scheduling flexibility by adopting a per- the monitoring and programming U.S.C. 154 (i) & (j), 303(r), 308, 403, as week rather than a per-day safe harbor standard proposals set forth in the amended, and the Children’s Television and by permitting the three-hour NPRM. It should be noted that the Act of 1990, 47 U.S.C. 303b(a), 303b(b), benchmark to be averaged over a six- option chosen, a processing standard, is and 394, Part 73 of the Commission’s month period, and further attempts to less burdensome and affords licensees, Rules, 47 CFR Part 73 IS AMENDED as minimize the economic impact by including small businesses, greater set forth below. The rule changes to allowing repeats and reruns of core flexibility than if the Commission had Sections 73.673, 73.3526(a)(8)(iii), and programming to be counted toward imposed a programming standard. 73.3500, 47 CFR §§ 73.673, fulfillment of the three-hour guideline. Based on the record, the Commission 73.3526(a)(8)(iii), 73.3500, shall take 109. With respect to network does not believe that three hours of effect on January 2, 1997, subject to affiliates, we expect that networks, as educational programming would be OMB approval under the Paperwork they have in the past, will provide difficult for most broadcasters to Reduction Act. Appropriate public programming and compliance achieve. While mere monitoring might notice will be given upon OMB’s action information to their affiliates so that, be less burdensome than a processing to confirm this effective date. The rule regardless of revenues, the burden on guideline, the Commission concludes in changes to Sections 73.671 and 73.672, network-affiliated stations will be the Report and Order that it is 47 CFR §§ 73.671, 73.672, shall take minimized. Indeed, as noted in ¶ 132 of inadvisable to process renewals under effect on September 1, 1997. the Report and Order, Westinghouse the CTA without some quantitative 115. It is further ordered that the new Electric Corporation has announced that guidelines that are published in advance it will provide three hours per week of or modified paperwork requirements to provide licensees notice as to means contained in this Report and Order children’s educational programming by which they can fulfill their CTA over the CBS network and on its owned (which are subject to approval by the obligations. and operated stations by the fall 1997 Office of Management and Budget) will season. Further, we assume that the 112. Finally, the Commission will go into effect upon OMB approval. three-hour per week guideline will not revise its license renewal form to reflect 116. It is further ordered that the be burdensome because, as the National the new three hour core programming Secretary shall send a copy of this Association of Broadcasters (‘‘NAB’’) processing guideline. To minimize the Report and Order, including the Final reports, broadcasters today air an regulatory burden and economic impact Regulatory Flexibility Analysis, to the average of more than four hour per week on broadcasters, including small Chief Counsel for Advocacy of the Small of total educational and informational businesses, they will be able to Business Administration in accordance programming under the CTA. See demonstrative compliance either by with paragraph 603(a) of the Regulatory Report and Order, ¶ 40. Even though checking a box and providing Flexibility Act, Public Law No. 96–354, that figure may be inflated by the supporting information indicating that 94 Stat. 1164, 5 U.S.C. 601 et seq. inclusion of some programming that they have aired an average of three (1981). may not qualify under the definition of hours per week of core programming or by showing that they have aired a 117. It is further ordered that this core programming, it suggests that a proceeding is terminated. three-hour processing guideline is a package of different types of educational reasonable level that should not be and informational programming that, List of Subjects in 47 CFR Part 73 particularly difficult for broadcasters to while containing somewhat less than Television. achieve. three hours per week of core 110. The Commission considered but programming, demonstrates a level of Federal Communications Commission did not adopt two alternative options to commitment to educating and informing William F. Caton, the processing guideline: (1) children that is at least equivalent to Acting Secretary. Commission monitoring of the amount airing three hours per week of core of educational and informational programming. In revising the renewal Rule Changes programming on the air during a period form, we will seek to minimize the Part 73 of Title 47 of the Code of of time following the adoption of reporting burden on licensees, including Federal Regulations is amended as measures to improve the flow of small businesses, by, for example, follows: programming information to the public permitting them to rely on the and a definition of core programming; children’s programming reports they PART 73ÐRADIO BROADCAST and (2) adoption of a programming have previously prepared. SERVICES standard that would require F. Report to Congress broadcasters to air a specified average 1. The authority citation for Part 73 number of hours of programming 113. The Secretary shall send a copy continues to read as follows: specifically designed to serve the of this Final Regulatory Flexibility Authority: 47 U.S.C. 154, 303, 334. educational and informational needs of Analysis along with this Report and children. The rule adopted furthers the Order in a report to Congress pursuant 2. Section 73.671 is amended by goal of making the Commission’s rules to Section 251 of the Small Business removing the Note following the and processes as clear, efficient, and fair Regulatory Enforcement Fairness Act of section, revising paragraph (a), and by as possible, while affording licensees 1996, codified at 5 U.S.C. Section adding paragraph (c) and Notes 1 and 2 discretion to augment their core 801(a)(1)(A). A copy of this FRFA will to read as follows: 43998 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Rules and Regulations

§ 73.671 Educational and informational of Core Programming (as defined in (8)(i) * * * programming for children. paragraph (c) of this section and as averaged (ii) * * * (a) Each commercial and over a six month period) will be deemed to noncommercial educational television have satisfied its obligation to air such (iii) For commercial TV broadcast programming and shall have the CTA portion broadcast station licensee has an stations, on a quarterly basis, a of its license renewal application approved completed Children’s Television obligation to serve, over the term of its by the Commission staff. A licensee will also license, the educational and be deemed to have satisfied this obligation Programming Report (‘‘Report’’), on FCC informational needs of children through and be eligible for such staff approval if the Form 398, reflecting efforts made by the both the licensee’s overall programming licensee demonstrates that it has aired a licensee during the preceding quarter, and programming specifically designed package of different types of educational and and efforts planned for the next quarter, to serve such needs. informational programming that, while to serve the educational and containing somewhat less than three hours informational needs of children. The * * * * * per week of Core Programming, demonstrates (c) For purposes of this section, a level of commitment to educating and Report for each quarter is to be filed by educational and informational informing children that is at least equivalent the tenth day of the succeeding calendar television programming is any to airing three hours per week of Core quarter. The Report shall identify the television programming that furthers the Programming. In this regard, specials, PSAs, licensee’s educational and informational educational and informational needs of short-form programs, and regularly programming efforts, including children 16 years of age and under in scheduled non-weekly programs with a programs aired by the station that are significant purpose of educating and specifically designed to serve the any respect, including the child’s informing children can count toward the intellectual/cognitive or social/ three hour per week processing guideline. educational and informational needs of emotional needs. Programming Licensees that do not meet these processing children, and it shall explain how specifically designed to serve the guidelines will be referred to the programs identified as Core educational and informational needs of Commission, where they will have full Programming meet the definition set children (‘‘Core Programming’’) is opportunity to demonstrate compliance with forth in § 73.671(c). The Report shall educational and informational the CTA (e.g., by relying in part on include the name of the individual at sponsorship of core educational/ programming that satisfies the following informational programs on other stations in the station responsible for collecting additional criteria: the market that increases the amount of core comments on the station’s compliance (1) It has serving the educational and educational and informational programming with the Children’s Television Act, and informational needs of children ages 16 on the station airing the sponsored program it shall be separated from other and under as a significant purpose; and/or on special nonbroadcast efforts which materials in the public inspection file. (2) It is aired between the hours of enhance the value of children’s educational Licensees shall publicize in an and informational television programming). 7:00 a.m. and 10:00 p.m.; appropriate manner the existence and (3) It is a regularly scheduled weekly § 73.672 [Removed and Reserved] location of these Reports. For an program; experimental period of three years, (4) It is at least 30 minutes in length; 3. Section 73.672 is removed and (5) The educational and informational reserved. licensees shall file these Reports with objective and the target child audience 4. New Section 73.673 is added to the Commission on an annual basis, i.e., are specified in writing in the licensee’s read as follows: four quarterly reports filed jointly each Children’s Television Programming year, preferably in electronic form. § 73.673 Public information initiatives These Reports shall be filed with the Report, as described in regarding educational and informational § 73.3526(a)(8)(iii); and programming for children. Commission on January 10, 1998, January 10, 1999, and January 10, 2000. (6) Instructions for listing the program (a) Each commercial television as educational/informational, including broadcast licensee shall identify * * * * * an indication of the age group for which programs specifically designed to 6. Section 73.3500 is amended by the program is intended, are provided educate and inform children at the adding entry 398 in numerical order to by the licensee to publishers of program beginning of the program, in a form that read as follows: guides, as described in § 73.673(b). is in the discretion of the licensee. Note 1 to § 73.671: For purposes of (b) Each commercial television § 73.3500 Application and report forms. determining under this section whether broadcast station licensee shall provide * * * * * programming has a significant purpose of information identifying programming serving the educational and informational specifically designed to educate and Form needs of children, the Commission will inform children to publishers of num- Title ordinarily rely on the good faith judgments ber of the licensee. Commission review of program guides. Such information shall compliance with that element of the include an indication of the age group for which the program is intended. definition will be done only as a last resort. ***** Note 2 to § 73.671: The Commission will 5. Section 73.3526(a)(8)(iii) is revised 398 ... Children's Television Programming use the following processing guideline in to read as follows: Report. assessing whether a television broadcast licensee has complied with the Children’s § 73.3526 Local public inspection file of Television Act of 1990 (‘‘CTA’’). A licensee commercial stations. [FR Doc. 96–21798 Filed 8–26–96; 8:45 am] that has aired at least three hours per week (a) * * * BILLING CODE 6712±01±P 43999

Proposed Rules Federal Register Vol. 61, No. 167

Tuesday, August 27, 1996

This section of the FEDERAL REGISTER (USDA) procedures established by collect premiums or other monetary contains notices to the public of the proposed Executive Order No. 12866 and amounts, and pay benefits. issuance of rules and regulations. The Departmental Regulation 1512–1. This All information is reported annually. purpose of these notices is to give interested action constitutes a review as to the The reporting burden for this collection persons an opportunity to participate in the need, currency, clarity, and of information is estimated to average rule making prior to the adoption of the final 16.9 minutes per response for each of rules. effectiveness of these regulations under those procedures. The sunset review the 3.6 responses from approximately date established for these regulations is 1,755,015 respondents. The total annual DEPARTMENT OF AGRICULTURE March 1, 1999. burden on the public for this This rule has been determined to be information collection is 2,676,932 Federal Crop Insurance Corporation significant for the purposes of Executive hours. Order No. 12866 and, therefore, has FCIC is soliciting comments for the 7 CFR Part 457 been reviewed by the Office of following: (a) whether the proposed collection of information is necessary RIN 0563±AB52 Management and Budget (OMB). for the proper performance of the Cost-Benefit Analysis Common Crop Insurance Regulations; functions of the agency, including ELS Cotton Crop Insurance Provisions A Cost-Benefit Analysis has been whether the information shall have completed and is available to interested practical utility; (b) the accuracy of the AGENCY: Federal Crop Insurance persons at the address listed above. In agency’s estimate of the burden of the Corporation. summary, the analysis finds that the proposed collection of information; (c) ACTION: Proposed rule. expected benefits of this action ways to enhance the quality, utility, and outweigh the costs. Clarification of the clarity of the information to be SUMMARY: The Federal Crop Insurance collected; and (d) ways to minimize the Corporation (FCIC) proposes to amend provisions and administrative changes that simplify program operations will burden of the collection of information the Extra Long Staple (ELS) Cotton Crop on respondents, including the use of Insurance Provisions. The intended benefit producers, FCIC, and insurance providers. automated collection techniques or effect of this action is to provide policy other forms of information gathering changes to better meet the needs of the Paperwork Reduction Act of 1995 technology. insured. The information collection Comments regarding paperwork DATES: Written comments, data, and requirements contained in the these reduction should be submitted to the opinions on this proposed rule will be regulations were previously approved Desk Officer for Agriculture, Office of accepted until close of business by OMB pursuant to the Paperwork Information and Regulatory Affairs, September 26, 1996 and will be Reduction Act of 1995 (44 U.S.C. Office of Management and Budget, Washington, D.C. 20503 and to Bonnie considered when the rule is to be made chapter 35) under OMB control number Hart, Advisory and Corporate final. The comment period for 0563–0003 through September 30, 1998. Operations Staff, Regulatory Review information collection under the The amendments set forth in this Group, Farm Service Agency, P.O. Box Paperwork Reduction Act of 1995 proposed rule do not contain additional 2415, Ag Box 0570, U.S. Department of continues through October 25, 1996. information collections that require Agriculture, Washington, D.C. 20013– ADDRESSES: Interested persons are clearance by the OMB under the invited to submit written comments to 2415. Telephone (202) 690–2857. Copies provisions of 44 U.S.C. chapter 35. of the information collection may be the Chief, Product Development Branch, The title of this information collection Federal Crop Insurance Corporation, obtained from Bonnie Hart at the above is ‘‘Catastrophic Risk Protection Plan stated address. U.S. Department of Agriculture, 9435 and Related Requirements including, Holmes Road, Kansas City, MO 64131. Common Crop Insurance Regulations; Unfunded Mandates Reform Act of Written comments will be available for ELS Cotton Crop Provisions.’’ The 1995 public inspection and copying in room information to be collected includes: a Title II of the Unfunded Mandate 0324, South Building, 14th and crop insurance acreage report, an Reform of 1995 (UMRA), Pub. L. 104– Independence Avenue, S.W., insurance application, and a continuous 4, establishes requirements for Federal Washington, D.C., 8:15 a.m.–5:45 p.m., contract. Information collected from the agencies to assess the effects of their Monday through Friday. acreage report and application is regulatory actions on state, local, and FOR FURTHER INFORMATION CONTACT: electronically submitted to FCIC by the tribal governments and the private Stephen Hoy, Program Analyst, reinsured companies. Potential sector. Under section 202 of the UMRA, Research and Development Division, respondents to this information FCIC generally must prepare a written Product Development Branch, FCIC, at collection are producers of ELS cotton statement, including a cost-benefit 9435 Holmes Road, Kansas City, MO that are eligible for Federal crop analysis, for proposed and final rules 64131, telephone (816) 926–7730. insurance. with ‘‘Federal mandates’’ that may SUPPLEMENTARY INFORMATION: The information requested is result in expenditures of state, local, or necessary for the insurance company tribal governments, in the aggregate, or Executive Order No. 12866 and and FCIC to provide insurance and to the private sector, of $100 million or Departmental Regulation 1512–1 reinsurance, determine eligibility, more in any one year. When such a This action has been reviewed under determine the correct parties to the statement is needed for a rule, section United States Department of Agriculture agreement or contract, determine and 205 of the UMRA generally requires 44000 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules

FCIC to identify and consider a part 3015, subpart V, published at 48 FR 4. Section 5—Change the cancellation reasonable number of regulatory 29115, June 24, 1983. and termination dates of March 15 to alternatives and adopt the least costly, February 28 for all states except New Executive Order No. 12778 more cost-effective or least burdensome Mexico. This change is necessary to alternative that achieves the objectives The Office of the General Counsel has comply with the requirement of the of the rule. determined that these regulations meet Federal Crop Insurance Reform Act of This rule contains no Federal the applicable standards provided in 1994 that moved the sales closing dates mandates (under the regulatory sections 2(a) and 2(b)(2) of Executive for spring planted crops 30 days earlier. provisions of title II of the UMRA) for Order No. 12778. The provisions of this The present cancellation and state, local, and tribal governments or rule will not have a retroactive effect termination dates of March 15 for New the private sector. Thus, this rule is not prior to the effective date. The Mexico will remain the same because subject to the requirements of section provisions of this rule will preempt the date has already been moved 30 202 and 205 of the UMRA. state and local laws to the extent such days earlier in the 1995 crop year. state and local laws are inconsistent 5. Section—Move the substantive Executive Order No. 12612 herewith. The administrative appeal provisions for providing insurance It has been determined under section provisions in 7 CFR parts 11 and 780 coverage by written agreement from 6(a) of Executive Order No. 12612, must be exhausted before action for section 1(q) to this new section for Federalism, that this rule does not have judicial review may be brought. clarification. sufficient federalism implications to Environmental Evaluation List of Subjects in 7 CFR Part 457 warrant the preparation of a Federalism Assessment. The provisions contained This action is not expected to have a Crop insurance, ELS Cotton, in this rule will not have a substantial significant impact on the quality of the Reporting and recordkeeping direct effect on States or their political human environment, health, and safety. requirements. subdivisions or on the distribution of Therefore, neither an Environmental Proposed Rule power and responsibilities among the Assessment nor an Environmental various levels of government. Impact Statement is needed. Pursuant to the authority contained in the Federal Crop Insurance Act, as Regulatory Flexibility Act National Performance Review amended (7 U.S.C. 1501 et seq.), the This regulation will not have a This regulatory action is being taken Federal Crop Insurance Corporation significant impact on a substantial as part of the National Performance hereby proposes to amend the Common number of small entities. Under the Review Initiative to eliminate Crop Insurance Regulations, (7 CFR part current regulations, a producer is unnecessary or duplicative regulations 457), effective for the 1997 and required to complete an application and and improve those that remain in force. succeeding crop years, to read as follows: acreage report. If the crop is damaged or Background destroyed, the insured is required to PART 457Ð[AMENDED] give notice of loss and provide the FCIC proposes to amend the Common necessary information to complete a Crop Insurance Regulations (7 CFR part 1. The authority citation for 7 CFR claim for indemnity. If the insured 457) by revising 7 CFR § 457.105 part 457 continues to read as follows: effective for the 1997 and succeeding elects to use actual records of acreage Authority: 7 U.S.C. 1506(l) and 1506(p). and production as the basis for the crop years. The principal changes to the production guarantee, the insured may provisions for insuring ELS cotton are as 2. Section 457.105 is amended by elect to report this information on a follows: revising subsection 1(j) as follows: yearly basis. This regulation does not 1. Section 1—Specify that the yield § 457.105 Extra long staple cotton crop alter those requirements. Therefore, the conversion factor normally applied to insurance provisions. non-irrigated skip-row cotton acreage amount of work required of the * * * * * insurance companies and FSA offices will not be used if the land between the 1. Definitions delivering and servicing these policies rows of cotton is planted to any other spring crop. Current regulations specify * * * * * will not increase significantly from the (j) Planted acreage—Land in which seed amount of work currently required. This that the yield conversion factor cannot has been placed by a machine appropriate for rule does not have any greater or lesser be applied if the land between the rows the insured crop and planting method, at the impact on the insured. Therefore, this of cotton is planted to any crop. This correct depth, into a seedbed which has been action is determined to be exempt from conflicts with the definition of ‘‘skip- properly prepared for the planting method the provisions of the Regulatory row’’ in section 1(o)(1), which allows a and production practice. Cotton must be Flexibility Act (5 U.S.C. 605), and no planting pattern of alternating rows of planted in rows to be considered planted. Regulatory Flexibility Analysis was cotton and land planted to another crop Planting in any other manner will be prepared. planted the previous fall. Change considered as a failure to follow recognized ‘‘Agricultural Stabilization and good farming practices and any loss of Federal Assistance Program production will not be insured unless Conservation Service’’ to ‘‘Farm Service otherwise provided by the Special Provisions This program is listed in the Catalog Agency (FSA)’’ to conform with the or by written agreement to insure such crop. of Federal Domestic Assistance under United States Department of Agriculture The yield conversion factor normally applied No. 10.450. Reorganization Act of 1994. Amend the to non-irrigated skip-row cotton acreage will definition of ‘‘written agreement’’ to not be used if the land between the rows of Executive Order No. 12372 remove the substantive provisions. cotton is planted to any other spring planted This program is not subject to the 2. Section 2(d)(1) and (2)—change crop. provisions of Executive Order No. ‘‘ASCS’’ to ‘‘FSA’’. * * * * * 12372, which require intergovernmental 3. Section 2(d)(2)—Clarify unit 3. In § 457.105, Section 1(o)(2) is consultation with State and local division for non-irrigated corners of revised to read as follows: officials. See the Notice related to 7 CFR center pivot irrigation systems. * * * * * Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44001

(o) * * * 13. Written Agreement DATES: Written comments in response to (1) * * * Designated terms of this policy may be this notice must be received by (2) Qualifies as a skip-row planting pattern altered by written agreement. The following September 9, 1996. as defined by the Farm Service Agency conditions will apply: (FSA). (a) You must apply in writing for each ADDRESSES: A copy of the data sheets * * * * * written agreement no later than the sales entitled ‘‘Product Data Sheets for 4. In § 457.105, Section 1(q) is revised closing date, except as provided in section Standards Rulemakings Priority Setting’’ to read as follows: 13(e). may be obtained from: U.S. Department (b) The application for written agreement * * * * * of Energy, Office of Energy Efficiency must contain all terms of the contract and Renewable Energy, Forrestal (q) Written agreement—A written between the insurance provider and the document that alters designated terms of a insured that will be in effect if the written Building, EE–43, 1000 Independence policy in accordance with section 13. agreement is not approved. Avenue, SW., Washington, DC 20585, * * * * * (c) If approved, the written agreement must (202) 586–7574. This document may be 5. In § 457.105, Section 2(d)(1) is include all variable terms of the contract, read at the DOE Freedom of Information amended by removing ‘‘ASCS’’ and including, but not limited to, crop type or Reading Room, U.S. DOE, Forrestal inserting in its place ‘‘FSA.’’ variety, the guarantee, premium rate, and Building, Room 1E–190, 1000 6. In § 457.105, Section 2(d)(2) is price election. Independence Avenue, SW., revised to read as follows: (d) Each written agreement will only be Washington, DC 20585, (202) 586–6020, valid for one year. If the written agreement 2. Unit Division is not specifically renewed the following between the hours of 9:00 a.m. and 4:00 p.m., Monday through Friday, except * * * * * year, insurance coverage for subsequent crop (d) * * * years will be in accordance with the printed Federal holidays. (1) * * * policy. Written comments, 10 copies, are to (2) Optional Units on Acreage Including (e) An application for written agreement be submitted to: U.S. Department of Both Irrigated and Non-Irrigated Practices: In submitted after the sales closing date may be Energy, Office of Energy Efficiency and addition to, or instead of, establishing approved if, after a physical inspection of the Renewable Energy, ‘‘Product Data acreage, it is determined that no loss has optional units by section, section equivalent, Sheets for Standards Rulemakings or FSA Farm Serial Number, optional units occurred and the crop is insurable in may be based on irrigated acreage or non- accordance with the policy and written Priority Setting,’’ Forrestal Building, irrigated acreage if both are located in the agreement provisions. EE–43, Room 1J–018, 1000 same section, section equivalent, or FSA Signed in Washington D.C., on August 20, Independence Avenue, SW., Farm Serial Number. To qualify as separate 1996. Washington, DC 20585. irrigated and non-irrigated optional units, the Kenneth D. Ackerman, FOR FURTHER INFORMATION CONTACT: non-irrigated acreage may not continue into the irrigated acreage in the same rows or Manager, Federal Crop Insurance Ms. Sandy Beall, Office of Energy planting pattern. The irrigated acreage may Corporation. Efficiency and Renewable Energy, U.S. not extend beyond the point at which the [FR Doc. 96–21623 Filed 8–26–96; 8:45 am] Department of Energy, Mail Station EE– irrigation system can deliver the quantity of BILLING CODE 3410±FA±P 43, 1000 Independence Avenue, SW., water needed to produce the yield on which Washington, DC 20585–0121, (202) 586– the guarantee is based, except that the 7574. corners of a field in which a center pivot irrigation system is used will be considered DEPARTMENT OF ENERGY SUPPLEMENTARY INFORMATION: The as irrigated acreage if separate acceptable Department of Energy’s appliance records of production from the corners are Office of Energy Efficiency and standards program is conducted not provided. If the corners of a field in Renewable Energy pursuant to Title III, Part B of the Energy which a center-pivot irrigation system is used 10 CFR Part 430 Policy and Conservation Act, as do not qualify as a separate non-irrigated amended (EPCA). 42 U.S.C. §§ 6291– optional unit, they will be considered part of RIN 1904±AA83 the unit containing the irrigated acreage. 6309. In 1987, EPCA was amended to establish by law national efficiency However, non-irrigated acreage that is not a Energy Conservation Program for part of a field in which a center-pivot standards for certain appliances and a irrigation system is used may qualify as a Consumer Products schedule for DOE to conduct separate optional unit provided that all other AGENCY: Office of Energy Efficiency and rulemakings to periodically review and requirements of this section are met. Renewable Energy, Department of update these standards. National * * * * * Energy (DOE). Appliance Energy Conservation Act, 7. In § 457.105, Section 5 is revised to ACTION: Notice of Availability. Pub. L. 100–12 (1987). The products read as follows: covered by these standards included * * * * * SUMMARY: The Department of Energy refrigerators and freezers, room air 5. Cancellation and Termination Dates today gives notice that copies of the conditioners, central air conditioners In accordance with section 2 (Life of draft ‘‘Product Data Sheets for Standards and heat pumps, water heaters, Policy, Cancellation, and Termination) of the Rulemakings Priority Setting’’ are furnaces, dishwashers, clothes washers Common Crop Insurance Policy (§ 457.8), the available for comment. The draft data and dryers, direct heating equipment, cancellation and termination dates are: sheets provide the priority level and ranges and ovens, and pool heaters. In rationale, schedule, and pertinent 1988, EPCA was amended to include Cancellation and ter- States minationÐdates information on the products covered by fluorescent lamp ballasts. National the Office of Codes and Standards Appliance Energy Conservation Act New Mexico ...... March 15 (OCS). Comments will be used to set the Amendments of 1988, Pub. L. 100–357 All other States ...... February 28 priority and schedule for the appliance (1988). In conducting the rulemakings to standards program, which will be update the standards, the Secretary of * * * * * published in the Administration’s Energy is to set standards at levels that 8. In § 457.105, Section 13 is added to Regulatory Agenda. The priorities will achieve the maximum improvement in read as follows: help OCS allocate resources to meet its energy efficiency that is technologically * * * * * mission. feasible and economically justified. 44002 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules

The Energy Policy Act of 1992 available a copy of said sheets for vertical leg of the rear spar lower cap of (EPACT) further amended EPCA to standards rulemakings priority setting. the wings, and various follow-on expand the coverage of the standards DOE will use the revised data sheets to actions. This proposal is prompted by program to include certain commercial determine the priority of various reports that, due to improper torque and industrial equipment, including rulemakings in the next year. These tightening of the attach studs of the flap commercial heating and air- revised sheets provide a priority, hinge fitting, fatigue cracks were found conditioning equipment, water heaters, schedule and rationale for each product. in the vertical leg of the rear spar lower certain incandescent and fluorescent The Department would like your further cap of the wing. The actions specified lamps, distribution transformers, and input on the priorities before preparing by the proposed AD are intended to electric motors. Energy Policy Act of the Administration’s Regulatory prevent such fatigue cracking, which, if 1992, Pub. L. 102–486 (1992). EPACT Agenda. The Regulatory Agenda will not detected and corrected in a timely also established maximum water flow- provide stakeholders with the actions manner, could result in loss of the spar rate requirements for certain plumbing and a schedule for those actions that cap, and consequent damage to the spar products and provided for voluntary DOE plans to accomplish in the next cap web and adjacent wing skin testing and consumer information year. structure; this condition could lead to programs for office equipment, The priority levels will provide DOE reduced structural integrity of the wing. luminaires, and windows. with guidance on which products to DATES: Comments must be received by EPCA also provides for DOE to focus and allocate resources towards. October 7, 1996. establish test procedures to be used in For the high priority products, DOE ADDRESSES: Submit comments in determining compliance with efficiency plans to pursue actively (meetings and triplicate to the Federal Aviation standards. These test procedures are workshops) and publish notices Administration (FAA), Transport revised periodically to reflect new (Determinations, Advance Notices of Airplane Directorate, ANM–103, product designs or technologies. Proposed Rules, Notices of Proposed Attention: Rules Docket No. 96–NM– As prescribed by EPCA, energy Rules and/or Final Rules) in the next 53–AD, 1601 Lind Avenue, SW., efficiency standards are established by a year. For the medium priority products, Renton, Washington 98055–4056. three-phase public process: Advance DOE plans to initiate work in support of Comments may be inspected at this Notice of Proposed Rulemaking rulemakings in the next year, for location between 9:00 a.m. and 3:00 (ANOPR), Notice of Proposed example, conducting a screening p.m., Monday through Friday, except Rulemaking (NOPR), and Final Rule. workshop for a standards rulemakings. Federal holidays. The process to develop test procedures For the low priority products, DOE does The service information referenced in is similar, except that an Advance not plan to actively pursue rulemakings the proposed rule may be obtained from Notice is not required. in the next two years. Work would be McDonnell Douglas Corporation, 3855 On July 15, 1996, the Department limited to basic technology investigation Lakewood Boulevard, Long Beach, published a final rule that outlines the and monitoring of voluntary programs. California 90846, Attention: Technical procedures, and policies that will guide Publications Business Administration, DOE as it works with stakeholders to Issued in Washington, DC, on August 21, Department C1–L51 (2–60). This establish new or revised energy 1996. efficiency standards for consumer Joseph Romm, information may be examined at the products. The new process provides for Principal Deputy Assistant Secretary, Energy FAA, Transport Airplane Directorate, greater public input, improved Efficiency and Renewable Energy. 1601 Lind Avenue, SW., Renton, analytical approaches and encourages [FR Doc. 96–21785 Filed 8–26–96; 8:45 am] Washington. FOR FURTHER INFORMATION CONTACT: consensus-based standards that BILLING CODE 6450±01±P streamline the regulatory process and Brent Bandley, Aerospace Engineer, reduce the time and cost of developing Airframe Branch, ANM–120L, FAA, Los standards. A key element of the new DEPARTMENT OF TRANSPORTATION Angeles Aircraft Certification Office, process is the involvement of 3960 Paramount Boulevard, Lakewood, stakeholders in the priority setting of Federal Aviation Administration California 90712; telephone (310) 627– the products to increase the 5237; fax (310) 627–5210. 14 CFR Part 39 predictability of the rulemaking SUPPLEMENTARY INFORMATION: timetable. [Docket No. 96±NM±53±AD] A workshop was held on June 14, Comments Invited 1996, to discuss the criteria to be used RIN 2120±AA64 Interested persons are invited to in planning and prioritizing future participate in the making of the Airworthiness Directives; McDonnell rules, and review of the draft product proposed rule by submitting such Douglas Model DC±9±80 Series data sheets to be used to develop a written data, views, or arguments as Airplanes and Model MD±88 Airplanes priority ranking for the products. To they may desire. Communications shall assist in the development of the AGENCY: Federal Aviation identify the Rules Docket number and priorities, DOE developed data sheets Administration, DOT. be submitted in triplicate to the address for each product. Once DOE has ACTION: Notice of proposed rulemaking specified above. All communications received input from stakeholders, the (NPRM). received on or before the closing date priorities and schedule for the appliance for comments, specified above, will be standards program will be determined. SUMMARY: This document proposes the considered before taking action on the The schedule will then be published in adoption of a new airworthiness proposed rule. The proposals contained the Administration’s Regulatory Agenda directive (AD) that is applicable to in this notice may be changed in light in October 1996. certain McDonnell Douglas Model DC– of the comments received. Based on the comments from the 9–80 series airplanes and Model MD–88 Comments are specifically invited on workshop and written comments airplanes. This proposal would require the overall regulatory, economic, received, DOE has revised the draft visual/dye penetrant and ultrasonic environmental, and energy aspects of product data sheets and is making inspections to detect cracks in the the proposed rule. All comments Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44003 submitted will be available, both before describes procedures for either Regulatory Impact and after the closing date for comments, tightening the four mounting studs of The regulations proposed herein in the Rules Docket for examination by the flap hinge fitting in the rear spar would not have substantial direct effects interested persons. A report caps (two studs in the upper cap and on the States, on the relationship summarizing each FAA-public contact two studs in the lower cap) to between the national government and concerned with the substance of this applicable torque value, or conducting the States, or on the distribution of proposal will be filed in the Rules repetitive visual/dye penetrant and power and responsibilities among the Docket. Commenters wishing the FAA ultrasonic inspections. For cases where various levels of government. Therefore, to acknowledge receipt of their any crack is detected during the in accordance with Executive Order comments submitted in response to this inspection, the service bulletin 12612, it is determined that this notice must submit a self-addressed, describes procedures for performing a proposal would not have sufficient stamped postcard on which the high frequency eddy current inspection federalism implications to warrant the following statement is made: to confirm existence of cracking, and preparation of a Federalism Assessment. ‘‘Comments to Docket Number 96–NM– various follow-on actions. (These For the reasons discussed above, I 53–AD.’’ The postcard will be date follow-on actions include, among other certify that this proposed regulation (1) stamped and returned to the actions, replacement of the entire spar is not a ‘‘significant regulatory action’’ commenter. cap, permanent splice repair of the spar under Executive Order 12866; (2) is not Availability of NPRMs cap, temporary repair of the spar cap, a ‘‘significant rule’’ under the DOT and repetitive inspections.) Any person may obtain a copy of this Regulatory Policies and Procedures (44 FR 11034, February 26, 1979); and (3) if NPRM by submitting a request to the Explanation of Requirements of promulgated, will not have a significant FAA, Transport Airplane Directorate, Proposed Rule ANM–103, Attention: Rules Docket No. economic impact, positive or negative, 96–NM–53–AD, 1601 Lind Avenue, Since an unsafe condition has been on a substantial number of small entities SW., Renton, Washington 98055–4056. identified that is likely to exist or under the criteria of the Regulatory develop on other products of this same Flexibility Act. A copy of the draft Discussion type design, the proposed AD would regulatory evaluation prepared for this The FAA has received reports of require visual/dye penetrant and action is contained in the Rules Docket. fatigue cracks found in the vertical leg ultrasonic inspections to detect cracks A copy of it may be obtained by of the rear spar lower cap of the wing in the vertical leg of the rear spar lower contacting the Rules Docket at the on two McDonnell Douglas Model MD– cap of the wings below and in the location provided under the caption 81 airplanes. One of the airplanes had adjacent area of the two lower attaching ADDRESSES. accumulated 17,354 total landings, and stud holes for the inboard hinge fitting List of Subjects in 14 CFR Part 39 the other airplane had accumulated of the outboard flap at station Air transportation, Aircraft, Aviation approximately 24,000 total landings. Xrs=164.000, and various follow-on safety, Safety. These fatigue cracks ran out of the lower actions. The actions would be required inboard attach stud hole for the inboard to be accomplished in accordance with The Proposed Amendment flap hinge fitting of the outboard flap at the service bulletin described Accordingly, pursuant to the station Xrs=164.000 on the left or right previously. If any crack progression is authority delegated to me by the wings. This fatigue cracking apparently found during any repetitive eddy Administrator, the Federal Aviation is the result of applying less than the current inspection, the repair/ Administration proposes to amend part required torque on the attach studs of replacement would be required to be 39 of the Federal Aviation Regulations the flap hinge fitting, during production accomplished in accordance with a (14 CFR part 39) as follows: of these airplanes. Fatigue cracking in method approved by the FAA. the vertical leg of the rear spar lower PART 39ÐAIRWORTHINESS cap of the wings, if not detected and Cost Impact DIRECTIVES corrected in a timely manner, could There are approximately 489 result in loss of the spar cap, and 1. The authority citation for part 39 McDonnell Douglas Model DC–9–80 consequent damage to the spar cap web continues to read as follows: series airplanes and Model MD–88 and adjacent wing skin structure; this Authority: 49 U.S.C. 106(g), 40113, 44701. airplanes of the affected design in the condition could lead to reduced worldwide fleet. The FAA estimates that structural integrity of the wing. § 39.13 [Amended] 306 airplanes of U.S. registry would be 2. Section 39.13 is amended by Explanation of Relevant Service affected by this proposed AD, that it adding the following new airworthiness Information would take approximately 26 work directive: hours per airplane to accomplish the The FAA has reviewed and approved McDonnell Douglas: Docket 96–NM–53–AD. McDonnell Douglas MD–80 Service proposed actions, and that the average labor rate is $60 per work hour. Based Applicability: Model DC–9–81 (MD–81), Bulletin 57–184, Revision 1, dated DC–9–82 (MD–82), DC–9–83 (MD–83), DC– December 22, 1994. The service bulletin on these figures, the cost impact of the 9–87 (MD–87) series airplanes and Model describes procedures for performing proposed AD on U.S. operators is MD–88 airplanes, as listed in McDonnell visual/dye penetrant and ultrasonic estimated to be $477,360, or $1,560 per Douglas MD–80 Service Bulletin 57–184, inspections to detect cracks in the airplane. Revision 1, dated December 22, 1994; vertical leg of the rear spar lower cap of The cost impact figure discussed certificated in any category. the wings below and in the adjacent above is based on assumptions that no Note 1: This AD applies to each airplane area of the two lower attaching stud operator has yet accomplished any of identified in the preceding applicability provision, regardless of whether it has been holes for the inboard hinge fitting of the the proposed requirements of this AD modified, altered, or repaired in the area outboard flap at station Xrs=164.000. action, and that no operator would subject to the requirements of this AD. For For cases where no cracks are detected accomplish those actions in the future if airplanes that have been modified, altered, or during inspection, the service bulletin this AD were not adopted. repaired so that the performance of the 44004 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules requirements of this AD is affected, the (c) Condition 2. If any crack is detected contained in this regulation have been owner/operator must request approval for an during any inspection required by paragraph approved by the Office of Management and alternative method of compliance in (a) or (b)(2) of this AD, prior to further flight, Budget (OMB) under the provisions of the accordance with paragraph (e) of this AD. perform a high frequency eddy current Paperwork Reduction Act of 1980 (44 U.S.C. The request should include an assessment of inspection to confirm the existence of 3501 et seq.) and have been assigned OMB the effect of the modification, alteration, or cracking, in accordance with McDonnell Control Number 2120–0056. repair on the unsafe condition addressed by Douglas MD–80 Service Bulletin 57–184, (e) An alternative method of compliance or this AD; and, if the unsafe condition has not Revision 1, dated December 22, 1994. After adjustment of the compliance time that been eliminated, the request should include this inspection, accomplish the requirements provides an acceptable level of safety may be specific proposed actions to address it. of either paragraph (c)(1), (c)(2), or (c)(3) of used if approved by the Manager, Los Compliance: Required as indicated, unless this AD, as applicable. Angeles Aircraft Certification Office (ACO), accomplished previously. (1) If no cracking is confirmed, accomplish FAA, Transport Airplane Directorate. To prevent fatigue cracking in the vertical the requirements of either paragraph (b)(1) Operators shall submit their requests through leg of the rear spar lower cap of the wing, [‘‘Condition 1, Option 1’’] or (b)(2) an appropriate FAA Principal Maintenance which could lead to reduced structural [‘‘Condition 1, Option 2’’] of this AD. Inspector, who may add comments and then integrity of the wing, accomplish the (2) Condition 2, Option 1. If any cracking send it to the Manager, Los Angeles ACO. following: is confirmed, prior to further flight, replace Note 3: Information concerning the (a) Perform visual/dye penetrant and the entire spar cap or accomplish the existence of approved alternative methods of ultrasonic inspections to detect cracks in the permanent splice repair of the spar cap, and compliance with this AD, if any, may be vertical leg of the rear spar lower cap of the tighten the four mounting studs of the flap obtained from the Los Angeles ACO. wings below and in the adjacent area of the hinge fitting in the rear spar caps (2 studs in (f) Special flight permits may be issued in two lower attaching stud holes for the the upper cap and 2 studs in the lower cap) accordance with sections 21.197 and 21.199 inboard hinge fitting of the outboard flap at to the applicable torque value, in accordance of the Federal Aviation Regulations (14 CFR station Xrs=164.000, in accordance with with the service bulletin. Accomplishment of 21.197 and 21.199) to operate the airplane to McDonnell Douglas MD–80 Service Bulletin this tightening of the mounting studs a location where the requirements of this AD 57–184, Revision 1, dated December 22, constitutes terminating action for the can be accomplished. 1994; at the time specified in paragraph repetitive inspection requirements of Issued in Renton, Washington, on August (a)(1), (a)(2), (a)(3), or (a)(4) of this AD, as paragraph (c)(3) of this AD. 20, 1996. applicable. (3) Condition 2, Option 2. If cracking is (1) For airplanes that have accumulated confirmed and it does not extend beyond the Darrell M. Pederson, less than 8,000 total landings as of the location limits and does not exceed the Acting Manager, Transport Airplane effective date of this AD: Perform the maximum permissible crack length of 2 Directorate, Aircraft Certification Service. inspection prior to the accumulation of inches, prior to further flight, accomplish the [FR Doc. 96–21743 Filed 8–26–96; 8:45 am] 10,000 landings or within 3,000 landings temporary repair modification of the spar cap BILLING CODE 4910±13±U after the effective date of this AD, whichever in accordance with the service bulletin. occurs later. Thereafter, repeat the eddy current (2) For airplanes that have accumulated inspection at intervals not to exceed 3,000 14 CFR Part 39 8,000 or more total landings but less than landings until paragraph (c)(2) of this AD is 10,000 total landings as of the effective date accomplished. [Docket No. 96±NM±80±AD] of this AD: Perform the inspection within (i) If any crack progression is found during 3,000 landings after the effective date of this any repetitive eddy current inspection RIN 2120±AA64 AD. following accomplishment of the temporary (3) For airplanes that have accumulated repair, prior to further flight, contact the Airworthiness Directives; Fokker 10,000 or more total landings but less than Manager, Los Angeles Aircraft Certification Model F27 Mark 100, 200, 300, 400, 500, 15,000 total landings as of the effective date Office, FAA, Transport Airplane Directorate, 600, and 700 Series Airplanes of this AD: Perform the inspection within telephone (310) 627–5237, fax (310) 627– 2,400 landings after the effective date of this 5210, to establish the appropriate repair or AGENCY: Federal Aviation AD. replacement interval. Administration, DOT. (4) For airplanes that have accumulated Note 2: Operators should note that, unlike ACTION: Notice of proposed rulemaking 15,000 or more total landings as of the (NPRM). effective date of this AD: Perform the the recommended compliance time of inspection within 1,800 landings after the ‘‘within 3,000 landings after discovery of cracking,’’ which is specified in the service SUMMARY: This document proposes the effective date of this AD. adoption of a new airworthiness (b) Condition 1. If no crack is detected bulletin as the time for accomplishing the during any inspection required by paragraph permanent splice repair or replacement of the directive (AD) that is applicable to all (a) of this AD, accomplish the requirements spar cap, this AD requires that operators Fokker Model F27 Mark 100, 200, 300, of either paragraph (b)(1) or (b)(2) of this AD, contact the FAA prior to further flight. The 400, 500, 600, and 700 series airplanes. in accordance with McDonnell Douglas MD– FAA finds that the repair/replacement This proposal would require 80 Service Bulletin 57–184, Revision 1, dated interval should be established based on the replacement of certain rudder horn December 22, 1994. crack progression. Where there are differences between the AD and the service assemblies with a new assembly. For (1) Condition 1, Option 1. Prior to further certain airplanes, the proposed AD also flight, tighten the four mounting studs of the bulletin in this regard, the AD prevails. (ii) If any new crack is found during any would require replacement of certain flap hinge fitting in the rear spar caps (2 rudder control rods with a new rod. studs in the upper cap and 2 studs in the repetitive eddy current inspection following lower cap) to the applicable torque value, in accomplishment of the temporary repair, This proposal is prompted by reports of accordance with the service bulletin. prior to further flight, accomplish the cracked rudder horns and a cracked Accomplishment of this tightening of the permanent repair in accordance with the rudder control rod, caused by impact mounting studs of the flap hinge fitting service bulletin. overload. The actions specified by the constitutes terminating action for the (d) Within 10 days after accomplishing the proposed AD are intended to prevent repetitive inspection requirements of initial visual/dye penetrant and ultrasonic such an overload and consequent paragraph (b)(2) of this AD. inspections required by paragraph (a) of this cracking of the subject parts, which AD, submit a report of the inspection results (2) Condition 1, Option 2. Repeat the could result in reduced structural visual/dye penetrant and ultrasonic (both positive and negative findings) to the inspections required by paragraph (a) of this Manager, Los Angeles ACO, 3229 East Spring integrity of the rudder horn assembly or AD thereafter at intervals not to exceed 3,000 Street, Long Beach, California 90806–2425; loss of rudder control; this condition landings until paragraph (b)(1) of this AD is telephone (310) 627–5237; fax (310) 627– could lead to reduced controllability of accomplished. 5210. Information collection requirements the airplane. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44005

DATES: Comments must be received by Availability of NPRMs airworthiness agreement, the RLD has October 7, 1996. Any person may obtain a copy of this kept the FAA informed of the situation described above. The FAA has ADDRESSES: Submit comments in NPRM by submitting a request to the examined the findings of the RLD, triplicate to the Federal Aviation FAA, Transport Airplane Directorate, reviewed all available information, and Administration (FAA), Transport ANM–103, Attention: Rules Docket No. determined that AD action is necessary Airplane Directorate, ANM–103, 96–NM–80–AD, 1601 Lind Avenue, for products of this type design that are Attention: Rules Docket No. 96–NM– SW., Renton, Washington 98055–4056. certificated for operation in the United 80–AD, 1601 Lind Avenue, SW., Discussion States. Renton, Washington 98055–4056. Comments may be inspected at this The Rijksluchtvaartdienst (RLD), Explanation of Requirements of location between 9:00 a.m. and 3:00 which is the airworthiness authority for Proposed Rule the Netherlands, recently notified the p.m., Monday through Friday, except Since an unsafe condition has been Federal holidays. FAA that an unsafe condition may exist on all Fokker Model F27 Mark 100, 200, identified that is likely to exist or The service information referenced in 300, 400, 500, 600, and 700 series develop on other airplanes of the same the proposed rule may be obtained from airplanes. The RLD advises it has type design, the proposed AD would Fokker Aircraft USA, Inc., 1199 North received reports of cracked rudder horns require replacement of certain rudder Fairfax Street, Alexandria, Virginia and a cracked rudder control rod found horn assemblies with a new rudder horn 22314. This information may be on these airplanes. Investigation assembly. For certain airplanes, the examined at the FAA, Transport revealed the cause of such cracking has proposed AD also would require Airplane Directorate, 1601 Lind been attributed to an impact overload on replacement of certain rudder control Avenue, SW., Renton, Washington. the rudder horn assembly. The existing rods with a new rudder control rod. The actions would be required to be FOR FURTHER INFORMATION CONTACT: design of the rudder horn assembly accomplished in accordance with the Ruth Harder, Aerospace Engineer, allows the rudder to swing around in service bulletin described previously. Standardization Branch, ANM–113, heavy gust conditions. The inertia of the FAA, Transport Airplane Directorate, rudder swinging movement can cause Cost Impact an impact overload when one of the 1601 Lind Avenue, SW., Renton, The FAA estimates that 34 Fokker rudder limit stops is hit. This condition, Washington 98055–4056; telephone Model F27 Mark 100, 200, 300, 400, (206) 227–1721; fax (206) 227–1149. if not corrected, could result in reduced structural integrity of the rudder horn 500, 600, and 700 series airplanes of SUPPLEMENTARY INFORMATION: assembly or loss of rudder control, and, U.S. registry would be affected by this consequently, lead to reduced proposed AD. Comments Invited It would take approximately 7 work controllability of the airplane. Interested persons are invited to hours per airplane to accomplish the participate in the making of the Explanation of Relevant Service proposed replacement of the rudder proposed rule by submitting such Information horn assembly, at an average labor rate written data, views, or arguments as Fokker has issued Service Bulletin of $60 per work hour. Required parts they may desire. Communications shall F27/27–131, Revision 1, dated June 15, would cost approximately $2,565 per identify the Rules Docket number and 1994, which describes procedures for airplane. Based on these figures, the cost be submitted in triplicate to the address replacement of the rudder horn impact of the replacement of the rudder specified above. All communications assembly, having part number (P/N) horn assembly proposed by this AD on received on or before the closing date 3401–042–901 or –401, with a new U.S. operators is estimated to be for comments, specified above, will be rudder horn assembly, having P/N $101,490, or $2,985 per airplane. considered before taking action on the F3402–070–407. The new rudder horn There currently are no Fokker Model proposed rule. The proposals contained is made of a stronger aluminum alloy F27 Mark 100, 200, 300, 400, 500, 600, in this notice may be changed in light material. Additionally, for certain or 700 series airplanes on the U.S. of the comments received. airplanes, the service bulletin Register that would require the recommends replacement of the rudder replacement of the rudder control rod. Comments are specifically invited on The only airplanes that would require the overall regulatory, economic, control rod, having P/N 5233–018–xxx, with a new rudder control rod, having this replacement currently are operated environmental, and energy aspects of P/N F8507–052–403. The new control by non-U.S. operators under foreign the proposed rule. All comments rod contains regreasable bearings which registry; therefore, they are not directly submitted will be available, both before are less sensitive to seizure. The RLD affected by this AD action. However, the and after the closing date for comments, classified this service bulletin as FAA considers that inclusion of that in the Rules Docket for examination by mandatory and issued Dutch requirement in this proposed rule is interested persons. A report airworthiness directive BLA 94–105 (A), necessary to ensure that the unsafe summarizing each FAA-public contact dated August 5, 1994, in order to assure condition is addressed in the event that concerned with the substance of this the continued airworthiness of these any of these airplanes are imported and proposal will be filed in the Rules airplanes in the Netherlands. placed on the U.S. Register in the future. Docket. Should any of those airplanes (having Commenters wishing the FAA to FAA’s Conclusion serial numbers 10102, and 10105 acknowledge receipt of their comments This airplane model is manufactured through 10165, inclusive) be imported submitted in response to this notice in the Netherlands and is type and placed on the U.S. Register in the must submit a self-addressed, stamped certificated for operation in the United future, it would take approximately 5 postcard on which the following States under the provisions of section work hours per airplane to accomplish statement is made: ‘‘Comments to 21.29 of the Federal Aviation the proposed replacement of the rudder Docket Number 96–NM–80–AD.’’ The Regulations (14 CFR 21.29) and the control rod, at an average labor rate of postcard will be date stamped and applicable bilateral airworthiness $60 per work hour. Required parts returned to the commenter. agreement. Pursuant to this bilateral would cost approximately $635 per 44006 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules airplane. Based on these figures, the cost Applicability: All Model F27 Mark 100, Issued in Renton, Washington, on August impact of the replacement of the rudder 200, 300, 400, 500, 600, and 700 series 20, 1996. control rod proposed by this AD on U.S. airplanes, certificated in any category. Darrell M. Pederson, operators is estimated to be $935 per Note 1: This AD applies to each airplane Acting Manager, Transport Airplane airplane. identified in the preceding applicability Directorate, Aircraft Certification Service. The cost impact figures discussed provision, regardless of whether it has been [FR Doc. 96–21745 Filed 8–26–96; 8:45 am] above are based on assumptions that no otherwise modified, altered, or repaired in BILLING CODE 4910±13±U operator has yet accomplished any of the area subject to the requirements of this the proposed requirements of this AD AD. For airplanes that have been modified, action, and that no operator would altered, or repaired so that the performance 14 CFR Part 39 accomplish those actions in the future if of the requirements of this AD is affected, the this AD were not adopted. owner/operator must request approval for an [Docket No. 96±NM±48±AD] alternative method of compliance in Regulatory Impact accordance with paragraph (b) of this AD. RIN 2120±AA64 The regulations proposed herein The request should include an assessment of the effect of the modification, alteration, or Airworthiness Directives; British would not have substantial direct effects Aerospace Model BAe 146 Series on the States, on the relationship repair on the unsafe condition addressed by this AD; and, if the unsafe condition has not Airplanes and Model Avro 146±RJ between the national government and Series Airplanes the States, or on the distribution of been eliminated, the request should include specific proposed actions to address it. power and responsibilities among the AGENCY: Federal Aviation Compliance: Required as indicated, unless various levels of government. Therefore, accomplished previously. Administration, DOT. in accordance with Executive Order To prevent an impact overload and ACTION: Notice of proposed rulemaking 12612, it is determined that this consequent cracking of the subject parts, (NPRM). proposal would not have sufficient which could result in reduced structural federalism implications to warrant the integrity of the rudder horn assembly or loss SUMMARY: This document proposes the preparation of a Federalism Assessment. of rudder control, and, consequently, lead to adoption of a new airworthiness For the reasons discussed above, I reduced controllability of the airplane, directive (AD) that is applicable to certify that this proposed regulation (1) accomplish the following: certain British Aerospace Model BAe is not a ‘‘significant regulatory action’’ (a) Within 18 months after the effective 146 series airplanes and Model Avro under Executive Order 12866; (2) is not date of this AD, accomplish paragraph (a)(1) 146–RJ series airplanes. This proposal a ‘‘significant rule’’ under the DOT and (a)(2) of this AD, as applicable, in would require inspections to detect Regulatory Policies and Procedures (44 accordance with Fokker Service Bulletin leakage of hydraulic fluid from the lock FR 11034, February 26, 1979); and (3) if F27/27–131, Revision 1, dated June 15, 1994. jack assemblies of the main landing gear promulgated, will not have a significant (1) For all airplanes: Replace the rudder (MLG), and eventual replacement of economic impact, positive or negative, horn assembly, having part number (P/N) those assemblies with new or on a substantial number of small entities 3401–042–901 or 3401–042–401, with a new serviceable assemblies. This proposal is under the criteria of the Regulatory rudder horn assembly, having P/N F3402– prompted by reports of leakage of Flexibility Act. A copy of the draft 070–407, in accordance with Part 1 of the hydraulic fluid from lock jack regulatory evaluation prepared for this Accomplishment Instructions of the service assemblies due to a manufacturing action is contained in the Rules Docket. bulletin. forging defect that extends through the A copy of it may be obtained by (2) For airplanes having serial numbers wall of the lock jack assembly. The contacting the Rules Docket at the 10102, and 10105 through 10165 inclusive: actions specified by the proposed AD location provided under the caption Replace the rudder control rod, having P/N are intended to prevent leakage of 5233–018–xxx, with a new rudder control ADDRESSES. hydraulic fluid from the lock jack rod, having P/N F8507–052–403, in assemblies of the MLG, which, in List of Subjects in 14 CFR Part 39 accordance with Part 2 of the conjunction with a hot brake, could Air transportation, Aircraft, Aviation Accomplishment Instructions of the service bulletin. cause a fire in the MLG bay. safety, Safety. (b) An alternative method of compliance or DATES: Comments must be received by The Proposed Amendment adjustment of the compliance time that October 7, 1996. provides an acceptable level of safety may be ADDRESSES: Submit comments in Accordingly, pursuant to the used if approved by the Manager, authority delegated to me by the triplicate to the Federal Aviation Standardization Branch, ANM–113, FAA, Administration (FAA), Transport Administrator, the Federal Aviation Transport Airplane Directorate. Operators Administration proposes to amend part Airplane Directorate, ANM–103, shall submit their requests through an Attention: Rules Docket No. 96–NM– 39 of the Federal Aviation Regulations appropriate FAA Principal Maintenance 48–AD, 1601 Lind Avenue, SW., (14 CFR part 39) as follows: Inspector, who may add comments and then send it to the Manager, Standardization Renton, Washington 98055–4056. PART 39ÐAIRWORTHINESS Branch, ANM–113. Comments may be inspected at this DIRECTIVES location between 9:00 a.m. and 3:00 Note 2: Information concerning the p.m., Monday through Friday, except existence of approved alternative methods of 1. The authority citation for part 39 Federal holidays. continues to read as follows: compliance with this AD, if any, may be obtained from the Standardization Branch, The service information referenced in Authority: 49 U.S.C. 106(g), 40113, 44701. ANM–113. the proposed rule may be obtained from British Aerospace Holding, Inc., Avro § 39.13 [Amended] (c) Special flight permits may be issued in accordance with sections 21.197 and 21.199 International Aerospace Division, P.O. 2. Section 39.13 is amended by of the Federal Aviation Regulations (14 CFR Box 16039, Dulles International Airport, adding the following new airworthiness 21.197 and 21.199) to operate the airplane to Washington, DC 20041–6039. This directive: a location where the requirements of this AD information may be examined at the Fokker: Docket 96–NM–80–AD. can be accomplished. FAA, Transport Airplane Directorate, Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44007

1601 Lind Avenue, SW., Renton, defective material in the bodies of the States, this AD is being issued to Washington. lock jack assemblies. This defect prevent leakage of hydraulic fluid from FOR FURTHER INFORMATION CONTACT: Tim extends through the wall of the lock jack the lock jack assemblies of the main Backman, Aerospace Engineer, assembly, and allows the lock jack landing gear (MLG), which, in Standardization Branch, ANM–113, assembly to leak hydraulic fluid. The conjunction with a hot brake, could FAA, Transport Airplane Directorate, discrepant lock jack assemblies are cause a fire in the MLG bay. This AD 1601 Lind Avenue, SW., Renton, identifiable by serial number. Hydraulic would require an inspection to identify Washington 98055–4056; telephone fluid leaking from the lock jack affected lock jack assemblies by serial (206) 227–2797; fax (206) 227–1149. assembly, occurring concurrently with a number. This AD also would require hot brake, could result in a fire in the repetitive inspections of certain lock SUPPLEMENTARY INFORMATION: MLG bay. jack assemblies to detect leakage of Comments Invited The lock jack assemblies of the MLG hydraulic fluid from the lock jack installed on British Aerospace Model assemblies, and, if leakage is detected, Interested persons are invited to BAe 146 series airplanes are identical to replacement of the lock jack assemblies participate in the making of the those installed on British Aerospace with new or serviceable assemblies. proposed rule by submitting such Model Avro 146–RJ series airplanes; This AD also would require eventual written data, views, or arguments as therefore, both of these models may be replacement of the lock jack assemblies they may desire. Communications shall subject to this same unsafe condition. with new or serviceable assemblies. The identify the Rules Docket number and actions would be required to be be submitted in triplicate to the address Explanation of Relevant Service accomplished in accordance with the specified above. All communications Information service bulletin described previously. received on or before the closing date British Aerospace has issued for comments, specified above, will be Inspection Service Bulletin SB 32–103, Cost Impact considered before taking action on the Revision 1, dated February 22, 1991. The FAA estimates that 52 airplanes proposed rule. The proposals contained This service bulletin describes of U.S. registry would be affected by this in this notice may be changed in light procedures for identifying affected lock proposed AD. of the comments received. jack assemblies by serial number, and To accomplish the proposed Comments are specifically invited on provides procedures to repetitively inspections would take approximately 1 the overall regulatory, economic, inspect certain of those assemblies to work hour per airplane, per inspection, environmental, and energy aspects of detect leakage of hydraulic fluid, and at an average labor rate of $60 per work the proposed rule. All comments replace the assemblies with a new or hour. Based on these figures, the cost submitted will be available, both before serviceable assembly, if necessary. The impact of the proposed inspections on and after the closing date for comments, service bulletin also describes U.S. operators is estimated to be $3,120, in the Rules Docket for examination by procedures to eventually replace the or $60 per airplane, per inspection interested persons. A report lock jack assemblies with a new or cycle. summarizing each FAA-public contact serviceable assembly that does not To accomplish the proposed concerned with the substance of this require accomplishment of the replacement of the lock jack assembly proposal will be filed in the Rules inspections specified in this service would take approximately 1 work hour Docket. bulletin. The CAA classified those per airplane, at an average labor rate of Commenters wishing the FAA to procedures in this service bulletin as $60 per work hour. Required parts acknowledge receipt of their comments mandatory in order to assure the would be provided by the manufacturer submitted in response to this notice continued airworthiness of these at no cost to the operators. Based on must submit a self-addressed, stamped airplanes in the United Kingdom. these figures, the cost impact of the postcard on which the following proposed replacement on U.S. operators FAA’s Conclusions statement is made: ‘‘Comments to is estimated to be $3,120, or $60 per Docket Number 96–NM–48–AD.’’ The These airplane models are airplane. postcard will be date stamped and manufactured in the United Kingdom The cost impact figures discussed returned to the commenter. and are type certificated for operation in above are based on assumptions that no the United States under the provisions Availability of NPRMs operator has yet accomplished any of of section 21.29 of the Federal Aviation the proposed requirements of this AD Any person may obtain a copy of this Regulations (14 CFR 21.29) and the action, and that no operator would NPRM by submitting a request to the applicable bilateral airworthiness accomplish those actions in the future if FAA, Transport Airplane Directorate, agreement. Pursuant to this bilateral this AD were not adopted. ANM–103, Attention: Rules Docket No. airworthiness agreement, the CAA has 96–NM–48–AD, 1601 Lind Avenue, kept the FAA informed of the situation Regulatory Impact SW., Renton, Washington 98055–4056. described above. The FAA has The regulations proposed herein would not have substantial direct effects Discussion examined the findings of the CAA, reviewed all available information, and on the States, on the relationship The Civil Aviation Authority (CAA), determined that AD action is necessary between the national government and which is the airworthiness authority for for products of this type design that are the States, or on the distribution of the United Kingdom, recently notified certificated for operation in the United power and responsibilities among the the FAA that an unsafe condition may States. various levels of government. Therefore, exist on certain British Aerospace in accordance with Executive Order Model BAe 146 series airplanes and Explanation of Requirements of the 12612, it is determined that this Model Avro 146–RJ series airplanes. Rule proposal would not have sufficient The CAA advises that a batch of lock Since an unsafe condition has been federalism implications to warrant the jack assemblies of the main landing gear identified that is likely to exist or preparation of a Federalism Assessment. (MLG) has been manufactured with a develop on other airplanes of the same For the reasons discussed above, I forging defect as a result of the use of type design registered in the United certify that this proposed regulation (1) 44008 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules is not a ‘‘significant regulatory action’’ To prevent leakage of hydraulic fluid from Issued in Renton, Washington, on August under Executive Order 12866; (2) is not the lock jack assemblies of the main landing 20, 1996. a ‘‘significant rule’’ under the DOT gear (MLG), which, in conjunction with a hot Darrell M. Pederson, Regulatory Policies and Procedures (44 brake, could cause a fire in the MLG bay; Acting Manager, Transport Airplane FR 11034, February 26, 1979); and (3) if accomplish the following: Directorate, Aircraft Certification Service. promulgated, will not have a significant (a) Within 30 days after the effective date [FR Doc. 96–21744 Filed 8–26–96; 8:45 am] of this AD, verify the serial number of all economic impact, positive or negative, BILLING CODE 4910±13±U on a substantial number of small entities lock jack assemblies, part number 104275001, of the MLG. under the criteria of the Regulatory Flexibility Act. A copy of the draft Note 2: Verification may be accomplished 14 CFR Part 71 by a review of appropriate records. regulatory evaluation prepared for this [Airspace Docket No. 96±AWP±19] action is contained in the Rules Docket. (1) If no lock jack assembly has a serial A copy of it may be obtained by number as listed in British Aerospace Proposed Revocation of Class D Inspection Service Bulletin SB 32–103, contacting the Rules Docket at the Airspace; Alameda, CA location provided under the caption Revision 1, dated February 22, 1991, no further action is required by this paragraph. ADDRESSES. AGENCY: Federal Aviation (2) If any lock jack assembly has a serial Administration (FAA), DOT. number as listed in British Aerospace List of Subjects in 14 CFR Part 39 ACTION: Notice of proposed rulemaking. Inspection Service Bulletin SB 32–103, Air transportation, Aircraft, Aviation Revision 1, dated February 22, 1991, prior to safety, Safety. SUMMARY: This notice proposes to further flight, perform a visual inspection to revoke the Class D airspace area at The Proposed Amendment detect any leakage of hydraulic fluid from the Alameda, CA. The base closure of lock jack assembly, in accordance with the Alameda Naval Air Station (NAS) has Accordingly, pursuant to the service bulletin. authority delegated to me by the made this action necessary. The (i) If no leakage of hydraulic fluid is intended effect of this action is to Administrator, the Federal Aviation detected, thereafter, repeat the inspection at revoke controlled airspace since the Administration proposes to amend part intervals not to exceed 30 days, until the 39 of the Federal Aviation Regulations requirements of paragraph (b) of this AD are purpose and requirements for the (14 CFR part 39) as follows: accomplished. surface area no longer exist at Alameda (ii) If any leakage of hydraulic fluid is NAS (Nimitz Field), CA. PART 39ÐAIRWORTHINESS detected, prior to further flight, replace the DATES: Comments must be received on DIRECTIVES lock jack assembly with a new or serviceable or before September 20, 1996. unit that does not have one of those serial 1. The authority citation for part 39 ADDRESSES: Send comments on the numbers, in accordance with the service continues to read as follows: proposal in triplicate to: Federal bulletin. Aviation Administration, Attn: Authority: 49 USC 106(g), 40113, 44701. (b) Within 6 months after the effective date Manager, Operations Branch, AWP–530, of this AD, replace any lock jack assembly Docket No. 96–AWP–19, Air Traffic § 39.13 [Amended] having a serial number listed in British 2. Section 39.13 is amended by Division, P.O. Box 92007, Worldway Aerospace Inspection Service Bulletin SB Postal Center, Los Angeles, California, adding the following new airworthiness 32–103, Revision 1, dated February 22, 1991, 90009. directive: with a new or serviceable assembly that does The official docket may be examined not have one of those serial numbers, in British Aerospace Regional Aircraft Limited, in the Office of the Assistant Chief Avro International Aerospace Division accordance with the service bulletin. (c) As of the effective date of this AD, no Counsel, Western Pacific Region, (formerly British Aerospace, plc; British Federal Aviation Administration, Room Aerospace Commercial Aircraft Limited): person shall install a lock jack assembly, Docket 96–NM–48–AD. having any serial number listed in British 6007, 15000 Aviation Boulevard, Lawndale, California, 90261. Applicability: Model BAe 146 series Aerospace Inspection Service Bulletin SB airplanes and Model Avro 146–RJ series 32–103, Revision 1, dated February 22, 1991, An informal docket may also be airplanes having lock jack assemblies of the on any airplane. examined during normal business at the main landing gear as listed in British (d) An alternative method of compliance or Office of the Manager, Operations Aerospace Inspection Service Bulletin SB adjustment of the compliance time that Branch, Air Traffic Division at the above 32–103, Revision 1, dated February 22, 1991; provides an acceptable level of safety may be address. certificated in any category. used if approved by the Manager, FOR FURTHER INFORMATION CONTACT: Note 1: This AD applies to each airplane Standardization Branch, ANM–113, FAA, William Buck, Airspace Specialist, identified in the preceding applicability Transport Airplane Directorate. Operators Operations Branch, AWP–530, Air provision, regardless of whether it has been shall submit their requests through an Traffic Division, Western-Pacific otherwise modified, altered, or repaired in appropriate FAA Principal Maintenance Region, Federal Aviation the area subject to the requirements of this Inspector, who may add comments and then Administration, 15000 Aviation AD. For airplanes that have been modified, send it to the Manager, Standardization altered, or repaired so that the performance Branch, ANM–113. Boulevard, Lawndale, California, 90261, telephone (310) 725–6556. of the requirements of this AD is affected, the Note 3: Information concerning the owner/operator must request approval for an existence of approved alternative methods of SUPPLEMENTARY INFORMATION: alternative method of compliance in compliance with this AD, if any, may be accordance with paragraph (d) of this AD. Comments Invited The request should include an assessment of obtained from the Standardization Branch, the effect of the modification, alteration, or ANM–113. Interested parties are invited to repair on the unsafe condition addressed by (e) Special flight permits may be issued in participate in this proposed rulemaking this AD; and, if the unsafe condition has not accordance with sections 21.197 and 21.199 by submitting such written data, views, been eliminated, the request should include of the Federal Aviation Regulations (14 CFR or arguments as they may desire. specific proposed actions to address it. 21.197 and 21.199) to operate the airplane to Comments that provide the factual basis Compliance: Required as indicated, unless a location where the requirements of this AD supporting the views and suggestions accomplished previously. can be accomplished. presented are particularly helpful in Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44009 developing reasoned regulatory listed in this document would be COMMODITY FUTURES TRADING decisions on the proposal. Comments removed subsequently in this Order. COMMISSION are specifically invited on the overall The FAA has determined that this 17 CFR Part 4 regulatory, aeronautical, economic, proposed regulation only involves an environmental, and energy-related established body of technical aspects of the proposal. Use of Electronic Media by Commodity regulations for which frequent and Communications should identify the Pool Operators and Commodity airspace docket number and be routine amendments are necessary to Trading Advisors submitted in triplicate to the address keep them operationally current. Therefore, this proposed regulation—(1) AGENCY: Commodity Futures Trading listed above. Commenters wishing the Commission. FAA to acknowledge receipt of their is not a ‘‘significant regulatory action’’ ACTION: comments on this notice must submit under Executive Order 12866; (2) is not Proposed rule. a ‘‘significant rule’’ under DOT with the comments a self-addressed, SUMMARY: The Commodity Futures stamped postcard on which the Regulatory Policies and Procedures (44 Trading Commission (the following statement is made: FR 10034; February 26, 1979); and (3) ‘‘Commission’’) today is proposing ‘‘Comments to Airspace Docket No. 96– does not warrant preparation of a technical changes to its rules requiring AWP–19.’’ The postcard will be date/ Regulatory Evaluation as the anticipated filing and distribution of Disclosure time stamped and returned to the impact is so minimal. Since this is a Documents by commodity pool commenter. All communications routine matter that will only affect air operators (‘‘CPOs’’) and commodity received on or before the specified traffic procedures and air navigation, it trading advisors (‘‘CTAs’’). These closing date for comments will be is certified that this proposed rule proposals are intended to clarify certain considered before taking action on the would not have a significant economic rule provisions that are premised upon proposed rule. The proposal contained impact on a substantial number of small the filing and distribution of paper in this notice may be changed in light entities under the criteria of the documents, in light of the of comments received. All comments Regulatory Flexibility Act. interpretations set forth in a recent submitted will be available for interpretative release ‘‘Interpretation examination in the Operations Branch, List of Subjects in 14 CFR Part 71 Regarding Use of Electronic Media by Air Traffic Division, at 15000 Aviation Commodity Pool Operators and Boulevard, Lawndale, California 90261, Airspace, Incorporation by reference, Commodity Trading Advisors’’ (61 FR both before and after the closing date for Navigation (air). 42146 (August 14, 1996)) outlining the comments. A report summarizing each The Proposed Amendment Commission’s views concerning the use substantive public contact with FAA of electronic media by CPOs and CTAs. personnel concerned with this In consideration of the foregoing, the DATES: Comments must be received on rulemaking will be filed in the docket. Federal Aviation Administration or before October 28, 1996. Availability of NPRM proposes to amend 14 CFR part 71 as follows: ADDRESSES: Comments should be Any person may obtain a copy of this submitted to Jean A. Webb, Secretary of Notice of Proposed Rulemaking (NPRM) PART 71Ð[AMENDED] the Commission, Commodity Futures by submitting a request to the Federal Trading Commission, 1155 21st Street, Aviation Administration, Operations 1. The authority citation for 14 CFR N.W., Washington, D.C. 20581. In Branch, P.O. Box 92007, Worldway part 71 continues to read as follows: addition, comments may be sent by Postal Center, Los Angeles, California facsimile transmission to FAX number 90009. Communications must identify Authority: 49 U.S.C. 106(g), 40103, 40113, (202) 418–5521, or by electronic mail to the notice number of this NPRM. 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– [email protected]. 1963 Comp., p. 389; 14 CFR 11.69. Persons interested in being placed on a FOR FURTHER INFORMATION CONTACT: mailing list for future NPRM’s should § 71.1 [Amended] Susan C. Ervin, Deputy Director/Chief also request a copy of Advisory Circular Counsel, or Christopher W. Cummings, No. 11–2A, which describes the 2. The incorporation by reference in Attorney/Advisor, or Gary L. application procedures. 14 CFR 71.1 of the Federal Aviation Goldsholle, Attorney/Advisor, or Tina Administration Order 7400.9C, Airspace The Proposal Paraskevas Shea, Attorney/Advisor, Designations and Reporting Points, Division of Trading and Markets, The FAA is considering an dated August 17, 1995, and effective amendment to part 71 of the Federal Commodity Futures Trading September 16, 1995, is amended as Commission, 1155 21st Street, N.W., Aviation Regulations (14 CFR part 71) follows: revoking the Class D airspace area at Washington, D.C. 20581. Telephone Alameda, CA. The base closure of Paragraph 5000 Class D airspace. number: (202) 418–5450. FAX number: (202) 418–5536. Alameda Naval Air Station (NAS) has * * * * * made this action necessary. The SUPPLEMENTARY INFORMATION: In order to intended effect of this action is to AWP CA D Alameda NAS, CA [Removed] clarify certain rules in light of the revoke controlled airspace since the * * * * * interpretations relating to electronic purpose and requirements for the Issued in Los Angeles, California, on distribution of information under the surface area no longer exist at Alameda August 12, 1996. Commodity Exchange Act (the ‘‘Act’’) 1 NAS (Nimitz Field), CA. Class D James H. Snow, and the Commission’s regulations promulgated under the Act,2 published airspace designations are published in Acting Manager, Air Traffic Division, paragraph 5000 of FAA Order 7400.9C Western-Pacific Region. dated August 17, 1995, and effective 1 7 U.S.C. 1 et seq. (1994). [FR Doc. 96–21855 Filed 8–26–96; 8:45 am] 2 September 16, 1995, which is Commission rules are found at 17 CFR Ch. I BILLING CODE 4910±13±M (1996). The rules governing CPO and CTA incorporated by reference in 14 CFR disclosure, reporting and recordkeeping 71.1. The Class D airspace designations requirements are found at 17 CFR part 4 (1996). 44010 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules in a recent interpretative release (61 FR material in one version of the document Interpretative Release, audio, video, 42146 (August 14, 1996)) (the may not be readily included in the other graphic or other enhancements must be ‘‘Interpretative Release’’), the version. used in a manner that is consistent with Commission is proposing minor The Commission believes that the Commission requirements as to the technical amendments to the following same critical information can be order of presentation of information and rules: 4.1; 4.2; 4.21; 4.26; 4.31; and 4.36. presented in electronic communication the relative prominence of various types The proposed rule changes are intended as in paper form. However, presentation of information. Thus, if video or audio to facilitate, among other things, a pilot adjustments may be required in the material, for example, is used to convey program for electronic filing of context of electronic media to assure content that would constitute Disclosure Documents with the that all versions of a CPO or CTA supplemental information under Rule Commission by CPOs and CTAs. Disclosure Document convey the same 4.24(v) or 4.34(n) (e.g., a video information with equivalent emphasis, I. Proposed Amendments comparison of trading program rates of whether or not identical presentation of return to the movement of the Standard In the Interpretative Release, the the information is possible. Proposed & Poor’s 500 Index over time, or an Commission states its views with new paragraph (c) to Rule 4.1 states that audio discussion of modern portfolio respect to the use of electronic media by in lieu of the paper-based formatting theory), such material must be CPOs and CTAs to disseminate certain requirements of Rule 4.1(a), presented after all required information, information in compliance with the Act electronically distributed documents and it must not overwhelm or obscure and the Commission’s rules. Part 4 of must present all required information in required information. the Commission’s rules sets forth the a format ‘‘readily communicated’’ to the Comment is solicited as to whether disclosure and filing requirements for recipient. Electronically delivered more specific requirements as to CPOs and CTAs. The rules that are the information is readily communicated for formatting of electronically distributed subject of the proposals set forth herein purposes of Part 4 if it is accessible in documents are appropriate and, if so, as relate to the required filing with the a single ‘‘package’’ or by a single data to what specific standards should be Commission and distribution to current retrieval process, without the need to established. For example, should and prospective pool participants and download and assemble multiple files, electronically-transmitted documents be managed account clients of Disclosure and preferably without the need to use required to retain page breaks and page Documents by CPOs and CTAs. These special ‘‘viewer’’ software. Moreover, an numbers corresponding to paper-based rules were adopted on the assumption electronically transmitted document documents? that Disclosure Documents would be must be organized in substantially the filed and distributed in paper ‘‘hard same manner as a paper document with B. Filing copy’’ form. The Commission believes respect to the order of presentation and Rule 4.2 states that material required that it is appropriate to modify these relative prominence of information. to be filed with the Commission is rules in light of the views set forth in Where a table of contents is required, considered filed when received at the the Interpretative Release, in order to the electronic document should retain Commission’s postal address specified clarify that the Commission’s rules do page numbers or employ an in Rule 4.2(a). In order to facilitate not limit a CPO’s or a CTA’s means of equivalently user-friendly cross electronic filing of Disclosure document delivery and filing to paper reference or indexing tool. The Documents, the proposed amendment to documents, to the exclusion of Commission requests comment as to Rule 4.2(a) states that such documents electronic media, and to facilitate the whether greater specificity should be may be filed at the Commission’s implementation of a pilot program for provided in the rule as to the meaning electronic mail address designated for electronic filing of Disclosure of ‘‘readily communicated’’ or whether that purpose.3 Rule 4.2 is otherwise Documents, as more fully described in this type of simple performance unchanged. the Interpretative Release. standard is preferable. Currently, Rules 4.26(d) and 4.36(d) Where information is required to be A. General formatting require CPOs and CTAs to file two ‘‘prominently’’ disclosed, electronically copies of each Disclosure Document and Commission Rule 4.1(a) requires that distributed documents must present each amendment to a Disclosure each document distributed pursuant to such information in a manner Document with the Commission. Where Part 4 must be clear and legible, reasonably calculated to draw the a document is filed electronically, this paginated and fastened in a secure recipient’s attention to it and must requirement for two copies is manner. These requirements presume accord it greater emphasis than other unnecessary and potentially confusing. that the document is composed of one portions of the text. For example, Proposed amendments to Rules 4.26(d) or more sheets of paper. Their underlining that appears as such and 4.36(d) would clarify that only one application to a document that is onscreen, color changes that contrast copy of the Disclosure Document and of transmitted electronically, and that with the surrounding text without each amendment is required to be filed exists only as data stored on electronic decreasing legibility, and pictorial if the registrant elects to file media, may be subject to question. characters designed to call attention electronically with the Commission. Similarly, Rule 4.1(b) states that (e.g., an arrow or a pointing hand), may information required to be serve to highlight portions of text C. Acknowledgments ‘‘prominently’’ disclosed, as provided in sufficiently to give the desired level of Rule 4.21(b) for CPOs and Rule various Part 4 rules, must be displayed prominence. Finally, if graphic, image 4.31(b) for CTAs currently provide that in boldface capital letters. The increased or audio material is included in one a CPO may not accept or receive funds, emphasis attained by boldface capital version of a document but not in the securities or other property from a letters in a paper format may be lost on version filed with the Commission, prospective pool participant, and a CTA a computer screen, where the only whether for technological reasons or may not enter into an agreement to difference may be an insignificant color otherwise, the filed version of the guide or direct a prospective client’s change. Further, paper and electronic document must contain a fair and versions of a particular document may accurate description or transcript of the 3 Currently, this address is tm-pilot- differ because graphic, pictorial or audio omitted material. As noted in the [email protected]. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44011 account, unless the CPO or CTA first CPOs and CTAs for document filing or CTA who believes that these rules obtains a signed and dated delivery of information is optional, and would have a significant impact on its acknowledgement stating that a registrants can weigh for themselves the operations. Disclosure Document has been received relative costs and benefits of using B. Paperwork Reduction Act by the prospective participant or client. electronic media in specific As discussed in the Interpretative circumstances. Nevertheless, The Paperwork Reduction Act of 1980 Release, the Commission believes that commenters are invited to identify any (Act), 44 U.S.C. 3501 et. seq., imposes adequate evidence of receipt of a costs or benefits associated with the certain requirements on federal agencies Disclosure Document may be obtained proposed amendments that the (including the Commission) in in ways other than a manually signed Commission may have overlooked. connection with their conducting or paper receipt. Accordingly, the Commenters are also invited to describe sponsoring any collection of proposed amendments to Rules 4.21(b) any additional actions that they believe information as defined by the and 4.31(b) will permit registrants to that the Commission should take in Paperwork Reduction Act. While these obtain acknowledgments by such connection with the proposed proposed amendments have no burden, electronic means as the Commission amendments to reduce compliance the group of rules (3038–0005) of which may approve, in each case subject to the burdens and to maximize the benefits of this is a part has the following burden: requirement that an acknowledgment be Disclosure Document delivery while Average Burden Hours per Response: received before a CPO accepts property minimizing unnecessary costs. 124.75. from a prospective pool participant or a Number of Respondents: 4,654. CTA contracts to direct or guide a IV. Related Matters Frequency of Response: on occasion. prospective client’s account. At the A. Regulatory Flexibility Act Persons wishing to comment on the present time, the only approved information which would be required alternative to a signed paper receipt is The Regulatory Flexibility Act by this proposed/amended rule should the use of a personal identification or (‘‘RFA’’), 5 U.S.C. 601–611 (1988), contact Jeff Hill, Office of Management ‘‘PIN’’ number in lieu of the manual requires that agencies, in proposing and Budget, Room 3228, NEOB, signature, as described in the rules, consider the impact of those rules Washington, DC 20503, (202) 395–7340. Interpretative Release. CPOs and CTAs on small businesses. The rule Copies of the information collection remain obligated under Rules 4.23(a)(3) amendments discussed herein would submission to OMB are available from and 4.33(a)(2), respectively, to retain all affect registered CPOs and CTAs. The Joe F. Mink, CFTC Clearance Officer, acknowledgments, and the proposed Commission has previously established 1155 21st Street NW, Washington, DC amendments permit retention in hard certain definitions of ‘‘small entities’’ to 20581, (202) 418–5170. copy form or by other Commission- be used by the Commission in List of Subjects in 17 CFR Part 4 approved means. evaluating the impact of its rules on Comment is sought as to whether the such entities in accordance with the Advertising, Commodity futures, Commission should specify in the rules RFA.4 The Commission previously Consumer protection, Reporting and the acceptable means by which determined that registered CPOs are not recordkeeping requirements. registrants can establish receipt of small entities for the purpose of the In consideration of the foregoing, and Disclosure Documents, or whether a RFA.5 With respect to CTAs, the pursuant to the authority contained in more flexible approach is advisable. Commission has stated that it would the Commodity Exchange Act, and in evaluate within the context of a II. Solicitation of Comments particular, sections 2(a)(1), 4b, 4c, 4l, particular rule proposal whether all or 4m, 4n, 4o, and 8a, 7 U.S.C. 2, 6b, 6c, Any interested persons wishing to some affected CTAs would be 6l, 6m, 6n, 6o, and 12a, the Commission submit written comments relating to the considered to be small entities and, if hereby proposes to amend Chapter I of rule proposals, as explained above, are so, the economic impact on them of any Title 17 of the Code of Federal invited to do so by submitting them by rule.6 Regulations as follows: postal mail to Jean A. Webb, Secretary The amendments proposed herein do of the Commission, Commodity Futures not impose any new burdens upon PART 4ÐCOMMODITY POOL Trading Commission, 1155 21st Street, CPOs or CTAs. The proposed OPERATORS AND COMMODITY N.W., Washington, D.C. 20581. amendments facilitate the use of TRADING ADVISORS Comments may be sent by facsimile alternative media to meet existing transmission to FAX number (202) 418– requirements, and they clarify the Subpart AÐGeneral Provisions, 5521, or by electronic mail to application of existing regulations to the Definitions and Exemptions [email protected]. use of such media. As a result, the Commission anticipates that adoption of 1. The authority citation for part 4 III. Cost-Benefit Analysis the proposed amendments will in many continues to read as follows: Although the Commission anticipates cases reduce the burden of compliance Authority: 7 U.S.C. 1a, 2, 4, 6b, 6c, 6l, 6m, that increased use of electronic media by CPOs and CTAs. Accordingly, 6n, 6o, 12a and 23. by registrants will benefit market pursuant to Rule 3(a) of the RFA (5 2. Section 4.1 is proposed to be participants by making disclosure more U.S.C. 605(b)), the Acting Chairman, on amended by adding new paragraphs (c) efficient and expeditious, it does not behalf of the Commission, certifies that and (d) to read as follows: expect the rule amendments proposed these proposed amendments would not herein, in and of themselves, to result in have a significant economic impact on § 4.1 Requirements as to form. substantial economic costs or benefits. a substantial number of small entities. (a) * * * The proposed amendments are intended The Commission nonetheless invites (b) * * * to clarify the application of existing comment from any registered CPO or (c) Where a document is distributed requirements under the Act and through an electronic medium: Commission rules in the context of 4 47 FR 18618–18621 (April 30, 1982). (1) The requirements of paragraph (a) newly developed information 5 47 FR 18619–18620. of this section shall mean that all technology. Use of electronic media by 6 47 FR 18618, 18620. required information must be presented 44012 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules in a format readily communicated to the § 4.21 Required delivery of pool § 4.31 Required delivery of Disclosure recipient. For purposes of this Disclosure Document. Document to prospective clients. paragraph (c), information is readily (a) * * * (a) * * * communicated to the recipient if it is (b) The commodity pool operator may accessible as a single file by means of not accept or receive funds, securities or (b) The commodity trading advisor commonly available hardware and other property from a prospective may not enter into an agreement with a software, and if the electronically participant unless the pool operator first prospective client to direct the client’s delivered document is organized in receives from the prospective commodity interest account or to guide substantially the same manner as would participant an acknowledgment signed the client’s commodity interest trading be required for a paper document with and dated by the prospective participant unless the trading advisor first receives respect to the order of presentation and stating that the prospective participant from the prospective client an the relative prominence of information. received a Disclosure Document for the acknowledgment signed and dated by Where a table of contents is required, pool. Where a Disclosure Document is the prospective client stating that the the electronic document must either delivered to a prospective pool client received a Disclosure Document include page numbers in the text or participant by electronic means, in lieu for the trading program pursuant to employ a substantially equivalent cross- of a manually signed and dated which the trading advisor will direct his reference or indexing method or tool; acknowledgment the pool operator may account or will guide his trading. Where establish receipt by electronic means a Disclosure Document is delivered to a (2) The requirements of paragraph (b) approved by the Commission, Provided, prospective client by electronic means, of this section shall mean that such however, That the requirement of in lieu of a manually signed and dated information must be presented in a § 4.23(a)(3) to retain the acknowledgment the trading advisor manner reasonably calculated to draw acknowledgment specified in this may establish receipt by electronic the recipient’s attention to the paragraph (b) applies equally to such means approved by the Commission, information and accord it greater substitute evidence of receipt, which Provided, however, That the prominence than the surrounding text; must be retained either in hard copy requirement of § 4.33(a)(2) to retain the and form or in another form approved by the acknowledgment specified in this (3) A complete paper version of the Commission. paragraph (b) applies equally to such document must be provided to the 5. Section 4.26, paragraph (d) is substitute evidence of receipt, which recipient upon request. proposed to be revised to read as must be retained either in hard copy (d) If graphic, image or audio material follows: form or in another form approved by the Commission. is included in a document delivered to § 4.26 Use, amendment and filing of a prospective or existing client or pool Disclosure Document. 7. Section 4.36, paragraph (d) is participant, and such material cannot be (a) * * * proposed to be revised to read as reproduced in an electronic filing, a fair (b) * * * follows: and accurate narrative description, (c) * * * tabular representation or transcript of § 4.36 Use, amendment and filing of (d) Except as provided by § 4.8: Disclosure Document. the omitted material must be included (1) The commodity pool operator in the filed version of the document. must file with the Commission two (a) * * * Inclusion of such material in a copies of the Disclosure Document for (b) * * * Disclosure Document shall be subject to each pool that it operates or that it the requirements of § 4.24(v) in the case intends to operate not less than 21 (c) * * * of pool Disclosure Documents, and calendar days prior to the date the pool (d)(1) The trading advisor must file § 4.34(n) in the case of commodity operator first intends to deliver the with the Commission two copies of the trading advisor Disclosure Documents. Document to a prospective participant Disclosure Document for each trading 3. Section 4.2 paragraph (a) is in the pool; Provided, however, that a program that it offers or that it intends proposed to be revised to read as pool operator electing to file to offer not less than 21 calendar days follows: electronically pursuant to § 4.2(a) must prior to the date the trading advisor first file a single copy of the Disclosure intends to deliver the Document to a § 4.2 Requirements as to filing. Document; and prospective client in the trading (a) All material filed with the (2) The commodity pool operator program; Provided, however, that a Commission under this part 4 must be must file with the Commission two trading advisor electing to file filed with the Commission at its copies of all subsequent amendments to electronically pursuant to § 4.2(a) must Washington, D.C. office (Att: Special the Disclosure Document for each pool file a single copy of the Disclosure Counsel, Front Office Audit Unit, that it operates or that it intends to Document. Division of Trading and Markets, operate within 21 calendar days of the (2) The commodity trading advisor C.F.T.C., 1155 21st Street N.W., date upon which the pool operator first must file with the Commission two Washington, D.C. 20581). Disclosure knows or has reason to know of the copies of all subsequent amendments to Documents may be filed at an electronic defect requiring the amendment; the Disclosure Document for each mail address for the Commission, as Provided, however, that a pool operator trading program that it offers or that it designated by the Commission. electing to file electronically pursuant to intends to offer within 21 calendar days § 4.2(a) must file a single copy of each * * * * * of the date upon which the trading such amendment. advisor first knows or has reason to Subpart BÐCommodity Pool Subpart CÐCommodity Trading know of the defect requiring the Operators Advisors amendment; Provided, however, that a trading advisor electing to file 4. Section 4.21, paragraph (b) is 6. Section 4.31, paragraph (b) is electronically pursuant to § 4.2(a) must proposed to be revised to read as proposed to be revised to read as file a single copy of each such follows: follows: amendment. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44013

Issued in Washington, D.C. on August 19, FDA received a request from a trade Medical Devices Act of 1990 (the 1996, by the Commission. association for an extension of the SMDA). Jean A. Webb, comment period on the agency’s June DATES: Written comments by November Secretary of the Commission. 12, 1996, proposed revocation of part 25, 1996. FDA proposes that any final [FR Doc. 96–21674 Filed 8–26–96; 8:45 am] 730 of FDA’s regulations (21 CFR part rule based on this proposal become final BILLING CODE 6351±01±P 730), on voluntary reporting of cosmetic 30 days after publication in the Federal product experiences. The trade Register. association requested more time so that ADDRESSES: Submit written comments DEPARTMENT OF HEALTH AND the proposed action could be considered to the Dockets Management Branch HUMAN SERVICES by the association’s board of directors. (HFA–305), Food and Drug After careful consideration, FDA has Administration, 12420 Parklawn Dr., Food and Drug Administration decided to extend the comment period rm. 1–23, Rockville, MD 20857. to October 10, 1996, to allow additional FOR FURTHER INFORMATION CONTACT: 21 CFR Part 730 time for the submission of comments on Janet L. Scudiero, Center for Devices whether it should revoke part 730. The [Docket No. 96N±0174] and Radiological Health (HFZ–410), extension is only for comments on this Food and Drug Administration, 9200 RIN 0910±AA69 aspect of the proposed rulemaking. Interested persons may, on or before Corporate Blvd., Rockville, MD 20850, Food and Cosmetic Labeling; October 10, 1996, submit to Dockets 301–594–1287. Revocation of Certain Regulations; Management Branch (address above) SUPPLEMENTARY INFORMATION: Opportunity for Public Comment; written comments regarding whether Table of Contents Extension of the Comment Period part 730 should be revoked. Two copies of any comments are to be submitted, I. Classification and Reclassification of AGENCY: Food and Drug Administration, except that individuals may submit one Devices Under the Medical Device HHS. copy. Comments are to be identified Amendments of 1976 ACTION: Proposed rule; extension of with the docket number found in II. Reclassification Under the Safe comment period. brackets in the heading of this Medical Devices Act of 1990 document. Received comments may be III. History of the Proceedings SUMMARY: The Food and Drug seen in the office above between 9 a.m. IV. Device Description Administration (FDA) is extending to and 4 p.m., Monday through Friday. V. Recommendation of the Panel October 10, 1996, the comment period VI. Summary of the Reasons for the on the proposal to revoke certain Dated: August 21, 1996. Recommendation cosmetic regulations that appear to be William B. Schultz, VII. Risks to Health obsolete. The proposed rule was Deputy Commissioner for Policy. VIII. Summary of Data Upon Which the published in the Federal Register of [FR Doc. 96–21818 Filed 8–26–96; 8:45 am] Recommendation is Based June 12, 1996 (61 FR 29708). The agency BILLING CODE 4160±01±F IX. FDA’s Tentative Findings is taking this action in response to a X. Environmental Impact request from a trade association. This XI. Analysis of Impacts extension of the comment period is 21 CFR Part 880 XII. Paperwork Reduction Act of 1995 intended to allow interested persons XIII. Request for Comments [Docket No. 85N±0285] additional time to submit comments to XIV. References FDA on the proposed revocation of Medical Devices; Reclassification of I. Classification and Reclassification of certain cosmetic regulations. the Infant Radiant Warmer Devices Under the Medical Device DATES: Written comments by October Amendments of 1976 10, 1996. AGENCY: Food and Drug Administration, Under section 513 of the Federal ADDRESSES: Submit written comments HHS. ACTION: Proposed rule. Food, Drug, and Cosmetic Act (the act) to the Dockets Management Branch (21 U.S.C. 360c), as established by the (HFA–305), Food and Drug SUMMARY: The Food and Drug amendments (Pub. L. 94–295) and Administration, 12420 Parklawn Dr., Administration (FDA) is proposing to amended by the SMDA (Pub. L. 101– rm. 1–23, Rockville, MD 20857. reclassify the infant radiant warmer 629), FDA must classify devices into FOR FURTHER INFORMATION CONTACT: from class III (premarket approval) into one of three regulatory classes: Class I, Corinne L. Howley, Center for Food class II (special controls) based on new class II, or class III. FDA’s classification Safety and Applied Nutrition (HFS–24), information regarding the device. The of a device is determined by the amount 200 C St. SW., Washington, DC 20204, infant radiant warmer is a device of regulation necessary to provide 202–205–4272. consisting of an infrared heating reasonable assurance of safety and SUPPLEMENTARY INFORMATION: In the element intended to maintain the effectiveness of a device. Except as Federal Register of June 12, 1996 (61 FR infant’s body temperature by means of provided in section 520(c) of the act (21 29708), FDA issued a proposed rule to radiant heat. This document U.S.C. 360j(c)), FDA may not use revoke certain regulations that appear to summarizes the basis for the agency’s confidential information concerning a be obsolete. These regulations were findings that sufficient valid scientific device’s safety and effectiveness as a identified by FDA as candidates for evidence is available to support basis for reclassification of the device revocation following a page-by-page reclassification of the infant radiant from class III into class II or class I. review of its regulations that the agency warmer and to establish special controls Under the original 1976 act, devices conducted in response to the to provide reasonable assurance of the were to be classified into class I (general Administration’s ‘‘Reinventing safety and effectiveness of the device. controls) if there was information Government’’ initiative. Interested This action implements the Medical showing that the general controls of the person were given until August 26, Device Amendments of 1976 (the act were sufficient to assure safety and 1996, to comment on the proposed rule. amendments) as amended by the Safe effectiveness; into class II (performance 44014 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules standards) if there was insufficient Reevaluation of the data previously the application of section 515(b) of the information showing that general before the agency is an appropriate basis act (21 U.S.C. 360e)(premarket approval controls themselves would ensure safety for subsequent regulatory action where requirement) be assigned to the infant and effectiveness, but there was the reevaluation is made in light of radiant warmer. sufficient information to establish a changes in ‘‘medical science.’’ (See In the Federal Register of October 21, performance standard that would Upjohn v. Finch, supra, 422 F.2d at 1980 (45 FR 69694), FDA published a provide such assurance; and into class 951.) However, regardless of whether final rule classifying the infant radiant III (premarket approval) if there was data before the agency are past or new warmer into class III (21 CFR 880.5130). insufficient information to support data, the ‘‘new information’’ on which Concern for possible long-term effects of classifying a device into class I or class any reclassification is based is required infrared radiation on the skin and eyes II and the device was a life-sustaining or to consist of ‘‘valid scientific evidence,’’ of infants was the sole reason for life-supporting device or was for a use as defined in section 513(a)(3) of the act classifying the device into class III. FDA that is of substantial importance in and 21 CFR 860.7(c)(2). FDA relies upon believed that the other risks to health preventing impairment of human ‘‘valid scientific evidence’’ in the identified in the proposed rule could be health. classification process to determine the addressed by labeling or by a standard. Most generic types of devices that level of regulation for devices. For the In the Federal Register of September were on the market before the date of purpose of reclassification, the valid 6, 1983 (48 FR 40272), FDA published the original 1976 amendments (May 28, scientific evidence upon which the a notice of intent to initiate proceedings 1976) (generally referred to as agency relies must be publicly available. to require premarket approval of 13 preamendments devices) have been Publicly available information excludes preamendments class III devices classified by FDA under the procedures trade secret and/or confidential assigned a high priority by FDA for the set forth in section 513(c) and (d) of the commercial information, e.g., the application of premarket approval act through the issuance of classification contents of premarket approval requirements. Among other things, the regulations into one of these three applications (PMA’s). (See section notice described the factors FDA regulatory classes. Under sections 513(c) 520(c) of the act, (21 U.S.C. 360j(c).) considered in establishing priorities for and (d) of the act, FDA secures expert II. Reclassification Under the Safe initiating proceedings under section panel recommendations on the Medical Devices Act of 1990 515(b) of the act for issuing final rules appropriate device classifications for requiring preamendments class III The SMDA further amended the act to generic types of devices. FDA then change the definition of a class II devices to have approved PMA’s or considers the panel’s recommendations device. Under the SMDA, class II product development protocols (PDP’s) and, through notice and comment devices are those devices for which which have been declared completed. rulemaking, issues classification there is insufficient information to show Using these factors, FDA concurred with regulations. that general controls themselves will the panel’s recommendation that the For those devices introduced into ensure safety and effectiveness, but infant radiant warmer should be subject interstate commerce for the first time there is sufficient information to to a high priority for initiating a after May 28, 1976, the device is establish special controls to provide proceeding to require premarket classified through the premarket such assurance, including the issuance approval. notification process under section of a performance standard, postmarket In the Federal Register of January 15, 510(k) of the act (21 U.S.C. 360(k)). surveillance, patient registries, 1986 (51 FR 1910), FDA published a Those devices that FDA finds to be development and dissemination of proposed rule to require filing of a PMA substantially equivalent to a classified guidelines, and other appropriate or a notice of completion of a PDP for preamendments generic type of device actions necessary to provide reasonable the infant radiant warmer. In are thereby classified in the same class assurance of the safety and effectiveness accordance with section 515(b) of the as the predicate preamendments device. of the device. Thus, the definition of a act and 21 CFR 860.132, FDA also Reclassification of classified class II device was changed from announced an opportunity for interested preamendments devices is governed by ‘‘performance standards’’ to ‘‘special persons to request a change in section 513(e) of the act. This section controls.’’ classification of the device based on provides that FDA may, by rulemaking, new information. FDA identified the reclassify a device (in a proceeding that III. History of the Proceedings following potential risks to health parallels the initial classification In the Federal Register of August 24, associated with the use of infant radiant proceeding) based on ‘‘new 1979 (44 FR 49873), FDA published a warmers: Insensible water loss, special information.’’ The reclassification can proposed rule to classify the infant risk group infants with very low birth be initiated by FDA or by the petition radiant warmer into class III. The weight, hypothermia and hyperthermia, of an interested person. preamble included the classification damage to the eyes and skin, increased The term ‘‘new information,’’ as used recommendation of the General Hospital oxygen consumption, operator error, in section 513(e) of the act, includes and Personal Use Devices Panel (the and other safety risks common to many information developed as a result of a panel). The panel’s recommendation devices (e.g., electric shock, inadequate reevaluation of the data before the included a summary of the reasons why stability, and burns to the user). agency when a device was originally the device should be subject to On January 30, 1986, the Health classified, as well as information not premarket approval and identified Industries Manufacturers Association presented, not available, or not certain risks to health presented by the submitted a petition (Ref. 1) to reclassify developed at that time. (See, e.g., device, including electrical shock, the infant radiant warmer from class III Holland Rantos v. United States possible eye damage due to long-term into class II. The petition was submitted Department of Health, Education, and exposure to infrared radiation, patient under section 513(e) of the act. Welfare, 587 F.2d 1173, 1174 n.1 (D.C. injury, hospital staff burns, insensible Consistent with the act and the Cir. 1978); Upjohn v. Finch, 422 F.2d water loss, and hyperthermia or regulations, FDA referred the petition to 944 (6th Cir. 1970); Bell v. Goddard, 366 hypothermia. The panel also the panel for its recommendation on the F.2d 177 (7th Cir. 1966).) recommended that a high priority for requested change in classification. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44015

On May 21, 1986, during a meeting by physician, only in health care facilities, consumption as another potential risk to teleconference, the panel unanimously and only by persons with specific health associated with the use of the recommended that the infant radiant training and experience in the use of the device (51 FR 1910). warmer be reclassified from class III into device. Based on the review of the new data class II and that any change in and information contained in the VI. Summary of the Reasons for the classification not take effect until the petition and the panel members’ Recommendation effective date of a performance standard personal knowledge of and experience for the generic type of device The panel gave the following reasons with the device, the panel on May 11, established under section 514 of the act in support of its recommendation to 1994, agreed that all the potential risks (21 U.S.C. 360d) (Ref. 2 at p. 75). reclassify the infant radiant warmer to health (insensible water loss; special In the Federal Register of May 27, from class III into class II: risk group, very low birth weight 1987 (52 FR 19735), FDA published a 1. General controls by themselves are infants; hyperthermia and hypothermia; notice of intent to initiate a proceeding insufficient to provide reasonable possible eye and skin damage; and to reclassify the infant radiant warmer assurances of the safety and increased oxygen consumption) from class III into class II. Subsequent effectiveness of the device. associated with the use of the infant to that notice, FDA determined that the 2. There is sufficient publicly radiant warmer could be controlled by deliberations of the 1986 panel were available information to establish special controls (Ref. 3). The panel also incomplete and that another panel special controls to provide reasonable believed that the general risks to health meeting was necessary to allow the assurance of the safety and effectiveness (operator error, electric shock, panel to address specific of the device for its intended use. inadequate device stability, and burns to recommendations and issues concerning 3. An existing voluntary standard operators) could also be addressed by the reclassification of the infant radiant (Ref. 4) is the special control special controls. warmer (Ref. 2 at pp. 54 and 65). This recommended by the panel. On the basis of its review and the additional panel meeting was held on 4. There is sufficient publicly panel’s recommendation, FDA now May 11, 1994. A summary of the panel’s available information to demonstrate believes that the use of the infant recommendation is set forth below. that the device is not potentially radiant warmer for maintaining an hazardous to the life, health, or well- IV. Device Description infant’s body temperature does not being of the infant. The panel identified present a potential unreasonable risk of FDA is proposing the following no new risks to health associated with illness and injury, and that special device description based on the panel’s the use of the device and determined controls would provide reasonable recommendation and the agency’s that some of the previously identified assurance of the safety and effectiveness review. potential risks to health are no longer of the device. In addition to the AAMI The infant radiant warmer is a device risks or are no longer serious risks (Ref. standard, FDA has also incorporated the consisting of an infrared heating 3 at p. 225). Thus, the probable benefits panel’s labeling recommendation as element intended to be placed over an to health of the device outweigh any special controls for this device. infant to maintain the infant’s body probable risks to health. temperature by means of radiant heat. The panel believes that the current VIII. Summary of the Data Upon Which The device may also contain a and any subsequent manufacturers of the Proposed Recommendation is Based the infant radiant warmer can comply temperature monitoring sensor, a heat A. Insensible Water Loss output control mechanism, and an with this voluntary standard, that FDA alarm system (infant temperature, can ensure the safety and effectiveness An increased rate of insensible water manual mode if present, and failure of the device made by new loss is the principle, well-documented alarms) to alert operators of a manufacturers through the premarket risk to health associated with the use of temperature condition over or under the notification procedures under section infant radiant warmers (Refs. 5 and 6). set temperature, manual mode time 510(k) of the act, and that a regulatory Insensible water loss is the continuous limits, and device component failure, level of class III is unnecessary. and usually imperceptible loss of water, mainly from the skin, that occurs to respectively. The device may be placed VII. Risks to Health over a pediatric hospital bed or it may some extent in all newborn infants. It is be built into the bed as a complete unit. When the infant radiant warmer was a well recognized condition of proposed for classification into class III prematurity, its severity being inversely V. Recommendation of the Panel in 1979, the panel identified certain related to birth weight (Ref. 7). Other In the public meeting held on May 11, risks to health that they believed the factors that contribute to insensible 1994, the panel unanimously affirmed device presented. The risks to health water loss in neonates include: Illness; its previous recommendation that the were identified as electrical shock, environmental temperature and infant radiant warmer should be possible eye damage, patient injury, humidity; and other therapies, reclassified from class III into class II hospital staff burns, insensible water especially phototherapy and respiratory (Ref. 3), and that the appropriate special loss, and hyperthermia or hypothermia support (Ref. 5). Insensible water loss is control is a voluntary standard. The (44 FR 49873 at 49874). When the also associated with the use of panel identified the Association for the device was classified into class III in incubators (Refs. 5 through 7). Advancement of Medical 1980, FDA identified concern for Bell (Ref. 6) evaluated four studies Instrumentation (AAMI) voluntary possible delayed long-term effects of (Refs. 8 through 11), which reported standard for infant radiant warmers as infrared radiation on the skin and eyes increased rates of insensible water loss the special control for the infant radiant of infants as the only risk to health of 40 to 190 percent during the use of warmer (Ref. 4). presented by the device. FDA also radiant warmers compared to the use of The panel further recommended the determined that the other risks to health incubators. He determined that the following restrictions on the use of the identified in the proposed rule could be variations in the increased rates of device: A prescription statement in the addressed by labeling or by a standard insensible water loss are related to the labeling of the device that restricts the (45 FR 69694). Subsequently, in 1986, experimental conditions of the device to use only upon the order of a the agency identified increased oxygen investigations (mainly the different 44016 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules weighing methods used in the studies). for the performance of these necessary wavelength region is associated with the Bell concluded that insensible water procedures while providing effective potential for damage to the lens and loss in infants under infant radiant warming. This is particularly important retina of the eye. The IR–B and IR–C warmers without phototherapy is 40 to immediately after birth, during the first wavelength regions are associated with 100 percent higher than in infants in days of life, and for the care of critically the potential for thermal damage to the incubators. ill premature infants. cornea of the eye. Increased insensible water loss places Very low birth weight infants are All the infant radiant warmers an infant at a risk of dehydration and especially susceptible to increased rates emitted IR primarily in the IR–B and IR– electrolyte imbalance and potentially of insensible water loss because of their C wavelength regions (Ref. 1). No interferes with the infant’s larger surface area to mass ratio, higher ultraviolet radiation and negligible thermoregulation. Because both body water content, and the thinner visible radiation (nondetectable to 0.026 underestimation and overestimation of epidermal barrier of their skin (Refs. 2 milliwatt per square centimeter (mW/ fluid and electrolyte requirements can (at pp. 56 and 57), 5, and 13). The cm2)) was detected. The range of have serious consequences to infants, advances in parenteral fluid and maximum IR–A irradiance was 0.103 to especially to low birth weight infants, electrolyte therapy since 1980 provide 3.463 mW/cm2, and the range of guidance for parenteral fluid and specific guidance to minimize this risk maximum total irradiance was 39.2 to electrolyte administration was needed. for very low birth weight infants (Refs. 60.3 mW/cm2. These maximum Since the infant radiant warmer was 6, 12, and 13). irradiances were obtained at full power classified in 1980, several guidances The panel believed that this potential and at high line voltage (130 volts). At which include recommendations for risk to health is not a risk related to the lower heater power levels, parenteral fluid and electrolyte device, but that it is related to the proportionately more of the IR is from administration have been developed for prematurity of the infants (Ref. 3). The the IR–C wavelength region. premature and term infants (Refs. 6, 12, panel stated that the use of the infant In clinical use, however, infant and 13). radiant warmer has made the care of radiant warmers are rarely operated at The use of plastic heat shielding with these infants more manageable, and the full power and at high line voltage (Ref. infant radiant warmers has been panel commented that now even smaller 1). The total irradiances necessary to reported to reduce insensible water loss premature infants than in 1986 are maintain the desired infant skin (Refs. 14 through 17). However, this successfully treated in infant radiant temperature typically range from 12 to practice is not without risks, including warmers. The panel believed that this 25 mW/cm2, and typical IR–A both underheating and overheating of risk can be controlled through special irradiances are less than 1.0 mW/cm2. infants (Refs. 2 and 18). The panel controls. Engel et al. reported mean total agreed that the use of heat shielding irradiances of less than 10 mW/cm2 and C. Damage to the Eyes should be at the discretion of the 17.1 mW/cm2 for the warming of two informed physician (Ref. 2). Infant radiant warmers operate by groups of critically ill premature infants Although an increased rate of directing invisible infrared radiation (Refs. 20 and 21); in general, the smaller insensible water loss is a risk to health (IR) from an overhead heater to the infants required higher irradiances. In in the use of the infant radiant warmer, infant’s body. The magnitude and addition, the necessarily more frequent it can be managed by careful monitoring spectral characteristics of the IR are handling of critically ill neonates, of the infant and administration of controlled by the design of the device which may be as often as once every 10 parenteral or oral electrolyte therapy and are important in assessing the minutes, may interrupt delivery of a when necessary. The new parenteral potential risk of exposure to IR. portion of the radiant heat to the infant fluid and electrolyte therapy guidances During its classification deliberations and thus increase the amount of radiant minimize this risk to health and support in 1979, the panel considered infant power required for heating (Ref. 2). the use of infant radiant warmers in the radiant warmer performance data The petition also summarized management of critically ill infants to developed for FDA under a contract published information that was not whom continual access by health (Ref. 19). However, that data did not reviewed by the classification panel professionals is essential. sufficiently address the panel’s concern when the infant radiant warmer was The panel believed that this risk to about the possibility of adverse effects classified. Both Sliney and Freasier (Ref. health is a well-understood risk on the eyes of infants resulting from 22) and Sliney and Wolbarsht (Ref. 23) associated with the use of the infant long-term exposure to IR. The petition reported that a safe chronic ocular radiant warmer and that it is related to reported new performance data on five exposure level to IR–A was 10 mW/cm2. both the prematurity of the infant and radiant warmers (Ref. 1). The new data The petition reported that the maximum the open bed design of the device (Ref. provided measurements for individual amount of IR–A of the tested infant 3). The panel agreed that this risk to wavelength regions of the radiant warmers ranged from 0.24 to 3.5 health is clinically manageable and that electromagnetic spectrum, including the mW/cm2, and that in actual use, infant it could be controlled by special ultraviolet (200 to 400 nanometers radiant warmers emit typically less than controls. (nm)), visible (400 to 760 nm), and IR– 1 mW/cm2 of IR–A (Ref. 1). Thus, the A (760 to 1,400 nm) wavelength regions, potentials for chronic injury to the lens B. Special Risk Group—Very Low Birth and for the 1,400 to 4,500 nm and the retina are low because infant Weight Infants wavelength region which includes the radiant warmers emit significantly less To survive, very low birth weight IR–B (1,400 to 3,000 nm) wavelength IR–A radiation than the level of IR–A infants, weighing 1,500 grams or less, region and the 3,000 to 4,500 nm radiation believed to be associated with require aggressive diagnostic and portion of the IR–C wavelength region injuries of the lens and retina. therapeutic procedures, such as (the IR–C wavelength region extends The cornea and aqueous humor emergency resuscitation, tracheal from 3,000 to 100,000 nm). The petition absorb almost all of the IR from 1,400 intubation, placement of catheters and also reported total irradiance, including to 1,900 nm; the cornea absorbs all the needles, and blood sampling (Ref. 1). irradiance for wavelengths extending IR above 1,900 nm (Ref. 23). Thus, most The use of infant radiant warmers has beyond 4500 nm obtained by another IR emitted by infant radiant warmers is allowed essential access to the infants measurement method. The IR–A absorbed by the anterior structures of Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44017 the eye and is not transmitted to the was a reasonable total irradiance limit E. Increased Oxygen Consumption lens and retina. Sliney and Freasier (Ref. for an infant under an infant radiant Bell reviewed five studies (Ref. 6) that 22) and Sliney and Wolbarsht (Ref. 23) warmer in 1973 and 1984 (Refs. 24 and reported conflicting results of also reported that the irradiance of 100 18, respectively) and that the near IR 2 statistically significant increased oxygen mW/cm was ‘‘well below’’ the range between 700 to 1,200 nm should consumption rates (Refs. 30 and 31) and 2 threshold irradiance level to prevent be limited to 40 mW/cm . The 1994 unchanged oxygen or slightly increased corneal injury. Thus, the potentials for International Electrotechnical consumption rates (Refs. 11, 28, 32, and injury to the cornea and aqueous humor Commission standard for infant radiant 33) in infants warmed under radiant from exposure to IR emitted by infant warmers has irradiance limits of 100 warmers compared to infants warmed in radiant warmers are low because the 2 mW/cm for total IR irradiance and 10 incubators. Because increased oxygen maximum irradiances of infant radiant 2 mW/cm for IR–A (Ref. 29). The 1995 consumption may be an indicator of a warmers range from 36.8 to 60.3 mW/ AAMI voluntary standard special stress-related increase in metabolism, cm2 and their typical total use control has irradiance limits of 60 mW/ these reports caused concern that the irradiances range from 12 to 25 mW/cm2 2 cm for total IR irradiance and 10 mW/ use of infant radiant warmers stress the (Ref. 1). For both the total irradiance 2 cm for IR–A (Ref. 4). The maximum metabolism of infants. and the IR–A irradiance, the margins for irradiances of currently marketed infant Bell evaluated these studies taking safety are significant. radiant warmers meet the AAMI into account differences in the various To put this irradiance information in voluntary standard special control perspective, it should be noted that study parameters used, including irradiance limits (Ref. 3). differences in the servocontrol skin premature infants’ eyes are rarely This new information concerning the opened and that blinking of the eyes temperatures and the humidity in the IR irradiance characteristics of infant neonatal nurseries (Ref. 6). He when opened keeps the corneal radiant warmers and the irradiance epithelium from drying out (Ref. 24). determined that only a small increase in levels associated with acute and chronic oxygen consumption (4 kilocalories per Thus, there is a low probability that a injuries to the eyes have addressed the significant amount of IR actually enters kilogram per 24 hours additional energy safety concerns previously held about expenditure) occurs in the infants under the eyes of premature infants. the unknown potential for IR-induced There are two studies on the effects of infant radiant warmers compared to long-term effects to the eyes of infants IR on the eyes of neonates. Johns et al. infants in incubators. Bell agreed with under infant radiant warmers. The panel detected no adverse eye effects in Wheldon and Rutter (Ref. 31) that the stated that in over 20 years of clinical infants warmed under radiant warmers net total heat loss of infants under use, there are no reports in the literature after followup times of up to 45 days radiant warmers to the environment due of any adverse long-term effects to the (Ref. 25). This study now has increased to evaporation, convection, radiation, significance since Pitts and Cullen eyes of infants attributed to the IR and conduction does not exceed that of reported that corneal damage heals radiation emitted by infant radiant infants in incubators. He concluded that rapidly (usually within 24 hours) and warmers (Ref. 3). They further the increased oxygen consumption of that lens opacities formed within 24 commented that long-term infants in infant radiant warmers is of hours after exposure heal earlier than developmental health assessments of unknown clinical significance. expected (usually within 1 month) (Ref. infants cared for in infant radiant Subsequently, Marks et al. reported that 26). Thus, any corneal or lens effects, if warmers do not mention any delayed premature infants under infant radiant present, would have been detected by eye conditions (Ref. 3, pp. 190 and 191). warmers experienced no short-term Johns et al. The panel agreed that the potential risk metabolic complications or adverse In 1993, Baumgart et al. (Ref. 27) to health of long-term damage from effects on growth even though they had reported a retrospective study of overexposure of the eyes to total IR and a 10 percent higher oxygen critically ill premature infants treated IR–A could be controlled by special consumption compared to infants in under radiant warmers and incubators controls. incubators (Ref. 34). with longer followup times of 30 days D. Damage to the Skin The panel acknowledged that to 6 years. The mean followup time for although oxygen consumption may be the radiant warmer group was 29 The IR emitted by infant radiant greater in infants cared for in infant months, and the mean IR irradiance of warmers is designed to be below the radiant warmers than in incubators, the the infant radiant warmer group was threshold for thermal injury to the clinical significance of this, if any, is less than 30 mW/cm2. They found no infant’s skin (Ref. 24). The IR is not of unknown (Ref. 3). They noted that other long-term or short-term corneal or lens sufficient energy to cause factors unrelated to the device can also effects in either group. The incidence of photochemical reactions in the skin. cause increased oxygen consumption. retinopathy of prematurity was higher Most of the IR–A irradiance is reflected The panel agreed this potential risk in the radiant warmer group, but this from the skin while IR–B and IR–C could be controlled by special controls. higher incidence was attributed to irradiance are absorbed by the outer 1 F. Hypothermia and Hyperthermia prematurity and to the hospital’s policy millimeter of the skin to accomplish the of placing the more critically ill desired warming effect. The risks to health of hypothermia premature infants receiving oxygen in The panel commented that there are and hyperthermia are low during proper infant radiant warmers rather than in no published reports of skin damage in use of the device (Ref. 1). Infant radiant incubators. It is noted that the incidence infants attributed to the use of radiant warmers are used to treat and to prevent of retinopathy of prematurity is warmers and that long-term hypothermia. Both hypothermia and associated with prolonged oxygen developmental health assessments of hyperthermia can result from therapy (Ref. 28). infants cared for in infant radiant malfunctioning alarms and radiant There are few recommended IR warmers do not mention skin conditions heater components, and hyperthermia exposure levels specifically intended for (Ref. 3). The panel believed that the can result from detachment of the skin infants under infant radiant warmers. potential risk of overexposure of the temperature probe from the infant. The The Emergency Care Research Institute skin to IR could be controlled by special device’s temperature and failure alarm proposed that 0.3 W/cm2 (300 mW/cm2) controls. system is designed to prevent 44018 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules hypothermia and hyperthermia by assure the device’s safety and be less. Therefore, the agency certifies alerting operators of unsafe temperature effectiveness (Ref. 3). that the proposed rule will not have a conditions, skin temperature probe significant economic impact on a IX. FDA’s Tentative Findings detachment from the skin, probe failure substantial number of small entities. and device failure. The petition (Ref. 1), FDA tentatively concurs with the Therefore, under the Regulatory current device labeling (Ref. 3), the recommendation of the panel that infant Flexibility Act, no further analysis is AAMI voluntary standard special radiant warmers should be reclassified required. control (Ref. 4), and accepted medical into class II. The agency believes that practice (Refs. 1 and 3) all recommend ‘‘new information’’ in the form of XII. Paperwork Reduction Act of 1995 frequent monitoring of infants under publicly available, valid scientific FDA tentatively concludes that the infant radiant warmers. They also evidence exists to establish special labeling requirements in this proposed recommend that infant radiant warmers controls to provide reasonable assurance rule are not subject to review by the should be operated in the skin of safety and effectiveness of the infant Office of Management and Budget temperature servocontrol mode rather radiant warmer for its intended use. The because they do not constitute a than the manual mode to further reduce agency further identifies the AAMI ‘‘collection of information’’ under the the risks of both hypothermia and voluntary standard and labeling as the Paperwork Reduction Act of 1995 (Pub. hyperthermia (Refs. 1 and 4). The panel special controls. Moreover, existing L. 104–13). Rather, the proposed agreed that this risk to health could be devices, within the generic type, have labeling statements are ‘‘public controlled by special controls. established a reasonable record of safe disclosure of information originally and effective use. Consistent with the G. Other Risks supplied by the Federal Government to purpose of the act, class II controls as the recipient for the purpose of Four other potential risks associated defined by section 513(a)(1)(B) of the disclosure to the public’’ (5 CFR with the use of infant radiant warmers SMDA would provide the least amount 1320.3(c)(2)). are electrical shock due to improper of regulation necessary to reasonably design or construction of the device, assure that current and future infant XIII. Request for Comments injury due to instability of the device, warmers are safe and effective. Interested persons may, on or before burns to the operator if the device is X. Environmental Impact November 25, 1996, submit to the constructed of materials that absorb Dockets Management Branch (address radiant heat, and operator error. The agency has determined under 21 above) written comments regarding this Operator error can be minimized by CFR 25.24(e)(2) that this action is of a proposal. Two copies of any comments appropriate training and comprehensive type that does not individually or are to be submitted except that device labeling. The panel agreed that cumulatively have a significant effect on individuals may submit one copy. these are well-known risks that are the human environment. Therefore, Comments are to be identified with the generic to many neonatal devices and neither an environmental assessment name of the device and the docket that they can be controlled by special nor an environmental impact statement number found in brackets in the controls (Ref. 3). is required. heading of this document. Received H. Benefits of the Device XI. Analysis of Impacts comments may be seen in the office above between 9 a.m. and 4 p.m., The infant radiant warmer has the FDA has examined the impacts of the Monday through Friday. unique benefit of providing greater proposed rule under Executive Order accessibility to the infant than do 12866 and the Regulatory Flexibility Act XIV. References incubators during routine nursing and (Pub. L. 96–354). Executive Order 12866 The following information has been intensive care procedures without directs agencies to assess all costs and placed on display in the Dockets interrupting the delivery of heat. Infant benefits of available regulatory Management Branch (address above) radiant warmers can also heat an infant alternatives and, when regulation is and may be seen by interested persons faster than an incubator. Ahlgren necessary, to select regulatory between 9 a.m. and 4 p.m., Monday reported that only 5 to 10 minutes are approaches that maximize net benefits through Friday. required to warm the infant’s skin to the (including potential economic, 1. Health Industry Manufacturers preset skin temperature with the infant environmental, public health and safety, Association Petition with incorporated errata, radiant warmer as compared to 45 to 50 and other advantages; distributive volumes 1 to 5, Washington, DC, 1986 minutes for the incubator (Ref. 35). impacts; and equity). The agency (submitted January 30, 1986; revised April Infant radiant warmers are believes that this proposed rule is 15, 1986). recommended for the care of newborn consistent with the regulatory 2. Transcript, General Hospital and infants who lose large amounts of heat philosophy and principles identified in Personal Use Devices Panel (telephone conference call), May 21, 1986. through evaporation of amniotic fluid the Executive Order. In addition, the 3. Transcript, General Hospital and from their skin in the delivery room proposed rule is not a significant Personal Use Devices Panel with the attached (Ref. 27). It is estimated that 80 percent regulatory action as defined by the general device classification questionnaire of all infants are placed under infant Executive Order and so is not subject to and supplemental data sheet, May 11, 1994. radiant warmers at some time during review under the Executive Order. 4. Association for the Advancement of their hospital stay (Ref. 1). Many The Regulatory Flexibility Act Medical Instrumentation, Infant Radiant practitioners consider infant radiant requires agencies to analyze regulatory Warmers (draft standard), May 1995. warmers to be the only way of warming options that would minimize any 5. Baumgart, S., ‘‘Radiant Energy and some very low birth weight and significant impact of a rule on small Insensible Water Loss in the Premature entities. Because of the potential costs to Newborn Infant Nursed under a Radiant critically ill infants (Refs. 3 and 6). Warmer,’’ Clinics in Perinatology, 9:483–503, The panel believes, based on publicly comply with the provisions of 1982. available, valid scientific evidence, that premarket approval (class III) by each 6. Bell, E. F., ‘‘Infant Incubators and the infant radiant warmer can be manufacturer, the agency believes that Radiant Warmers, Early Human regulated as a class II device (general the economic impact to comply with Development,’’ 8:351–375, 1983 (included in and special controls) to reasonably special controls (class II) would likely Ref. 1). Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44019

7. Baumgart, S., W. D. Engel, W. W. Fox, 22. Sliney, D. H., and B. C. Freasier, PART 880ÐGENERAL HOSPITAL AND and R. A. Polin, ‘‘Radiant Warmer Power and ‘‘Evaluation of Optical Radiation Hazards,’’ PERSONAL USE DEVICES Body Size as Determinants of Insensible Applied Optics, 12:1–24, 1973 (included in Water Loss in the Critically Ill Neonate,’’ Ref. 1). 1. The authority citation for 21 CFR Pediatric Research, 15:1495–1499, 1981 23. Sliney, D., and M. Wolbarsht, ‘‘Safety part 880 continues to read as follows: (included in Ref. 1). with Lasers and Other Optical Sources,’’ Authority: Secs. 501, 510, 513, 515, 520, 8. Williams, P. R., and W. Oh, ‘‘Effects of Plenum Press, New York, 1980, pp. 144–149. 701 of the Federal Food, Drug, and Cosmetic Radiant Warmers on Insensible Water Loss in 24. Emergency Care Research Institute, Act (21 U.S.C. 351, 360, 360c, 360e, 360j, Newborn Infants,’’ American Journal of ‘‘Evaluation: Infant Warmers,’’ Health 371). Diseases in Childhood, 128:511–514, 1974 Devices, 3:4–25, 1973. (included in Ref. 1). 25. Johns, R., D. Schaffer, and G. Peckham, 2. Section § 880.5130 is revised to 9. Wu, P. Y. K., and J. E. Hodgemen, ‘‘Evaluation of the Effects of Infrared ‘‘Insensible Water Loss in Preterm Infants. read as follows: Radiation on the Eyes of Infants under Changes with Postnatal Development and § 880.5130 Infant radiant warmer. Non-Ionizing Radiant Energy,’’ Pediatrics, Radiant Warmers,’’ Unpublished, 1977 54:704–711, 1974 (included in Ref. 1). (included in Ref. 1). (a) Identification. The infant radiant 10. Bell, W. F., M. R. Weinstein, and W. 26. Pitts, D. G., and A. P. Cullen, warmer is a device consisting of an Oh, ‘‘Heat Balance in Premature Infants: ‘‘Determination of Infrared Radiation Levels infrared heating element intended to be Comparative Effects of Convectively Heated for Acute Ocular Cataractogenesis,’’ Albrecht placed over an infant to maintain the Incubator and Infant Radiant Warmer, with von Graefes Archives Klinische infant’s body temperature by means of Ophthalmologie, 217:285–297, 1981 and without Heatshield,’’ Journal of radiant heat. The device may also Pediatrics, 96:460–465, 1980 (included in (included in Ref. 1). Ref. 1). 27. Baumgart, S., A. Knauth, F. X. Casey, contain a temperature monitoring 11. Jones, R. W. A., M. J. Rochefort, and J. and G. E. Quinn, ‘‘Infrared Eye Injury Not sensor, a heat output control D. Baum, ‘‘Increased Insensible Water Loss in Due to Radiant Warmer Use in Infants,’’ mechanism, and an alarm system (infant New Born Infants Nursed under Radiant American Journal of Diseases in Childhood, temperature, manual mode if present, Heaters,’’ British Medical Journal, 1:1347– 147:565–569, 1993. and failure alarms) to alert operators of 1350, 1976 (included in Ref. 1). 28. American Academy of Pediatrics and a temperature condition over or under 12. Baumgart, S., C. B. Langman, W. W. American College of Obstetricians and the set temperature, manual mode time Fox, and R. A. Polin, ‘‘Fluid, Electrolyte, and Gynecologists, Guidelines for Perinatal Care, limits, and device component failure, Glucose Maintenance in the Very Low Birth Evanston and Washington, DC, respectively, Weight Infant,’’ Clinical Pediatrics, 32:199– respectively. The device may be placed 1983 (included in Ref. 1). over a pediatric hospital bed or it may 206, 1982 (included in Ref. 1). 29. International Electrotechnical 13. Costarino, A. T., and S. Baumgart, be built into the bed as a complete unit. Commission, ‘‘Medical Electrical Equipment, ‘‘Controversies in Fluid and Electrolyte Part 2: Particular requirements for the safety (b) Classification. Class II (Special Therapy for the Premature Infant,’’ Clinical of infant radiant warmers’’, 1994. Controls). (1) Association for the Perinatology, 15:863–878, 1988. 30. LeBlanc, M., ‘‘Relative Efficacy of Advancement of Medical 14. Marks, K. H., Z. Freidman, and M. B. Instrumentation (AAMI) Voluntary Maisels, ‘‘A Simple Device for Reducing Radiant and Convective Heat in Incubators in Insensible Water Loss in Low-Birth Weight Producing Thermoneutrality for the Standard for Infant Radiant Warmers; Infants,’’ Pediatrics, 60:223–226, 1980 Premature,’’ Pediatric Research, 18:426–428, (2) prescription statement in accordance (included in Ref. 1). 1984 (included in Ref. 1). with 21 CFR 801.109 (restricted to use 15. Baumgart, S., W. D. Engel, W. W. Fox, 31. Wheldon, A. E., and N. Rutter, ‘‘The by or upon the order of qualified and R. A. Polin, ‘‘Effect of Heat Shielding on Heat Balance of Small Babies Nursed in practitioners as determined by the Convective and Evaporative Heat Losses and Incubators and under Radiant Warmers,’’ States); (3) labeling for use only in on Radiant Heat Transfer in the Premature Early Human Development, 6:131–143, 1982 health care facilities and only by (included in Ref. 1). Infant,’’ Journal of Pediatrics, 99:948–956, persons with specific training and 1981 (included in Ref. 1). 32. Marks, K. H., R. C. Gunther, J. A. Rossi, 16. Baumgart, S., W. W. Fox, and R. A. and M. J. Maisels, ‘‘Oxygen Consumption and experience in the use of the device. Polin, ‘‘Physiologic Implications of Two Heat Insensible Water Loss in Premature Infants Dated: August 1, 1996. Shields for Infants under Infant Radiant under Radiant Heaters,’’ Pediatrics, 66:228– D. B. Burlington, Warmers,’’ Journal of Pediatrics, 100:787– 232, 1980 (included in Ref. 1). Director, Center for Devices and Radiological 790, 1982 (included in Ref. 1). 33. Darnall Jr., R. A., and R. L. Ariagno, Health. 17. Fitch, C. W., and S. B. Korones, ‘‘Heat ‘‘Minimal Oxygen Consumption in Infants Shield Reduces Water Loss,’’ Archives Cared for under Overhead Radiant Warmers [FR Doc. 96–21846 Filed 8–26–96; 8:45 am] Disease in Childhood, 59:886–888, 1984 Compared with Conventional Incubators,’’ BILLING CODE 4160±01±F (included in Ref. 1). Journal of Pediatrics, 93:283–287, 1978 18. Emergency Care Research Institute, (included in Ref. 1). ‘‘Evaluation: Infant Warmers,’’ Health 34. Marks, K. H., E. E. Nardis, and M. N. DEPARTMENT OF THE INTERIOR Devices, 13:119–145, 1984. Momin, ‘‘Energy Metabolism and Substrate 19. Emergency Care Research Institute, Utilization in Low Birth Weight Neonates Bureau of Indian Affairs ‘‘The Development of a Standard for Infant under Radiant Warmers,’’ Pediatrics, 78:465– Warmers and Incubators,’’ final report, FDA 472, 1986. 25 CFR Part 215 Contract No. 223–75–5012, Plymouth 35. Ahlgren, E. W., ‘‘Environmental Meeting, PA, 1976. Control of the Neonate Receiving Intensive RIN 1076±AD35 20. Engel, W. D., S. Baumgart, W. W. Fox, Care,’’ International Anesthesiology Clinic, and R. A. Polin, ‘‘Effect of Increased Radiant 12:173–215, 1974 (included in Ref. 1). Lead and Zinc Mining Operations and Power Output on State of Hydration in the Leases on Quapaw Indian Lands Critically Ill Neonate,’’ Critical Care List of Subjects in 21 CFR Part 880 Medicine, 10:673–676, 1982 (included in Ref. AGENCY: Bureau of Indian Affairs, 1). Medical devices. Interior. 21. Engel, W. D., S. Baumgart, J. G. Therefore, under the Federal Food, Schwartz, W. W. Fox, and R. A. Polin, ACTION: Proposed rule. ‘‘Insensible Water Loss in the Critically Ill Drug, and Cosmetic Act and under Neonate,’’ American Journal of Diseases in authority delegated to the Commissioner SUMMARY: We are proposing to revise Children, 135:516–520, 1981 (included in of Food and Drugs, it is proposed that our regulations for lead and zinc Ref. 1). 21 CFR part 880 be amended as follows: mining. The purpose is to update the 44020 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules operations and procedures for the number of small entities under the Authority: Sec. 26, 41 Stat. 1248; 50 Stat. leasing of and operations for the Regulatory Flexibility Act (5 U.S.C. 601 68; Sec. 2, 53 Stat. 1127; 84 Stat. 325; 104 discovery, testing, development, et seq.).; and Stat. 206. mining, and processing of all lead and (e) Imposes no unfunded mandates on § 215.0 Definitions. zinc minerals on the lands of Quapaw any governmental or private entity and Allottee means an Indian that has Indians under the jurisdiction of the is in compliance with the provisions of been allotted land, or an Indian owner Miami Agency in Ottawa County, the Unfunded Mandates Act of 1995. of land or interest as an heir or devisee Oklahoma. This action is to assist The information collection in unpartitioned lands under the Indians with the orderly and efficient requirements contained in this rule do supervision of the Government. development of their natural resources not require the approval of the Office of BLM means Supervisor, Geologic, of lead and zinc deposits, and to insure Management and Budget under 44 Engineering and Mining Services Team operations are conducted without loss U.S.C. 3501 et seq. of the Bureau of Land Management. or damage to the environment or other Chat means the piles of mine waste resources. The primary author of this document is John Dahlgarn, Bureau of Indian and gravity concentration tailings DATES: You may send us written Affairs, Department of the Interior. resulting from the operation of the lead- comments. We must receive them by zinc mines. October 28, 1996. List of Subjects in 25 CFR Part 215 Incompetent Indian means an Indian ADDRESSES: You must mail or hand who we declared unable to improve or Indian-lands, Lead, Zinc. carry your comments to Terrance manage his or her restricted or trust Virden, Acting Director, Office of Trust For the reasons set out in the lands. This includes minors and those Responsibilities, Bureau of Indian preamble, we propose to revise Part 215 Indians who are incompetent under Affairs, 1849 C Street N.W., MS 4513– of Title 25 of the Code of Federal State law. MIB, Washington, DC 20240. Regulations, as follows: Leased lands, leased premises, or FOR FURTHER INFORMATION CONTACT: Mr. leased tract means restricted or trust Part 215ÐLead and Zinc Mining John Dalgarn, Bureau of Indian Affairs, lands under a lease. Operations and Leases on Quapaw Miami Agency, P.O. Box 391, Miami, Lessee means any person, firm, or Indian Lands OK 74355–0391; telephone (918) 542– corporation, their legal representatives, 3396. Sec. heirs, or assigns, who has obtained a SUPPLEMENTARY INFORMATION: We are 215.0 Definitions. lease. publishing this revised rule by the 215.1 Purpose. Lessor means any Indian owning or authority delegated by the Secretary of 215.2 Scope. having an interest in restricted or trust the Interior to the Assistant Secretary— 215.3 No operations until a lease is allotted or inherited lands that has been approved. Indian Affairs by 209 DM 8. leased. 215.4 How are leases offered? Mining operations means drilling, Our policy is to give the public an 215.5 How are lands selected for a lease opportunity to participate in the mining, or construction on leased lands. auction? We means the U.S. Government, rulemaking process by submitting 215.6 How do we advertise the lease Department of the Interior, Bureau of written comments on the proposed rule. auction? Indian Affairs, and anyone who is We will consider all comments received 215.7 How do I bid for a lease? authorized to represent us in matters during the public comment period. We 215.8 What must your bid include? covered in this part. will determine necessary revisions and 215.9 How do we conduct public auctions? You means an allottee, lessee, lessor, issue the final rule. Please refer to this 215.10 What happens after the public auction? or other interested persons. preamble’s ADDRESSES section for where 215.11 What happens if we reject your bid you must submit your written or do not award you a lease? § 215.1 Purpose. comments on this proposed rule. 215.12 What happens if you fail to execute The purpose of the regulations in this We have certified to the Office of a lease? part is to assist you with the orderly and Management and Budget (OMB) that 215.13 How are royalty rates determined? efficient development and production of these proposed regulations meet the 215.14 Who do you pay? your natural resources (lead and zinc) applicable standards provided in 215.15 Who pays the gross production tax without waste or avoidable loss of or due to the State of Oklahoma? Sections 2(a) and 2(b)(2) of Executive damage to deposits; avoid, minimize or Order 12778. 215.16 Lessee must have local representation. correct damage to the environment, This rule is not a significant rule land, water and air or other resources; under Executive Order 12866 and does 215.17 How long are leases? 215.18 What forms are used? and to obtain a proper record and not require approval by the Office of 215.19 Who can execute (sign) leases? accounting of all minerals produced. Management and Budget. 215.20 What is required for corporate We determined this proposed rule: leases? § 215.2 Scope. (a) Does not constitute a major Federal 215.21 What bonds are needed? The regulations in this part apply to action significantly affecting the quality 215.22 Can leases be assigned? the leasing of and operations for the of the human environment, and no 215.23 Can leases of developed land be discovery, testing, development, detailed statement is needed under the extended? mining, and processing of all lead and National Environmental Policy Act of 215.24 Will we deny requests for lease zinc minerals on Quapaw Indian lands extensions? 1969; under the supervision and jurisdiction (b) Does not have significant takings 215.25 Can new leases be granted if a lease has been forfeited or abandoned? of the Miami Agency, Oklahoma. implications in accordance with 215.26 Exploration and mining operations. § 215.3 No operations until a lease is Executive Order 12630; 215.27 When can operations and approved. (c) Does not have significant production be suspended? federalism effects. 215.28 Who owns the mine tailings? No operations are allowed upon any (d) Will not have a significant 215.29 How are mine tailings disposed of? restricted or trust lands allotted to or economic impact on a substantial 215.30 What can chat be used for? inherited by an Indian until we approve Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44021 the lease covering the land and the (c) At the conclusion of public we will notify you in advance. You activity. bidding, we will determine the highest must store the ore in your ore bins at no and best bid as the highest bonus offer. cost to the lessor. You will not be § 215.4 How are leases offered? (d) We reserve the right to reject any required to store more than one-third of We will offer lead and zinc mining or all bids. your bin capacity or for longer than 6 leases at public auction to the highest months. responsible bidder. § 215.10 What happens after the public auction? § 215.14 Who do you pay? § 215.5 How are lands selected for a lease (a) We review and select the highest We must collect all payments for auction? and best bid for each tract offered in the rents, royalties, bonus, and any other (a) Any one or a combination of auction. payments. We will then deposit the Indian owners may request us to offer (b) We inform the owners of the bid funds to the credit of the Indian the lead and zinc minerals on any of selections. lessor(s). their restricted or trust lands for sale at (c) We inform the owners of the a lease auction. estimated reasonable mining value of § 215.15 Who pays the gross production (b) Before a tract of unpartitioned land their lands and other necessary tax due to the State of Oklahoma? will be offered for lease at a public information to fully advise them of the (a) We will pay the Indian owners auction, a majority of the interest current status and mining potential of share of the gross production tax to the owners must agree to the request. their lands. State from their royalty income. (d) The owners accept the bid offer (b) You are responsible to pay your § 215.6 How do we advertise the lease and execute (sign) the lease. share of the gross production tax. auction? (e) We will notify you when you are (a) We will publish at least four § 215.16 Lessee must have local awarded a lease. representation. notices starting 30 days before the (f) You will have 30 days after notice public auction. The notices will be in a to execute the lease by the terms of your (a) You must designate a local or newspaper of general circulation in the bid and the regulations in this part. resident representative within Ottawa county where the land is located, and in (g) We will finalize the lease County, Oklahoma. You must also give at least one nationally circulated mining documents by approving the completed us the representative’s name and trade journal. lease package. mailing address. (b) The public auction notice will (b) We will notify and communicate include the following information: § 215.11 What happens if we reject your with your local representative in bid or do not award you a lease? (1) Date of auction; securing compliance with our (2) Time of auction; If your bid is not accepted or you are regulations and the terms of your lease. not awarded a lease, your bid deposit (c) You must designate a substitute (3) Place of auction; and will be returned to you. local representative if the primary (4) How, who, and where to obtain representative is not available to us. information on participation in the § 215.12 What happens if you fail to (d) If no designated local execute a lease? auction. representative is available, any of your If we award you a lease and you fail § 215.7 How do I bid for a lease? employees, contractors, or other person to execute it, you will forfeit the money (a) You may submit sealed bids by in charge of mining operations on the included with your bid. We will give leased land will be considered your mail to the address in the notice. We these funds to the land owner(s). must receive your bid before the public local representative for the purpose of auction begins. § 215.13 How are royalty rates serving a notice to you. (e) We will consider you to be notified (b) You may submit your bid at the determined? when we mail the notice to you or your public auction. (a) If a lease is offered for sale at local representative’s last known (c) You may authorize an agent to public auction, we will set the royalty address. submit your bid at the public auction. rate before the auction at a fixed percentage of gross proceeds of all lead (f) Your response time begins with the The agent must have your power of day a notice is mailed or received in attorney to bid for you. and zinc ores and concentrates extracted. We will determine the royalty person by you or your local § 215.8 What must your bid include? rate for each lease individually. representative. Bids must include: (b) If a lease is not offered for sale at § 215.17 How long are leases? (a) Your offer of the stipulated and public auction, we will determine the Lead and zinc mining leases can be fixed royalty; royalty rate or approve a negotiated rate for 10 years. We may limit leases to less (b) Your bonus payment offer; and for each lease. than ten years. (c) Cashier’s check payable to us in (1) The royalty rate must not be less the amount of one year rental and 25 than the highest and best obtainable § 215.18 What forms are used? percent of your bonus payment offer. market price for lead and zinc ores and We will prescribe the appropriate concentrates. We will determine this form for applications, leases, other § 215.9 How do we conduct public minimum price at the usual and information, and collection auctions? customary disposal points at the time of requirements. (a) At the announced auction time, we the sale. will announce the bidder, the amount, (2) We reserve the right to determine § 215.19 Who can execute (sign) leases? and terms of each sealed bid received. the market price if it is necessary to (a) A lease contract can be executed (b) After the announcement of the protect the interests of the Indian lessor. by competent adult Indian owners. sealed bids, public bidding will begin. (3) We reserve the right, when it is in (b) We will execute and approve All bidders present can bid, whether or the best interest of the Indian lessor, to leases for: not you submitted a sealed bid. Bidding require you to store the royalty share of (1) Minors; is only on the bonus payment. ore instead of selling it. If we do this, (2) Incompetent owners; 44022 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules

(3) Undetermined heirs of a (d) The amount of the surety must § 215.24 Will we deny requests for lease decedents’s estate; cover the costs of repair and restoration extensions? (4) Owners who can not be located; of the surface and natural resources. (a) Yes. If any of the following and (e) Minimum bond amounts are: circumstances exist, we may deny your (5) Owners who have given us written request: authority to sign for them. Minimum (1) If a new lease or extension is not Acreage of lease amount of in the best interest of the Indian lessor; § 215.20 What is required for corporate bond (2) If any of the land under the lessees? Less than 80 acres ...... $50,000 extension request is encumbered by (a) If the applicant for a lease is a More than 80 but less than 120 another existing lease, sublease, corporation, your first application must acres ...... 100,000 assignment, or mining contract; or include evidence that your officers can 120 or more acres ...... 250,000 (3) If any owner or person claiming execute the lease. You must also submit: rights or interests files an objection. (1) A certified copy of your articles of (f) We may reduce the amount of the (b) We will notify you about requests incorporation; bond below the minimum amounts with for extensions if our records or the (2) If you are not a Oklahoma the consent of the lessor. district court records show you have corporation, evidence that you are in (g) You may execute a penal bond to rights or interest in any land involved. compliance with the corporation laws us with your power of attorney in lieu (c) You will have 10 days to submit where you are incorporated; of a surety. You can then submit United your objection to the extension after (3) List of officers, principal States bonds or notes in the total receipt of our notice. (d) If an objection is submitted, they stockholders, and directors, with their amount prescribed in paragraph (c) of will have 20 days to submit a statement addresses and the number of shares they this section. supporting their objection. possess; (h) You may provide one aggregate bond instead of several individual (e) The extension applicant will have (4) A sworn statement of your officers 10 days to defend their application from showing: bonds to cover all leases you have. We will determine the amount of the objections. (i) The total number of shares of (f) We will decide to approve or deny aggregate bond. capital stock issued and the amount of the extension based on the facts we (i) We may increase the amount of any cash recovered into your treasury for receive. each share sold or, if paid in property, bond if necessary to protect the interests the kind, quantity, and value paid per of the Indian lessor. § 215.25 Can new leases be granted if a lease has been forfeited or abandoned? share; § 215.22 Can leases be assigned? (ii) The amount per share of sold Yes. If a lease on land where lead and (a) Yes. Leases can be assigned, stock that is not paid for and subject to zinc ores were discovered was canceled, subleased, or sublet only with our assessment; forfeited, or expired, we can approve a approval of the terms and conditions of (iii) The amount of cash in your new lease. If you apply for a new lease, the assignment, sublease, and, or treasury and elsewhere and its source; your application must contain special subletting contract. (iv) The value of your property; and offers for the terms and conditions of (b) You must notify us of any the new lease. (v) The amount of your indebtedness proposed assignment. The assignee and the nature of your obligations. (a) We will consider your offer and if must submit a financial statement and it is in the best interest of the Indian (b) You must submit a statement of bond. We will then notify all restricted changes in officers and stockholders by owner(s), we will approve it. Indian land owners of the proposed (b) If your offer is not in the best January 1 of each year. We may request assignment. They will have ten days to interest of the Indian owner(s), we will this statement at other times during the file written objections to the assignment. reject your offer. year also. We will then approve or disapprove the (c) We will then proceed to offer the (c) We may require individual assignment. lease for sale at public auction described stockholders to provide affidavits on the (c) The assignee must provide a bond in § 215.9. companies or persons or firms that have per § 215.21. interest in lead and zinc mining leases § 215.26 Exploration and mining operation. or Indian land in Ottawa County, § 215.23 Can leases of developed land be (a) Lessees must provide the BLM all Oklahoma, and if the stock is held in extended? notices, reports, drill logs, maps, trust or not. (a) Yes. If you request and it is in the records, and other information on (d) If you are required to submit any best interest of the Indian lessor, we mining operations required by us. The other applications, you will only have to may approve a new lease or extend an BLM will maintain a file for us. show the aggregate amounts of your existing lease. (b) The files maintained by the BLM assets and liabilities. (b) New leases or extensions can be will be available for inspection by granted to lessees, assignees, sublessees, employees of BIA. Employees of the § 215.21 What bonds are needed? mining contractors, or other parties who BLM will provide the BIA any (a) Lessees must provide a surety have expended capital in the mining or information and technical advice we bond when executing a lead and zinc development operations under the need. The BIA will provide the same lease. existing lease. service to the employees of the BLM. (b) The surety bond must be with a (c) New leases or extensions are (c) The BLM will not issue orders to surety company(s) that is acceptable to executed per § 215.19. Indian lessors. The BLM does have the us. (d) We must approve the bonus authority to issue and amend orders to (c) The amount of the surety must payment and royalty for the new lease mining operators on production and guarantee the payment of all deferred or extension. operations. These orders will be installments of the bonus, royalties, (e) We will not consider a request for prepared cooperatively with the BIA. rentals, and the performance of all a new lease or extension until the final (d) Leases granted or approved under covenants and agreements by you. year of the existing lease. this part shall be subject to the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44023 provisions found in 43 CFR Parts 3590 a safe product (for example, glass Need for Correction through 3599, inclusive, and are manufacturing); or As published, the notice of proposed implemented in this part with (4) Applications where the chat is rulemaking (INTL–0003–95) contains relationship to: covered with at least twenty-four (24) errors which may prove to be (1) Exploration and mining inches of clean material in areas that are misleading and are in need of operations. not likely to be used for residential or clarification. (2) Obligations of lessees and public area development (for example, permittees. deep fill on industrial sites). Correction of Publication (3) Maps and plans. (b) Any other applications, including (4) Bore holes and samples. residential applications, are prohibited. Accordingly, the publication of (5) Mining methods. Use of chat for any unauthorized proposed rulemaking (INTL–0003–95) (6) Protection against mining hazards. applications may result in immediate which is the subject of FR Doc. 95– (7) Milling waste from mining or termination of a chat purchase contract, 30087 is corrected as follows: milling. prosecution for trespass, or other 1. On page 63480, column 2, in the (8) Production records and audit. sanctions. preamble, under the heading ‘‘1. Export (9) Inspection, issuance of orders, and (c) Contracts for the sale or disposal Terminal Rule’’, the second full enforcement of orders. of chat under this part are subject to the paragraph, line 12, the language (10) Late payment or underpayment of provisions in 25 CFR part 216. ‘‘production activity following export. charges. A’’ is corrected to read ‘‘production Dated: August 6, 1996. activity as defined in § 1.863–1(b)(3)(ii) § 215.27 When can operations and Ada E. Deer, production be suspended? following export. A’’. Assistant Secretary—Indian Affairs. 2. On page 63483, column 3, in the We may authorize the suspension of [FR Doc. 96–21741 Filed 8–26–96; 8:45 am] the operating and producing preamble, under the heading ‘‘3. BILLING CODE 4310±02±P requirements on mining leases for Determination of Source of Gross minerals other than oil and gas Income’’, line 3 from the top of the whenever we find that marketing column, the language ‘‘are located facilities are inadequate or economic DEPARTMENT OF THE TREASURY where the tangible’’ is corrected to read conditions unsatisfactory. You may ‘‘are located where the taxpayer’s apply for relief from all operating and Internal Revenue Service tangible’’. producing requirements to the BLM in 3. On page 63483, column 3, in the 26 CFR Part 1 triplicate and give a copy to us. preamble, under the heading ‘‘3. Complete information must be [INTL±0003±95] Determination of Source of Gross furnished showing the necessity for Income’’, the fourth full paragraph, line relief. Suspension of operations and RIN 1545±AT92 8, the language ‘‘sit us of economic production will not relieve you from the activity. Accordingly,’’ is corrected to obligations of continued payment of the Source of Income From Sales of read ‘‘situs of economic activity. annual rental or the minimum royalty. Inventory and Natural Resources Accordingly,’’. Produced In One Jurisdiction and Sold § 215.28 Who owns the mine tailings? In Another Jurisdiction § 1.863±1 [Corrected] Mine tailings, mine refuse, ‘‘chat’’ and 4. On page 63485, column 2, § 1.863– AGENCY: Internal Revenue Service (IRS), tailing piles are the property of the 1 (b)(1) introductory text, line 2, the Treasury. lessors from whose lands the ores were language ‘‘Except to the extent provided removed and in the percentage ACTION: Correction to the notice of in’’ is corrected to read attributed thereto. proposed rulemaking. ‘‘Notwithstanding any other provision, except to the extent provided in’’. § 215.29 How are mine tailings disposed SUMMARY: This document contains of? corrections to the notice of proposed § 1.863±2 [Corrected] Disposal of mine tailings, mine refuse, rulemaking (INTL–0003–95) which was 5. On page 63486, column 3, § 1.863– ‘‘chat’’ or tailing piles for purposes other published in the Federal Register on 2 (b), lines 15 and 16, the language than the recovery of lead and zinc Monday, December 11, 1995 (60 FR ‘‘paragraph (a)(2) of this section, see concentrates must be in the methods 63478). The notice of proposed § 1.863–3. However, the principles of’’ and manner we decide is appropriate rulemaking relates to the source of is corrected to read ‘‘paragraph (a)(2) of and in the best interest of the Indian income from sales of natural resources this section, see § 1.863–1 for natural owners. or other inventory produced in the resources and § 1.863–3 for other United States and sold in a foreign § 215.30 What can chat be used for? inventory. However, the principles of’’. country or produced in a foreign (a) Chat must only be used for country and sold in the United States. § 1.863±3 [Corrected] applications that are within one of the following categories: FOR FURTHER INFORMATION CONTACT: 6. On page 63487, column 3, § 1.863– (1) Applications that bind the chat Anne Shelburne (202) 622–3880 (not a 3 (b)(2)(iv), paragraph (i) of Example 1., into a durable product (for example, use toll-free number). line 4, the language ‘‘country X to D, a as an aggregate in batch plants preparing SUPPLEMENTARY INFORMATION: unrelated foreign clothing’’ is corrected asphalt or concrete); to read ‘‘country X to D, an unrelated Background (2) Applications where the chat is foreign clothing’’ applied below paving on asphalt or The notice of proposed rulemaking 7. On page 63488, column 2, § 1.863– concrete roads or parking lots; that is subject to these corrections is 3 (c)(1)(i)(B), line 4, the language (3) Applications where the chat is under section 863 of the Internal ‘‘intangible assets owned by the used as a raw product for manufacturing Revenue Code. taxpayer’’ is corrected to read 44024 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules

‘‘intangible assets owned directly by the ENVIRONMENTAL PROTECTION Annex, 9th Floor, 401 Church Street, taxpayer’’. AGENCY Nashville, Tennessee 37343–1531. Michael L. Slaughter, FOR FURTHER INFORMATION CONTACT: Acting Chief, Regulations Unit, Associate 40 CFR Part 52 William Denman, Regulatory Planning Chief Counsel (Corporate). [TN±176±1±9641b; TN±177±1±9642b; FRL± and Development Section, Air Programs [FR Doc. 96–21601 Filed 8–26–96; 8:45 am] 5546±9] Branch, Air, Pesticides & Toxics BILLING CODE 4830±01±P Management Division, Region 4 Approval and Promulgation of Environmental Protection Agency, 345 Implementation Plans; Tennessee: Courtland Street, NE, Atlanta, Georgia 26 CFR Part 1 Approval of Revisions to the 30365. The telephone number is 404/ Tennessee SIP Regarding Volatile 347–3555 x4208. Reference files TN– [INTL±4±95] Organic Compounds 176–1–9641b and TN–177–1–9642b. AGENCY: Environmental Protection SUPPLEMENTARY INFORMATION: For RIN 1545±AT41 Agency (EPA). additional information see the direct final rule which is published in the ACTION: Proposed rule. Allocation of Loss on Disposition of rules section of this Federal Register. Stock; Correction SUMMARY: The EPA proposes to approve Dated: July 22, 1996. the State implementation plan (SIP) A. Stanley Meiburg, AGENCY: Internal Revenue Service, revision submitted by the State of Acting Regional Administrator. Treasury. Tennessee for the purpose of amending [FR Doc. 96–21695 Filed 8–26–96; 8:45 am] the chapter regulating volatile organic ACTION: Correction to the notice of BILLING CODE 6560±50±P proposed rulemaking. compounds (VOCs). In the final rules section of this Federal Register, the EPA is approving the State’s SIP revision as SUMMARY: This document contains 40 CFR Part 52 a direct final rule without prior proposal corrections to the notice of proposed [MA±46±1±7194b; A±1±FRL±5557±4] rulemaking (INTL–4–95) which was because the Agency views this as a published in the Federal Register on noncontroversial revision amendment and anticipates no adverse comments. A Approval and Promulgation of Air Monday, July 8, 1996 (61 FR 35696). Quality Implementation Plans; The notice of proposed rulemaking detailed rationale for the approval is set forth in the direct final rule. If no Massachusetts; Marine Vessel relates to the allocation of loss realized Transfer Operations on the disposition of stock. adverse comments are received in response to this proposed rule, no AGENCY: Environmental Protection FOR FURTHER INFORMATION CONTACT: Seth further activity is contemplated in Agency (EPA). B. Goldstein (202) 622–3850 (not a toll- relation to this proposed rule. If EPA ACTION: Proposed rule. free number). receives adverse comments, the direct final rule will be withdrawn and all SUPPLEMENTARY INFORMATION: SUMMARY: EPA is proposing a public comments received will be conditional approval of a State Background addressed in a subsequent final rule Implementation Plan (SIP) revision based on this proposed rule. The EPA submitted by the Commonwealth of The notice of proposed rulemaking will not institute a second comment that is subject to these corrections is Massachusetts. This revision contains a period on this document. Any parties regulation to control volatile organic under section 865 of the Internal interested in commenting on this Revenue Code. compound (VOC) emissions from document should do so at this time. marine vessel transfer operations. In the Need for Correction DATES: To be considered, comments Final Rules Section of this Federal must be received by September 26, Register, EPA is conditionally As published, the notice of proposed 1996. approving the Commonwealth’s SIP rulemaking (INTL–4–95) contains an ADDRESSES: Copies of the documents revision as a direct final rule without error that may prove to be misleading relative to this action are available for prior proposal. A detailed rationale for and is in need of clarification. public inspection during normal the approval is set forth in the direct Correction of Publication business hours at the following final rule. If no adverse comments are locations. The interested persons received in response to that direct final Accordingly, the publication of wanting to examine these documents rule, no further activity is contemplated proposed rulemaking (INTL–4–95) should make an appointment with the in relation to this proposed rule. If EPA which is the subject of FR Doc. 96– appropriate office at least 24 hours receives adverse comments, the direct 17004 is corrected as follows: before the visiting day. final rule will be withdrawn and all public comments received will be § 1.904±4 [Corrected] Air and Radiation Docket and Information Center (Air Docket 6102), addressed in a subsequent final rule On page 35701, column 2, § 1.904–4, U.S. Environmental Protection based on this proposed rule. EPA will paragraph (c)(2)(i), line 11, the language Agency, 401 M Street, SW, not institute a second comment period ‘‘January 1, 1988. Paragraph (2)(ii)(B) Washington, DC 20460. on this proposal. Any parties interested of’’ is corrected to read ‘‘January 1, Environmental Protection Agency, in commenting on this proposal should 1988. Paragraph (c)(2)(ii)(B) of’’. Region 4 Air Programs Branch, 345 do so at this time. Michael L. Slaughter, Courtland Street, NE, Atlanta, Georgia DATES: Comments must be received on Acting Chief, Regulations Unit, Assistant 30365. or before September 26, 1996. Chief Counsel (Corporate). Division of Air Pollution Control, ADDRESSES: Comments may be mailed to [FR Doc. 96–21599 Filed 8–26–96; 8:45 am] Tennessee Department of Susan Studlien, Deputy Director, Office BILLING CODE 4830±01±P Environment and Conservation, L & C of Ecosystem Protection, U.S. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44025

Environmental Protection Agency, ADDRESSES: Comments may be mailed to II. NPL Deletion Criteria Region I, JFK Federal Bldg., Boston, MA the following address: Keith Takata, Section 300.425(e) of the NCP 02203. Copies of the Commonwealth’s Director, Superfund Division, U.S. provides that releases may be deleted submittal and EPA’s technical support Environmental Protection Agency, 75 from, or recategorized on, the NPL when document are available for public Hawthorne Street, San Francisco, CA no further response is appropriate. In inspection during normal business 94105. making a determination to delete a hours, by appointment at the Office of Comprehensive information on this release from the NPL, EPA shall Ecosystem Protection, U.S. Site is available through the EPA Region consider, in consultation with the State, Environmental Protection Agency, 9 public docket, which is located at EPA whether any of the following criteria Region I, One Congress Street, 11th Region 9’s Superfund Records Center, at have been met: floor, Boston, MA and the Division of the address above, and is available for (i) Responsible parties or other parties Air Quality Control, Department of viewing between 8 a.m. and 5 p.m., have implemented all appropriate Environmental Protection, One Winter Monday through Friday, excluding response actions required; or Street, 8th Floor, Boston, MA 02108. holidays. Additional information on the (ii) All appropriate response under FOR FURTHER INFORMATION CONTACT: Louisiana-Pacific Superfund Site, CERCLA has been implemented and no Anne E. Arnold, (617) 565–3166. including that contained in the public further action by responsible parties is SUPPLEMENTARY INFORMATION: For docket, is also available for viewing at appropriate; or additional information, see the direct the Site repositories: (iii) The remedial investigation has final rule which is located in the Rules Butte County Public Library, 1820 shown that the release poses no Section of this Federal Register. Mitchell Avenue, Oroville, CA 95966, significant threat to public health or the Authority: 42 U.S.C. 7401—7671q. (916) 538–7596 environment, and therefore, taking of Dated: July 17, 1996. Meriam Library, California State remedial measures is not appropriate. John P. DeVillars, University at Chico, Chico, CA The levels of hazardous substances, Regional Administrator, Region I. 95929–0295, (916) 898–5710 pollutants, or contaminants that remain [FR Doc. 96–21693 Filed 8–26–96; 8:45 am] at the Site are within the levels that FOR FURTHER INFORMATION CONTACT: allow for unlimited use and unrestricted BILLING CODE 6560±50±P D Frederick Schauffler, U.S. exposure. Thus, subsequent review of Environmental Protection Agency, 75 the Site pursuant to section 121(c) of Hawthorne Street (H–7–2), San 40 CFR Part 300 CERCLA, will not be required. If new Francisco, CA 94105, (415) 744–2359. information that indicates a need for [ID CAD065021594; FRL±5558±8] SUPPLEMENTARY INFORMATION: further action becomes available, EPA National Oil and Hazardous may initiate response actions. Wherever Table of Contents there is a significant release from a site Substances Pollution Contingency I. Introduction Plan; National Priorities List deleted from the NPL, the site may be II. NPL Deletion Criteria restored to the NPL without the III. Deletion Procedures AGENCY: Environmental Protection application of the Hazard Ranking IV. Basis for Intended Site Deletion Agency. System. I. Introduction ACTION: Notice of intent to delete III. Deletion Procedures Louisiana-Pacific Superfund Site from The Environmental Protection Agency the National Priorities List: Request for The following procedures were used (EPA), Region 9, announces its intent to comments. for the intended deletion of this Site: (1) delete the Louisiana-Pacific Site, located EPA Region 9 has recommended SUMMARY: The Environmental Protection in Oroville, California, from the deletion and has prepared the relevant Agency (EPA), Region 9, announces its National Priorities List (NPL) and documents; (2) the State of California intent to delete the Louisiana-Pacific requests comments on this deletion. The has concurred with the proposed Site (the ‘‘Site’’) in Oroville, California, NPL constitutes Appendix B to the deletion decision; (3) a notice has been from the National Priorities List (NPL) National Oil and Hazardous Substances published in the local newspaper and and requests public comment on this Pollution Contingency Plan (NCP), 40 has been distributed to appropriate proposed action. The NPL constitutes CFR Part 300. EPA identifies sites that federal, state, and local officials and Appendix B of 40 CFR Part 300, which present a significant risk to public other interested parties announcing the is the National Oil and Hazardous health, welfare, or the environment and commencement of a 30-day public Substances Pollution Contingency Plan maintains the NPL as a list of those comment period on EPA’s Notice of (NCP), promulgated pursuant to Section sites. As described in § 300.425(e)(3) of Intent to Delete; and (4) all relevant 105 of the Comprehensive the NCP, sites deleted from the NPL documents have been made available for Environmental Response, remain eligible for remedial actions in public review in the local Site Compensation, and Liability Act the unlikely event that conditions at the information repositories. (CERCLA) of 1980, as amended. EPA site warrant such action. Deletion of the Site from the NPL does and the State of California Department EPA will accept comments on the not itself create, alter or revoke any of Toxic Substances Control have proposal to delete this Site for thirty individual’s rights or obligations. The determined that the Site poses no days after publication of this notice in NPL is designed primarily for significant threat to human health or the the Federal Register. informational purposes and to assist environment and, therefore, further Section II of this notice explains the Agency management. As mentioned in remedial measures pursuant to CERCLA criteria for deleting sites from the NPL. Section II of this Notice, § 300.425(e)(3) are not appropriate. Section III discusses procedures that of the NCP states that the deletion of a DATES: Comments concerning the EPA is using for this action. Section IV site from the NPL does not preclude proposed deletion of this Site from the discusses the Louisiana-Pacific Site and eligibility for future response actions. NPL may be submitted on or before explains how the Site meets the deletion For deletion of this Site, EPA’s September 26, 1996. criteria. Regional Office will accept and evaluate 44026 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules public comments on EPA’s Notice of contamination in local groundwater groundwater, surface water, soil, Intent to Delete before making a final south of the L–P and Koppers plants. sediment and wood waste contain decision to delete. If necessary, the PCP contamination was also detected in various contaminants used by L–P and Agency will prepare a Responsiveness surface water, sawdust and wood waste Koppers. Concentrations on the L–P Summary to address any significant at the L–P plant and landfill. As a result, plant were found to be highest in an public comments received. the L–P site was placed on the NPL in area along the L–P/Koppers boundary. A deletion occurs when the Regional February 1986. In December 1986, EPA Contaminants in this area will be Administrator places a final notice in began remedial investigations of surface addressed as part of the Koppers the Federal Register. Generally, the NPL water, soil, sediment, groundwater, cleanup. Although PCP, arsenic and will reflect deletions in the final update wood waste and air at the L–P site to formaldehyde were detected in soils and following the Notice. Public notices and characterize the nature and extent of groundwater elsewhere at the L–P site, copies of the Responsiveness Summary contamination. EPA issued the the concentrations were below state and will be made available to interested Remedial Investigation (RI) report and federal drinking water standards (for parties by the Regional Office. the Endangerment Assessment in 1989. arsenic and PCP) and health-based Concurrent investigations of air quality levels of concern (for formaldehyde). IV. Basis for Intended Site Deletion were conducted by L–P and the Butte EPA believes that conditions at the Site A. Site Background County Air Pollution Control District pose no unacceptable risks to human over a one-year period beginning in The Louisiana-Pacific (L–P) health or the environment. 1988. The Feasibility Study (FS) report One of the three criteria for deletion Superfund Site consists of a wood was issued in May 1990. processing plant and landfill located in specifies that EPA may delete a site In September 1990, EPA issued an from the NPL if ‘‘all appropriate Butte County just south of the city limits Interim Record of Decision that required of Oroville, California (population response under CERCLA has been institutional controls as well as further implemented and no further action by 10,560). The plant and landfill are soil sampling for arsenic and 1 responsible parties is appropriate’’. located about ⁄2 mile apart and are groundwater monitoring for arsenic and separated by the Koppers Company, EPA, with the concurrence of the formaldehyde. L–P conducted the California Department of Toxic Inc., Superfund site, which is also on required sampling and monitoring the NPL. Substances Control, believes that this pursuant to an administrative order criterion for deletion has been met. Log storage, lumber production and issued by EPA in July 1991. The results hardboard manufacturing take place at Consequently, EPA is proposing indicated that contaminant deletion of this Site from the NPL. the L–P plant. It lies in the Feather River concentrations in soil and groundwater floodplain at an elevation of about 145 Documents supporting this action are at the Site do not pose a significant risk available in the Regional NPL Docket. feet above mean sea level in an area of to human health or the environment. tailings piles created by dredger mining EPA issued a final ROD in August, 1995, Dated: August 9, 1996. activities that ceased around 1936. The documenting that no further remedial Felicia Marcus, northern part of the plant is occupied by action was necessary at the L–P site. Regional Administrator. buildings and paved with asphalt. The [FR Doc. 96–21572 Filed 8–26–96; 8:45 am] C. Community Relations Activities central part of the plant has been graded BILLING CODE 6560±50±P relatively level for log storage. The Fact sheets were sent out to the public western margin and southwest corner of at key progress points in the the plant retain much of the historic, investigation. Technical exchange FEDERAL COMMUNICATIONS irregular dredge-tailing topography meetings were held monthly or COMMISSION since modified by quarrying for log-deck bimonthly at the Site during the field base material. work phase of the RI, with 47 CFR Part 20 Land use in the vicinity of the Site is representatives of public agencies and [CC Docket No. 94±54: FCC 96±284] mixed agricultural, residential, local citizen groups invited to attend. commercial and industrial. One- to five- RI/FS documents, including the Provision of Roaming Services by acre farms exist, and much of the Remedial Investigation report, the Commercial Mobile Radio Service produce and livestock is raised for home Endangerment Assessment report, and Providers use and not sold commercially. the Feasibility Study report, were sent Residential areas are located to the to the local libraries and a AGENCY: Federal Communications south, southeast, west and northeast of representative of a community group. Commission. the Site. Three schools are located Similarly, documents prepared by L–P ACTION: Notice of proposed rulemaking. within a two-mile radius of the Site. and EPA following the 1990 Interim SUMMARY: The Commission adopts a B. History ROD also were sent to local libraries. The May 1995 proposed plan was Second Report and Order and Third Georgia-Pacific Corporation distributed using EPA’s mailing list for Notice of Proposed Rulemaking purchased the present L–P site in 1969 this site. A public comment period on regarding the offering of roaming and completed construction of the the proposed plan was held between services by commercial mobile radio sawmill facility in 1970. Louisiana- May 20, 1995 and June 19, 1995. Public service providers. The Second Report Pacific Corporation took control of the notice appeared in local newspapers, and Order portion of this decision is property in 1973. The hardboard facility including the Oroville Mercury-Register, summarized elsewhere in this issue of was constructed in 1973, and L–P began prior to the opening of the public the Federal Register. The Third Notice operations at the landfill in 1978. comment period. A formal public of Proposed Rulemaking (Third NPRM) Between 1970 and 1984, L–P used a meeting was held on June 1, 1995. seeks comment on whether the fungicide spray containing Commission should adopt rules pentachlorophenol (PCP) to prevent D. Characterization of Risk governing cellular, broadband personal fungal discoloration of sawn lumber. In The results of the EPA and L–P communications services and certain 1973, a state agency discovered PCP investigations have shown that specialized mobile radio (covered SMR) Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44027 carriers’ obligations to provide facilities have been constructed and attaches to ensuring the widespread automatic roaming service, and on a service to subscribers has commenced.’’ availability of roaming, and the range of related issues. The action is 2. Roaming service can be provided inconclusiveness of the current record, taken to promote competition in through a variety of technical and the Commission requests additional commercial mobile radio services, thus contractual arrangements. The most comment on whether it would serve the securing lower prices and high quality rudimentary form of roaming is manual public interest to adopt rules governing services for consumers while roaming. Manual roaming is the only the provision of automatic roaming encouraging the rapid deployment of form of roaming that is available when service by CMRS providers to other new telecommunications technologies. there is no pre-existing contractual CMRS providers. relationship between a subscriber, or 5. The Commission’s consideration of DATES: Comments are due on or before her home system, and the system on automatic roaming issues is framed by October 4, 1996, and reply comments which she wants to roam. In order to three general questions. First, is there a are due on or before November 22, 1996. make or receive a call, a manual roamer need for Commission action? Second, if ADDRESSES: Federal Communications must establish such a relationship. the Commission is persuaded that Commission, Washington, DC 20554. Automatic roaming, by contrast, means regulation would serve the public FOR FURTHER INFORMATION CONTACT: that the roaming subscriber is able to interest, what specific action should be Jeffrey Steinberg, Wireless originate or terminate a call without taken? Third, what are the Telecommunications Bureau, (202) 418– taking any action other than turning on disadvantages of such action, especially 1310. her telephone. This form of roaming as to network costs and additional requires a contractual agreement burdens on providers, particularly SUPPLEMENTARY INFORMATION: This is a between the home and roamed-on smaller providers? synopsis of the Third Notice of systems. 6. Commenters disagree on whether Proposed Rulemaking segment of the 3. This proceeding was initiated in a incumbent CMRS providers have the Second Report and Order and Third Notice of Proposed Rulemaking and market power and the economic Notice of Proposed Rulemaking in CC Notice of Inquiry, which may be found incentive to deny roaming agreements to Docket No. 94–54, FCC 96–284, adopted at 59 FR 35664, July 13, 1994. A Second new entrants. The Commission requests June 27, 1996, and released August 13, Notice of Proposed Rulemaking (Second comment on this issue, and also on 1996. The Second Report and Order NPRM) concerning roaming was whether the geographic scope of portion of this decision is summarized released more than one year ago (60 FR broadband PCS licenses may reduce the elsewhere in this edition of the Federal 20949, April 28, 1995). At that point, importance of roaming to ensuring the Register. The complete text of this the Commission’s initial broadband PCS ability of PCS providers to compete. decision is available for inspection and auctions had just been conducted and Most roaming appears to occur in copying during normal business hours licenses were not yet issued. The adjacent markets. The relatively limited in the FCC Reference Center (Room business plans of companies entering geographic scope of cellular service 239), 1919 M Street, NW., Washington, the market for broadband PCS services areas prompted cellular carriers to DC, and also may be purchased from the were in their formative stages. No dual compete for customers based on the Commission’s copy contractor, band or dual mode phones were yet extent of their roaming networks and International Transcription Service, available, and no broadband PCS their roaming rates and features. In (202) 857–3800, 2100 M Street, NW., provider had experience trying to contrast, broadband PCS license areas Suite 140, Washington, DC 20037. negotiate a roaming agreement. The are significantly larger than cellular. Synopsis of Third Notice of Proposed comments received in response to the Accordingly, broadband PCS customers Rulemaking Second NPRM largely reflected the can go much further distances without nascent nature of the market’s roaming. This raises the question of 1. In this Third Notice of Proposed development. Based on this record, the whether broadband PCS providers need Rulemaking (Third NPRM), the Commission promulgated rules to be able to offer automatic roaming Commission continues its examination governing manual roaming in the arrangements in order to be able to of issues concerning the offering of Second Report and Order, which is compete. roaming services by commercial mobile summarized elsewhere in this issue of 7. In order to determine whether radio service (CMRS) providers. the Federal Register. However, the incumbent wireless providers have an ‘‘Roaming’’ occurs when the subscriber record yielded by these comments was incentive to, and will, deny roaming of one CMRS provider utilizes the inconclusive with respect to automatic agreements to other providers, the facilities of another CMRS provider with roaming issues. Commission seeks evidence of the which the subscriber has no direct pre- 4. The record established by the denial of such agreements, or existing service or financial relationship comments submitted to date, while not unreasonable discrimination in the to place an outgoing call, to receive an providing a basis for the Commission to provision of agreements. Additionally, incoming call, or to continue an in- adopt automatic roaming rules, does comment is requested on the likelihood progress call. Typically, although not persuade the Commission of the need to of discrimination among wireless always, roaming occurs when the seek up-to-date information on events of carriers belonging to partnerships, joint subscriber is physically located outside the past year concerning automatic ventures, and other alliances among the service area of the provider to which roaming issues. In general, the record cellular carriers. The Commission he or she subscribes. Under § 22.901 of raises the question whether, during the further seeks comment on whether the the Commission’s rules, cellular system broadband PCS buildout period, market geographic extent of a carrier’s license licensees ‘‘must provide cellular mobile conditions may create economic holdings (in particular, carriers whose radiotelephone service upon request to incentives for certain CMRS carriers to cellular and/or PCS holdings give them all cellular subscribers in good standing, discriminate unreasonably in the essentially nationwide, facilities-based including roamers, while such provision of roaming, or to otherwise operating ‘‘footprints’’) affects its subscribers are located within any engage in unjust or unreasonable incentive to enter into roaming portion of the authorized cellular practices with regard to roaming. Given agreements with smaller competitors in geographic service area * * * where the importance that the Commission a way that merits a roaming 44028 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules requirement. The Commission seeks 10. In response to suggestions raised cellular markets, it is much less comment, too, on whether requiring in the comments, the Commission asks widespread than originating and carriers to enter into roaming whether a carrier should be able to offer terminating access. More importantly, agreements will affect the value of these a more favorable rate to its affiliates. the record does not indicate that carriers’ nationwide footprints. Similarly, the Commission seeks broadband PCS or cellular providers 8. The Commission next seeks comment on whether a carrier should be need to be able to obtain ‘‘continuation comment on whether new entrants able to offer a lower rate to a of calls in progress’’ roaming capability currently have viable options to obtain geographically proximate carrier. The in order to compete. For these reasons, automatic roaming if incumbent cellular Commission also seeks comment on the Commission does not propose to providers unreasonably deny such whether, as a general matter, it would require continuation of calls in progress. agreements. The Commission notes that serve the public interest to require The Commission seeks additional although the deployment of multiple carriers to make roaming service technical information on this subject, CMRS networks will, in the long run, available to other carriers pursuant to and requests comment on this analysis. increase the number of parties with one-way agreements under the same 13. Comment is also sought on which roaming agreements can be terms and conditions as under whether and how rules governing obtained in any area, such networks will reciprocal agreements. The Commission automatic roaming could be at odds not be widely available during the invites comment on whether carriers with the Commission’s general policy of construction period of broadband PCS. should be permitted to refuse to enter allowing market forces, rather than The Commission solicits comment on into automatic roaming agreements with regulation, to shape the development of the timing of such construction period. other facilities-based carriers in their wireless technologies. The AT&T argues that, to the extent this is markets, and on the advantages and Commission’s goal would be to make a problem at all, a PCS carrier can disadvantages of a rule that would any rule it adopts consistent with such obtain roaming service during the facilitate such ‘‘in-region’’ roaming. a policy. For example, under such a buildout period in any market by Comment is further solicited on how in- rule, if systems used different entering into a contractual agreement region roaming may affect carriers’ technologies or operated on different with a cellular carrier that already incentives to build out their networks. frequencies, the Commission believes possesses a roaming agreement in that The Commission also seeks comment on the carrier seeking to enable its market. The Commission seeks how an exception that permits carriers subscribers to roam on another system comment on whether AT&T’s proposal to deny roaming agreements to in-region would have the burden of developing for new entrants to ‘‘piggyback’’ on competitors could be administered, and implementing any technology existing roaming arrangements is a given the different geographic scope of necessary to achieve that result. reasonable means for carriers to obtain cellular, broadband PCS and covered Furthermore, on the basis of the existing roaming capability. SMR licenses and operations. record, the Commission believes any 11. The Commission, in response to automatic roaming rule should be 9. To the extent that a basis for arguments that special rules are sufficiently flexible to permit a carrier to Commission action on automatic necessary to protect the right of resellers change its technology for legitimate roaming is established, comment is to enter into roaming agreements, does business reasons without any obligation invited on what the nature of that action not propose to regulate the prices that to make its system accessible to roamers should be. The Commission requests carriers may charge resellers (or anyone comment on whether, as a condition of else) for roaming, other than perhaps to using different technologies, to the license, it should require cellular, prohibit discrimination in the prices extent such a technology change is broadband PCS and covered SMR charged to similarly situated carriers. otherwise permitted by the providers which enter into roaming However, the Commission seeks Commission’s rules. A carrier could not, agreements with other such providers to comment on the additional costs and however, introduce features into its make like agreements available to burdens that may be imposed on system in order to obstruct service to similarly situated providers, where facilities-based carriers if they are roamers from systems using otherwise technically compatible handsets are required to separately enter into compatible technologies. The being used, under nondiscriminatory agreements with multiple resellers. The Commission seeks comment on this rates, terms and conditions. The Commission also seeks comment on analysis. Commission clarifies that such a rule what, if any, benefits might be generated 14. Requiring non-discrimination in would need to recognize that not all by enabling resellers to obtain roaming roaming agreements would, carriers are similarly situated. Thus, agreements. theoretically, generate certain benefits. such a rule need not require carriers to 12. One of the principal reasons for However, there also are potential offer roaming agreements to all other the Commission’s tentative conclusion downsides to imposing an automatic carriers on the same terms and in the Second NPRM to monitor the roaming requirement. First, imposing conditions, or even to offer roaming development of roaming, rather than to such a requirement is inconsistent with service to any carrier at all. The propose rules at that time, was its the Commission’s general policy of Commission seeks comment on the concern that technical factors might allowing market forces, rather than question of whether a covered CMRS render compliance with rules unduly regulation, to shape the development of provider that enters into a roaming costly for providers, or that its rules wireless services. Similarly, it could be agreement with another CMRS provider, might inadvertently impede viewed as at odds with Congress’ goal however, should be required to offer technological progress. Based on the in adopting the Telecommunications like roaming agreements to other comments received, the Commission is Act of 1996 of creating a ‘‘pro- similarly situated providers upon not persuaded that an automatic competitive, deregulatory national reasonable request, without roaming rule would have such an effect policy framework’’ for the United States unreasonably discriminating on rates, unless it required direct interconnection telecommunications industry. Does the terms, and conditions. The Commission of networks for the continuation of calls importance of roaming and the potential seeks information and comment on the in progress. While handoff of calls in for discrimination warrant a departure cost and burden of such a requirement. progress is available at this time in some from the Commission’s general Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44029 competitive, deregulatory approach to 18. Regarding establishment of a purposes of providing a wireless? sunset period, the Commission agrees telecommunications service from using 15. Second, cellular carriers compete with those who contend that roaming that information for any other purpose. vigorously on the basis of their roaming regulations should apply only for a The Commission tentatively concludes services. If the Commission adopts an transitional period. The Commission that the treatment of roaming-related automatic roaming non-discrimination believes that once broadband PCS access to proprietary information is requirement, will carriers still be able to providers’ buildout periods are governed by section 222. differentiate their roaming services? If completed, sufficient wireless capacity they cannot, will this lessen will be available in the market and, as Filing Procedures competition in the wireless market? a result, any roaming regulations, whether manual or automatic, likely 20. Pursuant to applicable procedures Also, what impact will a roaming set forth in §§ 1.415 and 1.419 of the requirement have on the development of will become superfluous. The Commission’s Rules,2 interested parties new and improved roaming features? Commission further believes that, given may file comments on or before October 16. Third, the imposition of an the availability of sufficient capacity, a 4, 1996, and reply comments on or automatic roaming requirement could carrier would not have either the before November 22, 1996. To file be costly and burdensome. There are incentive or the ability to unreasonably formally in this proceeding, you must currently approximately 1,400 cellular deny manual roaming to an individual file an original and four copies of all systems; the Commission anticipates subscriber, or to unreasonably refuse to that broadband PCS and covered SMR enter into an automatic roaming comments, reply comments, and providers, once licensed, will expand agreement with another CMRS provider, supporting comments. If you want each that number appreciably. What network because some other carrier in its service Commissioner to receive a personal and administrative costs are associated area would be willing to do so. The copy of your comments, you must file with entering into and maintaining Commission anticipates, due to its an original plus eight copies. You 1 roaming agreements among all such broadband PCS build-out requirement, should send comments and reply carriers? Will carriers, particularly that the market for cellular, broadband comments to the Office of the Secretary, smaller carriers, be able to absorb these PCS and covered SMR services will be Federal Communications Commission, costs or to recover them from their substantially competitive within five Washington, DC 20554. A copy of each customers or other carriers? In this years after the Commission completes filing also should be sent to regard, the Commission emphasizes that the initial round of licensing broadband International Transcription Service it is not considering requiring carriers to PCS providers. The Commission (ITS), 2100 M Street, NW., Suite 140, upgrade their networks or implement therefore believes that any action taken Washington, DC 20037, (202) 857–3800, any technology solely to enable roamers concerning automatic roaming should and to Rita McDonald, Federal sunset five years after award of the last on different frequencies or with Communications Commission, Wireless group of initial licenses for currently different air interface devices to Telecommunications Bureau (WTB), allocated broadband PCS spectrum. The complete calls on their systems. Policy Division, 2025 M Street, NW., Commission seeks comment on this Similarly, the Commission is not Room 5202, Washington, DC 20554. issue. The Commission also seeks considering requiring carriers to Comments and reply comments will be comment on whether, for the same interconnect their networks to ensure available for public inspection during reasons, the manual roaming rule that calls in progress can continue. adopted in the Second Report and Order regular business hours in the Reference 17. Some commenters argue that a portion of this decision also should Center of the Federal Communications roaming requirement would unduly sunset at the expiration of this five-year Commission, 1919 M Street, NW., Room expose CMRS providers to losses due to period. The Commission notes that this 239, Washington, DC 20054. fraud, or that fraud cannot be controlled is the same sunset period recently 21. Parties are encouraged to submit without direct interconnection of adopted for its resale rule, and that the comments and reply comments on switches. The Commission seeks further commencement of the five-year period diskette. Such diskette submissions comment on these arguments. The will be announced by Public Notice. would be in addition to and not a Commission notes that cellular carriers 19. Finally, in order to provide substitute for the formal filing have exercised various options to automatic roaming and adequately requirements presented above. Parties protect themselves under the existing protect itself against fraud, a carrier submitting diskettes should submit manual roaming rule, such as requiring would have to make arrangements with them to Rita McDonald of the WTB manual roamers to supply a valid credit a subscriber’s home system to verify the Policy Division. Such a submission card number. The Commission seeks validity of the subscriber’s account. The should be on a 3.5 inch diskette comment on whether similar protective Second NPRM noted that such measures would be available and formatted in an IBM compatible form arrangements, as well as other using WordPerfect 5.1 for Windows equally effective if an automatic arrangements that may be necessary for roaming rule is adopted. The software. The diskette should be subscribers to use special features while submitted in ‘‘read only’’ mode, and Commission also seeks comment on roaming, may implicate concerns should be clearly labelled with the whether carriers could include in their relating to subscriber privacy and carrier party’s name, the proceeding (CC Docket agreements with other carriers control over proprietary information, No. 94–54), the type of pleading provisions to suspend roaming service and it requested comment on these in case of fraud, or other appropriate issues. Since that time, however, (comment or reply comment) and the anti-fraud provisions, so long as they do Congress has amended the date of submission. so on a nondiscriminatory basis, and Communications Act by adding a new 22. This is a non-restricted notice and whether a particular carrier that poses section 222, which generally prohibits a comment rulemaking proceeding. Ex an unusually high risk of fraud could for carrier that obtains proprietary parte presentations are permitted, that reason be differently treated with information from another carrier for except during the Sunshine Agenda respect to the terms of a roaming agreement. 1 See 47 CFR 24.203. 2 47 CFR 1.415, 1.419. 44030 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules period, provided they are disclosed as and conditions. The Commission also various services affected by this provided in the Commission’s Rules.3 seeks comment on the potential costs of proceeding. Since the Commission has an automatic roaming rule, including not defined small business with respect Initial Regulatory Flexibility Analysis whether such a rule would to cellular service, we are utilizing the I. Reason for Action. inadvertently impede technological Small Business Administration’s progress, whether it would interfere 23. This Third Notice of Proposed definition applicable to radiotelephone with free and open competition, Rulemaking (Third NPRM) requests companies—i.e., an entity employing whether it would expose providers to 5 comment on whether the Commission fewer than 1,500 persons. With respect the risk of losses due to fraud, and what should promulgate transitional to broadband PCS, the Commission has administrative costs would be involved. regulations governing certain refined the definition of a small The Commission seeks comment on commercial mobile radio service business to mean firms that have had how any rule should be drafted to (CMRS) providers’ obligations to enter average gross revenues of not more than minimize such costs. An additional into ‘‘automatic’’ roaming agreements $40 million in the preceding three objective is to obtain information on the 6 with other carriers. The Commission calendar years. With respect to 800 advantages, disadvantages, and determines that a further NPRM is MHz and 900 MHz SMR services, the implications of sunsetting the manual Commission has defined small necessary because the existing record roaming rule. does not sufficiently illuminate the businesses as firms that have had costs and benefits of an automatic III. Legal Basis for Proposed Rules. average gross revenues of not more than $15 million in the preceding three roaming rule. In particular, at the time 26. If adopted, any changes to the 7 comments were filed no broadband PCS calendar years. Commission’s roaming rules would be 30. The Commission seeks comment providers were in operation, and most authorized under sections 1, 4(i), 4(j), providers were only beginning to as to whether our use of these 201, 202, 303(r), 309, 332, and 403 of definitions is appropriate in this formulate their business plans. the Communications Act of 1934, as Therefore, the record does not reflect context. Additionally, we request amended, 47 USC 151, 154(i), 154(j), commenters to identify whether they are the actual experience of broadband PCS 201, 202, 303(r), 309, 332, 403. providers in attempting to negotiate small businesses under these roaming agreements. Although some IV. Description and Estimate of Small definitions. For commenters that are a comments in the record suggest that an Entities Subject to the Rules. subsidiary of another entity, we seek this information for both the subsidiary automatic roaming rule may be 27. Pursuant to the Contract with and the parent corporation or entity. necessary to ensure new entrants an America Advancement Act of 1996,4 the equal opportunity to compete, other Commission is required to estimate in V. Reporting, Recordkeeping, and Other commenters argue that established its Final Regulatory Flexibility Analysis Compliance Requirements. providers do not have an incentive to the number of small entities to which a 31. The proposals under deny automatic roaming agreements or rule will apply, provide a description of consideration in this Third NPRM unreasonably discriminate against new such entities, and assess the impact of would not involve any reporting or entrants. the rule on such entities. To assist the recordkeeping requirements. The only 24. The Commission also requests Commission in this analysis, likely compliance requirement would be comment on whether the manual commenters are requested to provide to refrain from prohibited roaming rule adopted in the Second information regarding how many total discrimination in offering roaming Report and Order portion of this CMRS entities would be affected by the agreements to other carriers. If a sunset decision should sunset five years after regulations on which the Commission of the manual roaming rule is adopted, the last group of initial licenses for seeks comment in this Third NPRM. In the effect would be to relieve affected currently allotted broadband PCS particular, the Commission seeks providers from compliance spectrum is awarded. Although the estimates of how many affected entities requirements after the sunset takes Commission expects that market forces will be considered small businesses. effect. will render a manual roaming rule 28. The regulations on which the unnecessary once broadband PCS Commission seeks comment, if adopted, VI. Significant Alternatives Considered licensees have substantially built out would apply to providers of cellular, and Rejected. their networks, the existing record is broadband PCS, and geographic area 32. The Commission considered and insufficiently developed to support a 800 MHz and 900 MHz specialized rejected the alternative of adopting an decision regarding the advantages, mobile radio services, including automatic roaming rule without further disadvantages, and implications of licensees who have extended comment because it concluded that the sunsetting the manual roaming rule. implementation authorizations in the record before it did not establish that an 800 MHz or 900 MHz SMR services, II. Objectives of Proposed Rules. automatic roaming rule is necessary, either by waiver or under § 90.629 of the and did not sufficiently develop the 25. The Commission’s principal Commission’s rules. However, the rules costs of any such rule. At the same time, objective in this Third NPRM is to would apply to SMR licensees only if the Commission rejected the alternative obtain information on the costs and they offer real-time, two-way voice of declining to adopt an automatic benefits of an automatic roaming rule. In service that is interconnected with the roaming rule without further inquiry. particular, the Commission seeks public switched network. Some commenters made cogent comment on whether it should adopt a 29. As explained in the Final arguments that established providers rule requiring providers that enter into Regulatory Flexibility Analysis included might have the ability and incentive to roaming agreements with any other in the full text of this Second Report disadvantage their competitors by provider to make like agreements and Order and Third Notice of Proposed available to similarly situated providers Rulemaking, there are different 5 13 CFR § 121.201, Standard Industrial under nondiscriminatory rates, terms, definitions of ‘‘small business’’ for the Classification Code 4812. 6 See 47 CFR § 24.720(b). 3 See generally 47 CFR 1.1202, 1.1203, 1.1206(a). 4 Pub. L. 104–121, 110 Stat. 847 (1996). 7 See 47 CFR § 90.814(b)(1). Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44031 denying them nondiscriminatory by the deadlines specified in paragraph Avoidance Standards, NHTSA, 400 7th roaming agreements, and the 37 of the Second Report and Order and Street, SW, Room 5320, Washington, DC Commission believed these arguments Third Notice of Proposed Rulemaking. 20590. Telephone 202–366–4931; Fax should be further explored in light of 202–366–4329. List of Subjects in 47 CFR Part 20 ongoing developments. 33. The Commission did determine, Communications common carriers. SUPPLEMENTARY INFORMATION: however, that certain forms of Federal Communications Commission Regulatory Reform regulation should not be proposed in William F. Caton, Calling for a new approach to the way the Third NPRM. In particular, the Acting Secretary. government interacts with the private Commission rejected any proposal that sector, President Clinton asked the would require carriers to adopt [FR Doc. 96–21796 Filed 8–26–96; 8:45 am] Executive Branch agencies to improve particular technology or modify their BILLING CODE 6712±01±P networks so as to offer roaming the regulatory process and seek non- arrangements to any provider. Similarly, regulatory means of working with the the Commission determined not to DEPARTMENT OF TRANSPORTATION public and regulated industries. propose regulation of agreements Specifically, the President requested between carriers to hand off calls in National Highway Traffic Safety that agencies: (1) cut obsolete progress because the record indicated Administration regulations; (2) reward results; (3) meet with persons affected by and interested that such arrangements may be 49 CFR Part 571 technically and administratively in its regulations; and (4) use complex and because there was no [Docket No. 96±093; Notice 1] consensual rulemaking more frequently. evidence that access to such This notice responds to the third item arrangements is important to providers’ Public MeetingÐHeavy Vehicle Safety by scheduling a meeting with the public ability to compete. The Commission with regard to the safety of heavy AGENCY: National Highway Traffic vehicles as affected by their design and also rejected any alternative that would Safety Administration, Transportation. require carriers to do more than refrain performance characteristics. ACTION: Notice of public meeting. from discrimination among similarly Issues to be Addressed situated providers. Thus, the SUMMARY: This document announces a This public outreach meeting Commission does not propose to require public meeting at which the National represents a continuation of the carriers to offer roaming agreements Highway Traffic Safety Administration agency’s longstanding policy of working under any particular terms and (NHTSA) will seek information from collaboratively with all parties who are conditions, or even to offer roaming interested persons on the design and concerned about this vital aspect of service to any carrier at all. performance of heavy trucks and motor vehicle and highway safety. 34. In addition, the Commission intercity and transit buses, as related to rejected the alternative of proposing to Truck crash involvement rates have their safe operation. NHTSA also will improved markedly over the past 10 apply any automatic roaming rule to consider suggestions for rulemakings CMRS providers other than cellular, years, a time period during which truck and other actions that the agency should travel grew 43 percent. Between 1982 broadband PCS, and covered SMR take to enhance the safety performance carriers because the record did not and 1992, the fatal crash involvement of heavy vehicles. This document also rate for medium and heavy trucks fell 38 establish that ubiquitous roaming invites written comments on the same capability is important to the percent. The comparable rate for subject. School bus issues are excluded passenger cars dropped 39 percent competitive success or utility of these from this notice, since they are being services. The Commission also rejected during that same time period. Between addressed under separate agency 1989 and 1993, the involvement rate of the alternative of proposing to continue actions. any automatic roaming rule indefinitely medium and heavy trucks in all crashes DATES: Public meeting: The meeting will (both fatal and non-fatal) decreased 11 because it believes that any necessity be held on October 17, 1996, from 10:00 that may now exist for such a rule percent. Notwithstanding these positive am until 4:00 pm. Those wishing to trends, there were 445,000 crashes in would be obviated once broadband PCS make an oral presentation at the meeting networks are substantially built out. 1994 involving a medium/heavy truck. should contact Darlene Curtin at the A total of 5,112 people were killed in With respect to manual roaming, the address, telephone number, or fax Commission requests comment on a those crashes, 13 percent of all those number listed below by September 30, killed in highway related crashes that sunset for similar reasons, but it rejected 1996. the alternative of imposing a sunset at year. The majority of those killed were Written comments: Written comments occupants of other vehicles involved in this time because the existing record are due by October 28, 1996. does not develop the implications of collisions with medium/heavy trucks. ADDRESS: Public meeting: The public such a sunset. To address this issue, the agency has meeting will be held at the Westin worked extensively with industry and VII. Federal Rules That Overlap, Hotel, Renaissance Center, Detroit, other interested parties to develop Duplicate, or Conflict with These Michigan 48243, Phone (313) 568–8200. programs that will lead to effective and Proposed Rules. Written comments: All written practical solutions for improving heavy 35. None. comments should be mailed to the vehicle safety. Most recently, in June Docket Section, National Highway 1995, the agency published a 5-year VIII. IRFA Comments Traffic Safety Administration, Room Heavy Vehicle Safety Research Program 36. The Commission requests written 5109, 400 7th Street, SW., Washington, Plan which contains a listing of topics public comment on the foregoing Initial DC 20590. Please refer to the docket and that were identified as being appropriate Regulatory Flexibility Analysis (IRFA). notice number at the top of this notice targets for further improvements in Comments must have a separate and when submitting written comments. heavy vehicle safety design and distinct heading designating them as FOR FURTHER INFORMATION CONTACT: performance. Prospective commenters responses to the IRFA and must be filed Darlene Curtin, Office of Crash and participants are referred to that 44032 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules document as background material for speaking at the public meeting should DEPARTMENT OF COMMERCE this meeting. Copies are available upon limit their presentations to 15 minutes. request to Mr. James Britell at (202) If a presentation will include slides, National Oceanic and Atmospheric 366–5678 or fax at (202) 366–7237. motion pictures, or other visual aids, the Administration NHTSA is interested in obtaining presenters should bring at least one 50 CFR Part 227 and 425 information from the public about how copy to the meeting for submission to the agency, and the private sector, can NHTSA, so that NHTSA can readily DEPARTMENT OF THE INTERIOR best move forward over the next two to include the material in the public five years to foster, or possibly require, record. At the meeting, NHTSA staff Fish and Wildlife Service the implementation of additional may ask questions of any speaker, and technological improvements in heavy any participant may submit written 50 CFR Part 17 and 425 trucks and intercity and transit buses. questions for the NHTSA staff. NHTSA The agency’s strategic research plan Endangered and Threatened Species; may, at its discretion, address the latter identified a number of broad subject Notice of Public Meetings, Public areas where technological opportunities to other meeting participants. There will Hearings and Extension of Comment exist for safety enhancement, including: be no opportunity for participants Period on Proposed Threatened Status * Advanced technology electronics- directly to question each other. If time for a Distinct Population Segment of based collision avoidance systems permits, persons who have not Anadromous Atlantic Salmon (Salmo * Driver/vehicle interaction, requested time, but would like to make Salar) in Seven Maine Rivers ergonomics/human factors a statement, will be afforded an * Braking performance opportunity to do so. AGENCIES: National Marine Fisheries * Vehicle dynamic stablity/control/ A schedule of participants making Service, National Oceanic and handling oral presentations will be available at Atmospheric Administration, * Truck occupant protection and Commerce; and Fish and Wildlife the designated meeting room. A copy of inter-vehicle collision aggressivity Service, Interior. reduction. any written statements provided to Commenters and participants are NHTSA at the meeting will be placed in ACTION: Reopening of public comment encouraged to focus on these topics, or the docket relating to this notice. A period and announcement of public others if they deem it appropriate, when verbatim transcript of the meeting will meetings and hearings. preparing their suggestions and be prepared and placed in the NHTSA SUMMARY: The National Marine comments. docket as soon as possible after the Among other things, NHTSA is meeting. Fisheries Service and the Fish and holding this meeting to help assess how Wildlife Service, collectively the Participation in the meeting is not a Services, give notice that the public best to proceed with resource allocation prerequisite for the submission of and prioritization (both public and comment period has been reopened in written comments. NHTSA invites regards to the proposed threatened private sector), agenda setting (both written comments from all interested research and regulatory), and other status designation for a distinct parties. It is requested but not required activities for improving the safety population segment of anadromous that 10 copies be submitted. performance of heavy trucks and Atlantic Salmon (Salmo Salar) in the intercity and transit buses. The agency NHTSA will continue to file relevant Sheepscot, Ducktrap, Narraguagus, hopes to obtain information from the information in the docket as it becomes Pleasant, Machias, East Machias, and public, including private and available after the closing date. It is Dennys Rivers in Marine. There will be commercial drivers, product suppliers, therefore recommended that interested three public meetings to present motor vehicle and trailer manufacturers, persons continue to examine the docket information and answer questions, followed immediately by more formal vehicle and traffic safety organizations, for new material. public hearings to accept verbal and consumer groups, and others. This Issued: August 22, 1996. information will help NHTSA focus its written comments about the designation rulemakings and other actions. Barry Felrice, of this population segment as NHTSA will entertain suggestions for Associate Administrator for Safety threatened. The comment period is rulemakings, research, and other Performance Standards. reopened for a period of 45 days. activities that the agency should [FR Doc. 96–21819 Filed 8–26–96; 8:45 am] DATES: The combined public meeting undertake. Suggestions for agency BILLING CODE 4910±59±P and hearings will be held from 7 to 10 action should be accompanied by a p.m. on September 17, Augusta, Maine; rationale for the action and the expected from 7 to 10 p.m. on September 18, benefits and other consequences. Ellsworth, Maine; and from 7 to 10 p.m. Procedural Matters on September 19, Machias, Maine. All scientific data and comments must be The public meeting will begin at submitted to the Services by October 11, 10:00 am on October 17, 1996, and is 1996. scheduled to conclude at 4:00 pm. It will take place on the day following the ADDRESSES: Comments: Please send any close of the SAE’s Annual Truck and written comments to Paul Nickerson, Bus Meeting and Exposition. The U.S. Fish and Wildlife Service, 300 location will be the Westin Hotel, Westgate Center Drive, Hadley, Renaissance Center, Detroit, Michigan. Massachusetts 01035, or Mary Colligan, Persons wishing to speak at the public National Marine Fisheries Service, One meeting should contact Darlene Curtin Blackburn Drive, Gloucester, by the indicated date, and must include Massachusetts 01930. requests for audio-visual aids. Those Public Meetings and Hearings: Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules 44033

1. Cushnoc Room, Augusta Civic In response to the request for public ACTION: Reallocation; request for Center, Community Drive, Augusta, hearings, the Services have scheduled comments. Maine. three combined public meetings and 2. Ellsworth Middle School, 20 hearings. The meetings will run from SUMMARY: NMFS proposes to reallocate Forrest Avenue, Ellsworth, Maine. 7:00 p.m. to 8:15 p.m. and will be the projected unused amount of Pacific 3. Science 102, University of Maine— followed by a 15 minute intermission. cod from vessels using trawl gear to Machias, 9 O’Brien Avenue, Machias, During the public meeting, the Services vessels using hook-and-line or pot gear Maine. will make a brief presentation and will in the Bering Sea and Aleutian Islands FOR FURTHER INFORMATION CONTACT: Paul informally answer questions about the management area (BSAI) and is inviting Nickerson at (413) 253–8615 or Mary proposal; state officials will also make a comments. The proposed action is Colligan at (508) 281–9116. brief presentation on the status of the necessary to allow the 1996 total conversation plan and informally allowable catch (TAC) of Pacific cod to SUPPLEMENTARY INFORMATION: answer questions about the plan. The be harvested. It is intended to promote Background meeting will not be recorded and will the goals and objectives of the North not be part of the formal record. Pacific Fishery Management Council Section 4(b)(5)(E) of the Endangered (Council). Species Act requires that a public The public hearings, which will begin DATES: Comments must be received at hearing be held on proposed regulations at 8:30 p.m., will provide an the following address no later than 4:30 if requested within 45 days of the opportunity for interested individuals to p.m., Alaska local time, September 5, proposal’s publication in the Federal enter formal statements on the proposal, 1996. Register. On September 29, 1995 (60 FR which will become part of the 50530), the Services published a administrative record. Those parties ADDRESSES: Comments may be sent to proposed rule to list the DPS of Atlantic wishing to make statements should Ronald J. Berg, Chief, Fisheries salmon as threatened. Public hearing present them to the Services at the start Management Division, Alaska Region, requests were received during the of the hearing. Oral statements must be NMFS, P.O. Box 21668, Juneau, AK allotted time period. The public limited to five minutes in length, 99802–1668, or delivered to the Federal comment period for this proposed however, there is no limit to the length Building, 709 West 9th Street, Room action officially closed on December 28, of written comments or materials. Oral 453, Juneau, AK Attn: Lori Gravel. 1995. Due to federal furloughs and and written statements receive equal FOR FURTHER INFORMATION CONTACT: legislative and funding restrictions consideration during deliberations. Andrew N. Smoker, 907–586-7228. imposed, the Departments of Commerce Written comments may now be SUPPLEMENTARY INFORMATION: The and Interior were not able to hold the submitted through October 11, 1996 to groundfish fishery in the BSAI exclusive requested public hearings during the either of the offices in the ADDRESSES economic zone is managed by NMFS original comment period. section. according to the Fishery Management On April 26, 1996, the President Author Plan for the Groundfish Fishery of the waived the moratorium on ESA listing Bering Sea and Aleutian Islands Area The primary authors of this notice are actions, as authorized by the FY 96 (FMP) prepared by the Council under Mary Colligan and Paul Nicherson Omnibus Appropriations Act for both authority of the Magnuson Fishery (addresses are above). the Departments of Commerce and Conservation and Management Act. Interior. The Services may now proceed Authority: The authority for this section is Fishing by U.S. vessels is governed by with previously pending listing actions. the ESA (16 U.S.C. 1531–1544). regulations implementing the FMP at Consequently we are now reopening the Dated: August 14, 1996. subpart H of 50 CFR part 600 and 50 comment period on this proposed rule Ralph C. Pisapia, CFR part 679. and announcing public hearings. The Acting Regional Director, Region 5. The Director, Alaska Region, NMFS, proposed rule published in September, Dated: August 22, 1996. has determined that vessels using trawl included a special 4(d) provision that Rennie S. Holt, gear will not be able to harvest 15,000 allowed the state of Maine the Acting Director, Office of Protected Resources. metric tons (mt) of Pacific cod allocated opportunity to develop a conservation to those vessels under [FR Doc. 96–21505 Filed 8–26–96; 8:45 am] plan for the species. Following § 679.20(a)(7)(i)(A). publication of the proposed rule the BILLING CODE 4310±55±M As of July 27, 1996, NMFS estimates Governor of Maine issued an Executive 47,540 mt remain in the trawl gear share Order creating a task force to draft the of the 1996 Pacific cod TAC and conservation plan. That task force has DEPARTMENT OF COMMERCE projects that trawl gear will take 32,540 been actively working on the plan since National Oceanic and Atmospheric mt during the remainder of 1996. Trawl fisheries that will take Pacific October, 1995. Separate hearings will be Administration held by state officials on the cod include the directed Pacific cod, conservation plan in early September. 50 CFR Part 679 yellowfin sole, pollock, and rockfish During this comment period the fishery. NMFS closed directed fishing Services desire any scientific and [Docket No. 960129019±6019±01; I.D. for Pacific cod by vessels using trawl commercial data that may have become 081696B] gear in the BSAI effective June 23, 1996, available since closure of the previous Fisheries of the Exclusive Economic until October 25, 1996, to prevent comment period on December 28, 1995. Zone Off Alaska; Groundfish of the exceeding the first seasonal bycatch The Services final determination Bering Sea and Aleutian Islands Area; allowance of Pacific halibut apportioned whether to list the DPS of Atlantic Reallocation of Pacific Cod to the trawl Pacific cod fishery category salmon will consider all comments in the BSAI. The directed fishery for received during this and earlier AGENCY: National Marine Fisheries Pacific cod with trawl gear will open comment periods and may result in Service (NMFS), National Oceanic and October 25, 1996. One hundred eighty final regulations that differ from the Atmospheric Administration (NOAA), nine mt of prohibited species bycatch proposal of September 29, 1995. Commerce. allowance of halibut mortality remain in 44034 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Proposed Rules that allocation. Based on 1995 halibut combined hook-and-line/pot gear Therefore, in accordance with bycatch rates for that fishery, 11,040 mt capacity after September 1, 1996 is § 679.20(a)(7)(ii), NMFS proposes to of Pacific cod is expected to be 34,500 mt. Without the proposed apportion the projected unused amount, harvested in the directed fishery for reallocation of Pacific cod from trawl to 15,000 mt of Pacific cod from vessels Pacific cod with trawl gear. The trawl hook-and-line and pot gear, 20,000 mt of using trawl gear to vessels using hook- yellowfin sole, rockfish, and pollock Pacific cod is expected to be available and-line or pot gear. directed fisheries will take Pacific cod for vessels fishing with those gears. NMFS invites public comments and as bycatch. Based on the remaining During 1995 NMFS did not reallocate will consider those received during the halibut mortality and the ratio of halibut unused amounts of Pacific cod from comment period in determining mortality to Pacific cod caught in those vessels using trawl gear to vessels using whether to reallocate an unused amount directed fisheries after August 1, 1995, hook-and-line/pot gear until November of Pacific cod from trawl gear to hook- 21,495 mt of Pacific cod are estimated when the trawl component of the and-line or pot gear. to be needed. fishery had completed its season and The directed fishery for Pacific cod by the trawl catch for 1995 was realized. As Classification vessels using hook-and-line gear will a consequence, a portion of the hook- This action is taken under 50 CFR reopen on September 1 when 360 mt of and-line/pot fleet was unable to 679.20, and is exempt from review prohibited species bycatch allowance of participate and the remainder was under E.O. 12866. halibut mortality become available for unable to sustain a continuous fishery Authority: 16 U.S.C. 1801 et seq. that fishery. Based on the ratio of Pacific and experienced unnecessary expenses cod caught to halibut mortality during associated with initiating the short-term Dated: August 20, 1996. the September and October hook-and- fishery during November. In addition, Richard H. Schaefer, line fishery in 1995, NMFS estimates the halibut mortality incurred per Director, Office of Fisheries Conservation and that hook-and-line gear will take 31,000 metric ton of Pacific cod caught during Management, National Marine Fisheries mt of Pacific cod. Pot gear is expected the last opening of the fishery in 1995 Service. to take an additional 3,500 mt during was higher, providing less desirable [FR Doc. 96–21709 Filed 8–21–96; 4:07 pm] September and October of 1996. The utilization of halibut mortality. BILLING CODE 3510±22±F 44035

Notices Federal Register Vol. 61, No. 167

Tuesday, August 27, 1996

This section of the FEDERAL REGISTER produced from agricultural commodities and Eligibility for processes to produce such products. contains documents other than rules or Proposals are invited from any private proposed rules that are applicable to the * To conduct product and co-product/ public. Notices of hearings and investigations, process development and demonstration firm, individual, public or private committee meetings, agency decisions and projects, as well as provide educational institution or organization, rulings, delegations of authority, filing of commercialization assistance for industrial federal agency, cooperative, or non- petitions and applications and agency products from agricultural and forestry profit organization. Cooperative projects statements of organization and functions are materials. involving combinations of the above examples of documents appearing in this * To encourage cooperative development organizations, especially with private section. and marketing efforts among manufacturers, sector leadership, are strongly private and government laboratories, encouraged. Since this is basically a universities, and financiers to assist in program to commercialize new DEPARTMENT OF AGRICULTURE bridging the gap between research results and marketable, competitive products and products, and since repayment is Alternative Agricultural Research and processes. expected, it is much more likely that Commercialization (AARC) * To collect and disseminate information awards will be given to private firms. Corporation; Request for Proposals about commercialization projects that use Small business entrepreneurs are agricultural or forestry materials and preferred. The private sector partner AGENCY: Alternative Agricultural industrial products derived therefrom. must take the lead when an educational Research and Commercialization Under the Program, the AARC institution is involved. (AARC) Corporation, USDA. Corporation will award competitive Program Emphasis ACTION: AARC Corporation Request for cooperative agreements to support The AARC Corporation Board has Proposals. primarily pre-commercialization or approved funding for about 60 projects commercialization tasks, including using 1993–96 appropriated funds. Program Description marketing for the development of new Another six projects are currently under industrial products or processes derived Purpose consideration for funding with 1996 from agricultural or forestry materials. The Alternative Agricultural Research appropriations. Projects include use of a All other things equal, the nearer to and Commercialization (AARC) broad range of agricultural and forestry commercialization a product or process Corporation is requesting proposals to materials such as: soybean oil, soybean is, the higher the likelihood of funding use agricultural (traditional and new meal, cotton lint, peanut hulls, corn by the AARC Corporation. crops, animal by-products or forestry) husks, wheat straw, milkweed, kenaf, materials in industrial products or The AARC Corporation will accept castor oil, rapeseed, cuphea, crambe, processes. The authority for the AARC either pre-proposals or full proposals. ethanol, mesquite, hesperaloe, program is contained in Sections 1660 Pre-proposals will be evaluated to lesquerella, agricultural and forestry and 1661 of the Food, Agriculture, determine if an idea has sufficient merit wastes, biomass, and plant proteins. Conservation, and Trade Act of 1990, to warrant a full proposal, including if Examples of products include: Pub. Law No 101–624, 7 U.S.C. 5904, as it meets the AARC Corporation’s biocontrol agents, medium-density amended by the Federal Agricultural mission, and to provide suggestions for fiberboard and building materials from Improvement and Reform (FAIR) Act of improvement. Full proposals will straw, hollow veneer poles, food April 4, 1996, (Pub. Law 104–127, Title require more time to complete and will packaging, bonded paper from kenaf, oil VII, subtitle A, chapter 2, section be evaluated to determine if they absorbents, fillers and yarn, spinning 1657c). Potential funding for proposals warrant funding. The AARC fibers, highway signposts and railroad to provide commercialization assistance Corporation may ask applicants ties, building and furniture composites, to private companies using the submitting either pre-proposals or full heating and electricity, potting mixes, Cooperative Agreements Program proposals to make an oral presentation. biodiesel—as replacement for (Program) to assist emerging industrial All proposals will be evaluated by petroleum, biodegradable lubricants, products/processes involving the use of external reviewers, as well as by the coatings, cosmetics, detergents, personal agricultural materials in non-food, non- AARC Corporation staff, before the care products, compost, carrier for crop feed, non-traditional fiber products or proposals (along with review comments) protection materials, and cat litter. processes. The Board of Directors are provided to the Board of Directors. reserves the right to use only certain The Board makes final funding Evaluation Criteria types of authorized assistance. decisions. The AARC Corporation’s primary Successful projects are expected to Available Funding interest, in this request for pre- repay the AARC Corporation Revolving proposals/proposals, is in providing Fund through negotiated arrangements. Congress has agreed to appropriate $7 assistance in pre-commercial activities The Program is administered by the million in FY 1997. to move new industrial products from AARC Corporation, which is a wholly- The AARC Corporation Board expects agricultural and forestry materials into owned government Corporation of the applicants to, at minimum, match the the marketplace. The AARC Corporation U.S. Department of Agriculture. dollars requested from the AARC Board seeks projects that will have The objectives of the AARC Corporation. A preference may be given market impact; this includes expanding Corporation are: to projects for which the ratio of AARC use of agricultural or forestry materials * To search for new non-food, non-feed, Corporation funds to non-Corporation in industrial products especially those non-traditional fiber products that may be funds would be the lowest. that expand markets for farmers, create 44036 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices jobs, spur rural development, provide applicants incident thereto will be kept Overnight Delivery environmental and/or conservation confidential. Project information USDA AARC Corporation, 1400 benefits, and improve trade. Emphasis including applications is specifically Independence Ave, S.W., Room 0156 will be given to those proposals whose excluded from release under the South Building, Washington, D.C. 20250– products are closest to Freedom of Information Act, except 0401 commercialization and have positive with the approval of the person For More Information impact on rural employment and providing the information or in a economic activity. judicial or administrative proceeding in Proposals must be submitted on forms Proposals and pre-proposals will be which such information is subject to provided by the AARC Corporation— evaluated on four primary criteria: protective order. However, the either pre-proposals or full proposals. management team capability, business information will be reviewed by three Contact the AARC Corporation by letter and marketing soundness, technical reviewers who will be held to using the addresses above, or fax factors, and expected time and confidentiality. Board members are number (202) 690–1655 to receive a magnitude of impacts if successful. required to exclude themselves from packet containing the instructions and Examples of types of information that consideration of a proposal where a application forms. will enter the decision process on each conflict of interest exists. Specific questions should be directed of the primary categories of criteria Intellectual property rights, such as to Patricia Dunn: Phone 202–690–1634. include: patents and licenses, shall remain with Done in Washington, D.C., on August 21, Management: Capability of the the owner unless other arrangements are 1996. management team. negotiated as part of the agreement. W. Bruce Crain, Amount of matching funds (cash) Inventions made under an award under Executive Director, AARC Corporation. committed. this Program shall be owned by the [FR Doc. 96–21815 Filed 8–26–96; 8:45 am] Awareness of the financial resources awardee in accordance with 35 U.S.C. BILLING CODE 3410±2B±M needed to successfully market the product. 200–204 and 37 CFR 401. Clear identification of project milestones. No agreement may be entered into Private sector leadership to commercialize the product or process. under the program for the acquisition or Agricultural Marketing Service construction of a building or facility. Business: Potential profitability. [Docket No. PY±96±005] Clear identification of customers. All applicants must file a declaration Structure of the market in terms of size, of compliance with 31 U.S.C. 1352 Notice of Request for Extension and number, leading competitors, and reaction of regarding limitation on the use of Revision of a Currently Approved competitors to a new product. appropriated funds to influence certain Information Collection Amount and nature of the value added to Federal contracting and financial the agricultural or forestry material. transactions either prior to or AGENCY: Agricultural Marketing Service, Ability to replicate in other parts of the simultaneous with the submission. USDA. country. Key issues and government policies or Due to limited funds, the AARC ACTION: Notice and request for regulations that might impact success. Corporation may not be able to fund all comments. Applicant’s ability and willingness to projects meriting support, and awards repay the AARC Corporation for the risk will be based on merit using the review SUMMARY: In accordance with the investment made by the American taxpayers. evaluations and the Board’s judgement. Paperwork Reduction Act of 1995 (44 Technical: Relation to previous work. Applicants who submitted a proposal U.S.C. Chapter 35), this notice Technical requirements of the product— or pre-proposal previously must reapply announces the Agricultural Marketing industry standards or guidelines. to be considered for Fiscal Year 1997 Service’s (AMS) intention to request an Technical and market testing needed. funding. extension for and revision to a currently Government approvals or permit required. approved information collection in Major technical hindrances. Future Proposals Innovative techniques and patents. support of the shell egg surveillance Ability to achieve technical claims. In the future and until further notice, portion of the Regulations for the Present stage of development. the AARC Corporation Board will Inspection of Eggs and Egg Products—7 Impacts: Volume of agricultural or forestry accept proposals or pre-proposals at any CFR 59. material used. time on AARC Corporation forms. The DATES: Comments on this notice must be Number and quality of jobs (especially in Board will meet at least three times a received by October 28, 1996. distressed rural areas) expected to be year to select proposals for funding. created—type, rural/urban, timeframe. ADDITIONAL INFORMATION: Contact Potential positive and negative Submissions Shields Jones, Standardization Branch, Poultry Division, Agricultural Marketing environmental impacts from production to Because funds are limited, projects consumer disposal of product. Service, U.S. Department of Agriculture, will be accepted on a first come basis. Proposed product’s implications for P.O. Box 96456, Room 3944–S, Applicants are encouraged to submit helping improve farm income, especially the Washington, DC 20090–6456, (202) 720– applications as soon as possible after family farm. 3506. Resource conservation effects such as seeing this notice. To be eligible for this replacement of stock resources, crop round of AARC Corporation Board SUPPLEMENTARY INFORMATION: diversification, soil erosion, water use, etc. decisions, both pre-proposals and full Estimated impact on export/import trade Title: Regulations for the Inspection of proposals must be received at the AARC Eggs and Egg Products (Egg Products balance, commodity support programs and Corporation office. Pre-proposals are rural economic activity. Inspection Act). preferred. One of the following OMB Number: 0581–0113. Other Considerations addresses should be used, as applicable: Expiration Date of Approval: March With respect to projects carried out Regular U.S. Mail 31, 1997. with private researchers or commercial USDA AARC Corporation, STOP 0401, 1400 Type of Request: Extension and companies, the enabling legislation Independence Ave, S.W., 0156 South revision of a currently approved provides that information submitted by Building, Washington, D.C. 20250–0401 information collection. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44037

Abstract: Congress enacted the Egg other forms of information technology, period of 5 consecutive business days Products Inspection Act (21 U.S.C. or any other aspect of this collection of the daily price for frozen concentrated 1031–1056) (EPIA) to provide, in part, a information, to: orange juice is less than the trigger mandatory inspection program to Douglas C. Bailey, Chief, price. control the disposition of dirty and Standardization Branch, Poultry For the purpose of this provision, the checked shell eggs; to control Division, Agricultural Marketing term ‘‘daily price’’ means the daily unwholesome, adulterated, and inedible Service, U.S. Department of Agriculture, closing price of the New York Cotton egg products and shell eggs that are P.O. Box 96456, Room 3944–S, Exchange, or any successor as unfit for human consumption; and to Washington, DC 20090–6456. determined by the Secretary of control the movement and disposition All responses to this notice will be Agriculture (the ‘‘Exchange’’), for the of imported shell eggs. summarized and included in the request closest month in which contracts for The Act requires and directs the for OMB approval. All comments will frozen concentrated orange juice are Department to develop and issue also become a matter of public record. being traded on the Exchange. The term regulations to carry out the purposes or Dated: August 21, 1996. ‘‘business day’’ means a day in which provisions of the Act and to be Lon Hatamiya, contracts for frozen concentrated orange responsible for the administration and juice are being traded on the Exchange. enforcement of the Act, except as Administrator. otherwise provided. The regulations, 7 [FR Doc. 96–21784 Filed 8–26–96; 8:45 am] The term ‘‘trigger price’’ means the CFR 59, were developed under BILLING CODE 3410±02±P average daily closing price of the rulemaking procedures for these Exchange for the corresponding month purposes. The regulations also provide during the previous 5-year period, requirements, guidelines, and rules, for Foreign Agricultural Service excluding the year with the highest both the provider (USDA) and the user average price for the corresponding Special Provision for Frozen month and the year with the lowest (industry) to use as the basis for Concentrated Orange Juice Under the common understanding. average price for the corresponding North American Free Trade Agreement month. The information collection and record Implementation Act keeping requirements in this request are Price conditions no longer exist when essential to carry out the intent of AGENCY: Foreign Agricultural Service, the Secretary determines that for a Congress, to administer the mandatory USDA. period of 5 consecutive business days inspection program, and to take ACTION: Notice of Determination of the daily price for frozen concentrated regulatory action, in accordance with Existence of Price Conditions Necessary orange juice has exceeded the trigger the regulations and the Act. for Imposition of Temporary duty on price. Whenever the price conditions The information collected is used Frozen Concentrated Orange Juice from are determined to exist or to cease to only by authorized representatives of Mexico. exist the Secretary is required to the USDA (AMS, Poultry Division’s immediately notify the Commissioner of national staff; regional directors and SUMMARY: Pursuant to Section 309(a) of Customs of such determination. their staffs; Federal-State supervisors the North American Free Trade Whenever the determination is that the and their staffs; and resident Federal- Agreement Implementation Act of 1993 price conditions exist and the quantity State graders, which includes State (‘‘NAFTA Implementation Act’’), this is of Mexican articles of frozen agencies). The information is used to a notification that for 5 consecutive concentrated orange juice entered assure compliance with the Act and the business days the daily price for frozen exceeds (1) 264,978,000 liters (single regulations and to take administrative concentrated orange juice was lower strength equivalent) in any of calendar and regulatory action. The Agency is the than the trigger price. years 1994 through 2002, or (2) primary user of the information, and the FOR FURTHER INFORMATION CONTACT: 340,560,000 liters (single strength secondary user is each authorized State Joseph Somers, Horticultural and equivalent) in any of calendar years agency which has a cooperative Tropical Products Division, Foreign 2003 through 2007, the rate of duty on agreement with AMS. Agricultural Service, U.S. Department of Mexican articles of frozen concentrated Estimate of Burden: Public reporting Agriculture, Washington, DC 20250– orange juice that are entered after the burden for this collection of information 1000 or telephone at (202) 720–2974. date on which the applicable quantity is estimated to average 0.30 hours per SUPPLEMENTARY INFORMATION: The limitation is reached and before the date response. of publication in the Federal Register of Respondents: State or local NAFTA Implementation Act authorizes the imposition of a temporary duty the determination that the price governments, businesses or other for- conditions have ceased to exist shall be profit, Federal agencies or employees, (snapback) for Mexican frozen concentrated orange juice when certain the lower of—(1) The column 1— small businesses or organizations. General rate of duty in effect for such Estimated Number of Respondents: conditions exist. Mexican articles falling under subheading 2009.11.00 of the articles on July 1, 1991; or (2) the 1268. column 1—General rate of duty in effect Estimated Number of Responses per Harmonized Tariff Schedule of the on that day. For the purpose of this Respondent: 5.17. United States (HTS) are subject to the provision, the term ‘‘entered’’ means Estimated Total Annual Burden on snapback duty provision. entered or withdrawn from warehouse Respondents: 2,330 hours. Under Section 309(a) of the NAFTA Copies of this information collection Implementation Act, certain price for consumption in the customs territory can be obtained from Shields Jones, conditions must exist before the United of the United States. Standardization Branch, at (202) 720– States can apply a snapback duty on In accordance with Section 309(a) of 3506. imports of Mexican frozen concentrated the NAFTA Implementation Act, it has Send comments regarding the orange juice. In addition, such imports been determined that for the period July accuracy of the burden estimate, ways to must exceed specified amounts before 11–17, 1996, the daily price for frozen minimize the burden, including the use the snapback duty can be applied. The concentrated orange juice was less than of automated collection techniques or price conditions exist when for each the trigger price. 44038 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Issued at Washington, DC the 19th day of Title: Company Organization Survey. Dated: August 21, 1996. August 1996. Form Number(s): NC–9901. Linda Engelmeier, Timothy J. Galvin, Agency Approval Number: 0607– Acting Departmental Forms Clearance Office, Acting Administrator, Foreign Agricultural 0444. Office of Management and Organization. Service. Type of Request: Revision of a [FR Doc. 96–21858 Filed 8–26–96; 8:45 am] [FR Doc. 96–21622 Filed 8–26–96; 8:45 am] currently approved collection. BILLING CODE 3510±07±M BILLING CODE 3410±10±M Burden: 144,500 hours. Number of Respondents: 85,000. Avg. Hours Per Response: 1.7 hours. International Trade Administration Public Briefing on World Food Summit Needs and Uses: The Census Bureau Intersessional Meetings conducts the Company Organization Survey (COS) annually to update and [A±427±098] AGENCY: Foreign Agricultural Service, maintain the Standard Statistical Anhydrous Sodium Metasilicate From USDA. Establishment List (SSEL). The SSEL is France; Final Results of Antidumping a computerized list of all employer ACTION: Notice of meeting. Duty Administrative Review organizations and their establishments SUMMARY: Notice is hereby given that a and contains such information as name, AGENCY: Import Administration, public briefing on the July 29–August 2, address, physical location, Standard International Trade Administration, 1996 World Food Summit Intersessional Industrial Classification (SIC) code, Department of Commerce. meetings in Rome will be held employment size code, and company September 11, 1996. The purpose of the affiliation. It provides a single universe ACTION: Notice of Final Results of forum is for members of the U.S. for the selection and maintenance of Antidumping Duty Administrative delegation to the Intersessional to brief statistical samples of establishments, Review. the public, and receive comments and legal entities, or enterprises; provides a suggestions with respect to Summit standard basis for assigning SIC codes; SUMMARY: On June 18, 1996, the preparations. and provides establishment level data Department of Commerce (the DATES: The meeting will be held from multi-establishment companies Department) published the preliminary Wednesday, September 11, 1996 from that are summarized and published in results of administrative review of the 2:00 to 4:00. the annual County Business Patterns antidumping duty order on anhydrous ADDRESSES: The meeting will be held in series of reports. In this request for sodium metasilicate (ASM) from France room 3017 in the South Building at the revision, we are amending instructions (61 FR 30853). The review covers Rhone U.S. Department of Agriculture in and adding relatively short reference Poulenc Chimie de Base (Rhone Washington, D.C. lists for respondents to use as guides Poulenc), a manufacturer/exporter of when reporting updated industrial ASM, and shipments of this SUPPLEMENTARY INFORMATION: The classification information for selected merchandise to the United States during meeting is open to the public. Inquiries establishments; reducing the panel size the period from January 1, 1995 through may be directed to the Office of the by implementing improved December 31, 1995. The Department National Secretary, Foreign Agricultural methodology for selectively targeting gave interested parties an opportunity to Service, Room 3008 South Building, the collection to enterprises affected by comment on our preliminary results. No U.S. Department of Agriculture, 14th changes in organization and/or comments were received. Therefore, the and Independence Ave. SW, operating characteristics; and removing final results are the same as the Washington, D.C. 20250, telephone a one-time data inquiry to selected preliminary results. (202) 690–0776 or fax (202) 720–6103. respondents for collecting information Additional information is available on EFFECTIVE DATE: August 27, 1996. on respondents’ ability and interest in the FAS Homepage (http:// reporting data electronically in FOR FURTHER INFORMATION CONTACT: ffas.usda.gov/ffas/foodlsummit/ subsequent years. Mark Ross or Richard Rimlinger, AD/ summit.html) or by calling (202) 690– Affected Public: Businesses or other CVD Enforcement, Import 0776. for-profit, Not-for-profit institutions. Administration, International Trade Signed in Washington, D.C. August 16, Frequency: Annually. Administration, U.S. Department of 1996. Respondent’s Obligation: Mandatory. Commerce, 14th Street and Constitution Timothy J. Galvin, Legal Authority: Title 13 USC, Avenue, Washington, D.C. 20230; Acting Administrator, Foreign Agricultural Sections 182, 224, and 225. telephone: (202) 482–4733. Service. OMB Desk Officer: Jerry Coffey, (202) [FR Doc. 96–21621 Filed 8–26–96; 8:45 am] 395–7314. SUPPLEMENTARY INFORMATION: BILLING CODE 3410±10±M Copies of the above information Applicable Statute and Regulations collection proposal can be obtained by calling or writing Linda Engelmeier, Unless otherwise indicated, all Acting DOC Forms Clearance Officer, citations to the statute are references to DEPARTMENT OF COMMERCE (202) 482–3272, Department of the provisions effective January 1, 1995, Submission for OMB Review; Commerce, room 5312, 14th and the effective date of the amendments Comment Request Constitution Avenue, NW, Washington, made to the Tariff Act of 1930 (the Act) DC 20230. by the Uruguay Round Agreements Act DOC has submitted to the Office of Written comments and (URAA). In addition, unless otherwise Management and Budget (OMB) for recommendations for the proposed indicated, all citations to the clearance the following proposal for information collection should be sent Department’s regulations are to the collection of information under the within 30 days of publication of this current regulations, as amended by the provisions of the Paperwork Reduction notice to Jerry Coffey, OMB Desk interim regulations published in the Act (44 U.S.C. chapter 35). Officer, room 10201, New Executive Federal Register on May 11, 1995 (60 Agency: Bureau of the Census. Office Building, Washington, DC 20503. FR 25130). Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44039

Background not a firm covered in this review, a prior Based on our analysis of the comments The Department initiated the January review, or the original investigation, but received, we have not changed the 1, 1995 through December 31, 1995 the manufacturer is, the cash deposit results from those presented in the administrative review for Rhone rate will be the rate established for the preliminary results of review. Poulenc on February 20, 1996 (61 FR most recent period for the manufacturer EFFECTIVE DATE: August 27, 1996. 6347) at the request of the petitioner, the of the merchandise; and (4) if neither FOR FURTHER INFORMATION CONTACT: PQ Corporation. On June 18, 1996, the the exporter nor the manufacturer is a Robert Bolling or Jean Kemp, AD/CVD Department issued the preliminary firm covered in this or any previous Enforcement, Group III, Import results for this administrative review (61 review or the original investigation, the Administration, International Trade FR 30853). cash deposit rate will be 60 percent, the Administration, U.S. Department of ‘‘All Others’’ rate established in the Commerce, 14th Street and Constitution Scope of Review LTFV investigation (45 FR 77498, Avenue, N.W., Washington, D.C. 20230, Imports covered by the review are November 24, 1980). telephone: (202) 482–3793. shipments of ASM, a crystallized These deposit requirements will remain in effect until publication of the SUPPLEMENTARY INFORMATION: silicate (Na2 SiO3) which is alkaline and readily soluble in water. Applications final results of the next administrative Background review. include waste paper de-inking, ore- On May 29, 1996, the Department flotation, bleach stabilization, clay This notice also serves as a final reminder to importers of their published in the Federal Register (61 processing, medium or heavy duty FR 28676) the preliminary results of the cleaning, and compounding into other responsibility under 19 CFR 353.26 to file a certificate regarding the administrative review of the detergent formulations. This antidumping duty order on certain merchandise is classified under reimbursement of antidumping duties prior to liquidation of the relevant corrosion-resistant carbon steel flat Harmonized Tariff Schedule (HTS) item products from Australia (58 FR 44161, numbers 2839.11.00 and 2839.19.00. entries during this review period. Failure to comply with this requirement August 9, 1993). The Department has The HTS item numbers are provided for now completed this administrative convenience and Customs purposes. could result in the Secretary’s presumption that reimbursement of review in accordance with section 751 The written description remains of the Tariff Act of 1930, as amended dispositive. antidumping duties occurred and the subsequent assessment of double (the Act). Final Results of Review antidumping duties. Applicable Statute This administrative review and notice The Department gave interested Unless otherwise indicated, all are in accordance with section 751(a)(1) parties an opportunity to comment on citations to the statute are references to of the Tariff Act (19 U.S.C. 1675(a)(1)) its preliminary results. The Department the provisions effective January 1, 1995, and 19 CFR 353.22. did not receive any comments. the effective date of the amendments Accordingly, for reasons discussed in Dated: August 20, 1996. made to the Tariff Act of 1930 (the Act) the preliminary results, the Department Robert S. LaRussa, by the Uruguay Round Agreements Act has, pursuant to section 776 of the Act, Acting Assistant Secretary for Import (URAA). In addition, unless otherwise used facts available. As discussed in the Administration. indicated, all citations to the preliminary results, the Department [FR Doc. 96–21857 Filed 8–26–96; 8:45 am] Department’s regulations are to the used as facts available the 60-percent BILLING CODE 3510±DS±P current regulations, as amended by the margin calculated in the original less- interim regulations published in the than-fair-value (LTFV) investigation Federal Register on May 11, 1995 (60 using information provided by Rhone [A±602±803] FR 25130). Poulenc. For a discussion of the reasons Certain Corrosion-Resistant Carbon for application of facts available, see Scope of the Review Steel Flat Products From Australia: Anhydrous Sodium Metasilicate from The products covered by this Final Results of Antidumping Duty France: Preliminary Results of administrative review constitute one Administrative Review Antidumping Duty Administrative ‘‘class or kind’’ of merchandise: certain Review, 61 FR 30853 (June 18, 1996). AGENCY: Import Administration, corrosion-resistant carbon steel flat The Department will determine, and International Trade Administration, products. The class or kind includes the Customs Service will assess, Department of Commerce. flat-rolled carbon steel products, of antidumping duties on all appropriate ACTION: Notice of Final Results of rectangular shape, either clad, plated, or entries. Furthermore, the following Antidumping Duty Administrative coated with corrosion-resistant metals deposit requirements will be effective Review. such as zinc, aluminum, or zinc-, for all shipments of the subject aluminum-, nickel- or iron-based alloys, merchandise entered, or withdrawn SUMMARY: On May 29, 1996, the whether or not corrugated or painted, from warehouse, for consumption on or Department of Commerce (the varnished or coated with plastics or after the publication date of these final Department) published the preliminary other nonmetallic substances in results of this administrative review, as results of the administrative review of addition to the metallic coating, in coils provided by section 751(a)(2)(C) of the the antidumping duty order on certain (whether or not in successively Act: (1) the cash deposit rate for Rhone corrosion-resistant carbon steel flat superimposed layers) and of a width of Poulenc will be 60 percent; (2) for products from Australia (61 FR 26876). 0.5 inch or greater, or in straight lengths companies not covered in this review, The review covers one manufacturer/ which, if of a thickness less than 4.75 but covered in previous reviews or the exporter of the subject merchandise to millimeters, are of a width of 0.5 inch original LTFV investigation, the cash the United States and the period August or greater and which measures at least deposit rate will continue to be the 1, 1994 through July 31, 1995. We gave 10 times the thickness or if of a company-specific rate published for the interested parties an opportunity to thickness of 4.75 millimeters or more most recent period; (3) if the exporter is comment on our preliminary results. are of a width which exceeds 150 44040 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices millimeters and measures at least twice WCI Steel, Inc., and Lukens Steel amended final results of the first the thickness, as currently classifiable in Company, in this proceeding. Neither administrative review. the HTS under item numbers respondent (The Broken Hill Proprietary Final Results of Review 7210.31.0000, 7210.39.0000, Company Ltd. (BHP)) nor petitioners 7210.41.0000, 7210.49.0030, requested a hearing. As a result of this review, we have 7210.49.0090, 7210.60.0000, Comment 1: Petitioners stated that the determined that the following margin 7210.70.6030, 7210.70.6060, Department correctly concluded in its exists for the period August 1, 1994, 7210.70.6090, 7210.90.1000, preliminary results that the use of facts through July 31, 1995: 7210.90.6000, 7210.90.9000, available is appropriate in this review 7212.21.0000, 7212.29.0000, because BHP did not respond to Margin Manufacturer/Exporter (percent) 7212.30.1030, 7212.30.1090, Sections B, C, or D of the Department’s 7212.30.3000, 7212.30.5000, antidumping duty questionnaire. In BHP ...... 39.05 7212.40.1000, 7212.40.5000, addition, petitioners noted that because 7212.50.0000, 7212.60.0000, BHP failed to cooperate and withheld The Department shall determine, and 7215.90.1000, 7215.90.5000, requested information, Section 776(b) of the U.S. Customs Service shall assess, 7217.12.1000, 7217.13.1000, the Act permits the Department to use antidumping duties on all appropriate 7217.19.1000, 7217.19.5000, an inference adverse to BHP in selecting entries. The Department shall issue 7217.22.5000, 7217.23.5000, from among the facts otherwise appraisement instructions directly to 7217.29.1000, 7217.29.5000, available. (See, Certain Pasta from Italy, the Customs Service. 7217.32.5000, 7217.33.5000, 61 FR 30326, 30328 (June 14, 1996)) Furthermore, the following deposit 7217.39.1000, and 7217.39.5000. Moreover, the petitioners argue that the requirements shall be effective, upon Included are flat-rolled products of Department’s practice under the old law publication of this notice of final results nonrectangular cross-section where was to view a respondent who refuses of administrative review, for all such cross-section is achieved to participate as non-cooperative and to shipments of the subject merchandise subsequent to the rolling process (i.e., subject said respondent to the use of the from Australia that are entered, or products which have been ‘‘worked most adverse facts available. (See, withdrawn from warehouse, for after rolling’’)—for example, products Certain Carbon Steel Flat Products from consumption on or after the publication which have been bevelled or rounded at Brazil, 58 FR 37091, 37094 (July 9, date, as provided for by section the edges. Excluded are flat-rolled steel 1993)) 751(a)(1) of the Tariff Act: (1) the cash products either plated or coated with Additionally, petitioners stated that deposit rate for BHP will be the rate tin, lead, chromium, chromium oxides, the Department correctly applied established above; (2) for previously both tin and lead (‘‘terne plate’’), or both Section 776(c) of the Act and the investigated companies not listed above, chromium and chromium oxides (‘‘tin- Statement of Administrative Action the cash deposit rate will continue to be free steel’’), whether or not painted, (SAA) in its preliminary results and varnished or coated with plastics or the company-specific rate published for correctly followed its practice for other nonmetallic substances in the most recent period; (3) if the assessing the probative value of the addition to the metallic coating. Also exporter is not a firm covered in this information to be used by examining its excluded are clad products in straight review, or the original investigation, but reliability and relevance. (See, lengths of 0.1875 inch or more in the manufacturer is, the cash deposit Mechanical Transfer Presses from composite thickness and of a width rate will be the rate established for the Japan, 61 FR 15036 (April 4, 1996)) which exceeds 150 millimeters and most recent period for the manufacturer Also, petitioners note that the measures at least twice the thickness. of the merchandise; and (4) the cash Also excluded are certain clad stainless Department correctly recognized that in deposit rate for all other manufacturers flat-rolled products, which are three- selecting as adverse facts available the or exporters will continue to be 24.96 layered corrosion-resistant carbon steel margin calculated in the prior segment percent, the all others rate established in flat-rolled products less than 4.75 of this proceeding, ‘‘it is not necessary the final results of the less than fair millimeters in composite thickness that to question the reliability of the margin value investigation (58 FR 44161, consist of a carbon steel flat-rolled for that time period.’’ Petitioners also August 19, 1993). product clad on both sides with noted that the Department did consider The deposit requirements, when stainless steel in a 20%–60%–20% information as to whether there were imposed, shall remain in effect until ratio. These HTS item numbers are circumstances that would render the publication of the final results of the provided for convenience and Customs margin not relevant, and stated that the next administrative review. purposes. The written description Department correctly concluded that This notice serves as a final reminder remains dispositive. there were no such circumstances. to importers of their responsibility The review covers BHP and the Department’s Position: We agree with under 19 CFR 353.26 to file a certificate period August 1, 1994 through July 31, petitioners. Our final results are in regarding the reimbursement of 1995 (POR). accord with our reasoning in our antidumping duties prior to liquidation preliminary results. Because BHP failed of the relevant entries during this Analysis of Comments Received to submit a response to sections B review period. Failure to comply with We gave interested parties an through E of the Department’s this requirement could result in the opportunity to comment on the antidumping questionnaire we have Secretary’s presumption that preliminary results. We only received determined that it is appropriate to use reimbursement of antidumping duties comments from petitioners, Bethlehem as an adverse inference in selecting from occurred and the subsequent assessment Steel Corporation, U.S. Steel Group, a among the facts otherwise available, the of double antidumping duties. Unit of USX Corporation, Inland Steel margin calculated in a prior segment of This notice serves as the only Industries, Inc., LTV Steel Company, the proceeding. The Department will reminder to parties subject to Inc., National Steel Corporation, AK apply the antidumping margin of 39.05 administrative protective order (APO) of Steel Corporation, Gulf States Steel Inc. percent for these final results, which is their responsibility concerning the of Alabama, Sharon Steel Corporation, the antidumping margin from the disposition of proprietary information Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44041 disclosed under APO in accordance respecting Oil Country Tubular Goods DEPARTMENT OF DEFENSE with 19 C.F.R. 355.34(d). Timely written from Mexico. That determination was notification of return/destruction of published in the Federal Register on GENERAL SERVICES APO materials or conversion to judicial June 28, 1995 (60 FR 33567). ADMINISTRATION protective order is hereby requested. Failure to comply with the regulation Decision of Panel NATIONAL AERONAUTICS AND SPACE ADMINISTRATION and the terms of an APO is a (1) The Panel upheld the sanctionable violation. Department’s calculation of TAMSA’s [OMB Control No. 9000±0139] This administrative review and notice financial expense on the basis of Best are in accordance with section 751(a)(1) Information Available and on the Submission for OMB Review; of the Act and 19 CFR 353.22. Comment Request Entitled Federal alternative basis that the 1993 financial Acquisition and Community Right-To- Dated: August 20, 1996. data was not representative of the Know Robert S. LaRussa, financial expenses incurred during the Acting Assistant Secretary for Import Period of Investigation. AGENCIES: Department of Defense (DOD), Administration. (2) The Panel remanded the Final General Services Administration (GSA), [FR Doc. 96–21856 Filed 8–26–96; 8:45 am] Determination to the Department for a and National Aeronautics and Space BILLING CODE 3510±DS±P detailed explanation as to the reasons Administration (NASA). for its rejection of the 1993 financial ACTION: Notice of request for an extension to an existing OMB clearance. North American Free-Trade Agreement data as non-representative of the (NAFTA), Article 1904 Binational Panel General and Administrative expenses SUMMARY: Under the provisions of the Reviews; Notice of Decision of Panel incurred during the Period of Paperwork Reduction Act of 1995 (44 Investigation. U.S.C. 35), the Federal Acquisition AGENCY: North American Free Trade Regulation (FAR) Secretariat has Agreement, NAFTA Secretariat, United (3) The Panel upheld the submitted to the Office of Management States Section, International Trade Department’s rejection of TAMSA’s and Budget (OMB) a request to review Administration, Department of nonstandard cost allocation method and and approve an extension of a currently Commerce. its substitution of an allocation method based on standard costs. The Panel also approved information collection ACTION: Notice of Decision of the Panel. granted the Department’s request for a requirement concerning Federal Acquisition and Community Right-to- SUMMARY: On July 31, 1996 the remand to re-calculate the nonstandard Binational Panel issued its decision in cost allocation for a particular subset of Know. This OMB clearance currently the matter of Oil Country Tubular Goods TAMSA’s sales. expires on October 31, 1996. A request for public comments was published at from Mexico, Secretariat File No. USA– (4) The Panel determined that the 95–1904–04. 61 FR 31090, June 19, 1996. No challenge by TAMSA to the Final comments were received. FOR FURTHER INFORMATION CONTACT: Determination, based on a statement DATES: Comment Due Date: October 28, James R. Holbein, United States made by the Department in the Team Secretary, NAFTA Secretariat, Suite 1996. Concurrence Memorandum, is not ripe ADDRESSES: Comments regarding this 2016, 14th and Constitution Avenue, for consideration. Washington, D.C. 20230, (202) 482– burden estimate or any other aspect of 5438. The Panel ordered the Department to the collection of information, including make a determination on remand suggestions for reducing this burden, or SUPPLEMENTARY INFORMATION: Chapter obtaining a copy of the justification, 19 of the North American Free-Trade consistent with the instructions and should be submitted to: General Agreement (‘‘Agreement’’) establishes a findings set forth in the Panel’s opinion. Services Administration, FAR mechanism to replace domestic judicial The Department shall allow an Secretariat (MVRS), 18th & F Streets, review of final determinations in appropriate period of time for North NW, Room 4037, Washington, DC antidumping and countervailing duty Star and TAMSA to comment on the 20405. Please cite OMB Control No. cases involving imports from a NAFTA proposed remand results. The final 9000–0139, Federal Acquisition and country with review by independent determination on remand shall be Community Right-to-Know, in all binational panels. issued within ninety (90) days of the correspondence. Under Article 1904 of the Agreement, date of this Order (not later than which came into force on January 1, October 29, 1996). FOR FURTHER INFORMATION CONTACT: Ralph De Stefano, Office of Federal 1994, the Government of the United Dated: August 6, 1996. Acquisition Policy, GSA (202) 501– States, the Government of Canada and James R. Holbein, the Government of Mexico established 1758. U.S. Secretary, NAFTA Secretariat. Rules of Procedure for Article 1904 SUPPLEMENTARY INFORMATION: Binational Panel Reviews (‘‘Rules’’). [FR Doc. 96–21749 Filed 8–26–96; 8:45 am]1 These Rules were published in the BILLING CODE 3510±GT±M A. Purpose Federal Register on February 23, 1994 The interim rule added FAR Subpart (59 FR 8686). The panel review in this 23.9 and its associated solicitation matter was conducted in accordance provision and contract clause which with these Rules. implement the requirements of E.O. 12969 of August 8, 1995 (60 FR 40989, Background Information August 10, 1995), ‘‘Federal Acquisition This Binational Panel reviewed the and Community Right-to-Know,’’ and Final Determination of Sales at Less the Environmental Protection Agency’s Than Fair Value made by the ‘‘Guidance Implementing E.O. 12969; International Trade Administration Federal Acquisition Community Right- 44042 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices to-Know; Toxic Chemical Release ADDRESSES: Written comments and Dated: August 21, 1996. Reporting’’ (60 FR 50738, September 29, requests for copies of the proposed Gloria Parker, 1995). The interim rule requires offerors information collection requests should Director, Information Resources Group. in competitive acquisitions over be addressed to Patrick J. Sherrill, Office of Postsecondary Education $100,000 (including options) to certify Department of Education, 600 that they will comply with applicable Independence Avenue SW., Room 5624, Type of Review: New. toxic chemical release reporting Regional Office Building 3, Washington, Title: William D. Ford Federal Direct requirements of the Emergency Planning DC 20202–4651. Loan Program General Forbearance and Community Right-to-Know Act of Form. 1986 ( 42 USC 11001–11050) and the FOR FURTHER INFORMATION CONTACT: Frequency: On occasion. Pollution Prevention Act of 1990 (42 Patrick J. Sherrill (202) 708–8196. Affected Public: Individuals or USC 13101–13109). The rule does not Individuals who use a households. apply to acquisitions of commercial telecommunications device for the deaf Annual Reporting and Recordkeeping items under FAR Part 12 or contractor (TDD) may call the Federal Information Hour Burden: facilities located outside the United Relay Service (FIRS) at 1–800–877–8339 Responses: 50,000. States. This rule does not apply to between 8 a.m. and 8 p.m., Eastern time, Burden Hours: 10,000. subcontractors beyond first tier. Monday through Friday. Abstract: This form is the means by which a William D. Ford Federal Direct B. Annual Reporting Burden SUPPLEMENTARY INFORMATION: Section Loan Program borrower requests a Public reporting burden for this 3506 of the Paperwork Reduction Act of forbearance when they are willing but collection of information is estimated to 1995 (44 U.S.C. Chapter 35) requires unable to make currently scheduled average 0.50 minutes per response, that the Office of Management and Direct Loan payments due to a including the time for reviewing Budget (OMB) provide interested temporary financial hardship. instructions, searching existing data Federal agencies and the public an early Office of Postsecondary Education sources, gathering and maintaining the opportunity to comment on information Type of Review: Revision. data needed, and completing and collection requests. OMB may amend or Title: Federal Direct Stafford/Ford reviewing the collection of information. waive the requirement for public Loan and Federal Direct Unsubsidized The annual reporting burden is consultation to the extent that public Stafford/Ford Loan Promissory Note and estimated as follows: Respondents participation in the approval process would defeat the purpose of the Disclosure. (includes first-tier subcontractors), Frequency: On occasion. 167,487; responses per respondent, 1; information collection, violate State or Affected Public: Individuals or total annual responses, 167,487; Federal law, or substantially interfere households. preparation hours per response, 0.50; with any agency’s ability to perform its Annual Reporting and Recordkeeping and total response burden hours, statutory obligations. The Director of the Hour Burden: 83,744. Information Resources Group publishes Responses: 2,384,000. Obtaining Copies of Justifications: this notice containing proposed Burden Hours: 397,174. Requester may obtain copies of information collection requests prior to Abstract: This form is used to justifications from the General Services submission of these requests to OMB. determine applicant eligibility for Administration, FAR Secretariat Each proposed information collection, Federal Direct Stafford/Ford Loans and/ (MVRS), Room 4037, Washington, DC grouped by office, contains the or Federal Direct Unsubsidized Stafford/ 20405, telephone (202)501–4755. Please following: (1) Type of review requested, Ford Loans. The respondents are cite OMB Control No. 9000–0139, e.g., new, revision, extension, existing students applying for benefits. Federal Acquisition and Community or reinstatement; (2) Title; (3) Summary Office of Postsecondary Education Right-to-Know, in all correspondence. of the collection; (4) Description of the Dated: August 22, 1996. need for, and proposed use of, the Type of Review: Revision. Title: Federal Direct PLUS Loan Sharon A. Kiser, information; (5) Respondents and Application and Promissory Note. frequency of collection; and (6) FAR Secretariat. Frequency: On occasion. [FR Doc. 96–21779 Filed 8–26–96; 8:45 am] Reporting and/or Recordkeeping Affected Public: Individuals or BILLING CODE 6820±EP±P i burden. OMB invites public comment at households. the address specified above. Copies of Annual Reporting and Recordkeeping the requests are available from Patrick J. Hour Burden: DEPARTMENT OF EDUCATION Sherrill at the address specified above. Responses: 203,000. The Department of Education is Burden Hours: 101,500. Notice of Proposed Information especially interested in public comment Abstract: This information is used to Collection Requests addressing the following issues: (1) is determine applicant eligibility for Federal Direct PLUS Loans. The AGENCY: Department of Education. this collection necessary to the proper functions of the Department, (2) will respondents are parents applying for ACTION: Proposed collection; comment benefits. request. this information be processed and used in a timely manner, (3) is the estimate Office of Postsecondary Education SUMMARY: The Director, Information of burden accurate, (4) how might the Type of Review: Revision. Resources Group, invites comments on Department enhance the quality, utility, Title: Addendum to Federal Direct the proposed information collection and clarity of the information to be PLUS Loan Promissory Note Endorser. requests as required by the Paperwork collected, and (5) how might the Frequency: On occasion. Reduction Act of 1995. Department minimize the burden of this Affected Public: Individuals or DATES: Interested persons are invited to collection on the respondents, including households. submit comments on or before October through the use of information Annual Reporting and Recordkeeping 28, 1996. technology. Hour Burden: Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44043

Responses: 50,750. best management practices, and the Officer may be telephoned at (202) 395– Burden Hours: 25,375. Tribe would obtain all necessary 3084. (Also, please notify the EIA Abstract: Applicants for Federal permits prior to project construction. contact listed below.) Direct PLUS Loans who have adverse BPA will endeavor to allow 15 days credit may obtain endorsers. The of public review after publication of this ADDRESSES: Address comments to the information collected on this form is statement of findings prior to Department of Energy Desk Officer, used to check credit of endorsers. The implementing the proposed action Office of Information and Regulatory respondents are endorsers. within the floodplain. Affairs, Office of Management and [FR Doc. 96–21759 Filed 8–26–96; 8:45 am] Issued in Portland, Oregon, on August 19, Budget, 726 Jackson Place N.W., BILLING CODE 4000±01±P 1996. Washington, D.C. 20503. (Comments Randall W. Hardy, should also be addressed to the Office Administrator. of Statistical Standards at the address DEPARTMENT OF ENERGY [FR Doc. 96–21786 Filed 8–26–96; 8:45 am] below.) BILLING CODE 6450±01±P FOR FURTHER INFORMATION: Bonneville Power Administration Requests for additional information or copies of the Kalispel Tribe Resident Fish Project; forms and instructions should be Energy Information Administration Flood Plain Statement of Findings directed to Ms. Norma White, Office of Statistical Standards, (EI–73), Forrestal AGENCY: Agency Information Collection Under Bonneville Power Building, U.S. Department of Energy, Administration (BPA), Department of Review by the Office of Management Washington, D.C. 20585. Ms. White may Energy (DOE). and Budget be telephoned at (202) 426–1107. ACTION: Floodplain statement of AGENCY: Energy Information findings. Administration, Department of Energy. SUPPLEMENTARY INFORMATION: The ACTION: Submission for OMB review; energy information collection submitted SUMMARY: This notice announces BPA’s to OMB for review was: proposal to construct a pump station comment request. 1. EIA–800–804, 807, 810–814, 816, and two water control structures in a SUMMARY: The Energy Information 817, 819M and 820, Petroleum Supply floodplain of the Pend Oreille River in Administration (EIA) has submitted the Pend Oreille County, Washington. The energy information collection(s) listed at Reporting System; action is necessary to provide water for the end of this notice to the Office of 2. Sponsor—Energy Information the hatchery and related facilities Management and Budget (OMB) for Administration; Docket Number 1905– including two bass nurseries. The effect review under section 3507(a)(1)(D) of 0165; Response Obligation—Mandatory; on the public would be an increased the Paperwork Reduction Act of 1995 Extension of currently approved bass fishery within the Box Canyon (Pub. L. 104–13). The listing does not collection; Reach of the Pend Oreille River (see include collections of information 3. The Petroleum Supply Reporting map). In accordance with 10 C.F.R. Part contained in new or revised regulations 1022, BPA has prepared this Floodplain System collects information needed for which are to be submitted under section determining the supply and disposition Statement of Findings for the Kalispel 3507(d)(1)(A) of the Paperwork of crude oil, petroleum products and Tribe Resident Fish Project. A Notice of Reduction Act, nor management and natural gas liquids. These data are Floodplain and Wetlands Involvement procurement assistance requirements was published in the Federal Register collected by the Department of Energy published by the EIA. Respondents are on March 29, 1996 and a floodplain and (DOE). operators of petroleum refining wetlands assessment was prepared by Each entry contains the following facilities, blending plants, bulk BPA describing the effects, alternatives, information: (1) Collection number and terminals, crude oil and product and measures designed to avoid or title of the collection of information; (2) pipelines, natural gas plant facilities, minimize potential harm to or within summary of the collection of tankers and barges, and oil importers; the affected floodplain. The assessment information (includes sponsor (the DOE 4. Respondents—Business or other was prepared in conjunction with the component)), current OMB document for-profit, Federal Government, and Environmental Assessment for this number (if applicable), type of request State, Local or Tribal Government; 5. project (DOE/EA–1154). (new, revision, extension, or Total burden hours—55,605 (2,616 FOR FURTHER INFORMATION, CONTACT: reinstatement); response obligation respondents x 18.68043 responses x Gene Lynard–ECN, Bonneville Power (mandatory, voluntary, or required to 1.13786 hours per response). Administration, P.O. Box 3621, obtain or retain benefits); (3) a Portland, Oregon, 97208–3621, phone description of the need and proposed Authority: 44 U.S.C. 3506(a)(2)(A) of the number 503–230–3790, fax number use of the information; (4) description of Paperwork Reduction Act of 1995 (Pub. L. 503–230–5699. the likely respondents; and (5) estimate No. 104–13). SUPPLEMENTARY INFORMATION: The of total annual reporting burden Issued in Washington, D.C., August 19, proposed action is to be located in the (average hours per response x proposed 1996. floodplain because there are no practical frequency of response x estimated Yvonne M. Bishop, alternatives to locate them outside of the number of likely respondents.) Director, Office of Statistical Standards floodplain. The alternative to the DATES: Comments must be filed by no Energy Information Administration. proposed action is the no action later than September 26, 1996. If you [FR Doc. 96–21805 Filed 8–26–96; 8:45 am] alternative. The proposed action does anticipate that you will be submitting BILLING CODE 6450±01±P conform to applicable State or local comments but find it difficult to do so floodplain protection standards. The within the time allowed by this notice, facilities would be designed to you should advise the OMB DOE Desk withstand flooding. Short-term erosion Officer listed below of your intention to impacts would be controlled by using do so as soon as possible. The Desk 44044 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Federal Energy Regulatory 157.205 of the Regulations under the Any person desiring to be heard or to Commission Natural Gas Act (18 CFR 157.205) a make any protest with reference to said protest to the request. If no protest is application should on or before [Docket No. CP96±714±000] filed within the time allowed therefor, September 11, 1996, file with the the proposed activity shall be deemed to Federal Energy Regulatory Commission, East Tennessee Natural Gas Company; be authorized effective the day after the Washington, D.C. 20426, a motion to Notice of Request Under Blanket time allowed for filing a protest. If a intervene or a protest in accordance Authorization protest is filed and not withdrawn with the requirements of the August 21, 1996. within 30 days after the time allowed Commission’s Rules of Practice and Take notice that on August 14, 1996, for filing a protest, the instant request Procedure (18 CFR 385.214 or 385.211) East Tennessee Natural Gas Company shall be treated as an application for and the Regulations under the NGA (18 (East Tennessee), P.O. Box 2511, authorization pursuant to Section 7 of CFR 157.10). All protests filed with the Houston, Texas 77252, filed in Docket the Natural Gas Act. Commission will be considered by it in No. CP96–714–000 a request pursuant to Linwood A. Watson, Jr., determining the appropriate action to be Sections 157.205 and 157.212 of the Acting Secretary. taken but will not serve to make the Commission’s Regulations under the [FR Doc. 96–21752 Filed 8–26–96; 8:45 am] protestants parties to the proceeding. Natural Gas Act (18 CFR 157.205, BILLING CODE 6717±01±M Any person wishing to become a party 157.212) for authorization to establish a to a proceeding or to participate as a new delivery point in Roane County, party in any hearing therein must file a [Docket No. CP96±709±000] Tennessee under East Tennessee’s motion to intervene in accordance with blanket certificate issued in Docket No. Panhandle Eastern Pipe Line the Commission’s Rules. Take further notice that, pursuant to CP82–412–000 pursuant to Section 7 of Company; Notice of Application the Natural Gas Act, all as more fully set the authority contained in and subject to forth in the request that is on file with August 21, 1996. the jurisdiction conferred upon the the Commission and open to public Take notice that on August 13, 1996, Federal Energy Regulatory Commission inspection. Panhandle Eastern Pipe Line Company by Sections 7 and 15 of the NGA and the East Tennessee proposes to install a (Panhandle), P.O. Box 1642, Houston, Commission’s Rules of Practice and new delivery point to be located at Texas 77251–1642, filed an application Procedure, a hearing will be held approximate mile post 3110–1+11.83 on with the Commission in Docket No. without further notice before the East Tennessee’s system in Roane CP96–709–000 pursuant to Sections 7(b) Commission or its designee on this County, Tennessee, to provide and 7(c) of the Natural Gas Act (NGA) application if no motion to intervene is additional firm transportation service of for permission and approval to abandon filed within the time required herein, if 3,700 dekatherms per day to the Powell- by sale to Consumer Power Company the Commission on its own review of Clinch Utility District (Powell-Clinch), (Consumers) of the North Line Lateral the matter finds that permission and an existing customer of East Tennessee. facilities 1 in various Michigan counties approval for the proposed abandonment East Tennessee states that it will and to construct and operate a new are required by the public convenience install a four-inch hot-tap assembly, interconnection between Consumers and necessity. If a motion for leave to approximately 50 feet of four-inch and Panhandle, all as more fully set intervene is timely filed, or if the interconnecting pipe, a four-inch forth in the application which is open Commission on its own motion believes turbine meter, electronic gas to the public for inspection. that a formal hearing is required, further measurement (EGM) and Panhandle states that its proposed notice of such hearing will be duly communications equipment. East abandonment in place of the North Line given. Tennessee states that it will own, Lateral facilities to Consumers would Under the procedure herein provided operate and maintain the measurement enable Consumers to integrate the for, unless otherwise advised, it will be facilities, the hot-tap assembly and operation of its pipeline and unnecessary for Panhandle to appear or interconnecting pipe, and will maintain distribution systems facilities. be represented at the hearing. the EGM and communications Panhandle states that it would abandon Linwood A. Watson, Jr., equipment. the North Line Lateral facilities to Acting Secretary. Consumers at their fully depreciated net East Tennessee states that the total [FR Doc. 96–21751 Filed 8–26–96; 8:45 am] book value of zero dollars. quantities to be delivered to Powell- BILLING CODE 6717±01±M Panhandle also proposes to construct Clinch after the delivery point is and operate a new interconnection point installed will not exceed the total with Consumers in Washtenaw County [Docket No. GT96±91±000] quantities authorized. East Tennessee by relocating the existing South Lyon asserts that the installation of the metering facilities at the interconnection Transcontinental Gas Pipe Line proposed delivery point is not between Consumers’ affiliate Michigan Corporation; Notice of Refund Report prohibited by East Tennessee’s tariff, Gas Storage Company (MGS) and and that it has sufficient capacity to Panhandle’s North Line in Oakland August 21, 1996. accomplish the deliveries at the County. Panhandle states that Take notice that on July 30, 1996, proposed new delivery point without Consumers would reimburse Panhandle Transcontinental Gas Pipe Line detriment or disadvantage to any of East for the estimated $30,000 construction Corporation (Transco) tendered for Tennessee’s other customers. cost for the new interconnection. filing with the Federal Energy Any person or the Commission’s staff Regulatory Commission its Report of may, within 45 days after issuance of 1 The North Line Lateral facilities consist of Refunds in accordance with section the instant notice by the Commission, approximately 137 miles of pipeline between 3- 8.01(i) of Transco’s NIPPs–SE Rate file pursuant to Rule 214 of the inches and 18-inches in diameter and include the Schedules x–315, x–316, x–318, and x– Commission’s Procedural Rules (18 CFR Clawson lateral, the Howell Field to Gate 6 lateral, 324, and Section 4 of Rate Schedules and related facilities located in Genesee, Livingston, 385.214) a motion to intervene or notice Oakland, Saginaw, and Washtenaw Counties, LSS and SS–2. The report shows that of intervention and pursuant to Section Michigan. Transco refunds made to its customers Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44045 resulting from the Commission’s order be considered by the Commission in petitions or other requests listed in this issued February 16, 1996, in National determining the appropriate action to be Notice were filed with the Office of Fuel’s Docket Nos. RP94–367 and RP95– taken, but will not serve to make Hearings and Appeals of the Department 31–000, et al. protestants parties to the proceeding. of Energy. Submissions inadvertently Transco states that on July 25, 1996, Any person wishing to become a party omitted from earlier lists have also been it refunded $289,869.35 including must file a motion to intervene. Copies included. interest to its NIPPs–SE, and a net of of this file with the Commission and are Any person who will be aggrieved by $187,612.80 including interest to its LSS available for public inspection. the DOE action sought in these cases and SS–2 customers resulting from the Linwood A. Watson, Jr., may file written comments on the referenced National Fuel refund for the Acting Secretary. period June 1, 1995 to March 31, 1996. application within ten days of Any person desiring to be heard or to [FR Doc. 96–21753 Filed 8–26–96; 8:45 am] publication of this Notice or the date of protest said filing should file a motion BILLING CODE 6717±01±M receipt of actual notice, whichever to intervene or a protest with the occurs first. All such comments shall be Federal Energy Regulatory Commission, Office of Hearings and Appeals filed with the Office of Hearings and 888 First Street, N.E., Washington, D.C. Appeals, Department of Energy, 20426, in accordance with Rules 211 Cases Filed; Week of May 13 Through Washington, D.C. 20585–0107. and 214 of the Commission’s Rules of May 17, 1996 Dated: August 19, 1996. Practice and Procedure. All such motions or protests should be filed on During the week of May 13 through George B. Breznay, or before August 29, 1996. Protests will May 17, 1996, the appeals, applications, Director, Office of Hearings and Appeals.

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALS [Week of May 13 through May 17, 1996]

Date Name and location of applicant Case No. Type of submission

2/27/96 ...... West Virginia, Charleston, West Virginia ..... RM251±296 Request for Modification/Rescission in the Amoco II Sec- ond Stage Refund Proceeding. If granted: The January 7, 1987 Decision and Order, Case Number RQ251±339, would be modified regarding the state's application for refund submitted in the Amoco II Second Stage Refund Proceeding. 3/12/96 ...... Belridge/Rhode Island Providence, Rhode RQ8±608 Application for Second Stage Belridge Refund. If granted: Island. The second stage refund application submitted by the State of Rhode Island in the Belridge Refund Proceed- ing would be granted. 3/12/96 ...... Amoco II/Rhode Island, Providence, Rhode RQ251±609 Application for Second Stage Amoco II Refund. If granted: Island. The second stage refund application submitted by the State of Rhode Island in the Amoco II Refund Proceed- ing would be granted. 5/13/96 ...... Headquarters, Washington, DC ...... VSA±0075 Request for Review of Opinion under 10 C.F.R. Part 710. If granted: The Opinion of the Office of Hearings and Appeals, Case No. VSO±0075, would be reviewed at the request of an individual employed at Headquarters. 5/13/96 ...... Oil Products, Inc., Mount Angel, Oregon ..... VEE±0023 Exception to the Reporting Requirements. If granted: Oil Products, Inc. would not be required to file Form EIA± 782B Resellers'/Retailers' Monthly Petroleum Product Sales Report. 5/14/96 ...... Golden Cat Division/Ralston Purina, Wash- RJ272±12 Reconsideration of a Supplemental Crude Oil Denial. If ington, DC. granted: The January 16, 1996 Decision and Order, Case No. RK272±319, issued to Golden Cat Division, Ralston Purina would be modified regarding the firm's application for refund submitted in the Crude Oil Supple- mental Refund Proceeding. 5/15/96 ...... Southard Oil Company, Inc., West Frank- VEE±0024 Exception to the Reporting Requirements. If granted: fort, Illinois. Southard Oil Company, Inc. would not be required to file Form EIA±782B, ``Resellers'/Retailers' Monthly Petro- leum Product Sales Report.'' 5/15/96 ...... Williams Gulf, Memphis, Tennessee ...... RR300±283 Request for Modification/Rescission in the Gulf Refund Proceeding. If granted: The January 30, 1996 Dismissal Letter, Case Number RF300±18405, would be modified regarding the firm's application for refund submitted in the Gulf Refund Proceeding. 5/16/96 ...... FOIA Group, Inc., Alexandria, Virginia ...... VFA±0165 Appeal of an Information Denial. If granted: The May 7, 1996 Freedom of Information Request Denial issued by Savannah River Operations would be rescinded, and FOIA Group, Inc. would receive access to certain DOE information. 44046 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALSÐContinued [Week of May 13 through May 17, 1996]

Date Name and location of applicant Case No. Type of submission

5/16/96 ...... Keith E. Loomis, Washington, DC ...... VFA±0166 Appeal of an Information Request Denial. If granted: The March 25, 1996 Freedom of Information Request Denial issued by the Office of Naval Reactors would be re- scinded, and Keith E. Loomis would receive access to certain DOE information. 5/17/96 ...... Government Accountability Project, Wash- VFA±0167 Appeal of an Information Request Denial. If granted: The ington, DC. Government Accountability Project would receive a waiv- er of all fees incurred in the processing of its Freedom of Information Request for certain DOE information.

REFUND APPLICATIONS RECEIVED [Week of May 13 through May 17, 1996]

Date received Name of refund proceeding/name of refund applicant Case No.

5/13/96 thru 5/17/96 ...... Crude Oil Refund Applications ...... RK272±3541 thru RK272±3560 5/16/96 ...... Petroleum Trading & Transport ...... RF354±6

[FR Doc. 96–21787 Filed 8–26–96; 8:45 am] petitions or other requests listed in this receipt of actual notice, whichever BILLING CODE 6450±01±P Notice were filed with the Office of occurs first. All such comments shall be Hearings and Appeals of the Department filed with the Office of Hearings and of Energy. Appeals, Department of Energy, Notice of Cases Filed; Week of May 20 Any person who will be aggrieved by Washington, D.C. 20585–0107. through May 24, 1996 the DOE action sought in any of these cases may file written comments on the Dated: August 19, 1996. During the week of May 20 through application within ten days of George B. Breznay, May 24, 1996, the appeals, applications, publication of this Notice or the date of Director, Office of Hearings and Appeals.

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALS [Week of May 20 through May 24, 1996]

Date Name and location of applicant Case No. Type of submission

5/20/96 ...... Burlin McKinney, Oliver Springs, Tennessee VFA±0168 Appeal of an Information Request Denial. If granted: The April 26, 1996 Freedom of Information Request Denial issued by Oak Ridge Operations Office would be re- scinded, and Burlin McKinney would receive access to certain DOE information. 5/20/96 ...... Lakes Gas Company, Forest Lake, Min- VER±0001 Request for Modification/Rescission in the Reporting Re- nesota. quirements. If granted: The April 30, 1996 Decision and Order, Case No. VEE±0018, issued to Lakes Gas Com- pany would be modified regarding the firm's request for exception to the reporting requirements. 5/21/96 ...... Idaho Operations Office, Idaho Falls, Idaho VSO±0097 Request for Hearing under 10 C.F.R. Part 710. If granted: An individual employed at Idaho Operations Office would receive a hearing under 10 C.F.R. Part 710. 5/21/96 ...... Oak Ridge Operations Office, Oak Ridge, VSA±0065 Request for Review of Opinion under 10 C.F.R. Part 710. Tennessee. If granted: The April 15, 1996 Opinion of the Office of Hearings and Appeals, Case Number VSO±0065, would be reviewed at the request of an individual employed at Oak Ridge Operations Office. 5/21/96 ...... The Cincinnati Enquirer, Cincinnati, Ohio .... VFA±0169 Appeal of an Information Request Denial. If granted: The May 17, 1996 Freedom of Information Request Denial issued by the Ohio Field Office would be rescinded, and The Cincinnati Enquirer would receive access to certain DOE information. 5/23/96 ...... Glen Milner, Seattle, Washington ...... VFA±0170 Appeal of an Information Request Denial. If granted: The April 22, 1996 Freedom of Information Request Denial issued by Albuquerque Operations Office would be re- scinded, and Glen Milner would receive access to cer- tain DOE information. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44047

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALSÐContinued [Week of May 20 through May 24, 1996]

Date Name and location of applicant Case No. Type of submission

5/24/96 ...... Gerald Kelly, Washington, DC ...... VWA±0011 Request for Hearing under Department of Energy Contrac- tor Employee Protection Program. If granted: A hearing under 10 C.F.R. Part 708 would be held on the com- plaint of Gerald Kelly that reprisals were taken against him by management officials of Am-Pro Protective Agen- cy, Inc. as a consequence of his having disclosed safe- ty/health concerns.

[FR Doc. 96–21788 Filed 8–26–96; 8:45 am] Notice were filed with the Office of publication of this Notice or the date of BILLING CODE 6450±01±P Hearings and Appeals of the Department receipt of actual notice, whichever of Energy. Submissions inadvertently occurs first. All such comments shall be omitted from earlier lists have also been filed with the Office of Hearings and Notice of Cases Filed; Week of July 1 included. Appeals, Department of Energy, through July 5, 1996 Any person who will be aggrieved by Washington, D.C. 20585–0107. During the Week of July 1 through the DOE action sought in these cases Dated: August 19, 1996. July 5, 1996, the appeals, applications, may file written comments on the George B. Breznay, petitions or other requests listed in this application within ten days of Director, Office of Hearings and Appeals.

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALS [Week of July 1, through July 5, 1996]

Date Name and location of applicant Case No. Type of submission

7/2/96 ...... Michael J. Ravnitzky, St. Paul, Min- VFA±0188 Appeal of an Information Request Denial. If granted: The nesota. June 12, 1996 Freedom of Information Request Denial is- sued by Albuquerque Operations Office would be re- scinded, and Michael J. Ravnitzky would receive access to certain DOE information. 7/2/96 ...... States ...... RQ14±611, RQ8± Request for Modification/Rescission in the Anderson, 612, RQ38±613, Belridge, Bob's Oil, Charter, Coline, National Helium, OKC, RQ23±614, Palo Pinto, Pennzoil, Perry Gas, Standard Oil, Time Oil RQ2±615, RQ3± and Vickers Refund Proceedings. If granted: The request, if 616, RQ13±617, granted, would allow for the distribution of remaining sec- RQ5±618, ond-stage funds. RQ10±619, RQ183±620, RQ21±621, RQ334±622, and RQ1±623 7/3/96 ...... Rockville Center Union Free School Dis- RR272±242 Request for Modification/Rescission in the Crude Refund Pro- trict, Cedarhurst, New York. ceeding; If granted: The January 23, 1992 Dismissal Letter, Case Number RF272±78607, issued to Rockville Centre Union Free School District would be modified regarding the firm's application for refund submitted in the Crude refund proceeding.

Date received Name of refund proceeding/name of refund applications Case No.

6/13/96±7/5/96 ...... MacMillan Oil Refund ...... RF355±1 thru RF355±21. 4/23/96±7/5/96 ...... Crude Oil Refund Applications ...... RK272±3614 thru RK272± 3806.

[FR Doc. 96–21789 Filed 8–26–96; 8:45 am] petitions or other requests listed in this receipt of actual notice, whichever BILLING CODE 6450±01±P Notice were filed with the Office of occurs first. All such comments shall be Hearings and Appeals of the Department filed with the Office of Hearings and of Energy. Appeals, Department of Energy, Notice of Cases Filed; Week of July 8 Any person who will be aggrieved by Washington, D.C. 20585–0107. Through July 12, 1996 the DOE action sought in any of these cases may file written comments on the Dated: August 19, 1996. During the week of July 8 through July application within ten days of George B. Breznay, 12, 1996, the appeals, applications, publication of this Notice or the date of Director, Office of Hearings and Appeals. 44048 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALS [Week of July 8 through July 12, 1996]

Name and location Date of applicant Case No. Type of submission

7/8/96 ...... Jackson & Michael RR300±286 Request for Modification/Rescission in the Gulf Oil Refund Proceeding. If granted: Gulf Service, The January 31, 1996 Dismissal, Case No. RF300±19659, issued to Jackson & Charleston, West Michael Gulf Service would be modified regarding the firm's application for re- Virginia. fund submitted in the Gulf Refund Proceeding. 7/8/96 ...... Pittsburgh Naval VSO±0103 Request for Hearing under 10 C.F.R. Part 710. If granted: An individual employed Reactors Office, at Pittsburgh Naval Reactors Office would receive a hearing under 10 C.F.R. West Mifflin, Part 710. Pennsylvania. 7/8/96 ...... United Truck & Bus RR300±285 Request for Modification/Rescission in the Gulf Oil Refund Proceeding. If granted: Service Co., Prov- The May 8, 1996 Dismissal, Case No. RF300±15632, issued to United Truck & idence, Rhode Is- Bus Service Co. would be modified regarding the firm's application for refund land. submitted in the Gulf Oil Refund Proceeding. 7/11/96 ...... Petro San Juan, Fri- VEE±0029 Exception to the Reporting Requirements. If granted: Petro San Juan would not day Harbor, be required to file Form EIA±782B, ``Reseller's/Retailer's Monthly Petroleum Washington. Product Sales Report.'' 7/12/96 ...... Albuquerque Oper- VSO±0104 Request for Hearing under 10 C.F.R. Part 710. If granted: An individual employed ations Office, Al- at Albuquerque Operations Office would receive a hearing under 10 C.F.R. Part buquerque, New 710. Mexico. 7/12/96 ...... Spence, Moriarity & VFA±0190 Appeal of an Information Request Denial. If granted: The June 11, 1996 Freedom Schuster, Jack- of Information Request Denial issued by Albuquerque Operations Office would son, Wyoming. be rescinded, and Spence, Moriarity & Schuster would receive access to certain DOE information. 7/12/96 ...... The National Secu- VFA±0189 Appeal of an Information Request Denial. If granted: The June 18, 1996 Freedom rity Archive, of Information Request Denial issued by the Office of Energy Intelligence would Washington, DC. be rescinded, and the National Security Archive would receive access to certain Department of Energy information.

REFUND APPLICATIONS RECEIVED [Week of July 8 through July 12, 1996]

Date received Name of refund proceeding/name of refund applicant Case No.

7/8/96 thru 7/12/96 ...... Crude Oil Refund Applications ...... RK272±3807 thru RK272±3832 7/8/96 thru 7/12/96 ...... MacMillan Oil Refund Applications ...... RF355±22 thru RF355±27

[FR Doc. 96–21790 Filed 8–26–96; 8:45 am] petitions or other requests listed in this receipt of actual notice, whichever BILLING CODE 6450±01±P Notice were filed with the Office of occurs first. All such comments shall be Hearings and Appeals of the Department filed with the Office of Hearings and of Energy. Appeals, Department of Energy, Notice of Cases Filed; Week of July 15 Any person who will be aggrieved by Washington, D.C. 20585–0107. through July 19, 1996 the DOE action sought in these cases may file written comments on the Dated: August 19, 1996. During the week of July 15 through application within ten days of George B. Breznay, July 19, 1996, the appeals, applications, publication of this Notice or the date of Director, Office of Hearings and Appeals.

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALS [Week of July 15 through July 19, 1996]

Date Name and location of applicant Case No. Type of submission

7/16/96 Ebon Research Systems, Altamonte VFA±0191 Appeal of an Information Request Denial. If granted: The Springs, Florida. July 2, 1996 Freedom of Information Request Denial is- sued by the Office of Inspector General would be re- scinded, and Ebon Research Systems would receive ac- cess to certain DOE information. 7/16/96 Greenpeace, Washington, DC ...... VFA±0192 Appeal of an Information Request Denial. If granted: The June 5, 1996 Freedom of Information Request Denial is- sued by the Office of Defense Programs would be re- scinded, and Greenpeace would receive access to cer- tain DOE information. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44049

LIST OF CASES RECEIVED BY THE OFFICE OF HEARINGS AND APPEALSÐContinued [Week of July 15 through July 19, 1996]

Date Name and location of applicant Case No. Type of submission

7/16/96 Rocky Flats Field Office, Golden, Colorado VSO±0105 Request for Hearing under 10 C.F.R. Part 710. If granted: An individual employed at Rocky Flats Field Office would receive a hearing under 10 C.F.R. Part 710. 7/17/96 Michael A. Grosche, Norwalk, Connecticut VFA±0193 Appeal of an Information Request Denial. If granted: The June 7, 1996 Freedom of Information Request Denial is- sued by the Office of the Inspector General would be re- scinded, and Michael A. Grosche would receive access to certain DOE information. 7/17/96 Paul McGinnis, Huntington Beach, Califor- VFA±0194 Appeal of an Information Request Denial. If granted: The nia. June 17, 1996 Freedom of Information Request Denial issued by the Nevada Operations Office would be re- scinded, and Paul McGinnis would receive access to certain DOE information. 7/19/96 Lee Oil Company, Greensboro, North Caro- VEE±0030 Exception to the Reporting Requirements. If granted: Lee lina. Oil Company would not be required to file Form EIA± 782B, ``Resellers'/Retailers' Monthly Petroleum Product Sales Report.''

REFUND APPLICATIONS RECEIVED [Week of July 15 through July 19, 1996]

Date received Name of refund proceeding/name of refund applicant Case No.

7/15/96 thru 7/19/96 ...... MacMillan Oil Refund Applications ...... RF355±28 thru RF355±34 7/15/96 thru 7/19/96 ...... Crude Oil Refund Applications ...... RG272±1026 thru RG272±1036 7/15/96 thru 7/19/96 ...... Crude Oil Refund Applications ...... RK272±3833, RK272±3841

[FR Doc. 96–21791 Filed 8–26–96; 8:45 am] FOR FURTHER INFORMATION OR A COPY burden on persons providing the BILLING CODE 6450±01±P CALL: Sandy Farmer at EPA, (202) 260– information to or for EPA. 2740, and refer to EPA ICR Number Within 12 months of the effective date 1587.04. of a part 70 program (i.e., the approval ENVIRONMENTAL PROTECTION SUPPLEMENTARY INFORMATION: of that program by EPA), all sources AGENCY subject to the part 70 operating permits [FRL±5560±9] Title: Part 70 Operating Permits program must submit complete permit Regulations, EPA ICR Number 1587.04, applications to the permitting authority Agency Information Collection OMB Control Number 2060–0243, (section 503(c)). Permitting authorities Activities: Submission For OMB expiring September 30, 1996. This is a must submit to EPA all proposed and Review; Comment Request; Operating request for a revision to an existing final permits and any permit Permits Regulations collection. applications, or portions thereof, necessary to carry out EPA’s AGENCY: Environmental Protection Abstract: The information found in responsibilities (section 505(a)(1)). No Agency (EPA). this ICR is required for the submittal of less often than every 6 months sources ACTION: Notice. a complete permit application, as well as for the periodic reporting and must submit to the permitting authority SUMMARY: In compliance with the recordkeeping necessary to maintain the results of any required monitoring or Paperwork Reduction Act (44 U.S.C. that permit once it has been approved. other information necessary to assure 3501 et seq.), this notice announces that Under a fully functional permit compliance with applicable the following Information Collection program, the permitting authority, requirements (section 504(b)). Request (ICR) has been forwarded to the primarily States and local authorities, In accordance with title V, the Office of Management and Budget collect this information from air information submitted by sources as a (OMB) for review and approval: Part 70 pollution sources. This information part of their applications for revisions Operating Permits Regulations, EPA ICR allows the permitting authority and the and renewals is a matter of public Number 1587.05, OMB Control Number Federal government to manage air record. To the extent that the 2060–0243, expiring September 30, resources. The EPA certifies that the information required for the 1996. The ICR describes the nature of information collection is necessary for completeness of a permit is proprietary, the information collection and its the proper performance of EPA’s confidential, or of a nature that it could expected burden and cost; where functions, and that it has practical impair the ability of the source to appropriate, it includes the actual data utility; is not unnecessarily duplicative maintain its market position, that collection instrument. of information EPA otherwise can information is collected and handled DATES: Comments must be submitted on reasonably access; and reduces, to the subject to the requirements of section or before September 26, 1996. extent practicable and appropriate, the 503(e) and section 114(c) of the Act. 44050 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

An agency may not conduct or Ms. Sandy Farmer, U.S. Environmental submit a revision to the applicable sponsor, and a person is not required to Protection Agency, OPPE Regulatory implementation plan, to include respond to, a collection of information Information Division (2137), 401 M provisions that require the unless it displays a currently valid OMB Street, SW., Washington, DC 20460 implementation of RACT. This revision control number. The OMB control and shall be submitted to the EPA not later numbers for EPA’s regulations are listed Office of Information and Regulatory than August 27, 1997. Furthermore, all in 40 CFR Part 9 and 48 CFR Chapter Affairs, Office of Management and States must require sources to 15. The Federal Register notice required Budget; Attention: Desk Officer for implement the required limitations and under 5 CFR 1320.8(d), soliciting EPA, 725 17th Street, NW., work practices under these adopted comments on this collection of Washington, DC 20503. RACT regulations not later than August information was published on June 13, 27, 1998. 1996 (61 FR 30061); no comments were Dated: August 22, 1996. received. Richard Westlund, ADDRESSES: Alternative Control Burden Statement: There are an Acting Director, Regulatory Information Techniques (ACT) Document. The EPA estimated 25,547 sources subject to the Division. published the ACT document for operating permits program. The annual [FR Doc. 96–21825 Filed 8–26–96; 8:45 am] surface coating operations at public reporting and recordkeeping BILLING CODE 6560±50±P shipbuilding and ship repair facilities in burden for this collection of information April 1994. A copy of the ACT document may be obtained from the is estimated to average 211 hours per [AD±FRL±5559±5] source. This reflects all the information National Technical Information Services reporting activities associated with this Control Techniques Guidelines for (NTIS), 5285 Port Royal Road, collection. Burden means the total time, Shipbuilding and Ship Repair Springfield, Virginia 22161, telephone effort, or financial resources expended Operations (Surface Coating) number (800) 553–NTIS. Specify the by persons to generate, maintain, retain, following title when ordering: or disclose or provide information to or AGENCY: Environmental Protection ‘‘Alternative Control Techniques for a Federal agency. This includes the Agency (EPA). Document: Surface Coating Operations time needed to review instructions; ACTION: Notice of release of control at Shipbuilding and Ship Repair develop, acquire, install, and utilize techniques guidelines (CTG). Facilities’’ (EPA 453/R–94–032). technology and systems for the purposes SUMMARY: The CTG for control of Docket: Following publication of the of collecting, validating, and verifying volatile organic compound (VOC) ACT document, the recommended information, processing and emissions from surface coating RACT was developed concurrently with maintaining information, and disclosing operations in the shipbuilding and ship maximum achievable control and providing information; adjust the repair industry is available to assist technology (MACT), on which standards existing ways to comply with any States in analyzing and determining issued under Section 112 of the CAA previously applicable instructions and reasonably available control technology were based. The rulemaking docket, No. requirements; train personnel to be able (RACT) for shipbuilding and ship repair A–92–11, is available for inspection and to respond to a collection of operations located within ozone copying from 8 a.m. to 5:30 p.m., information; search data sources; national ambient air quality standards Monday through Friday, at the EPA’s complete and review the collection of (NAAQS) nonattainment areas. The CTG Air and Radiation Docket and information; and transmit or otherwise also sets forth the adoption and Information Center, Waterside Mall, disclose the information. implementation dates for RACT. The Respondents/Affected Entities: Room M–1500, Ground Floor, 401 M CTG for Shipbuilding and Ship Repair Sources subject to the operating permits Street, SW, Washington, DC 20460; Operations (Surface Coating) is not program. telephone number (202) 260–7548, FAX Estimated Number of Respondents: being issued as a stand-alone document. (202) 260–4400. A reasonable fee may 25,659. Rather, it is a combination of the be charged for copying. information contained in this notice and Frequency of Response: One-time and FOR FURTHER INFORMATION CONTACT: Dr. semiannual. in the EPA’s previously published alternative control techniques (ACT) Mohamed Serageldin at (919) 541–2379, Estimated Total Annual Hour Burden: Coatings and Consumer Products Group, 5.3 million hours. document for this emission source category. Emission Standards Division (MD–13), Estimated Total Annualized Cost U.S. Environmental Protection Agency, EFFECTIVE DATE: Any State that has not Burden: $0. Research Triangle Park, North Carolina Send comments on the Agency’s need adopted an approvable RACT regulation 27711. for this information, the accuracy of the for the source category addressed by this provided burden estimates, and any CTG must submit a RACT regulation for SUPPLEMENTARY INFORMATION: Potentially suggested methods for minimizing these sources within one year from the Affected Entities. Entities potentially respondent burden, including through date of publication of this action in the affected by this action are those the use of automated collection Federal Register. For any State that has shipbuilding and ship repair operations techniques to the following addresses. adopted an approvable RACT regulation which are (or have the potential to Please refer to EPA ICR Number 1587.05 for the source category addressed by this become) ‘‘major’’ sources of VOC and OMB Control Number 2060–0243 in CTG, Section 182(b)(2) of the Clean Air emissions and are located in any correspondence. Act (CAA) requires these States to nonattainment areas of ozone.

Category Examples of potentially affected entities

Industry ...... Any building or repairing, repainting, converting, or alteration of ships. The term ship means any marine or fresh-water vessel, including self-propelled by other craft (barges), and navigational aids (buoys). Note: Offshore oil and gas drilling platforms and vessels used by individuals for noncommercial, non- military, and recreational purposes that are less than 20 meters in length are not considered ships. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44051

Category Examples of potentially affected entities

Federal Gov't ...... Federal Agencies which undertake shipbuilding or ship repair operations (see above) such as the Navy and Coast Guard.

This table is not intended to be I. Background and Purpose techniques. The CTG are intended to exhaustive, but rather provides a guide Section 183(b)(4) of the CAA provide State and local air pollution for readers regarding entities which are specifically requires the EPA to issue a authorities with an information base for the focus of this action. This table lists CTG for the shipbuilding and ship proceeding with their own analyses of the types of entities that the EPA is now repair industry, to reduce air emissions RACT to meet statutory requirements. aware could potentially be affected by of VOC and particulate matter from States may choose to develop their own this action. Other types of entities not coatings (paints) and solvents used at RACT requirements on a case-by-case listed in the table could also be affected new and existing shipbuilding and ship basis, considering the emission (see definition of ship in Appendix B). repair facilities. However, unlike the reductions needed to attain achievement If you have questions regarding the more general CTG requirements which of the NAAQS and the economic and focus or applicability of this action, require the EPA to establish a RACT technical circumstances of the consult the person listed in the level of control, Section 183(b)(4) individual source. The application of RACT and preceding FOR FURTHER INFORMATION requires the EPA to establish a CTG based on best available control measures resulting VOC emissions reduction is to CONTACT section of this notice. ‘‘enhance the quality of the Nation’s air (BACM) for emissions of VOC and The substantive presumptive RACT resources so as to promote the public particles with an aerodynamic diameter determination set out in this action is health and welfare and productive less than or equal to a nominal 10 intended solely as guidance, does not capacity of its population.’’ The intent micrometers (PM–10) from the removal represent final EPA action, and is not of this action is to protect the public or application of coatings and solvents fully developed for judicial review. It is health by requiring the highest degree of at shipbuilding and ship repair reduction in VOC emissions in ozone not intended, nor can it be relied upon, facilities. The BACM is a broadly nonattainment areas, taking into to create any rights enforceable by any defined term referring to ‘‘best’’ consideration the cost of achieving such party in litigation with the United technologies and other ‘‘best’’ available States. The EPA officials may decide to emission reduction, any nonair quality, measures that can be used to control health and environmental impacts, and follow the guidance provided in this pollution. A discussion of the analogy action, or to act at variance with the energy requirements. between BACM and reasonable The VOC that are emitted by guidance, based on an analysis of available control measures is presented specific circumstances. The EPA also shipbuilding and ship repair facilities in State Implementation Plans for include xylene, toluene, ethyl benzene, may change this guidance at any time Serious PM–10 Nonattainment Areas, without public notice. isopropyl alcohol, butyl alcohol, ethyl and Attainment Date Waivers for PM–10 alcohol, methanol, methyl ethyl ketone, Electronic versions of the ACT Nonattainment Areas Generally; methyl isobutyl ketone, ethylene glycol, document as well as this action are Addendum to the General Preamble for and glycol ethers. All of these VOC available for download from the EPA’s Implementation of Title I of the Clean contribute significantly to the formation Technology Transfer Network (TTN), a Air Act Amendments of 1990 (59 FR of ground level ozone which can collection of the EPA’s electronic 41998, August 16, 1994). damage lung tissue and cause serious bulletin boards developed and operated Pursuant to Section 183 of the CAA, respiratory illness. Additionally, VOC by the Office of Air Quality Planning the EPA is required to issue CTG for the can cause reversible or irreversible toxic and Standards. The TTN provides purpose of assisting States in effects following exposure. The information and technology exchange in developing RACT level of controls for potential toxic effects include eye, nose, various areas of air pollution control. sources of VOC emissions. In turn, each throat, and skin irritation and blood The service is free, except for the cost State is required to submit a revision to cell, heart, liver, and kidney damage. of a telephone call. Dial (919) 541–5742 its State implementation plan (SIP) The adverse health effects are associated for data transfer of up to a 14,400 bits providing RACT regulations for sources with a wide range of ambient per second. Internet access is available of VOC that are located in moderate or concentration and exposure time and at http://www.epa.gov/oar/ above ozone nonattainment areas. are influenced by source-specific ttnlbbs.htm/. Additional information Specifically, Section 182(b)(2) of the characteristics such as emission rates CAA requires States to submit RACT on TTN is available from the HELP line and local meteorological conditions. regulations for sources of VOC that are at (919)541–5384. Health impacts are also dependent on covered by a CTG issued after the multiple factors that affect human The information presented in this enactment of the Clean Air Act of 1990, variability such as genetics, age, health section is organized as follows: but prior to the time of attainment. The status (e.g., the presence of pre-existing I. Background and Purpose CTG also applies to those facilities in disease), and lifestyle. Implementation II. BACM and ‘‘Presumptive RACT’’ nonattainment areas located in States of BACM described in the CTG will III. Modification to the ACT Document which already have existing reduce VOC emissions from IV. Model Rule shipbuilding and ship repair (or marine) shipbuilding and ship repair surface V. Summary of Impacts coating regulations; the State limits coating operations by 1,250 megagrams VI. Administrative Designation and must be at least as stringent as the CTG Mg (1,370 tons per year). Regulatory Analysis limits or otherwise must be determined Appendix A. Thinning Calculations to meet RACT (and in this case, BACM). II. BACM and ‘‘Presumptive RACT’’ Appendix B. Definitions The CTG review current knowledge In developing the CTG for this Appendix C. Thinning Chart (Figure 1) and data concerning the technology and industry, the EPA reviewed current Appendix D. VOC Data Sheet costs of various emissions control knowledge and data concerning the 44052 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices technology and costs of various through notice-and-comment made as a result of public comments emission control techniques. The type rulemaking action on the SIP submittal. and provides information for air quality and level of VOC control identified as The EPA believes that RACT, BACM, management agencies to consider in the BACM is based on the marine coating and MACT are identical in this instance development of an enforceable VOC limits being used in California on a category-wide basis. While regulation limiting VOC emissions from (with some exceptions and typically MACT (‘‘maximum’’) implies shipbuilding and ship repair surface modifications). Table 1 presents the more stringent control than BACM coating operations. Additional various paint categories with the (‘‘best’’), which in turn implies more information related to the promulgated maximum as-applied VOC content stringent control than RACT NESHAP is presented in the allowed for each under BACM. These (‘‘reasonable’’), the EPA recognizes that ‘‘Background Information for Final same limits were similarly used in the there may be isolated instances when Standards’’ (EPA/453–R–96–003B). there is such a limited range of controls development of national emission IV. Model Rule standards for hazardous air pollutants for a specified industry or industry (NESHAP) for this same industry and process that two or all three of these In effect, the NESHAP can be used as serve as the basis for MACT. The VOC levels of control may be identical. For a ‘‘model rule’’ providing an coating limits have not changed from a general discussion of these terms, refer organizational framework and what was proposed and promulgated in to ‘‘State Implementation Plans for regulatory language specifically tailored the NESHAP. Also included in BACM Serious PM–10 Nonattainment Areas, for surface coating operations at are work practice guidelines that state: and Attainment Date Waivers for PM–10 shipyards. Information is provided on (1) all handling and transfers of VOC- Nonattainment Areas Generally; applicability, definitions, format of containing materials to and from Addendum to the General Preamble for standards, compliance determinations containers, tanks, vats, drums, and the Implementation of Title I of the (calculations), and reporting and piping systems are conducted in a Clean Air Act Amendments of 1990’’ (59 recordkeeping. Many of the definitions manner that minimizes spills, and (2) all FR 41998, August 16, 1994). used in the ACT were modified/clarified containers, tanks, vats, drums, and The cost-effectiveness of add-on for the NESHAP; therefore, Appendix B piping systems are free of cracks, holes, controls of VOC emissions for spray to this notice has been included to and other defects and remain closed booth painting and tank painting provide the updated terminology and unless materials are being added to or operations was determined to be low. definitions, including technical removed from them. However, the variability and size of amendments to the NESHAP. tanks inside a ship that may be painted, The various compliance options are With regard to PM–10 emissions, the at any one time, in a shipyard makes described and illustrated (in a flow EPA determined BACM to be no control. evaluation of add-on controls on a diagram) in the NESHAP as well. The At proposal, the EPA found no category-wide basis difficult. Controls State or other implementing agency can sufficiently demonstrated technology to have to be evaluated on a case-by-case exercise its prerogative to consider other recommend for quantifiably controlling basis. It should be noted that automated, options provided they meet the PM–10 emissions. The technologies in high-use paint operations may be objectives prescribed in this action. This use and under development were feasibly controlled and would have to guidance is for instructional purposes discussed in the ACT document. There be evaluated on a case-by-case basis. only and, as such, is not binding. The has been no new information received State or other enforcement agency since the proposal that would lead the III. Modifications to the ACT Document should consider all information EPA to change that position. There have been some substantive presented in the ACT document, the Based on the EPA’s work on the technical changes since the ACT promulgated NESHAP, and this final MACT standard and the ACT, the EPA document for this industry was action along with additional has determined that the use of lower- published in April 1994. Most notable information about specific sources to VOC paints is the only technologically of those changes is the inclusion of cold which the regulation will apply. and economically feasible level of weather coating limits and the control for these sources that the EPA incorporation of both mass VOC per V. Summary of Impacts can establish on a category-wide basis. volume (g VOC/L) of coating less water The EPA estimates the State and local The EPA is recommending BACM, and exempt solvents emission limits regulations developed pursuant to this which was published for comment and the equivalent mass VOC per CTG could affect about 100 facilities, along with the NESHAP (59 FR 62681, volume of solids (nonvolatiles) emission reduce emissions of VOCs by December 6, 1994), be selected. Final limits (see Table 1 in this notice). The approximately 1,250 Mg per year, and BACM was identified in this action and solids based units should be used to result in nationwide costs of was considered the ‘‘presumptive determine compliance whenever approximately $1.1 million. These costs norm’’ or presumptive RACT for the thinning solvent is added to a coating. are in addition to the $2.0 million source category. However, BACM, the This change was made to provide a assigned to the NESHAP for controlling presumptive norm, is only a uniform basis for all calculations related volatile organic hazardous air pollutants recommendation. Individual sources to emission reductions (i.e., associated (VOHAP) (and VOC) emissions from the may have alternative BACM with thinning additions or add-on 35 major source shipyards. Further requirements imposed by making an control devices). The procedure for information on costs and controls is adequate infeasibility demonstration (44 calculating the VOC content of a given presented in the Shipbuilding and Ship FR 53761, September 17, 1979). States coating to which thinning solvent is Repair ACT guideline document (EPA and sources may elect to establish added is provided in Appendix A to this 453/R–94–032; NTIS PB94–181694) alternative types of control for submittal notice. Information in Appendix C and published in April l994. to the EPA in a SIP revision. The EPA Appendix D may also be used to would make a final determination of calculate VOC content. VI. Administrative Designation and whether such controls meet the RACT The promulgated NESHAP for this Regulatory Analysis requirement of Section 182(b)(2) and industry (60 FR 64330, December 15, Under Executive Order 12866 (58 FR BACM requirement of Section 183(b)(4), 1995) also reflects technical changes 51735, October 4, 1993), the EPA must Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44053 determine whether the regulatory action environment, public health or safety, or President’s priorities, or the principles is ‘‘significant’’ and therefore subject to State, local, or tribal governments or set forth in the Executive Order. Office of Management and Budget communities. It has been determined that this CTG review and the requirements of the (2) Create a serious inconsistency or document is not a ‘‘significant Executive Order. The Order defines otherwise interfere with an action taken regulatory action’’ under the terms of ‘‘significant regulatory action’’ as one or planned by another agency. Executive Order 12866 and is therefore that is likely to result in a rule that may: (3) Materially alter the budgetary (1) Have an annual effect on the impact of entitlements, grants, user fees, not subject to OMB review. This CTG economy of $100 million or more, or or loan programs, or the rights and document is not a ‘‘rulemaking,’’ rather adversely affect in a material way the obligations of recipients thereof. it provides information to States to aid economy, a sector of the economy, (4) Raise novel legal or policy issues them in developing rules. productivity, competition, jobs, the arising out of legal mandates, the

TABLE 1.ÐVOC LIMITS FOR MARINE COATINGS

VOC limitsa b Grams/liter coating c Coating Category (minus Grams/liter solids water and exempt compounds) t ≥ 4.5°C t < 4.5°Cd

General use ...... 340 571 728 Specialty: Air flask ...... 340 571 728 Antenna ...... 530 1,439 ...... Antifoulant ...... 400 765 971 Heat resistant ...... 420 841 1,069 High-gloss ...... 420 841 1,069 High-temperature ...... 500 1,237 1,597 Inorganic zinc high-build ...... 340 571 728 Military exterior ...... 340 571 728 Mist ...... 610 2,235 ...... Navigational aids ...... 550 1,597 ...... Nonskid ...... 340 571 728 Nuclear ...... 420 841 1,069 Organic zinc ...... 360 630 802 Pretreatment wash primer ...... 780 11,095 ...... Repair and maint. of thermoplastics ...... 550 1,597 ...... Rubber camouflage ...... 340 571 728 Sealant for thermal spray aluminum ...... 610 2,235 ...... Special marking ...... 490 1,178 ...... Speciality interior ...... 340 571 728 Tack coat ...... 610 2,235 ...... Undersea weapons systems ...... 340 571 728 Weld-through precon. primer ...... 650 2,885 ...... a The limits are expressed in two sets of equivalent units. Either set of limits may be used to demonstrate compliance. b To convert from g/L to lb/gal, multiply by (3,785 L/gal)(1/453.6 lb/g) or 1/120. For compliance purposes, metric units define the standards. c VOC limits expressed in units of mass of VOC per volume of solids were derived from the VOC limits expressed in units of mass of VOC per volume of coating assuming the coatings contain no water or exempt compounds and that the volumes of all components within a coating are additive. d These limits apply during cold-weather time periods (i.e., temperatures below 4.5°C). Cold-weather allowances are not given to coatings in categories that permit less than 40 percent solids (nonvolatiles) content by volume. Such coatings are subject to the same limits regardless of weather conditions.

Appendix A. Procedure to Determine mVOC = VOC content of the batch as VOC Contents of Coatings to Which supplied (g VOC/L coating as Thinning Solvent Will Be Added supplied); For a coating to which thinning Dth = Density of the thinner (g/L). solvent is routinely or sometimes added, Where: If Vs is not supplied directly by the the owner or operator shall determine R = Maximum allowable thinning ratio coating manufacturer, the owner or the VOC content as follows: for a given batch (L thinner/L operator shall determine Vs as follows: (1) Prior to the first application of coating as supplied); each batch, designate a single thinner for the coating and calculate the Vs = Volume fraction of solids in the maximum allowable thinning ratio (or batch as supplied (L solids/L ratios, if the affected source complies coating as supplied); with the cold-weather limits in addition VOC limit = Maximum allowable as- Where: to the other limits specified in Table 1 applied VOC content of the coating for each batch as follows: (g VOC/L solids); 44054 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

mvolatiles = Total volatiles in the batch, primarily to be applied to a substrate or gallon) or more elemental zinc including VOC, water, and exempt surface to resist ultraviolet radiation incorporated into an inorganic silicate compounds (g/L coating); and and/or water. binder that is applied to steel to provide Davg = Average density of volatiles in the Certify means, in reference to the VOC galvanic corrosion resistance. (These batch (g/L). content of a coating, to attest to the VOC coatings are typically applied at more In addition, the owner or operator content as determined through analysis than two mil dry film thickness.) may choose to construct nomographs, by Method 24 of Appendix A to Part 60 Maximum allowable thinning ratio based on Equation 1, similar or identical of Title 40 of the Code of Federal means the maximum volume of thinner to the one provided in Appendix C Regulations (CFR) or to attest to the that can be added per volume of coating (Figure 1) as a means of easily VOC content as determined through an without violating the applicable VOC estimating the maximum allowable EPA-approved test method. In the case limit (see Table 1). thinning ratio. The VOC Data Sheet of conflicting results, the EPA Method Military exterior specialty coating or included as Appendix D also provides 24 shall take precedence. Chemical Agent Resistant Coatings useful information in determining Coating means any material that can means any exterior topcoat applied to compliance with the applicable VOC be applied as a thin layer to a substrate military or U.S. Coast Guard vessels that coating limit. and which cures to form a continuous are subject to specific chemical, solid film. biological, and radiological washdown Appendix B. Definitions Cold-weather time period means any requirements. Terms used in this CTG are defined in time during which the ambient Mist specialty coating means any low the CAA or in this section as follows: temperature is below 4.5°C (40°F) and viscosity, thin film, epoxy coating Add-on control system means an air coating is to be applied. applied to an inorganic zinc primer that pollution control device such as a Container of coating means the penetrates the porous zinc primer and carbon absorber or incinerator that container from which the coating is allows the occluded air to escape reduces pollution in an air stream by applied, including but not limited to a through the paint film prior to curing. destruction or removal prior to bucket or pot. Navigational aids specialty coating discharge to the atmosphere. Cure volatiles means reaction means any coating applied to Coast Affected source means any products which are emitted during the Guard buoys or other Coast Guard shipbuilding or ship repair facility chemical reaction which takes place in waterway markers when they are having surface coating operations with a some coating films at the cure recoated aboard ship at their usage site minimum 1,000 liters (L) (264 gallons temperature. These emissions are other and immediately returned to the water. (gal)) annual marine coating usage. than those from the solvents in the Nonskid specialty coating means any Air flask specialty coating means any coating and may, in some cases, coating applied to the horizontal special composition coating applied to comprise a significant portion of total surfaces of a marine vessel for the interior surfaces of high pressure VOC and/or VOHAP emissions. specific purpose of providing slip breathing air flasks to provide corrosion Epoxy means any thermoset coating resistance for personnel, vehicles, or resistance and that is certified safe for formed by reaction of an epoxy resin aircraft. use with breathing air supplies. (i.e., a resin containing a reactive Nonvolatiles (or volume solids) means Antenna specialty coating means any epoxide with a curing agent). substances that do not evaporate coating applied to equipment through Exempt compounds means specified readily. This term refers to the film- which electromagnetic signals must organic compounds that are not forming material of a coating. pass for reception or transmission. considered VOC due to negligible Normally closed means a container or Antifoulant specialty coating means photochemical reactivity. Exempt piping system is closed unless an any coating that is applied to the compounds are specified in 40 CFR operator is actively engaged in adding or underwater portion of a vessel to § 51.100(s). removing material. prevent or reduce the attachment of Facility means all contiguous or Nuclear specialty coating means any biological organisms and that is adjoining property that is under protective coating used to seal porous registered with the EPA as a pesticide common ownership or control, surfaces such as steel (or concrete) that under the Federal Insecticide, including properties that are separated otherwise would be subject to intrusion Fungicide, and Rodenticide Act. only by a road or other public right-of- by radioactive materials. These coatings As applied means the condition of a way. must be resistant to long-term (service coating at the time of application to the General use coating means any life) cumulative radiation exposure substrate, including any thinning coating that is not a specialty coating. (ASTM D4082–83), relatively easy to solvent. Heat resistant specialty coating means decontaminate (ASTM D4256–83), and As supplied means the condition of a any coating that during normal use must resistant to various chemicals to which coating before any thinning, as sold and withstand a temperature of at least the coatings are likely to be exposed delivered by the coating manufacturer to 204°C (400°F). (ASTM 3912–80). (For nuclear coatings, the user. High-gloss specialty coating means see the general protective requirements Batch means the product of an any coating that achieves at least 85 outlined by the U.S. Atomic Energy individual production run of a coating percent reflectance on a 60 degree meter Commission in a report entitled ‘‘U.S. manufacturer’s process. (A batch may when tested by the American Society for Atomic Energy Commission Regulatory vary in composition from other batches Testing and Materials (ASTM) Method Guide 1.54’’ dated June 1973, available of the same product.) D–523. through the Government Printing Office Bitumens mean black or brown High-temperature specialty coating at (202) 512–2249 as document number materials that are soluble in carbon means any coating that during normal A74062–00001.) disulfide, which consist mainly of use must withstand a temperature of at Operating parameter value means a hydrocarbons. least 426°C (800°F). minimum or maximum value Bituminous resin coating means any Inorganic zinc (high-build) specialty established for a control device or coating that incorporates bitumens as a coating means a coating that contains process parameter that, if achieved by principal component and is formulated 960 grams per liter (eight pounds per itself or in combination with one or Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44055 more other operating parameter values, (barges), and navigational aids (buoys). participates in atmospheric determines that an owner or operator This definition includes, but is not photochemical reactions; that is, any has complied with an applicable limited to, all military and Coast Guard organic compound other than those that emission limitation or standard. vessels, commercial cargo and passenger the Administrator designates as having Organic zinc specialty coating means (cruise) ships, ferries, barges, tankers, negligible photochemical reactivity. The any coating derived from zinc dust container ships, patrol and pilot boats, VOC is measured by a reference method, incorporated into an organic binder that and dredges. Pleasure craft and offshore an equivalent method, an alternative contains more than 960 grams of oil and gas drilling platforms are not method, or by procedures specified elemental zinc per liter (eight pounds considered ships. under any rule. A reference method, an per gallon) of coating, as applied, and Shipbuilding and ship repair equivalent method, or an alternative that is used for the expressed purpose operations means any building, repair, method, however, may also measure of corrosion protection. repainting, converting, or alteration of nonreactive organic compounds. In such Pleasure craft means any marine or ships. cases, any owner or operator may Special marking specialty coating fresh-water vessel used by individuals exclude the nonreactive organic for noncommercial, nonmilitary, and means any coating that is used for safety or identification applications, such as compounds when determining recreational purposes that is less than compliance with a standard. For a list 20 meters in length. A vessel rented ship numbers and markings on flight decks. of compounds that the Administrator exclusively to, or chartered for, has designated as having negligible individuals for such purposes shall be Specialty coating means any coating that is manufactured and used for one photochemical reactivity, refer to 40 considered a pleasure craft. CFR § 51.00. Pretreatment wash primer specialty of the specialized applications coating means any coating that contains described within this list of definitions. Volatile organic hazardous air a minimum of 0.5 percent acid, by mass, Specialty interior coating means any pollutant (VOHAP) means any coating used on interior surfaces aboard and is applied only to bare metal to etch compound listed in or pursuant to U.S. military vessels pursuant to a the surface and enhance adhesion of Section 112(b) of the CAA that contains coating specification that requires the subsequent coatings. carbon, excluding metallic carbides and coating to meet specified fire retardant Repair and maintenance of carbonates. This definition includes and low toxicity requirements, in thermoplastic coating of commercial VOC listed as hazardous air pollutant addition to the other applicable military vessels (specialty coating) means any (HAP) and exempt compounds listed as physical and performance requirements. HAP. vinyl, chlorinated rubber, or bituminous Tack specialty coating means any thin resin coating that is applied over the film epoxy coating applied at a Weld-through preconstruction primer same type of existing coating to perform maximum thickness of two dry mils to (specialty coating) means a coating that the partial recoating of any in-use prepare an epoxy coating that has dried provides corrosion protection for steel commercial vessel. (This definition does beyond the time limit specified by the during inventory, is typically applied at not include coal tar epoxy coatings, manufacturer for the application of the less than one mil dry film thickness, which are considered ‘‘general use’’ next coat. does not require removal prior to coatings.) Thinner means a liquid that is used to welding, is temperature resistant (burn Rubber camouflage specialty coating reduce the viscosity of a coating and back from a weld is less than 1.25 means any specially formulated epoxy that evaporates before or during the cure centimeters (0.5 inches)), and does not coating used as a camouflage topcoat for of a film. normally require removal before exterior submarine hulls and sonar Thinning ratio means the volumetric applying film-building coatings, domes. ratio of thinner to coating, as supplied. including inorganic zinc high-build Sealant for thermal spray aluminum Thinning solvent: see Thinner. coatings. When constructing new means any epoxy coating applied to Undersea weapons systems specialty vessels, there may be a need to remove thermal spray aluminum surfaces at a coating means any coating applied to areas of weld-through preconstruction maximum thickness of one dry mil. any component of a weapons system primer due to surface damage or Ship means any marine or fresh-water intended to be launched or fired from contamination prior to application of vessel used for military or commercial under the sea. operations, including self-propelled Volatile organic compounds (VOC) film-building coatings. vessels, those propelled by other craft means any organic compound that BILLING CODE 6560±50±P 44056 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

BILLING CODE 6560±50±C Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44057

Appendix D ozone and related photochemical Waterside Mall, 401 M Street, SW, oxidants. Washington, D.C. EPA Air Docket hours, VOC Data Sheet: 1 Properties of the in Room M1500 of Waterside Mall, are Coating ‘‘As Supplied’’ by the DATES: On June 12, 1996, ORD 8:00 a.m. to 5:30 p.m., Monday through Manufacturer 2 transmitted the final document to the EPA Office of Air and Radiation. ORD Friday, excluding Federal holidays. EPA Coating Manufacturer: llllllllll thereby completed a criteria document Library hours are from 10:00 a.m. until Coating Identification: llllllllll preparation, comment, revision and 2:00 p.m., Monday through Friday, Batch Identification: lllllllllll approval cycle beginning with the call excluding Federal holidays. Supplied To: llllllllllllll for information of August 27, 1992 (57 FOR FURTHER INFORMATION CONTACT: Properties of the coating as supplied1 to FR 38832). James Raub, National Center for the customer: ADDRESSES: Interested parties can obtain Environmental Assessment (MD–52), A. Coating Density: (Dc)sllll g/L a single bound copy of the final Air U.S. Environmental Protection Agency, [ ] ASTM D1475–90* [ ] Other 3 Quality Criteria Document for Ozone Research Triangle Park, NC 27711; llll B. Total Volatiles: (mv)s Mass and Related Photochemical Oxidants by telephone: (919) 541–4157; facsimile: Percent (919) 541–1818; e-mail: 3 contacting the ORD Publications Office, [ ] ASTM D2369–93* [ ] Other Technology Transfer and Support [email protected]. C. Water Content: 1. (mw)sllll Mass Percent Division, National Risk Management SUPPLEMENTARY INFORMATION: Sections [ ] ASTM D3792–91* [ ] ASTM Research Laboratory, U.S. 108 and 109 of the Clean Air Act (CAA) D4017–90* [ ] Other 3 Environmental Protection Agency, 26 govern the establishment, review, and llll 2. (vw)s Volume Percent W. Martin Luther King Drive, revision of National Ambient Air [ ] Calculated [ ] Other 3 Cincinnati, OH 45268; telephone: (513) Quality Standards (NAAQS). Section llll D. Organic Volatiles: (mo)s Mass 569–7562; facsimile: (513) 569–7566. 108 directs the Administrator of the U.S. Percent Please provide your name and mailing Environmental Protection Agency (EPA) E. Nonvolatiles: (v )sllll Volume n address, and request the three-volume to list pollutants that may reasonably be Percent document by the title and EPA [ ] Calculated [ ] Other 3 anticipated to endanger public health or F. VOC Content (VOC)s: document number (EPA/600/P–93/ welfare and to issue air quality criteria 004aF-cF). A limited number of paper 1. llllg/L solids (nonvolatiles) for them. The air quality criteria are to 2. llllg/L coating (less water and copies will be available from the above reflect the latest scientific information exempt compounds) source. After the supply is exhausted, useful in indicating the kind and extent G. Thinner Density: Dthllllg/L copies of the Ozone document can be of all effects on public health and ASTM llll [ ] Other 3 purchased from the National Technical welfare that may be expected from the Remarks: (use reverse side) Information Service (NTIS) by calling presence of the pollutant in ambient air. Signed: lllllllllllllllll (703) 487–4650 or sending a facsimile to In keeping with these CAA mandates, Date: llllllllllllllllll (703) 321–8547. The NTIS order this document evaluates the latest Dated: August 15, 1996. numbers for the Air Quality Criteria for scientific information useful in deriving Mary D. Nichols, Ozone and Related Photochemical criteria to form scientific bases for Assistant Administrator for Air and Oxidants are: Vol. I of III (PB96– decisions regarding possible revision of Radiation. 185582), Vol. II of III (PB96–185590), current Ozone NAAQS. Vol. III of III ( PB96–185608), and for the [FR Doc. 96–21827 Filed 8–26–96; 8:45 am] Dated: August 7, 1996. BILLING CODE 6560±50±P three-volume set (PB96–185574). The Executive Summary of the Air Joseph K. Alexander, Quality Criteria Document for Ozone Acting Assistant Administrator for Research [FRL±5560±7] will be available via the Internet on the and Development. ORD Home Page (http://www.epa.gov/ [FR Doc. 96–21826 Filed 8–26–96; 8:45 am] Air Quality Criteria for Ozone and ORD). Interested parties also can access BILLING CODE 6560±50±P Related Photochemical Oxidants the Executive Summary of the Ozone AGENCY: Environmental Protection Air Quality Criteria Document electronically on the Agency’s Office of Agency. FEDERAL EMERGENCY ACTION: Notice of availability. Air Quality Planning and Standards (OAQPS) Technology Transfer Network MANAGEMENT AGENCY SUMMARY: This notice announces the (TTN) Bulletin Board System (BBS). The Agency Information Collection availability of a final report titled, Air telephone number for the TTN BBS is Activities: Submission for OMB Quality Criteria for Ozone and Related (919) 541–5742. To access the bulletin Review; Comment Request Photochemical Oxidants, Volumes I, II, board, a modem and communications and III (EPA/600/P–93/004aF, bF, and software are necessary. The following SUMMARY: The Federal Emergency cF), prepared by the U.S. Environmental parameters on the communications Management Agency has submitted the Protection Agency’s (EPA) Office of software are required: Data Bits—8; following proposed information Research and Development (ORD). This Parity—N; and Stop Bits—1. The collection to the Office of Management document evaluates the latest scientific Executive Summary will be located on and Budget for review and clearance in information pertaining to health and the Clean Air Act Amendments BBS, accordance with the requirements of the environmental effects associated with under Title I, Policy/Guidance Paperwork Reduction Act of 1995 (44 Documents. If assistance is needed in U.S.C. 3507(a)(1)). * Incorporation by reference—see § 63.14. accessing the system, call the help desk Title: Community Rating System 1 Adapted from EPA–340/1–86–016 (July 1986), at (919) 541–5384 in Research Triangle (CRS) Program—Application p. II–2. Park, NC. A copy of the complete report Worksheets and Commentary and NFIP 2 The subscript ‘‘s’’ denotes each value is for the coating ‘‘as supplied’’ by the manufacturer. is also available for public inspection at Repetitive Loss Correction Worksheet. 3 Explain the other method used under the EPA Air Docket and at the EPA FEMA Form: 81–83, NFIP Repetitive ‘‘Remarks.’’ Library, both at EPA Headquarters, Loss Correction Worksheet. 44058 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Type of Review: Revision of a ADDRESSES: Requests for additional to admit applicants to resident courses currently approved information information or copies of the information and programs offered at the NETC. collection. collection instruments should be made Information from the application form is Abstract: The Community Rating to Muriel B. Anderson, Information maintained in the Student Record System (CRS) is designed by the Federal Collections Officer, Federal Emergency System. The system: (1) Provides a Insurance Administration to encourage, Management Agency, 500 C Street, SW, consolidated record of all FEMA through the use of flood insurance Room 311, Washington, DC 20472. training taken by a student; (2) Identifies premium discounts, communities and Telephone number (202) 646–2625. or verifies participation in any States to undertake activities that will FAX number (202) 646–3524. prerequisite courses; (3) Produces a mitigate flooding and flood damage Dated: July 31, 1996. transcript which can be used by the beyond the minimum standards for student in requesting college credit or National Flood Insurance Program Reginald Trujillo, continuing education units for courses participation. Communities use the Director, Program Services Division, completed; and (4) Determines which NFIP/CRS Coordinator’s Manual which Operations Support Directorate. includes the schedule, commentary and [FR Doc. 96–21808 Filed 8–26–96; 8:45 am] students receive stipends to attending application worksheets. The application BILLING CODE 6718±01±P NFA courses. worksheets, requisite documentation, FEMA Form 75–9, National Fire and certification are submitted to the Academy Roster of Course Completion, appropriate FEMA Regional Office. The Agency Information Collection is used by a State and local sponsoring NFIP Repetitive Loss Correction Activities: Submission for OMB agency to admit applicants to NFA off- Worksheet is used to correct/update Review; Comment Request campus courses. The form is completed property location/address, dates of loss, SUMMARY: The Federal Emergency by the student at the time the class is total number of losses per property, Management Agency has submitted the conducted. The United States Fire community name, community number, following proposed information Administration/NFA has established a and reason for change. collection to the Office of Management strong cooperative partnership with Affected Public: State, local or tribal and Budget for review and clearance in State and local fire training systems. government. accordance with the requirements of the This partnership has resulted in the on- Number of Respondents: 60. Paperwork Reduction Act of 1995 (44 going development and delivery of a Estimated Time per Respondent: 30 U.S.C. 3507(a)(1)). series of courses which constitute the hours. OMB Control Number: 3067–0024. NFA’s off-campus program curriculum. Estimated Total Annual Burden and Title: General Admissions NFA off-campus courses offer short term Recordkeeping Hours: 1,800. Application and National Fire Academy intensive training designed to provide Frequency of Response: Other—once Roster of Course Completion. per respondent with annual updates maximum participation by fire service/ Type of Review: Extension. rescue personnel and allied regarding participation. Form Numbers: FEMA Form 75–5, professionals, who can not afford the COMMENTS: Interested persons are General Admissions Application; FEMA time required for attending on-campus invited to submit written comments on Form 75–9, National Fire Academy resident programs, to attend training the proposed collection to Victoria Roster of Course Completion. Wassmer, Desk Officer for the Federal Abstract: The National Fire Academy courses within the State and local Emergency Management Agency, Office (NFA) and Emergency Management community. of Information and Regulatory Affairs, Institute (EMI) (located at the National Affected Public: Individuals or Office of Management and Budget, Emergency Training Center in households, Not-for-profit institutions, Washington, DC 20503 within 30 days Emmitsburg, Maryland) use FEMA Form and State, local or tribal governments, of the date of this notice. 75–5, General Admissions Application, and Federal Government.

ESTIMATED TOTAL ANNUAL BURDEN HOURS

Time per re- FEMA form No. No. re- sponse Total bur- sponses (minutes) den hours

FEMA Form 75±5 ...... 33,000 ...... 4,950 FEMA Form 75±9 ...... 15,000 3 750

Total ...... 48,000 1 6 5,700 1 Average.

COMMENTS: Interested persons are copies of the forms should be made to Dated: July 31, 1996. invited to submit written comments on Muriel B. Anderson, Information Reginald Trujillo, the proposed collection to Victoria Collections Officer, Federal Emergency Director, Program Services Division, Wassmer, Desk Officer for the Federal Management Agency, 500 C Street, SW, Operations Support Directorate. Emergency Management Agency, Office Room 311, Washington, DC 20472. [FR Doc. 96–21809 Filed 8–26–96; 8:45 am] of Information and Regulatory Affairs, Telephone number (202) 646–2625 or BILLING CODE 6718±01±P Office of Management and Budget, Facsimile number (202) 646–3524. Washington, DC 20503 within 30 days of the date of this notice. FOR FURTHER INFORMATION CONTACT: Requests for additional information or Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44059

Agency Information Collection data provided by States. States provides review process before certain IFG Activities: Submission for OMB FEMA preliminary information on the assistance in the housing category can Review; Comment Request IFG program for staffing and be approved. When the review is management purposes. This report is conducted, the State is required to use SUMMARY: The Federal Emergency completed once for each disaster, and the form to record the necessary Management Agency has submitted the establishes a DARIS report for each new following proposed information information. (5) FEMA Form 76–32, IFG program. (2) FEMA Form 76–28, Worksheet for Case File Reviews. FEMA collection to the Office of Management DARIS Entry Document, Status Report. and Budget for review and clearance in requires States to keep IFG program This report is completed by State IFG information and, on occasion, requests accordance with the requirements of the staff and provided to the FEMA Paperwork Reduction Act of 1995 (44 the States to provide such information, Regional Director. It serves as the as needed. (6) FEMA Form 76–34, U.S.C. 3507(a)(1)). framework for reviewing, analyzing, and OMB Control Number: 3067–0163. Checklist for IFG Program Review. The Title: Individual and Family (IFG) monitoring the progress of the program. checklist is used during the interview The report tracks the number and dollar Grant Program Information. stage of the IFG Mid-Program Review of amount of applications approved by the Type of Review: Extension of a the State’s administration of the State, the number and dollar amounts of currently approved information program. It covers all items that must be grants disbursed, and the number of collection. monitored by FEMA to ensure effective Abstract: Individual and Family Grant grant appeals. The data carried on this report is used to make determinations management of the IFG program. (7) (IFG) Program Information is essential to FEMA Form 76–35, Worksheet for the effective monitoring and on the need for additional allocation and obligation of funds for program Preparing and Reviewing State management of the State-administered Administrative Plans. The worksheet is IFG program by FEMA regional office activity. (3) FEMA Form 76–29, DARIS used to develop or update State staff. FEMA regions have oversight Entry Document, Final Statistical Administrative Plans that must be responsibility for ensuring that the Report. This report captures the funding approved by FEMA. The plans are used States perform and adhere to FEMA history by category of each IFG program. regulations and policy guidance. The information reveals the total IFG by State IFG personnel to This collection of information is a Program cost, and is used to prepare administratively manage the IFG series of forms and reports which assist reports to OMB and the Congress. The Program. (8) FEMA Form 76–38, the FEMA regional office staff in report is also used as a management tool Floodplain Management Analysis. monitoring program delivery to disaster to check on the State’s record of Executive Orders 11988, Floodplain applicants and complying with other accuracy in estimating IFG Program Management Analysis, and 11990, Federal requirements (flood insurance, costs and in requesting advances. States Protection of Wetlands, place a environmental assessments, and are responsible for completing the form, responsibility on FEMA and States to floodplain management). and the FEMA Regional Offices are perform reviews before certain IFG FEMA Forms included in this responsible for entering the information assistance in the housing category can collection are as follows: (1) FEMA into DARIS. (4) FEMA Form 76–30, be approved. The review involves an Form 76–27, DARIS Entry Document, Environmental Review, IFG Program. eight-step decision-making process if Initial Report. This report is initiated by The National Environmental Policy Act the action could affect a floodplain or FEMA Regional Offices based on the (NEPA) requires an environmental wetland.

BURDEN ESTIMATES PER RESPONSE:

No. of re- Annual bur- FEMA form No. spondents Hours per response den hours

FEMA Form 76±27 ...... 25 15 minutes ...... 6.25 FEMA Form 76±28 ...... 25 30 minutes ...... 2,250 FEMA Form 76±29 ...... 25 30 minutes ...... 12.5 FEMA Form 76±30 ...... 1 1 hour ...... 1 FEMA Form 76±32 ...... 25 30 minutes ...... 187.5 FEMA Form 76±34 ...... 25 4 hours ...... 100 FEMA Form 76±35 ...... 25 2.5 hours ...... 62.5 FEMA Form 76±38 ...... 2 2 hours ...... 80

Estimated Total Annual Burden FOR FURTHER INFORMATION CONTACT: Dated: July 31, 1996. Hours: 2,700. Requests for additional information or Reginald Trujillo, Affected Public: State, local or tribal copies of the forms should be made to Director, Program Services Division, governments. Muriel B. Anderson, Information Operations Support Directorate. Collections Officer, Federal Emergency [FR Doc. 96–21810 Filed 8–26–96; 8:45 am] COMMENTS : Interested persons are Management Agency, 500 C Street, SW, BILLING CODE 6718±01±P invited to submit written comments on Room 311, Washington, DC 20472. the proposed collection to Victoria Telephone number (202) 646–2625 or Wassmer, Desk Officer for the Federal Facsimile number (202) 646–3524. Open Meeting, Technical Mapping Emergency Management Agency, Office Advisory Council of Information and Regulatory Affairs, AGENCY: Federal Emergency Office of Management and Budget, Management Agency (FEMA). Washington, DC 20503 within 30 days of the date of this notice. ACTION: Notice of meeting. 44060 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

SUMMARY: In accordance with section Board of Governors of the Federal Reserve Governors not later than September 20, 10(a)(2) of the Federal Advisory System, August 21, 1996. 1996. Committee Act, 5 U.S.C. App. 1, the Jennifer J. Johnson, A. Federal Reserve Bank of Atlanta Federal Emergency Management Agency Deputy Secretary of the Board. (Zane R. Kelley, Vice President) 104 gives notice that the following meeting [FR Doc. 96–21773 Filed 8-26-96; 8:45 am] Marietta Street, N.W., Atlanta, Georgia will be held: BILLING CODE 6210-01-F 30303: Name: Technical Mapping Advisory 1. New South Bancshares, Inc., Council. Formations of, Acquisitions by, and Irondale, Alabama; to become a bank Date of Meeting: September 13, 1996. holding company by acquiring 100 Place: Hall of States, 444 North Capitol Mergers of Bank Holding Companies Street, NW, Washington, D.C. percent of the voting shares of New Time: 8:30 a.m. to 5:00 p.m. The companies listed in this notice South Bank (in organization), Irondale, Proposed Agenda: Discussion of the have applied to the Board for approval, Alabama. National Flood Insurance Program map pursuant to the Bank Holding Company In connection with this application, production process, develop an action plan Act of 1956 (12 U.S.C. 1841 et seq.) Applicant also has applied to acquire for achieving Council goals, and a discussion (BHC Act), Regulation Y (12 CFR Part New South Federal Savings Bank, of the annual report. Status: Open to the public. 225), and all other applicable statutes Irondale, Alabama, and thereby engage and regulations to become a bank in operating a savings association, FOR FURTHER INFORMATION CONTACT: holding company and/or to acquire the pursuant to § 225.25(b)(9) of the Board’s Michael K. Buckley, P.E., Federal assets or the ownership of, control of, or Regulation Y. The proposed activity will Emergency Management Agency, 500 C the power to vote shares of a bank or be conducted throughout the State of Street SW., room 421, Washington, DC bank holding company and all of the Alabama. 20472; telephone (202) 646–2756 or by banks and nonbanking companies B. Federal Reserve Bank of Chicago fax as noted above. owned by the bank holding company, (James A. Bluemle, Vice President) 230 Michael K. Buckley, P.E., including the companies listed below. South LaSalle Street, Chicago, Illinois Chief, Hazard Identification Branch, The applications listed below, as well 60690: Mitigation Directorate. as other related filings required by the [FR Doc. 96–21807 Filed 8–26–96; 8:45 am] 1. Schofield Bancorporation, Inc., La Board, are available for immediate Crosse, Wisconsin; to become a bank BILLING CODE 6718±04±P inspection at the Federal Reserve Bank holding company by acquiring 96 indicated. Once the application has percent of the voting shares of Intercity been accepted for processing, it will also State Bank, Schofield, Wisconsin. FEDERAL RESERVE SYSTEM be available for inspection at the offices of the Board of Governors. Interested C. Federal Reserve Bank of Dallas Change in Bank Control Notices; persons may express their views in (Genie D. Short, Vice President) 2200 Acquisitions of Shares of Banks or writing on the standards enumerated in North Pearl Street, Dallas, Texas 75201- Bank Holding Companies the BHC Act (12 U.S.C. 1842(c)). If the 2272: The notificants listed below have proposal also involves the acquisition of 1. Laredo National Bancshares of applied under the Change in Bank a nonbanking company, the review also Delaware, Inc., Wilmington, Delaware; Control Act (12 U.S.C. 1817(j)) and § includes whether the acquisition of the to acquire 100 percent of the voting 225.41 of the Board’s Regulation Y (12 nonbanking company complies with the shares of Mercantile Financial CFR 225.41) to acquire a bank or bank standards in section 4 of the BHC Act, Enterprises, Inc., Wilmington, Delaware, holding company. The factors that are including whether the acquisition of the and thereby indirectly acquire considered in acting on the notices are nonbanking company can ‘‘reasonably Mercantile Bank, NA, Brownsville, set forth in paragraph 7 of the Act (12 be expected to produce benefits to the Texas. U.S.C. 1817(j)(7)). public, such as greater convenience, Board of Governors of the Federal Reserve The notices are available for increased competition, or gains in System, August 21, 1996. immediate inspection at the Federal efficiency, that outweigh possible Jennifer J. Johnson Reserve Bank indicated. Once the adverse effects, such as undue Deputy Secretary of the Board notices have been accepted for concentration of resources, decreased or [FR Doc. 96–21775 Filed 8-26-96; 8:45 am] unfair competition, conflicts of processing, they will also be available BILLING CODE 6210-01-F for inspection at the offices of the Board interests, or unsound banking practices’’ of Governors. Interested persons may (12 U.S.C. 1843). Any request for a express their views in writing to the hearing must be accompanied by a Notice of Proposals To Engage in Reserve Bank indicated for that notice statement of the reasons a written Permissible Nonbanking Activities or or to the offices of the Board of presentation would not suffice in lieu of To Acquire Companies That are Governors. Comments must be received a hearing, identifying specifically any Engaged in Permissible Nonbanking not later than September 10, 1996. questions of fact that are in dispute, Activities A. Federal Reserve Bank of summarizing the evidence that would Philadelphia (Michael E. Collins, Senior be presented at a hearing, and indicating The companies listed in this notice Vice President) 100 North 6th Street, how the party commenting would be have given notice under section 4 of the Philadelphia, Pennsylvania 19105: aggrieved by approval of the proposal. Bank Holding Company Act (12 U.S.C. 1. Lester G. Abeloff, Stroudsburg, Unless otherwise noted, nonbanking 1843) (BHC Act) and Regulation Pennsylvania, and Rupert Dale Hughes, activities will be conducted throughout Y, (12 CFR Part 225) to engage de novo, East Stroudsburg, Pennsylvania; each to the United States. or to acquire or control voting securities acquire 14 percent of the voting shares Unless otherwise noted, comments or assets of a company that engages of Pocono Community Bank (in regarding each of these applications either directly or through a subsidiary or organization), Stroudsburg, must be received at the Reserve Bank other company, in a nonbanking activity Pennsylvania. indicated or the offices of the Board of that is listed in § 225.25 of Regulation Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44061

Y (12 CFR 225.25) or that the Board has Board of Governors of the Federal Reserve accordance with Section 4.9(b)(6)(ii) of determined by Order to be closely System, August 21, 1996. the Commission’s Rules of Practice (16 related to banking and permissible for Jennifer J. Johnson CFR 4.9(b)(6)(ii)). bank holding companies. Unless Deputy Secretary of the Board Agreement Containing Consent Order otherwise noted, these activities will be [FR Doc. 96–21774 Filed 8-26-96; 8:45 am] conducted throughout the United States. BILLING CODE 6210-01-F In the Matter of Computer Business Services, Inc., a corporation, Andrew L. Each notice is available for inspection Douglass, individually and as an officer of at the Federal Reserve Bank indicated. the corporation, Matthew R. Douglass, Once the notice has been accepted for FEDERAL TRADE COMMISSION individually, and Peter B. Douglass, processing, it will also be available for [File No. 942±3311] individually. inspection at the offices of the Board of The Federal Trade Commission has Governors. Interested persons may Computer Business Services, Inc.; conducted an investigation of certain express their views in writing on the Proposed Consent Agreement with acts and practices of Computer Business question whether the proposal complies Analysis to Aid Public Comment Services, Inc., Andrew L. Douglass, with the standards of section 4 of the AGENCY: Federal Trade Commission. individually and as an officer of BHC Act, including whether Computer Business Services, Inc., ACTION: Proposed consent agreement. consummation of the proposal can Matthew R. Douglass, and Peter B. ‘‘reasonably be expected to produce SUMMARY: In settlement of alleged Douglass, (‘‘proposed respondents’’). benefits to the public, such as greater violations of federal law prohibiting Proposed respondents, having been convenience, increased competition, or unfair or deceptive acts or practices and represented by counsel, are willing to gains in efficiency, that outweigh unfair methods of competition, this enter into an agreement containing a possible adverse effects, such as undue consent agreement, accepted subject to consent order resolving the allegations concentration of resources, decreased or final Commission approval, would contained in the draft compliant. unfair competition, conflicts of prohibit, among other things, the Therefore, interests, or unsound banking practices’’ Sheridan, Indiana home-based computer It is hereby agreed by and between (12 U.S.C. 1843). Any request for a business opportunity firm from Computer Business Services, Inc., hearing on this question must be misrepresenting the success rates or Andrew L. Douglass, individually and accompanied by a statement of the profitability of its clients and from using as an officer of Computer Business reasons a written presentation would deceptive testimonials or other Services, Inc., Matthew R. Douglass, and not suffice in lieu of a hearing, deceptive statements to entice Peter B. Douglass, and counsel for the identifying specifically any questions of consumers to buy its products. The firm Federal Trade Commission that: fact that are in dispute, summarizing the would also be required to disclose that 1. Proposed respondent Computer evidence that would be presented at a federal laws restrict the use of certain Business Services, Inc. is an Indiana hearing, and indicating how the party automatic telephone dialing systems it Corporation with its principal office or commenting would be aggrieved by sells and to pay $5 million in consumer place of business at CBSI Plaza, approval of the proposal. redress. Sheridan, Indiana 46069. Unless otherwise noted, comments DATES: Comments must be received on 2. Proposed respondent Andrew L. regarding the applications must be or before October 28, 1996. Douglass is an officer of Computer Business Services, Inc. and resides at 9 received at the Reserve Bank indicated ADDRESSES: Comments should be E. 191st Street, Westfield, Indiana or the offices of the Board of Governors directed to: FTC/Office of the Secretary, 46074. His principal office or place of not later than September 10, 1996. Room 159, 6th St. and Pa. Ave., N.W., business is the same as that of Computer Washington, D.C. 20580. A. Federal Reserve Bank of Business Services, Inc. Richmond (Lloyd W. Bostian, Jr., Senior FOR FURTHER INFORMATION CONTACT: 3. Proposed respondent Matthew R. Vice President) 701 East Byrd Street, C. Steven Baker, Federal Trade Douglass is a supervisory employee of Richmond, Virginia 23261: Commission, Chicago Regional Office, Computer Business Services, Inc. and 55 East Monroe Street, Suite 1860, 1. First Union Corporation, Charlotte, resides at 9 Forest Bay Lane, Cicero, Chicago, IL 60603. (312) 353–8156; North Carolina; to acquire Home Indiana 46034. His principal office or Catherine R. Fuller, Federal Trade Financial Corporation, Hollywood, place of business is the same as that of Commission, Chicago Regional Office, Florida, and thereby indirectly acquire Computer Business Services, Inc. 55 East Monroe Street, Suite 1860, Home Savings Bank, FSB, Hollywood, 4. Proposed respondent Peter B. Chicago, IL 60603. (312) 353–5576. Florida, and thereby engage in operating Douglass is a supervisory employee of a savings association, pursuant to § SUPPLEMENTARY INFORMATION: Pursuant Computer Business Services, Inc. and 225.25 (b)(9) of the Board’s Regulation to Section 6(f) of the Federal Trade resides at 18846 Casey Rd., Sheridan, Y. Commission Act, 38 Stat. 721, 15 U.S.C. Indiana 46069. His principal office or 46 and Section 2.34 of the Commission’s place of business is the same as that of B. Federal Reserve Bank of San Rules of Practice (16 CFR 2.34), notice Francisco (Kenneth R. Binning, Computer Business Services, Inc. is hereby given that the following 5. Proposed respondent admit all the Director, Bank Holding Company) 101 consent agreement containing a consent jurisdictional facts set forth in the draft Market Street, San Francisco, California order to cease and desist, having been complaint. 94105: filed with and accepted, subject to final 6. Proposed respondents waive: 1. Centennial Holdings, Ltd., approval, by the Commission, has been (a) Any further procedural steps; Olympia, Washington; to engage de placed on the public record for a period (b) The requirement that the novo through its subsidiary, Totten, Inc., of sixty (60) days. Public comment is Commission’s decision contain a Olympia, Washington, in arranging invited. Such comments or views will statement of findings of fact and commercial real estate equity financing, be considered by the Commission and conclusions of law; and pursuant to § 225.25(b)(14) of the will be available for inspection and (c) All rights to seek judicial review Board’s Regulation Y. copying at its principal office in or otherwise to challenge or contest the 44062 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices validity of the order entered pursuant to Order Federal Trade Commission Act, 15 this agreement. U.S.C. 44. Definitions 7. This agreement shall not become 5. ‘‘Automatic telephone dialing part of the public record of the For purposes of this order, the system’’ shall mean as defined in the proceeding unless and until it is following definitions shall apply: Telephone Consumer Protection Act, 47 accepted by the Commission. If this 1. ‘‘Business venture’’ means any U.S.C. 227(a)(1). written or oral business arrangement, agreement is accepted by the I Commission, it, together with the draft however denominated, whether or not complaint, will be placed on the public covered by the Federal Trade It is ordered that respondents, directly record for a period of sixty (60) days, Commission’s trade regulation rule or through any corporation, subsidiary, and information about it publicly entitled ‘‘Disclosure Requirements and division, or other device, in connection released. The Commission thereafter Prohibitions Concerning Franchising with the advertising, promotion, may either withdraw its acceptance of and Business Opportunity Ventures,’’ 16 offering for sale, sale or distribution of this agreement and so notify proposed CFR part 436, and which consists of any business venture, shall not respondents, in which event it will take payment of any consideration for: misrepresent, expressly or by such action as it may consider A. the right to offer, sell, or distribute implication: appropriate, or issue and serve its goods, or services (whether or not A. That consumers who purchase or complaint (in such form as the identified by a trademark, service mark, use such business ventures ordinarily circumstances may require) and trade name, advertising, or other succeed in operating profitable decision in disposition of the commercial symbol); and businesses out of their own homes; proceeding. B. more than nominal assistance to B. That consumers who purchase or use such business ventures ordinarily 8. This agreement is for settlement any person or entity in connection with or incident to the establishment, earn substantial income; purposes only and does not constitute C. The existence of a market for the maintenance, or operation of a new an admission by proposed respondents products and services promoted by business or the entry by an existing that the law has been violated as alleged respondents; business into a new line or type of in the draft complaint, or that the facts D. The amount of earnings, income, or business. as alleged in the draft complaint, other sales that a prospective purchaser could than the jurisdictional facts, are true. 2. ‘‘Clearly and prominently’’ shall reasonably expect to attain by 9. This agreement contemplates that, mean as follows: purchasing a business venture; if it is accepted by the Commission, and A. In a television or video E. The amount of time within which if such acceptance is not subsequently advertisement, the disclosure shall be the prospective purchaser could withdrawn by the Commission pursuant presented simultaneously in both the reasonably expect to recoup his or her to the provisions of Section 2.34 of the audio and video portions of the investment; or Commission’s Rules, the Commission advertisement. The audio disclosure F. By use of hypothetical examples or may, without further notice to proposed shall be delivered in a volume and otherwise, that consumers who respondents, (1) issue its complaint cadence sufficient for an ordinary purchase or use such business ventures corresponding in form and substance consumer to hear and comprehend it. earn or achieve from such participation with the draft complaint and its The video disclosure shall be of a size any stated amount of profits, earnings, decision containing the following order and shade, and shall appear on the income, or sales. Nothing in this in disposition of the proceeding, and (2) screen for a duration, sufficient for an paragraph or any other paragraph of this make information about it public. When ordinary consumer to read and order shall be construed so as to so entered, the order to cease and desist comprehend it. prohibit respondents from using shall have the same force and effect and B. In a radio advertisement, the hypothetical examples which so not may be altered, modified, or set aside in disclosure shall be delivered in a contain any express or implied the same manner and within the same volume and cadence for an ordinary misrepresentations or from representing time provided by statute for other consumer to hear and comprehend it. a suggested retail price for products or orders. The order shall become final C. In a print or electronic services. upon service. Delivery of the complaint advertisement, the disclosure shall be in and the decision and order to proposed a type size, and in a location, that is II respondents by any means specified in sufficiently noticeable for an ordinary It is further ordered that respondents, Section 4.4 of the Commission’s Rules consumer to see and read, in print that directly or through any corporation, shall constitute service. Proposed contrasts with the background against subsidiary, division, or other device, in respondents waive any right they may which it appears. connection with the advertising, have to any other manner of service. Nothing contrary to, inconsistent promotion, offering for sale, sale or The complaint may be used in with, or in mitigation of the disclosure distribution of any business venture, construing the terms of the order. No shall be used in any advertisement. shall not represent, expressly or by agreement, understanding, 3. Unless otherwise specified, implication, the performance, benefits, representation, or interpretation not ‘‘respondents’’ shall mean Computer efficacy or success rate of any product contained in the order or in the Business Services, Inc., a corporation, it or service that is a part of such business agreement may be used to vary or successors and assigns and its officers; venture, unless such representation is contradict the terms of the order. Andrew L. Douglass, individually and true and, at the time of making the 10. Proposed respondents have read as an officer of the corporation; Matthew representation, respondents possess and the draft complaint and consent order. R. Douglass, individually; and Peter B. rely upon competent and reliable They understand that they may be liable Douglass, individually; and each of the evidence that substantiates such for civil penalties in the amount above’s agents, representatives and representation. For purposes of this provided by law and other appropriate employees. order, if such evidence consists of any relief for each violation of the order after 4. ‘‘In or affecting commerce’’ shall test, analysis, research, study, or other it becomes final. mean as defined in Section 4 of the evidence based on the expertise of Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44063 professionals in the relevant area, such IV Douglass, shall be jointly and severally evidence shall be ‘‘competent and It is further ordered that respondents, liable. B. Payment of the sum of five million reliable’’ only if it has been conducted directly or through any corporation, dollars ($5,000,000) in accordance with and evaluated in an objective manner by subsidiary, division, or other device, in subpart A above shall extinguish any persons qualified to do so, using connection with the advertising, monetary claims the FTC has against procedures generally accepted in the promotion, offering for sale, sale or Jeanette L. Douglass and George L. profession to yield accurate and reliable distribution of any business venture results. Douglass based on the allegations set utilizing, employing or involving in any forth in the Complaint as of the date of III manner, an automatic telephone dialing entry of this Order. Nothing is this It is further ordered that respondents, system, shall disclose, clearly and paragraph or any other paragraph of this directly or through any corporation, prominently, and in close proximity to order shall be construed to prohibit the subsidiary, division, or other device, in any representation regarding the use or FTC from seeking administrative or connection with the advertising, potential use of an automatic telephone injunctive relief against Jeanette L. promotion, offering for sale, sale, or dialing system to transmit an Douglass or George L. Douglass. distribution of any business venture or unsolicited advertisement for C. The funds paid by respondents any product or service that is part of any commercial purposes without the prior Computer Business Services, Inc., its business venture in or affecting express consent of the called party, that successors and assigns, Andrew L. commerce, shall not: federal law prohibits the use of an Douglass, Matthew R. Douglass, and A. Use, publish, or refer to any user automatic telephone dialing system to Peter B. Douglass, pursuant to subpart A testimonial or endorsement unless initiate a telephone call to any above shall be paid into a redress fund respondents have good reason to believe residential telephone line using an administered by the FTC and shall be that at the time of such use, publication, artificial or prerecorded voice to used to provide direct redress to or reference, the person or organization transmit an unsolicited advertisement purchasers of Computer Business named subscribes to the facts and for commercial purposes without the Services, Inc. Payment to such persons opinions therein contained; or prior express consent of the called party represents redress and is intended to be B. Represent, in any manner, unless a live operator introduces the compensatory in nature, and no portion expressly or by implication, that the message. Nothing in this paragraph or of such payment shall be deemed a experience represented by any user any other paragraph of this order shall payment of any fine, penalty, or testimonial or endorsement of the be construed so as to prohibit punitive assessment. If the FTC product represents the typical or respondents from making truthful determines, in its sole discretion, that ordinary experience of members of the statements or explanations regarding the redress to purchasers is wholly or public who use the product, unless. laws and regulations regarding the use partially impracticable, any funds not so 1. The representation is true and, at of automatic telephone dialing systems. used shall be paid to the United States the time it is made, respondents possess V Treasury. Respondents Computer and rely upon competent and reliable Business Services, Inc., its successors evidence that substantiates the It is further ordered that respondent and assigns, Andrew L. Douglass, representation; or Computer Business Services, Inc., Matthew R. Douglass, and Peter B. 2. Respondents disclose, clearly and directly or through any corporation, Douglass, shall be notified as to how the prominently, and in close proximity to subsidiary, division, or other device, in funds are disbursed, but shall have no the endorsement or testimonial, either: connection with the advertising, right to contest the manner of a. What the generally expected results promotion, offering for sale, sale or distribution chosen by the Commission. would be for users of the products, or distribution of any product or service, Customers of respondents, as a b. The limited applicability of the shall not make any false or misleading condition of their receiving payments endorser’s experience to what statement or representation of fact, from the Redress Fund, shall be consumers may generally expect to expressly or by implication, material to required to execute releases waiving all achieve, that is, that consumers should a consumer’s decision to purchase claims against respondents, their not expect to experience similar results. respondents’ products or services. officers, directors, employees, and Provided, however, that when VI agents, arising from the sale of endorsements and user testimonials are Computer Business Services, Inc. used, published, or referred to in an It is further ordered that: business ventures by respondents prior audio cassette tape recording, such A. Respondents Computer Business to the date of issuance of this order. The disclosure shall be deemed to be in Services, Inc., its successors and Commission shall provide respondents close proximity to the endorsements or assigns, Andrew L. Douglass, Matthew Computer Business Services, Inc., its user testimonials when the disclosure R. Douglass, and Peter B. Douglass, shall successors and assigns, Andrew L. appears at the beginning and end of pay to the Federal Trade Commission by Douglass, Matthew R. Douglass, and each side of the audio cassette tape electronic funds transfer the sum of five Peter B. Douglass, with the originals of recording containing such endorsements million dollars ($5,000,000) no later all such executed releases received from or user testimonials. Provided further, than fifteen (15) days after the date of respondents’ customers. however, that when both sides of an service of this order. In the event of any audio cassette tape recording contain default on any obligation to make VII such endorsements or user testimonials, payment under this Part, interest, It is further ordered that respondents the disclosure need only appear at the computed pursuant to 28 U.S.C. Computer Business Services, Inc., its beginning and end of the first side and § 1961(a) shall accrue from the date of successors and assigns, Andrew L. the end of the second side of the audio default to the date of payment. In the Douglass, Matthew R. Douglass, and cassette tape recording. event of default, respondents Computer Peter B. Douglass, shall for a period of For purposes of this Part, Business Services, Inc., its successors five (5) years after the last date of ‘‘endorsement’’ shall mean as defined in and assigns, Andrew L. Douglass, dissemination of any representation 16 CFR 255.0(b). Matthew R. Douglass, and Peter B. covered by this order, maintain and 44064 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices upon request make available to the Protection, Federal Trade Commission, been filed, except that the order will not Federal Trade Commission for Washington, D.C. 20580. terminate between the date such inspection and copying: complaint is filed and the later of the X A. All advertisements and deadline for appealing such dismissal or promotional materials containing the It is further ordered that respondents ruling and the date such dismissal or representation; Andrew L. Douglass, Matthew R. ruling is upheld on appeal. B. All materials that were relied upon Douglass and Peter B. Douglass, for a in disseminating the representation; and period of five (5) years after the date of Analysis of Proposed Consent Order to C. All tests, reports, studies, surveys, issuance of this order, shall notify the Aid Public Comment demonstrations, or other evidence in Commission of the discontinuance of The Federal Trade Commission has their possession or control that his or her current business or accepted an agreement, subject to final contradict, qualify, or call into question employment, or of his or her affiliation approval, to a proposed consent order the representation, or the basis relied with any new business or employment. from respondents Computer Business upon for the representation, including The notice shall include respondents’ Services, Inc., Andrew L. Douglass, an complaints and other communications new business addresses and telephone officer of the corporate respondent and with consumers or with governmental numbers and a description of the nature Matthew R. Douglass and Peter B. or consumer protection organizations. of the business or employment and his Douglass, individually. The proposed consent order has been VIII or her duties and responsibilities. All notices required by this Part shall be placed on the public record for sixty It is further ordered that respondent sent by certified mail to the Associate (60) days for reception of comments by Computer Business Services, Inc., and Director, Division of Enforcement, interested persons. Comments received its successors and assigns, and Bureau of Consumer Protection, Federal during this period will become part of respondent Andrew L. Douglass, for a Trade Commission, Washington, DC the public record. After sixty (60) days, period of five (5) years after the date of 20580. the Commission will again review the issuance of this order, shall deliver a agreement and the comments received copy of this order to all current and XI and will decide whether it should future principals, officers, directors, and It is further ordered that Computer withdraw from the agreement and take managers, and to all current and future Business Services, Inc. and its other appropriate action or make final employees, agents, and representatives successors and assigns, and respondents the agreement’s proposed order. having responsibilities with respect to Andrew L. Douglass, Matthew R. This matter concerns earnings and the subject matter of this order, and Douglass and Peter B. Douglass shall, success claims made regarding business shall secure from each such person a within sixty (60) days after the date of ventures promoted by respondents. The signed and dated statement service of this order, and at such other Commission’s complaint charges that acknowledging receipt of the order. times as the Federal Trade Commission respondents made false and Respondents shall deliver this order to may require, file with the Commission unsubstantiated claims that consumers current personnel within thirty (30) a report, in writing, setting forth in who purchase or use respondents’ days after the date of service of this detail the manner and form in which business ventures ordinarily succeed order, and to future personnel within they have complied with this order. and earn substantial income. In fact, the thirty (30) days after the person assumes complaint alleges, the vast majority of such position or responsibilities. XII consumers never even recoup their initial investment. The complaint also IX This order will terminate twenty (20) years from the date of its issuance, or alleges that respondents falsely It is further ordered that respondent twenty (20) years from the most recent represented that endorsements Computer Business Services, Inc. and its date that the United States or the appearing in respondents’ successors and assigns shall notify the Federal Trade Commission files a advertisements reflect the actual Commission at least thirty (30) days compliant (with or without an experiences of its customers and that prior to any change in the corporation accompanying consent decree) in those endorsements reflect the typical or that may affect compliance obligations federal court alleging any violation of ordinary experience of purchasers of arising under this order, including but the order, whichever comes later; respondents’ business ventures. Further, not limited to a dissolution, assignment, provided, however, that the filing of the complaint alleges that respondents sale, merger, or other action that would such a complaint will not affect the represented that consumers can result in the emergence of a successor duration of: successfully utilize automatic telephone corporation; the creation or dissolution A. Any Part in this order that dialing systems to market their of a subsidiary, parent, or affiliate that terminates in fewer than twenty (20) businesses but failed to disclose that engages in any acts or practices subject years; federal law prohibits the use of such to this order; the proposed filing of a B. This order’s application to any systems in the untended mode to bankruptcy petition; or a change in the respondent that is not named as a initiate a call to any residential corporate name or address. Provided, defendant in such complaint; and telephone line in certain circumstances. however, that, with respect to any C. This order if such complaint is The proposed consent order contains proposed change in the corporation filed after the order has terminated provisions designed to remedy the about which respondents learn fewer pursuant to this Part. violations charged and to prevent the than thirty (30) days prior to the date Provided, further, that if such respondents from engaging in similar such action is to take place, respondents complaint is dismissed or a federal acts and practices in the future. The shall notify the Commission as soon as court rules that the respondent did not proposed order extends to all business is practicable after obtaining such violate any provision of the order, and ventures and to all products or services knowledge. All notices required by this the dismissal or ruling is either not that are part of any business venture. Part shall be sent by certified mail to the appealed or upheld on appeal, then the Part I of the proposed consent order Associate Director, Division of order will terminate according to this prohibits the respondents from Enforcement, Bureau of Consumer Part as though the complaint had never misrepresenting the earnings or success Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44065 of its purchasers, the existence of a GENERAL SERVICES small businesses. Annual number of market for the products or services ADMINISTRATION Responses: 215; Average burden per promoted by respondents, or the response: 20 hours; Total burden: 3,400 amount of time within which a Federal Acquisition Policy Division, hours. prospective purchaser can reasonably FAR Secretariat Revision and Stocking 2. HHS Acquisition Regulation— expect to recoup his or her investment. Change of a Standard Form HHSAR Part 333—Disputes and Appeals—Extension no change—0990– Part II of the proposed order prohibits AGENCY: General Services the respondents from misrepresenting 0133—The Litigation and Claims clause Administration. is needed to inform the government of the performance, benefits, efficacy or ACTION: Notice. actions filed against government success rate of any product or service contracts—Respondents: State or local SUMMARY: The General Services that is a part of such business venture, governments, Business or other for- Administration/FAR Secretariat is unless at the time such representation is profit, non-profit institutions, small revising SF 25, Performance Bond to made the respondents possesses and businesses. Annual number of update the burden statement by relies upon competent and reliable Responses: 86; Average burden per correcting the GSA address and deleting evidence that substantiates the response: 30 minutes; Total burden: 43 OMB’s address for submitting comments representation. Part III of the proposed hours. order prohibits the respondents from regarding the burden estimate or any 3. HHS Acquisition Regulation— misrepresenting that a user testimonial other aspect of the collection of HHSAR Part 332—Contract Financing— or endorsement is typical or ordinary information. Extension no change—0990–0134—The This form is now authorized for local and from using, publishing or referring requirements of HHSAR Part 332 are reproduction, and you can obtain the to any user testimonial or endorsement needed to ascertain costs associated updated camera copy in two ways: with certain contracts so as to timely unless respondents have good reason to On the internet. Address: http:// believe that at the time of such use, pay contractor. Respondents: State or www.gsa.gov/forms, or; local governments, small businesses— publication or reference, the person or From CARM, Attn.: Barbara Williams, Burden Information for Cost Sharing organization named subscribes to the (202) 501–0581. facts and opinions stated herein. Part IV Clause—Number of Respondents: 7; FOR FURTHER INFORMATION CONTACT: Annual Number of Responses per of the proposed order requires FAR Secretariat, (202) 501–4225. This Respondent: 10; Average Burden per respondents to disclose, in close contact is for information on completing Response: one hour; Annual Burden: 70 proximity to any representation the form and interpreting the FAR only. hours—Burden Information for Letter of regarding the use or potential use of an DATES: Effective August 27, 1996. Credit Clause—Number of Respondents: automatic telephone dialing system, that Dated: August 15, 1996. 39; Annual Number of Responses: 4; federal law prohibits the use of an Theodore D. Freed, Burden per Response: 1 hour; Estimated automatic telephone dialing system to Annual Burden: 156 hours—Total initiate a telephone call to any Standard and Optional Forms Management Officer. Burden: 226 hours. residential telephone line using an OMB Desk Officer: Allison Eydt. [FR Doc. 96–21769 Filed 8–26–96; 8:45 am] artificial or prerecorded voice to Copies of the information collection transmit an unsolicited advertisement BILLING CODE 6820±34±M packages listed above can be obtained for commercial purposes without the by calling the OS Reports Clearance prior express consent of the called party Officer on (202) 690–6207. Written DEPARTMENT OF HEALTH AND unless a live operator introduces the comments and recommendations for the HUMAN SERVICES message. proposed information collection should be sent directly to the OMB desk officer Office of the Secretary The remaining parts of the proposed designated above at the following consent order require the respondents to Agency Information Collection address: Human Resources and Housing maintain materials relied upon to Branch, Office of Management and substantiate claims covered by the Activities: Submission for OMB Review; Comment Request Budget, New Executive Office Building, order, to distribute copies of the order Room 10235, 725 17th Street NW., to each of its operating divisions and to The Department of Health and Human Washington, DC 20503. certain company officials, to notify the Services, Office of the Secretary Comments may also be sent to Commission of any changes in corporate publishes a list of information Cynthia Agens Bauer, OS Reports structure that might affect compliance collections it has submitted to the Office Clearance Officer, Room 503H, with the Order, and to file one or more of Management and Budget (OMB) for Humphrey Building, 200 Independence compliance reports. clearance in compliance with the Avenue SW., Washington DC 20201. The purpose of this analysis is to Paperwork Reduction Act of 1995 (44 Written comments should be received facilitate public comment on the U.S.C. Chapter 35) and 5 CFR 1320.5. within 30 days of this notice. The following are those information proposed consent order. It is not Dated: August 16, 1996. collections recently submitted to OMB. William R. Beldon, intended to constitute an official 1. HHS Acquisition Regulations— Acting Deputy Assistant Secretary, Budget. interpretation of the agreement and HHSAR Part 342—Contract proposed order or to modify in any way Administration—Extension no change— [FR Doc. 96–21760 Filed 8–26–96; 8:45 am] their terms. 0990–0131—HHSAR 342.7103 requires BILLING CODE 4150±04±M Donald S. Clark, reporting information when a cost Secretary. overrun is anticipated. The information National Committee on Vital and Health [FR Doc. 96–21772 Filed 8–26–96; 8:45 am] is used to determine if a proposed Statistics: Meeting BILLING CODE 6750±01±M overrun is reasonable—Respondents— State or local governments, Business or Pursuant to the Federal Advisory other for-profit, non-profit institutions, Committee Act, the Department of 44066 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Health and Human Services announces Dated: August 21, 1996. Proposed Projects the following advisory committee James Scanlon, 1. Prevention Marketing Initiative meeting. Director, Division of Data Policy. Community Demonstration Site Project Name: National Committee on Vital and [FR Doc. 96–21777 Filed 8–26–96; 8:45 am] Evaluation—(0920–0343)—Extension— Health Statistics (NCVHS). BILLING CODE 4151±04±M The Centers for Disease Control and Times and Dates: 9 a.m.–5 p.m., September Prevention, National Center for HIV, 18, 1996. 9 a.m.–5 p.m., September 19, 1996. STD, and TB Prevention, Division of Place: Room 503A, Hubert H. Humphrey Centers for Disease Control and HIV/AIDS Prevention, Community Building, 200 Independence Avenue, SW., Prevention Assistance, Planning, and National Washington, DC 20201. Partnership Branch’s Prevention Status: Open. [INFO±96±23] Purpose: The meeting will provide an Communications unit is planning to opportunity for recognizing the contributions Proposed Data Collections Submitted conduct a longitudinal track study as of ten retiring members and welcoming the for Public Comment and part of the evaluation of a five-city HIV new Chairperson and nine new members. Recommendations prevention demonstration program. This Departmental officials will brief the demonstration program is part of the Committee on recent legislative In compliance with the requirement CDC’s national Prevention Marketing developments and new Committee of Section 3506(c)(2)(A) of the Initiative. The local demonstration responsibilities, activities of the HHS Data Paperwork Reduction Act of 1995 for program involves the integration of Council, and related data policy activities; opportunity for public comment on social marketing processes and the new members also will be briefed by the proposed data collection projects, the community participation in an effort to retiring and continuing members on pending issues and recent accomplishments, Centers for Disease Control and develop and implement HIV prevention including the recently completed report and Prevention (CDC) will publish periodic activities. recommendations on Core Health Data summaries of proposed projects. To Community groups in the local Elements. The Committee also will discuss request more information on the demonstration sites have chosen to its future priorities and work plans. proposed projects or to obtain a copy of target people 25 years old and younger Notice: In the interest of security, the the data collection plans and using a variety of intervention strategies. Department has instituted stringent instruments, call the CDC Reports Decisions about the nature of local procedures for entrance to the Hubert H. Clearance Officer on (404) 639–7090. interventions are based on formative Humphrey building by non-government Comments are invited on: (a) Whether research conducted in each community. employees. Thus, persons without a the proposed collection of information It is hoped that this demonstration government identification card should plan is necessary for the proper performance project will result in reductions in HIV to arrive at the building each day either of the functions of the agency, including risk behavior among people 25 years old between 8:30 and 9:00 a.m. or 12:30 and 1:00 p.m. so they can be escorted to the meeting. whether the information shall have and younger, as well as enhanced Entrance to the meeting at other times during practical utility; (b) the accuracy of the collaboration among individuals and the day cannot be assured. agency’s estimate of the burden of the organizations in the participating Contact Person for More Information: proposed collection of information; (c) communities. Substantive program information as well as ways to enhance the quality, utility, and To evaluate the effectiveness of the summaries of the meeting and a roster of clarity of the information to be interventions, questionnaire data will be committee members may be obtained from collected; and (d) ways to minimize the collected from people 25 years old and James Scanlon, NCVHS Executive Staff burden of the collection of information under in demonstration communities. Director, Office of the Assistant Secretary for on respondents, including through the These data will be collected before and Planning and Evaluation, DHHS, Room 440– use of automated collection techniques after prevention activities and message D. Humphrey Building, 200 Independence for other forms of information campaigns are launched. A baseline Avenue SW., Washington, DC 20201, telephone (202) 690–7100, or Gail F. Fisher, technology. Send comments to Wilma survey is planned in Fall, 1996 under Ph.D., Executive Secretary, NCVHS, NCHS, Johnson, CDC Reports Clearance Officer, OMB NO. 0920–0343 (Evaluation of the CDC, Room 1100, Presidential Building, 6525 1600 Clifton Road, MS–D24, Atlanta, National AIDS Information and Belcrest Road, Hyattsville, Maryland 20782, GA 30333. Written comments should be Education Program Activities). The cost telephone 301/436–7050. received within 60 days of this notice. to respondents is estimated at $10,000.

Average No. of re- No. of re- burden/re- Total bur- Respondents spondents sponses/re- sponse (in den (in hrs.) spondent hrs.)

Young people under 25 years of age in targeted prevention program communities ...... 4,000 1 .25 1000 Total ...... 1000

Dated: August 21, 1996. Food and Drug Administration SUMMARY: The Food and Drug Wilma G. Johnson, Administration (FDA) is announcing Acting Associate Director for Policy Planning [Docket No. 96F±0245] that Hoechst Celanese Corp. has filed a and Evaluation, Centers for Disease Control petition proposing that the food additive and Prevention (CDC). Hoechst Celanese Corp.; Filing of regulations be amended to provide for [FR Doc. 96–21778 Filed 8–26–96; 8:45 am] Food Additive Petition the expanded safe use of 4-chloro-2-[[5- hydroxy-3-methyl-1-(3-sulfophenyl)-1H- BILLING CODE 4163±18±P AGENCY: Food and Drug Administration, pyrazol-4-yl]azo]-5- HHS. methylbenzenesulfonic acid,calcium ACTION: Notice. salt (1:1) (C.I. Pigment Yellow 191) as a Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44067 colorant for all polymers intended for finding will be published with the Management Branch (address above) for use in contact with food. regulation in the Federal Register in public review and comment. Interested DATES: Written comments on the accordance with 21 CFR 25.40(c). persons may, on or before September 26, petitioner’s environmental assessment Dated: August 19, 1996. 1996, submit to the Dockets by September 26, 1996. Alan M. Rulis, Management Branch (address above) ADDRESSES: Submit written comments written comments. Two copies of any Director, Office of Premarket Approval,Center to the Dockets Management Branch for Food Safety and Applied Nutrition. comments are to be submitted, except (HFA–305), Food and Drug that individuals may submit one copy. [FR Doc. 96–21850 Filed 8–26–96; 8:45 am] Administration, 12420 Parklawn Dr., Comments are to be identified with the rm. 1–23, Rockville, MD 20857. BILLING CODE 4160±01±F docket number found in brackets in the FOR FURTHER INFORMATION CONTACT: John heading of this document. Received R. Bryce, Center for Food Safety and [Docket No. 96F±0176] comments may be seen in the office Applied Nutrition (HFS–216), Food and above between 9 a.m. and 4 p.m., Drug Administration, 200 C St. SW., Indirect Food Additives: Polymers Monday through Friday. FDA will also Washington, DC 20204, 202–418–3023. Toray Industries (America) Inc.; Filing place on public display any of Food Additive Petition SUPPLEMENTARY INFORMATION: Under the amendments to, or comments on, the Federal Food, Drug, and Cosmetic Act petitioner’s environmental assessment AGENCY: Food and Drug Administration, without further announcement in the (sec. 409(b)(5) (21 U.S.C. 348(b)(5))), HHS. notice is given that a food additive Federal Register. If, based on its review, ACTION: petition (FAP 6B4493) has been filed by Notice. the agency finds that an environmental Hoechst Celanese Corp., 500 impact statement is not required and SUMMARY: The Food and Drug this petition results in a regulation, the Washington St., Coventry, RI 02816. The Administration (FDA) is announcing petition proposes to amend the food notice of availability of the agency’s that Toray Industries (America) Inc., has finding of no significant impact and the additive regulations in § 178.3297 filed a food additive petition proposing Colorants for polymers (21 CFR evidence supporting that finding will be that the food additive regulations be published with the regulation in the 178.3297) to provide for the expanded amended to provide for the safe use of safe use of 4-chloro-2-[[5-hydroxy-3- Federal Register in accordance with 21 Nylon 6/12 copolymers for use as a non- CFR 25.40(c). methyl-1-(3-sulfophenyl)-1H-pyrazol-4- food contact layer of laminated articles yl]azo]-5-methylbenzenesulfonic intended for use with food. Dated: May 24, 1996. acid,calcium salt (1:1) (C.I. Pigment Alan M. Rulis, DATES: Written comments on the Yellow 191) as a colorant for all petitioner’s environmental assessment Director, Office of Premarket Approval, polymers intended for use in contact by September 26, 1996. Center for Food Safety and Applied Nutrition. with food. ADDRESSES: Submit written comments [FR Doc. 96–21847 Filed 8–26–96; 8:45 am] The potential environmental impact to the Dockets Management Branch BILLING CODE 4160±01±F of this action is being reviewed. To (HFA–305), Food and Drug encourage public participation Administration, 12420 Parklawn Dr., consistent with regulations promulgated rm. 1–23, Rockville, MD 20857. under the National Environmental [Docket No. 96F±0293] Policy Act (40 CFR 1501.4(b)), the FOR FURTHER INFORMATION CONTACT: Elke Jensen, Center for Food Safety and Zeneca Inc.; Filing of Food Additive agency is placing the environmental Petition assessment submitted with the petition Applied Nutrition (HFS–217), Food and Drug Administration, 200 C St. SW., that is the subject of this notice on AGENCY: Food and Drug Administration, Washington, DC 20204, 202–418–3109. public display at the Dockets HHS. Management Branch (address above) for SUPPLEMENTARY INFORMATION: Under the ACTION: public review and comment. Interested Federal Food, Drug, and Cosmetic Act Notice. (sec. 409(b)(5) (21 U.S.C. 348 (b)(5)), persons may, on or before September 26, SUMMARY: The Food and Drug 1996, submit to the Dockets notice is given that a food additive Administration (FDA) is announcing Management Branch (address above) petition (FAP 6B4505) has been filed by that Zeneca Inc., has filed a petition written comments. Two copies of any Toray Industries (America) Inc., c/o proposing that the food additive comments are to be submitted, except Keller and Heckman, 1001 G St. NW., regulations be amended to provide for that individuals may submit one copy. suite 500 West, Washington, DC 20001. the safe use of 2-methyl-4,5- Comments are to be identified with the The petition proposes to amend the food trimethylene-4-isothiazolin-3-one as a docket number found in brackets in the additive regulations in Part 177 Indirect preservative for paper and paperboard heading of this document. Received Food Additives: Polymers (21 CFR part coatings used in contact with food. comments may be seen in the office 177) to provide for the safe use of Nylon above between 9 a.m. and 4 p.m., 6/12 copolymers for use as a non-food DATES: Written comments on the Monday through Friday. FDA will also contact layer of laminated articles petitioner’s environmental assessment place on public display any intended for use with food. by September 26, 1996. amendments to, or comments on, the The potential environmental impact ADDRESSES: Submit written comments petitioner’s environmental assessment of this action is being reviewed. To to the Dockets Management Branch without further encourage public participation (HFA–305), Food and Drug announcement in the Federal Register. consistent with regulations promulgated Administration, 12420 Parklawn Dr., If, based on its review, the agency finds under the National Environmental rm. 1–23, Rockville, MD 20857. that an environmental impact statement Policy Act (40 CFR 1501.4(b)), the FOR FURTHER INFORMATION CONTACT: Vir is not required and this petition results agency is placing the environmental D. Anand, Center for Food Safety and in a regulation, the notice of availability assessment submitted with the petition Applied Nutrition (HFS–216), Food and of the agency’s finding of no significant that is the subject of this notice on Drug Administration, 200 C St. SW., impact and the evidence supporting that public display at the Dockets Washington, DC 20204, 202–418–3081. 44068 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

SUPPLEMENTARY INFORMATION: Under the [Docket No. 96E±0099] issued), FDA’s determination of the Federal Food, Drug, and Cosmetic Act length of a regulatory review period for (sec. 409(b)(5) (21 U.S.C. 348(b)(5))), Determination of Regulatory Review a human drug product will include all Period for Purposes of Patent notice is given that a food additive of the testing phase and approval phase Extension; CEDAX Oral Suspension petition (FAP 6B4516) has been filed by as specified in 35 U.S.C. 156(g)(1)(B). Zeneca Inc., Foulkstone 1405, 2d, 1800 AGENCY: Food and Drug Administration, FDA recently approved for marketing Concord Pike, Wilmington, DE 19850– HHS. the human drug product CEDAX Oral 5457. The petition proposes to amend ACTION: Notice. Suspension (ceftibuten dihydrate).  the food additive regulations in CEDAX Oral Suspension is indicated SUMMARY: § 176.170 Components of paper and The Food and Drug for the treatment of individuals with Administration (FDA) has determined paperboard in contact with aqueous and mild-to-moderate infections caused by the regulatory review period for fatty foods (21 CFR 176.170) to provide susceptible strains of the designated CEDAX Oral Suspension and is for the safe use of 2-methyl-4,5- microorganisms in the specific publishing this notice of that conditions: Acute Bacterial trimethylene-4-isothiazolin-3-one as a determination as required by law. FDA Exacerbations of Chronic Bronchitis due preservative for paper and paperboard has made the determination because of to Haemophilus influenzae (including coatings used in contact with food. the submission of an application to the B-lactamase-producing strains), The potential environmental impact Commissioner of Patents and Moraxella catarrhalis (including B- of this action is being reviewed. To Trademarks, Department of Commerce, lactamase producing strains) or encourage public participation for the extension of a patent which Streptoccocus pneumoniae (penicillin- consistent with regulations promulgated claims that human drug product. susceptible strains only), Acute under the National Environmental ADDRESSES: Written comments and Bacterial Otitis Media due to Policy Act (40 CFR 1501.4(b)), the petitions should be directed to the Haemophilis influenza (including B- agency is placing the environmental Dockets Management Branch (HFA– lactamase producing strains), Moraxella assessment submitted with the petition 305), Food and Drug Administration, catarrhalis (including B-lactamase that is the subject of this notice on 12420 Parklawn Dr., rm. 1–23, producing strains) or Streptococcus public display at the Dockets Rockville, MD 20857. pyogenes, or Pharyngitis and Tonsillitis Management Branch (address above) for FOR FURTHER INFORMATION CONTACT: due to Streptococcus pyogenes. public review and comment. Interested Brian J. Malkin, Office of Health Affairs Subsequent to this approval, the Patent persons may, on or before September 26, (HFY–20), Food and Drug and Trademark Office received a patent Administration, 5600 Fishers Lane, term restoration application for 1996, submit to the Dockets  Management Branch (address above) Rockville, MD 20857, 301–443–1382. CEDAX Oral Suspension (U.S. Patent No. 4,634,697) from Schering-Plough written comments. Two copies of any SUPPLEMENTARY INFORMATION: The Drug Corp. and the Patent and Trademark comments are to be submitted, except Price Competition and Patent Term Office requested FDA’s assistance in that individuals may submit one copy. Restoration Act of 1984 (Pub. L. 98–417) determining this patent’s eligibility for Comments are to be identified with the and the Generic Animal Drug and Patent Term Restoration Act (Pub. L. 100–670) patent term restoration. In a letter dated docket number found in brackets in the April 10, 1996, FDA advised the Patent heading of this document. Received generally provide that a patent may be extended for a period of up to 5 years and Trademark Office that this human comments may be seen in the office so long as the patented item (human drug product had undergone a above between 9 a.m. and 4 p.m., drug product, animal drug product, regulatory review period and that the Monday through Friday. FDA will also medical device, food additive, or color approval of CEDAX Oral Suspension place on public display any additive) was subject to regulatory represented the first permitted amendments to, or comments on, the review by FDA before the item was commercial marketing or use of the petitioner’s environmental assessment marketed. Under these acts, a product’s product. Shortly thereafter, the Patent without further announcement in the regulatory review period forms the basis and Trademark Office requested that Federal Register. If, based on its review, for determining the amount of extension FDA determine the product’s regulatory the agency finds that an environmental an applicant may receive. review period. impact statement is not required and A regulatory review period consists of FDA has determined that the this petition results in a regulation, the two periods of time: A testing phase and applicable regulatory review period for notice of availability of the agency’s an approval phase. For human drug CEDAX Oral Suspension is 2,641 days. finding of no significant impact and the products, the testing phase begins when Of this time, 1,179 days occurred during evidence supporting that finding will be the exemption to permit the clinical the testing phase of the regulatory published with the regulation in the investigations of the drug becomes review period, while 1,462 days Federal Register in accordance with 21 effective and runs until the approval occurred during the approval phase. CFR 25.40(c). phase begins. The approval phase starts These periods of time were derived from with the initial submission of an the following dates: Dated: August 8, 1996. application to market the human drug 1. The date an exemption under Alan M. Rulis, product and continues until FDA grants section 505(i) of the Federal Food, Drug, Director, Office of Premarket Approval, permission to market the drug product. and Cosmetic Act (21 U.S.C. 355(i)) Center for Food Safety and Applied Nutrition. Although only a portion of a regulatory became effective: September 28, 1988. [FR Doc. 96–21845 Filed 8–26–96; 8:45 am] review period may count toward the The applicant claims September 29, BILLING CODE 4160±01±F actual amount of extension that the 1988, as the date the investigational new Commissioner of Patents and drug application (IND) became effective. Trademarks may award (for example, However, FDA records indicate that the half the testing phase must be IND effective date was September 28, subtracted as well as any time that may 1988, which was 30 days after FDA have occurred before the patent was receipt of the IND. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44069

2. The date the application was ACTION: Notice. (anastrozole). ARIMIDEX is indicated initially submitted with respect to the for the treatment of advanced breast human drug product under section 507 SUMMARY: The Food and Drug cancer in postmenopausal women with of the Federal Food, Drug, and Cosmetic Administration (FDA) has determined disease progression following tamoxifen Act (21 U.S.C. 357): December 20, 1991. the regulatory review period for therapy. Subsequent to this approval,  FDA has verified the applicant’s claim ARIMIDEX and is publishing this the Patent and Trademark Office that the new drug application (NDA) for notice of that determination as required received a patent term restoration CEDAX Oral Suspension (NDA 50– by law. FDA has made the application for ARIMIDEX (U.S. Patent 686) was initially submitted on determination because of the No. 4,935,437) from Zeneca Ltd., and December 20, 1991. submission of an application to the the Patent and Trademark Office 3. The date the application was Commissioner of Patents and requested FDA’s assistance in approved: December 20, 1995. FDA has Trademarks, Department of Commerce, determining this patent’s eligibility for verified the applicant’s claim that NDA for the extension of a patent which patent term restoration. In a letter dated 50–686 was approved on December 20, claims that human drug product. May 28, 1996, FDA advised the Patent 1995. ADDRESSES: Written comments and and Trademark Office that this human This determination of the regulatory petitions should be directed to the drug product had undergone a review period establishes the maximum Dockets Management Branch (HFA– regulatory review period and that the potential length of a patent extension. 305), Food and Drug Administration, approval of ARIMIDEX represented However, the U.S. Patent and 12420 Parklawn Dr., rm. 1–23, the first permitted commercial Trademark Office applies several Rockville, MD 20857. marketing or use of the product. Shortly statutory limitations in its calculations FOR FURTHER INFORMATION CONTACT: thereafter, the Patent and Trademark of the actual period for patent extension. Brian J. Malkin, Office of Health Affairs Office requested that FDA determine the In its application for patent extension, (HFY–20), Food and Drug product’s regulatory review period. this applicant seeks 1,826 days of patent Administration, 5600 Fishers Lane, FDA has determined that the term extension. Rockville, MD 20857, 301–443–1382. applicable regulatory review period for Anyone with knowledge that any of ARIMIDEX is 1,336 days. Of this time, SUPPLEMENTARY INFORMATION: The Drug the dates as published is incorrect may, 1,062 days occurred during the testing Price Competition and Patent Term on or before Octpber 28, 1996, submit to phase of the regulatory review period, Restoration Act of 1984 (Pub. L. 98–417) the Dockets Management Branch while 274 days occurred during the and the Generic Animal Drug and Patent (address above) written comments and approval phase. These periods of time Term Restoration Act (Pub. L. 100–670) ask for a redetermination. Furthermore, were derived from the following dates: generally provide that a patent may be any interested person may petition FDA, 1. The date an exemption under extended for a period of up to 5 years on or before February 24, 1997, for a section 505(i) of the Federal Food, Drug, so long as the patented item (human determination regarding whether the and Cosmetic Act (21 U.S.C. 355(i)) drug product, animal drug product, applicant for extension acted with due became effective: May 2, 1992. The medical device, food additive, or color diligence during the regulatory review applicant claims May 1, 1992, as the additive) was subject to regulatory period. To meet its burden, the petition date the investigational new drug review by FDA before the item was must application (IND) became effective. contain sufficient facts to merit an FDA marketed. Under these acts, a product’s However, FDA records indicate that the investigation. (See H. Rept. 857, part 1, regulatory review period forms the basis IND effective date was May 2, 1992, 98th Cong., 2d sess., pp. 41–42, 1984.) for determining the amount of extension which was 30 days after FDA receipt of Petitions should be in the format an applicant may receive. the IND. A regulatory review period consists of specified in 21 CFR 10.30. 2. The date the application was Comments and petitions should be two periods of time: A testing phase and initially submitted with respect to the submitted to the Dockets Management an approval phase. For human drug human drug product under section Branch (address above) in three copies products, the testing phase begins when 505(b) of the Federal Food, Drug, and (except that individuals may submit the exemption to permit the clinical Cosmetic Act: March 29, 1995. FDA has single copies) and identified with the investigations of the drug becomes verified the applicant’s claim that the docket number found in brackets in the effective and runs until the approval new drug application (NDA) for heading of this document. Comments phase begins. The approval phase starts ARIMIDEX (NDA 20–541) was and petitions may be seen in the with the initial submission of an initially submitted on March 29, 1995. Dockets Management Branch between 9 application to market the human drug 3. The date the application was a.m. and 4 p.m., Monday through product and continues until FDA grants approved: December 27, 1995. FDA has Friday. permission to market the drug product. verified the applicant’s claim that NDA Although only a portion of a regulatory 20–541 was approved on December 27, Dated: August 16, 1996. review period may count toward the 1995. Stuart L. Nightingale, actual amount of extension that the This determination of the regulatory Associate Commissioner for Health Affairs. Commissioner of Patents and review period establishes the maximum [FR Doc. 96–21844 Filed 8–26–96; 8:45 am] Trademarks may award (for example, potential length of a patent extension. BILLING CODE 4160±01±F half the testing phase must be However, the U.S. Patent and subtracted as well as any time that may Trademark Office applies several have occurred before the patent was [Docket No. 96E±0153] statutory limitations in its calculations issued), FDA’s determination of the of the actual period for patent extension. Determination of Regulatory Review length of a regulatory review period for In its application for patent extension, Period for Purposes of Patent a human drug product will include all this applicant seeks 565 days of patent Extension; ARIMIDEX of the testing phase and approval phase term extension. as specified in 35 U.S.C. 156(g)(1)(B). Anyone with knowledge that any of AGENCY: Food and Drug Administration, FDA recently approved for marketing the dates as published is incorrect may, HHS. the human drug product ARIMIDEX on or before September 26, 1996, submit 44070 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices to the Dockets Management Branch and the Generic Animal Drug and Patent April 10, 1996, FDA advised the Patent (address above) written comments and Term Restoration Act (Pub. L. 100–670) and Trademark Office that this human ask for a redetermination. Furthermore, generally provide that a patent may be drug product had undergone a any interested person may petition FDA, extended for a period of up to 5 years regulatory review period and that the on or before February 24, 1997, for a so long as the patented item (human approval of CEDAX Capsules determination regarding whether the drug product, animal drug product, represented the first permitted applicant for extension acted with due medical device, food additive, or color commercial marketing or use of the diligence during the regulatory review additive) was subject to regulatory product. Shortly thereafter, the Patent period. To meet its burden, the petition review by FDA before the item was and Trademark Office requested that must contain sufficient facts to merit an marketed. Under these acts, a product’s FDA determine the product’s regulatory FDA investigation. (See H. Rept. 857, regulatory review period forms the basis review period. part 1, 98th Cong., 2d sess., pp. 41–42, for determining the amount of extension FDA has determined that the 1984.) Petitions should be in the format an applicant may receive. applicable regulatory review period for  specified in 21 CFR 10.30. A regulatory review period consists of CEDAX Capsules is 3,065 days. Of this Comments and petitions should be two periods of time: A testing phase and time, 1,603 days occurred during the submitted to the Dockets Management an approval phase. For human drug testing phase of the regulatory review Branch (address above) in three copies products, the testing phase begins when period, while 1,462 days occurred (except that individuals may submit the exemption to permit the clinical during the approval phase. These single copies) and identified with the investigations of the drug becomes periods of time were derived from the docket number found in brackets in the effective and runs until the approval following dates: heading of this document. Comments phase begins. The approval phase starts 1. The date an exemption under and petitions may be seen in the with the initial submission of an section 505(i) of the Federal Food, Drug, Dockets Management Branch between 9 application to market the human drug and Cosmetic Act (21 U.S.C. 355(i)) a.m. and 4 p.m., Monday through product and continues until FDA grants became effective: August 1, 1987. The Friday. permission to market the drug product. applicant claims August 2, 1987, as the Although only a portion of a regulatory date the investigational new drug Dated: August 16, 1996. review period may count toward the application (IND) became effective. Stuart L. Nightingale, actual amount of extension that the However, FDA records indicate that the Associate Commissioner for Health Affairs. Commissioner of Patents and IND effective date was August 1, 1987, [FR Doc. 96–21849 Filed 8–26–96; 8:45 am] Trademarks may award (for example, which was 30 days after FDA receipt on BILLING CODE 4160±01±F half the testing phase must be the IND. subtracted as well as any time that may 2. The date the application was have occurred before the patent was initially submitted with respect to the [Docket No. 96E±0100] issued), FDA’s determination of the human drug product under section 507 of the Federal Food, Drug, and Cosmetic Determination of Regulatory Review length of a regulatory review period for a human drug product will include all Act (21 U.S.C. 357): December 20, 1991. Period for Purposed of Patent of the testing phase and approval phase FDA has verified the applicant’s claim Extension; CEDAX Capsules as specified in 35 U.S.C. 156(g)(1)(B). that the new drug application (NDA) for  AGENCY: Food and Drug Administration, FDA recently approved for marketing CEDAX Capsules (NDA 50–685) was  HHS. the human drug product CEDAX initially submitted on December 20, Capsules (ceftibuten dihydrate). 1991. ACTION: Notice. CEDAX Capsules is indicated for the 3. The date the application was SUMMARY: The Food and Drug treatment of individuals with mild-to- approved: December 20, 1995. FDA has Administration (FDA) has determined moderate infections cause by verified the applicant’s claim that NDA the regulatory review period for susceptible strains of the designated 50–685 was approved on December 20, CEDAX Capsules and is publishing microorganisms in the specific 1995. this notice of that determination as conditions: Acute Bacterial This determination of the regulatory required by law. FDA has made the Exacerbations of Chronic Bronchitis due review period establishes the maximum determination because of the to Heamophilus influenzae (including potential length of a patent extension. submission of an application to the B-lactamase-producing strains), However, the U.S. Patent and Commissioner of Patents and Moraxella catarrhalis (including B- Trademark Office applies several Trademarks, Department of Commerce, lactamase producing strains) or statutory limitations in its calculations for the extension of a patent which Streptoccocus pneumoniae (penicillin- of the actual period for patent extension. claims that human drug product. susceptible strains only), Acute In its application for patent extension, Bacterial Otitis Media due to H. this applicant seeks 902 days of patent ADDRESSES: Written comments and influenzae (including B-lactamase term extension. petitions should be directed to the producing strains), M. catarrhalis Anyone with knowledge that any of Dockets Management Branch (HFA– (including B-lactamase producing the dates as published is incorrect may, 305), Food and Drug Administration, strains) or S. pyogenes, or Pharyngitis on or before October 28, 1996, submit to 12420 Parklawn Dr., rm. 1–23, and Tonsillitis due to S. pyogenes. the Dockets Management Branch Rockville, MD 20857. Subsequent to this approval, the Patent (address above) written comments and FOR FURTHER INFORMATION CONTACT: and Trademark Office received a patent ask for a redetermination. Furthermore, Brain J. Malkin, Office of Health Affairs term restoration application for any interested person may petition FDA, (HFY–20), Food and Drug CEDAX Capsules (U.S. Patent No. on or before February 24, 1997, for a Administration, 5600 Fishers Lane, 4,812,561) from Schering-Plough Corp. determination regarding whether the Rockville, MD 20857, 301–443–1382. and the Patent and Trademark Office applicant for extension acted with due SUPPLEMENTARY INFORMATION: The Drug requested FDA’s assistance in diligence during the regulatory review Price Competition and Patent Term determining this patent’s eligibility for period. To meet its burden, the petition Restoration Act of 1984 (Pub. L. 98–417) patent term restoration. In a latter dated must contain sufficient facts to merit an Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44071

FDA investigation. (See H. Rept. 857, Closed: August 27, 1996, 2:00 p.m.–5:00 Executive Office Building, Washington, part 1, 98th Cong., 2d sess., pp. 41–42, p.m. DC 20503. Contact: Katie Baas, Room 17–89, 1984.) Petitions should be in the format FOR FURTHER INFORMATION CONTACT: specified in 21 CFR 10.30. Parklawn Building, Telephone: (301)443– Jane Karadbil, Office of University Comments and petitions should be 0411 and FAX: (301)443–3437. The Special Emphasis Panel I meeting will Partnerships—telephone (202) 708– submitted to the Dockets Management include the review, discussion and 1537. This is not a toll-free number. Branch (address above) in three copies evaluation of individual grant applications. Copies of available documents (except that individuals may submit These discussions could reveal personal submitted to OMB may be obtained single copies) and identified with the information concerning individuals from Ms. Karadbil. docket number found in brackets in the associated with the applications. SUPPLEMENTARY INFORMATION: This heading of this document. Comments Accordingly, this meeting is concerned with notice informs the public that the and petitions may be seen in the matters exempt from mandatory disclosure in Department of Housing and Urban Dockets Management Branch between 9 Title 5 U.S.C. 552b(c)(6) and 5 U.S.C. App.2, Development (HUD) has submitted to a.m. and 4 p.m., Monday through § 10(d). Committee Name: SAMHSA Special OMB, for emergency processing, an Friday. Emphasis Panel I (SEP I). information collection package with Dated: August 15, 1996. Meeting Date: August 28, 1996—1:30 p.m.– respect to a proposed Notice of Funding Stuart L. Nightingale, 3:00 p.m. Availability for the Hispanic-Serving Associate Commissioner for Health Affairs. Place: Parklawn Building, Room 17–90, Institutions Work Study Program (HSI– 5600 Fishers Lane, Rockville, MD 20852. WSP). HUD seeks to implement this [FR Doc. 96–21851 Filed 8–26–96; 8:45 am] Closed: August 28, 1996—1:30 p.m.–3:00 initiative as soon as possible. BILLING CODE 4160±01±M p.m. The Hispanic-Serving Institutions Contact: Sandra E. Stephens, Room 17–89, Work Study Program provides grants to Parklawn Building, Telephone: (301) 443– certain institutions of higher education Substance Abuse and Mental Health 9915 and FAX: (301) 443–3437. (i.e., Hispanic-serving community Services Administration (SAMHSA) This notice is being published less than 15 days prior to the meetings due to the urgent colleges) to assist economically Notice of Meetings need to meet timing limitations imposed by disadvantaged and minority students the review and funding cycle. who participate as full-time students Pursuant to Public Law 92–463, Dated: Augut 21, 1996. participating in associate degree notice is hereby given of the following Jeri Lipov, programs in a community building teleconference meetings of SAMHSA’s academic discipline. Approximately 30 Committee Management Officer, SAMHSA. Special Emphasis Panel II and Special grants will be awarded with Fiscal Year Emphasis Panel I in August, 1996. [FR Doc. 96–21792 Filed 8–26–96; 8:45 am] 1996 funds. A summary of the meetings may be BILLING CODE 4162±20±P Submission of the information obtained from: Ms. Dee Herman, required under this information Committee Management Liaison, collection is mandatory in order to SAMHSA Office of Extramural DEPARTMENT OF HOUSING AND compete for and receive the benefits of Activities Review, 5600 Fishers Lane, URBAN DEVELOPMENT the program. All materials submitted are Room 17–89, Rockville, Maryland subject to the Freedom of Information 20857. Telephone: (301)443–4783. [Docket No. FR±4070±N±02 and FR±4105± Act and can be disclosed upon request. Substantive program information may N±027] An agency may not conduct or sponsor, be obtained from the individuals named and a person is not required to respond as Contacts for the meetings listed Office of Administration; Notice of to, a collection of information unless the below. Submission of Proposed Information collection displays a valid control The Special Emphasis Panel II Collection to OMB number. The OMB control number, meeting will include the review, AGENCY: Office of the Assistant when assigned, will be announced by a discussion and evaluation of individual Secretary for Policy Development and separate notice in the Federal Register. contract proposals. These discussions Research—HUD. The Department has submitted the could reveal personal information proposal for the collection of ACTION: concerning individuals associated with Notice. information to OMB for review as the proposals and confidential and SUMMARY: The proposed information required by the Paperwork Reduction financial information about an collection requirement described below Act (44 U.S.C. Chapter 35). The individual’s proposal. The discussion has been submitted to the Office of department has requested emergency may also reveal information about Management and Budget (OMB) for clearance of the collection of procurement activities exempt from emergency review and approval, as information, as described below, with disclosure by statute and trade secrets required by the Paperwork Reduction approval being sought by August 28, and commercial or financial information Act. The Department is soliciting public 1996: obtained from a person and privileged comments on the subject proposal. (1) Title of the information collection and confidential. Accordingly, the proposal: Application Kit—Hispanic- DATES: The due date for comments is: meeting is concerned with matters Serving Institutions Work Study September 3, 1996. exempt from mandatory disclosure in Program. Title 5 U.S.C. 552b(c) (3), (4), and (6) ADDRESSES: Interested persons are (2) Summary of the collection of and 5 U.S.C. App. 2, § 10(d). invited to submit comments regarding information: Each application for HSI– this proposal. Comments must be WSP would be required to submit Committee Name: SAMHSA Special received within seven (7) days from the Emphasis Panel II. current information, as listed below as: Panel: Research Utilization & Integration date of this Notice. Comments should 1. Transmittal letter signed by the into Substance Abuse Treatment. refer to the proposal by name and Chief Executive Officer of the Meeting Date: August 27, 1996. should be sent to: Joseph F. Lackey, Jr., institution. Place: Parklawn Building, Room 17–74, HUD Desk Officer, Office of 2. OMB Standard Forms 424 5600 Fishers Lane, Rockville, MD 20852. Management and Budget, New (Application for Federal Assistance), 44072 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Form 424B (Non-Construction Total estimated burden hours: 4,130. The Notice lists the following Assurances) and Budget. Authority: Section 3507 of the Paperwork information: (1) The title of the 3. Eligibility of degree program(s). Reduction Act of 1995, 44 U.S.C. Chapter 35, information collection proposal; (2) the 4. One- to two-page executive as amended. office of the agency to collect the summary of the proposed project. Dated: August 20, 1996. information; (3) the OMB approval 5. Proposal narrative statement number, if applicable; (4) the addressing the selection factors for David S. Christy, Director of IRM Policy and Management description of the need for the award. information and its proposed use; (5) 6. Management/workplan. Division. [FR Doc. 96–21763 Filed 8–26–96; 8:45 am] the agency form number, if applicable; 7. Resumes of key faculty and staff. (6) what members of the public will be 8. Budget for students. BILLING CODE 4210±01±M 9. Tuition and fee schedule. affected by the proposal; (7) how 10. Assurance regarding application’s frequently information submissions will financial management system. [Docket No. FR±4086±N±18] be required; (8) an estimate of the total 11. Drug-Free Workplace number of hours needed to prepare the Office of Administration; Submission Certification. information submission including 12. Certification and Disclosure for OMB Review: Comment Request number of respondents, frequency of Regarding Payments to Influence AGENCY: Office of Administration, HUD. response, and hours of response; (9) Certain Federal Transactions. whether the proposal is new, an ACTION: Notice. (3) Description of the need for the extension, reinstatement, or revision of information and its proposed use: SUMMARY: The proposed information an information collection requirement; To appropriately determine which collection requirement described below and (10) the names and telephone Institutions of Higher Education should has been submitted to the Office of numbers of an agency official familiar be awarded HSI–WSP grants, certain Management and Budget (OMB) for with the proposal and of the OMB Desk information is necessary about the review, as required by the Paperwork Officer for the Department. applicant’s plan for educating and Reduction Act. The Department is Authority: Section 3507 of the Paperwork providing work placement experiences soliciting public comments on the Reduction Act of 1995, 44 U.S.C. 35, as for the students, the budget, the subject proposal. amended. management of the project. Dated: July 18, 1996. (4) Description of the likely DATES: Comments due date: September David S. Cristy, respondents, including the estimated 26, 1996. number of likely respondents, and ADDRESSES: Interested persons are Acting Director, Information Resources proposed frequency of response to the invited to submit comments regarding Management Policy and Management Division. collection of information: this proposal. Comments must be Respondents will be public and recevied within thirty (30) days from the Notice of Submission of Proposed private institutions of higher education. date of this Notice. Comments should Information Collection to OMB Grantees will also be expected to refer to the proposal by name and/or Title of Proposal: Construction prepare and submit annual monitoring OMB approval number should be sent Complaint/Request for Financial reports. to: Joseph F. Lackey, Jr., OMB Desk Assistance. The estimated number of respondents Officer, Office of Management and submitting applications is 89. The Budget, Room 10235, New Executive Office: Housing. proposed frequency of the response to Office Building, Washington, DC 20503. OMB Approval Number: 2502–0047. the collection of information is one- FOR FURTHER INFORMATION CONTACT: Description of the Need for the time. The application need only be Kay F. Weaver, Reports Management Information and Its Proposed Use: Form submitted once. The estimated number Officer, Department of Housing and HUD–92556 will provide orderly of respondents to the monitoring Urban Development, 451 7th Street, processing of homeowners complaint requirements is 30. Southwest, Washington, DC 20410, items that the builder is responsible to (5) Estimate of the total reporting and telephone (202) 708–0050. This is not a correct. The form will also determine recordkeeping burden that will result toll-free number. Copies of the proposed eligibility for financial assistance for the from the collection of information: forms and other available documents homeowners and will identify builders Reporting Burden submitted to OMB may be obtained who are not conforming to applicable standards. Number of respondents: 89 for from Ms. Weaver. applicants; 30 for monitoring SUPPLEMENTARY INFORMATION: The Form Number: HUD–92556. requirements. Department has submitted the proposal Respondents: Individuals or Total burden hours: 40 hours per for the collection of information, as Households. respondent for applications); 11 hours a described below, to OMB for review, as Frequency of Submission: On year per respondent for monitoring required by the Paperwork Reduction Occasion. requirements. Act (44 U.S.C. Chapter 35). Reporting Burden:

Number of × Frequency of × Hours per Burden respondents response response = hours

HUD±92556 ...... 5,000 1 .5 2,500

Total Estimated Burden Hours: 2,500. Contact: David Dwyer, HUD, (202) Dated: July 18, 1996. Status: Reinstatement without 708–2121, Joseph F. Lackey, Jr., OMB, [FR Doc. 96–21765 Filed 8–26–96; 8:45 am] changes. (202) 395–7316. BILLING CODE 4210±01±M Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44073

Office of Administration; Submission toll-free number. Copies of the proposed Authority: Section 3507 of the Paperwork for OMB Review: Comment Request forms and other available documents Reduction Act of 1995, 44 U.S.C. 35, as submitted to OMB may be obtained amended. [Docket No. FR±4086±N±19] from Ms. Weaver. Dated: July 18, 1996. AGENCY: Office of Administration, HUD. SUPPLEMENTARY INFORMATION: The David S. Cristy, ACTION: Notice. Department has submitted the proposal Acting Director, Information Resources for the collection of information, as Management Policy and Management SUMMARY: The proposed information described below, to OMB for review, as Division. collection requirement described below required by the Paperwork Reduction has been submitted to the Office of Notice of Submission of Proposed Act (44 U.S.C. Chapter 35). Information Collection to OMB Management and Budget (OMB) for The Notice lists the following review, as required by the Paperwork information: (1) The title of the Title of Proposal: Section 8 Housing Reduction Act. The Department is information collection proposal; (2) the Assistance Program (HAP) Contract, Part soliciting public comments on the office of the agency to collect the II. subject proposal. information; (3) the OMB approval Office: Housing. DATES: Comments due date: September number, if applicable; (4) the 26, 1996. description of the need for the OMB Approval Number: 2502–0409. ADDRESSES: Interested persons are information and its proposed use; (5) Description of the Need for the invited to submit comments regarding the agency form number, if applicable; Information and Its Proposed Use: The this proposal. Comments must be (6) what members of the public will be HAP Contract, Part II is the legal received within thirty (30) days from the affected by the proposal; (7) how document used to obligate Federal date of this Notice. Comments should frequently information submissions will funds and to commit the owner to HUD refer to the proposal by name and/or be required; (8) an estimate of the total regulations and necessary procedural OMB approval number should be sent number of hours needed to prepare the requirements governing the purpose and to: Joseph F. Lackey, Jr., OMB Desk information submission including use of these funds. Officer, Office of Management and number of respondents, frequency of Form Number: HUD–52522–D. Budget, Room 10235, New Executive response, and hours of response; (9) Office Building, Washington, DC 20503. Respondents: Business or Other For- whether the proposal is new, an Profit, Individuals or Households, State, FOR FURTHER INFORMATION CONTACT: Kay extension, reinstatement, or revision of Local, or Tribal Government, and Not- F. Weaver, Reports Management Officer, an information collection requirement; For-Profit Institutions. Department of Housing and Urban and (10) the names and telephone Development, 451 7th Street, numbers of an agency official familiar Frequency of Submission: On Southwest, Washington, DC 20410, with the proposal and of the OMB Desk Occasion. telephone (202) 708–0050. This is not a Officer for the Department. Reporting Burden:

Number of re- × Frequency of × Hours per re- spondents response sponse = Burden hours

HUD±52522±D ...... 729 1 3.56 2,597

Total Estimated Burden Hours: 2,597. ADDRESSES: Interested persons are The Notice lists the following Status: Reinstatement with changes. invited to submit comments regarding information: (1) the title of the Contact: Barbara Hunter, HUD, (202) this proposal. Comments must be information collection proposal; (2) the 708–3944, Joseph F. Lackey, Jr., OMB, received within thirty (30) days from the office of the agency to collect the (202) 395–7316. date of this Notice. Comments should information; (3) the OMB approval Dated: July 18, 1996. refer to the proposal by name and/or number, if applicable; (4) the [FR Doc. 96–21766 Filed 8–26–96; 8:45 am] OMB approval number should be sent description of the need for the to: Joseph F. Lackey, Jr., OMB Desk BILLING CODE 4210±01±M information and its proposed use; (5) Officer, Office of Management and the agency form number, if applicable; Budget, Room 10235, New Executive (6) what members of the public will be Office of Administration; Submission Office Building, Washington, DC 20503. affected by the proposal; (7) how for OMB Review: Comment Request FOR FURTHER INFORMATION CONTACT: frequently information submissions will Kay F. Weaver, Reports Management be required; (8) an estimate of the total [Docket No. FR±4086±N±20] Officer, Department of Housing and number of hours needed to prepare the AGENCY: Office of Administration, HUD. Urban Development, 451 7th Street, information submission including number of respondents, frequency of ACTION: Notice. Southwest, Washington, DC 20410, telephone (202) 708–0050. This is not a response, and hours of response; (9) SUMMARY: The proposed information toll-free number. Copies of the proposed whether the proposal is new, an collection requirement described below forms and other available documents extension, reinstatement, or revision of has been submitted to the Office of submitted to OMB may be obtained an information collection requirement; Management and Budget (OMB) for from Ms. Weaver. and (10) the names and telephone review, as required by the Paperwork SUPPLEMENTARY INFORMATION: The numbers of an agency official familiar Reduction Act. The Department is Department has submitted the proposal with the proposal and of the OMB Desk soliciting public comments on the for the collection of information, as Officer for the Department. subject proposal. described below, to OMB for review, as Authority: Section 3507 of the Paperwork DATES: Comments due date: September required by the Paperwork Reduction Reduction Act of 1995, 44 U.S.C. 35, as 26, 1996. Act (44 U.S.C. Chapter 35). amended. 44074 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Dated: July 23, 1996. Office: Public and Indian Housing. year follow-up survey. The survey will David S. Cristy, OMB Approval Number: None. be conducted door-to-door of Acting Director, Information Resources Description of the Need for the approximately 1,175 residents. Information and its Proposed Use: The Management Policy and Management Form Number: None. Division. purpose of this survey is to assess the Chicago Housing Authority (CHA) Respondents: Individuals or Notice of Submission of Proposed residents’ perception of living Households. Information Collection to OMB conditions in the developments and Frequency of Submission: Annually. Title of Proposal: Chicago Housing their satisfaction with CHA’s services. Authority Resident Satisfaction and Data collection of the survey will Reporting Burden: Management Needs Survey. consist of an initial survey and a one-

Number of Frequency of Hours per re- respondets x response x sponse = Burden hours

Survey ...... 1,175 2 .25 588

Total Estimated Burden Hours: 588. received by the deadline date and hour. DEPARTMENT OF THE INTERIOR Status: New Applicants should take this requirement Contact: Robert Dalzell, HUD, (202) into account and make early submission Bureau of Land Management 708–4233, Joseph F. Lackey, Jr., OMB, of their materials to avoid any risk of [NV±020±1220±00; Case File N2±19±96] (202) 395–7316. losing eligibility brought about by Dated: July 23, 1996. unanticipated delays or other delivery Nevada; Temporary Closing of Certain [FR Doc. 96–21767 Filed 8–26–96; 8:45 am] related problems. Public Lands in the Winnemucca BILLING CODE 4210±01±M District for the Management of the Fall FOR FURTHER INFORMATION CONTACT: 1996 Land Speed Record Attempt Ophelia H. Wilson or Stella Hall, Office Runs [Docket No. FR±4011±N±03] of the Deputy Assistant Secretary for Grant Programs, Office of Community AGENCY: Bureau of Land Management Office of the Assistant Secretary for Planning and Development, U.S. (Interior). Community Planning and Department of Housing and Urban ACTION: Temporary closure of certain Development; NOFA for Technical Development, 451 Seventh Street, SW., Public Lands in Pershing County during Assistance for the John Heinz high speed runs conducted by certain Neighborhood Development Program, Room 7220, Washington, DC 20410; organizations in September, October Notice of Funding Availability for FY telephone (202) 708–2186. (This is not and November, 1996. Access and 1996; Announcement of OMB Approval a toll-free number.) For hearing- and movement would be temporarily halted Number speech-impaired persons, this number may be accessed via TTY (text while the high speed vehicles make AGENCY: Office of the Assistant telephone) by calling the Federal their runs with speeds in excess of 100 Secretary for Community Planning and Information Relay Service at 1–800– mph. Development, HUD. 877–8339. However, written inquiries SUPPLEMENTARY INFORMATION: ACTION: Notice of funding availability Certain are preferred and may be mailed or lands in the Winnemucca District, for FY 1996; Announcement of OMB faxed to: (202) 708–3363. Approval Number. Pershing County, Nevada, would be SUPPLEMENTARY INFORMATION: temporarily closed to public access and SUMMARY: On August 12, 1996 (61 FR Accordingly, the OMB Approval movement from one-half hour before to 41936), the Department published in the Number for the NOFA for Technical immediately after high speed runs made Federal Register, a Notice of Funding Assistance for the John Heinz on the playa of the Black Rock Desert. Availability (NOFA) that announced the Neighborhood Development Program; These runs would be made in an availability of $132,978 for technical Funding Availability for Fiscal Year attempt to break the current land speed assistance funding under the John Heinz record. Since any movement during 1996, published in the Federal Register Neighborhood Development Program. In such high speeds have a tendency to on August 12, 1996 at 61 FR 41936, is the SUPPLEMENTARY INFORMATION section, attract the attention of the driver of the under the ‘‘Paperwork Reduction Act 2506–0158. The approval number vehicle, for safety considerations all Statement’’, the NOFA stated that expires on November 11, 1996. movement needs to be halted during ‘‘* * *, the OMB control number will Dated: August 20, 1996. these high speed runs. That individual’s be published by a separate notice in the Camille E. Acevedo, attention needs to be focused on the Federal Register.’’ The purpose of the Assistant General Counsel for Regulations. course and the vehicle. The exact time notice is to announce the OMB approval of the closures would depend entirely [FR Doc. 96–21764 Filed 8–26–96; 8:45 am] number to the NOFA. on when the runs are made. Weather or DATES: Completed applications must be BILLING CODE 4210±29±M mechanical conditions may prevent submitted no later than 4:30 p.m. them from running every day of their Eastern Time on September 11, 1996. permit. HUD reserves the right to extend the The Winnemucca Assistant District deadline date through notification in the Manager, Nonrenewable Resources, is Federal Register. In the interest of the authorized officer for this event, fairness to all competing applicants, an permit number N2–19–96. These application will be treated as ineligible temporary closures and restrictions are for consideration if it is not physically made pursuant to 43 CFR 8364. The Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44075 public lands to be closed are those on The preparation of these diagrams also asked that the program be the playa of the Black Rock Desert. was requested by the USDA Forest preserved and allowed to continue The following public lands Service, Geometronics Service Center, to within the seashore. Currently, little or administered by the BLM restricted or support its mapping program. no data exist on pheasant survival, closed are the lands of the playa of the All inquiries concerning the survey of population, movement patterns, harvest Black Rock Desert within the following the above described land must be sent numbers, and impacts the release may townships: T. 33., R. 24 E.; T. 331⁄2 N., to the Chief, Cadastral Survey, Idaho have on the native Seashore ecosystems. R. 24 E.; T. 34 N., R. 24 E.; T. 33 N., R. State Office, Bureau of Land Based on this lack of data, the long 25 E.; T. 34 N., R. 25 E.; T. 35 N., R. 25 Management, 3380 Americana Terrace, history of pheasant stocking in the E.; T. 351⁄2 N., T. 25 E.; T. 34 N., R. 26 Boise, Idaho, 83706–2500. Seashore, and policy questions that E.; T. 35 N., R. 26 E.; T. 351⁄2 N., R. 26 Dated: August 14, 1996. require data on which to base informed E. Duane E. Olsen, management decisions, the EA analyzes The lands involved are located in the Chief Cadastral Surveyor for Idaho. impacts and provides for public review Mount Diablo Meridian and are located of the two alternatives to initiate an [FR Doc. 96–21771 Filed 8–26–96; 8:45 am] northeast and east of Gerlach, Nevada. appropriate research and management They are within Pershing County. All BILLING CODE 4310±GG±M program. graded roads on the edge of the desert Copies of the document are available but not on the actual playa are not National Park Service at the address listed above or by calling affected by this closure order. A map Mike Reynolds at (508) 349–3785 x216 showing the route of the course is Cape Cod National Seashore, at the Seashore Headquarters for copies, available from the following BLM office: Massachusetts; Environmental questions, or other inquiries. Winnemucca District Office, 5100 East Assessment: Interim Pheasant Dated: August 20, 1996. Winnemucca Blvd., Winnemucca, Management Program Nevada, 89445, (702) 623–1500. Maria Burks, Any person who fails to comply with AGENCY: National Park Service, Interior. Superiontendent, Cape Cod National this closure order issued under 43 CFR ACTION: Notice of Availability and Seashore. Part 8364 may be subject to the Public Comment Period for the [FR Doc. 96–21747 Filed 8–26–96; 8:45 am] penalties provided for in 43 CFR 8360.7. Environmental Assessment, Interim BILLING CODE 4310±70±M FOR FURTHER INFORMATION, CONTACT: Pheasant Management. Lynn Clemons, 5100 East Winnemucca SUMMARY: In accordance with the Carlsbad Caverns National Park; Final Blvd., Winnemucca, Nevada, 89445 National Environmental Policy Act of General Management Plan/ (702) 623–1500. 1969 (NEPA 42 USC 4321 et. seq.), the Environmental Impact Statement Dated: August 15, 1996. National Park Service, Cape Cod Ron Wenker National Seashore, announces that an AGENCY: National Park Service, Interior. Environmental Assessment (EA) for the District Manager, Winnemucca ACTION: Notice of availability of the Interim Pheasant Management Program [FR Doc. 96–21842 Filed 8–25–96; 8:45 am] Final General Management Plan/ is available for public review and BILLING CODE 4310±HC±P Environmental Impact Statement for comment. The public comment period is from Carlsbad Caverns National Park, Eddy August 29, 1996 to September 29, 1996. County, New Mexico. DEPARTMENT OF THE INTERIOR Interested persons may review the document and make written comments SUMMARY: Pursuant to Section 102(2) of Bureau of Land Management to the Superintendent, Cape Cod the National Environmental Policy Act of 1969 the National Park Service [UT±940±1910±00±4677] National Seashore, Headquarters Building, 99 Marconi Site Road, announces the availability of the Final Wellfleet, Massachusetts 02667. Written General Management Plan/ Idaho: Filing of Protraction Diagrams Environmental Impact Statement (GMP/ in Idaho comments and visits or phone inquiries by interested parties will be accepted. EIS) for Carlsbad Caverns National Park. The protraction diagrams of the The EA analyzes the impacts of two The Draft General Management Plan/ following described unsurveyed alternatives for an interim proposal for Environmental Impact Statement was on townships, all in Boise Meridian, Idaho, the research and management of the public review from November 15, 1995 were officially filed in the Idaho State Ring-Necked Pheasant (Phasianus to March 25, 1996. A public open house Office, Bureau of Land Management, colchicus) hunting and stocking was held on February 15, 1996, to solicit Boise, Idaho, effective 9:00 a.m. August program at Cape Cod National Seashore. public comment on the GMP/EIS. 14, 1996. The two alternatives include a no action Twenty-nine comment letters were T. 19 N., R. 3 W.; T. 23 N., R. 2 W.; option which continues current received from agencies, organizations, T. 24 N., R. 2 W.; T. 25 N., R. 4 E.; T. management, and a two year research and individuals. The National Park 26 N., R. 4 E.; T. 25 N., R. 5 E.; T. 26 and evaluation alternative to assess Service’s responses to comments on the N., R. 5 E.; T. 25 N., R. 6 E.; T. 26 N., impacts to native resources and provide draft plan are included in the Final R. 6 E.; T. 27 N., R. 4 E.; T. 28 N., R. an objective evaluation of the stocking GMP/EIS. 4 E.; T. 27 N., R. 5 E.; T. 28 N., R. 5 E.; and hunting program. The purpose of the general T. 27 N., R. 6 E.; T. 28 N., R. 6 E.; T. Numerous groups interested in the management plan is to set forth the 29 N., R. 5 E.; T. 30 N., R. 5 E.; T. 29 issue of pheasant management have basic management philosophy and to N., R. 6 E.; T. 30 N., R. 6 E.; T. 29 N., increasingly questioned or requested provide the strategies for addressing R. 7 E.; T. 30 N., R. 7 E.; T. 23 N., R. review or changes as to how the State issues and achieving management 7 E.; T. 24 N., R. 7 E.; T. 23 N., R. 8 E.; of Massachusetts and the National Park objectives over the next 10 to 15 years. T. 24 N., R. 8 E.; T. 23 N., R. 9 E.; T. Service manage the pheasant hunting The Final GMP/EIS describes and 24 N., R. 9 E. program. Many hunting interests have evaluates three alternatives for the 44076 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices management of Carlsbad Caverns Highway, Carlsbad, New Mexico 88220. continue to be at the Pecos Pueblo/ National Park. Telephone: 505–785–2232, extension mission ruins complex, and no new Alternative 1 (No Action): Alternative 321. visitor facilities would be developed. 1 describes the continuation of existing Dated: August 10, 1996 Under Pecos Unit Alternative B (the management direction at the park as Joseph J. Sovick, proposed action) two visitor staging described in current plans. The park areas would be developed—the would provide for visitor use and Acting Superintendent, Southwest System Support Office. Fogelson visitor center area and respond to resource management issues [FR Doc. 96–21803 Filed 8–26–96; 8:45 am] Kozlowski’s Stage Stop. New visitor and concerns as funding allowed, but no facilities would include trails and BILLING CODE 4310±70±M major change in management direction trailheads and interpretive exhibits. would be initiated. Under Pecos Unit Alternative C three Alternative 2: Alternative 2 is the Pecos National Historical Park, Final visitor staging areas would be proposed action and National Park General Management Plan/ developed—the Fogelson visitor center, Service’s preferred alternative. It would Development Concept Plan/ Kozlowski’s Stage Stop, and the base resource management and visitor Environmental Impact Statement Gateway overlook. Staging areas and use decisions on expanded scientific associated facilities would have easy research, inventory, and monitoring. AGENCY: National Park Service, Interior. vehicle access. Under Pecos Unit Information would be gathered about ACTION: Notice of availability of the Alternative D visitors would enter the how human activities and facilities are Final General Management Plan/ park from the south and a new visitor affecting park resources, especially cave Development Concept Plan/ center would be developed at the resources. A development concept plan Environmental Impact Statement for Gateway overlook area. Other visitor would be undertaken once these studies Pecos National Historical Park, Santa Fe facilities would continue to be provided had been completed to determine how and San Miguel County, New Mexico. at Kozlowski’s Stage Stop and the to reduce or eliminate threats to Fogelson visitor center. Under Glorieta subsurface resources, with measures SUMMARY: Pursuant to Section 102(2)(C) unit alternative 1 (no-action) no new possibly ranging from infrastructure of the National Environmental Policy facilities would be provided. Glorieta improvements to the removal of certain Act of 1969, the National Park Service unit alternative 2 (proposed action) facilities. Opportunities for visitors to (NPS) announces the availability of the would incorporate a staffed visitor enjoy and learn about significant park Final General Management Plan/ resources would be increased, special Development Concept Plan/ contact facility and interpretive trails off-trail tours would be continued, the Environmental Impact Statement (GMP/ and exhibits at Pigeon’s Ranch and an feasibility of opening Ogle Cave to tours DCP/EIS) for Pecos National Historical exterior interpretive exhibit at a pulloff would be studied, and additional Park, New Mexico. overlooking Can˜ oncito. Glorieta unit alternative 3 would incorporate the surface trails would be provided. The SUPPLEMENTARY INFORMATION: On June same facilities as alternative 2; however, visitor center would be remodeled to be 27, 1990, Congress repealed the act to the staffed contact station would be at more efficient, and a ranger residence establish Pecos National Monument and a different location. The major impact would be provided near Slaughter authorized the establishment of Pecos topics assessed for the proposals and the Canyon. National Historical Park to include the Alternative 3: Alternative 3 proposes former Pecos National Monument and alternatives are cultural and natural the removal of many surface functions 5,500 acres of the Forked Lightning resources and the socioeconomic and facilities above the cavern within Ranch. On November 8, 1990, Congress environment, including the local five years to ensure the protection of expanded Pecos National Historical economy and NPS operations. subsurface resources. To replace these Park to include the 682 acre Glorieta This Final GMP/DCP/EIS was functions, a new visitor orientation/ unit. The purpose of this Final GMP/ prepared in order to evaluate a range of transit center and a park operations DCP/EIS is to set forth the basic alternatives and an assessment of center would be developed at the base management philosophy of the park and impacts of these alternatives. This of the Guadalupe escarpment. Visitors the overall approaches to resource document was on public review for 60 would use a shuttle system for access to management, visitor use, and facility days from September 15 through the existing visitor center, which would development that would be November 17, 1995. Responses to public be modified to focus on interpretation implemented over the next 10–15 years. comment are addresses in this Final and essential services. Visitor use of the This Final GMP/DCP/EIS describes GMP/DCP/EIS. cavern would be monitored and and analyzes alternatives for the Pecos restricted to minimize further damage to DATES: This Final GMP/DCP/EIS will be and Glorieta units of Pecos National available for public review until cave resources, and no special off-trail Historical Park. Proposed action and no- tours would be provided. September 30, 1996. This Final GMP/ action alternatives have been developed DCP/EIS can be obtained by contacting The environmental impact analysis for each unit. In addition to the indicates that alternatives 2 and 3 Pecos National Historical Park at 505– proposed action and no-action 757–6414. would better protect the park’s alternatives, two additional action significant resources than would alternatives have been developed for the ADDRESSES: Public reading copies of the alternative 1. Pecos unit and one additional action Final GMP/DCP/EIS will be available for DATES: The 30-day no action period for alternative has been identified for the review at the following locations: Office review of the Final GMP/EIS will end Glorieta unit. These alternatives propose of Public Affairs, National Park Service, on September 27, 1996. A record of future management and use options for 1849 C Street, NW, Washington, D.C. decision will follow the no action the newly established Pecos National 20240; Department of Interior Natural period. Historical Park. Under Pecos Unit Resource Library, 1849 C Street, NW, FOR FURTHER INFORMATION CONTACT: Alternative A (no action) present use Washington, D.C. 20240; Pecos National Superintendent, Carlsbad Caverns and management would continue. The Historical Park, Highway 63, Pecos, National Park, 3225 National parks primary interpretive focus would New Mexico; and local public libraries. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44077

Dated: August 19, 1996. OREGON construct, manage, operate and maintain Joseph J. Sovick, Multnomah County areas for recreational development. Acting Superintendent, Southwest System American Can Company Complex, 2127 26th Support Office. SUMMARY: The Bureau of Reclamation is Ave., NW, Portland, 96000996. [FR Doc. 96–21802 Filed 8–26–96; 8:45 am] soliciting proposals from qualified Auto Rest Garage, 925—935 10th Ave., SW, parties to lease approximately 1,000 BILLING CODE 4310±70±M Portland, 96000997. Broadway Building, 715 Morrison St., SW, acres of land for recreational Portland, 96001000. development. National Register of Historic Places; Corbett Brothers Auto Storage Garage, 630 ADDRESSES: Interested parties should Notification of Pending Nominations Pine, SW, Portland, 96000999. request copies of the Request for Journal Building, 806 Broadway, SW, Proposal from Ms. Neva Tandy, Natural Nominations for the following Portland, 96000995. Resource Specialist, Natural Resources properties being considered for listing Kress Building, 638 5th Ave., SW, Portland, Group, Bureau of Reclamation, Lower in the National Register were received 96000994. Colorado Region, P.O. Box 61470, by the National Park Service before Liebes, H. and Company, Building, 625 Boulder City, Nevada 89006–1470, August 21, 1996. Pursuant to section Broadway, SW, Portland, 96000993. Telephone: (702) 293–8521 or FAX Lumbermen’s Building, 333 5th St., SW, 60.13 of 36 CFR Part 60 written (702) 293–8146. comments concerning the significance Portland, 96000992. FOR FURTHER INFORMATION CONTACT: of these properties under the National Mohawk Building, 708—724 3rd Ave., SW, Portland, 96001002. Neva Tandy at (702) 293–8521. Register criteria for evaluation may be Morgan Building, 720 Washington St., SW, forwarded to the National Register, SUPPLEMENTARY INFORMATION: Portland, 96001003. Reclamation’s Lower Colorado Regional National Park Service, P.O. Box 37127, Northwestern National Bank Building, 621 Washington, D.C. 20013–7127. Written Morrison St., SW, Portland, 96001001. office is supervised by the Regional comments should be submitted by Public Service Building and Garage, 920 6th Director, Mr. Robert W. Johnson, and September 11, 1996. Ave., SW, Portland, 96000998. encompasses projects administered by the Grand Canyon, Phoenix, Yuma, and Carol D. Shull, TENNESSEE Southern California Area offices. Keeper of the National Register. Hamilton County Hoover, Davis and Parker Dams and ALABAMA Chattanooga National Cemetery (Civil War appurtenant works are administered by Limestone County Era National Cemeteries) 1200 Bailey the Lower Colorado Dams Facilities Eddins, Joel, House, Rt. 2, approximately .5 Ave., Chattanooga, 96001013. office, located at Hoover Dam. mi. NW of jct. of AL 53 and Elkwood TEXAS A Concession Agreement will be Section Rd., Ardmore, 96001004. negotiated with the Concessionaire Dallas County ARKANSAS selected under this RFP. The Regional Busch—Kirby Building (Boundary Increase), Director is the authorizing official in Franklin County 1501—1509 Main St., Dallas, 96001015 this action. Prior to execution of an Altus Well Shed—Gazebo, Jct. of N. Franklin Fort Bend County agreement by the Regional Director, the and E. Main Sts., NW corner, Altus, agreement will be reviewed for legal 96001005. Green, Henry G. and Annie B., House, .5 mi SE of jct. of old US 59 and TX 118, sufficiency and endorsement, then INDIANA Kendleton, 96001016. signed by the prospective new Allen County Jeff Davis County Concessionaire. New York Chicago and St. Louis Railroad Trueheart, Henry M. and Annie V., House, Dated: August 16, 1996. Steam Locomotive No. 765, 15808 Jct. of 7th St. and Court Ave., Fort Davis, William E. Rinne, Edgerton Rd., New Haven, 96001010. 96001014. Director, Resource Management and Hamilton County WISCONSIN Technical Services. Roberts Chapel, 3102 E. 276th St., Atlanta [FR Doc. 96–21748 Filed 8–26–96; 8:45 am] Lincoln County vicinity, 96001009. BILLING CODE 4310±94±P First Street Bridge, 1st St. spanning the Marion County Prairie River, Merrill, 96001017. Nurses’ Sunken Garden and Convalescent Oconto County Park, Bounded by Michigan St., Rotary AGENCY FOR INTERNATIONAL Bldg., West Dr., and Union Bldg., Smyth Road Bridge, Smyth Rd. over North DEVELOPMENT Indianapolis, 96001008. Branch of the Oconto River, Lakewood, St. Philip Neri Parish Historic District, 530 96001018. Notice of Public Information Collection Being Reviewed by the U.S. Agency for and 550 N. Rural St. and 545 N. Eastern [FR Doc. 96–21801 Filed 8–26–96; 8:45 am] Ave., Indianapolis, 96001007. International Development, Proposed BILLING CODE 4310±70±P Porter County Collections; Comments Requested Horner, Imre and Maria, House, 2 Merrivale SUMMARY: U.S. Agency for International Ave., Beverly Shores, 96001006. Bureau of Reclamation Development (USAID), is making efforts KANSAS to reduce the paperwork burden. AID Request For Proposal to Lease Lands invites the general public and other Marshall County Near Laughlin, Clark County, Nevada Federal agencies to take this to Construct, Manage, Operate and St. Bridget Church, RR 2, 6.5 mi. N of Axtell, opportunity to comment on the St. Bridget Township, Axtell vicinity, Maintain Recreation Facilities 96001011. following proposed and/or continuing information collections, as required by AGENCY: Bureau of Reclamation, MISSOURI the Paperwork Reduction Act for 1995. Interior. Boone County Comments are requested concerning: (a) Elkins, Samuel H. and Isabel Smith, House, ACTION: Notice of solicitation for whether the proposed or continuing 315 N. 10th St., Columbia, 96001012. proposals from qualified parties to lease, collections of information are necessary 44078 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices for the proper performance of the Dated: August 9, 1996. have occurred at Buster Brown’s functions of the agency, including Genease E. Pettigrew, production facility in Sylva, North whether the information shall have Chief, Information Support Services Division, Carolina. The workers are engaged in practical utility; (b) the accuracy of the Office of Administrative Services, Bureau of employment related to the production of burden estimates; (c) ways to enhance Management. children’s apparel. the quality, utility, and clarity of the [FR Doc. 96–21770 Filed 8–26–96; 8:45 am] The intent of the Department’s information collected; and (d) ways to BILLING CODE 6116±01±M certification is to include all workers of minimize the burden of the collection of Buster Brown Apparel adversely information on the respondents, affected by imports. Accordingly, the including the use of automated DEPARTMENT OF LABOR Department is amending the collection techniques or other forms of certification to include all workers at information technology. Office of the Secretary the subject firms’ location in Sylva, North Carolina. DATES: Send any comments on these Submission for OMB Review The amended notice applicable to information collections on or before TA–W–32,260 is hereby issued as August 30, 1996. State Unemployment Insurance (UI) follows: Wage Records Quality Project; ADDRESSES: Contact Mary Ann Ball, Correction ‘‘All workers of Buster Brown Apparel, Bureau for Management, Office of Inc., Garment Finishing Department Administrative Services, Information AGENCY: Bureau of Labor Statistics, Chattanooga, Tennessee (TA–32,260) and Labor. Sylva, North Carolina (TA–W–32,260B) who Support Services Division, U.S. Agency become totally or partially separated from for International Development, Room ACTION: Correction. employment on or after April 15, 1995 are B930, N.S., Washington, D.C., (202) eligible to apply for adjustment assistance SUMMARY: 736–4743 or via e-mail This notice corrects an error under Section 223 of the Trade Act of 1974.’’ in the Office of the Secretary’s [email protected] Signed at Washington, D.C. this 13th day document which concerned Bureau of of August 1996. SUPPLEMENTARY INFORMATION: Labor Statistics information collection Russell T. Kile, requests. In notice document 96–19658 Title: USAID Acquisition Regulations beginning on page 40452 in the issue of Acting Program Manager, Policy and (AIDAR)—Information Collection Reemployment Services, Office of Trade Friday, August 2, 1996, make the Adjustment Assistance. Elements. following correction: [FR Doc. 96–21834 Filed 8–26–96; 8:45 am] Form No.: USAID 1420–17, Contractor On page 40452 in the second column, Employee Biographical Data Sheet. the frequency was previously listed as BILLING CODE 4510±30±M OMB No.: 0412–0520. quarterly. This should be corrected to read one time. [TA±W±32,429] Type of Review: Revision of a currently approved collection. Signed at Washington, D.C., this 22d day of August, 1996. Cone Mills Corporation Carlisle, South Carolina; Amended Certification Abstract: USAID is authorized to Peter T. Spolarich, make contracts with any corporation, Regarding Eligility to Apply for Worker Division of Management Systems, Bureau of Adjustment Assistance international organization, or other body Labor Statistics. of persons in or outside of the United [FR Doc. 96–21838 Filed 8–26–96; 8:45 am] In accordance with Section 223 of the States in furtherance of the purposes BILLING CODE 4510±28±M Trade Act of 1974 (19 U.S.C. 2273) the and within limitations of the Foreign Department of Labor issued a Assistance Act (FAA). The information Certification of Eligibility to Apply for collection requirements placed on the Employment and Training Worker Adjustment Assistance on July public are published in 48 CFR Chapter Administration 30, 1996, applicable to all workers of 7, and include such items as the [TA±W±32,260 and TA±W±32,260B] Cone Mills Corporation, Greensboro, Contractor Employee Biographical Data North Carolina. The notice will soon be Sheet and Performance & Progress Buster Brown Apparel, Inc., Garment published in the Federal Register. Reports (AIDAR 752.7026). These are all Finishing Department, Chattanooga, At the request of the State agency, the USAID unique procurement Tennessee and Sylva, North Carolina; Department reviewed the certification requirements. The preaward Amended Certification Regarding for workers of the subject firm. New requirements are based on a need for Eligibility to Apply for Worker findings show that the Department’s prudent management in the Adjustment Assistance worker certification incorrectly determination that an offeror either has identified the affected workers as being or can obtain the ability to competently In accordance with Section 223 of the located in Greensboro, North Carolina, manage development assistance Trade Act of 1974 (19 U.S.C. 2273) the the headquarters of Cone Mills programs utilizing public funds. The Department of Labor issued a Corporation. The worker separations requirements for information collection Certification of Eligibility to Apply for took place at the subject firm’s Carlisle requirements during the post-award Worker Adjustment Assistance on April Plant in Carlisle, South Carolina. The period are based on the need to 24, 1996, applicable to all workers of workers are engaged in the production administer public funds prudently. Buster Brown Apparel, Inc., of printed cloth/fabric. The company Chattanooga, Tennessee. The notice was reports that no worker layoffs have Annual Reporting Burden: published in the Federal Register on occurred in Greensboro, North Carolina. Number of Respondents: 3526. May 17, 1996 (61 FR 24960). The intent of the Department’s At the request of the company, the certification is to include those workers Total Annual Responses: 92,250. Department reviewed the certification of Cone Mills Corporation, adversely Total annual hours requested: for workers of the subject firm. New affected by imports. Accordingly, the 314,014. findings show that worker separations Department is amending the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44079 certification to exclude workers at the Investigations Regarding Certifications subject matter of the investigations may subject firms’ headquarters in of Eligibility to Apply for Worker request a public hearing, provided such Greensboro, North Carolina and include Adjustment Assistance request is filed in writing with the the workers at the Carlisle, South Program Manager, Office of Trade Carolina location. Petitions have been filed with the Adjustment Assistance, at the address Secretary of Labor under Section 221(a) shown below, not later than September The amended notice applicable to of the Trade Act of 1974 (‘‘the Act’’) and 6, 1996. TA–W–32,429 is hereby issued as are identified in the Appendix to this Interested persons are invited to follows: notice. Upon receipt of these petitions, submit written comments regarding the ‘‘All workers of Cone Mills Corporation, the Program Manager of the Office of subject matter of the investigations to Carlisle, South Carolina, who became totally Trade Adjustment Assistance, the Program Manager, Office of Trade or partially separated from employment on or Employment and Training Adjustment Assistance, at the address after May 22, 1995 are eligible to apply for Administration, has instituted shown below, not later than September adjustment assistance under Section 223 of investigations pursuant to Section 6, 1996. the Trade Act of 1974.’’ 221(a) of the Act. The petitions filed in this case are Signed at Washington, DC this 14th day of The purpose of each of the available for inspection at the Office of August 1996. investigations is to determine whether the Program Manager, Office of Trade Russell T. Kile, the workers are eligible to apply for Adjustment Assistance, Employment Acting Program Manager, Policy and adjustment assistance under Title II, and Training Administration, U.S. Reemployment Services, Office of Trade Chapter 2, of the Act. The investigations Department of Labor, 200 Constitution Adjustment Assistance. will further relate, as appropriate, to the Avenue, N.W., Washington, D.C. 20210. [FR Doc. 96–21832 Filed 8–26–96; 8:45 am] determination of the date on which total Signed at Washington, D.C. this 12th day or partial separations began or BILLING CODE 4510±30±M of August, 1996. threatened to begin and the subdivision Russell Kile, of the firm involved. Acting Program Manager, Policy & The petitioners or any other persons Reemployment Services, Office of Trade showing a substantial interest in the Adjustment Assistance.

Appendix

PETITIONS INSTITUTED ON 08/12/96

Date of TA±W Subject firm (petitioners) Location petition Product(s)

32,624 ..... Dura-Bond Industries (wkrs) ...... Highspire, PA ...... 07/29/96 Coating of large diameter steel pipes. 32,625 ..... Woodbridge Group (IBT) ...... Fairless Hills, PA ...... 07/30/96 Molds and finishes urethane foam. 32,626 ..... Devro-Teepak (wkrs) ...... Columbia, SC ...... 07/26/96 Meat casings. 32,627 ..... ABS Global, Inc. (wkrs) ...... Deforest, WI ...... 07/27/96 Breeding stock (bulls). 32,628 ..... Charming Shoppes (wkrs) ...... Philadelphia, PA ...... 07/23/96 Retail storeÐladies' apparel. 32,629 ..... Burlington Resources (Co.) ...... Englewood, CO ...... 07/30/96 Crude oil and natural gas. 32,630 ..... Conoco (Co.) ...... Houston, TX ...... 08/01/96 Crude oil and natural gas. 32,631 ..... S and D Creations (wkrs) ...... Owasso, OK ...... 07/30/96 Soft sculpture items. 32,632 ..... Liberty Childrenswear (Co.) ...... Birmingham, AL ...... 08/01/96 Children's jeans. 32,633 ..... Holiday Hosiery (Co.) ...... Hudson, NC ...... 08/0196 SocksÐmen and ladies. 32,634 ..... Trico Products Corp. (UAW) ...... Buffalo, NY ...... 07/29/96 Windshield wiper systems for autos. 32,635 ..... Lamson and Sessions (USWA) ...... Cleveland, OH ...... 07/30/96 Plastic conduits. 32,636 ..... Columbia Textile (UNITE) ...... Paterson, NJ ...... 07/23/96 Industrial and textile fabric for gar- ments. 32,637 ..... Aeroquip Corp. (wkrs) ...... Henderson, KY ...... 06/20/96 Injection moulding. 32,638 ..... Sterling Boot (EJL mfg) (wkrs) ...... Ft. Worth, TX ...... 07/29/96 Cowboy boots. 32,639 ..... Magnetex Manufacturing (wkrs) ...... Mendenhall, MS ...... 07/30/96 Light fixtures. 32,640 ..... British United Turkeys (Co.) ...... Lewisburg, WV ...... 08/02/96 Turkey hatching eggs. 32,641 ..... Robinson Manufacturing (wkrs) ...... Oxford, ME ...... 07/29/96 Textiles. 32,642 ..... Springs/Dundee Bath (Co.) ...... Dadeville, AL ...... 07/30/96 Woven textiles. 32,643 ..... L.L. Brewton Lumber Co. (wkrs) ...... Winnfield, LA ...... 07/29/96 Lumber.

[FR Doc. 96–21836 Filed 8–26–96; 8:45 am] [TA±W±31,946 and TA±W±31,946A] Apply for Worker Adjustment BILLING CODE 4510±30±M Assistance on March 12, 1996, J & J Lingerie Company, Glen Falls, applicable to all workers of J & J New York and Glencraft Lingerie, Inc., Lingerie Company located in Glen Falls, New York New York; Amended New York. The notice was published in Certification Regarding Eligibility to the Federal Register on March 25, 1996 Apply for Worker Adjustment (61 FR 12101). Assistance At the request of petitioners, the In accordance with Section 223 of the Department reviewed the worker Trade Act of 1974 (19 U.S.C. 2273) the certification. Findings show that Department of Labor issued a Notice of workers of the parent company of J & J Certification Regarding Eligibility to Lingerie Company were inadvertently 44080 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices excluded from the certification. The ‘‘All workers on Mahan Western Signed at Washington, DC this 14th day of Department is amending the Industries, Incorporated a/k/a Miller August 1996. certification to include workers of Manufacturing, a/k/a Private Western Brands, Russell T. Kile, Glencraft Lingerie, Inc. located in New Inc., El Paso, Texas who became totally or Acting Program Manager, Policy and York, New York. partially separated from employment on or Reemployment Services, Office of Trade The intent of the Department’s after May 4, 1994 are eligible to apply for Adjustment Assistance. certification is to include all workers of adjustment assistance under Section 223 of [FR Doc. 96–21830 Filed 8–26–96; 8:45 am] J & J Lingerie company adversely the Trade Act of 1974.’’ BILLING CODE 4510±30±M affected by imports. Signed at Washington, DC this 13th day of August 1996. The amended notice applicable to [TA±W±32,558] TA–W–31,946 is hereby issued as Russell T. Kile, follows: Acting Program Manager, Policy and Warner's of Warnaco Barbourville, ‘‘All workers of J & J Lingerie Company, Reemployment Services, Office of Trade Kentucky; Notice of Termination of Glen Falls, New York (TA–W–31,946) and Adjustment Assistance. Investigation Glencraft Lingerie, Inc., New York, New York [FR Doc. 96–21831 Filed 8–26–96; 8:45 am] (TA–W–31,946A), who became totally or Pursuant to Section 221 of the Trade BILLING CODE 4510±30±M partially separated from employment on or Act of 1974, an investigation was after February 6, 1995 are eligible to apply for initiated on July 15, 1996 in response to adjustment assistance under Section 223 of a worker petition which was filed June the Trade Act of 1974.’’ [TA±W±32,459 and TA±W±32,459A] 27, 1996 on behalf of workers at Signed at Washington, DC this 12th day of Warner’s of Warnaco, Barbourville, August 1996. Warner's, a Division of Warnaco Inc.; Kentucky (TA–W–32,558). Russell T. Kile, Dothan, Alabama and Barbourville, The petitioning group of workers are Acting Program Manager, Policy and Kentucky; Amended Certification covered under an existing Trade Reemployment Services, Office of Trade Regarding Eligibility To Apply for Adjustment Assistance certification Adjustment Assistance. Worker Adjustment Assistance (TA–W–32,459A). Consequently, further [FR Doc. 96–21833 Filed 8–26–96; 8:45 am] investigation in this case would serve BILLING CODE 4510±30±M In accordance with Section 223 of the no purpose, and the investigation has Trade Act of 1974 (19 USC 2273) the been terminated. Department of Labor issued a Signed at Washington, D.C., this 14th day [TA±W±31,031] Certification of Eligibility to Apply for of August 1996. Worker Adjustment Assistance on July Russell T. Kile, Mahan Western Industries, 11, 1996, applicable to all workers of Acting Program Manager, Policy and Incorporated, El Paso, Texas; Warner’s, a Division of Warnaco located Reemployment Services, Office of Trade Amended Certification Regarding in Dothan, Alabama. The notice was Adjustment Assistance. Eligibility to Apply for Worker published in the Federal Register on [FR Doc. 96–21835 Filed 8–26–96; 8:45 am] Adjustment Assistance August 2, 1996 (61 FR 40454). BILLING CODE 4510±30±M In accordance with Section 223 of the At the request of petitioners, the Trade Act of 1974 (19 U.S.C. 2273) the Department reviewed the certification Notice of Change in Status of Department of Labor issued a for workers of the subject firm. New Certification of Eligibility to Apply for Extended Benefit (EB) Periods for the findings show that worker separations State of Alaska. Worker Adjustment Assistance on June have occurred at Warner’s 14, 1995, applicable to all workers of manufacturing facility in Barbourville, This notice announces changes in Mahan Western Industries, Kentucky. The workers are engaged in benefit period eligibility under the EB Incorporated, a/k/a Miller employment related to the production of Program for the State of Alaska. Manufacturing, El Paso, Texas. The intimate apparel. SUMMARY: The following changes have notice was published in the Federal occurred since the publication of the The intent of the Department’s Register on June 27, 1995 (60 FR 33235). last notice regarding States’ EB status: At the request of the company, the certification is to include all workers of • July 6, 1996—Alaska’s 13-week Department reviewed the certification Warner’s, a division of Warnaco, insured unemployment rate for the for workers of the subject firm. The adversely affected by imports. week ending June 15, 1996 fell below company reports that its name has been Accordingly, the Department is 6.0 percent and was less than 120 changed to Private Western Brands, Inc. amending the certification to include all percent of the average for the Accordingly, the Department is workers at the subject firms’ corresponding period for the prior two amending the certification to include all Barbourville, Kentucky location. years, causing Alaska to trigger ‘‘off’’ EB workers of Private Western Brands, Inc., The amended notice applicable to effective July 6, 1996. El Paso, Texas. The workers are engaged TA–W–32,549 is hereby issued as in employment related to the Information for Claimants follows: production of leather western boots. The duration of benefits payable in The intent of the Department’s ‘‘All workers of Warner’s, a Division of the EB Program, and the terms and certification is to include all workers of Warnaco, Dothan, Alabama (TA–W–32,459), conditions on which they are payable, Mahan Western Industries, and Barbourville, Kentucky (TA–W– are governed by the Federal-State Incorporated, a/k/a Miller 32,459A), who became totally or partially Extended Unemployment Compensation Manufacturing adversely affected by separated from employment on or after June Act of 1970, as amended, and the imports. 4, 1995 are eligible to apply for adjustment operating instructions issued to the The amended notice applicable to assistance under Section 223 of the Trade Act States by the U.S. Department of Labor. TA–W–31,031 is hereby issued as of 1974.’’ In the case of a State beginning an EB follows: period, the State employment security Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44081 agency will furnish a written notice of held (where appropriate). The ‘‘secondary service’’ as defined in potential entitlement to each individual applicants have represented that they Section IV(h), in connection with the who has exhausted all rights to regular have complied with the requirements of termination of such CIFs, provided that benefits and is potentially eligible for the notification to interested persons. the following conditions and the general Extended Benefits (20 CFR 615.12(c)(1)). No public comments and no requests for conditions of Section III below are met: In the case of a State ending an EB a hearing, unless otherwise stated, were (a) No sales commissions or other fees period, the State employment security received by the Department. are paid by the Client Plans in agency will furnish a written notice to The notices of proposed exemption connection with the purchase of Fund each individual who is filing claims for were issued and the exemptions are shares through the in-kind transfer of Extended Benefits informing him/her of being granted solely by the Department CIF assets and no redemption fees are the EB period and its effect on the because, effective December 31, 1978, paid in connection with the sale of such individual’s right to Extended Benefits section 102 of Reorganization Plan No. shares by the Client Plans to the Funds. (20 CFR 615.13(c)(4)). 4 of 1978 (43 FR 47713, October 17, (b) All or a pro rata portion of the Persons who believe they may be 1978) transferred the authority of the assets of a CIF are transferred to a Fund entitled to Extended Benefits, or who Secretary of the Treasury to issue in exchange for shares of such Fund. wish to inquire about their rights under exemptions of the type proposed to the (c) Each Client Plan receives shares of the programs, should contact the nearest Secretary of Labor. a Fund which have a total net asset State employment service office or Statutory Findings value that is equal to the value of the unemployment compensation claims Client Plan’s pro rata share of the assets office in their locality. In accordance with section 408(a) of of the CIF on the date of the transfer, Signed at Washington, DC, on August 19th, the Act and/or section 4975(c)(2) of the based on the current market value of the 1996 Code and the procedures set forth in 29 CIF’s assets, as determined in a single Timothy M. Barnicle, CFR Part 2570, Subpart B (55 FR 32836, valuation performed in the same Assistant Secretary of Labor for Employment 32847, August 10, 1990) and based upon manner at the close of the same business and Training. the entire record, the Department makes day, using independent sources in [FR Doc. 96–21837 Filed 8–26–96; 8:45 am] the following findings: accordance with Rule 17a-7(b) of the (a) The exemptions are BILLING CODE 4510±30±M Securities and Exchange Commission administratively feasible; (SEC) under the 1940 Act and the (b) They are in the interests of the procedures established by the Funds plans and their participants and Pension and Welfare Benefits pursuant to Rule 17a-7 for the valuation beneficiaries; and Administration of such assets. Such procedures must (c) They are protective of the rights of require that all securities for which a [Prohibited Transaction Exemption 96±64; the participants and beneficiaries of the current market price cannot be obtained Exemption Application No. D±10063, et al.] plans. by reference to the last sale price for Grant of Individual Exemptions; Society National Bank; KeyTrust transactions reported on a recognized Society National Bank; KeyTrust Company of Ohio; Society Asset securities exchange or NASDAQ be Company of Ohio; Society Asset Management, Inc; and KeyCorp Located valued based on an average of the Management, Inc; and KeyCorp, et al. in Cleveland, Ohio highest current independent bid and lowest current independent offer, as of AGENCY: Pension and Welfare Benefits [Prohibited Transaction Exemption 96–64; Administration, Labor. Application No. D–10063] the close of business on the Friday preceding the weekend of the CIF ACTION: Grant of individual exemptions. SECTION I—Exemption for In-Kind transfers, determined on the basis of Transfer of CIF Assets SUMMARY: This document contains reasonable inquiry from at least three exemptions issued by the Department of The restrictions of section 406(a) and sources that are broker-dealers or Labor (the Department) from certain of 406(b) of the Act and the sanctions pricing services independent of the the prohibited transaction restrictions of resulting from the application of section Bank. the Employee Retirement Income 4975 of the Code, by reason of section (d) A second fiduciary who is Security Act of 1974 (the Act) and/or 4975(c)(1)(A) through (F) of the Code, independent of and unrelated to the the Internal Revenue Code of 1986 (the shall not apply as of December 1, 1993, Bank (the Second Fiduciary) receives Code). to the in-kind transfer of assets of plans advance written notice of the in-kind Notices were published in the Federal for which Society National Bank, transfer of assets of the CIFs and full Register of the pendency before the KeyTrust Company of Ohio, N.A., written disclosure of information Department of proposals to grant such Society Asset Management, Inc., and concerning the Funds, including: exemptions. The notices set forth a KeyCorp or an affiliate (collectively, the (1) A current prospectus for each summary of facts and representations Bank) serves as a fiduciary (the Client Fund in which a Client Plan is contained in each application for Plans), other than plans established and considering investing; exemption and referred interested maintained by the Bank, that are held in (2) A statement describing the fees for persons to the respective applications certain collective investment funds investment advisory or similar services, for a complete statement of the facts and maintained by the Bank (the CIFs), in any secondary services as defined in representations. The applications have exchange for shares of The Victory Section IV(h), and all other fees to be been available for public inspection at Portfolios (collectively, the Funds), an charged to or paid by the Client Plan the Department in Washington, D.C. The open-end investment company and by the Funds, including the nature notices also invited interested persons registered under the Investment and extent of any differential between to submit comments on the requested Company Act of 1940 (the 1940 Act), for the rates of such fees; exemptions to the Department. In which the Bank acts as an investment (3) The reasons why the Bank addition the notices stated that any adviser as well as a custodian, sub- considers investing in the Fund is an interested person might submit a administrator, and/or shareholder appropriate investment decision for the written request that a public hearing be servicing agent, or provides some other Client Plan; 44082 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

(4) A statement describing whether administrator and shareholder servicing (g) The Client Plans are not employee there are any limitations applicable to agent to the Funds, as well as for benefit plans sponsored or maintained the Bank with respect to which assets of providing any other services to the by the Bank. a Client Plan may be invested in a Fund, Funds which are not investment (h) The Second Fiduciary receives, in and, if so, the nature of such limitations; advisory services (i.e. ‘‘secondary advance of any initial investment by the and services’’), in connection with the Client Plan in a Fund, full and detailed (5) Upon request of the Second investment by the Client Plans in shares written disclosure of information Fiduciary, a copy of the proposed of the Funds, provided that the concerning the Funds, including but not exemption and/or a copy of the final following conditions and the general limited to: exemption, once such documents are conditions of Section III are met: (1) A current prospectus for each published in the Federal Register. (a) No sales commissions are paid by Fund in which a Client Plan is (e) After consideration of the the Client Plans in connection with the considering investing; foregoing information, the Second purchase or sale of shares of the Funds (2) A statement describing the fees for Fiduciary authorizes in writing the in- and no redemption fees are paid in investment advisory or similar services, kind transfer of the Client Plan’s CIF connection with the sale of shares by any secondary services as defined in assets to a corresponding Fund in the Client Plans to the Funds. Section IV(h), and all other fees to be exchange for shares of the Fund. (b) The price paid or received by a charged to or paid by the Client Plan (f) For all in-kind transfers of CIF Client Plan for shares in a Fund is the and by the Funds, including the nature assets to a Fund following March 5, net asset value per share at the time of and extent of any differential between 1996, the date of publication in the the transaction, as defined in Section the rates of such fees; IV(e), and is the same price which Federal Register for the proposal of this (3) The reasons why the Bank may would have been paid or received for exemption, the Bank sends by regular consider such investment to be the shares by any other investor at that mail to each affected Client Plan the appropriate for the Client Plan; following information: time. (c) The Bank, including any officer or (4) A statement describing whether (1) Within 30 days after completion of there are any limitations applicable to the transaction, a written confirmation director of the Bank, does not purchase or sell shares of the Funds from or to the Bank with respect to which assets of containing: a Client Plan may be invested in the (i) The identity of each security that any Client Plan. (d) Each Client Plan receives a credit, Funds, and if so, the nature of such was valued for purposes of the limitations; and transaction in accordance with Rule either through cash or the purchase of (5) Upon request of the Second 17a-7(b)(4); additional shares of the Funds pursuant Fiduciary, a copy of the proposed (ii) The price of each such security to an annual election made by the Client exemption and/or a copy of the final involved in the transaction; Plan, of such Plan’s proportionate share (iii) The identity of each pricing of all fees charged to the Funds by the exemption, once such documents are service or market-maker consulted in Bank for investment advisory services, published in the Federal Register. determining the value of such securities; including any investment advisory fees (i) After consideration of the and paid by the Bank to third party sub- information described above in (2) Within 90 days after completion of advisors, within no more than one paragraph (h), the Second Fiduciary each in-kind transfer, a written business day of the receipt of such fees authorizes in writing the investment of confirmation containing: by the Bank. assets of the Client Plan in each (i) The number of CIF units held by (e) For each Client Plan, the combined particular Fund, the fees to be paid by the Client Plan immediately before the total of all fees received by the Bank for such Funds to the Bank, and the transfer, the related per unit value, and the provision of services to the Client purchase of additional shares of a Fund the total dollar amount of such CIF Plan, and in connection with the by the Client Plan with the fees credited units; and provision of services to the Funds in to the Client Plan by the Bank. (ii) The number of shares in the Funds which the Client Plan may invest, is not (j) All authorizations made by a that are held by the Client Plan in excess of ‘‘reasonable compensation’’ Second Fiduciary regarding investments following the transfer, the related per within the meaning of section 408(b)(2) in a Fund and the fees paid to the Bank share net asset value, and the total of the Act.* are subject to an annual reauthorization dollar amount of such shares. (f) The Bank does not receive any fees wherein any such prior authorization (g) The conditions set forth in payable pursuant to Rule 12b–1 under referred to in paragraph (i) shall be paragraphs (e), (f) and (n) of Section II the 1940 Act in connection with the terminable at will by the Client Plan, below are satisfied. transactions. without penalty to the Client Plan, upon receipt by the Bank of written notice of Section II—Exemption for Receipt of * In addition, the Department notes that Section termination. A form expressly providing Fees 404(a) of the Act requires, among other things, that a fiduciary of a plan act prudently, solely in the an election to terminate the The restrictions of sections 406(a) and interest of the plan’s participants and beneficiaries, authorization described in paragraph (i) 406(b) of the Act and the sanctions and for the exclusive purpose of providing benefits above (the Termination Form) with resulting from the application of section to participants and beneficiaries when making instructions on the use of the form must investment decisions on behalf of a plan. Thus, the 4975 of the Code, by reason of section Department believes that the Bank should ensure, be supplied to the Second Fiduciary no 4975(c)(1)(A) through (F) of the Code, prior to any investments made by a Client Plan for less than annually; provided that the shall not apply as of October 1, 1995 to: which it acts as a trustee or investment manager, Termination Form need not be supplied (1) the receipt of fees by the Bank from that all fees paid by the Funds, including fees paid to the Second Fiduciary pursuant to this to parties unrelated to the Bank and its affiliates, the Funds for acting as an investment are reasonable. In this regard, the Department is paragraph sooner than six months after adviser to the Funds in connection with providing no opinion as to whether the total fees such Termination Form is supplied the investment by the Client Plans in to be paid by a Client Plan to the Bank, its affiliates, pursuant to paragraph (l) below, except shares of the Funds; and (2) the receipt and third parties under the arrangements described to the extent required by such paragraph herein would be either reasonable or in the best and retention of fees by the Bank from interests of the participants and beneficiaries of the in order to disclose an additional the Funds for acting as custodian, sub- Client Plans. service or fee increase. The instructions Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44083 for the Termination Form must include (3) Oral or written responses to controlling, controlled by, or under the following information: inquiries of the Second Fiduciary as common control with the person; (1) The authorization is terminable at they arise. (2) Any officer, director, employee, will by the Client Plan, without penalty (n) All dealings between the Client relative, or partner in any such person; to the Client Plan, upon receipt by the Plans and the Funds are on a basis no and Bank of written notice from the Second less favorable to the Client Plans than (3) Any corporation or partnership of Fiduciary; and dealings with other shareholders of the which such person is an officer, (2) Failure to return the Termination Funds. director, partner, or employee. Form will result in continued (c) The term ‘‘control’’ means the Section III—General Conditions authorization of the Bank to engage in power to exercise a controlling the transactions described in paragraph (a) The Bank maintains for a period of influence over the management or (i) on behalf of the Client Plan. six years the records necessary to enable policies of a person other than an (k) The Second Fiduciary of each the persons described below in individual. Client Plan invested in a particular paragraph (b) to determine whether the (d) The term ‘‘Fund’’ or ‘‘Funds’’ shall Fund receives full written disclosure, in conditions of this exemption have been include the Victory Portfolios, or any a statement separate from the Fund met, except that (1) a prohibited other diversified open-end investment prospectus, of any proposed increases in transaction will not be considered to company or companies registered under the rates of fees charged by the Bank to have occurred if, due to circumstances the 1940 Act for which the Bank serves the Funds for secondary services (as beyond the control of the Bank, the as an investment adviser and may also defined in Section IV(h) below) at least records are lost or destroyed prior to the serve as a custodian, shareholder 30 days prior to the effective date of end of the six-year period, and (2) no servicing agent, transfer agent or such increase, accompanied by a copy party in interest other than the Bank provide some other ‘‘secondary service’’ of the Termination Form, and receives shall be subject to the civil penalty that (as defined below in paragraph (h) of full written disclosure in a Fund may be assessed under section 502(i) of this Section) which has been approved prospectus or otherwise of any increases the Act or to the taxes imposed by by such Funds. (e) The term ‘‘net asset value’’ means in the rates of fees charged by the Bank section 4975(a) and (b) of the Code if the the amount for purposes of pricing all to the Funds for investment advisory records are not maintained or are not purchases and sales calculated by services even though such fees will be available for examination as required by dividing the value of all securities, credited as required by paragraph (d) paragraph (b) below. determined by a method as set forth in above. (b) (1) Except as provided in the Fund’s prospectus and statement of (l) In the event that the Bank provides paragraph (b)(2) and notwithstanding additional information, and other assets an additional secondary service to a any provisions of section 504(a)(2) and belonging to the Fund or portfolio of the Fund for which a fee is charged or there (b) of the Act, the records referred to in Fund, less the liabilities charged to each is an increase in the amount of fees paid paragraph (a) are unconditionally such portfolio or Fund, by the number by the Funds to the Bank for any available at their customary location for examination during normal business of outstanding shares. secondary services resulting from a (f) The term ‘‘relative’’ means a hours by— decrease in the number or kind of ‘‘relative’’ as that term is defined in (i) Any duly authorized employee or services performed by the Bank for such section 3(15) of the Act (or a ‘‘member representative of the Department or the fees in connection with a previously of the family’’ as that term is defined in Internal Revenue Service, authorized secondary service, the Bank section 4975(e)(6) of the Code), or a will, at least thirty days in advance of (ii) Any fiduciary of the Client Plans brother, a sister, or a spouse of a brother the implementation of such additional who has authority to acquire or dispose or a sister. service or fee increase, provide written of shares of the Funds owned by the (g) The term ‘‘Second Fiduciary’’ notice to the Second Fiduciary Client Plans, or any duly authorized means a fiduciary of a Client Plan who explaining the nature and the amount of employee or representative of such is independent of and unrelated to the the additional service for which a fee fiduciary, and Bank. For purposes of this exemption, will be charged or the nature and (iii) Any participant or beneficiary of the Second Fiduciary will not be amount of the increase in fees of the the Client Plans or duly authorized deemed to be independent of and affected Fund. Such notice shall be employee or representative of such unrelated to the Bank if: accompanied by the Termination Form, participant or beneficiary; (1) Such fiduciary directly or as defined in Section IV(i) below. (2) None of the persons described in indirectly controls, is controlled by, or (m) On an annual basis, the Bank paragraph (b)(1)(ii) and (iii) shall be is under common control with the Bank; provides the Second Fiduciary of a authorized to examine trade secrets of (2) Such fiduciary, or any officer, Client Plan investing in the Funds with: the Bank, or commercial or financial director, partner, employee, or relative (1) A copy of the current prospectus information which is privileged or of the fiduciary is an officer, director, for the Funds and, upon such confidential. partner or employee of the Bank (or is fiduciary’s request, a copy of the Section IV—Definitions a relative of such persons) or any Statement of Additional Information for affiliate thereof; such Funds which contains a For purposes of this exemption: (3) Such fiduciary directly or description of all fees paid by the Funds (a) The term ‘‘Bank’’ includes Society indirectly receives any compensation or to the Bank; National Bank, KeyTrust Company of other consideration for his or her own (2) A copy of the annual financial Ohio, Society Asset Management, Inc., personal account in connection with disclosure report of the Funds in which KeyCorp and any affiliate thereof as any transaction described in this such Client Plan is invested which defined below in paragraph (b)(1) of this exemption. includes information about the Fund section. If an officer, director, partner, portfolios as well as audit findings of an (b) An ‘‘affiliate’’ of a person includes: employee of the Bank (or relative of independent auditor within 60 days of (1) Any person directly or indirectly such persons), or affiliate thereof, is a the preparation of the report; and through one or more intermediaries, director of such Second Fiduciary, and 44084 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices if he or she abstains from participation to comment or request a hearing on the Hach Company 401(k) Profit Sharing in (i) the choice of the Client Plan’s proposed exemption. No written Plan (the Plan) Located in Loveland, CO investment adviser, (ii) the approval of comments or requests for a hearing were [Prohibited Transaction Exemption 96–66; any such purchase or sale between the received by the Department. Exemption Application No. D–10203] Client Plan and the Funds, and (iii) the FOR FURTHER INFORMATION CONTACT: approval of any change in fees charged Mr. Exemption E. F. Williams of the Department, to or paid by the Client Plan in The restrictions of sections 406(a), connection with any of the transactions telephone (202) 219–8194. (This is not a toll-free number.) 406(b)(1) and (b)(2) of the Act and the described in Sections I and II above, sanctions resulting from the application then paragraph (g)(2) of this section Bill Ussery Motors, Inc. Fourth of section 4975 of the Code, by reason shall not apply. Amended and Restated Profit Sharing of section 4975(c)(1)(A) through (E) of (h) The term ‘‘secondary service’’ Plan and Trust (the Plan) Located in the Code, shall not apply to the means a service other than an Coral Gables, Florida proposed cash sale by the Plan of Group investment management, investment Annuity Contract No. 5000008 (the advisory, or similar service, which is [Prohibited Transaction Exemption 96–65; GAC) issued by Anchor National Life Exemption Application No. D–10146] provided by the Bank to the Funds. For Insurance Company, located in Los purposes of this exemption, the term Exemption Angeles, California, to Hach Company, ‘‘secondary service’’ will include a party in interest with respect to the securities lending services provided by The restrictions of sections 406(a) and Plan. the Bank to the Funds, but will not 406(b)(1) and (b)(2) of the Act and the This exemption is subject to the include any brokerage services provided sanctions resulting from the application following conditions: to the Funds by the Bank for the of section 4975 of the Code, by reason (a) The sale is a one-time transaction execution of securities transactions of section 4975(c)(1)(A) through (E) of for cash. engaged in by the Funds. the Code, shall not apply to the cash (b) The Plan does not experience any (i) The term ‘‘Termination Form’’ sale (the Sale) of certain real property losses or incur any expenses in means the form supplied to the Second (the Property) by the Plan to Mr. John connection with the transaction. Fiduciary which expressly provides an C. Brockway, the sole shareholder of the (c) The Plan receives as consideration election to the Second Fiduciary to sponsoring employer and a party in an amount that is equal to the fair terminate on behalf of a Client Plan the interest with respect to the Plan; market value of the GAC as of the date authorization described in paragraph (j) provided that (1) the Sale is a one-time of the sale. of Section II. Such Termination Form transaction for cash; (2) the Plan does (d) The trustees of the Plan have may be used at will by the Second not experience any loss nor incur any determined that the proposed Fiduciary to terminate an authorization expenses from the transaction; and (3) transaction is appropriate for the Plan without penalty to the Client Plan and the Plan receives as consideration from and in the best interests of the Plan’s to notify the Bank in writing to effect a the Sale the greater of either (a) the fair participants and beneficiaries. termination by selling the shares of the market value of the property as For a more complete statement of the Funds held by the Client Plan determined by a qualified, independent facts and representations supporting the requesting such termination within one appraiser on the date of the Sale, or (b) Department’s decision to grant this business day following receipt by the an amount equal to the appraised fair exemption, refer to the notice of Bank of the form; provided that if, due market value as determined on proposed exemption published on June to circumstances beyond the control of December 31, 1994. 21, 1996 at 61 FR 31955. the Bank, the sale cannot be executed FOR FURTHER INFORMATION CONTACT: within one business day, the Bank shall For a more complete statement of the Ms. have one additional business day to facts and representations supporting the Jan D. Broady of the Department, complete such sale. Department’s decision to grant this telephone (202) 219–8881. (This is not a toll-free number.) EFFECTIVE DATE: This exemption is exemption refer to the notice of effective as of December 1, 1993, for the proposed exemption published on June Cablevision Industries Corporation transactions described in Section I 21, 1996, at 61 FR 31954. Profit Sharing Plan (the Plan) Located above, and October 1, 1995, for the COMMENTS: The Department received in New York, New York transactions described in Section II one written comment requesting that the [Prohibited Transaction Exemption 96–67; above. purchaser of the Property be changed Exemption Application No. D–10233] For a more complete statement of the from Bill Ussery Motors, Inc. (the Exemption facts and representations supporting the Employer), the sponsoring employer Department’s decision to grant this and a party in interest to Mr. John C. The restrictions of sections 406(a), exemption, refer to the notice of Brockway, the sole shareholder of the 406(b)(1) and (b)(2) of the Act and the proposed exemption published on Employer and its Chief Executive sanctions resulting from the application March 5, 1996, at 61 FR 8674. Officer, and a party in interest. of section 4975 of the Code, by reason NOTICE TO INTERESTED PERSONS: The Accordingly, after giving full of section 4975(c)(1)(A) through (E) of applicant represents that it was unable consideration to the request and the the Code, shall not apply to the to notify interested persons within the entire record, the Department has purchase from the Plan by Cablevision time period specified in the Federal determined to change the designation of Industries Corporation (the Employer), Register notice published on March 5, the purchaser of the Property as the sponsor of the Plan, of the Plan’s 1996. The applicant states that requested and to grant the exemption. entire remaining interest (the Surviving interested persons were notified, in the Claim) in guaranteed investment manner agreed upon between the FOR FURTHER INFORMATION CONTACT: Mr. contract number GCNG8690011A issued applicant and the Department, by June C. E. Beaver of the Department, by the Executive Life Insurance 30, 1996. Interested persons were telephone (202) 219–8881. (This is not Company; provided that the following advised that they had until July 31, 1996 a toll-free number.) conditions are satisfied: Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44085

(A) All terms and conditions of the received by the Department was (3) The availability of these transaction are at least as favorable to submitted by the applicant to correct an exemptions is subject to the express the Plan as those which the Plan could erroneous representation in the notice of condition that the material facts and obtain in an arm’s-length transaction proposed exemption. The applicant had representations contained in each with an unrelated party; represented that German companies do application accurately describes all (B) The Plan receives a cash purchase not maintain stock plans since, under material terms of the transaction which price which is no less than the greater German law, companies are not legally is the subject of the exemption. of (1) the fair market value of the permitted to purchase their own stock. Signed at Washington, D.C., this 22nd day Surviving Claim as of the sale date, or The applicant states in its comment of August, 1996. (2) the Plan’s principal investment letter that it has recently come to the Ivan Strasfeld, attributable to the Surviving Claim plus applicant’s attention that in certain interest through the purchase date at the Director of Exemption Determinations, cases some German corporations have Pension and Welfare Benefits Administration, Contract Rate (as defined in the Notice introduced stock plans to compensate U.S. Department of Labor. of Proposed Exemption); and their German employees. The applicant [FR Doc. 96–21840 Filed 8–26–96; 8:45 am] (C) In the event the Employer also represents that this does not change subsequently receives payments with the fact that Hoechst AG, the German BILLING CODE 4510±29±P respect to the Surviving Claim from any corporation of which the Corporation is source in excess of the purchase price an indirect wholly owned subsidiary, [Application No. D±10224, et al.] paid to Plan, such excess will be paid does not wish to have any of its equity to the Plan. securities owned by an employee stock Proposed Exemptions; Zerhusen and EFFECTIVE DATE: This exemption is ownership plan for the benefit of United Ghazi, M.D. Inc. Profit Sharing Plan, et effective as of June 17, 1996. States employees. al. For a more complete statement of the The Department received no hearing facts and representations supporting requests with respect to the proposed AGENCY: Pension and Welfare Benefits this exemption, refer to the notice of exemption. The Department has Administration, Labor proposed exemption published on June considered the entire record, including ACTION: Notice of proposed exemptions. 4, 1996 at 61 FR 28242. the applicant’s comment, and has SUMMARY: This document contains FOR FURTHER INFORMATION CONTACT: determined to grant the exemption as notices of pendency before the Ronald Willett of the Department, proposed. Department of Labor (the Department) of telephone (202) 219–8881. (This is not FOR FURTHER INFORMATION CONTACT: Gary proposed exemptions from certain of the a toll-free number.) H. Lefkowitz of the Department, telephone (202) 219–8881. (This is not prohibited transaction restriction of the Hoechst Marion Roussel, Inc. Matching a toll-free number.) Employee Retirement Income Security Contribution Plan (the Plan) Located in Act of 1974 (the Act) and/or the Internal Kansas City, Missouri General Information Revenue Code of 1986 (the Code). [Prohibited Transaction Exemption 96–68; The attention of interested persons is Written Comments and Hearing Exemption Application No. D–10242] directed to the following: Requests (1) The fact that a transaction is the Exemption subject of an exemption under section All interested persons are invited to The restrictions of sections 406(a), 408(a) of the Act and/or section submit written comments or request for 406(b)(1) and (b)(2) of the Act and the 4975(c)(2) of the Code does not relieve a hearing on the pending exemptions, sanctions resulting from the application a fiduciary or other party in interest or unless otherwise stated in the Notice of of section 4975 of the Code, by reason disqualified person from certain other Proposed Exemption, within 45 days of section 4975(c)(1)(A) through (E) of provisions to which the exemptions from the date of publication of this the Code, shall not apply to the does not apply and the general fiduciary Federal Register Notice. Comments and continuing guarantee by Hoechst responsibility provisions of section 404 request for a hearing should state: (1) Marion Roussel, Inc. (the Corporation) of the Act, which among other things the name, address, and telephone of a loan made to the Marion Merrell require a fiduciary to discharge his number of the person making the Dow Inc. Associate Stock Ownership duties respecting the plan solely in the comment or request, and (2) the nature Plan (the Plan), provided the following interest of the participants and of the person’s interest in the exemption conditions are satisfied: a) the beneficiaries of the plan and in a and the manner in which the person transaction is a continuation of a prudent fashion in accordance with would be adversely affected by the guarantee that was statutorily exempt at section 404(a)(1)(B) of the Act; nor does exemption. A request for a hearing must the time it was entered into; and b) the it affect the requirement of section also state the issues to be addressed and transaction requires an exemption 401(a) of the Code that the plan must include a general description of the because of an independent transaction operate for the exclusive benefit of the evidence to be presented at the hearing. involving the Plan’s sponsor as a employees of the employer maintaining A request for a hearing must also state corporate entity. the plan and their beneficiaries; the issues to be addressed and include For a more complete statement of the (2) These exemptions are a general description of the evidence to facts and representations supporting the supplemental to and not in derogation be presented at the hearing. Department’s decision to grant this of, any other provisions of the Act and/ ADDRESSES: All written comments and exemption, refer to the notice of or the Code, including statutory or request for a hearing (at least three proposed exemption published on June administrative exemptions and copies) should be sent to the Pension 21, 1996 at 61 FR 31956. transactional rules. Furthermore, the and Welfare Benefits Administration, EFFECTIVE DATE: This exemption is fact that a transaction is subject to an Office of Exemption Determinations, effective from July 18, 1995 to August 2, administrative or statutory exemption is Room N–5649, U.S. Department of 2005. not dispositive of whether the Labor, 200 Constitution Avenue, N.W., WRITTEN COMMENTS AND HEARING transaction is in fact a prohibited Washington, D.C. 20210. Attention: REQUESTS: The only written comment transaction; and Application No. stated in each Notice of 44086 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Proposed Exemption. The applications Sale) by Dr. J. Robert Zerhusen’s Property.1 The adjacent Property was for exemption and the comments individual, self-directed account within purchased by Mrs. Zerhusen for $8,000 received will be available for public the Plan (the Account) of a parcel of real per acre or $160,000.00. inspection in the Public Documents property (the Property) to his spouse, 4. The Property has been held in the Room of Pension and Welfare Benefits Marilyn E. Zerhusen (Mrs. Zerhusen), a Account since the purchase date and Administration, U.S. Department of participant in the Plan and a party in has not been used by or leased to any Labor, Room N–5507, 200 Constitution interest with respect to the Plan, person since its acquisition by the Avenue, N.W., Washington, D.C. 20210. provided that the following conditions Account. On February 9, 1996, the are satisfied: (a) the Sale is a one time Property was appraised by Joseph L. Notice to Interested Persons transaction for a lump sum cash Schaffer, a Certified Real Estate Notice of the proposed exemptions payment; (b) the purchase price is the Appraiser located in Cincinnati, Ohio. will be provided to all interested fair market value of the Property as of Relying on the market data approach, persons in the manner agreed upon by the date of the Sale; (c) the Property has Mr. Schaffer estimated that the fair the applicant and the Department been appraised by a qualified, market value of the Property was within 15 days of the date of publication independent real estate appraiser; and $49,100.00. In his appraisal of the in the Federal Register. Such notice (d) the Account will pay no Property, Mr. Schaffer found that there shall include a copy of the notice of commissions or other expenses relating will be no special benefit to be derived proposed exemption as published in the to the Sale. by Mrs. Zerhusen by virtue of Federal Register and shall inform purchasing the Property due to the fact interested persons of their right to Summary of Facts and Representations that she owns the adjacent parcel. comment and to request a hearing 1. The Plan is a defined contribution 5. Mrs. Zerhusen proposes to (where appropriate). plan and has four participants as of the purchase the Property from the Account SUPPLEMENTARY INFORMATION: The date of the application. The Plan for a lump sum payment of cash proposed exemptions were requested in participants have individual, self- representing the fair market value of the applications filed pursuant to section directed investment accounts within the Property on the date of sale. There will 408(a) of the Act and/or section Plan. Dr. J. Robert Zerhusen (Dr. be no other type of financing involved. 4975(c)(2) of the Code, and in Zerhusen) has a non-self-directed The applicant represents that the Sale accordance with procedures set forth in account in addition to a self-directed will result in a conversion of Plan assets 29 CFR Part 2570, Subpart B (55 FR account within the Plan. The real from real property to a liquid 32836, 32847, August 10, 1990). property involved in the Sale is in Dr. investment. The Plan will be Effective December 31, 1978, section Zerhusen’s self-directed account and Dr. terminating due to dissolution of the 102 of Reorganization Plan No. 4 of Zerhusen has investment discretion Plan sponsor, Z & G, and liquid assets 1978 (43 FR 47713, October 17, 1978) over this real property. As of December will be easier to transfer from the Plan. transferred the authority of the Secretary 31, 1995, the fair market value of the 6. In summary, the applicant of the Treasury to issue exemptions of total assets of the Plan was $911,015.68. represents that the requested exemption the type requested to the Secretary of As of that date, the Account had assets will satisfy the criteria of section 408(a) Labor. Therefore, these notices of of $106,546.00 and Dr. Zerhusen’s non- of the Act for the following reasons: (a) proposed exemption are issued solely self-directed account had assets of The Sale is a one time transaction for a by the Department. $713,740.45. The $49,100.00 appraised lump sum cash payment; (b) the Plan The applications contain value of the Property represents forty- will receive the fair market value of the representations with regard to the six (46) percent of the total Account Property at the time of the transaction; proposed exemptions which are balance as of December 31, 1995. (c) the fair market value of the Property summarized below. Interested persons 2. The Plan was sponsored by has been determined by an are referred to the applications on file Zerhusen & Ghazi, M.D. Inc. (Z & G) independent, qualified real estate with the Department for a complete which was an Ohio corporation appraiser; (d) the Plan will pay no fees statement of the facts and maintained by physicians for the or commissions associated with the representations. practice of medicine. Dr. Zerhusen is Sale; and (e) no other participant in the Zerhusen and Ghazi, M.D. Inc. Profit the trustee of the Plan. Currently, there Plan will be affected by the transaction. Sharing Plan (the Plan) Located in is no active trade or business being Notice to Interested Persons Cincinnati, Ohio conducted in the name of Z & G. The operations of the corporation have been Because the only Plan assets involved [Application No. D–10224] transferred to a newly formed in the proposed transaction are those in Proposed Exemption corporation named Westside the Account of Dr. Zerhusen and he is Cardiology, Inc. Dr. Zerhusen maintains the only participant affected by the The Department of Labor (the proposed transaction, it has been Department) is considering granting an the position of president and director of Westside Cardiology, Inc. determined that there is no need to exemption under the authority of distribute the notice of proposed section 408(a) of the Act and section 3. The Property consists of 5.112 acres exemption to interested persons. 4975(c)(2) of the Code and in of unimproved land located on Rear Comments and requests for a hearing are accordance with the procedures set Owl Creek Road in Cincinnati, Ohio. due 30 days from the date of publication forth in 29 CFR Part 2570, Subpart B (55 The specific zoning classification is of this proposed exemption in the FR 32836, 32847, August 10, 1990). If residential. The Property was originally Federal Register. the exemption is granted, the purchased by the Account on December restrictions of sections 406(a), 406(b)(1) 23, 1986 for $40,000.00. The 20 acres of FOR FURTHER INFORMATION CONTACT: and (b)(2) of the Act and the sanctions property adjacent to the Property is Wendy McColough of the Department, resulting from the application of section owned by Mrs. Zerhusen. Mrs. Zerhusen purchased the adjacent property from 1 The Department expresses no opinion herein on 4975 of the Code, by reason of section whether the acquisition and holding of the Property 4975(c)(1)((A) through (E) of the Code, the same seller and on the same date by the Account in the Plan violated any of the shall not apply to the proposed sale (the that the Account purchased the provisions of Part 4 of Title I of the Act. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44087 telephone (202) 219–8971. (This is not Summary of Facts and Representations aggregate market value of at least $50 a toll-free number.) 1. Lehman, a Delaware corporation, is million. This restriction is intended to a wholly-owned subsidiary of Lehman assure that the decision to purchase a Lehman Brothers, Inc. (Lehman) CGIC will be made by an independent Located in New York, New York Brothers Holdings Inc. (Holdings), also a Delaware corporation. Lehman, one of fiduciary of above average experience [Application No. D–10255] the largest full-line investment services and sophistication in matters of this firms in the United States, is a broker/ kind. Proposed Exemption dealer registered with and regulated by 5. Lehman will provide an The Department is considering the Securities and Exchange independent fiduciary of the Plan with its most recent audited statement of granting an exemption under the Commission. Lehman is a member of financial condition and its most recent authority of section 408(a) of the Act the New York Stock Exchange and other unaudited statement of financial and section 4975(c)(2) of the Code and principal securities exchanges in the U.S., is a primary government securities condition at the time Lehman issues a in accordance with the procedures set Confirmation to the Plan. In addition, forth in 29 CFR Part 2570, Subpart B (55 dealer, and is also a member of the National Association of Securities Lehman will represent to the Plan that, FR 32836, 32847, August 10, 1990). If Dealers, Inc. As of November 30, 1995, since the date of the latest such the exemption is granted, the Lehman had $82.6 billion in assets, $2 financial statement, there has been no restrictions of section 406(a) of the Act billion in shareholders’ equity, and $3 material adverse change in its financial and the sanctions resulting from the billion in subordinated debt. condition that has not been disclosed to application of section 4975 of the Code, 2. On August 31, 1995, Lehman the Plan. Finally, during the term of the by reason of section 4975(c)(1)(A) Government Securities, Inc. (LGSI), CGIC, Lehman will provide the Plan through (D) of the Code, shall not apply another wholly-owned subsidiary of with future audited and unaudited to the sales of collateralized guaranteed Holdings, merged into Lehman. LGSI statements of its financial condition as investment contracts (CGICs) by had been an issuer of a variety of these are issued. Lehman to employee benefit plans (the different types of guaranteed investment 6. By the close of business on the Plans), provided the following contracts (GICs) since 1986. Lehman has initial day of a Plan’s purchase of a conditions are satisfied: (a) The decision issued over $19.5 billion of GICs CGIC, assets will be transferred to a to purchase a CGIC will be made by a (including the activities of LGSI) and custodial account in the name of the fiduciary of a Plan who is independent maintains an active portfolio of between Plan’s trustee, pursuant to the terms of of Lehman; (b) Lehman will provide the $6.5 and $8.5 billion. the Custody Agreement. The assets will independent fiduciary with audited and 3. Lehman requests an exemption for be in the form of Purchased Securities unaudited statements of its financial the sale of CGICs to Plans. The applicant selected by the Plan, and the margin condition at the time of the purchase of represents that a CGIC is a secured, value of the securities (the Margin the CGIC and subsequently as issued; (c) stable GIC. A CGIC offers all of the Value) will be equivalent to the market Lehman will transfer to a tri-party return characteristics and ease of use value of the Purchased Securities custodial account, under the exclusive found in a traditional insurance divided by an applicable margin company general account GIC, such as direction of a Plan’s trustees, securities percentage (the Margin Percentage). The a fixed, floating or indexed rate of selected by the Plan with a market value Margin Percentage for Purchased return, benefit responsiveness and book Securities (other than for cash) 3 will be equal to at least 102% of the CGIC’s value accounting. However, unlike a purchase price; (d) such securities will no less than 102 percent, depending on general or separate account GIC, a CGIC the type of Purchased Securities. The be marked to market on a daily basis, offers additional protection by allowing and Lehman will be required to Margin Value of the Purchased a Plan sponsor to maintain legal title to Securities based upon such Margin maintain the market value of the the assets which Lehman deposits to Percentage shall equal or exceed the securities at the agreed-upon level of at secure the CGIC’s principal for the term purchase price of the CGIC (the least 102% of the CGIC’s purchase price; of the CGIC. In addition, the Plan’s Purchase Price). (e) a Plan will receive daily reports sponsor will stipulate the quality and 7. Under the terms of the Custody describing the securities on deposit and type of assets (the Purchased Securities) Agreement, a tri-party custodial their market value, and monthly reports selected to secure its CGIC contract, and arrangement, an independent bank will describing all activity with respect to such assets will be held by a third party act as the non-exclusive custodian the CGIC, including accrued interest; (f) custodian.2 (Custodian) with respect to the CGIC an a Plan will have full recourse against 4. The purchase of a CGIC by a Plan all transactions thereunder.4 Lehman Lehman for all obligations and expenses will be effected through the execution will pay all costs associated with the owed to it by Lehman,; (g) Lehman will by an independent Plan fiduciary of a establishment and operation of the be responsible for all legal fees and Master Repurchase Agreement With custodial account, and such account by expenses associated with any failure to Respect to CGIC Investments (the Master its terms will not be subject to any fulfill its obligations under a CGIC; (h) Agreement), a confirmation (the security interest, lien or right of setoff a Plan will have an unqualified right to Confirmation), and a custody agreement by the Custodian, or any third party the return of its principal and accrued (the Custody Agreement). Lehman claiming through the Custodian. interest no later than the conclusion of represents that it will market CGICs the stated term of the CGIC; (i) if a Plan only to Plans with assets having an 3 Cash may be substituted for Purchased requires a termination of a CGIC prior to Securities during the course of a business day or be 2 If and when Lehman substitutes securities for delivered to the Plan’s account to cure a margin maturity to pay benefit responsive the Purchased Securities that were selected by a deficit in accordance with the terms of the Custody payments, no market value adjustment Plan, the substituted securities will have a Agreement. The Margin Percentage with respect to will be imposed; and (j) Lehman will statistical credit rating from an independent rating such cash shall be 100%. market CGICs only to Plans with assets agency that is, at a minimum, equal to the credit 4 Although it is anticipated that most Plans will rating of the lowest rated Purchased Securities that choose the tri-party custodial arrangement, a Plan having an aggregate market value of at had been selected by the Plan as acceptable may, at its discretion, hold the assets related to a least $50 million. collateral at the time of the purchase of the CGIC. CGIC. 44088 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

8. The Custodian will be responsible needs of the Plan. A Plan will receive such a Transaction Reduction. Such for daily mark-to-market valuations of from Lehman monthly reports detailing Termination Cost would be determined the Purchased Securities to ensure that all activity with respect to the Plan’s in accordance with one of two the Margin Value of the Purchased CGIC, including accrued interest, as methodologies mutually agreed upon in Securities will be maintained at the well as the previously discussed daily the Confirmation and described in the agreed-upon level throughout the life of reports from the Custodian regarding the Master Agreement. One such the CGIC. The Custodian will provide market value of the Purchased methodology would employ an daily reports to the Plan and to Lehman Securities. objective mathematical computation describing the Purchased Securities on 12. In order to provide a Plan with the that would result in a Termination Cost deposit in the Custodial Account and ability to withdraw all or part of its if the prevailing interest rate on the date the market value of such securities. If a investment prior to the maturity date of of notice for a comparable GIC with decline in the market value of the a CGIC, the Master Agreement provides terms similar to the unexpired term of Purchased Securities causes the Margin that the Plan, in its sole discretion may the CGIC were greater than that of the Value to fall below the Purchase Price, require Lehman to repurchase CGIC. Under an alternative the Custodian will require Lehman to Purchased Securities held in the methodology, the Termination Cost transfer sufficient securities (or cash) to custodial account prior to the maturity would be based upon quotations the Plan’s account to restore the value date of the CGIC (a Transaction obtained by Lehman from not less than of the Purchased Securities to the Reduction) under the following three leading independent dealers of the appropriate Margin Value. Conversely, circumstances and conditions. amount, if any, that Lehman would be if an increase in the market value of the The Master Agreement will provide required to pay such a dealer to enter Purchased Securities causes the Margin that, prior to requesting a Transaction into an agreement with Lehman that Value to exceed the Purchase Price, Reduction, a Plan must satisfy its would have the effect of preserving for Lehman may request the Custodian to benefit responsive payments, to the Lehman the economic equivalent of its transfer to it sufficient cash or securities extent possible, from its normal sources rights under the CGIC. The lowest of such that the Margin Value in the Plan’s of liquidity which shall be set forth in such dealer quotations (i.e., the account does not exceed the Purchase the Master Agreement or the quotation most favorable to the Plan) Price. Confirmation. Such sources, which are would be the Termination Cost of the 9. The general terms of a CGIC, Plan assets separate and apart from the CGIC. Such quotes would result in a including the terms and conditions CGIC, may include, but are not limited Termination Cost to a Plan only if the under which Lehman will repurchase to, the following: quote most favorable to the Plan Purchased Securities from a Plan, will (a) cash reserves; represented an amount that Lehman be set forth in the Master Agreement, (b) funds received from new deposits; would be required to pay to the (c) liquidation of short-term while the specific and negotiable terms independent dealer for such a of a CGIC, such as the principal amount, securities; (d) proceeds from interest payments replacement transaction. In either case, the interest rate, the maturity date, and the Termination Cost would not be the Margin Percentage will be set forth received; (e) proceeds from the maturity of based on the investment performance of in a Confirmation. the Purchased Securities or investments 10. The type of Purchased Securities contracts. purchased by Lehman with the CGIC will be a component in determining the However, to the extent that these principal. Lehman represents that it will interest rate of a CGIC. For example, normal sources of a Plan’s liquidity not have the discretion to increase the direct obligations of the U.S. have been exhausted and additional market value adjustment to a CGIC Government, such as Treasury bills, funds are required by the Plan to satisfy notes, bonds and GNMAs, will provide its benefit responsive payments, the regardless of which methodology is a lower rate of return to Lehman than Plan may request a Transaction utilized. less liquid U.S. Government agency Reduction under the CGIC, as well as 13. If Lehman fails to repurchase the securities. Accordingly, a CGIC’s withdrawals from other investment Purchased Securities upon the maturity interest rate with the former as providers, using a methodology agreed date of the CGIC or fails to maintain the Purchased Securities will be lower than upon in the Master Agreement or the Margin Value in accordance with the with the latter as Purchased Securities. Confirmation. Such a benefit responsive Custody Agreement, a Plan will have Alternatively, a higher interest rate may Transaction Reduction would be the right under the Master Agreement (i) be obtained from a CGIC if a Plan selects effected without penalty upon two days’ to sell any or all of the Purchased Purchased Securities that offer lower written notice to Lehman (or such other Securities and to apply the proceeds to credit quality and/or increased pricing period that is otherwise agreed to by a the aggregate unpaid purchase price and volatility, such as AAA private label Plan and Lehman). At any time, any other amounts owing by Lehman or mortgage-backed securities, AA however, Lehman may demand (ii) to take possession of the Purchased corporate bonds or asset-backed reasonable proof, including written Securities and credit the market value of securities (e.g., automobile receivables), documentation to verify or establish the the Purchased Securities (as determined because such securities would generate need for such a benefit responsive by a generally recognized source or by a higher return to Lehman. In any case, Transaction Reduction. the most recent closing bid quotation however, a Plan will not be at risk for A Plan may effect a whole or partial from such a source) against the either credit or market value exposure of Transaction Reduction at any time and aggregate unpaid CGIC purchase price the Purchased Securities, and the for any purpose, other than a benefit and any other amounts owing by interest on a CGIC will not vary with the responsive payment, upon ten days’ Lehman. After an event of default, any investment performance of the written notice to Lehman (or such other income on the Purchased Securities will Purchased Securities. period that is agreed to by a Plan and be retained by the Plan and applied to 11. Accrued interest will be paid or Lehman). On the date of such notice, the aggregate unpaid CGIC purchase compounded monthly, quarterly, semi- Lehman, as calculation agent, would price. In addition, in the case of such a annually, annually or compounded determine the market value adjustment default by Lehman, Lehman will be until maturity, in accordance with the (Termination Cost), if any, applicable to obligated to pay the amount of any Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44089 obligations to, and the expenses of, a at the time Lehman issues a financial condition at the time Lehman Plan that are not otherwise covered by confirmation to the Plan. In addition, issues a Confirmation to the Plan, and the Purchased Securities, including all Lehman is under a continuing Lehman will be under a continuing reasonable legal or other expenses obligation to provide audited and obligation to provide audited and incurred by the Plan in connection with, unaudited statements of its financial unaudited statements of financial or as a consequence of, such default, condition as issued. condition as issued; (c) upon the together with interest thereon at a rate (d) PTE 81–8 requires a written purchase of a CGIC by a Plan, Lehman equal to the CGIC interest rate. repurchase agreement the terms of will transfer to a tri-party custodial 14. A CGIC will terminate (Final which would satisfy an ‘‘arm’s-length’’ account, under the exclusive direction Repurchase Date) upon the earlier of (i) standard. The use of master agreements of a plan’s trustees, securities selected the maturity date of the CGIC, (ii) the covering a series of transactions is by the Plan with a market value equal date on which a Transaction Reduction expressly approved. Under the to at least 102% of the CGIC’s purchase causes a return to a Plan of the CGIC’s exemption proposed herein, the Master price; (d) the Purchased Securities will remaining principal and interest, or (iii) Agreement, the Confirmation, and the be marked to market on a daily basis, the date on which Lehman terminates a Custody Agreement will be in written and Lehman will be required to CGIC as a result of its determination that form. The terms of the CGIC, as reflected maintain the market value of the a modification to the Plan’s operative in Confirmation, are subject to Purchased Securities at the agreed-upon documents or the Plan’s administration negotiation, based on the needs of a level of at least 102% of the CGIC’s (a Plan Amendment) would materially Plan as determined by its independent purchase price; (e) a Plan will receive reduce Lehman’s expected benefits or fiduciary in arm’s-length negotiations daily reports describing the securities increase its exposure or obligations with Lehman. on deposit in the custodial account and under the CGIC.5 On the Final (e) PTE 81–8 requires that the interest their market value, as well as monthly Repurchase Date, Lehman will pay the paid to a Plan must be no less than it reports describing all activity with applicable repurchase price of the CGIC would receive in a comparable respect to the CGIC, including accrued (and any accrued but unpaid interest) to transaction with an unrelated party. interest; (f) interest will be paid on a the Plan, and the Purchased Securities Under the exemption proposed herein, CGIC at intervals determined by the remaining in the custodial account will the Plan will receive interest at a rate Plan; (g) a Plan will have full recourse be returned to Lehman. agreed upon by the Plan and Lehman against Lehman and the purchased 15. The applicant represents that the based upon the economic characteristics Securities for all obligations and terms and conditions of the CGIC are of the transaction. expenses owed to it by Lehman; (h) (f) PTE 81–8 requires that the essentially the same as the conditions Lehman will be responsible for all legal collateral be marked to market on a imposed by the Department in fees and expenses associated with any daily basis to maintain a 100% market Prohibited Transaction Exemption 81–8 failure to fulfill its obligations under a value level. The exemption proposed (PTE 81- 8, 46 FR 7511, January 23, CGIC; (i) a Plan will have an unqualified herein similarly requires that the 1981, as amended at 50 FR 14043, April right to the return of its principal and Purchased Securities be marked to 9, 1985), other than the condition that accrued interest no later than the market on a daily basis to maintain at the term of a repurchase agreement be conclusion of the stated term of the least a 102% Margin Value. CGIC; (j) if a Plan requires a termination limited to one year or less: (g) PTE 81–8 requires that the seller (a) PTE 81–8 does not provide relief of a CGIC prior to maturity to pay must transfer an amount equal to the benefit responsive payments, no market for fiduciaries of a plan. The exemption purchase price of the securities plus proposed herein does not provide relief value adjustment will be imposed on interest to a Plan upon the expiration of such an early termination; and (k) the when Lehman is a fiduciary to a Plan a repurchase agreement. Under the with respect to the investment of Plan CGICs will be marketed only to Plans exemption proposed herein, a Plan will with assets having an aggregate market assets in a CGIC. have an unqualified right to the return (b) PTE 81–8 requires that the seller value of least $50 million. of its principal and accrued interest no transfer to a Plan securities (or banker’s FOR FURTHER INFORMATION CONTACT: Gary later than the conclusion of the stated acceptances, commercial paper or H. Lefkowitz of the Department, term of the CGIC. certificates of deposit) with a market telephone (202) 219–8881. (This is not (h) PTE 81–8 requires that a Plan must a toll-free number.) value of at least 100% of the purchase have certain rights in event of a seller’s price paid by the Plan. The exemption default. The exemption proposed herein Rexam Retirement Savings Plan (the proposed herein requires that Lehman provides that a Plan has full recourse Plan) Located in Charlotte, North transfer to a custodial account, under against Lehman and the Purchased Carolina the exclusive direction of a Plan’s Securities for all obligations and [Application No. D–10294] trustees, Purchased Securities with a expenses owed to it by Lehman. In market value of at least 102% of the addition, Lehman would be responsible Proposed Exemption CGIC’s purchase price. for all legal fees and expenses associated The Department is considering (c) PTE 81–8 requires that a Plan must with any such failure to fulfill its granting an exemption under the receive certain audited and unaudited obligations under a CGIC. authority of section 408(a) of the Act statements of the seller’s financial 16. In summary, the applicant and section 4975(c)(2) of the Code and condition, as well as a representation represents that the proposed transaction in accordance with the procedures set regarding changed financial condition. will satisfy the criteria contained in forth in 29 CFR Part 2570, Subpart B (55 The exemption proposed herein section 408(a) of the Act for the FR 32836, 32847, August 10, 1990). If requires Lehman to provide the same following reasons: (a) the decision to the exemption is granted, the information and representation to a Plan purchase a CGIC will be made by a restrictions of sections 406(a) and 406 fiduciary of a Plan who is independent (b)(1) and (b)(2) of the Act and the 5 Lehman represents that in the unlikely event of a Plan Amendment, the Master Agreement provides of Lehman; (b) Lehman will provide the sanctions resulting from the application that such a termination would be subject to a independent Plan fiduciary with of section 4975 of the Code, by reason market value adjustment, if any. audited and unaudited statements of its of section 4975(c)(1)(A) through (E) of 44090 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices the Code shall not apply to the loan of for its participants and is intended to on October 25, 1990.6 Under the terms $1,620,246.56 (the Loan) to the Plan satisfy the qualification requirements of of the GIC the maturity date is from Rexam, Inc. (the Employer) with sections 401(a) and 401(k) of the Code. September 28, 1995, and the interest respect to the Guaranteed Investment The total assets of the Plan had a fair yield is guaranteed at 9.25 percent Contract No. 62317 (the GIC) issued by market value of $74,767,875.86, as of compounded annually with both Confederation Life Insurance Company March 31, 1996. There are currently interest and principal to be paid on (Confederation) and the Plan’s potential approximately 5,800 participants in the September 29, 1995. The applicant repayment of the Loan upon the receipt Plan. represents that no additional deposits or by the Plan of payments under the GIC; withdrawals of the principal have been The applicant represents that the Plan provided the following conditions are made. satisfied: is administered by an investment On August 12, 1994, the Ingham (A) All terms and conditions of the committee (the Committee) which is County Circuit Court in Lansing, transactions are no less favorable to the appointed by the Employer. The Michigan placed Confederation in Plan than those that the Plan could Committee consists of the Employer’s conservatorship and rehabilitation, obtain in arm’s-length transactions with Chief Executive Officer, Chief Financial causing Confederation to suspend all unrelated parties; Officer, Corporate Treasurer, and Vice payments on its contracts, including the (B) No interest payments or other President—Human Resources. The GIC. The Employer represents that it expenses are paid by the Plan in applicant represents that the Committee does not know whether, when, or under connection with the Loan and its selects for the Plan the different types of what circumstances Confederation will repayment; investment funds or vehicles that are be able to pay the principal and interest (C) The Loan will be repaid only from maintained by the Plan trustee and that is due under the GIC. proceeds paid to the Plan by offered to participants for self-directing 4. In order to eliminate the expenses Confederation, its successors, or by any investments of assets in their respective and risks associated with the continued other third-party; individual accounts in the Plan. The investment of participant’s respective (D) Repayment of the Loan will be Committee also reviews the accounts in the GIC, and to permit waived to the extent that the Loan performance of the Plan trustee which participant’s accounts so invested to exceeds the proceeds from the GIC; has discretion for selecting the various direct equivalent amounts invested in (E) If total proceeds received by the specific securities of the different the GIC into the investment options Plan with respect to the GIC exceed the investment funds or vehicles offered to offered by Vanguard, the Employer amount of the Loan, the excess will be the Plan. The Charlotte, North Carolina made the Loan on June 25, 1996, as a credited to the respective accounts of office of Towers Perrin is represented by one-time, unsecured, and interest free the participants in proportion to the the applicant to have been the previous loan. No expenses or commissions were relative investment of each account in recordkeeper for the Plan. incurred, or are to be incurred, by the the GIC on June 25, 1996; and Plan from the transactions. (F) A qualified, independent fiduciary After reviewing various investment The Loan was computed to equal the represented the Plan at the execution of funds available for tax-qualified plans, $1 million principal amount of the GIC the Loan and will continue to represent the applicant represents that it amended and the 9.25 contract rate compounded the interests of the Plan throughout the the Plan, effective July 1, 1996, in order annually through the maturity date of duration and repayment of the Loan. to enhance the investment options September 28, 1995, plus an additional EFFECTIVE DATE: If the proposed available to Plan participants. The new yield of 5.5 percent compounded for the exemption is granted, the exemption investment options or funds consist of period after September 28, 1995, will be effective as of June 25, 1996. six mutual funds managed by the through June 25, 1996.7 Vanguard Group of Investment The terms of the Loan also provide Summary of Facts and Representations Companies. After the execution of the that repayment to the Employer is to be 1. The Employer, a Delaware Loan on June 25, 1996, a transfer of made by the Plan solely from the corporation with its principal office assets of the Plan, other than the GIC proceeds received from the GIC. located in Charlotte, North Carolina, is issued by Confederation, was made from As provided by the Loan, if the a wholly-owned subsidiary of Rexam Wachovia Bank of North Carolina, N.A., proceeds received by Wachovia, as plc, a publicly traded holding company located in Winston-Salem, North trustee for the Plan, from the GIC are based in London, England. The Carolina (Wachovia) to the new trustee less than the amount of the Loan, Employer is primarily in the business of of the Plan, Vanguard Fiduciary Trust Wachovia will ensure the remaining manufacturing and marketing specialty Company, located in Valley Forge, outstanding balance owed by the Plan packaging and coated products. The Pennsylvania (Vanguard), an affiliate of on the Loan will be waived by the specialty packaging includes (A) The Vanguard Group of Investment Employer. In addition, Wachovia will healthcare packaging such as Companies. At the time of the transfer, enforce the terms of the Loan which pharmaceutical blister foil packaging Vanguard also assumed from Towers provide, inter alia, that if the proceeds and sterilizable packaging for medical Perrin the function of recordkeeper for from the GIC exceed the amount of the instruments and surgical gloves, (B) the new assets of the Plan. Loan, the excess will be shared by the cosmetic packaging that includes Wachovia continues as trustee for the respective accounts of the participants perfume atomizers and lipstick tubes Plan with respect to the GIC issued by 6 The Department notes that decisions to acquire and cases, and (C) plastic bottles and Confederation until the final settlement containers and child-resistant screw and hold the GIC are governed by the fiduciary of the GIC and the repayment of the responsibility provisions of Part 4 Title I of the Act. tops. The coated products by the Loan and will represent and enforce the In this regard the Department is not proposing relief Employer include graphic printed interests of the Plan and its participants. for any violations of Part 4 which may have arisen cartons and containers and metallized as a result of the acquisition and holding of the GIC. films and papers that are used for labels 3. The GIC was acquired by the Plan 7 The 5.5 percent rate of return was selected and food and cigarette package liners. effective September 27, 1990, from because of the short period of time involved and Confederation pursuant to the Plan because the rate was comparable to the short-term 2. The Plan is a defined contribution investment fund yield offered by the Plan to the plan that maintains individual accounts tendering $1 million to Confederation participants through Wachovia. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44091 in proportion to the amounts the prudent fashion in accordance with period to dispose of records lacking respective accounts were invested in the section 404(a)(1)(b) of the act; nor does administrative, legal, research, or other GIC on June 25, 1996. The applicant it affect the requirement of section value. Notice is published for records further represents that the transactions 401(a) of the Code that the plan must schedules that (1) propose the are administratively feasible because of operate for the exclusive benefit of the destruction of records not previously the documentation of the Loan and its employees of the employer maintaining authorized for disposal, or (2) reduce repayment terms can be monitored. the plan and their beneficiaries; the retention period for records already Also, the applicant represents that the (2) Before an exemption may be authorized for disposal. NARA invites transactions are in the best interests of granted under section 408(a) of the Act public comments on such schedules, as the Plan and its participants and and/or section 4975(c)(2) of the Code, required by 44 U.S.C. 3303a(a). beneficiaries because they enable the the Department must find that the DATES: Request for copies must be Plan to avoid having a portion of the exemption is administratively feasible, received in writing on or before October participants accounts invested in an in the interests of the plan and of its 11, 1996. Once the appraisal of the illiquid asset that has significant participants and beneficiaries and records is completed, NARA will send investment risk. Further, the protective of the rights of participants a copy of the schedule. The requester transactions are represented by the and beneficiaries of the plan; will be given 30 days to submit applicant to serve the interests of the (3) The proposed exemptions, if comments. participants and beneficiaries by granted, will be supplemental to, and ADDRESSES: Address requests for single permitting the participants to direct the not in derogation of, any other copies of schedules identified in this entire value of their respective accounts provisions of the Act and/or the Code, notice to the Records Appraisal and into the investment options offered by including statutory or administrative Disposition Division (NIR), National Vanguard. exemptions and transitional rules. Archives and Records Administration, 5. In summary, the applicant Furthermore, the fact that a transaction College Park, MD 20740. Requesters represents that the transactions will is subject to an administrative or must cite the control number assigned satisfy the criteria for an exemption statutory exemption is not dispositive of to each schedule when requesting a under section 408(a) of the Act because whether the transaction is in fact a (a) the transactions will preserve the copy. The control number appears in prohibited transaction; and the parentheses immediately after the ability of the Plan to timely fund and (4) The proposed exemptions, if name of the requesting agency. preserve benefits for the participants granted, will be subject to the express and their beneficiaries; (b) the Plan will condition that the material facts and SUPPLEMENTARY INFORMATION: Each year not incur any expenses or commissions representations contained in each U.S. Government agencies create with respect to the transactions; (c) application are true and complete, and billions of records on paper, film repayment of the Loan will be made that each application accurately magnetic tape, and other media. In order only from the proceeds realized from describes all material terms of the to control this accumulation, agency the GIC; (d) if the proceeds realized transaction which is the subject of the records managers prepare records from the GIC as paid by Confederation, exemption. schedules specifying when the agency its successors, or any other third party no longer needs the records and what Signed at Washington, DC, this 22nd day happens to the records after this period. are not sufficient to repay the Loan the of August, 1996. Employer will waive the unpaid balance Some schedules are comprehensive and Ivan Strasfeld, of the Loan; and (e) if the proceeds from cover all the records of an agency or one the GIC exceed the Loan, the excess will Director of Exemption Determinations, of its major subdivisions. These Pension and Welfare Benefits Administration, comprehensive schedules provide for be paid to the accounts of the U.S. Department of Labor. participants in proportion to their the eventual transfer to the National [FR Doc. 96–21839 Filed 8–26–96; 8:45 am] respective accounts investment in the Archives of historically valuable records GIC. BILLING CODE 4510±29±P and authorize the disposal of all other FOR FURTHER INFORMATION CONTACT: Mr. records. Most schedules, however, cover C. E. Beaver of the Department, records of only one office or program or NATIONAL ARCHIVES AND RECORDS telephone (202) 219–8881. (This is not a few series of records, and many are ADMINISTRATION a toll-free number.) updates of previously approved schedules. Such schedules also may Records Schedules; Availability and General Information include records that are designated for Request for Comments The attention of interested persons is permanent retention. directed to the following: AGENCY: Office of Records Destruction of records requires the (1) The fact that a transaction is the Administration, National Archives and approval of the Archivist of the United subject of an exemption under section Records Administration. States. This approval is granted after a 408(a) of the Act and/or section ACTION: Notice of availability of thorough study of the records that takes 4975(c)(2) of the Code does not relieve proposed records schedules; request for into account their administrative use by a fiduciary or other party in interest of comments. the agency of origin, the rights of the disqualified person from certain other Government and of private persons provisions of the Act and/or the Code, SUMMARY: The National Archives and directly affected by the Government’s including any prohibited transaction Records Administration (NARA) activities, and historical or other value. provisions to which the exemption does publishes notice at least once monthly This public notice identifies the not apply and the general fiduciary of certain Federal agency requests for Federal agencies and their subdivisions responsibility provisions of section 404 records disposition authority (records requesting disposition authority, of the Act, which among other things schedules). Records schedules identify includes the control number assigned to require a fiduciary to discharge his records of sufficient value to warrant each schedule, and briefly describes the duties respecting the plan solely in the preservation in the National Archives of records proposed for disposal. The interest of the participants and the United States. Schedules also records schedule contains additional beneficiaries of the plan and in a authorize agencies after a specified information about the records and their 44092 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices disposition. Further information about Environmental Impact Statement (EIS) individuals and groups take this the disposition process will be is considered to be the appropriate opportunity to identify environmental furnished to each requester. environmental document for this project concerns that should be addressed and it is expected that completion of an during the preparation of the Draft EIS. Schedules Pending EIS will discharge all obligations under In the interest of available time, each 1. Department of the Air Force (N1– Federal environmental laws. The speaker will be asked to limit oral AFU–96–6). Reports relating to comments and responses received on comments to five (5) minutes. A personnel support for contingency the scope of the alternatives and Document summarizing the written and operations. potential impacts, as a result of this oral comments received will be 2. Department of Justice (N1–60–95– NOI, will be considered for the prepared. 2). Subject and reference files, 1991–92, environmental document. An Informational Packet will be of the Assistant Attorney General for The proposed convention center available for review at the offices of the Policy Development. would include approximately 2 million National Capital Planning Commission 3. Department of Justice, Immigration gross square feet and would be located at 801 Pennsylvania Avenue, N.W., and and Naturalization Service (N1–85–96– in central Washington, D.C. The at Martin Luther King, Jr. Public Library 7). Reduction in the retention period for proposed convention center is (9th & G Streets, N.W.), or upon request. Form I–775, Visa Waiver Program scheduled to be completed in December Agencies and the general public are Agreement. 1999. invited and are encouraged to provide 4. Securities and Exchange The Environmental Impact Statement written comments on the scoping issues Commission (N1–266–96–1). (EIS) will identify and analyze impacts in addition to, or in lieu of, oral Comprehensive schedule for Office of and mitigation options of the alternative comments at the public meeting. To be International Affairs. actions under consideration. At present most helpful, environmental review/ Dated: August 16, 1996. those alternatives may include: (1) scoping comments should clearly James W. Moore, Construction and operation of a new describe specific issues or topics which Assistant Archivist for Records convention center at the Mount Vernon the community believes the EIS should Administration. Square site (bounded by K, 7th, 9th, and address. N Streets, NW.); (2) construction and [FR Doc. 96–21768 Filed 8–26–96; 8:45 am] DATES: All written statements regarding operation of a new convention center at BILLING CODE 7515±01±M environmental review of the proposed the Northeast No. 1 site (generally, arena must be postmarked no later than between First Street, NE. and the September 27, 1996 to the address railroad track); and (3) a No Action NATIONAL CAPITAL PLANNING below: Alternative, which would result in a no COMMISSION National Capital Planning new construction. Topics for Commission, 801 Pennsylvania Avenue, environmental analysis include short- Proposed Construction and Operation NW., Suite 301, Washington, D.C. term construction-related impacts, long- of a Convention Center in Washington, 20576, Attention: Mr. Maurice Foushee, term changes in traffic, parking, socio- D.C.; Public Meeting and Intent to Community Planner economic impacts, land use and Prepare an Environmental Impact FOR FURTHER INFORMATION PLEASE Statement physical/biologic conditions within the project area; cultural (historic and CONTACT: National Capital Planning SUMMARY: Pursuant to Section 102 (2)(C) archeological) and visual resource Commission, 801 Pennsylvania Avenue, of the National Environmental Policy protection; and site operations and NW., Suite 301, Washington, D.C. Act (NEPA) of 1969, as implemented by maintenance. 20576, Phone: (202) 482–7200. the Council on Environmental Quality Sandra H. Shapiro, (40 CFR Parts 1500–1508), Section 106 SUPPLEMENTARY INFORMATION: The General Counsel, National Capital Planning of the National Historic Preservation Act environmental review/scoping process Commission. of 1966, as amended, and in accordance will include all written comments and [FR Doc. 96–21806 Filed 8–26–96; 8:45 a.m.] with the Environmental Policies and one (1) public meeting for the purpose BILLING CODE 7502±02±M Procedures implemented by the of determining significant issues related National Capital Planning Commission to the alternatives and to the potential (Commission), the Commission and the impacts associated with the proposed NATIONAL SCIENCE FOUNDATION District of Columbia Government construction and operation of the announce their intent to conduct one (1) Convention Center. The public meeting Special Emphasis Panel in Materials public meeting to discuss a new will be held: Research; Notice of Meeting Convention Center in Washington, D.C. Wednesday, September 25, 1996 at The purpose of the public meeting is to 7:00 P.M. at 900 9th Street, NW, the D.C. In accordance with the Federal determine the significant issues related Convention Center/Rooms 30 and 31. Advisory Committee Act (Pub. L. 92– to the construction and operation of the This public meeting will be 463 as amended), the National Science convention center. The meeting will advertised in local and regional Foundation announces the following serve as part of the formal newspapers. Adequate signs will be meeting: environmental review/scoping process posted to direct meeting participants. A Name: Special Emphasis Panel in Materials for the preparation of the environmental short formal presentation will precede Research #1203 document that is required for this the request for public comments. Dates and Times: 9–10–96, 5:00 pm-9:00 project. National Capital Planning Commission pm, and 9–11–96; 8:00 am-5:00 pm This Notice of Intent (NOI) initiates and District of Columbia representatives Type of Meeting: Closed Contact Person: Dr. W. Lance Haworth, the formal environmental review/ will be available at this meeting to Coordinating Program Director, Materials scoping process for this project and the receive comments from the public Research Science and Engineering Centers, public is encouraged to submit written regarding issues of concern. It is Division of Materials Research, Room 1065 comments on the alternatives and on the important that Federal, regional and NSF, 4201 Wilson Blvd. Arlington, VA 22230 impacts of this time. A comprehensive local agencies, and interested Telephone (703) 306–1815 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44093

Purpose of Meeting: To provide advice and issued Amendment 8 to Materials For the Nuclear Regulatory Commission. recommendations concerning support for the License No. SNM–2501 held by Virginia William D. Travers, Materials Research Science and Engineering Electric and Power Company (VA Director, Spent Fuel Project Office, Office of Centers, Purdue University. Nuclear Material Safety and Safeguards. Agenda: Presentation and evaluation of Power) for the receipt, possession, progress transfer, and storage of spent fuel at the [FR Doc. 96–21812 Filed 8–26–96; 8:45 am] Reason for Closing: The proposal being Surry ISFSI, located in Surry County, BILLING CODE 7590±01±P reviewed includes information of a Virginia. The amendment is effective as proprietary or confidential nature, including of the date of issuance. technical information, financial data such as Sunshine Act Meeting salaries, and personal information By application dated October 16, concerning individuals associated with the 1995, VA Power requested to amend its AGENCY HOLDING THE MEETING: Nuclear proposal. These matters are exempt under 5 ISFSI license to (1) Revise references to Regulatory Commission. U.S.C. 552b.(c) (4) and (6) of the Government the physical security plan, and (2) DATE: Weeks of August 26, September 2, in the Sunshine Act. permanently exempt it from the 9, and 16, 1996. Dated: August 22, 1996. submittal date specified in 10 CFR PLACE: Commissioners’ Conference M. Rebecca Winkler, 72.44(d)(3) for the required annual Room, 11555 Rockville Pike, Rockville, Committee Management Officer. radioactive effluent release report. The Maryland. [FR Doc. 96–21781 Filed 8–26–96; 8:45 am] Commission has chosen not to grant the STATUS: Public and Closed. BILLING CODE 7555±05±M exemption. However, the license has MATTERS TO BE CONSIDERED: been revised to delete the requirement of submitting a second, semi-annual Week of August 26—Tentative NATIONAL TRANSPORTATION radioactive effluent release report that is Monday, August 26 SAFETY BOARD not required by 10 CFR Part 72. 2:00 p.m. Meeting with Chairman of Nuclear Safety Sunshine Act Meeting This amendment complies with the standards and requirements of the Research Review Committee (NSRRC) (Public Meeting) National Transportation Safety Board Atomic Energy Act of 1954, as amended (Contact: Jose Cortez, 301–415–6596) (the Act), and the Commission’s rules TIME AND DATE: 9:30 a.m., Wednesday, and regulations. The Commission has Tuesday, August 27 September 4, 1996. made appropriate findings as required 9:30 a.m. PLACE: The Board Room, 5th Floor, 490 by the Act and the Commission’s rules Briefing on Design Certification Issues L’Enfant Plaza, S.W., Washington, D.C. (Public Meeting) and regulations in 10 CFR Chapter I, 20594. (Contact: Jerry Wilson, 301–415–3145) which are set forth in the license STATUS: Open. 2:00 p.m. amendment. Briefing on Annealing Demonstration MATTERS TO BE CONSIDERED: 6582A Project (Public Meeting) Railroad Accident Report: Collision In accordance with 10 CFR 72.46(b)(2), a determination has been (Contact: Michael Mayfield, 301–415– Involving Two New York City Transit 6690) Subway Trains on the Williamsburg made that the amendment does not Wednesday, August 28 Bridge in Brooklyn, New York, June 5, present a genuine issue as to whether 1995. public health and safety will be 10:00 a.m. 6734 Pipeline Special Investigation significantly affected. Therefore, the Briefing on Certification of USEC (Public Report: Evaluation of Pipeline Failures publication of a notice of proposed Meeting) (Contact: John Hickey, 301–415–7192) During Flooding and of Spill Response action and an opportunity for hearing or 11:30 a.m. Actions, San Jacinto River near a notice of hearing is not warranted. Affirmation Session (Public Meeting) (if Houston, Texas, October 1994. Notice is hereby given of the right of needed) News Media Contact: Telephone: interested persons to request a hearing Week of September 2—Tentative (202) 382–0660 on whether the action should be FOR MORE INFORMATION CONTACT: Bea rescinded or modified. Wednesday, September 4 Hardesty (202) 382–6525. The Commission has determined that 9:30 a.m. Briefing by DOE on Status of HLW Program Dated: August 23, 1996. the issuance of the amendment will not (Public Meeting) Bea Hardesty, result in any significant environmental Federal Register Liaison Officer. impact and that, pursuant to 10 CFR Thursday, September 5 [FR Doc. 96–21914 Filed 8–23–96; 10:22 am] 51.22(c) (10) and (12), an environmental 3:00 p.m. Briefing by Executive Branch (CLOSED— BILLING CODE 7533±01±P assessment need not be prepared in connection with issuance of the Ex. 1) amendment. Week of September 9—Tentative NUCLEAR REGULATORY Documents related to this action are There are no meetings scheduled for the COMMISSION available for public inspection at the Week of September 9. [Docket No. 72±2 (50±280/281)] Commission’s Public Document Room Week of September 16—Tentative located at the Gelman Building, 2120 L There are no meetings scheduled for the Notice of Issuance of Amendment to Street, NW., Washington, DC 20555, and Week of September 16. Materials License SNM±2501, Virginia at the Local Public Document Room at The schedule for Commission Electric and Power Company, Surry the Swem Library, the College of meetings is subject to change on short Independent Spent Fuel Storage William and Mary, Williamsburg, VA notice. To verify the status of meetings Installation 23185. call (Recording)—(301) 415–1292. The U.S. Nuclear Regulatory Dated at Rockville, Maryland, this 20th day CONTACT PERSON FOR MORE INFORMATION: Commission (the Commission) has of August 1996. Bill Hill (301) 415–1661. 44094 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

The NRC Commission Meeting Schedule (‘‘Commission’’) has submitted to the APPLICANTS: The One Group (the can be found on the Internet at: http:// Office of Management and Budget ‘‘Trust’’), Banc One Investment Advisors www.nrc.gov/SECY/smj/schedule.htm. requests for approval of extension on Corporation (the ‘‘Adviser’’), The One This notice is distributed by mail to several previously approved collections of Group Services Company (the hundred subscribers; if you no longer wish information. The Commission is seeking to receive it, or would like to be added to it, ‘‘Distributor’’), BISYS Fund Services please contact the Office of the Secretary, approval to execute a mutual fund Limited Partnership, BNY Hamilton Attn: Operations Branch, Washington, D.C. telephone survey, a mall intercept Distributors, Inc., Concord Financial 20555 (301–415–1963). survey, and a mutual mail survey. These Group, Inc., Emerald Asset In addition, distribution of this meeting surveys will attempt to assess the Management, Inc., Pilot Funds notice over the internet system is available. public’s understanding of mutual funds Distributors, Inc., 231 Broker-Dealer If you are interested in receiving this and other financial matters. The results Services, Inc., UST Distributors, Inc., Commission meeting schedule electronically, will enable the Commission to better Victory Broker/Dealer Services, Inc., please send an electronic message to understand the level of investor Vista Fund Distributors, Inc., Branch [email protected] or [email protected]. comprehension of mutual fund Banking and Trust Company, First Dated: August 23, 1996. prospectuses and financial issues. Chicago Investment Management William M. Hill, Jr., The mutual fund telephone survey is Company, and NBD Bank. SECY Tracking Officer, Office of the estimated to require 750 burden hours. RELEVANT ACT SECTIONS: Order requested Secretary. Approximately 3,000 people will under section 6(c) of the Act from participate in the telephone survey, [FR Doc. 96–21989 Filed 8–23–96; 2:01 pm] section 12(d)(1) of the Act, and under with each interview lasting 15 minutes. BILLING CODE 7590±01±M sections 6(c) and 17(b) of the Act from The mall intercept survey is estimated to require 33 burden hours. section 17(a) of the Act. Approximately 100 people will SUMMARY OF APPLICATION: The order POSTAL SERVICE participate in the survey, with each would permit certain portfolios of the Trust (the ‘‘Portfolios’’) to operate as Information Based Indicia Program interview lasting 20 minutes. ‘‘funds of funds’’ by investing (IBIP) The mutual fund mail survey is estimated to require 333 burden hours. substantially all of their assets in other AGENCY: Postal Service. Approximately 1,000 people will portfolios (the ‘‘Underlying Portfolios’’) ACTION: Announcement of Public participate in the survey, with the of the Trust. The order also would allow Meeting on IBIP. interview lasting 20 minutes. other groups of investment companies General comments regarding the that are distributed by the Distributor SUMMARY: The Postal Service will be estimated burden hours should be (the ‘‘Distributor Funds’’) to operate a hosting another public meeting in directed to the Desk Officer for the ‘‘fund of funds’’ arrangement within conjunction with IBIP. The meeting will Securities and Exchange Commission at their respective fund complexes be on Policy Issues regarding IBIP. It the address below. Any comments (‘‘Distributor Funds of Funds’’), will be held Wednesday, September 25, concerning the accuracy of the whereby the Distributor Funds of Funds 1996, at the Crystal Gateway Marriott, estimated average burden hours for will invest in shares of underlying 1700 Jefferson Davis Highway, compliance with Commission rules and Distributor Funds (the ‘‘Underlying Arlington, VA 22202–3555. forms should be directed to Michael E. Distributor Funds’’). DATES: Reservations for this meeting Bartell, Associate Executive Director, FILING DATES: The application was filed may be made until September 19, 1996, Office of Information Technology, on May 3, 1996 and was amended on by calling Terry Goss at 202–268–3757 Securities and Exchange Commission, August 16, 1996. 450 Fifth Street, N.W., Washington, D.C. or Gloria Valcin at 202–268–5586. HEARING OR NOTIFICATION OF HEARING: An 20549 and Desk Officer for the Stanley F. Mires, order granting the application will be Securities and Exchange Commission, issued unless the SEC orders a hearing. Chief Counsel, Legislative. Office of Information and Regulatory Interested persons may request a [FR Doc. 96–21554 Filed 8–26–96; 8:45 am] Affairs, Office of Management and hearing by writing to the SEC’s BILLING CODE 7710±12±M Budget, Room 3208, New Executive Office Building, Washington, D.C. Secretary and serving applicants with a 20503. copy of the request, personally or by mail. Hearing requests should be SECURITIES AND EXCHANGE Dated: August 19, 1996. received by the SEC by 5:30 p.m. on COMMISSION Margaret H. McFarland, September 16, 1996, and should be Submission for OMB Review; Deputy Secretary. accompanied by proof of service on Comment Request [FR Doc. 96–21756 Filed 8–26–96; 8:45 am] applicants, in the form of an affidavit, BILLING CODE 8010±01±M or, for lawyers, a certificate of service. Upon Written Request, Copies Available Hearing requests should state the nature From: Securities and Exchange Commission, of the writer’s interest, the reason for the Office of Filings and Information Services, [Investment Company Act Release No. 22153; 812±10122] request, and the issues contested. Washington, DC 20549. Persons may request notification of a Extension: Mutual Fund Telephone Survey—SEC File No. 270–395, OMB Control The One Group, et al.; Notice of hearing by writing to the SEC’s No. 3235–0448; Mall Intercept Survey—SEC Application Secretary. File No. 270–393, OMB Control No. 3235– ADDRESSES: Secretary, SEC, 450 Fifth 0450; Mutual Fund Mail Survey—SEC File August 20, 1996. Street, N.W., Washington, D.C. 20549. AGENCY: No. 270–395, OMB Control No. 3235–0451. Securities and Exchange Applicants, 774 Park Meadow Drive, Commission (‘‘SEC’’). Notice is hereby given that pursuant Westerville, Ohio 43081. ACTION: Notice of Application for an to the Paperwork Reduction Act of 1995 FOR FURTHER INFORMATION CONTACT: Order under the Investment Company (44 U.S.C. 3501 et seq.), the Securities Deepak T. Pai, Staff Attorney, at (202) Act of 1940 (the ‘‘Act’’). and Exchange Commission 942–0574, or Robert A. Robertson, Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44095

Branch Chief, at (202) 942–0564 the overall management of the following asset classes: cash; fixed (Division of Investment Management, Portfolios’ investment affairs and also income; domestic equity; and Office of Investment Company serves as investment adviser to the international equity. The Portfolios will Regulation). Underlying Portfolios. The Adviser may be designed for long-term investors, SUPPLEMENTARY INFORMATION: The charge the Portfolios, and will charge including tax-deferred retirement plan following is a summary of the the Underlying Portfolios, investment participants. The Portfolios will provide application. The complete application advisory fees. In certain cases the an efficient and simple method of may be obtained for a fee from the SEC’s Underlying Portfolios have one or more allowing investors to structure a Public Reference Branch. sub-advisers. The Adviser pays the sub- comprehensive asset allocation advisers out of the advisory fees paid by program. In addition, each Distributor Applicants’ Representations the Underlying Portfolios. Fund of Funds would invest in shares 1. The Trust is registered as an open- 4. The Distributor is a broker-dealer of Underlying Distributor Funds that are end management investment company registered under the Securities part of the same ‘‘group of investment under the Act. The Trust is comprised Exchange Act of 1934 (‘‘1934 Act’’) and companies’’ as the Distributor Funds of of separate investment portfolios, each is a member of the National Association Funds. The structure, investment of which will pursue a distinct set of of Securities Dealers, Inc. (‘‘NASD’’). allocations, expenses and purpose of investment objectives and policies.1 The The Distributor serves as the Portfolios’ each Distributor Fund of Funds would Portfolios will initially consist of the principal underwriter/distributor and be similar to those of the Portfolios. following eight separately managed administrator. Each Controlled portfolios: The One Group Aggressive Distributor is, or, in the case of Applicants’ Legal Analysis Growth Fund, The One Group Growth Controlled Distributors created in the 1. Section 12(d)(1)(A) of the Act Fund, The One Group Growth and future will be a broker-dealer registered provides that no registered investment Income Fund, The One Group under the 1934 Act and a member of the company may acquire securities of Municipal Balanced Fund, The One NASD, and will serve as the principal another investment company if such Group Conservative Growth Fund, The underwriter/distributor for Distributor securities represent more than 3% of the One Group Fixed Income Fund, The Funds and may serve as the Distributor acquired company’s outstanding voting One Group Municipal Balanced Fund, Funds’ administrator. Each Controlled stock, more than 5% of the acquiring and The One Group Tax-Free Income Distributor is or will be a wholly owned company’s total assets, or if such Fund. The Underlying Portfolios are the subsidiary of The BISYS Group, Inc. securities, together with the securities of other investment portfolios of the Trust. The BISYS Group, Inc. is holding any other acquired investment 2. Applicants request that any relief company that furnishes financial or companies, represent more than 10% of granted pursuant to this application also informational services to bank the acquiring company’s total assets. apply to any open-end management proprietary investment companies and Section 12(d)(1)(B) provides that no investment company that currently or in community banks. The BISYS Group, registered open-end investment the future is part of the same ‘‘group of Inc. has no affiliation (other than company may sell its securities to investment companies’’ as defined in through the service relationships of its another investment company if the sale rule 11a–3 as the Trust (collectively, the wholly owned subsidiaries) with any 2 will cause the acquiring company to ‘‘One Group Funds’’). Applicants also investment company or its bank own more than 3% of the acquired request that any such relief apply to any sponsor. The BISYS Group, Inc. is not company’s voting stock, or if the sale other ‘‘group of investment companies’’ affiliated with Bank One Corporation or will cause more than 10% of the distributed by the Distributor with the Adviser. acquired company’s voting stock to be 5. Applicants propose a fund of funds (Distributor Funds) or any entity that owned by investment companies. controls, is controlled by, or is under arrangement where each Portfolio will 2. Section 6(c) of the Act provides that common control with the Distributor invest in shares of Underlying Portfolios the SEC may exempt persons or Fund of Funds would be substantially that are part of the same ‘‘group of transactions from any provision of the similar to those of the Portfolios. investment companies.’’ Each Portfolio 3. The Adviser is registered as an that will make investments in reliance Act if such exemption is necessary or investment adviser under the on the proposed order will invest in appropriate in the public interest and Investment Advisers Act of 1940 and is other investment companies only to the consistent with the protection of an indirect, wholly owned subsidiary of extent contemplated by the requested investors and the purposes fairly Banc One Corporation, a bank holding relief. However, each Portfolios also intended by the policy and provisions of company incorporated in the State of may invest directly in stocks, bonds, the Act. Applicants request an order Ohio.3 The Adviser is responsible for and money market investments. permitting the Portfolios to acquire Exemptive relief is not sought with shares of the Underlying Portfolios, and 1 Although certain portfolios of the One Group respect to such other investments. the Distributor Funds of Funds to Funds do not presently intend to rely on the 6. Each Portfolio initially proposes to acquire shares of the Underlying requested order, any such registered investment allocate its assets among one or more Distributor Funds, beyond the section company, or portfolio therefore, would be covered 12(d)(1) limits. by the order if it later proposed to enter into a fund Underlying Portfolios representing the of funds arrangement in accordance with the terms 3. The restrictions in section 12(d)(1) described in the application. First Chicago Investment Management Company, were intended to prevent certain abuses 2 Rule 11a–3 under the Act defines the ‘‘same and NBD Bank. Other entities which serve as perceived to be associated with the group of investment companies’’ as two or more investment advisers to investment companies for pyramiding of investment companies, companies that: (a) hold themselves out to investors which the Controlled Distributors serve as principal as related companies for purposes of investment underwriter/distributor do not presently intend to including: (a) unnecessary duplication and investor services; and (b) that have a common rely on the order. However, each such investment of costs, e.g. sales loads, advisory fees, investment adviser or principal underwriter. adviser and the investment company which it and administrative costs; (b) undue 3 The following entities serve as investment advises may rely on the order in the future if the influence by the fund holding company advisers to investment companies for which the adviser and investment company determine to Controlled Distributors serve as principal establish and operate a fund-of-funds in accordance over its underlying funds; (c) the threat underwriter/distributor and presently intend to rely with the representations and conditions in the of large scale redemptions of the on the order: Branch Banking and Trust Company, application. securities of the underlying investment 44096 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices companies; and (d) unnecessary Underlying Portfolios as well as to the sections 6(c) and 17(b) to allow the complexity. Portfolios, a redemption from one above transactions.4 4. Applicants believe that the Underlying Portfolio will simply lead to 10. Applicants believe that the proposed arrangement will not raise the the investment of the proceeds in proposed transactions meet the fee layering concerns contemplated by another Underlying Portfolio. standards of sections 6(c) and 17(b). The section 12(d)(1). Applicants contend Applicants believe that the same will be consideration paid for the sale and that the proposed arrangement will not true in the case of the Distributor Funds redemption of shares of Underlying involve the layering of advisory fees of Funds since they will invest in Portfolios and Underlying Distributor since, before approving any advisory Underlying Distributor Funds that are Funds will be based on the net asset contract under section 15(a) of the Act, part of the same ‘‘group of investment value of the Underlying Portfolios and the board of trustees of the Trust or the Underlying Distributor Funds, companies.’’ board of trustees or directors of the respectively, subject to applicable sales Distributor Fund of Funds, including a 7. Applicants believe that the charges. The proposed arrangements majority of the trustees or directors who proposed arrangement will be also will be consistent with the policies are not ‘‘interested persons,’’ as defined structured to minimize large scale as set forth in the registration statement in section 2(a)(19) of the Act, will find redemption concerns. The Portfolios of each Portfolio and Distributor Fund that the advisory fees charged under the and Distributor Funds of Funds will be of Funds. Applicants also believe that contract are based on services provided designed for intermediate and long term the proposed transactions are consistent that are in addition to, rather than investment purposes. This will reduce with the general purposes of the Act. duplicative of, services provided under the possibility of the Portfolios and Applicant’s Conditions any Underlying Portfolio or Underlying Distributor Funds of Funds from being Distributor Fund advisory contract. used as short-term investment vehicles Applicants agree that the order 5. Applicants state that the proposed and further protect the Portfoios and the granting the requested relief shall be structure will not raise the sales charge Distributor Funds of Funds and their subject to the following conditions: layering concerns underlying section 1. Each Portfolio and each Underlying respective Underlying Portfolios and the 12(d)(1). Any sales charges or service Portfolio will be part of the ‘‘same group Underlying Distributor Funds from fees relating to the shares of a Portfolio of investment companies,’’ as defined in or Distributor Fund of Funds will not unexpected large redemptions. rule 11a–3 under the Act. In addition, exceed the limits set forth in Article III, Applicants believe that the proposed each Distributor Fund of Funds and section 26 of the Rules of Fair Practice arrangement will not be unnecessarily each Underlying Distributor Fund will of the NASD when aggregated with any complex. No Underlying Portfolio or be part of the same ‘‘group of sales charges or service fees that the Underlying Distributor Fund will investment companies.’’ Portfolio or Distributor Fund of Funds acquire securities of any other 2. No Underlying Portfolio or pays relating to Underlying Portfolio or investment company in excess of the Underlying Distributor Fund will Underlying Distributor Fund shares. limits contained in section 12(d)(1)(A) acquire securities of any other The aggregate sales charges at both of the Act. investment company in excess of the levels, therefore, will not exceed the 8. Section 17(a) generally makes it limits contained in section 12(d)(1)(A) limit that otherwise lawfully could be unlawful for an affiliated person of a of the Act. charged at any single level. Applicants registered investment company to sell 3. A majority of the trustees of the expect that, overall, administrative and securities to, or purchase securities Trust and a majority of the trustees or other expenses will be reduced at both from, the company. The Portfolios and directors of each Distributor Fund of levels under the proposed arrangement the Underlying Portfolios may be Funds, will not be ‘‘interested persons,’’ and, therefore, an investment in a considered affiliated persons because as defined in section 2(a)(19) of the Act. Portfolio or Distributor Fund of Funds 4. Any sales charges or service fees they share a common adviser and to the should not be significantly more charged relating to the shares of a extent a Portfolio owns 5% of an expensive than a direct investment in an Portfolio or Distributor Fund of Funds, Underlying Portfolio or Underlying Underlying Portfolio’s shares. Similar when aggregated with any sales charges Distributor Fund. Applicants believe arguments may be made in the case of or service fees paid by the Portfolio or that all of the One Group Funds and the Distributor Funds of Funds and the Distributor Fund of Funds relating to Underlying Distributor Funds are likely Underlying Distributor Funds. An the securities of the respective to benefit from the existence of the Underlying Portfolio’s issuance of its Underlying Portfolio or Underlying Portfolios and Distributor Funds of shares to the Portfolio, and the sale by Distributor Fund, will not exceed the Funds since increased distribution and the Underlying Distributor Funds of limits set forth in Article III, section 26, the resulting increase of assets under their shares to the Distributor Funds of of the NASD’s Rules of Fair Practice. management will produce additional Funds, could be deemed principal 5. Before approving any advisory cost savings. transactions subject to section 17(a). contract under section 15 of the Act, the 6. Applicants also believe that the 9. Section 17(b) provides that the SEC board of trustees of the Trust and the concern that the acquiring fund might shall exempt a proposed transaction board of trustees or directors of the be able to control the management from section 17(a) if evidence Distributor Fund of Funds, including a decisions of the underlying fund majority of the trustees or directors who through the threat of large redemptions establishes that: (a) the terms of the proposed transaction are reasonable and are not ‘‘interested persons,’’ as defined is not relevant to the proposed in section 2(a)(19), will find that arrangements. There is little risk that the fair and do not involve overreaching; (b) the proposed transaction is consistent Adviser will exercise inappropriate 4 Section 17(b) applies to a specific proposed control over the Underlying Portfolios. with the policies of the registered transaction, rather than an ongoing series of future The Portfolios only will acquire shares investment company involved; and (c) transactions. See Keystone Custodian Funds, 21 of Underlying Portfolios that are One the proposed transaction is consistent S.E.C. 295, 298–99 (1945). Section 6(c), along with with the general provisions of the Act. section 17(b), frequently is used to grant relief from Group Funds. Because the Adviser is section 17(a) to permit an ongoing series of future the investment adviser to the Applicants request an exemption under transactions. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44097 advisory fees charged under the contract PLACE: 450 Fifth Street, N.W., I. Self-Regulatory Organization’s are based on services provided that are Washington, D.C. Statement of the Terms of Substance of in addition to, rather than duplicative the Proposed Rule Change DATE PREVIOUSLY ANNOUNCED: To be of, services provided under any Published. The Exchange proposes to amend Underlying Portfolio or Underlying Section 107B of the Amex Company Distributor Fund advisory contract. The CHANGE IN THE MEETING: Additional Item. Guide to provide greater flexibility for finding, and the basis upon which the The following item will be considered issuers listing Equity Linked Notes. finding was made, will be recorded fully at an open meeting scheduled to be held The text of the proposed rule change in the minute books of the Portfolio or on Wednesday, August 28, 1996, at is available at the Office of the Distributor Fund of Funds. 10:00 a.m.: Secretary, Amex and at the Commission. 6. Applicants agree to provide the following information, in an electronic The Commission will consider whether to II. Self-Regulatory Organization’s format, to the Chief Financial Analyst of propose additional amendments to the Quote Statement of the Purpose of, and the SEC’s Division of Investment Rule. These amendments would require Statutory Basis for, the Proposed Rule continuous two-sided quotations from Change Management: monthly average total exchange specialists and over-the-counter assets of each Portfolio and Distributor market makers that are responsible for more In its filing with the Commission, the Fund of Funds, and each respective than 1% of the quarterly transaction volume Amex included statements concerning Underlying Portfolio and Underlying for an OTC security included in the Nasdaq the purpose of and basis for the Distributor Fund; monthly purchases Stock Market, Inc. For further information, proposed rule change and discussed any and redemptions (other than by please contact Gail Marshall, Division of comments it received on the proposed exchange) for each Portfolio and Market Regulation, at (202) 942–7129. rule change. The text of these statements Distributor Fund of Funds and each may be examined at the places specified respective Underlying Portfolio and Commissioner Johnson, as duty officer, determined that Commission in Item IV below. The Amex has Underlying Distributor Fund; monthly prepared summaries, set forth in exchanges into and out of each Portfolio business required the above change and that no earlier notice thereof was sections A, B, and C below, of the most and Distributor Fund of Funds and each significant aspects of such statements. respective Underlying Portfolio and possible. Underlying Distributor Fund; month- At times, changes in Commission A. Self-Regulatory Organization’s end allocations of each Portfolio’s assets priorities require alterations in the Statement of the Purpose of, and the among the Underlying Portfolios and of scheduling of meeting items. For further Statutory Basis for, the Proposed Rule the assets of each Distributor Fund of information and to ascertain what, if Change Funds among its Underlying Distributor any, matters have been added, deleted (1) Purpose Funds; annual expense ratios for each or postponed, please contact: The Office On May 20, 1993 3 and December 13, Portfolio and each Distributor Fund of of the Secretary (202) 942–7070. 1993,4 the Commission approved Funds and each respective Underlying Dated: August 23, 1996. amendments to Section 107 of the Amex Portfolio and any Underlying Jonathan G. Katz, Company Guide to provide for the Distributor Fund; and a description of Secretary. listing and trading of Equity Linked any vote taken by the shareholders of Term Notes (‘‘ELNs’’). ELNs are any Underlying Portfolio and [FR Doc. 96–22008 Filed 8–23–96; 3:46 pm] intermediate term (two to seven years), Underlying Distributor Fund, including BILLING CODE 8010±01±M hybrid debt instruments, the value of a statement of the percentage of votes which is linked to the performance of a cast for and against the proposal by the highly capitalized, actively traded U.S. Portfolio and the Distributor Fund of [Release No. 34±37587; File No. SR±Amex± 96±31] common stock. Funds and by the other shareholders of The Exchange now proposes to amend the Underlying Portfolio and Self-Regulatory Organizations; Notice Section 107B of the Company Guide to Underlying Distributor Fund. The provide for greater flexibility in the information will be provided as soon as of Filing of Proposed Rule Change by American Stock Exchange, Inc. listing criteria for ELNs. Specifically, reasonably practicable following each the Exchange proposes to provide for an fiscal year-end of the Portfolio and each Relating to The Listing Criteria for Equity Linked Notes alternative minimum tangible net worth Distributor Fund of Funds (unless the criteria for issuers of ELNs. An issuer Chief Financial Analyst notifies August 20, 1996. with minimum tangible net worth in applicants in writing that the excess of $250,000,000 will not be information need no longer be Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 limited to offerings of equity linked submitted.) notes that do not exceed 25% of their For the Commission, by the Division (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on August net worth. The Exchange believes that of Investment Management, under this strikes an appropriate balance delegated authority. 14, 1996, the American Stock Exchange, Inc. (‘‘Amex’’ or ‘‘Exchange’’) filed with between the Exchange’s responsiveness Margaret H. McFarland, to innovations in the securities markets Deputy Secretary. the Securities and Exchange Commission the proposed rule change and its need to ensure the protection of [FR Doc. 96–21754 Filed 8–26–96; 8:45 am] as described in Items I, II, and III below, investors and the maintenance of fair BILLING CODE 8010±01±M which Items have been prepared by the and orderly markets. Moreover, the Amex. The Commission is publishing Exchange believes that these changes will not have an adverse impact on the Sunshine Act Meeting this notice to solicit comments on the proposed rule change from interested market for equity linked notes nor its ``FEDERAL REGISTER'' CITATION OF persons. 3 PREVIOUS ANNOUNCEMENT: [To be See Securities Exchange Act Release No. 32345 (File No. SR–Amex–92–42). Published]. 1 15 U.S.C. 78s(b)(1). 4 See Securities Exchange Act Release No. 33328 STATUS: Open meeting. 2 17 CFR 240.19b–4. (File No. SR–Amex–93–35). 44098 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices investors since issuers with the lower communications relating to the I. Self-Regulatory Organization’s net worth of $150,000,000 will still be proposed rule change between the Statement of the Terms of Substance of required to limit the amount of their Commission and any person, other than the Proposed Rule Change equity linked note offerings to 25% of those that may be withheld from the The Board is filing herewith a notice their net worth. Finally, such alternative public in accordance with the of interpretation concerning rule G–37 criteria is currently in place for issuers provisions of 5 U.S.C. 552, will be on political contributions and of currency and index warrants listed on available for inspection and copying in prohibitions on municipal securities 5 the exchange. the Commission’s Public Reference business (hereafter referred to as ‘‘the (2) Basis Section, 450 Fifth Street, N.W., proposed rule change’’). The proposed Washington, D.C. 20549. Copies of such rule change is as follows: The Exchange believes that the filing will also be available for proposed rule change is consistent with Rule G–37: Political Contributions and Section 6(b) of the Act in general and inspection and copying at the principal Prohibitions on Municipal Securities furthers the objectives of Section 6(b)(5) office of the Amex. All submissions Business in particular in that it is designed to should refer to the File No. SR–Amex– Contributions to a Non-Dealer Associated prevent fraudulent and manipulative 96–31 and should be submitted by PAC and Payments to a State or Local acts and practices, to promote just and [insert date 21 days from date of Political Party equitable principles of trade, and is not publication]. 1. Q: Could contributions to a non-dealer designed to permit unfair For the Commission by the Division associated PAC or payments to a state or discrimination between customers, of Market Regulation, pursuant to local political party lead to a ban on issuers, brokers or dealers. delegated authority.6 municipal securities business with an issuer under rule G–37? B. Self-Regulatory Organization’s Margaret H. McFarland, A: Rule G–37(d) prohibits a dealer and any Statement on Burden on Competition Deputy Secretary. municipal finance professional from doing [FR Doc. 96–21755 Filed 8–26–96; 8:45 am] any act indirectly which would result in a The proposed rule change will impose violation of the rule if done directly by the no burden on competition. BILLING CODE 8010±01±M dealer or municipal finance professional. A C. Self-Regulatory Organization’s dealer would violate rule G–37 by doing Statement on Comments on the business with an issuer after providing money to any person or entity when the Proposed Rule Change Received From [Docket No. 34±37591; File No. SR±MSRB± 96±8] dealer knows that such money will be given Members, Participants or Others to an official of an issuer who could not No written comments were solicited Self-Regulatory Organizations; Notice receive such a contribution directly from the dealer without triggering the rule’s or received with respect to the proposed of Filing and Immediate Effectiveness rule change. prohibition on business. For example, in of Proposed Rule Change by the certain instances, a non-dealer associated III. Date of Effectiveness of the Municipal Securities Rulemaking PAC or a local political party may be Proposed Rule Change and Timing for Board Relating to Interpretation of soliciting funds for the purpose of supporting Commission Action Rule G±37 on Political Contributions a limited number of issuer officials. Depending upon the facts and circumstances, Within 35 days of the date of and Prohibitions on Municipal Securities Business contributions to the PAC or payments to the publication of this notice in the Federal political party might well result in the same Register or within such longer period (i) August 21, 1996. prohibition on municipal securities business as the Commission may designate up to as would a contribution made directly to the 90 days of such date if it finds such On August 6, 1996, the Municipal issuer official. longer period to be appropriate and Securities Rulemaking Board (‘‘Board’’ 2. Q: If a dealer receives a fund raising publishes its reasons for no finding or or ‘‘MSRB’’) filed with the Securities solicitation from a non-dealer associated PAC and Exchange Commission or a political party with no indication of how (ii) as to which the Amex consents, the the collected funds will be used, can the Commission will: (‘‘Commission’’ or ‘‘SEC’’) a proposed dealer make contributions to the non-dealer (A) By order approve such proposed rule change (SR–MSRB–96–8), pursuant associated PAC or payments to the political rule change, or to Section 19(b)(1) of the Securities party without causing a ban on municipal (B) Institute proceedings to determine Exchange Act of 1934 (‘‘Act’’), 15 U.S.C. securities business? whether the proposed rule change 78s(b)(1), and Rule 19b–4 thereunder. A: Dealers should inquire of the non-dealer should be disapproved. The proposed rule change is described associated PAC or political party how any funds received from the dealer would be IV. Solicitation of Comments in Items I, II, and III below, which Items used. For example, if the non-dealer have been prepared by the Board. The associated PAC or political party is soliciting Interested persons are invited to Board has designated this proposal as submit written data, views and funds for the purpose of supporting a limited constituting a stated policy, practice, or number of issuer officials, then, depending arguments concerning the foregoing. interpretation with respect to the upon the facts and circumstances, Persons making written submissions meaning, administration, or contributions to the PAC or payments to the should file six copies thereof with the enforcement of an existing rule of the political party might well result in the same Secretary, Securities and Exchange prohibition on municipal securities business Commission, 450 Fifth Street, N.W., Board under Section 19(b)(3)(A) of the as would a contribution made directly to the Washington, D.C. 20549. Copies of the Act, which renders the proposal issuer official. effective upon receipt of this filing by submission, all subsequent Two-Year Designation Period for Municipal amendments, all written statements the Commission. The Commission is Finance Professionals with respect to the proposed rule publishing this notice to solicit comments on the proposed rule change 3. Q: Rule G–37(g)(iv) states that each change that are filed with the person designated a municipal finance Commission, and all written from interested persons. professional shall retain this designation for two years after the last activity or position 5 See Section 106 of the Amex Company Guide. 6 17 CFR 200.30–3(a)(12). which gave rise to the designation. If a dealer Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44099 terminates a municipal finance professional’s rule’s ban on municipal securities business local political parties, as well as the employment, and that person is no longer for two years from the date of the two-year designation period for associated in any way with the dealer contribution. municipal finance professionals, the (including any affiliated entities of the Board has determined that it is dealer), must the dealer continue to designate II. Self-Regulatory Organization’s that person a ‘‘municipal finance Statement of the Purpose of, and necessary to provide further guidance to professional’’ for recordkeeping and Statutory Basis for, the Proposed Rule the municipal industry. Accordingly, reporting purposes under rules G–37(g)(iv) Change the Board is publishing this seventh set and G–8(a)(xvi)? In its filing with the Commission, the of questions and answers. A: No. If a municipal finance professional The Board believes the proposed rule is no longer employed by the dealer, and is Board included statements concerning the purpose of and basis for the change is consistent with Section not an ‘‘associated person’’ of the dealer, then 15B(b)(2)(C) of the Act.4 the dealer is not required to designate that proposed rule change and discussed any person a municipal finance professional and comments it received on the proposed B. Self-Regulatory Organization’s the dealer may cease its recordkeeping and rule change. The texts of these Statement on Burden on Competition reporting obligations with respect to that statements may be examined at the The Board does not believe that the person. places specified in Item IV below. The proposed rule change will impose any 4. Q: If a municipal finance professional is Board has prepared summaries, set forth burden on competition not necessary or transferred from a firm’s dealer department to in Sections (A), (B), and (C) below, of another non-municipal department, such as appropriate in furtherance of the the most significant aspects of such the corporate department, must the dealer purposes of the Act, because it would statements. continue to designate this person a municipal apply equally to all brokers, dealers and finance professional for recordkeeping and A. Self-Regulatory Organization’s municipal securities dealers. reporting purposes? Statement of the Purpose of, and A: If a municipal finance professional is C. Self-Regulatory Organization’s transferred to another department within the Statutory Basis for, the Proposed Rule Change Statement on Comments on the same firm (such as corporate, equities, etc.) Proposed Rule Change Received From and remains an ‘‘associated person’’ of the On April 7, 1994, the Commission Members, Participants, or Others dealer, the dealer must continue to designate approved Board rule G–37, concerning this person a municipal finance professional political contributions and prohibitions Written comments were neither for two years from the date of the last activity on municipal securities business.1 Since solicited nor received. or position which gave rise to this that time, the Board has received designation and must continue its III. Date of Effectiveness of the recordkeeping and reporting obligations numerous inquiries concerning the Proposed Rule Change and Timing for under rules G–37 and G–8. It is incumbent application of the rule. In order to assist Commission Action the municipal securities industry and, upon each dealer to determine whether the The Board has designated this person is an associated person pursuant to in particular, brokers, dealers and Section 3(a)(18) of the Securities Exchange municipal securities dealers in proposal as constituting a stated policy, Act of 1934. If so, then in addition to understanding and complying with the practice, or interpretation with respect recordkeeping and reporting obligations, provisions of the rule, the Board to the meaning, administration, or dealers should be mindful that any published six prior notices of enforcement of an existing rule of the contributions made by this associated person interpretation which set forth, in Board under Section 19(b)(3)(A)(i) of the during the two-year designation period (other question-and-answer format, general Act and subparagraph (e) of Rule 19b– than contributions that qualify for the rule’s guidance on rule G–37.2 In prior filings 4 thereunder, thus rendering the $250 de minimis exception) will subject the proposal effective upon receipt of this dealer to the rule’s ban on municipal with the Commission, the Board stated that it will continue to monitor the filing by the Commission. securities business for two years from the At any time within sixty days of the date of such contribution. Of course, the ban application of rule G–37, and, from time can only be triggered if the person previously to time, will publish additional notices filing of this proposed rule change, the was a municipal finance professional. of interpretations, as necessary.3 In light Commission may summarily abrogate 5. Q: A municipal finance professional of questions recently received from such rule change if it appears to the resigns from a dealer, but still remains an market participants concerning the Commission that such action is associated person of the dealer (e.g., by applicability of the rule to contributions necessary or appropriate in the public retaining a position in the dealer’s holding interest, for the protection of investors, company). May the dealer cease designating to non-dealer associated political action committees and payments to state or or otherwise in furtherance of the this person a municipal finance professional purposes of the Act. for purposes of the recordkeeping and reporting requirements under rules G–37 and 1 Securities Exchange Act Release No. 33868 IV. Solicitation of Comments G–8? In addition, may this person make (April 7, 1994). The rule applies to contributions contributions to issuer officials without made on and after April 25, 1994. Interested persons are invited to causing the dealer to be banned from the 2 See Securities Exchange Act Release No. 34161 submit written data, views, and municipal securities business with such (June 6, 1994), 59 FR 30379 (June 14, 1994); arguments concerning the foregoing. Securities Exchange Act Release No. 34603 (Aug. issuers? 25, 1994), 59 FR 45049 (Aug. 31, 1994); Securities Persons making written submissions A: As noted above in Q&A number 4, if a Exchange Act Release No. 35128 (Dec. 20, 1994), 59 should file six copies thereof with the person is no longer a municipal finance FR 66989 (Dec. 28, 1994); Securities Exchange Act professional because he or she has left the Release No. 35544 (March 28, 1995), 60 FR 16896 4 Section 15B(b)(2)(C) states in the pertinent part dealer’s employ, but nevertheless remains an (April 3, 1995); Securities Exchange Act Release No. that the rules of the Board ‘‘shall be designed to associated person of the dealer, then the 35879 (June 21, 1995), 60 FR 33447 (June 28, 1995); prevent fraudulent and manipulative acts and dealer must continue to designate this person Securities Exchange Act Release No. 36857 (Feb. 16, practices, to promote just and equitable principles a municipal finance professional for two 1996), 61 FR 7034 (Feb. 23, 1996). of trade, to foster cooperation and coordination years from the last activity or position which See also MSRB Reports, Vol. 14, No. 3 (June 1994) with persons engaged in regulating, clearing, at 11–16; Vol. 14, No. 4 (August 1994) at 27–31; gave rise to such designation. settling, processing information with respect to, and Vol. 14, No. 5 (December 1994) at 8; Vol. 15, No. facilitating transactions in municipal securities, to Moreover, any contributions by this 1 (April 1995) at 21; Vol. 15, No. 2 (July 1995) at remove impediments to and perfect the mechanism associated person (other than those that 3–4; and Vol. 16, No. 1 (Jan. 1996) at 31. See also of a free and open market in municipal securities, qualify for the de minimis exception under MSRB Manual (CCH) ¶ 3681. and, in general, to protect investors and the public rule G–37(b)) will subject the dealer to the 3 File Nos. SR–MSRB–94–6 and 94–15. interest.’’ 44100 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Secretary, Securities and Exchange institutional customers.3 The NASD permanently approves the proposed rule Commission, 450 Fifth Street, N.W., filed Amendment No. 1 to the proposed change, as amended, and Amendment Washington, D.C. 20549. Copies of the rule change on October 17, 1995, Nos. 4 and 5 on an accelerated basis. submissions, all subsequent Amendment No. 2 on January 22, 1996, amendments, all written statements and Amendment No. 3 on February 15, II. Background with respect to the proposed rule 1996. The Government Securities Act change that are filed with the The proposed rule change and Amendments of 1993 (‘‘GSAA’’) Commission, and all written Amendment No. 1 were published for eliminated the statutory limitations on communications relating to the comment in Securities Exchange Act the NASD’s authority to apply sales proposed rule change between the Release No. 36383 (Oct. 17, 1995), 60 FR practice rules to transactions in Commission and any person, other than 54530 (Oct. 24, 1995). Amendment No. exempted securities, including those that may be withheld from the 2 was replaced by Amendment No. 3 government securities, other than 4 public in accordance with the before publication. Amendment No. 3 municipals.6 To implement the provisions of 5 U.S.C. 552, will be was published for comment in expanded sales practice authority available for inspection and copying in Securities Exchange Act Release No. granted to the NASD pursuant to the the Commission’s Public Reference 36973 (Mar. 14, 1996), 61 FR 11655 GSAA, the Association has proposed to Room. Copies of the filing will also be (Mar. 21, 1996). On July 22, 1996 and delete the NASD Government Securities available for inspection and copying at August 14, 1996, the NASD filed Rules and apply the NASD Rules of Fair the Board’s principal offices. All Amendment Nos. 4 and 5, respectively, Practice, where applicable, to exempted submissions should refer to File No. to the proposed rule change.5 This order securities, including government SR–MSRB–96–8 and should be securities, other than municipals.7 submitted by September 17, 1996. 3 The proposed rule change (i) Amends Article I, Concurrently, the NASD has proposed Section 4 and 5 of the Rules of Fair Practice to For the Commission by the Division apply the Rules of Fair Practice to those members an interpretation of its suitability rule as of Market Regulation, pursuant to registered with the SEC solely under the provisions it applies to members’ dealings with delegated authority, 17 CFR 200.30– of Section 15C of the Act and to transactions in all institutional customers (‘‘Suitability securities, except municipals; (ii) merges the Interpretation’’ or ‘‘Interpretation’’). The 3(a)(12). NASD’s Government Securities Rules, where Margaret H. McFarland, applicable, into the Rules of Fair Practice, (iii) Interpretation would apply to all securities, except municipals, the Deputy Secretary. makes clarifying amendments to certain sections and Interpretations under Articles III and IV of the purchase or sale of which is [FR Doc. 96–21816 Filed 8–26–96; 8:45 am] Rules of Fair Practice relating to the government recommended by a broker-dealer. A BILLING CODE 8010±01±M securities business; (iv) amends certain Rules of Fair Practice and Board Interpretations to exempt draft of the proposed suitability transactions in government securities; (v) amends interpretation contained in this Article III, Section 2 of the Rules of Fair Practice proposed rule change was first [Release No. 34±37588; File No. SR±NASD± by amendment to Subsection 2(b) and adoption of published for comment in NASD Notice 95±39] an Interpretation of the Board of Governors— Suitability Obligations to Institutional Customers; to Members 94–62 (August 1994) (vi) makes technical changes to NASD By-Laws, (‘‘NTM 94–62’’).8 In response to this Self-Regulatory Organizations; Schedules to the By-Laws, the Rules of Fair Practice solicitation of comments, the NASD National Association of Securities and the Code of Procedure to replace references to received 15 comment letters.9 The Dealers, Inc; Order Granting Approval provisions of the Government Securities Rules with to Proposed Rule Change and Notice references to the appropriate Rules of Fair Practice, and to delete the terms ‘‘exempted security’’ or Article III, which requires NASD members to report of Filing and Order Granting ‘‘exempted securities,’’ or, replace these terms with to the NASD the occurrence of certain specified Accelerated Approval to Amendment the term ‘‘municipal securities,’’ as applicable; and events and quarterly summary statistics concerning Nos. 4 and 5 to Proposed Rule Change (vii) modifies references to SEC Rules 15c3–1 and customer complaints, would be applicable to exempted securities (except municipals). See Letter Relating to Application of the Rules of 15c3–3 to reflect SEC amendments to those rules. 4 Amendment No. 2 responded to some of the from John A. Ramsay, Deputy General Counsel, to Fair Practice to Transactions in comments received on the original proposed rule Katherine A. England, Assistant Director, Division Exempted Securities (Except change. Amendment No. 3 expanded upon the of Market Regulation, SEC, dated August 14, 1996 Municipals) and an Interpretation of Its discussion contained in Amendment No. 2 by (‘‘Amendment No. 5’’). In Amendment No. 5, the NASD notes that actions for conduct violating ‘‘Fair Suitability Rule including responses to nine comment letters received on the original proposed rule change. Prices and Commissions’’ of Article III, Section 4, and the Mark-Up Policy may be brought under August 20, 1996. Amendment No. 3 to SR–NASD–95–39 completely replaced and superseded Amendment No. 2. See Article III, Section 1, requiring members to adhere I. Introduction letters from Joan C. Conley, Secretary, NASD, to to just and equitable principles of trade. Mark P. Barracca, Branch Chief, SEC, dated 6 Government Securities Act Amendments of On September 18, 1995, the National February 15, 1996, and March 4, 1996. The 1993, Pub. L. No. 103–202, § 1(a), 107 Stat. 2344 (1993). Association of Securities Dealers, Inc. Commission received seven additional comment letters after the publication of Amendment No. 3. 7 The terms ‘‘exempted securities,’’ ‘‘government (‘‘NASD’’ or ‘‘Association’’) submitted 5 See Letter from Joan C. Conley, Secretary, securities’’ and ‘‘municipal securities’’ are defined to the Securities and Exchange NASD, to Katherine A. England, Assistant Director, in Sections 3(a)(12), 3(a)(42) and 3(a)(29) of the Act Commission (‘‘SEC’’ or ‘‘Commission’’), Division of Market Regulation, SEC, dated July 22, respectfully. pursuant to Section 19(b)(1) of the 1996. Pursuant to an NASD rule proposal that 8 A copy of the NTM 94–62 is included in File became effective in May 1996, the NASD Manual No. SR–NASD–95–39 as Exhibit 2 thereto. Securities Exchange Act of 1934 has been reorganized to make it easier to use. See 9 The NASD received letters regarding NTM 94– 1 2 (‘‘Act’’) and Rule 19b–4 thereunder; a Securities Exchange Act Release No. 36698 (Jan. 11, 62 from the following: (1) Brian C. Underwood, proposed rule change to apply the 1996) (Rules that were formerly organized under the Director of Compliance, A.G. Edwards & Sons, Inc., Association’s Rules of Fair Practice to ‘‘Rules of Fair Practice’’ generally are grouped dated September 29, 1994; (2) Alan S. Kramer, under the NASD’s Conduct Rules at Rules 2000– Senior Managing Director, Bear Stearns & Co. Inc., transactions in exempted securities, 3000). Amendment No. 4 provides the new dated October 17, 1994; (3) Marjorie E. Gross, other than municipals, and to adopt an numbering of those provisions of the NASD Manual Senior Vice President & Associate General Counsel, interpretation of the Association’s that are being affected by this rule proposal. A Chemical Bank, dated September 29, 1994; (4) suitability rule as it applies to conversion chart is attached to this order as Exhibit Marjorie E. Gross, Senior Vice President & Associate 1. Moreover, Amendment No. 4 proposes to apply General Counsel, Chemical Bank, dated October 14, Section 50, Article III of the Rules of Fair Practice 1994; (5) F. Smith, President, Freeman Securities 1 15 U.S.C. Section 78s(b)(1). to transactions in exempted securities (except Company, Inc., dated September 30, 1994; (6) 2 17 CFR 240.19b–4. municipals). The NASD states that Section 50, Wendy R. Beer, Compliance Counsel, Furman Selz, Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44101

proposed suitability interpretation Fair Practice to exempted securities V, Section 1 of the Rules of Fair published in NTM 94–62 was revised, (except municipals) for the first time. Practice. The NASD also proposes to and a second draft was published for Table 2 below indicates the Rules of move provisions contained in Section 6 comment in Notice to Members 95–21 Fair Practice that will be applicable to of the Government Securities Rules into (April 1995) (‘‘NTM 95–21’’).10 Sixteen exempted securities (except new Section 38A of Article III of the comments were received in response municipals). Rules of Fair Practice. To effect these 11 amendments, the NASD has reorganized thereto. Thereafter, the NASD filed a Amendments Merging Government and renumbered many of the provisions proposed interpretation with the Securities Rules into Rules of Fair contained in the above-referenced Commission. Practice sections of the Rules of Fair Practice. III. Description The NASD proposes to merge certain Table 1 identifies the provisions of A. Application of the Rules of Fair provisions contained solely under the the Government Securities Rules and Practice to Exempted Securities Except Government Securities Rules into the corresponding provisions of the Municipals and Merger of Government corresponding sections of the Rules of Rules of Fair Practice into which the Securities Rules Fair Practice to provide NASD members Government Securities Rules will be with one set of sales practice rules that merged. In addition, Table 1 indicates As shown in Table 1 below, the will reflect the NASD’s expanded the corresponding section of the Rules proposed rule change merges certain authority under the GSAA. Specifically, of Fair Practice for each Government provisions of the current Government the NASD proposes to add provisions of Securities Rule where no rule language Securities Rules into the Rules of Fair the Government Securities Rules into change is necessary because of Practice. The proposed rule change also Article III, Section 21(c)(3), 38, and 39; expanded authority under Article I, applies certain of the NASD Rules of Article IV, Sections 1 to 4; and Article Section 5 of the Rules of Fair Practice.12

TABLE 1.ÐGOVERNMENT SECURITIES RULES MERGED INTO RULES OF FAIR PRACTICE

Sec. 1. Adoption of Rules ...... Article I, Sec. 1ÐNo change. Sec. 2. Applicability: Subsection (a) ...... Article I, Sec. 4 and 5(a). Subsection (b) ...... Article I, Sec. 5 (b) and (c)ÐNo change. Sec. 3. Definitions in By-Laws and Rules of Fair Practice ...... Article II, Sec. 1 and 2ÐNo change. Sec. 4. Books and Records ...... Article III, Sec. 21. Sec. 5. Supervision ...... Article III, Sec. 27ÐNo change. Sec. 6. Regulation of Activities of Members Experiencing Financial and/ Article III, Sec. 38 and 38A. or Operational Difficulties. Explanation of Board of GovernorsÐRestrictions on a Member's Explanation of Board of Governors Restrictions on a Member's Activ- Activity. ityÐArticle III, Sec. 38 and 38A. Sec. 7. Approval of Change in Exempt Status under SEC Rule 15c3±3 Article III, Sec. 39. Sec. 8. Communications with the Public ...... Article III, Sec. 35ÐNo change. Sec. 9. Availability to Customers of Certificate, By-Laws, Rules, and Article IV, Sec. 1ÐNo change. Code of Procedure. Sec. 10. Complaints: Subsection (a) Complaints by Public Against Members ...... Article IV, Sec. 2.

dated October 31, 1994; (7) Betsy Dotson, Assistant 10 A copy of NTM 95–21 is included in File No. Banking Association, dated June 13, 1995; (13) Director, Federal Liaison Center, Government SR–NASD–95–39 as Exhibit 4 thereto. Linda D. Edwards, Vice President Compliance, Finance Officers Association, dated September 30, 11 The NASD received letters regarding NTM 95– Llama Company, dated May 9, 1995; (14) Scott H. 1994; (8) Kathryn S. Reimann, Senior Vice 21 from the following: (1) Allen Weintraub, Rockoff, Managing Director, Director of President and Director of Fixed Income Chairman and Chief Executive Officer, The Advest Compliance, and Assistant General Counsel, Compliance, Lehman Brothers Inc., dated October Group, Inc., dated May 5, 1995; (2) Brian C. Nomura Securities International, Inc., dated May 17, 1994; (9) Larry Forrester, Senior Vice President, Underwood, Director of Compliance, A.G. Edwards 17, 1995; (15) Robert D. McKnew, Chairman, Public Lyn-Hayes Financial, Inc., dated August 23, 1994; & Sons, Inc., dated May 15, 1995; (3) Michael S. Securities Association, dated May 18, 1995; and (10) Marguerite C. Willenbucher, Vice President Caccese, Esq., Senior Vice President, General (16) Robert F. Price, Chairman Federal Regulation and Senior Counsel, Debt and Equity Markets Counsel, and Secretary, Association for Investment Committee, Richard O. Scribner, Chairman, Self- Group, Merrill Lynch, Pierce, Fenner & Smith Inc., Management and Research; (4) Marjorie E. Gross, dated October 17, 1994; (11) Ken DeRegt, Managing Regulation and Supervisory Practices Committee, Senior Vice President & Associate General Counsel, Director, Morgan Stanley & Co. Incorporated, dated and Zachary Snow, Chairman OTC Derivative Chemical Bank, dated May 17, 1995; (5) Michael J. October 14, 1994; (12) Prudential Insurance Products Committee, Securities Industry Company of America, dated October 31, 1994; (13) Wilk, Managing Director, Comerica Securities, Association, dated June 7, 1995. A copy of each Marianna Maffucci, Senior Vice President and dated May 12, 1995; (6) Douglas E. Harris, Senior comment letter listed above is included in File No. General Counsel, Public Securities Association, Deputy Comptroller for Capital Markets, SR–NASD–95–39 as Exhibit 5 thereto. These letters dated October 17, 1994; (14) William A. McIntosh, Comptroller of the Currency, dated May 17, 1995; are discussed in Securities Exchange Act Release Managing Director and Co-Head of U.S. Fixed (7) Lawrence Jacob, Senior Vice President, Assistant No. 36383, supra note 9 (notice of proposed rule Income, Salomon Brothers Inc., dated September Secretary and Director of Compliance, Daiwa change for File No. SR–NASD–95–39). Securities America Inc., dated May 16, 1995; (8) 30, 1994; and (15) Robert F. Price, Chairman, 12 The NASD proposes to amend Article I, Section James A. Brickley, President and CEO, Federal Farm Federal Regulation Committee, and Mark T. 5(a) of the Rules of Fair Practice by deleting the Credit Banks Funding Corp., dated May 17, 1995; Commander, Chairman, Self-Regulation and phrase ‘‘other than those members registered with Supervisory Practice Committee, Securities (9) Mitchell Delk, Vice President Government and the Securities and Exchange Commission solely Industry Association, dated October 17, 1994. A Industry Relations, Freddie Mac, dated June 1, under the provisions of Section 15C of the Act and copy of each comment letter listed above is 1995; (10) Betsy Dotson, Assistant Director, Federal included in File No. SR–NASD–95–39 as Exhibit 3 Liaison Center, Government Finance Officers persons associated with such members’’ to expand thereto. These letters are discussed in Securities Association, dated May 17, 1995; (11) Matthew Lee, the application of the Rules of Fair Practice to Exchange Act Release No. 36383 (Oct. 17, 1995), 60 Executive Director, Inner City Press/Community on members involved in the government securities FR 54530 (Oct. 24, 1995) (notice of proposed rule the Move, dated May 15, 1995; (12) Matthew business pursuant to Section 1 15C of the Act. change for File No. SR–NASD–95–39). Elderfield, Assistant Director, London Investment 44102 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

TABLE 1.ÐGOVERNMENT SECURITIES RULES MERGED INTO RULES OF FAIR PRACTICEÐContinued

Subsection (b) Complaints by District Business Conduct Commit- Article IV, Sec. 3. tees. Subsection (c) Complaints by the Board of Governors ...... Article IV, Sec. 4. Sec. 11. Reports and Inspection of Books for Purpose of Investigating Article IV, Sec. 5ÐNo change. Complaints. Resolution of Board of GovernorsÐSuspension of Members for Resolution of Board of GovernorsÐSuspension of Members for Failure Failure to Furnish Information Duly Requested. to Furnish Information Duly RequestedÐNo change Sec. 12. Sanctions for Violation of the Rules ...... Article V, Sec. 1. Sec. 13. Payment of Fines or Costs ...... Article V, Sec. 2ÐNo change. Sec. 14. Cost of Proceedings ...... Article V, Sec. 3ÐNo change.

Application of NASD Rules of Fair by these Interpretations also may occur associated person as its ‘‘Compliance Practice to Government Securities under certain circumstances in the Registered Options Principal’’ under As indicated in Table 2 below, certain government securities market and Part II, Section 2(f) of Schedule C. The provisions of the Rules of Fair Practice intends to review the application of NASD intends to file separately a will not be immediately applicable to these Interpretations to the government proposed rule change concerning this transactions in government securities. securities market. The NASD also issue.18 Section 35A(b) of the Rules of The NASD intends to review the believes that actions for similar conduct Fair Practice requires the registration of application of these rules to the occurring in the government securities such a Principal to approve certain government securities market. market may be brought under Article III, options advertisements, sales materials Front Running. Currently, the NASD Section 1 of the Rules of Fair Practice. and other literature for government 13 Front Running Interpretation applies Article III, Section 35A of the Rules of securities options transactions. The only to equity securities. The NASD Fair Practice/Schedule C to the By-Laws NASD has determined that Article III, believes, however, that the member Section 35A(b) will not be applicable to conduct prohibited by the Front The proposed rule change would options advertisements, sales materials Running Interpretation may occur under apply Schedule C of the By-Laws and other literature for government certain circumstances in the government (‘‘Schedule C’’), regarding NASD securities options transactions during registration requirements of persons securities market, and will review the the interim period when the NASD is associated with a member, to the application of the Front Running reviewing the registration issue. Interpretation to the government personnel of sole-government securities securities market.14 In the interim, the broker-dealers, including persons Customer Account Statements. The NASD believes that actions for similar selling options on government proposed rule change would phase-in front running conduct occurring in the securities. The proposed rule change the implementation of Article III, government securities market may be also would have the effect of applying Sections 21, 27, 32, and 45 of the Rules brought under Article III, Section 1 of Article III, Section 35A of the Rules of of Fair Practice to dealers in government the Rules of Fair Practice.15 Fair Practice (‘‘Section 35A’’) to the securities within three months of the Trading ahead of customer limit options communications of such effective date of the rule change. The orders 16 and trading ahead of research members with the public. The NASD NASD believes that the phase-in is reports,17 also are currently drafted to currently is considering whether it is necessary to provide members with apply only to equity securities. The appropriate to require a government sufficient time to change their internal NASD believes the conduct addressed securities broker-dealer to register an procedures to comply with these rules.

TABLE 2.ÐAPPLICABILITY OF THE RULES OF FAIR PRACTICE TO EXEMPTED SECURITIES, INCLUDING GOVERNMENT SECURITIES (EXCEPT MUNICIPALS)

ARTICLE III Section 1: Business Conduct of Members ...... Applicable. Interpretations of the Board of Governors: Execution of Retail Transactions in the Over-the Counter Market ...... Applicable. Prompt Receipt and Delivery ...... Not Applicable. Forwarding of Proxy and Other materials ...... Not Applicable. Free-Riding and Withholding ...... Amending to be Not Appli- cable. Interpretation on Limit Order Protection ...... Not Applicable. Front Running Policy ...... Not Applicable. Trading Ahead of Research Reports ...... Not Applicable.1 Section 2: Recommendations to Customers ...... Applicable. Policy of the Board of GovernorsÐFair Dealing With Customers Policy ...... Applicable.

13 Interpretation of the Board of Governors at 15 Id. 17 Interpretation of the Board of Governors at paragraph 2151.08. 16 Interpretation of the Board of Governors at paragraph 2151.09. 14 Securities Exchange Act Release No. 36973 paragraph 2151.07. 18 Securities Exchange Act Release No. 36973, (Mar. 14, 1996), 61 FR 11655 (Mar. 21, 1996). supra note 14. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44103

TABLE 2.ÐAPPLICABILITY OF THE RULES OF FAIR PRACTICE TO EXEMPTED SECURITIES, INCLUDING GOVERNMENT SECURITIES (EXCEPT MUNICIPALS)ÐContinued

Section 3: Charges to Customer ...... Applicable. Section 4: Fair Prices and Commissions ...... Applicable.2 Interpretation of the Board of GovernorsÐNASD Mark-Up Policy ...... Applicable.3 Section 5: Publication of Transactions and Quotations ...... Applicable. Interpretation of the Board of GovernorsÐManipulative and Deceptive Quotations ...... Applicable. Section 6: Offers at Stated Prices ...... Applicable. Policy of the Board of GovernorsÐPolicy With Respect to Firmness of Quotations ...... Applicable. Section 7: Disclosure of Prices in Selling Agreements ...... Applicable only to tradi- tional underwriter ar- rangements. Section 8: Securities Taken in Trade ...... Not Applicable. Interpretation of the Board of GovernorsÐSafe Harbor and Presumption of Compliance ...... Not Applicable. Section 9: Use of Information Obtained in Fiduciary Capacity ...... Applicable. Section 10: Influencing or Rewarding Employees of Others ...... Applicable. Section 11: Payment Designed to Influence Market Prices, Other than Paid Advertising ...... Applicable. Section 12: Disclosure on Confirmations ...... Not Applicable; superseded by SEC rules. Section 13: Disclosure of Control ...... Not Applicable. Section 14: Disclosure of Participation or Interest in Primary or Secondary Distribution ...... Applicable. Section 15: Discretionary Accounts ...... Applicable. Section 16: Offers ``At the Market'' ...... Not Applicable.4 Section 17: Solicitation of Purchases on an Exchange to Facilitate a Distribution of Securities ...... Applicable. Section 18: Use of Fraudulent Devices ...... Applicable. Section 19: Customers Securities or Funds ...... Applicable. Section 20: Installment or Partial Payment Sales ...... Applicable. Section 21: Books and Records ...... Applicable, except for pro- posed amendments to Subsection (b)(i). Section 22: Disclosure of Financial Condition ...... Applicable. Section 23: Net Prices to Persons Not in Investment Banking or Securities Business ...... Not Applicable. Section 24: Selling Concessions ...... Not Applicable. Interpretation of the Board of GovernorsÐServices in Distribution ...... Not Applicable. Section 25: Dealing with Non-Members ...... Not Applicable. Interpretation of the Board of GovernorsÐTransactions Between Members and Non-members ...... Not Applicable. Section 26: Investment Companies ...... Not Applicable. Section 27: Supervision ...... Applicable. Section 28: Transaction for or by Associated Persons ...... Applicable. Section 29: Variable Contracts of an Insurance Co...... Not Applicable. Section 30: Margin Accounts ...... Applicable. Section 31: Securities Failed to Receive and Failed to Deliver ...... Not Applicable. Section 32: Fidelity Bonds ...... Applicable. Section 33: Options ...... Not Applicable. 44104 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

TABLE 2.ÐAPPLICABILITY OF THE RULES OF FAIR PRACTICE TO EXEMPTED SECURITIES, INCLUDING GOVERNMENT SECURITIES (EXCEPT MUNICIPALS)ÐContinued

Section 34: Direct Participation Programs Appendix F ...... Not Applicable. Section 35: Communications With the Public ...... Applicable. Section 35A: Options Communications With the Public ...... Not Applicable/Under Re- view. Section 36: Transactions with Related Persons ...... Not Applicable. Interpretation of the Board of GovernorsÐTransactions With Related Persons ...... Not Applicable. Section 37: [Reserved] 5 Section 38: Regulation of Activities of Members Experiencing Financial and/or Operational Difficulties ...... Applicable. Section 39: Approval of Change in Exempt Status under SEC Rule 15c3±3 ...... Applicable. Section 40: Private Securities Transactions ...... Applicable. Section 41: Short-Interest Reporting ...... Not Applicable. Section 42: Prohibition on Transactions During Trading Halts ...... Not Applicable. Section 43: Outside Business Activities ...... Applicable. Section 44: The Corporate Financing Rule ...... Not Applicable. Section 45: Customer Account Statements ...... Applicable. Section 46: Adjustment of Open Orders ...... Not Applicable. Section 47: Clearing Agreements ...... Applicable. Section 48: Short Sale Rule ...... Not Applicable. Section 49: Primary Nasdaq Market Maker Standards ...... Not Applicable. Section 50: Reporting Requirements ...... Applicable.6

ARTICLE IV

Section 1: Availability to Customers of Certificate, By-laws, Rules and Code of Procedures ...... Applicable. Section 2: Complaints by Public Against Members for Violations of Rules ...... Applicable. Section 3: Complaints by District Business Conduct Committee ...... Applicable. Section 4: Complaints by Board of Governors ...... Applicable. Section 5: Reports and Inspection of Books for Purpose of Investigating Complaints ...... Applicable.

ARTICLE V

Section 1: Sanctions for Violations of Rules ...... Applicable. Interpretation of the Board of GovernorsÐThe Effect of a Suspension or Revocation of the Registration, if any, of a Person Associated with a Member or the Barring of a Person from further Association with any Member. Section 2: Payment for Fines, Other Monetary Sanctions, or Costs ...... Applicable. Section 3: Costs of Proceedings ...... Applicable. 1 As noted previously, the NASD will review the application of this Interpretation to the government securities market. 2 Amendment No. 5 states that the NASD may bring action for conduct violating Article III, Section 4 (``Fair Prices and Commissions'') under its just and equitable principles of trade rule. See Amendment No. 5, supra note 5. 3 Article III, Section 4 of the Rules of Fair Practice and the NASD Mark-Up Policy currently apply to transactions in equity and corporate debt securities. The NASD is developing an Interpretation of the Mark-Up Policy with respect to exempted securities and other debt securities. There- fore, the current application of Article III, Section 4 of the Rules of Fair Practice and the NASD Mark-Up Policy will not apply to transactions in exempted securities until adoption of an Interpretation of the NASD Mark-Up Policy with respect to all debt securities. However, current Article III, Section 4 of the Rules of Fair Practice and the Mark-Up Policy remain in full force and effect for all equity and corporate debt transactions. See letter from Elliott R. Curzon, Assistant General Counsel, NASD, to Mark P. Barracca, Branch Chief, Division of Market Regulation, SEC, dated October 17, 1995 (Amendment No. 1 to the proposed rule change). In Amendment No. 5, the NASD clarifies that it may bring action for conduct violating the Mark-Up Policy under its just and equitable principles of trade rule. See Amendment No. 5, supra note 5. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44105

4 The NASD has indicated that it will review the application of this Interpretation to the government securities market. 5 In Amendment No. 4, the NASD indicated that the reference to Section 37 in Amendment No. 3 was in error because the Commission ap- proved the NASD's deletion of this section on March 8, 1994. See Amendment No. 4, supra note 5. 6 In Amendment No. 4, the NASD proposed that the Reporting Requirements be applicable to exempted securities (except municipals). The NASD noted that Section 50, Article III was approved by the Commission on September 8, 1995. See Amendment No. 4, supra note 5.

B. Suitability Interpretation— important considerations in determining advisers or bank trust departments; (2) Description of the Proposal the scope of a member’s suitability the general level of experience of the The NASD is proposing to adopt an obligations in making recommendations institutional customer in financial interpretation of the Board of to an institutional customer are the markets and specific experience with Governors—Suitability Obligations to customer’s capability to evaluate the type of instruments under Institutional Customers under Article investment risk independently, and the consideration; (3) the customer’s ability III, Section 2 of the Rules of Fair extent to which the customer is to understand the economic features of Practice. The NASD intends the exercising independent judgment in the security involved; (4) the customer’s proposed Suitability Interpretation to evaluating a member’s recommendation. ability to independently evaluate how clarify that the NASD’s suitability rule Thus, under the proposed market developments would affect the under Article III, Section 2(a) of the Interpretation, a member must security; and (5) the complexity of the Rules of Fair Practice is applicable to determine, based on information security or securities involved. institutional customers, while available to it, the customer’s capability With respect to the determination that recognizing that generally, a member’s to evaluate investment risk. In some a customer is making independent relationship with an institutional cases, the member may conclude that investment decisions, the NASD customer is different from the member’s the customer is not capable of making proposed several relevant factors. These relationship with retail customers. independent investment decisions in considerations include: (1) any written The proposed Suitability general. In other cases, the institutional or oral understanding that exists Interpretation states that the NASD’s customer may have general capability, between the member and the customer suitability rule is fundamental to fair but may not be able to understand a regarding the nature of the relationship dealing and is intended to promote particular type of instrument or its risk. between the member and the customer ethical sales practices and high The NASD states that if a customer is and the services to be rendered by the standards of professional conduct. either generally not capable of member; (2) the presence or absence of Members’ responsibilities under the evaluating investment risk or lacks a pattern of acceptance of the member’s Suitability Interpretation include having sufficient capability to evaluate the recommendations; (3) the use by the a reasonable basis for recommending a particular product, the scope of the customer of ideas, suggestions, market particular security or strategy, as well as member’s obligation under the views and information obtained from reasonable grounds for believing that suitability rule would not be diminished other members or market professionals, the recommendation is suitable for the by the fact that the member was dealing particularly those relating to the same customer to whom it is made. Members with an institutional customer.20 type of securities; and (4) the extent to are expected to meet the same high Members also must make a which the member has received from standards of competence, determination regarding whether the the customer current comprehensive professionalism, and good faith customer is exercising independent portfolio information in connection regardless of the financial circumstances judgment in its investment decision, with discussing recommended of the customer. that is, whether the customer’s transactions or has not been provided In its proposal filed with the investment decision will be based on its important information regarding its Commission, the NASD states that the own independent assessment of the portfolio or investment objectives. Suitability Interpretation is intended to opportunities and risks presented by a The NASD states that the factors provide guidance to members in potential investment, market factors and contained in the proposed Suitability fulfilling their customer-specific other investment considerations. The Interpretation are merely guidelines that suitability obligations, i.e., the manner proposed Suitability Interpretation will be utilized to determine whether a in which a member determines that a states that a member’s determination member has fulfilled its suitability recommendation is suitable for a that a customer is making independent obligations with respect to a specific institutional customer transaction. The particular customer.19 The manner in investment decisions will depend on inclusion or absence of any of the which a member fulfills this suitability the nature of the relationship that exists between the member and customer. factors is not dispositive of the obligation will vary depending on the A member’s determination of a determination of suitability. Such a customer and the specific transaction. customer’s capability to evaluate determination can only be made on a The NASD further states that the investment risk independently will case-by-case basis taking into proposed Suitability Interpretation and depend on an examination of the consideration all the facts and the factors contained therein are not customer’s capability to make its own circumstances of a particular member/ intended either to create a safe harbor investment decisions, including the customer relationship, assessed in the for members or a burdensome resources available to the customer to context of a particular transaction. evidentiary checklist. make informed decisions. The NASD The NASD states that it is important The proposed Suitability specified several factors relevant to to clarify when a member may consider Interpretation states that the two most making such a determination. These its suitability obligations fulfilled considerations include: (1) the use of 19 This interpretation does not address the pursuant to the guidelines provided by obligation related to suitability that requires that a one or more consultants, investment the proposed Suitability Interpretation. member have ‘‘* * * a ‘reasonable basis’ to believe Therefore, the proposed Suitability that the recommendation could be suitable for at 20 The NASD also states that a customer who Interpretation provides that where the least some customers.’’ In the Matter of the initially needed help understanding a potential broker-dealer has reasonable grounds for Application of F.J. Kaufman and Company of investment may ultimately develop an Virginia and Frederick J. Kaufman, Jr., 50 SEC 164 understanding and make an independent concluding that the institutional (1989). investment decision. customer is making independent 44106 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices investment decisions and is capable of letters addressed the proposed systems similar to the Consolidated independently evaluating investment Suitability Interpretation of the rule Quotation System (‘‘CQS’’) and the risk, then a member’s obligation to proposal. The NASD responded to most Intermarket Trading System (‘‘ITS’’).27 determine that a recommendation is of the comment letters in Amendment The NASD responded that it believes suitable for a particular customer is No. 3. the general concept of the Best fulfilled.21 A. Application of the Rules of Fair Execution Interpretation (e.g., that a Finally, for purposes of the proposed Practice to Government Securities member should seek in executing Suitability Interpretation, the NASD customer transactions to obtain the best states that the term ‘‘institutional 1. Prompt Receipt and Delivery price for the customer) 28 should apply customer’’ should not be arbitrarily Interpretation to the government securities market, just defined by referencing a threshold One commenter requested that the as it applies to all other markets subject institutional asset size or portfolio size ‘‘long sale’’ provisions of the Prompt to the NASD’s jurisdiction.29 The NASD or various statutory designations. Receipt and Delivery Interpretation,23 stated that it would further consider Rather, the NASD states that for which would require a member to make purposes of the Suitability whether an amendment to the Best affirmative determinations regarding Interpretation, an institutional customer Execution Interpretation is necessary to whether a customer is ‘‘long’’ the shall be any entity other than a natural clarify its position as it applies to security at the time the dealer is person. The NASD states that it believes government securities, but it considered purchasing a government security from the Interpretation is more appropriately such an amendment unnecessary at this a customer, prior to accepting a long applicable to an entity having at least time. sale from any customer, not apply to $10 million invested in securities in the transactions in government securities.24 3. Front Running Policy aggregate in its portfolio or under This commenter argued that an management. affirmative determination requirement One commenter sought clarification IV. Summary of Comments is contrary to the practice in the on whether and how the front running interpretation would apply to The Commission received 16 government securities market that permits a customer to sell a security to government securities brokers and comment letters from a total of 13 dealers.30 The commenter noted that the commenters.22 Most of the comment a dealer and then cover that sale with a subsequent purchase or repurchase interpretation was designed for the equity securities. In response, the NASD 21 See supra note 19. transaction in the ‘‘specials market.’’ 22 The Commission received letters from the The commenter noted that this practice noted that its front running following: (1) Brian C. Underwood, Vice President- has been recognized by the Board of interpretation was designed for the Director of Compliance, A.G. Edwards & Sons, Inc., Governors of the Federal Reserve equity securities markets and, to Jonathan G. Katz, Secretary, SEC, dated November 14, 1995 (‘‘Edwards Letter’’); (2) David J. System. In response to this comment, accordingly, amended its proposal so Master, Chairman and CEO, Coastal Securities Ltd., the NASD amended its proposal to that the front running interpretation to Jonathan G. Katz, Secretary, SEC, dated exempt government securities from the would not apply to the government November 28, 1995 (‘‘Coastal Letter’’); (3) Betsy long sales requirements.25 securities market.31 The NASD, Dotson, Assistant Director, Federal Liaison Center, Government Finance Officers Association, to 2. Best Execution Interpretation however, stated that because the Jonathan G. Katz, Secretary, SEC, dated November member conduct probihited by the front 14, 1995 (‘‘GFOA Letter No. 1’’); (4) Thomas M. One commenter had reservations running interpretation may occur in the Selman, Associate Counsel, Investment Company about the application of the ‘‘best government securities market under Institute, to Jonathan G. Katz, Secretary, SEC, dated execution’’ concept to government November 14, 1995 (‘‘ICI Letter’’); (5) Jane D. Carlin, certain circumstances, it will review the securities that are executed on a Principal and Counsel, Morgan Stanely & Co. application of the front running principal basis at a ‘‘net price.’’ 26 Two Incorporated, to Jonathan G. Katz, Secretary, SEC, interpretation to this market. In the dated December 5, 1995 (‘‘Morgan Stanley Letter’’); commenters noted that members would (6) Paul Saltzman, Senior Vice President and have difficulty complying with the interim, the NASD reminded members General Counsel, Public Securities Association, to procedural requirements of the best that actions for front running conduct Jonathan G. Katz, Secretary, SEC, dated November occurring in the government securities 30, 1995 (‘‘PSA Letter No. 1’’); (7) Scott H. Rockoff, execution concept because the Managing Director, Director of Compliance, and government securities market lacks market may be brought under Article III, Assistant General Counsel, Nomura Securities Section 1 of the Rules of Fair Practice.32 International, Inc., to Jonathan G. Katz, Secretary, Treasurers, to Secretary, SEC, dated April 22, 1996 SEC, dated December 14, 1995 (‘‘Nomura Letter’’); (‘‘NASACT Letter’’); (14) C. Evan Stewart, 27 (8) Robert F. Price, Chairman, Federal Regulation See PSA Letter No. 1 and Winstar Letter, supra Chairman, Federal Regulation Committee, Zachary Committee, and Zachary Snow, Chairman, OTC note 22. Snow, Chairman, OTC Derivatives Products Derivatives Products Committee, Securities 28 See Article III, Section 1 of the Rules of Fair Committee, and Richard O. Scribner, Chairman, Industry Association, to Jonathan G. Katz, Self-Regulation and Supervisory Practices Practice. Secretary, SEC, dated December 17, 1995 (‘‘SIA Committee, Securities Industry Association, to 29 See Securities Exchange Act Release No. 36973, Letter No. 1’’); (9) David Rosenau, President, The Jonathan G. Katz, Secretary, SEC, dated April 23, supra note 14, at 11. Winstar Government Securities Company L.P., to 1996 (‘‘SIA Letter No. 2’’); (15) Sarah A. Miller, 30 Jonathan G. Katz, Secretary, SEC, dated December See PSA Letter No. 1, supra note 22. General Counsel, American Bankers Association 27, 1995 (‘‘Winstar Letter’’); (10) Steven Alan 31 See Securities Exchange Act Release No. 36973, and the American Bankers Association Securities Bennett, Senior Vice President and General supra note 14, at 12. Association to Jonathan G. Katz, Secretary, SEC, Counsel, Banc One Corporation, to Jonathan G. 32 dated April 24, 1996 (‘‘ABA Letter’’); and (16) Similarly, the NASD noted that the Katz, Secretary, SEC, dated April 16, 1996 (‘‘Banc William R. Rothe, Chairman, and John L. Watson Interpretation of the Board of the Governors One Letter’’); (11) Betsy Dotson, Assistant Director/ III, President, Security Traders Association, to regarding the trading ahead of customer limit orders Legislative Counsel, Federal Liaison Center, Jonathan G. Katz, Secretary, SEC, dated April 29, and the Interpretation of the Board of Governors— Government Finance Officers Association, to 1996 (‘‘STA Letter’’). trading Ahead of Research Reports, are drafted to Jonathan G. Katz, Secretary, SEC, dated April 22, 23 apply to equity securities. The NASD stated that it 1996 (‘‘GFOA Letter No. 2’’); (12) Paul Saltzman, See Article III, Section 1 of the Rules of Fair Senior Vice President and General Counsel, Public Practice. intends to review the application of these Securities Association, to Jonathan G. Katz, 24 See PSA Letter No. 1, supra note 22. Interpretations to the government securities market Secretary, SEC, dated April 22, 1996 (‘‘PSA Letter 25 See Securities Exchange Act Release No. 36973, because it believes that the conduct addressed by No. 2’’); (13) Marshall Bennett, President, National supra note 14, at 9. these Interpretations may occur under certain Association of State Auditors, Comptrollers and 26 See PSA Letter No. 1, supra note 22. circumstances in the government securities market. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44107

4. Article III, Section 23 of the Rules of The NASD agreed and amended the discriminate between institutional Fair Practice proposal.38 customers based on such factors.45 One commenter sought clarification B. Suitability Obligations to Institutional 2. Considerations in Determining the on the effect of the provision ‘‘Net Customers Scope of a Member’s Suitability Prices to Persons Not in Investment Obligations in Making Banking or Securities Business’’ on 1. General Comments Recommendations to an Institutional 33 Customer government securities transactions. In Most of the commenters agreed with response, the NASD determined that the the general principles expressed in the Several commenters had concerns requirements contained in Article III, Suitability Interpretation, although about the specific guidelines included Section 23 are superseded and more some commenters disagreed on the in the proposal that the NASD stated clearly provided for under: (i) Rule 10b– proper allocation of responsibility could be used by a member in 10 of the Act relating to Confirmation of between members and institutional determining the scope of the member’s Transactions; and (ii) Article III, Section customers for investment making suitability obligations. 25 of the Rules of Fair Practice relating decisions.39 Two commenters did not to Dealing with Non-Members.34 The (i) Member Determination Regarding the support the proposal.40 One commenter NASD amended the proposal to reflect Institutional Customer’s Capability to believed that the proposal would create this change. Evaluate Investment Risk Independently both greater confusion and uncertainty One commenter asserted that the 5. Article III, Section 35A of the Rules and additional duties for NASD relevance of the customer’s use of of Fair Practice/Schedule C to the By- members with respect to institutional consultants, investment advisers or a Laws accounts.41 The other commenter bank trust department would depend on One commenter requested believed that the proposal would the extent of the use of the outside clarification as to whether the proposed impose unnecessary regulatory burdens advice and what, if any, contractual 42 rule change would require a government on members. arrangement exists between the securities broker or dealer to register an One commenter believed that the customer and the outside adviser.46 This associated person as its ‘‘Compliance proposal would create confusion commenter questioned whether outside Registered Options Principal’’ under because it does not define the terms managers of investment pools and Part II, Section 2(f) of Schedule C to ‘‘recommendation’’ and ‘‘institutional trustees would fall within this comply with Section 35A(b) of the Rules investor.’’ 43 The NASD responded that guideline. In response, the NASD agreed of Fair Practice, which requires the neither term lent itself to definition. that the relevance of a customer’s use of registration of such a Principal to First, it noted that Article III, Section 2 professional advisers would depend on approve certain options advertisements, of the Rules of Fair Practice has been the extent of the use of such outside 47 sales materials, and other literature for applicable to members’ advice. Moreover, the NASD believes government securities options recommendations since the inception of that the proposed Suitability transactions.35 In response, the NASD the NASD and a significant amount of Interpretation would apply to any stated that it is currently reviewing the case law has developed from NASD delegated agents of the customer, issue of whether a ‘‘Compliance disciplinary actions with respect to this including outside managers for Registered Options Principal’’ should be 44 investment pools, trustees, and other provision. The NASD further believes 48 required for members that trade options agents. that defining the term One commenter stated that the on government securities. The NASD ‘‘recommendation’’ is unnecessary and usefulness of the customer’s general further noted that it intends to file a would raise many complex issues in the level of experience in the financial proposed rule change regarding this absence of the specific facts of a markets and with the type of registration issue and, therefore, the particular case. Second, the NASD instruments under consideration would NASD amended to Applicability Table believes that an objective definition of depend not only on the expertise of the to indicate that Article III, Section ‘‘institutional investor’’ would customer’s staff but also on the nature 35A(b) is ‘‘Not Applicable/Under arbitrarily discriminate between of the changing markets.49 This Review.’’ 36 institutional investors based on factors commenter also argued that the 6. Customer Account Statements such as asset size, portfolio size or relevance of a customer’s ability to institutional type. The NASD stated that understand economic features of a One commenter suggested that the the proposed Suitability Interpretation security would depend on the nature of implementation of Article III, Section 45 would provide guidance to members on information provided to the investor by (‘‘Customer Account Statements’’) be relevant considerations that should be the NASD member about the features of delayed for three months after the examined by a member in fulfilling its a specific instrument. The commenter effective date of the rule change to give suitability obligations to all institutional further contended that a customer’s affected members sufficient time to set customers and would not unfairly track record in making investment up appropriate procedures to comply decisions or an affirmative statement by 37 with the requirements of Section 45. 38 See Securities Exchange Act Release No. 36973, the customer that it has the ability to supra note 14, at 16. 39 33 See PSA Letter No. 1, supra note 22. See Coastal Letter, GFOA Letter No. 1, PSA 45 See id. at 39. 34 See Securities Exchange Act Release No. 36973, Letter Nos. 1 and 2, SIA Letter Nos. 1 and 2, Banc 46 See GFOA Letter No. 1, supra note 22. One Letter, NASACT Letter, STA Letter, and supra note 14, at 14. 47 See Securities Exchange Act Release No. Morgan Stanley Letter, supra note 22. 35 See PSA Letter, No. 1, supra note 22. 36973, supra note 14, at 26. 40 See Nomura Letter and ABA Letter, supra note 36 Article III, Section 35A(b) will not be 48 In fact, the Suitability Interpretation 22. applicable to options advertisements, sales specifically states that where a customer has 41 materials and other literature for government See Nomura Letter, sura note 22. delegated decision-making authority to an agent, securities options transactions during this interim 42 See ABA Letter, supra note 22. such as an investment adviser or a bank trust review period. See Securities Exchange Act Release 43 See Nomura Letter, supra note 22. department, the Interpretation shall be applied to No. 36973, supra note 14, at 15. 44 See Securities Exchange Act Release No. 36973, the agent. 37 See PSA Letter No. 1, supra note 22. supra note 14, at 39–40. 49 See GFOA Letter No. 1, supra note 22. 44108 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices evaluate independently the effect of the amended the proposal to replace the institution’s holdings may affect the market on a security, are not reliable phrase ‘‘intends to exercise’’ with the institution’s ability to trade certain indicators of a customer’s ability to phrase ‘‘is exercising’’ to eliminate any portions of the portfolio or may independently evaluate the effects of the confusion.54 adversely affect the market for the market on the security. The NASD One commenter sought clarification institution’s holdings.61 This agreed that the relevance of the factors that the lack of a written agreement commenter recommended first, listed in the proposed Suitability would not work against investors in replacing this factor with a requirement Interpretation would vary depending on disputed cases and that the inclusion of to provide ‘‘material relevant to a numerous circumstances.50 The NASD written or oral understandings as a particular transaction’’ and, second a also noted its belief that a customer’s relevant consideration in the proposal requirement that the broker-dealer make track record and an affirmative does not indicate a preference for such a reasonable request to obtain relevant statement by the customer regarding its agreements.55 The NASD responded portfolio or investment objectives capability are helpful, but not that whereas developing such information. The NASD agreed that any dispositive, factors pertaining to the agreements with a customer may be material relevant to a particular customer’s capability to evaluate helpful to a member in determining its transaction provided by a customer investment risk dependently. suitability obligations to the customer, would assist members in fulfilling their One commenter suggested three the existence or absence of such an suitability obligations under the additional factors that should be agreement is not intended to create a proposed Interpretation. The NASD considered by a member in determining presumption as to whether the member believes, however, that the ‘‘material whether an institutional customer has has or has not fulfilled its suitability information’’ referred to by the the capability to evaluate investment obligation.56 commenter would include current risk independently: (1) whether the One commenter argued that the factor comprehensive portfolio information in customer is engaged in either the referencing the ‘‘presence or absence of connection with the transaction. The financial industry or the business of a pattern of acceptance of a member’s NASD also believes that the more managing its or others’ investments, (2) recommendation’’ was too broad and specific guideline is appropriate even whether the customer has in-house should refer only to captive accounts, though a customer may not be willing investment professionals charged with where a single broker-dealer is to provide such information.62 responsibility for recommending or effectively controlling substantially all making investment decisions on behalf investment decisions of an account.57 (iii) Portfolio Threshold of the customer, and (3) whether the The NASD disagreed and stated that the One commenter believed that the $10 customer independently adopted presence or absence of a pattern of million portfolio designation is contrary investment guidelines and whether the customer acceptance of a member’s to the language in the congressional customer provides explicit investment recommendation should be considered report on the GSAA and contradicts the guidelines to the member broker- whenever appropriate and reasonable intent of the suitability rule.63 This dealer.51 In response, the NASD and should not be limited to ‘‘captive commenter argued that the portfolio acknowledged that additional factors 58 accounts.’’ designation would be difficult to apply may be valuable to members in One commenter believed that the and requested clarification on how the considering whether an institutional factor referencing the use by the customer is capable of evaluating standard would be implemented in the customer of ideas, suggestions and context of a government unit. The investment risk independently or may information obtained from other NASD be pertinent to a specific situation.52 commenter also urged that if the NASD members or market professionals may retains the portfolio designation, an (ii) Member Determination Regarding discourage investors from becoming amount higher than $10 million be used 59 Whether the Institutional Customer is more informed and responsible. The because the Interpretation Exercising Independent Judgment NASD disagreed, stating that inappropriately could be applied to institutional customers often rely on One commenter pointed out that one small governmental entities with financial information other than that portfolios that are nominal in the of the factors in determining the scope provided by the member and may be of a member’s suitability obligation—the context of government operations. The required by a fiduciary obligation to do commenter further requested more extent to which the customer intends to 60 so. explanation on how institutional exercise independent judgment—is One commenter believed that a inconsistent with a member’s obligation investors with a portfolio less than the member’s consideration of ‘‘the extent designated amount will be treated. The to determine that a customer is making to which the member has received from 53 NASD responded that there is greater independent investment decisions. In the customer current comprehensive response to this comment, the NASD likelihood that the member could apply portfolio information in connection the proposed Suitability Interpretation with discussing recommended 50 to an institutional customer with at least See Securities Exchange Act Release No. 36973, transactions’’ may not be prudent for the supra note 14, at 27. $10 million invested in securities in the 51 See Morgan Stanley Letter, supra note 22. institutional investor with concerns that aggregate in its portfolio and/or under Another commenter believed that institutions with a member’s detailed knowledge of the the first two characteristics are capable of making management, but it had not intended to their own independent investment decisions. See create a presumption either above or 54 See Securities Exchange Act Release No. 36973, SIA Letter Nos. 1 and 2, supra note 22. This supra note 14, at 22. below that aggregate dollar amount that commenter suggested that the proposal be amended 55 the Interpretation will apply to a to state that a rebuttable presumption exists that See GFOA Letter No. 1, supra note 22. institutions are capable of making their own 56 See Securities Exchange Act Release No. 36973, independent investment decisions. See SIA Letter supra note 14, at 28. 61 See GFOA Letter No. 1, supra note 22. Nos. 1 and 2, supra note 22. For more discussion 57 See Morgan Stanley Letter, supra note 22. 62 See Securities Exchange Act Release No. 36973, on rebuttable presumptions, see infra Section (B)(3) 58 See Securities Exchange Act Release No. 36973, supra note 14, at 30. The NASD notes that all the of the Summary of Comments. supra note 14, at 27–28. factors are guidelines and the inclusion or absence 52 See Securities Exchange Act Release No. 36973, 59 See GFOA Letter No. 1, supra note 22. of any factor is not dispositive of the suitability supra note 14, at 24–25. 60 See Securities Exchange Act Release No. 36973, interpretation. 53 See Morgan Stanley Letter, supra note 22. supra note 14, at 29. 63 See GFOA Letter No. 1, supra note 22. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44109 particular institutional customer.64 that a member may reasonably conclude institutional investor employs an Moreover, the NASD stated that in that an institutional customer with less investment professional, the investment calculating the $10 million test, it than $50 million in assets is capable of professional should bear the intends to look to SEC Rule 144A for understanding the risks of the responsibility for the investment guidance. recommended transaction and intends decisions it makes.72 One commenter recommended that to exercise reasonable judgment in In response, the NASD stated that it the $10 million threshold not be evaluating the member’s would not be appropriate to create a safe considered for registered investment recommendation, but the member harbor for member’s suitability companies accounts.65 This commenter would still have to gather information obligations or to change or reduce argued that all registered investment required by Article III, Section 2(b) from members’ obligations under the companies are equally subject to the that customer. The commenter suitability rule in Article III, Section 2 Investment Company Act of 1940 and suggested that the definition of non- of the Rules of Fair Practice.73 The must operate within the same institutional customer be amended by NASD stated that there are no safe competitive environment in which they eliminating the reference to Section harbors in the Suitability are expected to obtain professional 21(c)(4) and incorporating a definition Interpretation.74 experienced investment management for of institutional customer in Section 2(b) Rather than a safe harbor, one their shareholders. The commenter that is consistent with the proposed commenter suggested that the proposal argued that an interpretation that Suitability Interpretation. provide a rebuttable presumption that a liberalizes the suitability requirements In response, the NASD stated that the member’s recommendations to of its members with respect to larger proposed rule change to Article III, institutional customers are suitable.75 investment companies could Section 2(b) of the Rules of Fair Practice This commenter believed that the inadvertently lead to discrimination is meant to distinguish this requirement existence of an advisory relationship against smaller investment companies. from the suitability obligations under should be the primary consideration Another commenter also believed that Article III, Section 2(a) of the Rules of and that, absent extraordinary the proposal would have an adverse Fair Practice and the proposed circumstances, an advisory relationship effect on smaller institutional clients by Suitability Interpretation.69 The NASD should be deemed to exist only if the reducing competition for these stated that fulfilling the suitability parties evidence such an agreement in accounts.66 obligation under the proposed writing.76 The NASD responded that the Suitability Interpretation would not In response, the NASD stated that a reference to $10 million does not imply reduce the member’s other obligation member’s suitability obligation under a definitive threshold that distinguishes under Article III, Section 2(b) to Article III, Section 2(a) of the Rules of capable from non-capable institutional customers that do not qualify as Fair Practice remains with the member customers.67 Therefore, the NASD institutional accounts under Article III, until fulfilled and therefore, the creation believed that the $10 million threshold Section 21(c)(4) of the Rules of Fair of a rebuttable presumption through the should not result in inadvertent Practice, even though some of these fulfillment of certain procedures would 77 discrimination against investment customers may be considered not be appropriate. Moreover, the companies or other institutional institutional customers according to the NASD stated that such a rebuttable customers with less than $10 million proposed Suitability Interpretation. presumption would only be acceptable invested in securities. if a definable class of institutional One commenter criticized the 3. Safe Harbor/Rebuttable Presumption investors could be identified that would definition of non-institutional customer Several commenters were concerned not need the protection of the NASD’s as being too broad and stated that the that the proposal would in effect make information-gathering requirement in the member a guarantor of a 72 See Edwards Letter, Morgan Stanley Letter, Article III, Section 2(b) should only PSA Letter No. 1, and STA Letter, supra note 22. recommended investment’s One commenter, however, disagreed because there apply to customers that are not performance and inappropriately shift may be variation in the type and degree of services considered institutional customers responsibility for poor investment offered by a third-party professional to its clients. under the proposed Suitability decisions to the broker-dealer.70 Some See GFOA Letter No. 2, supra note 22. Interpretation.68 This commenter argued commenters recommended that the 73 See Securities Exchange Act Release No. 36973, supra note 14, at 30–31. proposal include a safe harbor for 74 See id. at 45. 64 See Securities Exchange Act Release No. 36973, broker-dealers that comply with the 75 See Nomura Letter, supra note 22. One supra note 14, at 32. proposed interpretation.71 Other commenter stated that there should be a cutoff for 65 See ICI Letter, supra note 22. commenters believed that if the institutions with more than a stated amount of 66 See Edwards Letter, supra note 22. assets under management. See STA Letter, supra 67 See Securities Exchange Act Release No. 36973, note 22. One commenter argued, however, that supra note 14, at 34. Investment Advisers Act of 1940; or (3) any other there should be no rebuttable presumption that 68 See PSA Letter No. 1, supra note 22. Pursuant entity (whether a natural person, corporation, recommendations made to institutional investors to Article III, Section 2(b), prior to the execution of partnership, trust, or otherwise) with total assets of are suitable. See GFOA Letter No. 2, supra note 22. a transaction recommended to a non-institutional at least $50 million. Another commenter agreed that the broker-dealers customer (other than transactions with customers 69 See Securities Exchange Act Release No. 36973, should be held responsible for their where investments are limited to money market supra note 14, at 35. recommendations to institutional investors. See mutual funds), a NASD member must make 70 See Nomura Letter, Edwards Letter, Morgan NASACT Letter, supra note 22. reasonable efforts to obtain information concerning: Stanley Letter, and ABA Letter supra note 22. One 76 See Nomura Letter, supra note 22. Moreover, (1) the customer’s financial status; (2) the commenter was concerned that market participants one commenter argued that three particular customer’s tax status; (3) the customer’s investment were inappropriately using the suitability concept situations warrant reconsideration as determinative objectives; and (4) such other information used or to make the dealer the guarantor of an investment’s factors or rebuttable presumptions that the member considered to be reasonable by such member or performance. See PSA Letter No. 1, supra note 22. has fulfilled its suitability obligation: the presence registered representative in making 71 See ABA Letter and Coastal Letter, supra note of an investment advisor; transactions executed recommendations to the customer. For purposes of 22. Alternatively, one of the commenters believed consistent with investment guidelines or permitted this information gathering requirement, an that compliance with the interpretative guidance investment statutes; and the execution of a written institutional customer means: (1) a bank, savings should create a rebuttable presumption that a agreement. See PSA Letter Nos. 1 and 2, supra note and loan association, insurance company, or member’s suitability obligations with respect to 22. registered investment company; (2) an investment institutional customers have been satisfied. See 77 See Securities Exchange Act Release No. 36973, adviser registered under Section 203 of the ABA Letter, supra note 22. supra note 14, at 40. 44110 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices suitability rule under all conceivable Section 18 of the NASD’s Rules of Fair Pursuant to this legislation, the NASD circumstances. The NASD was unable to Practice.84 The NASD stated that Article has proposed rule changes to impose for define such a class.78 III, Section 2(a) of the Rules of Fair the first time various provisions of the Practice does not contain books and Rules of Fair Practice to transactions in 4. Additional Obligations on Members records requirements and, similarly, the exempted securities, including Several commenters argued that the proposed Suitability Interpretation does government securities, other than NASD’s proposed Suitability not contain books and records municipals. The GSAA also stimulated Interpretation would impose new or requirements.85 The NASD warned, the NASD to provide further guidance to additional duties on its members. One however, that members are responsible members on their suitability obligations commenter was concerned that the for demonstrating the fulfillment of in Section 2, Article III when making proposal would create an obligation to their suitability obligation under Article recommendations to institutional document affirmative determinations of III, Section 2(a) in NASD examinations customers.88 the factors referenced under the two and that members would have the same For the reasons discussed below, the principal considerations because it responsibility under the proposed Commission has determined that the believed that the proposal implies that Suitability Interpretation. The NASD NASD’s proposals are consistent with NASD examiners will expect to see an also stated that it had intended to the requirements of the Act and the affirmative determination on all or some eliminate the appearance that the listed rules and regulations thereunder of the described criteria for compliance factors create an evidentiary checklist applicable to the NASD and, in purposes.79 Another commenter for NASD compliance review. The particular, the requirements of Section believed that these analyses will greatly NASD stated that the responsibilities of 15A 89 and the rules and regulations increase a member’s responsibility to the member are limited under Article thereunder.90 The Commission believes gather detailed information about its III, Section 2(a) of the Rules of Fair that the proposed rule change is institutional customers and to keep Practice in that the member is not the consistent with the Section 15A(b)(6) extensive records of any information guarantor of the investment nor requirements that the rules of the gathered.80 reponsible for the absence of association be designed to prevent One commenter requested that the information not provided by the fraudulent and manipulative acts and NASD incorporate explicit language institutional customer. practices, promote just and equitable stating that it did not intend to create: principles of trade, remove (1) a checklist for NASD compliance V. Discussion impediments to and perfect the mechanism of a free and open market examinations; (2) an affirmative The government securities market, and a national market system and, in obligation on NASD members to make widely considered to be the largest and general, to protect investors and the trade-by-trade or continual suitability most liquid securities market in the public interest.91 determinations based on the designated world, has enabled the U.S. government considerations; or (3) new NASD to meet its large financing needs in an A. Application of the Rules of Fair member suitability determination effective manner. In 1991, however, Practice to Exempted Securities Except documentation or record maintenance certain events threatened the public Municipals and Merger of Government 81 requirements. confidence in the fairness and integrity Securities Rules On the other hand, other commenters of this market and prompted the To implement the authority conferred supported imposing additional Treasury Department, the Board of obligations on members. One by the GSAA to address abusive and Governors of the Federal Reserve manipulative practices in the commenter suggested that the proposal System and the Commission to require the broker-dealer to provide government securities market, the undertake an informal review of the NASD has proposed to merge certain certain specific types of information to government securities market.86 As a customers with regard to specific provisions of its current Government result of this review, and Congressional Securities Rules into the Rules of Fair transactions such as an instrument’s inquiries into the government securities Practice, and to apply certain provisions behavior under a variety of conditions, market in general, in 1993 Congress of the Rules of Fair Practice to exempted types of risk incurred with certain decided to modify the limited regulatory securities (except municipals) for the instruments, and valuation structure in the Government Securities first time. The Commission believes that information.82 This commenter also Act of 1986 by enacting the GSAA. the application of the various sections of supported the inclusion of an the NASD’s Rules of Fair Practice, affirmative duty to inquire about a In the GSAA, Congress provided the which the NASD deems to be customer’s risks and constraints, NASD and bank regulators with the appropriate and necessary for regulating including any investment policies.83 authority to issue rules aimed at The NASD responded that it was not preventing fraudulent or manipulative statutory restrictions on the authority of such imposing through the proposed acts and practices and to promote just and equitable principles of trade in the associations in the government securities market’’). Suitability Interpretation additional 88 87 The Office of the Comptroller of the Currency duties on members that are not already government securities market. (‘‘OCC’’), the Federal Deposit Insurance Corporation imposed by current Article III, Section (‘‘FDIC’’), and the Board of Governors of the Federal 84 See Securities Exchange Act Release No. 36973, Reserve System (‘‘Board’’) also have solicited 2 of the Rules of Fair Practice, general supra note 14, at 25. comment on rules, largely similar to those proposed anti-fraud principles in Section 10(b) of 85 See id. at 38. by the NASD, to apply to government securities the Act and other provisions of the 86 The Treasury Department, the Board of brokers and dealers under the jurisdiction of these federal securities laws, or in Article III, Governors of the Federal Reserve System, and the agencies. See Government Securities Sales Commission produced a report on this review of the Practices, 61 FR 18470 (Apr. 25, 1996) (joint notice government securities market. See Joint Report on of proposed rulemaking). 78 See id. at 42. the Government Securities Market (Jan. 1992). 89 15 U.S.C. 78o–3. 79 See Nomura Letter, supra note 22. 87 H.R. Rep. 103–255, 103d Cong., 1st Sess. (1993) 90 The GSAA also requires the Commission to 80 See ABA Letter, supra note 22. (Congress believed that ‘‘it is appropriate to extend consult with the Treasury Department prior to the 81 See SIA Letter Nos. 1 and 2, supra note 22. normal sales practice standards and other registered adoption of the NASD proposal. The Commission 82 See GFOA Letter No. 1, supra note 22. securities association rules to transactions in the has consulted with the Treasury Department. 83 See GFOA Letter No. 2, supra note 22. government securities market by removing the 91 15 U.S.C. 78o–3(b)(6). Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44111 transactions in exempted securities, will undertake a prompt and thorough comment in Notice to Members 94–62 including government securities, other evaluation and submit proposed rule (August 1994). Fourteen commenters than municipals, is consistent with the changes with the Commission as submitted 15 comment letters on the purposes of the Act and the intention of appropriate. draft proposals. In response to the 92 Congress in enacting the GSAA. B. Suitability Interpretation comments received, the NASD amended Under the proposal, the NASD has the proposal and published a second determined to exempt government The concept of suitability, rooted in draft for comment in Notice to Members securities transactions from certain notions of just and equitable principles 95–21 (April 1995). Sixteen comments provisions of the Rules of Fair Practice. of trade and the protection of investors, were received on the second draft. The The NASD found some provisions not to plays an important role in the scheme NASD, against, amended the proposal be applicable to the government of the federal securities laws. Suitability Interpretation in response to securities market while others will be Prohibitions against making unsuitable the comments received, before filing a considered for further review. A few of recommendations arise under the rules proposed interpretation with the the provisions under further review are of all self-regulatory organizations.96 Commission. The NASD provided especially worthy of note. They lay the foundation for good and further clarification and amendments to First, the NASD acknowledged that its sound business practices by broker- the proposal in March 1996, when current front running interpretation dealers and help avoid potential abusive Amendment No. 3 to the proposal was applies only to equity securities. The sales practices regarding customers. The filed. Thus, the final proposal currently NASD has committed, however, to NASD’s articulation of the suitability before the Commission reflects the review the application of its front principles as set forth in Article III, NASD’s effort to consider all comments running interpretation to the Section 2 of the Rules of Fair Practice on the numerous versions of the government securities market because has applied to members’ proposal and balance the issues raised the NASD believes that front running recommendations since the inception of in those comments. the NASD. Article III, Section 2(a) may occur in this market under certain The NASD’s Suitability Interpretation requires that in recommending to a circumstances.93 Moreover, in the is predicated on a determination that customer the purchase, sale or exchange interim, the NASD has represented that the two most important considerations of any security, a member must have actions for front running conduct in determining the scope of a member’s reasonable grounds for believing that occurring in the government securities suitability obligation in making market may be brought under its rule the recommendation is suitable for such customer upon the basis of the facts, if recommendations to an institutional requiring members to adhere to just and any, disclosed by such customer as to customer are (1) the customer’s equitable principles of trade.94 his other security holdings and financial capability to evaluate investment risk Second, with the proposed rule situation and needs. With the enactment independently, and (2) the extent to change, the NASD will not apply its of the GSAA, and NASD has decided to which the customer is exercising prohibitions against trading ahead of provide further guidance to members on independent judgment. The Suitability customer limit orders and trading ahead their suitability obligations and has Interpretation further describes factors of research reports to the government proposed guidelines for its members that may be relevant in a members securities market. As with the front regarding how members may fulfill their evaluation of these two important running interpretation, the NASD ‘‘customer-specific’’ suitability considerations. The NASD has intends to review the application of obligations when making emphasized that these factors are these interpretations to the government recommendations to institutional guidelines that will be utilized to securities market because the NASD customers.97 determine whether a member has believes that conduct addressed by the The current version of the Suitability fulfilled suitability obligations with interpretations may occur in this market Interpretation is the product of the respect to a specific institutional 95 under certain circumstances. In the NASD’s extensive consultation with customer transaction and that the meantime, the NASD will bring action broker-dealers, investors and other absence or inclusion of any of these for such conduct under its just and participants in the securities industry factors is not dispositive of the equitable principles of trade rule. over a period of several years. It reflects suitability determination. The Commission believes that the much discussion and great diversity of The Commission believes that the NASD’s determination to apply certain input by various parties. The first draft NASD’s approach to determining the of its general rules, only formerly of the proposed Suitability scope of a member’s suitability applicable to equity or corporate debt Interpretation was published for obligation in making recommendations securities, to government securities is to an institutional customer consistent with the Act, and that the 96 See, e.g., New York Stock Exchange Rule 405, appropriately responds to the varied NASD has made a reasonable NYSE Guide (CCH) ¶ 2405; American Stock nature of institutional customers and determination regarding which of its Exchange Rule 411, Amex Guide (CCH) ¶ 9431. See also Duker & Duker, 6 S.E.C. 386, 388 (1939). As the varied significance of a member’s general rules should be applicable to part of the obligation of fair dealing, all broker- recommendation for different government securities. With respect to dealers are required to have a reasonable basis for institutional customers. The NASD those provisions of the Rules of Fair believing that their securities recommendations are acknowledges, as does the Commission, Practice that the NASD plans to suitable for the customer in light of the customer’s financial needs, objectives, and circumstances. that the relationship between a broker- consider further for application to the 97 The NASD Suitability Interpretation will be dealer and an institutional customer government securities markets, the applicable to all securities, except for municipals. generally may be different in important Commission anticipates that the NASD Municipal Securities Rulemaking Board (‘‘MSRB’’) respects from the relationship a broker- rule G–19 governs the suitability obligations for municipal securities. Like Article III, Section 2 of dealer has with a non-institutional 92 See H.R. Rep. 103–255, 103d Cong., 1st Sess. the Rules of Fair Practice, MSRB rule G–19 makes investor. In the latter circumstance, a (1993). no distinction between institutional and non- 93 See Securities Exchange Act Release No. 36973, broker-dealer frequently has knowledge institutional customers in requiring that a broker, about the investment and its risks and supra note 14, at 12. dealer, or municipal securities dealer must have 94 See id. reasonable grounds for believing that a costs that are not possessed by or easily 95 See id. at 13. recommendation is suitable. available to the investor. Some 44112 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices sophisticated institutional customers, The NASD acknowledges that these presumption that applied to institutions however, may in fact possess both the considerations are not necessarily the that were likely to rely on a broker- capability to understand how a only relevant factors, but merely dealer’s guidance regarding a security particular securities investment could guidelines for use in determining could lead to serious abuses that are perform, as well as the desire to make whether a member has fulfilled its inconsistent with the purposes of the their own investment decisions, without suitability obligations with respect to a Act. For example, a safe harbor could reliance on the knowledge or resources specific institutional customer allow a broker-dealer to recommend a of the broker-dealer. Other investors that transaction. They neither create nor risky security to an institutional meet a definition of ‘‘institutional reduce a member’s suitability obligation investor without consideration of the customer’’ may not possess the requisite and their relevance would vary appropriateness of the investment for capability to understand the particular depending on numerous the investor, and despite knowing that investment risk, or may not be circumstances.99 The Commission the customer did not understand the exercising independent judgment in concurs with the NASD in this regard. product. Moreover, a safe harbor or a making a particular investment Moreover, these enumerated factors are rebuttable presumption that all decision, and so may be largely not meant to create a checklist, which institutions with similar amounts to dependent on the broker-dealer’s the Commission would consider invest possess similar or equal financial analysis and recommendation in inappropriate in these circumstances acumen, which has not proven to be the evaluating whether to purchase a because it could lead to a mechanical case. As one commenter noted, recommended security. application of the Interpretation without ‘‘institutional customers’’ could be The NASD proposal recognizes the adequate consideration by the broker- educational institutions, churches, varied nature of investor profiles, even dealer of whether the customer charities, or governments, which range among investors that meet some understands the transaction or product. from small special districts to large state definition of ‘‘institutional investor.’’ It Some commenters, believing that the governments, and the characteristics accommodates a wide range of suitability responsibility is already and portfolios of these customers vary relationships because it does not unevenly placed on broker-dealers, widely.101 A safe harbor or a rebuttable establish rigid thresholds or supported inclusion in the Suitability presumption would depend on the requirements, but rather provides its Interpretation of a safe harbor or a ability of the NASD to define objectively members with some reasonable factors rebuttable presumption. In keeping with a class of institutional investors that by which an NASD member can its purpose to provide guidance and not uniformly would not need the determine the nature of its relationship to create or reduce a member’s protections of the NASD’s suitability with a customer. The Interpretation suitability obligations, the NASD did rule. correctly recognizes that there can be not create a safe harbor or provide for The NASD, however, has not sought instances in which an institutional a rebuttable presumption in the to define such a class. Rather, the NASD customer possesses a general capability Suitability Interpretation.100 In response has taken a flexible approach in to understand certain kinds of to the arguments of some industry defining the term ‘‘institutional investments, but does not have the members that if an investor employs an investor’’ by not including financial requisite capability to understand the investment professional, that criteria in the term; for purposes of the particular investment under professional should wholly bear the Interpretation, an institutional customer consideration. In such a circumstance, responsibility for the investment may be any entity other than a natural the NASD appropriately notes that a decision it makes, the NASD clarified person. The Suitability Interpretation broker-dealer’s suitability obligation that while the institution would still be potentially would apply to all would not be diminished based solely covered by the suitability rule, the institutional investors, though more on the financial wherewithal of the factors analysis of the proposed appropriately to institutional investors customer. Suitability Interpretation would apply with portfolios of at least $10 million in The Commission also believes that the to any delegated agents of customers, securities. The NASD believes that factors enumerated in the Interpretation, including any professional advisers that excluding institutional investors from which could be relevant to the two an investor may employ. the protections of the suitability rule considerations, provide members with The Commission believes that the based on objective financial criteria appropriate points to consider in NASD’s decision not to create a safe would arbitrarily discriminate among institutional investors based on factors satisfying their suitability obligations. harbor or rebuttable presumption is such as asset size, portfolio size or Some commenters were concerned consistent with the purposes of the Act. institutional type that are not about the relevance of, and the proper A safe harbor or a rebuttable necessarily determinative of financial weight to be given to, the considerations sophistication. The Commission listed. Some commenters also expressed institution. See Securities Exchange Act Release No. 36973, supra note 14, at 32, 34. The Commission believes that the NASD’s choice not to concern regarding the specific agrees that the $10 million portfolio designation rely on objective criteria that may mask application of these considerations.98 will not discriminate against certain institutional what is really an unsophisticated customers nor is it contrary to the language of the investor is reasonable in the context of 98 For example, some commenters expressed Congressional report on the GSAA. The $10 million concern about the $10 million portfolio designation. portfolio designation does not create a presumption a standard that incorporates factors that A few commenters believed that such a threshold that institutions that exceed the $10 million reflect the nature of the investor, and may lead to discrimination against smaller portfolio amount satisfy the Interpretation’s factors where the suitability of the and thus are not covered by the protections of the institutions or investments companies. One recommendation itself depends on the commenter believed that the GSAA prohibited such suitability rule; rather, the Interpretation indicates a portfolio designation. The NASD has represented that the analysis of the suitability obligation to be nature of the investor. Categorizing that it had not intended to create a presumption conducted using the factors set forth in the investors by an isolated financial that the Interpretation would apply to a particular interpretation is more appropriate for these larger criteria may improperly attribute the institutional customer either above or below the institutions than for institutions with a smaller capability to evaluate investment risk aggregate dollar amount or to imply that the $10 portfolio. million constituted a definitive threshold in 99 See Securities Exchange Act Release No. 36973, independently and the exercise of determining whether a broker-dealer’s suitability supra note 14, at 27. obligation was satisfied in dealing with a particular 100 See id. at 40, 45. 101 See GFOA Letter No. 2, supra note 22. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44113 independent judgment to an customer dealer a guarantor, which the there is good cause, consistent with without an appropriate analysis of the Commission believes is appropriate. Section 6(b)(5) of the Act, to accelerate investor’s true characteristics.102 Moreover, the NASD has committed approval of Amendment Nos. 4 and 5. Moreover, in view of the great to continuing its examination of diversity of institutional customers, the members for compliance with the VI. Solicitation of Comments Interpretation affords broker-dealers the suitability obligations under Article III, Interested persons are invited to Section 2(a) and, upon the approval of flexibility to negotiate understandings submit written data, views, and the Interpretation, members’ compliance and terms with a particular customer. arguments concerning Amendment Nos. with the Interpretation.103 The Such agreements, freely negotiated 4 and 5. Persons making written Commission expects the NASD to between consenting parties, can be submissions should file six copies useful in establishing, prior to a extend its examinations to members’ thereof with the Secretary, Securities transaction, the obligations and compliance with the Interpretation once and Exchange Commission, 450 Fifth responsibilities of both parties. The it becomes effective. Street N.W., Washington, D.C. 20549. NASD’s approach assists broker-dealers Finally, the Commission finds good Copies of the submission, all subsequent and customers to define their own cause for approving Amendment Nos. 4 amendments, all written statements expectations and roles with respect to and 5 to the proposed rule change prior with respect to the proposed rule their specific relationship. to the thirtieth day after the date of Some industry members were publication of notice of filing thereof. change that are filed with the concerned that the Interpretation would The Exchange’s proposal was published Commission, and all written create greater confusion and uncertainty in the Federal Register for the full communications relating to the and additional duties on broker-dealers. statutory period.104 Amendment No. 4 proposed rule change between the Industry members were especially merely clarifies the new numbering of Commission and any person, other than concerned that the proposed the NASD Manual and proposes to those that may be withheld from the Interpretation would impose an apply Section 50, Article III, to public in accordance with the obligation on members to document and transactions in exempted securities provisions of 5 U.S.C. 552, will be retain extensive records of information (except municipals). The NASD’s available for inspection and copying at gathered or expose them to NASD adoption of reporting requirements in the Commission’s Public Reference compliance examinations based on a Section 50, Article III, was the product Section, 450 Fifth Street, N.W., ‘‘checklist.’’ Again, the NASD of a review by the NASD and the New Washington, D.C. 20549. Copies of such represented that it was not imposing York Stock Exchange, which was filing will also be available for through the proposed Interpretation undertaken because of concerns on the inspection and copying at the principal additional duties on members that are part of the Commission and others over office of the Exchange. All submissions not already imposed by the NASD’s the frequency and severity of sales should refer to File No. SR–NASD–95– 105 suitability rules, general anti-fraud practices abuses. The Commission 39 and should be submitted by provisions of the federal securities laws, approved NASD adoption of Section 50, September 17, 1996. Article III stating that the reporting or Article III, Section 18 of the NASD’s VII. Conclusion Rules of Fair Practice. The NASD requirements will provide important confirmed that the proposed regulatory information that will assist in In conclusion, the Commission Interpretation does not impose a books the detection and investigation of sales believes that the NASD’s proposal to and records requirement nor does it practice violations. Therefore, the impose the Rules of Fair Practice to create an evidentiary checklist for Commission believes that applying this transactions in exempted securities NASD compliance review. The NASD’s provision to transactions in exempted other than municipals, and to provide reassurances that these considerations securities, including government further guidance to members on their are provided merely for guidance securities, other than municipals is suitability obligations in Section 2, purposes and not to impose any consistent with Congress’ mandate to Article III when making additional duties or to reduce any the NASD to extend its sales practice recommendations to institutional existing obligations should alleviate the standards and other rules to address customers is consistent with the abusive and manipulative practices in commenters’ concerns regarding the purposes of the Act and the GSAA. the government securities market. specific application of the Especially with respect to the proposed Moreover, Amendment No. 5 merely Interpretation. Moreover, the NASD has suitability Interpretation, the NASD has clarifies and reminds members that its repeatedly indicated that the undergone an extensive consultative rules requiring members to adhere to Interpretation does not make the broker- process, whereby interested parties were just and equitable principles of trade able to participate in the development of apply to conduct that may violate the 102 In testimony before the Subcommittee on the Interpretation. The Commission Fair Prices and Commissions provision Telecommunications and Finance Committee on believes that the suitability and the Mark-Up Policy. The Commerce, SEC Chairman Arthur Levitt testified Interpretation is a reasoned approach to against a provision in the proposed legislation that Commission believes that this the concept of suitability, which fosters would crate a presumption that a broker-dealer is clarification is not substantive because not liable for investment decisions of institutional an environment for dialogue between the rule requiring that members adhere clients unless the parties have contracted to the broker-dealers and customers regarding to just and equitable principles of trade contrary. Chairman Levitt testified that the the nature of their relationship, and, presumption under the federal securities laws that would have applied to such conduct therefore, should promote the protection broker-dealers generally are responsible for making regardless of this clarification. Based on suitability recommendations, whether their clients of investors. are institutional or individual investors, should be the above, the Commission finds that maintained. See Testimony of Arthur Levitt, It is therefore ordered, pursuant to Chairman, U.S. Securities and Exchange 103 See Securities Exchange Act Release No. Section 19(b)(2) of the Act,106 that the Commission, Concerning H.R. 2131, The ‘‘Capital 36973, supra note 14, at 38. proposed rule change (SR–NASD–95– Markets Deregulation and Liberalization Act of 104 See Securities Exchange Act Release Nos. 39) is approved. 1995,’’ before the Subcomm. on 36383 and 36973, supra notes 9 and 14. Telecommunications and Finance Committee on 105 See Securities Exchange Act Release No. Commerce (Nov. 30, 1995). 36211 (Sept. 8, 1995) 60 FR 48182. 106 15 U.S.C. 78s(b)(2). 44114 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

For the Commission, by the Division of Margaret H. McFarland, Market Regulation, pursuant to delegated Deputy Secretary. authority.107

EXHIBIT 1.ÐOLD-TO-NEW CONVERSION CHART

Former provision New number

By-Laws ...... Unchanged

******* Schedules to the by-laws: Schedule A ...... Unchanged

******* Schedule C ...... 1000

******* II. Registration of Principals ...... 1020

******* (2) Categories of Principal Registration ...... 1022

******* VI. Persons Exempt from Registration ...... 1060

******* Rules of fair practice ...... Titled deleted Article I: Adoption and application ...... 0110

******* 4. Effect on Transactions in Exempted Securities ...... 0114 5. Applicability ...... 0115

*******

CONDUCT RULES

Article IIIÐRules of Fair Practice 1. Business Conduct of Members ...... 2110 Interpretation on Execution of Retail Transactions in the Over-the-Counter Market ...... 2320 Interpretation on Prompt Receipt and Delivery of Securities ...... 3370 Interpretation on Forwarding of Proxy and Other Materials ...... 2260 Interpretation on ``Free-Riding and Withholding'' ...... IM±2110±1 Interpretation on Trading Ahead of Customer Limit Orders ...... IM±2110±2 Interpretation on Front Running Policy ...... IM±2110±3 Interpretation on Trading Ahead of Research Reports ...... IM±2110±4 2. Recommendations to Customers ...... 2310 Policy on Fair Dealing with Customers ...... IM±2310±2 3. Charges for Services Performed ...... 2430 4. Fair Prices and Commissions ...... 2440 Interpretation on NASD Mark-Up Policy ...... IM±2240 5. Publication of Transactions and Quotations ...... 3310 Interpretation on Manipulative and Deceptive Quotations ...... IM±3310 6. Offers at Stated Prices ...... 3320 Policy with Respect to Firmness of Quotations ...... IM±3320 7. Disclosure of Price in Selling Agreements ...... 2770 8. Securities Taken in Trade ...... 2730 Interpretation on Safe Harbor and Presumption of Compliance ...... IM±2730 9. Use of Information Obtained in Fiduciary Capacity ...... 3120 10. Influencing or Rewarding Employees of Others ...... 3060 11. Payment Designed to Influence Market Prices, Other than Paid Advertising ...... 3330 12. Disclosure on Confirmations ...... 2230 Explanation on ``Third Market Confirmations'' ...... IM±2230 13. Disclosure of Control ...... 2240 14. Disclosure of Participation or Interest in Primary or Secondary Distribution ...... 2250 15. Discretionary Accounts ...... 2510 16. Offering ``At the Market'' ...... 2760 17. Solicitation of Purchases on an Exchange to Facilitate a Distribution of Securities ...... 2780 18. Use of Fraudulent Devices ...... 2120 19. Customers' Securities or Funds ...... 2330 Explanation of Paragraph (d) of Section 19 ...... IM±2330 20. Installment or Partial Payment Sales ...... 2450

107 17 CFR 200.30–3(a)(12). Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44115

EXHIBIT 1.ÐOLD-TO-NEW CONVERSION CHARTÐContinued

Former provision New number

21. Books and Records ...... 3110 22. Disclosure of Financial Condition ...... 2270 Resolution on Requirements of Members to Furnish Recent Financial Statement to Other Members ...... 2910 23. Net Prices to Persons Not in Investment Banking or Securities Business ...... 2410 24. Selling Concessions ...... 2740 Interpretation on Services in Distribution ...... IM±2740 25. Dealing with Non-Members ...... 2420 Interpretation on Transactions Between Members and Non-Members ...... IM±2420±1 26. Investment Companies ...... 2830 27. Supervision ...... 3010 28. Transactions for or by Associated Persons ...... 3050 29. Variable Contracts of an Insurance Company ...... 2820 30. Margin Accounts ...... 2520 31. Securities ``Failed to Receive'' and ``Failed to Deliver'' ...... 3210 32. Fidelity Bonds ...... 3020 33. Options ...... 2860 Interpretation on Opening Accounts for Options Customers ...... IM±2860±2 34. Direct Participation Programs ...... 2810 35. Communications with the Public ...... 2210 Guidelines Regarding Communications with the Public about Collateralized Mortgage Obligations (CMOs) ...... IM±2210±1 Guidelines Regarding Communications with the Public about Variable Life Insurance and Variable Annuities ...... M±2210±2 Guidelies for the Use of Rankings in Investment Companies Advertisements and Sales Literature ...... M±2210±3 35A. Options Communications with the Public ...... 2220 36. Transactions with Related Persons ...... 2750 Interpretation on Transactions with Related Persons ...... IM±2750 37. [Reserved] ...... 38. Regulation of Activities of Members Experiencing Financial and/or Operational Difficulties ...... 3130 Explanation on Restrictions on a Member's Activity ...... IM±3130 39. Approval of Change in Exempt Status under SEC Rule 15c3±3 ...... 3140 40. Private Securities Transactions ...... 3040 41. Short-Interest Reporting ...... 3360 42. Prohibition on Transactions During Trading Halts ...... 3340 43. Outside Business Activities ...... 3030 44. The Corporate Financing Rule ...... 2710 45. Customer Account Statements ...... 2340 46. Adjustment of Open Orders ...... 3220 47. Clearing Agreements ...... 3230 48. Short Sale Rule ...... 3350 Interpretation on Short Sale Rule ...... IM±3350 49. Primary Nasdaq Market Maker Standards ...... 4612 50. Reporting Requirements ...... 3070

*******

COMPLAINTS INVESTIGATIONS AND SANCTIONS

Article IVÐComplaints 1. Availability to Customer of Certificate, By-Laws, Rules and Code of Procedure ...... 8110 2. Complaints by Public Against Members for Violations of Rules ...... 8120 3. Complaints by District Business Conduct Committees ...... 8130 4. Complaints by the Board of Governors ...... 8140 5. Reports and Inspection of Books for Purpose of Investigating Complaints ...... 8210 Resolution on Suspension of Members for Failure to Furnish Information Duly Requested ...... 8220

Article VÐPenalties 1. Sanctions for Violation of the Rules ...... 8310 Interpretation on the Effect of a Suspension or Revocation of the Registration, if Any, of a Person Associated with a Member IM±8310±1 or the Barring of a Person from Further Association with a Member. Resolution on Notice to Membership and Press of Suspensions, Expulsions, Revocations, and Monetary Sanctions and Re- IM±8310±2 lease of Certain Information Regarding Disciplinary History of Members and Their Associated Persons. 2. Payment of Fines, Other Monetary Sanctions, or Costs ...... 8320 3. Costs of Proceedings ...... 8330

******* Code of procedure ...... 9000 Article II: Disciplinary Actions by District Business Conduct Committees, The Market Surveillance Committee and Others ...... 9200

******* 10. Acceptance, Waiver and Consent, Minor Rule Violations And Summary Complaint Procedures ...... 9217 44116 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

EXHIBIT 1.ÐOLD-TO-NEW CONVERSION CHARTÐContinued

Former provision New number

******* Appendix: Violations Appropriate For Disposition Under the Minor Rule Violations Plan ...... IM±9217

[FR Doc. 96–21757 Filed 8–26–96; 8:45 am] A. Self-Regulatory Organization’s facilitating transactions in securities, to BILLING CODE 8010±01±M Statement of the Purpose of, and remove impediments to and perfect the Statutory Basis for, the Proposed Rule mechanism of a free and open market Change and a national market system, and, in [Release No. 34±37585; File No. SR±NYSE± (a) Purpose—ELDS are non- general, to protect investors and the 96±25] convertible debt securities of an issuer public interest. where the value of the debt is based, at B. Self-Regulatory Organization’s Self-Regulatory Organizations; Notice least in part, on the value of another Statement on Burden on Competition of Filing of Proposed Rule Change by issuer’s common stock or The Exchange believes that the New York Stock Exchange, Inc., nonconvertible preferred stock (the proposed rule change does not impose Relating to the Listing Criteria for ‘‘underlying security’’). The Exchange’s any burden on competition that is not Equity-Linked Debt Securities listing standards currently permit the necessary or appropriate in furtherance listing of ELDS if, among other things, August 20, 1996. of the purposes of the Act. (i) the issuer has a minimum tangible Pursuant to Section 19(b)(1) of the net worth of $150 million and (ii) the C. Self-Regulatory Organization’s Securities Exchange Act of 1934 original issue price of the ELDS, Statement on Comments on the 1 2 (‘‘Act’’), and Rule 19b–4 thereunder, combined with all the issuer’s other Proposed Rule Change Received from notice is hereby given that on August publicly-traded ELDS, does not exceed Members, Participants or Others 16, 1996, the New York Stock Exchange, 25 percent of the issuer’s net worth (the Inc. filed with the Securities and The Exchange has not solicited, and ‘‘net worth standard’’). does not intend to solicit, comments on Exchange Commission the proposed The proposed rule change makes two rule change as described in Items I and this proposed rule change. The amendments to the ELDS listing Exchange has not received any II below, which Items have been standards. First, the Exchange proposes prepared by the self-regulatory unsolicited written comments from to add an alternative net worth members or other interested parties. organization. The Commission is standard. Under the new test, a issuer publishing this notice to solicit with tangible net worth of at least $250 III. Date of Effectiveness of the comments on the proposed rule change million would be able to issue ELDS Proposed Rule Change and Timing for from interested persons. without being subject to the limit that Commission Action I. Self-Regulatory Organization’s the ELDS be no more than 25 percent of Within 35 days of the date of Statement of the Terms of Substance of the issuer’s net worth. Issuers with a publication of this notice in the Federal the Proposed Rule Change tangible net worth of at least $150 Register or within such longer period (i) million, but less than $250 million, will as the Commission may designate up to The New York Stock Exchange, Inc. still be subject to the 25 percent limit. 90 days of such date if it finds such (‘‘NYSE’’ or ‘‘Exchange’’) is proposing This will provide the largest issuers longer period to be appropriate and amendments to its listing standards for with increased flexibility in their publishes its reasons for so finding or Equity-Linked Debt Securities (‘‘ELDS’’). financing and capitalization planning. (ii) as to which the self-regulatory These listing standards are contained in Second, with respect to the listing of organization consents, the Commission Para. 703.21 of its Listed Company ELDS linked to non-U.S. securities, the will: Manual. Exchange proposes to amend the (a) By order approve such proposed II. Self-Regulatory Organization’s definition of ‘‘Relative U.S. Share rule change, or Statement of the Purpose of, and Volume’’ and to delete the definition of (b) Institute proceedings to determine Statutory Basis for, the Proposed Rule ‘‘Relative ADR Volume.’’ Specifically, whether the proposed rule change Change the Exchange proposes collapsing these should be disapproved. two definitions into a single definition In its filing with the Commission, the of ‘‘Relative U.S. Volume.’’ The IV. Solicitation of Comments self-regulatory organization included Exchange believes that this change is Interested persons are invited to statements concerning the purpose of non-substantive and is proposed solely submit written data, views and and basis for the proposed rule change to clarify and simplify the rule. arguments concerning the foregoing. and discussed any comments it received (b) Basis—The basis under the Act for Persons making written submissions on the proposed rule change. The text the proposed rule change is the should file six copies thereof with the of these statements may be examined at requirement under Section 6(b)(5) that Secretary, Securities and Exchange the places specified in Item IV below. an exchange have rules that are Commission, 450 Fifth Street, N.W., The self-regulatory organization has designed to prevent fraudulent and Washington, D.C. 20549. Copies of the prepared summaries, set forth in manipulative acts and practices, to submission, all subsequent sections A, B and C below, of the most promote just and equitable principles of amendments, all written statements significant aspects of such statements. trade, to foster cooperation and with respect to the proposed rule coordination with persons engaged in change that are filed with the 1 15 U.S.C. 78s(b)(1). regulating, clearing, settling, processing Commission, and all written 2 17 CFR 240.19b–4. information with respect to, and communications relating to the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44117 proposed rule change between the DATES: The meeting is scheduled for available on a first-come, first-served Commission and any person, other than September 4, 1996, unless otherwise basis. The public may submit written those that may be withheld from the notified. comments to the Commission at any public in accordance with the ADDRESSES: The meeting will be held at time; comments should be sent to provisions of 5 U.S.C. 552, will be the Department of the Treasury, U.S. Richard Pemberton at the address and available for inspection and copying in Customs Service, 1301 Constitution telecopier number shown above. the Commission’s Public Reference Avenue, N.W., Washington, D.C. 20229, Issued in Washington, DC on August 21, Section, 450 Fifth Street, N.W., Room 1115, unless otherwise notified. 1996. Washington, D.C. 20549. Copies of such FOR FURTHER INFORMATION CONTACT: Nancy E. McFadden, filing will also be available for Nancy Adams, Executive Director of the General Counsel, Department of inspection and copying at the principal Commission on United States-Pacific Transportation. office of the Exchange. All submissions Trade and Investment Policy, Room 400, [FR Doc. 96–21859 Filed 8–26–96; 8:45 am] should refer to File No. SR–NYSE–96– 600 17th Street, NW., Washington, D.C. BILLING CODE 4910±62±P 25 and should be submitted by 20508 (202) 395–9679. September 17, 1996. Charlene Barshefsky, For the Commission, by the Division of Acting United States Trade Representative. Federal Aviation Administration Market Regulation, pursuant to delegated Nancy Adams, authority.3 RTCA, Inc., RTCA Special Committee Executive Director, Commission on United Margaret H. McFarland, 189; FANS System Requirements and States-Pacific Trade and Investment Policy. Objectives (FANS SR&O) Deputy Secretary. [FR Doc. 96–21829 Filed 8–26–96; 8:45 am] [FR Doc. 96–21758 Filed 8–26–96; 8:45 am] BILLING CODE 3190±01±M Pursuant to section 10(a)(2) of the BILLING CODE 8010±01±M Federal Advisory Committee Act (P.L. 92–463, 5 U.S.C.; Appendix 2), notice is DEPARTMENT OF TRANSPORTATION hereby given for a RTCA Special OFFICE OF THE UNITED STATES Committee (SC)–189 meeting to be held TRADE REPRESENTATIVE Office of the Secretary September 10–11, 1996, starting at 9:00 a.m. on September 10. The meeting will Notice of Meeting of the Commission White House Commission on Aviation be held at RTCA, 1140 Connecticut on United States Pacific Trade and Safety and Security; Open Meeting Avenue, N.W., Suite 1020, Washington, Investment Policy AGENCY: Office of the Secretary (OST), DC 20036. The purpose of SC–189 is to develop DOT. AGENCY: Commission on United States- a FANS System Requirements and Pacific Trade and Investment Policy/ ACTION: Notice of meeting. Objectives (SR&O) document. The Office of the United States Trade SUMMARY: The White House committee will consider the experience Representative. Commission on Aviation Safety and gained through the application of initial ACTION: Notice that the next meeting of Security will hold a meeting to discuss ARINC 622-based data communications the Commission on United States- aviation safety and security issues. The as described in the Boeing 747–400 Pacific Trade and Investment Policy, meeting is open to the public. FANS 1 Air Traffic Services (ATS) will be held on September 4, 1996, from DATES: The meeting will be held on SR&O, the Aerospatiale/Airbus FANS A 9:30 a.m. to 5:30 p.m. The meeting will Thursday, September 5, 1996, from 9:00 SR&O, the ICAO Informal South Pacific be closed to the public. AM to 5:00 PM, unless adjourned ATS Coordinating Group FANS 1/A earlier. Operational Manual, and other SUMMARY: The Commission on United documentation that describes the safety ADDRESSES: The meeting will take place States-Pacific Trade and Investment objectives and interoperability in the Auditorium on the first floor of Policy will hold a meeting on requirements for related ground the headquarters building of the General September 4, 1996, from 9:30 a.m. to systems. 5:30 p.m. The meeting will be closed to Services Administration (GSA), 18th & F SC–189 will develop guidance the public. At the September 4, 1996 Streets, NW, Washington, DC. material that should consist of at least meeting, the Commission will continue FOR FURTHER INFORMATION CONTACT: two separate documents: (1) internal deliberations on possible Richard K. Pemberton, Administrative Interoperability requirements for ARINC recommendations on future policy Officer, Room 6208, GSA Headquarters, 622-based data communications that options. 18th & F Streets, NW, Washington, DC provide initial ATS in oceanic and Pursuant to Section 2155(f)(2) of Title 20405; telephone 202.501.3863; remote airspace and (2) assessment 19 of the United States Code, the USTR telecopier 202.501.6160. methodology and safety objectives for has determined that this meeting will SUPPLEMENTARY INFORMATION: Pursuant applying ARINC 622-based data address matters the disclosure of which to the Federal Advisory Committee Act communications to provide initial ATS would seriously compromise the (5 USC Appendix), DOT gives notice of in oceanic and remote airspace. development by the United States a meeting of the White House The agenda will be as follows: (1) Government of trade policy, priorities, Commission on Aviation Safety and Chairman’s Introductory Remarks; (2) negotiating objectives or bargaining Security (‘‘Commission’’). The Review and Approval of Meeting positions with respect to the operation Commission was established by the Agenda; (3) Terms of Reference Review/ of any trade agreement and other President to develop advice and Approval; (4) Presentations; (5) Other matters arising in connection with the recommendations on ways to improve Business; (6) Establish Agenda for Next development, implementation and the level of civil aviation safety and Meeting; (14) Date and Place of Next administration of the trade policy of the security, both domestically and Meeting. United States. internationally. Attendance is open to the interested The meeting will be open to the public but limited to space availability. 3 17 CFR 200.30–3(a)(12). public. Limited seating for the public is With the approval of the chairman, 44118 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices members of the public may present oral Assets Management, Office of Ship for the applicant to obtain benefits statements at the meeting. Persons Financing, Maritime Administration, under the CRF program. The annual wishing to present statements or obtain MAR–530, Room 8126, 400 Seventh statements are required from each information should contact the RTCA Street, SW., Washington, DC 20590. respondent in order for MARAD to Secretariat, 1140 Connecticut Avenue, Telephone 202–366–5744 or fax 202– assure that the requirements of the N.W., Suite 1020, Washington, DC, 366–7901. Copies of this collection can program are being satisfied. 20036; (202) 833–9339 (phone) or (202) also be obtained from that office. Description of Respondents: U.S. 833–9434 (fax). Members of the public SUPPLEMENTARY INFORMATION: citizens who own or operate one or may present a written statement to the more vessels in the foreign or domestic committee at any time. Title of Collection: Application for commerce of the United States and wish Construction Reserve Fund and Annual Issued in Washington, DC, on August 20, to receive benefits under the CRF 1996. Statements. program. Type of Request: Extension of Janice L. Peters, currently approved information Annual Responses: 6. Designated Official. collection. Annual Burden: 54 hours. [FR Doc. 96–21854 Filed 8–26–96; 8:45 am] OMB Control Number: 2133–0032. Comments: Send all comments BILLING CODE 4810±13±M Form Number: None. regarding this information collection to Expiration Date of Approval: October Joel C. Richard, Department of 31, 1996. Transportation, Maritime Maritime Administration Summary of Collection of Administration, MAR–120, Room 7210, [Docket No. M±023] Information: The collection consists of 400 Seventh Street, SW., Washington, an application required from all citizens DC 20590. Send comments regarding Information Collection Available for who own or operate vessels in the U.S. whether this information collection is Public Comments and foreign or domestic commerce and necessary for proper performance of the Recommendations desire ‘‘tax’’ benefits under the function of the agency and will have Construction Reserve Fund (CRF) practical utility, accuracy of the burden SUMMARY: In accordance with the program. The annual statements set estimates, ways to minimize this Paperwork Reduction Act of 1995, this forth a detailed analysis of the status of burden, and ways to enhance quality, notice announces the Maritime the CRF when each income tax return is utility, and clarity of the information to Administration’s (MARAD’s) intentions filed. Checks for withdrawals from the be collected. to request extension of approval for CRF must be sent to MARAD for By Order of the Maritime Administrator. three years of a currently approved countersignature and return for effecting information collection. the withdrawal. Dated: August 21, 1996. DATES: Comments should be submitted Need and Use of the Information: The Joel C. Richard, on or before October 28, 1996. application is required in order for Secretary. FOR FURTHER INFORMATION CONTACT: Jean MARAD to determine whether the [FR Doc. 96–21820 Filed 8–26–96; 8:45 am] E. McKeever, Chief, Division of Capital applicant qualifies for the benefits and BILLING CODE 4910±81±P 44119

Corrections Federal Register Vol. 61, No. 167

Tuesday, August 27, 1996

This section of the FEDERAL REGISTER §51.372 [Corrected] DEPARTMENT OF TRANSPORTATION contains editorial corrections of previously On page 40946, in the first column, in published Presidential, Rule, Proposed Rule, §51.372(b)(3), in the last line, ‘‘August Federal Aviation Administration and Notice documents. These corrections are 6, 1996’’ should read ‘‘August 6, 1998’’. prepared by the Office of the Federal 14 CFR Part 71 Register. Agency prepared corrections are BILLING CODE 1505±01±D issued as signed documents and appear in the appropriate document categories [Airspace Docket No. 95±AWA±6] elsewhere in the issue. DEPARTMENT OF THE INTERIOR Proposed Establishment of Myrtle Fish and Wildlife Service Beach International Airport Class C Airspace Area, SC; and Revocation of ENVIRONMENTAL PROTECTION 50 CFR Part 20 the Myrtle Beach AFB Class D AGENCY Airspace Area; South Carolina RIN 1018-AD41 40 CFR Part 51 Correction Migratory Bird Hunting; Proposal for [FRL-5543-7] In proposed rule document 96–21479 Approval of Bismuth-Tin Shot as a beginning on page 43320 in the issue of RIN 2060-AE19 Nontoxic Thursday, August 22, 1996, make the I/M Program Requirement±On-Board Correction following correction: Diagnostic Checks In proposed rule document 96–20726, On page 43323, in the third column, Correction beginning on page 42495 in the issue of the file line at the end of the document was omitted and should have appeared In rule document 96–19409 beginning Thursday, August 15, 1996, in the first as follows: on page 40940 in the issue of Tuesday, column the effective date should read August 6, 1996, make the following October 15, 1996. [FR Doc 96–21479; Filed 8–21–96; 8:45 am] correction: BILLING CODE 1505±01±D BILLING CODE 1505±01±D federal register August 27,1996 Tuesday Notice Availability ofFinancialAssistance; Administration forNativeAmericans: Administration forChildrenandFamilies Services Health andHuman Department of Part II 44121 44122 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

DEPARTMENT OF HEALTH AND a single program announcement for • Governance, Social and Economic HUMAN SERVICES fiscal year 1997 funds. Therefore, Development (SEDS) for Alaska Native entities; information regarding ANA’s mission, • Administration for Children and policy, goals, application requirements, Environmental Regulatory Enhancement; Families and review criteria and closing dates for • Native American Languages Preservation [Program Announcement No. 93612±971] each competitive area is included in this and Enhancement. comprehensive announcement. Each competitive area includes the Administration for Native Americans: The Administration for Native following sections which provide area- Availability of Financial Assistance Americans promotes the goal of self- specific information to be used to develop an sufficiency in Native American application for ANA funds: AGENCY: Administration for Native A—Purpose and Availability of Funds; communities primarily through Social B—Background; Americans (ANA), Administration for and Economic Development Strategies Children and Families, (ACF), HHS. C—Proposed Projects to be Funded; (SEDS) projects. The Native American D—Eligible Applicants; ACTION: Announcement of availability of Programs Act also authorizes ANA to E—Grantee Share of the Project; competitive financial assistance for establish two additional programs for (1) F—Review Criteria; projects in competitive areas environmental regulatory enhancement, G—Application Due Date(s); and administered by the Administration for and (2) Native American languages H—Contacts to Obtain Further Information Native Americans for American Indians, preservation and enhancement. Part III—General Application Information Native Hawaiian, Alaska Natives and Funding authorization is provided and Guidance Native American Pacific Islanders. under sections [803(a), 803(d) and 803C Provides important information and of the Native American Programs Act of guidance that applies to all four competitive SUMMARY: The Administration for 1974, as amended (Public Law 93–644, areas and that must be taken into account in Native Americans (ANA) announces the 88 Stat. 2324, 42 U.S.C. 2991b).] developing an application for any of the four anticipated availability of fiscal year The Indian Environmental Regulatory areas. 1997 funds in four competitive areas: Enhancement Act of 1990 (Public Law (1) Governance and social and Part I—ANA Policy and Goals 101–408) authorizes financial assistance economic development; The mission of the Administration for for projects to address environmental (2) Governance and social and Native Americans (ANA) is to promote regulatory concerns (Section 803(d) of economic development for Alaska the goal of social and economic self- the Native American Programs Act of Native entities; sufficiency for American Indians, 1974, as amended). (3) Environmental regulatory Alaska Natives, Native Hawaiians, and enhancement; and The Native American Languages Act other Native American Pacific Islanders. (4) Native American languages of 1992 (Public Law 102–524) authorizes The Administration for Native preservation and enhancement. financial assistance for projects to Americans believes that a Native Financial assistance provided by ANA promote the survival and continuing American community is self-sufficient in support of projects in these four areas vitality of Native American languages when it can generate and control the is intended to promote the goal of self- (Section 803C of the Native American resources necessary to meet its social sufficiency for Native Americans. Programs Act of 1974, as amended). and economic goals, and the needs of its This program announcement is being APPLICATION KIT: Application kits, members. issued in anticipation of the containing the necessary forms and The Administration for Native appropriation of funds for fiscal year instructions to apply for a grant under Americans also believes that the 1997 and the availability of funds for this program announcement, may be responsibility for achieving self- the four competitive areas is contingent obtained from: Department of Health sufficiency resides with the governing upon sufficient final appropriations. and Human Services, Administration for bodies of Indian tribes, Alaska Native Proposed projects will be reviewed on a Children and Families, Administration villages, and in the leadership of Native competitive basis against the specific for Native Americans, Room 348F, American groups. A community’s evaluation criteria presented under each Hubert H. Humphrey Building, 200 progress toward self-sufficiency is based competitive area in this announcement. Independence Avenue, S.W., on its efforts to plan, organize, and Eligible applicants may compete for Washington, D.C. 20201–0001, direct resources in a comprehensive and receive a grant award in each of the Attention: 93612–971, Telephone: (202) manner which is consistent with its three competitive areas (An Alaska 690–7776. established long-range goals. Native entity may not submit an The Administration for Native SUPPLEMENTARY INFORMATION: application under both Competitive Americans’ policy is based on three Introduction and Purpose Areas 1 and 2 for the same closing date.) interrelated goals: However, ANA continues its policy that 1. Governance: To assist tribal and The purpose of this program an applicant may only submit one Alaska Native village governments, announcement is to announce the application per competitive area. Native American institutions, and local anticipated availability of fiscal year This program announcement consists leadership to exercise local control and 1997 funds, authorized under the Native of three parts. decision-making over their resources. American Programs Act (Act), as 2. Economic Development: To foster amended, to promote the goal of social Part I—ANA Policy and Goals the development of stable, diversified and economic self-sufficiency for Provides general information about ANA’s local economies and economic activities American Indians, Alaska Natives, policies and goals for the four competitive which will provide jobs and promote Native Hawaiians, and Native American areas. economic well-being. Pacific Islanders in four competitive Part II—ANA Competitive Areas 3. Social Development: To support areas. Describes the four competitive areas under local access to, control of, and In order to streamline the application which ANA is requesting applications: coordination of services and programs process for eligible applicants under • Governance, Social and Economic which safeguard the health, well-being four competitive areas, ANA is issuing Development (SEDS); and culture of people, provide support Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44123 services and training so people can guidance are described in Part III of this development strategies should address work, and which are essential to a announcement. all aspects of the governmental, thriving and self-sufficient community. An applicant may submit a separate economic, and social infrastructures The Administration for Native application under any of the needed to promote self-sufficient Americans assists eligible applicants for competitive areas described in this Part, communities. the four competitive areas to undertake as long as the applicant meets the ANA’s SEDS policy is based on the one to three year development projects eligibility requirements that are listed use of the following definitions: that are part of long-range separately under each area. • ‘‘Governmental infrastructure’’ comprehensive plans to move toward Applications for SEDS grants from includes the constitutional, legal, and governance, social, and/or economic Alaska Native entities may be submitted administrative development requisite self-sufficiency. under either Competitive Area 1 or for independent governance. For each type of project, applicants Competitive Area 2. An Alaska Native • ‘‘Economic infrastructure’’ includes must describe a concrete locally- entity may not submit an application the physical, commercial, industrial determined strategy to carry out a under both Competitive Areas 1 and 2 and/or agricultural components proposed project with fundable for the same closing date. necessary for a functioning local objectives and activities. economy which supports the life-style Local long-range planning must ANA Competitive Area 1. Social and embraced by the Native American consider the maximum use of all Economic Development Strategies community. available resources, how the resources (SEDS) Projects • ‘‘Social infrastructure’’ includes will be directed to development A. Purpose and Availability of Funds those components through which opportunities, and present a strategy for health, economic well-being and culture overcoming the local issues that hinder The purpose of this competitive area are maintained within the community movement toward self-sufficiency in the is to announce the anticipated and that support governance and community. availability of fiscal year 1997 financial economic goals. Under each competitive area, ANA assistance to promote the goal of social These definitions should be kept in will only accept one application which and economic self-sufficiency for mind as a local social and economic serves or impacts a reservation, Tribe, or American Indians, Alaska Natives, development strategy is developed as Native American community. Native Hawaiians, and Native American part of a grant application. An application from a federally Pacific Islanders through locally A community’s movement toward recognized Tribe, Alaska Native Village developed social and economic self-sufficiency could be jeopardized if or Native American organization must development strategies (SEDS). a careful balance between governmental, be from the governing body of the Tribe Approximately $14 million of economic and social development is not or organization. ANA will not accept financial assistance is anticipated to be maintained. For example, expansion of applications from tribal components available under this priority area for social services, without providing which are tribally-authorized divisions governance, social and economic opportunities for employment and of a larger tribe, unless the application development projects. In fiscal year economic development, could lead to includes a Tribal resolution which 1997, ANA anticipates awarding dependency on social services. clearly demonstrates the Tribe’s support approximately 120 competitive grants Conversely, inadequate support of the project and the Tribe’s ranging from $30,000 to $1,000,000 services and training could seriously understanding that the other applicant’s under this competitive area. impede productivity and local economic project supplants the Tribe’s authority B. Background development. Additionally, the to submit an application under that necessary infrastructures must be specific competitive area for the To achieve its goals, ANA supports developed or expanded at the duration of the approved grant period. tribal and village governments, and community level to support social and Native American organizations, in their economic development and growth. In Note: If a Tribe or Alaska Native village efforts to develop and implement chooses not to submit an application under designing their social and economic a specific competitive area, it may support community-based, long-term development strategies, ANA another applicant’s project (e.g., a tribal governance, social and economic encourages an applicant to use or organization) which serves or impacts the development strategies (SEDS). These leverage all available human, natural, reservation. In this case, the applicant must strategies must promote the goal of self- financial, and physical resources. include a Tribal resolution which clearly sufficiency in local communities. In discussing their community-based, demonstrates the Tribe’s support of the The SEDS approach is based on long-range goals, and the objectives for project and the Tribe’s understanding that ANA’s program goals and incorporates the other applicant’s project supplants the the proposed projects, ANA Tribe’s authority to submit an application two fundamental principles: recommends that non-Federally under that specific competitive area for the 1. The local community and its recognized and off-reservation groups duration of the approved grant period. leadership are responsible for include a description of what determining goals, setting priorities, and Part II—ANA Competitive Areas constitutes their specific community. planning and implementing programs ANA encourages the development The four competitive areas under this aimed at achieving those goals. The and maintenance of comprehensive Part describe ANA’s funding authorities, local community is in the best position strategic plans which are an integral priorities, special initiatives, to apply its own cultural, political, and part of attaining and supporting the requirements, and review criteria. socio-economic values to its long-term balance necessary for successful However, most of the requirements are strategies and programs. activities that lead to self-sufficiency. standard for all applications to be 2. Governance and social and submitted under this program economic development are interrelated. C. Proposed Projects to be Funded announcement. The standard In order to move toward self-sufficiency, This section provides descriptions of requirements necessary for each development in one area should be activities which are consistent with the application, as well as standard ANA balanced with development in the SEDS philosophy. Proposed activities program guidance and technical others. Consequently, comprehensive should be tailored to reflect the 44124 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices governance, social and economic Social Development or the Commonwealth of the Northern development needs of the local • Enhancing tribal capabilities to Mariana Islands which serve Native community and should be consistent design or administer programs aimed at American Pacific Islanders. and supportive of the proposed project strengthening the social environment Proof of an applicant’s nonprofit objectives. desired by the local community; status, such as an IRS determination of The types of projects which ANA may • Developing local and intertribal nonprofit status under IRS Code fund include, but are not limited to, the models related to comprehensive 501(c)(3), must be included in the following: planning and delivery of services; application. Governance • Developing programs or activities to If the applicant, other than a tribe or an Alaska Native Village government, is • Improvements in the governmental, preserve and enhance tribal heritage and culture; and proposing a project benefiting Native judicial and/or administrative • Americans or Native Alaskans, or both, infrastructures of tribal and village Establishing programs which involve extended families or tribal it must provide assurance that its duly governments (such as strengthening or elected or appointed board of directors streamlining management procedures or societies in activities that strengthen cultural identity and promote is representative of the community to be the development of tribal court served. An organization can systems); community development or self-esteem. • conclusively establish that it meets this Increasing the ability of tribes, D. Eligible Applicants requirement through a signed statement villages, and Native American groups Current ANA SEDS grantees whose or resolution stating that its duly elected and organizations to plan, develop, and project period terminates in fiscal year or appointed board of directors are administer a comprehensive program to 1997 (October 1, 1996–September 30, either Native Americans or Native support community social and 1997) are eligible to apply for a grant Alaskans or a copy of the organizational economic self-sufficiency (including award under this program charter or by-laws that clearly states that strategic planning); the organization has a board drawn from • Increasing awareness of and announcement. (The Project Period is members of those groups. exercising the legal rights and benefits noted in Block 9 of the ‘‘Financial to which Native Americans are entitled, Assistance Award’’ document). Note: Under each competitive area, ANA either by virtue of treaties, the Federal Additionally, provided they are not will only accept one application which trust relationship, legislative authority, current ANA SEDS grantees, the serves or impacts a reservation, Tribe, or following organizations are eligible to Native American community. If a Tribe or executive orders, administrative and Alaska Native village chooses not to submit court decisions, or as citizens of a apply under this competitive area: • Federally recognized Indian Tribes; an application under a specific competitive particular state, territory, or of the • area, it may support another applicant’s United States. Consortia of Indian Tribes; • Incorporated non-federally project (e.g., a tribal organization) which • Status clarification activities for serves or impacts the reservation. Native groups seeking Federal or State recognized Tribes; • In this case, the applicant must tribal recognition, such as performing Incorporated nonprofit multi- include a Tribal resolution which research or any other function necessary purpose community-based Indian clearly demonstrates the Tribe’s support to submit a petition for Federal organizations; • of the project and the Tribe’s acknowledgement or in response to any Urban Indian Centers; • understanding that the other applicant’s obvious deficiencies cited by the Bureau National or regional incorporated project supplants the Tribe’s authority of Acknowledgement and Research nonprofit Native American to submit an application under that (BAR), Department of the Interior, in a organizations with Native American specific competitive area for the petition from a Native group seeking community-specific objectives; • duration of the approved grant period. Federal recognition; and Alaska Native villages as defined in • Development of and/or the Alaska Native Claims Settlement Act E. Grantee Share of the Project amendments to tribal constitutions, (ANCSA) and/or nonprofit village consortia; Grantees must provide at least 20 court procedures and functions, by-laws • or codes, and council or executive Incorporated nonprofit Alaska percent of the total approved cost of the branch duties and functions. Native multi-purpose community-based project. (The total approved cost of the organizations; project is the sum of the ACF share and Economic Development • Nonprofit Alaska Native Regional the non-Federal share.) The non-Federal • Development of a community Corporations/Associations in Alaska share may be met by cash or in-kind economic infrastructure that will result with village specific projects; contributions; although applicants are in businesses, jobs, and an economic • Nonprofit Native organizations in encouraged to meet their match support structure. Alaska with village specific projects; requirements through cash • Establishment or expansion of • Public and nonprofit private contributions. Therefore, a project businesses and jobs in areas such as agencies serving Native Hawaiians; requesting $300,000 in Federal funds tourism, specialty agriculture, light and/ • Public and nonprofit private must include a match of at least $75,000 or heavy manufacturing, construction, agencies serving native peoples from (20% total project cost). housing and fisheries or aquaculture; Guam, American Samoa, Palau, or the As per 45 CFR Part 74.2, In-Kind • Stabilizing and diversifying a Commonwealth of the Northern Mariana contributions is defined as ‘‘the value of Native community’s economic base Islands. (The populations served may be non-cash contributions provided by through business development ventures; located on these islands or in the United non-Federal third parties. Third party-in • Creation of microenterprises or States); and kind contributions may be in the form private sector development; • Tribally Controlled Community of real property, equipment, supplies • Establishment or expansion of Colleges, Tribally Controlled Post- and other expendable property, and the businesses and jobs that utilize Indian Secondary Vocational Institutions, and value of goods and services directly tax incentives passed in the Omnibus colleges and universities located in benefiting and specifically identifiable Budget Reconciliation Act of 1993; and Hawaii, Guam, American Samoa, Palau, to the project or program.’’ Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44125

In addition it may include other • The relationship between the long- human, natural or financial, and may Federal funding sources where its range goals and the applicant’s include other Federal and non-Federal legislation or regulations authorizes comprehensive community social and resources. (Applicant statements that using specific types of funds for a match economic development plan. (Inclusion additional funding will be sought from and provided the source relates to the of the community’s entire development other specific sources are not ANA project, as follows: plan is not necessary); and considered a binding commitment of • Indian Child Welfare funds, • A clearly delineated social and outside resources.) through the Department of the Interior; economic development strategy (SEDS). • Note: Applicants from the Native American Indian Self-Determination and The application documents the type Pacific Islands are not required to provide a Education Assistance funds, through the of involvement and support of the 20% match for the non-Federal share if it is Department of the Interior and the community in the planning process and under $200,000 and may not have points Department of Health and Human implementation of the proposed project. reduced for this policy. They are, however, Services; and A Tribe may meet this requirement by expected to coordinate non-ANA resources • Community Development Block submitting a resolution stating that for the proposed project, as are all ANA Grant funds, through the Department of community involvement has occurred applicants. Housing and Urban Development. in the project planning. All other (2) Organizational Capabilities and An itemized budget detailing the eligible applicants may meet this Qualifications. (10 points) applicant’s non-Federal share, and its requirement by providing (a) The management and source, must be included in an documentation of community support/ administrative structure of the applicant application. involvement. The type of community is explained. Evidence of the applicant’s If an applicant plans to charge you serve will determine the type of ability to manage a project of the indirect costs in its ANA application, a documentation necessary. proposed scope is demonstrated. The current copy of its Indirect Cost For example, a tribal organization application clearly shows the successful Agreement must be included in the may submit resolutions supporting the management of projects of similar scope application. project proposal from each of its by the organization, and/or by the A request for a waiver of the non- members tribes, as well as a resolution individuals designated to manage the Federal share requirement may be from the applicant organization. Other project. submitted in accordance with 45 CFR examples of documentation include: (b) Position descriptions and/or 1336.50(b)(3) of the Native American community surveys; minutes of resumes of key personnel, including Program Regulations. community meetings; questionnaires; those of consultants, are presented. The Note: Applications originating from tribal presentations; and/or discussion/ position descriptions and/or resumes American Samoa, Guam, Palau, or the position papers. relate specifically to the staff proposed Commonwealth of the Northern Mariana Applications from National Indian in the Approach Page and in the Islands are covered under Section 501(d) of and Native organizations must clearly proposed Budget of the application. Public Law 95–134, as amended (48 U.S.C. demonstrate a need for the project, Position descriptions very clearly 1469a) under which HHS waives any explain how the project was originated, describe each position and its duties requirement for local matching funds under and clearly relate to the personnel $200,000 (including in-kind contributions). state who the intended beneficiaries will be, and describe how the recipients staffing required to achieve the project F. Review Criteria will actually benefit from the project. objectives. Resumes demonstrate that A proposed project should reflect the National Indian and Native the proposed staff are qualified to carry purposes of ANA’s SEDS policy and organizations should define their out the project activities. Either the program goals (described in the membership and describe how the position descriptions or the resumes Background section of this competitive organization operates. contain the qualifications and/or area), include a social and economic (b) Available resources (other than specialized skills necessary for overall development strategy which reflects the ANA and the non-Federal share) which quality management of the project. needs and specific circumstances of the will assist, and be coordinated with the Resumes must be included if local community, and address the project are described. These resources individuals have been identified for specific developmental steps that the should be documented by letters or positions in the application. tribe or Native American community is documents of commitment of resources, Note: Applicants are strongly encouraged undertaking toward self-sufficiency. not merely letters of support. to give preference to Native Americans in The evaluation criteria are closely • ‘‘Letters of support’’ merely express hiring staff and subcontracting services under related to each other and are considered another organization’s endorsement of a an approved ANA grant. as a whole in judging the overall quality proposed project. Support letters are not (3) Project Objectives, Approach and of an application. Points are awarded binding commitment letters or do not Activities. (45 points) only to applications which are factually establish the authenticity of The application proposes specific responsive to this competitive area and other resources. project Objective Work Plans with • these criteria. Proposed projects will be ‘‘Letters and other documents of activities related to each specific reviewed on a competitive basis using commitment’’ are binding when they objective. the following evaluation criteria: specifically state the nature, the amount, The Objective Work Plan(s) in the (1) Long-Range Goals and Available and conditions under which another application includes project objectives Resources. (15 points) agency or organization will support a and activities for each budget period (a) The application describes the long- project funded with ANA funds. proposed and demonstrates that each of range goals and strategy, including: For example, a letter from another the objectives and its activities: • How specific social, governance Federal agency or foundation pledging a • Is measurable and/or quantifiable in and economic long-range community commitment of $200,000 in terms of results or outcomes; goals relate to the proposed project and construction funding to complement • Supports the community’s social strategy; proposed ANA funded pre-construction and economic development strategy; • How the community intends to activity is evidence of a firm funding • Clearly relates to the community’s achieve these goals; commitment. These resources may be long-range goals; 44126 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

• Can be accomplished with the Competitive Area 2. Alaska-Specific • Assist villages in developing land available or expected resources during Social and Economic Development use capabilities and skills in the areas the proposed project period; Strategies (SEDS) Projects of land and natural resource • management and protection, resource Indicates when the objective, and A. Purpose and Availability of Funds major activities under each objective, assessment and conducting will be accomplished; The purpose of this competitive area environmental impact studies; • Specifies who will conduct the is to announce the anticipated • Assist village consortia in the activities under each objective; and availability of fiscal year 1997 funds for development of tribal constitutions, Alaska Native social and economic • Supports a project that will be ordinances, codes and tribal court development projects. Approximately completed, self- sustaining, or financed systems; $1.5 million of financial assistance is • by other than ANA funds at the end of Develop agreements between the anticipated to be available under this the project period. State and villages that transfer programs competitive area for Alaska Native jurisdictions, and /or control to Native (4) Results or Benefits Expected. (20 governance, social and economic points) entities; development projects. • Completion of the proposed objectives Strengthen village government ANA plans to award approximately control of land management, including will result in specific, measurable 15–18 grants under this competitive results. The application shows how the land protection, through coordination of area. For individual village projects, the land use planning with village expected results will help the funding level for a budget period of 12 community meet its long-range goals. corporations and cities, if appropriate; months will be up to $100,000; for • Assist in status clarification The specific information provided in regional nonprofit and village consortia, the narrative and objective work plans activities; the funding level for a budget period of • Initiate village level mergers on expected results or benefits for each 12 months will be up to $150,000, objective is the standard upon which its between village councils, village commensurate with approved multi- corporations and others to coordinate achievement can be evaluated at the end village objectives. of each budget year. programs and services which safeguard the health, well being and culture of a (5) Budget. (10 points) B. Background community and its people; A detailed and fully explained budget Based on the three ANA goals • Strengthen local governance is provided for each budget period described in Part I, ANA implemented capabilities through the development of requested which: a special Alaska social and economic village consortia and regional IRAs • Justifies each line item, with a well- development initiative in fiscal year 1984. This special effort was designed to (Indian Reorganization Act councils written justification, in the budget organized under the Indian categories in Section B of the Budget provide financial assistance at the village level or for village-specific Reorganization Act, 25 U.S.C. 473a); Information of the application, • Assist villages in preparing and including the applicant’s non-Federal projects aimed at improving a village’s governance capabilities and for social coordinating plans for the development share and its source; and/or improvement of water and sewer • Includes and justifies sufficient cost and economic development. This competitive area continues to systems within the village boundaries; and other necessary details to facilitate • Assist villages in establishing the determination of cost allowability implement this special initiative. ANA believes both the nonprofit and for- initiatives through which youth may and the relevance of these costs to the participate in the governance of the proposed project; and profit corporations in Alaska can play an important supportive role in assisting community and be trained to assume • Requests funds which are leadership roles in village governments; appropriate and necessary for the scope individual villages to develop and implement their own locally determined and of the proposed project. • strategies which capitalize on Consider strategies and plans to For business development projects, opportunities afforded to Alaska Natives protect against, monitor, and assist the proposal demonstrates that the under the Alaska Native Claims when catastrophic events occur, such as expected return on the funds used to Settlement Act (ANCSA), Public Law oil spills or earthquakes. develop the project provides a 92–203. reasonable operating income and return Economic Development The Administration for Native • within a future specified time frame. Americans does not fund objectives or Assist villages in developing Note: (Applicants from the Native activities for the core administration of businesses and industries which: 1) use American Pacific Islands are exempt from the an organization. However, ANA will local materials; 2) create jobs for Alaska $200,000 non-Federal share requirement). consider funding core administrative Natives; 3) are capable of high productivity at a small scale of G. Application Due Date capacity building projects at the village government level if the village does not operation; and 4) complement The closing dates for submission of have governing systems in place. traditional and necessary seasonal applications under this competitive area activities; are: October 25, 1996, February 14, C. Proposed Projects to be Funded • Substantially increase and 1997, and May 23, 1997. Examples of the types of projects that strengthen efforts to establish and improve the village and regional H. For Further Information Contact ANA may fund include, but are not limited to, projects that will: infrastructure and the capabilities to Sharon McCully (202) 690–5780, develop and manage resources in a Department of Health and Human Governance highly competitive cash-economy Services, Administration for Children • Initiate demonstration programs at system; and Families, Administration for Native the regional level to allow Native people • Assist villages, or consortia of Americans, 200 Independence Avenue, to become involved in developing villages, in developing subsistence S.W., Room 348–F, Washington, D.C. strategies to maintain and develop their compatible industries that will retain 20201–0001 economic subsistence base; local dollars in villages; Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44127

• Assist in the establishment or If the applicant, other than a tribe or supplies and other expendable property, expansion of new native-owned an Alaska Native Village government, is and the value of goods and services businesses; and proposing a project benefiting Native directly benefiting and specifically • Assist villages in labor export; i.e., Americans or Native Alaskans, or both, identifiable to the project or program.’’ people leaving the local communities it must provide assurance that its duly In addition it may include other for seasonal work and returning to their elected or appointed board of directors Federal funding sources where its communities. is representative of the community to be legislation or regulations authorizes served. An organization can using specific types of funds for a match Social Development conclusively establish that it meets this and provided the source relates to the • Assist in developing training and requirement through a signed statement ANA project, as follows: education programs for local jobs in or resolution stating that its duly elected • Indian Child Welfare funds, education, government, and health- or appointed board of directors are through the Department of Interior; related fields; and work with these either Native Americans or Native • Indian Self-Determination and agencies to encourage job replacement Alaskans or a copy of the organizational Education Assistance funds, through the of non-Natives by trained Natives; charter or by-laws that clearly states that Department of Interior and the • Develop local models related to the organization has a board drawn from Department of Health and Human comprehensive planning and delivery of members of those groups. Services; and social services; Although for-profit regional • Community Development Block • Develop new service programs, corporations established under ANCSA Grant funds, through the Department of initially established with ANA funds, are not eligible applicants, individual Housing and Urban Development. which will be funded for continued villages and Indian communities are An itemized budget detailing the operation (after the ANA grant encouraged to use the for-profit applicant’s non-Federal share, and its terminates) by local communities or the corporations as subcontractors and to source, must be included in an private sector; collaborate with them in joint-venture application. • Develop or coordinate with State- projects for promoting social and If an applicant plans to charge funded projects, activities designed to economic self-sufficiency. ANA indirect costs in its ANA application, a decrease the incidence of child abuse encourages the for-profit corporations to current copy of its Indirect Cost and neglect, fetal alcohol syndrome, assist the villages in developing Agreement must be included in the and/or suicides; applications and to participate as application. • Assist in obtaining licenses to subcontractors in a project. A request for a waiver of the non- provide housing or related services from Federal share requirement may be Note: Under each competitive area, ANA State or local governments; and submitted in accordance with 45 CFR • will only accept one application which Develop businesses to provide relief serves or impacts a reservation, Tribe, or 1336.50(b)(3) of the Native American for caretakers needing respite from Native American community. If a Tribe or Program Regulations. human service-related care work. Alaska Native village chooses not to submit an application under a specific competitive F. Review Criteria D. Eligible Applicants area, it may support another applicant’s A proposed project should reflect the Current ANA SEDS grantees in Alaska project (e.g., a tribal organization) which purposes of ANA’s SEDS policy and whose project period terminates in serves or impacts the reservation. goals (described in the Background fiscal year 1997 (October 1, 1996– In this case, the applicant must section of this competitive area and in September 30, 1997) are eligible to include a Tribal resolution which the Background section of Competitive apply for a grant award under this clearly demonstrates the Tribe’s support Area 1), include a social and economic program announcement. (The Project of the project and the Tribe’s development strategy which reflects the Period is noted in Block 9 of the understanding that the other applicant’s needs and specific circumstances of the ‘‘Financial Assistance Award’’ project supplants the Tribe’s authority local community, and address the document). to submit an application under that specific developmental steps that the Additionally, provided they are not specific competitive area for the tribe or Native American community is current ANA SEDS grantees, the duration of the approved grant period. undertaking toward self-sufficiency. following organizations are eligible to The evaluation criteria are closely E. Grantee Share of the Project apply under this competitive area: related to each other and are considered • Federally recognized Indian Tribes Grantees must provide at least 20 as a whole in judging the overall quality in Alaska; percent of the total approved cost of the of an application. Points are awarded • Alaska Native villages as defined in project. The total approved cost of the only to applications which are the Alaska Native Claims Settlement Act project is the sum of the ACF share and responsive to this competitive area and (ANCSA) and/or nonprofit village the non-Federal share. The non-Federal these criteria. Proposed projects will be consortia; share may be met by cash or in-kind reviewed on a competitive basis using • Incorporated nonprofit Alaska contributions, although applicants are the following evaluation criteria: Native multi-purpose community-based encouraged to meet their match (1) Long-Range Goals and Available organizations; requirements through cash Resources. (15 points) • Nonprofit Alaska Native Regional contributions. Therefore, a project (a) The application describes the long- Corporations/Associations in Alaska requesting $100,000 in Federal funds range goals and strategy, including: with village specific projects; and must include a match of at least $25,000 • How specific social, governance • Nonprofit Native organizations in (20% total project cost). and economic long-range community Alaska with village specific projects. As per 45 CFR Part 74.2, In-Kind goals relate to the proposed project and Proof of an applicant’s nonprofit contributions is defined as ‘‘the value of strategy; status, such as an IRS determination of non-cash contributions provided by • How the community intends to nonprofit status under IRS Code non-Federal third parties. Third party- achieve these goals; 501(c)(3), must be included in the in-kind contributions may be in the • The relationship between the long- application. form of real property, equipment, range goals and the applicant’s 44128 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices comprehensive community social and resources. (Applicant statements that by other than ANA funds at the end of economic development plan. (Inclusion additional funding will be sought from the project period. of the community’s entire development other specific sources are not (4) Results or Benefits Expected. (20 plan is not necessary); and considered a binding commitment of points) • A clearly delineated social and outside resources.) Completion of the proposed objectives economic development strategy (SEDS). (2) Organizational Capabilities and will result in specific, measurable The application documents the type Qualifications. (10 points) results. The application shows how the of involvement and support of the (a) The management and expected results will help the community in the planning process and administrative structure of the applicant community meet its long-range goals. implementation of the proposed project. is explained. Evidence of the applicant’s The specific information provided in A Tribe may meet this requirement by ability to manage a project of the the narrative and objective work plans submitting a resolution stating that proposed scope is demonstrated. The on expected results or benefits for each community involvement has occurred application clearly shows the successful objective is the standard upon which its in the project planning. All other management of projects of similar scope achievement can be evaluated at the end eligible applicants may meet this by the organization, and/or by the of each budget year. requirement by providing individuals designated to manage the (5) Budget. (10 points) documentation of community support/ project. A detailed and fully explained budget involvement. The type of community (b) Position descriptions and/or is provided for each budget period you serve will determine the type of resumes of key personnel, including requested which: documentation necessary. those of consultants, are presented. The • Justifies each line item, with a well- For example, a tribal organization position descriptions and/or resumes written justification, in the budget may submit resolutions supporting the relate specifically to the staff proposed categories in Section B of the Budget project proposal from each of its in the Approach Page and in the Information of the application, members tribes, as well as a resolution proposed Budget of the application. including the applicant’s non-Federal from the applicant organization. Other Position descriptions very clearly share and its source; examples of documentation include: describe each position and its duties • Includes and justifies sufficient cost community surveys; minutes of and clearly relate to the personnel and other necessary details to facilitate community meetings; questionnaires; staffing required to achieve the project the determination of cost allowability tribal presentations; and/or discussion/ objectives. Resumes demonstrate that and the relevance of these costs to the position papers. the proposed staff are qualified to carry proposed project; and Applications from National Indian out the project activities. Either the • Requests funds which are and Native organizations must clearly position descriptions or the resumes appropriate and necessary for the scope demonstrate a need for the project, contain the qualifications and/or of the proposed project. explain how the project was originated, specialized skills necessary for overall For business development projects, state who the intended beneficiaries quality management of the project. the proposal demonstrates that the will be, and describe how the recipients Resumes must be included if expected return on the funds used to will actually benefit from the project. individuals have been identified for develop the project provides a National Indian and Native positions in the application. reasonable operating income and return organizations should describe their within a future specified time frame. membership and define how the Note: Applicants are strongly encouraged organization operates. to give preference to Native Americans in G. Application Due Date (b) Available resources (other than hiring staff and subcontracting services under an approved ANA grant. The closing date for submission of ANA and the non-Federal share) which applications under this competitive area will assist, and be coordinated with the (3) Project Objectives, Approach and is: May 23, 1997. project are described. These resources Activities. (45 points) should be documented by letters or The application proposes specific H. For Further Information Contact project objective work plans with documents of commitment of resources, Sharon McCully (202) 690–5780, activities related to each specific not merely letters of support. Department of Health and Human • objective. The objective work plan(s) in ‘‘Letters of support’’ merely express Services, Administration for Children the application includes project another organization’s endorsement of a and Families, Administration for Native objectives and activities for each budget proposed project. Support letters are not Americans, 200 Independence Avenue, period proposed and demonstrates that binding commitment letters or do not SW., Room 348–F, Washington, DC each of the objectives and its activities: factually establish the authenticity of 20201–0001 other resources. • Is measurable and/or quantifiable in • ‘‘Letters and other documents of terms of results or outcomes; Competitive Area 3. Indian commitment’’ are binding when they • Supports the community’s social Environmental Regulatory Enhancement specifically state the nature, the amount, and economic development strategy; Projects and conditions under which another • Clearly relates to the community’s A. Purpose and Availability of Funds agency or organization will support a long-range goals; project funded with ANA funds. • Can be accomplished with the The purpose of this competitive area For example, a letter from another available or expected resources during is to announce the anticipated Federal agency or foundation pledging a the proposed project period; availability of fiscal year 1997 funds for commitment of $200,000 in • Indicates when the objective, and environmental regulatory enhancement construction funding to complement major activities under each objective, projects. Approximately $3 million of proposed ANA funded pre-construction will be accomplished; financial assistance is anticipated to be activity is evidence of a firm funding • Specifies who will conduct the available under this announcement for commitment. These resources may be activities under each objective; and environmental regulatory enhancement human, natural or financial, and may • Supports a project that will be projects. ANA expects to award include other Federal and non-Federal completed, self-sustaining, or financed approximately 35 grants under this Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44129 competitive area. The funding level for compliance with and enforcement of The following organizations are not a budget period of 12 months will be up these laws, and the development of eligible to apply: to $250,000. programs to conduct compliance and • Urban Indian Centers; enforcement functions. • Incorporated nonprofit multi- B. Background Other functions leading toward purpose community-based Indian Despite an increasing environmental enhancing local regulatory capacity organizations; responsibility and growing awareness of include, but are not limited to: • Public and nonprofit private environmental issues on Indian lands, • Environmental assessments; agencies serving: Native Hawaiians, there has been a lack of resources • Development and use of peoples from Guam, American Samoa, available to tribes to develop tribal environmental laboratories; and Palau, or the Commonwealth of environmental programs that are • Development of court systems for Northern Mariana Islands; responsive to tribal needs. In many enforcement of tribal and Federal • Incorporated nonprofit Alaska cases, this lack of resources has resulted environmental laws. Native multi-purpose community based in a delay in action on the part of the Ultimate success in this program will organizations; and tribes. be realized when the applicant’s desired • National or regional incorporated Some of the critical issues identified level of environmental quality is nonprofit Native American by tribes before Congressional acquired and maintained. organizations with Native American committees include: community-specific objectives. • the need for assistance to train C. Proposed Projects to be Funded Proof of an applicant’s nonprofit professional staff to monitor and enforce Financial assistance provided by ANA status, such as an IRS determination of tribal environmental programs; is available for developmental projects nonprofit status under IRS Code • the lack of adequate data for tribes designed to assist tribes in advancing 501(c)(3), must be included in the to develop environmental statutes and their capacity and capability to plan for application. establish environmental quality and: If the applicant, other than a tribe or standards; and • Develop or enhance the tribal an Alaska Native Village government, is • the lack of resources to conduct environmental regulatory infrastructure proposing a project benefiting Native studies to identify sources of pollution required to support a tribal Americans or Native Alaskans, or both, and the ability to determine the impact environmental program, and to regulate it must provide assurance that its duly on existing environmental quality. and enforce environmental activities on elected or appointed board of directors As a result, Congress enacted the Indian lands pursuant to Federal and is representative of the community to be Indian Environmental Regulatory Indian law; served. An organization can Enhancement Act of 1990 (Public Law • Develop regulations, ordinances conclusively establish that it meets this 101–408) to strengthen tribal and laws to protect the environment; requirement through a signed statement governments through building capacity • Develop the technical and program or resolution stating that its duly elected within the tribes in order to identify, capacity to carry out a comprehensive or appointed board of directors are plan, develop, and implement tribal environmental program and either Native Americans or Native environmental programs in a manner perform essential environmental Alaskans or a copy of the organizational that is consistent with tribal culture. program functions; charter or by-laws that clearly states that ANA is to support these activities on a • Promote environmental training the organization has a board drawn from government-to-government basis in a and education of tribal employees; members of those groups. • way that recognizes tribal sovereignty Develop technical and program Note: Under each competitive area, ANA and is consistent with tribal culture. capability to meet tribal and Federal will only accept one application which The Administration for Native regulatory requirements; serves or impacts a reservation, Tribe or Americans believes that responsibility • Develop technical and program Native American community. If a Tribe or for achieving environmental regulatory capability to monitor compliance and Alaska native village chooses not to submit enhancement rests with the governing enforcement of tribal environmental an application under a specific competitive bodies of Indian tribes, Alaska Native regulations, ordinances, and laws; and area, it may support another applicant’s villages, and with the leadership of • Ensure the tribal court system project (e.g., a tribal organization) which Native American groups. enforcement requirements are serves or impacts the reservation. ‘‘Environmental regulatory developed in concert with and support In this case, the applicant must enhancement’’ includes (but is not the tribe’s comprehensive include a Tribal resolution which limited to) the planning, development, environmental program. clearly demonstrates the Tribe’s support and application of laws, training, of the project and the Tribe’s monitoring, and enforcement D. Eligible Applicants understanding that the other applicant’s procedures, tribal courts, environmental The following organizations are project supplants the Tribe’s authority laboratories and other facilities, and eligible to apply under this competitive to submit an application under that associated regulatory activities to area: specific competitive area for the strengthen the tribal government’s • Federally recognized Indian tribes; duration of the approved grant period. capacity to enhance the quality of • Incorporated non-federally reservation life as measured by the recognized Indian tribes; E. Grantee Share of the Project reduction of pollutants in the air, water, • Alaska Native villages as defined in Grantees must provide at least 20 soil, food and materials encountered by the Alaska Native Claims Settlement Act percent of the total approved cost of the inhabitants of tribes and villages. (ANCSA) and/or nonprofit village project. The total approved cost of the Progress toward the goal of consortia; project is the sum of the ACF share and environmental regulatory enhancement • Nonprofit Alaska Native Regional the non-Federal share. The non-Federal would include the strengthening of Corporations/Associations with village share may be met by cash or in-kind tribal environmental laws, providing for specific projects; and contributions; although applicants are the training and education of those • Other tribal or village organizations encouraged to meet their match employees responsible for ensuring or consortia of Indian tribes. requirement through cash contributions. 44130 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices

Therefore, a project requesting $250,000 • the applicant’s specific is described and explained. Evidence of in Federal funds must include a match environmental regulatory needs; and the applicant’s ability to manage a of at least $62,500 (20% of total project • a clearly delineated strategy to project of the scope proposed is well cost). improve the capability of the governing documented. The application clearly As per 45 CFR Part 74.2, In-Kind body of a tribe to regulate shows the successful management of contributions is defined as ‘‘the value of environmental quality through projects of similar scope by the non-cash contributions provided by enhancing local capacity to perform organization, and/or by the individuals non-Federal third parties. Third party-in necessary regulatory functions. designated to manage or consult on the kind contributions may be in the form The application documents the type project. The tribe itself may not have of real property, equipment, supplies of involvement and support of the experience to meet this requirement but and other expendable property, and the community in the planning process and the proposed staff and consultants value of goods and services directly implementation of the proposed project. should have the required qualifications benefiting and specifically identifiable A Tribe may meet this requirement by and experience. The application should to the project or program.’’ submitting a resolution stating that clearly describe any previous or current In addition it may include other community involvement has occurred activities of the applicant organization Federal funding sources where its in the project planning. All other or proposed staff and/or consultants in legislation or regulations authorizes eligible applicants may meet this support of environmental regulatory using specific types of funds for a match requirement by providing enhancement. and provided the source relates to the documentation of community support/ (b) Position descriptions and/or ANA project, as follows: involvement. The type of community resumes of key personnel, including • Indian Child Welfare funds, you serve will determine the type of those of consultants, are presented. The through the Department of Interior; documentation necessary. position descriptions and/or resumes • Indian Self-Determination and For example, a tribal organization relate specifically to the staff proposed Education Assistance funds, through the may submit resolutions supporting the in the Approach Page and in the Department of Interior and the project proposal from each of its proposed Budget of the application. Department of Health and Human member tribes, as well as a resolution Position descriptions very clearly Services; and from the applicant organization. Other describe each position and its duties • Community Development Block examples of documentation include: and clearly relate to the personnel Grant funds, through the Department of community surveys; minutes of staffing required to achieve the project Housing and Urban Development. community meetings; questionnaires; objectives. Resumes indicate that the An itemized budget detailing the tribal presentations; and/or discussion/ proposed staff are qualified to carry out applicant’s non-Federal share, and its position papers. the project activities. Either the position source, must be included in an (b) Available resources (other than descriptions or the resumes contain the application. ANA and the non-Federal share) which qualifications and/or specialized skills If an applicant plans to charge will assist, and be coordinated with the necessary for overall quality indirect costs in its ANA application, a project are described. These resources management of the project. Resumes current copy of its Indirect Cost should be documented by letters or must be included if individuals have Agreement must be included in the documents of commitment of resources, been identified for positions in the application. not merely letters of support. application. A request for a waiver of the non- • ‘‘Letters of support’’ merely express Federal share requirement may be another organization’s endorsement of a Note: Applicants are strongly encouraged submitted in accordance with 45 CFR proposed project. Support letters are not to give preference to Native Americans in binding commitment letters or do not hiring staff and subcontracting services under 1336.50(b)(3) of the Native American an approved ANA grant. Program Regulations. factually establish the authenticity of other resources. (3) Project Objectives, Approach and F. Review Criteria • ‘‘Letters and other documents of Activities. (40 points) A proposed project should reflect the commitment’’ are binding when they The application proposes specific environmental regulatory purposes specifically state the nature, the amount, project objective work plans with stated and described in the Background and conditions under which another activities related to each specific section of this competitive area. The agency or organization will support a objective. The objective work plan(s) in evaluation criteria are closely related to project funded with ANA funds. the application includes project each other and are considered as a For example, a letter from another objectives and activities for each budget whole in judging the overall quality of Federal agency or foundation pledging a period proposed and demonstrates that an application. Points are awarded only commitment of $200,000 in each of the objectives and its activities: to applications which are responsive to construction funding to complement • Is measurable and/or quantifiable in this competitive area and these criteria. proposed ANA funded pre-construction terms of results or outcomes; Proposed projects will be reviewed on a activity is evidence of a firm funding • Supports the community’s strategy competitive basis using the following commitment. These resources may be for environmental regulatory evaluation criteria: human, natural or financial, and may enhancement; (1) Long-Range Goals and Available include other Federal and non-Federal • Clearly relates to the community’s Resources. (15 points) resources. (Applicant statements that long-range environmental goals; (a) The application describes the long- additional funding will be sought from • Can be accomplished with the range goals and strategy, including: other specific sources are not available or expected resources during • how specific environmental considered a binding commitment of the proposed project period; regulatory enhancement long-range outside resources.) • Indicates when the objective, and goal(s) relate to the proposed project (2) Organizational Capabilities and major activities under each objective, and strategy; Qualifications. (15 points) will be accomplished; • how the community intends to (a) The management and • Specifies who will conduct the achieve these goals; administrative structure of the applicant activities under each objective; and Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44131

• Supports a project that will be Implementation Grants, the funding bodies of Indian tribes, Alaska Native completed, self-sustaining, or financed level for a budget period of 12 months villages, and in the leadership of Native by other than ANA funds at the end of will be up to $125,000. American groups. The local community the project period. and its leadership are responsible for B. Background (4) Results or Benefits Expected. (20 determining its own goals, setting points) The Congress has recognized that the priorities, and planning and Completion of the proposed objectives history of past policies of the United implementing programs which support will result in specific, measurable States toward Indian and other Native the community’s long-range language results. The application shows how the American languages has resulted in a goals. expected results will help the dramatic decrease in the number of Preserving a language and ensuring its community meet its long-range Native American languages that have continuation is generally one of the first environmental goals. The specific survived over the past five hundred steps taken toward strengthening a information provided in the narrative years. Consequently, the Native group’s identity. Therefore, projects and objective work plans on expected American Languages Act was enacted in proposed under this program results or benefits for each objective is 1990 (Title I, Public Law 101–477) to announcement will contribute to the the standard upon which its address this decline. balanced development in a native achievement can be evaluated at the end This Act invested the United States community and can significantly of each budget year. government with the responsibility to contribute to its path toward self- (5) Budget. (10 points) work together with Native Americans to sufficiency. A detailed and fully explained budget ensure the survival of cultures and Under this competitive area eligible is provided for each budget period languages unique to Native America. applicants will have the opportunity to This law declares that it is the policy of requested which: develop their own language plans, the United States to ‘‘preserve, protect, • Justifies each line item, with a well- increase their technical capabilities, and and promote the rights and freedom of written justification, in the budget have access to financial and technical Native Americans to use, practice, and categories in Section B of the Budget resources in order to assess, plan, develop Native American languages.’’ Information of the application, develop and implement programs to The Congress made a significant first including the applicant’s non-Federal address the survival and continuing step in passing this legislation in 1990, share and its source; vitality of their languages. ANA but it served only as a declaration of • Includes and justifies sufficient cost recognizes that potential applicants may policy. No program initiatives were and other necessary details to facilitate have various levels of specialized proposed, nor were funds authorized to the determination of cost allowability knowledge and capabilities to address begin a significant program to carry out and the relevance of these costs to the their specific language concerns. This this policy. competitive area is designed to take into proposed project; and In 1992, Congressional testimony • Requests funds which are account these special needs and highlighted that of the several hundred circumstances. appropriate and necessary for the scope Native American languages that once of the proposed project. ‘‘Language preservation’’ is the existed, only about 155 languages are maintenance of a language so that it will G. Application Due Date still spoken or remembered today. not decline into non-use. However, only 20 are spoken by persons The closing date for submission of ‘‘Language vitality’’ is the active use of all ages, 30 are spoken by adults of applications under this competitive area of a language in a wide range of all ages, about 60 are spoken by middle- is March 7, 1997. domains of human life. aged adults, and 45 are spoken only by ‘‘Language replication’’ is defined as H. For Further Information Contact the most elderly. the application of a language program Sharon McCully (202) 690–5780, In response to this testimony, the model developed in one community to Department of Health and Human Congress passed the Native American other linguistically similar Services, Administration for Children Languages Act of 1992 (Public Law 102– communities. and Families, Administration for Native 524) to assist Indian tribes, Alaska ‘‘Language survival’’ is defined as the Americans, 200 Independence Ave., villages, and Native American groups to maintenance and continuation of S.W., Room 348–F, Washington, D.C. assure the survival and continuing language from one generation to another 20201–0001 vitality of their languages. Passage of in a wide range of aspects of community this law is an important second step to life. Competitive Area 4. Native American support the survival and continuation of Languages Preservation and Native American languages. It provides C. Proposed Projects to be Funded Enhancement Projects a basic building block foundation upon There are two types of projects A. Purpose and Availability of Funds which Tribal nations can rebuild applicants may apply for: economic strength and maintain rich • Category I—‘‘Planning Grants’’—for The purpose of this competitive area cultural diversity. projects up to 12 months, the funding is to announce the anticipated The Federal government recognizes level will be up to $50,000 or, availability of fiscal year 1997 funds for that substantial loss of Native American • Category II—‘‘Design and/or projects which assist Native Americans languages has occurred over the past Implementation Grants’’—for projects to assure the survival and continuing several hundred years. The nature and up to 36 months, the funding level for vitality of their languages. magnitude of the status of Native a budget period of 12 months will be up Approximately $1 million of financial American languages will become better to $125,000. assistance is anticipated to be available defined as language assessments are under this competitive area. made. Category I—Planning Grants For Category I, Planning Grants, the The Administration for Native The purpose of a Planning Grant is to funding level for a budget period of 12 Americans (ANA) believes that conduct an assessment and to develop months will be up to $50,000. For responsibility for achieving language(s) the plan needed to describe the current Category II, Design and/or project results rests with the governing status of the language(s) to be addressed 44132 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices and to establish community long-range the teaching and enhancement of Native Guam, American Samoa, Palau, or the language goal(s) to ensure its survival. American languages; Commonwealth of the Northern Mariana Project activities may include, but are • Establishment or support of a Islands. (The populations served may be not limited to: project to train Native Americans to located on these islands or in the United • To collect data, organize it, and produce or participate in television or States); and determine and describe current radio programs to be broadcast in Native • Tribally Controlled Community language status through a ‘‘formal’’ American languages; and Colleges, Tribally Controlled Post- method (e.g., work performed by a • Compilation, transcription, and Secondary Vocational Institutions, and linguist, and/or a language survey analysis of oral testimony to record and colleges and universities located in conducted by community members) or preserve Native American languages. Hawaii, Guam, American Samoa, Palau, an ‘‘informal’’ method (e.g., a Policy or the Commonwealth of the Northern community consensus of the language Mariana Islands which serve Native status based on elders, tribal scholars, It is ANA’s policy that funds will not American Pacific Islanders. and/or other community members); be awarded for projects addressing dead • To establish the community’s long- languages. Participating Organizations range language goals; and Requirement If a tribal organization, or other • To get the necessary training and eligible applicant, decides that the technical assistance to administer the The Institute of American Indian and objectives of its proposed Native project and achieve the project goal(s). Alaska Native Culture and Arts American language project would be Development has been established by accomplished more effectively through Category II—Design and/or the Act, or an alternative repository as Implementation Grants a partnership arrangement with a tribal determined by the Commissioner, shall school, college, or university, the The purpose of providing an option be the repository for copies of products applicant shall identify such school, for a Design and/or an Implementation from Native American languages grants college, or university as a participating Grant is: funded under this program organization in its application. Under a Option One: So tribes or communities announcement. At the end of the project partnership agreement, the applicant can design and/or implement a language period, products or project models of will be responsible for the fiscal, program to achieve the community’s Native American languages grants administrative and programmatic long-range language goal(s); and funded by this program announcement management of the grant. Option Two: To accommodate where should be sent to the designated Proof of an applicant’s nonprofit the Tribe or community is in their long- repository. Specific information about status, such as an IRS determination of term language(s) goals continuum. the repository is in the ANA application nonprofit status under IRS Code Applicants under Category II must be kit. 501(c)(3), must be included in the able to document that: Federally recognized Indian Tribes (a) Language information has been application. are not required to comply with this If the applicant, other than a tribe or collected and analyzed, and that it is requirement. current (compiled within 36 months an Alaska Native Village government, is prior to the grant application); D. Eligible Applicants proposing a project benefiting Native (b) The community has established The following organizations are Americans or Native Alaskans, or both, long-range language goals; and eligible to apply for funding under this it must provide assurance that its duly (c) Community representatives are competitive area: elected or appointed board of directors adequately trained so that the proposed • Federally recognized Indian Tribes; is representative of the community to be project goals can be achieved. • Consortia of Indian Tribes; served. An organization can Category II applications may include • Incorporated non-Federally conclusively establish that it meets this purchasing specialized equipment recognized Tribes; requirement through a signed statement (including audio and video recording • Incorporated nonprofit multi- or resolution stating that its duly elected equipment, computers, and software) purpose community-based Indian or appointed board of directors are necessary to achieve the project organizations; either Native Americans or Native objectives. The applicant must fully • Urban Indian Centers; Alaskans or a copy of the organizational justify the need for this equipment and • National or regional incorporated charter or by-laws that clearly states that explain how it will be used to achieve nonprofit Native American the organization has a board drawn from the project objectives. organizations with Native American members of those groups. The types of projects and activities community-specific objectives; Under each competitive area, ANA ANA can fund under Category II • Alaska Native villages as defined in will only accept one application which include, but are not limited to: the Alaska Native Claims Settlement Act serves or impacts a reservation, Tribe or • Establishment and support of a (ANCSA) and/or nonprofit village Native American community. If a Tribe community Native American language consortia; or Alaska Native village chooses not to project to bring older and younger • Incorporated nonprofit Alaska submit an application under a specific Native Americans together to facilitate Native multi-purpose community-based competitive area, it may support another and encourage the teaching of Native organizations; applicant’s project (e.g., a tribal American languages skills from one • Nonprofit Alaska Native Regional organization) which serves or impacts generation to another; Corporations/Associations in Alaska the reservation. • Establishment of a project to train with village specific projects; In this case, the applicant must Native Americans to teach Native • Nonprofit Native organizations in include a Tribal resolution which American languages to others or to Alaska with village specific projects; clearly demonstrates the Tribe’s support enable them to serve as interpreters or • Public and nonprofit private of the project and the Tribe’s translators of such languages; agencies serving Native Hawaiians; understanding that the other applicant’s • Development, printing, and • Public and nonprofit private project supplants the Tribe’s authority dissemination of materials to be used for agencies serving native peoples from to submit an application under that Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44133 specific competitive area for the of Public Law 95–134, as amended (48 American language(s) to be addressed duration of the approved grant period. U.S.C. 1469a) under which HHS waives by the project. any requirement for local matching E. Grantee Share of the Project Note: Planning Grant applicants may not funds under $200,000 (including in- have all the information requested about Grantees must provide at least 20 kind contributions). their current language status, since obtaining percent of the total approved cost of the this data may be part of the planning grant project. The total approved cost of the F. Review Criteria application being reviewed. Applicants project is the sum of the ACF share and The proposed project should address applying for Category I—Planning Grants can the non-Federal share. The non-Federal the Native American languages meet this requirement by explaining their share may be met by cash or in-kind purposes stated and described in the current language status and providing a contributions; although applicants are Background (Section B) of this detailed description of any circumstances or encouraged to meet their match competitive area. barriers which have prevented the collection of community language data. requirements through cash Planning grant applications may not contributions. Therefore, a project have all the information requested about (b) The application fully describes requesting $125,000 in Federal funds their current language status, since existing community language or must include a match of at least $31,250 obtaining this data may be part of the language training programs and projects, (20% total project cost). planning grant application being if any, that support the Native American As per 45 CFR part 74.2, In-Kind submitted. language to be addressed by the contributions is defined as ‘‘the value of The evaluation criteria below are proposed project. non-cash contributions provided by closely inter-related. They are Existing programs and projects may non-Federal third parties. Third party-in considered as a whole in judging the be ‘‘formal’’ (e.g., work performed by a kind contributions may be in the form overall quality of an application. linguist, and/or a language survey of real property, equipment, supplies Points are awarded only to conducted by community members) or and other expendable property, and the applications which respond to this ‘‘informal’’ (e.g., a community value of goods and services directly competitive area and to these criteria. consensus of the language status based benefiting and specifically identifiable Proposed projects will be reviewed on a on elders, tribal scholars, and/or other to the project or program.’’ competitive basis using the following community members). In addition the non-Federal share may evaluation criteria: The description should answer the include certain funds distributed to a (1) The Current Status of Native following: tribe, including interest, by the Federal American Language(s) is Described and (1) Has applicant had a community government: Description(s) of Existing Programs/ language or language training program • Funds from the satisfaction of a Projects (if any) Which Support the within the last 36 months? claim made under Federal law; Language(s) are Included. (10 points) (2) Has applicant had a community • Funds collected and administered (a) The application fully describes the language or language training program on behalf of such tribe or its constituent current status of the Native American within the last 10 years? members; or language(s) in the community. (‘‘Current Applicants that answer ‘‘no’’ to either • Funds for general tribal status’’ is defined as data compiled question (1) or (2) should provide a administration or tribal development within the previous 36 months.) detailed explanation of what barriers or under a formula or subject to a tribal Applicants applying for Category I— circumstances prevented the budgeting priority system, such as, but Planning grants can meet their current establishment or implementation of a not limited to, funds involved in the language status by providing a detailed community language program. Applicants that answer ‘‘yes’’ to either settlement of land or other judgment description of any circumstances or questions (1) or (2) should describe claims, severance or other royalty barriers which have prevented the recent language program(s), including: payments, or payments under the Indian collection of community language data. Self-Determination Act (25 U.S.C. 450f (1) Program goal(s); The description of ‘‘current status’’ (2) Number of program participants; et seq.) or tribal budget priority system. minimally includes the following (3) Number of speakers; A complete itemized budget must also information: (4) Age range of participants (e.g., 0– detail the applicant’s non-Federal share, (1) Number of speakers of the 5; 6–10; 11–18;, etc.); and its source. language(s); (5) Number of language teachers; If an applicant plans to charge (2) Age of speakers; (6) Criteria used to acknowledge indirect costs in its ANA application, a (3) Gender of speakers; competency of language teachers; current copy of its Indirect Cost (4) Level(s) of fluency; (7) Resources available, if any, to the Agreement must be included in the (5) Number of first language speakers applicant (e.g., valid grammars, application. (the Native language is the first language dictionaries, and/or orthographics or A request for a waiver of the non- acquired); describe other suitable resources); and Federal share requirement may be (6) Number of second language (8) What has been achieved. submitted in accordance with 45 CFR speakers (the Native language is the (2) Long-Range Goals and Available 1336.50(b)(3) of the Native American second language acquired); Resources. (25 points) Program Regulations. (7) Where the language is used (a) The application describes the Applications submitted as a (specific uses such as: home, court proposed project’s long-range goal(s) partnership arrangement with a school, system, religious ceremonies, church, and strategy, including: college, or university, may use multimedia, school, governance • how the specific Native contributions from the ‘‘partner’’ activities and other, as appropriate to American(s) long range community organization(s) to meet the non-Federal applicant); goal(s) relate to the proposed project; share, as appropriate. (8) Source of data; (formal and/or • how the goals fit within the context Applications originating from informal); and of the applicant’s current language American Samoa, Guam, Palau, or the (9) Rate of language loss or gain. status; and Commonwealth of the Northern Mariana The application has clearly described • a clearly delineated strategy to Islands are covered under section 501(d) the current status of the Native assist in assuring the survival and 44134 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices continued vitality of the Native If the applicant proposes to enter into data, outcomes or other products can be American language(s) addressed in the a partnership arrangement with a shared and used or modified, by other community. school, college, or university, tribes or communities. If this is not (b) The application explains how the documentation of this commitment feasible or culturally appropriate, community or tribal government (where must be included in the application. provide the reasons. The goal is to one exists) intends to achieve these Note: Applicants from the Native American provide opportunities to ensure the goals. Pacific Islands are not required to provide a survival and continuing vitality of The application documents the type 20% match for the non-Federal share if it is Native American languages. of involvement and support of the under $200,000 and may not have points (b) A Plan to Preserve Project community in the planning process and reduced for this policy. They are, however, Products describes how the products of implementation of the proposed project. expected to coordinate non-ANA resources the project will be preserved through A Tribe may meet this requirement by for the proposed project, as are all ANA archival or other culturally appropriate applicants. submitting a resolution stating that methods, for the benefit of future community involvement has occurred (3) Project Objectives, Approach and generations. in the project planning. All other Activities. (25 points) (6) Organizational Capabilities/ eligible applicants may meet this The proposed objectives in the Qualifications and Budget. (15 points) requirement by providing Objective Work Plan(s) relate to the (a) The management and documentation of community support/ competitive area goal to ensure the administrative structure of the applicant involvement. The type of community survival and continuing vitality of is explained. Evidence of the applicant’s served will determine the type of Native American language(s). More ability to manage a project of the documentation necessary. specifically, together they will achieve proposed scope is well defined. The For example, a tribal organization the Tribe or community’s language goals application clearly demonstrates the may submit resolutions supporting the for the proposed project. If the project successful management of projects of project proposal from each of its is for more than one year, the similar scope by the organization and/ member’s tribes, as well as a resolution application includes Objective Work or by the individuals designated to from the applicant organization. Other Plans for each year (budget period) manage the project. examples of documentation include: proposed. (b) Position descriptions and/or community surveys; minutes of Each Objective Work Plan proposed resumes of key personnel, including community meetings; questionnaires; clearly describes: those of consultants, are presented. The • The Tribal government’s, or tribal presentations; and/or discussion/ position descriptions and/or resumes community’s active involvement in the position papers. relate specifically to the staff proposed continuing participation of Native Applications from National Indian in the Approach Page and in the and Native organizations must clearly American language speakers; • Measurable or quantifiable results proposed Budget of the application. demonstrate a need for the project, Position descriptions very clearly explain how the project was originated, or outcomes; • How they relate to the community’s describe the position and its duties and state who the intended beneficiaries clearly relate to the personnel staffing will be, and describe how the recipients long-range language goals; • How the project can be required to achieve the project will actually benefit from the project. accomplished with the available or objectives. Resumes demonstrate that National Indian and Native expected resources during the project the proposed staff are qualified to carry organizations should describe their period; out the project activities. Either the membership and define how the • How the main activities will be position descriptions or the resumes organization operates. accomplished; contain the qualifications, and/or (c) Available resources (other than • Who specifically will conduct the specialized skills, necessary for overall ANA and the non-Federal share) which activities under each objective; quality management of the project. will assist and be coordinated with the • For Category I projects, what the Resumes must be included if project are described. These resources next steps may be after the Planning individuals have been identified for should be documented by letters or project is completed; and positions in the application. documents of commitment of resources, • For Category II projects, how the Note: Applicants are strongly encouraged and not ‘‘letters of support.’’ project will be completed, become self- • to give preference to Native Americans in ‘‘Letters of support’’ merely express sustaining, or be financed by other than another organization’s endorsement of a hiring staff and subcontracting services under ANA funds at the end of the project an approved ANA grant. proposed project. Support letters are not period. binding commitment letters or (4) Evaluation Plan. (15 points) (c) A detailed and fully explained documents that factually establish the A section of the application includes budget is provided for each budget authenticity of other resources. an ‘‘Evaluation Plan’’ with a baseline to period requested which: • ‘‘Letters and other documents of measure project outcomes, including, • Justifies each line item, with a well- commitment’’ are binding and but not limited to, describing effective written justification, in the budget specifically state the nature, amount and language growth in the community (e.g., categories in Section B of the Budget conditions under which another agency an increase of Native American Information of the application, or organization will support a project language use). This plan will be the including the applicant’s non-Federal funded with ANA funds. These basis for evaluating the community’s share and its source; resources may be human, natural or progress in achieving its language goals • Includes and justifies sufficient cost financial, and may include other and objectives. and other necessary details to facilitate Federal and non-Federal resources. (5) Sharing Plan and Plan to Preserve the determination of cost allowability Applicant statements that additional Project Products (10 points). and the relevance of these costs to the funding will be sought from other A section of the application includes proposed project; and specific sources are not considered a two plans: • Requests funds which are binding commitment of outside (a) A Sharing Plan that identifies how appropriate and necessary for the scope resources. the project’s methodology, research of the proposed project. Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44135

Note: (Applicants from the Native laboratories and other facilities, and be supported by funds other than American Pacific Islands are exempt from the associated regulatory activities to ANA’s. $200,000 non-Federal share requirement). strengthen the tribal government’s C. Activities That Cannot be Funded by capacity to enhance the quality of G. Application Due Date ANA reservation life as measured by the The closing date for submission of reduction of pollutants in the air, water, The Administration for Native applications under this competitive area soil, food and materials encountered by Americans does not fund projects that is March 21, 1997. inhabitants of tribes and villages. operate indefinitely or require ANA H. For Further Information Contact • ‘‘Language preservation’’ is the funding on a recurring basis. The Administration for Native Americans Deborah Yatsko, (202) 690–7843, maintenance of a language so that it will not decline into non-use. does not fund objectives or activities for Department of Health and Human the core administration of an Services, Administration for Children • ‘‘Language vitality’’ is the active use of a language in a wide range of organization. ‘‘Core administration’’ is and Families, Administration for Native funding for staff salaries for those Americans, 200 Independence Ave., domains of human life. • ‘‘Language replication’’ is the functions which support the S.W., Room 348–F, Washington, D.C. organization as a whole, or for purposes 20201–0001. application of a language program model developed in one community to unrelated to the actual management or Part III—General Application other linguistically similar implementation of work conducted Information and Guidance communities. under an ANA approved project. Under Competitive Area 2, ANA will • ‘‘Language survival’’ is the A. Definitions consider funding core administrative maintenance and continuation of Funding areas in this program capacity building projects at the village language from one generation to another announcement are based on the government level if the village does not in a wide range of aspects of community following definitions: have governing systems in place. • A ‘‘multi-purpose community-based life. However, functions and activities that Native American organization’’ is an B. General Considerations are clearly project related are eligible for association and/or corporation whose grant funding. For example, the charter specifies that the community Non-ANA resources should be management and administrative designates the Board of Directors and/or leveraged to strengthen and broaden the functions necessary to carry out an ANA officers of the organization through an impact of the proposed project in the approved project are not considered elective procedure and that the community. Project designs should ‘‘core administration’’ and are, organization functions in several explain how those parts of projects therefore, eligible costs. Additionally, different areas of concern to the which ANA does not fund will be ANA will fund the salaries of approved members of the local Native American financed through other sources. For staff for time actually and reasonably community. These areas are specified in example, ANA does not fund spent to implement a funded ANA the by-laws and/or policies adopted by construction. Applicants must show the project. the organization. They may include, but relationship of non-ANA funded Projects or activities that generally need not be limited to, economic, activities to those objectives and will not meet the purposes of this artistic, cultural, and recreational activities that are funded with ANA announcement are discussed further in activities, and the delivery of human grant funds. Part III, Section H, General Guidance to services such as health care, day care, Costs of fundraising, including Applicants, below. financial campaigns, endowment drives, counseling, education, and training. D. Multi-Year Projects • A ‘‘multi-year project’’ is a project solicitation of gifts and bequests, and on a single theme that requires more similar expenses incurred solely to raise Applicants may apply for projects of than 12 months to complete and affords capital or obtain contributions are up to three years. A multi-year project the applicant an opportunity to develop unallowable under a grant award. is a project on a single theme that and address more complex and in-depth However, even though these costs are requires more than 12 months to strategies than can be completed in one unallowable for purposes of computing complete and affords the applicant an year. A multi-year project cannot be a charges to Federal awards, they must be opportunity to develop and address series of unrelated objectives with treated as direct costs for purposes of more complex and in-depth strategies activities presented in chronological determining indirect cost rates and be than can be completed in one year. order over a two or three year period. allocated their share of the Applicants are encouraged to develop • ‘‘Budget Period’’ is the interval of organization’s indirect costs if they multi-year projects. A multi-year project time (usually 12 months) into which the represent activities which (1) include cannot be a series of unrelated project period is divided for budgetary the salaries of personnel, (2) occupy objectives with activities presented in and funding purposes. space, and (3) benefit from the chronological order over a two or three • ‘‘Core administration’’ is funding organization’s indirect costs. year period. for staff salaries for those functions All projects funded by ANA must be Awards, on a competitive basis, will which support the organization as a completed, or self-sustaining or be for a one-year budget period, whole, or for purposes unrelated to the supported with other than ANA funds at although project periods may be for actual management or implementation the end of the project period. three years. Applications for of work conducted under an ANA ‘‘Completed’’ means that the project continuation grants funded under these approved project. ANA funded is finished, and the desired awards beyond the one-year budget • ‘‘Environmental regulatory result(s) have been attained. ‘‘Self- period, but within the three-year project enhancement’’ includes (but is not sustaining’’ means that a project will period, will be entertained in limited to) the planning, development, continue without outside resources. subsequent years on a non-competitive and application of laws, training, ‘‘Supported by other than ANA funds’’ basis, subject to the availability of monitoring, and enforcement means that the project will continue funds, satisfactory progress of the procedures, tribal courts, environmental beyond the ANA project period, but will grantee and determination that 44136 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices continued funding would be in the best will accept only one application per notification to the applicants. The FAA interest of the Government. Therefore, competitive area from any one will state the amount of Federal funds this program announcement does not applicant. Alaska Native entities may awarded, the purpose of the grant, the apply to current ANA grantees with submit a SEDS application under either terms and conditions of the grant award, multi-year projects that apply for competitive area 1 or 2, but not under the effective date of the award, the continuation funding for their second or both. project period, the budget period, and third year budget periods. If an eligible applicant sends in two the amount of the non-ACF matching applications for the same competitive E. Intergovernmental Review of Federal share requirement. area, the one with the earlier postmark Programs will be accepted for review unless the G. The Review Process This program is not covered by applicant withdraws the earlier 1. Initial Application Review Executive Order 12372 or 45 C.F.R. Part application. Applications submitted by the closing 100. 3. Application Consideration date and verified by the postmark under F. The Application Process this program announcement will The ANA Commissioner determines 1. Availability of Application Forms undergo a pre-review to determine that: the final action to be taken on each grant • The applicant is eligible in In order to be considered for a grant application received under this program accordance with the Eligible Applicants under this program announcement, an announcement. Section of this announcement; and application must be submitted on the The following points should be taken • The application narrative, forms forms supplied and in the manner into consideration by all applicants: and materials submitted are adequate to • Incomplete applications and prescribed by ANA. The application kits allow the review panel to undertake an applications that do not conform to this containing the necessary forms and in depth evaluation. (All required announcement will not be accepted for instructions may be obtained from: materials and forms are listed in the review. Applicants will be notified in Department of Health and Human Grant Application Checklist in the writing of any such determination by Services, Administration for Children Application Kit). ANA. and Families, Administration for Native • Americans, Room 348F, Hubert H. Complete applications that conform 2. Competitive Review of Accepted Humphrey Building, 200 Independence to all the requirements of this program Applications Avenue, S.W., Washington, D.C. 20201– announcement are subjected to a Applications which pass the pre- 0001, Attention: 93612–971, Telephone: competitive review and evaluation review will be evaluated and rated by an (202) 690–7776. process (discussed in section G below). independent review panel on the basis Independent review panels consisting of 2. Application Submission of the specific evaluation criteria listed reviewers familiar with (1) American in Part II. These criteria are used to One signed original, and two copies, Indian Tribes and Native American evaluate the quality of a proposed of the grant application, including all communities and organizations, (2) project, and to determine the likelihood attachments, must be mailed on or environmental issues, and (3) Native of its success. before the specific closing date of each American languages, as appropriate, ANA competitive area to: Department of evaluates each application using the 3. Determination of Ineligibility Health and Human Services, published criteria in each funding Applicants who are initially rejected Administration for Children and competitive area. As a result of the from competitive evaluation because of Families, Division of Discretionary review, a numerical score will be ineligibility, may appeal an ANA Grants, 370 L’Enfant Promenade, S.W., assigned to each application. decision of applicant ineligibility. • Mail Stop 6C–462, Washington, D.C. The Commissioner’s funding Likewise, applicants may also appeal an 20447, Attention: William J. McCarron, decision is based on the review panel’s ANA decision that an applicant’s ANA No. 93612–971. analysis of the application, proposed activities are ineligible for Hand delivered applications are recommendation and comments of ANA funding consideration. The appeals accepted during the normal working staff, State and Federal agencies having process is stated in the final rule hours of 8:00 a.m. to 4:30 p.m., Monday contract and grant performance related published in the Federal Register on through Friday, on or prior to the information, and other interested August 19, 1996 (61 FR 42817). established closing date at: parties. Administration for Children and • The Commissioner makes grant H. General Guidance to Applicants Families, Division of Discretionary awards consistent with the purpose of The following information is provided Grants, Aerospace Center, ACF Mail the Act, all relevant statutory and to assist applicants in developing a Room, Second Floor Loading Dock, 901 regulatory requirements, this program competitive application. D Street, S.W., Washington, D.C. 20024. announcement, and the availability of The application (Form 424) must be funds. 1. Program Guidance signed by an individual authorized (1) • After the Commissioner has made • The Administration for Native to act for the applicant tribe or decisions on all applications, Americans funds projects that organization, and (2) to assume the unsuccessful applicants are notified in demonstrate the strongest prospects for applicant’s obligations under the terms writing within approximately 120 days addressing the stated purposes of this and conditions of the grant award, of the closing date. The notification will program announcement. Projects will including Native American Program be accompanied by a critique including not be funded on the basis of need statutory and regulatory requirements. recommendations for improving the alone. Each tribe, Native American application. Successful applicants are • In discussing the goals, strategy, organization, or other eligible applicant notified through an official Financial and problems being addressed in the may compete and receive a grant award Assistance Award (FAA) document. application, include sufficient in each of the three competitive areas ANA staff cannot respond to requests background and/or history of the under this announcement. The for information regarding funding community concerning these issues Administration for Native Americans decisions prior to the official and/or progress to date, as well as the Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44137 size of the population to be served. This any specific financial circumstances environmental regulatory enhancement material will assist the reviewers in which may impact on the project, such and Native American languages determining the appropriateness and as any monetary or land settlements preservation and enhancement under potential benefits of the proposed made to the applicant, and any the issue-specific competitive areas project. restrictions on the use of those described in this announcement. • In the discussion of community- settlements. When the applicant appears • For purposes of this announcement, based, long-range goals, non-Federally to have other resources to support the ANA is using the Bureau of Indian recognized and off-reservation groups proposed project and chooses not to use Affairs’ list of Federally recognized are encouraged to include a description them, the applicant should explain why Indian tribes which includes nonprofit of what constitutes their specific it is seeking ANA funds and not Alaska Native community entities or ‘‘community.’’ utilizing these resources for the project. tribal governing bodies (IRA or • Applicants must document the • Reviewers of applications for ANA traditional councils). Other Federally community’s support for the proposed indicate they are better able to evaluate recognized Indian tribes which are not project and explain the role of the whether the feasibility has been included on this list (e.g., those Tribes community in the planning process and addressed and the practicality of a which have been recently recognized or implementation of the proposed project. proposed economic development restored by the United States Congress) For tribes, a current signed resolution project, or a new business, if the are also eligible to apply for ANA funds. from the governing body of the tribe applicant includes a business plan that • The Administration for Native supporting the project proposal stating clearly describes its feasibility and the Americans will accept only one that there has been community approach for the implementation and application, per competitive area, from involvement in the planning of this marketing of the business. (ANA has any one applicant. If an eligible project will suffice as evidence of included sample business plans in the applicant sends in two applications for community support/involvement. For application kit). It is strongly the same competitive area, the one with all other eligible applicants, the type of recommended that an applicant use the earlier postmark will be accepted for community you serve will determine these materials as guides in developing review unless the applicant withdraws the type of documentation necessary. the earlier application. a proposal for an economic • For example, a tribal organization may development project or business that is An application from a federally submit resolutions supporting the part of the application. recognized Tribe, Alaska Native Village project proposal from each of its • Applications which were or Native American organization must members tribes, as well as a resolution disapproved under a previous closing be from the governing body of the Tribe from the applicant organization. Other date and revised for resubmission or organization. ANA will not accept examples of documentation include: should make reference to the changes in applications from tribal components community surveys; minutes of their current application which are which are tribally-authorized divisions community meetings; questionnaires; based on ANA panel review comments. of a larger tribe, unless the application tribal presentations; and/or discussion/ includes a Tribal resolution which position papers. Technical Guidance clearly demonstrates the Tribe’s support • Applications from National Indian • It is strongly suggested that the of the project and the Tribe’s and Native American organizations applicant follow the Supplemental understanding that the other applicant’s must demonstrate a need for the project, Guide included in the ANA application project supplants the Tribe’s authority explain how the project was originated, kit to develop an application. The Guide to submit an application under that state who the intended beneficiaries provides practical information and specific competitive area for the will be, and describe how the recipients helpful suggestions, and is an aid to duration of the approved grant period. • will actually benefit from the project. help applicants prepare ANA Under each competitive area, ANA • An application should describe a applications. will only accept one application which clear relationship between the proposed • Applicants are encouraged to have serves or impacts a reservation, Tribe, or project, the social and economic someone other than the author apply the Native American community. If a Tribe, development strategy, or environmental evaluation criteria in the program or Alaska Native village chooses not to or language goals, as appropriate, and announcement and score the submit an application under a specific the community’s long-range goals or application prior to its submission, in competitive area, it may support another plan. order to gain a better sense of the applicant’s project (e.g., a tribal • The project application, including application’s quality and potential organization) which serves or impacts the Objective Work Plans, must clearly competitiveness in the ANA review the reservation. In this case, the identify in measurable terms the process. applicant must include a Tribal expected results, benefits or outcomes of • For purposes of developing an resolution which clearly demonstrates the proposed project, and the positive or application, applicants should plan for the Tribe’s support of the project and continuing impact that the project will a project start date approximately 120 the Tribe’s understanding that the other have on the community. days after the closing date under which applicant’s project supplants the Tribe’s • Supporting documentation, the application is submitted. authority to submit an application including letters of support, if available, • The Administration for Native under that specific competitive area for or other testimonies from concerned Americans will not fund essentially the duration of the approved grant interests other than the applicant should identical projects serving the same period. be included to demonstrate support for constituency. • The application’s Form 424 must be the feasibility of the project and the • If a project could be supported by signed by the applicant’s representative commitment of other resources to the other Federal funding sources, the authorized to act with full authority on proposed project. applicant should fully explain its behalf of the applicant. • In the ANA Project Narrative, reasons for not pursuing other Federal • The Administration for Native Section A of the application package, funds for the project. Americans recommends that the pages ‘‘Resources Available to the Proposed • Applicants are strongly encouraged of the application be numbered Project,’’ the applicant should describe to submit proposals addressing sequentially and that a table of contents 44138 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices be provided. Simple tabbing of the than one year and an acquisition cost of • Proposals from consortia of tribes sections of the application is also $5,000 or more per unit.’’ During that are not specific with regard to helpful to the reviewers. negotiation, such expenditures may be support from, and roles of, member • An application with an original deleted from the budget of an otherwise tribes. ANA expects an application from signature and two additional copies are approved application, if not fully a consortium to have goals and required. justified by the applicant and not objectives that will create positive • The Cover Page (included in the deemed appropriate to the needs of the impacts and outcomes in the Kit) should be the first page of an project by ANA. communities of its members. Proposals application, followed by the one-page • Applicants are encouraged to from consortia of tribes should have abstract. request a legibly dated receipt from a individual objectives which are related • The Approach page (Section B of commercial carrier or U.S. Postal to the larger goal of the proposed the ANA Program Narrative) for each Service as proof of timely mailing. project. Project objectives may be Objective Work Plan proposed should tailored to each consortia member, but be of sufficient detail to become a 3. Projects or Activities That Generally within the context of a common goal for monthly staff guide for project Will Not Meet the Purposes of This the consortia. In situations where both responsibilities if the applicant is Announcement a consortia of tribes and the tribes who funded. • Projects in which a grantee would belong to the consortia receive ANA • The applicant should specify the provide training and/or technical funding, ANA expects that consortia entire project period length on the first assistance (T/TA) to other tribes or groups will not seek funding that page of the Form 424, Block 13, not the Native American organizations which duplicates activities being conducted by length of the first budget period. Should are otherwise eligible to apply to ANA their member tribes. the application’s contents propose one (‘‘third party T/TA’’). However, the • Projects that will not be completed, length of project period and the Form purchase of T/TA by a grantee for its self-sustaining, or supported by other 424 specify a conflicting length of own use or for its members’ use (as in than ANA funds, at the end of the project period, ANA will consider the the case of a consortium), where T/TA project period. project period specified on the Form is necessary to carry out project • ANA will not fund the purchase of 424 as governing. real estate (see 45 CFR 1336.50 (e)) or • objectives, is acceptable. In addition, T/ Line 15a of the Form 424 must TA is an allowable activity for construction (see ACF Grants specify the Federal funds requested for environmental regulatory enhancement Administration Manual § 3.12). • the first Budget Period, not the entire projects submitted under Competitive ANA will not fund investment project period. Area 3, and Native American languages capital for purchase or takeover of an • If a profit-making venture is being projects submitted under Competitive existing business, for purchase or proposed, profits must be reinvested in Area 4. acquisition of a franchise, or for the business in order to decrease or • Projects that request funds for purchase of stock or other similar eliminate ANA’s future participation. feasibility studies, business plans, investment instruments. Such revenue must be reported as • marketing plans or written materials, Renovation or alteration unless it is general program income. A decision such as manuals, that are not an essential for the project. Renovation or will be made at the time of grant award essential part of the applicant’s long- alteration costs may not exceed the regarding appropriate use of program range development plan. As an objective lesser of $150,000 or 25 percent of the income. (See 45 CFR part 74 and part of a larger project, business plans are total direct costs approved for the entire 92.) allowable. However, ANA is not budget period. • Applicants may propose a 17 month • Projects originated and designed by interested in funding ‘‘wish lists’’ of project period. However, the project consultants who provide a major role for business possibilities. ANA expects period for the first year of a multi-year themselves in the proposed project and written evidence of the solid investment project may only be 12 months. are not members of the applicant • of time and consideration on the part of Applicants proposing multi-year organization, tribe or village. projects must fully describe each year’s the applicant with regard to the project objectives and activities. development of business plans. I. Paperwork Reduction Act of 1995 Separate Objective Work Plans (OWPs) Business plans should be developed Under the Paperwork Reduction Act must be presented for each project year based on market analysis and feasibility of 1995, Pub. L. 104–13, the Department and a separate itemized budget of the studies regarding the potential success is required to submit to the Office of Federal and non-Federal costs of the to the business prior to the submission Management and Budget (OMB) for project for each budget period must be of the application. review and approval any reporting and • included. The support of on-going social record keeping requirements in • Applicants for multi-year projects service delivery programs or the regulations including program must justify the entire time-frame of the expansion, or continuation, of existing announcements. This program project (i.e., why the project needs social service delivery programs. announcement does not contain • funding for more than one year) and Core administration functions, or information collection requirements clearly describe the results to be other activities, which essentially beyond those approved for ANA grant achieved for each objective by the end support only the applicant’s on-going applications under the Program of each budget period of the total project administrative functions. However, Narrative Statement by OMB. period. under Competitive Area 2, ANA will • The Administration for Native consider funding core administrative J. Receipt of Applications Americans will critically evaluate capacity building projects at the village Applications must either be hand applications in which the acquisition of government level if the village does not delivered or mailed to the address in equipment is a major component of the have governing systems in place. Section F, The Application Process: Federal share of the budget. ‘‘Equipment • Project goals which are not Application Submission. The is tangible, non-expendable personal responsive to one or more of the funding Administration for Native Americans property having a useful life of more competitive areas. will not accept applications submitted Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Notices 44139 via facsimile (FAX) equipment. date from the U.S. Postal Service. applicants because of acts of God such Videotapes and cassette tapes may not Private metered postmarks shall not be as floods, hurricanes, etc., or when there be included as part of a grant acceptable as proof of timely mailing.) is a widespread disruption of the mails. application for panel review. • No additional material will be However, if ACF does not extend the accepted, or added to an application, deadline for all applicants, it may not 1. Deadlines unless it is postmarked by the deadline waive or extend the deadline for any Applications mailed through the U.S. date. applicant. Postal Service or a commercial delivery 2. Late applications (Catalog of Federal Domestic Assistance service shall be considered as meeting Program Numbers: 93.612 Native American an announced closing date if they are Applications which do not meet the criteria in the above paragraph of this Programs; 93.581 Improving the Capability of either: Indian Tribal Governments to Regulate section are considered late applications • Received on or before the deadline Environmental Quality; and 93.587 and will be returned to the applicant. Promoting the Survival and Continuing date at the address specified in Section The Administration for Children and F2, Application Submission; or Vitality of Native American Languages.) Families shall notify each late applicant Dated: August 21, 1996. • Sent on, or before, the deadline date that its application will not be and received in time for the ANA considered in the current competition. Gary N. Kimble, independent review. (Applicants are Commissioner, Administration for Native cautioned to request a legibly dated 3. Extension of Deadlines Americans. receipt from a commercial carrier or The Administration for Children and [FR Doc. 96–21712 Filed 8–26–96; 8:45 am] U.S. Postal Service or a legible postmark Families may extend the deadline for all BILLING CODE 4184±01±P federal register August 27,1996 Tuesday Development Week,1996 Proclamation 6913ÐMinorityEnterprise The President Part III 44141

44143

Federal Register Presidential Documents Vol. 61, No. 167

Tuesday, August 27, 1996

Title 3— Proclamation 6913 of August 23, 1996

The President Minority Enterprise Development Week, 1996

By the President of the United States of America

A Proclamation As our Nation continues to surge forward in the competitive arena of inter- national business, minority entrepreneurs are playing an increasingly impor- tant role. In the new global economy, minority-owned businesses represent a unique advantage for the United States; the diversity of our national business community is one of its main strengths. Behind this success lies the daily work of thousands of minority business men and women who are continuing to renew the validity of the American Dream. Moreover, they are showing that the Dream is strongest when all can participate. These Americans have stepped forward to accept several challenges: the challenge of opening economic participation to all citizens; the challenge of overcoming the under-representation of minorities in business ownership and management; and the challenge of creating jobs in the communities where they are needed most. These minority entrepreneurs entered the mar- ketplace with no guarantees of success, and their achievements have helped level the playing field for others who wish to follow in their footsteps. Minority business leaders contribute to our country’s cultural and social heritage as well as to its economic health. As business pioneers, they are valuable role models to our youth, living heroes whose hard work and self-empowerment are strong examples for others to follow. These are the people whose work we celebrate during this 14th annual observance of Minority Enterprise Development Week. This year’s observance is particularly poignant. It comes just months after our Nation lost Commerce Secretary Ron Brown and a group of talented and dedicated Federal employees and American business people in a tragic plane crash during a trade mission to open commercial opportunities for American businesses in Bosnia. Ron Brown worked hard to include minority business interests in our Na- tion’s business and economic development policies, and as we carry forward his legacy, it is our responsibility to ensure that all Americans can see business ownership as more than just a dream. Our future as a world economic power rests on the notion that business ownership can be attained by anyone willing to work toward that goal. Minority Enterprise Development Week is a time to spotlight the minority men and women who provide the goods, services, and jobs that keep this Nation strong. These Americans support their communities and inspire future generations. They are confident and competent people whose commercial accomplishments show them to be equal to any fair competition, whether here or abroad. NOW, THEREFORE, I, WILLIAM J. CLINTON, President of the United States of America, by virtue of the authority vested in me by the Constitution and laws of the United States, do hereby proclaim September 22 through September 28, 1996, as Minority Enterprise Development Week. I call on all citizens to commemorate this week with appropriate ceremonies and activities, joining together to recognize the contributions that minority entre- preneurs make to our Nation’s economy. 44144 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Presidential Documents

IN WITNESS WHEREOF, I have hereunto set my hand this twenty-third day of August, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.

[FR Doc. 96–22061 œ– Filed 8–26–96; 11:43 am] Billing code 3195–01–P i

Reader Aids Federal Register Vol. 61, No. 167 Tuesday, August 27, 1996

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING AUGUST

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±523±5227 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since the revision date of each title. Laws 3 CFR 929...... 41729 Public Laws Update Services (numbers, dates, etc.) 523±6641 931...... 42529 For additional information 523±5227 Proclamations: 932...... 40507 6913...... 44143 Presidential Documents 944...... 40507, 43141 Executive Orders: 947...... 43144 523±5227 Executive orders and proclamations 10163 (Amended by 948...... 43946 The United States Government Manual 523±5227 EO 13013)...... 41483 953...... 43146 Other Services 12143 (Superceded by 958...... 43415 EO 13014)...... 42963 981...... 42990 Electronic and on-line services (voice) 523±4534 13013...... 41483 982...... 42991 Privacy Act Compilation 523±3187 13014...... 42963 985...... 40959 TDD for the hearing impaired 523±5229 13015...... 43937 997...... 42993 Administrative Orders: 998...... 42993 ELECTRONIC BULLETIN BOARD Notice of August 14, 1005...... 41488 1996 ...... 42527 1007...... 41488 Free Electronic Bulletin Board service for Public Law numbers, Presidential Determinations: 1011...... 41488 Federal Register finding aids, and list of documents on public 96±41 of August 12, 1046...... 41488 inspection. 202±275±0920 1996 ...... 43137 1410...... 43943 FAX-ON-DEMAND 1467...... 42137 5 CFR 1703...... 42462 You may access our Fax-On-Demand service. You only need a fax 531 ...... 40949, 42939, 43574 1944...... 42842 machine and there is no charge for the service except for long 831...... 41714 1980...... 43147 distance telephone charges the user may incur. The list of 837...... 41714 4000...... 42371 documents on public inspection and the daily Federal Register’s 841...... 41714 Proposed Rules: table of contents are available using this service. The document 842...... 41714 210...... 42396 numbers are 7050-Public Inspection list and 7051-Table of 843...... 41714 220...... 40481, 42396 Contents list. The public inspection list will be updated 844...... 41714 225...... 42396 immediately for documents filed on an emergency basis. 847...... 41714 226...... 40481, 42396 NOTE: YOU WILL ONLY GET A LISTING OF DOCUMENTS ON 1620...... 41485 300...... 42565 FILE AND NOT THE ACTUAL DOCUMENT. Documents on 2470...... 41293 301 ...... 40354, 40361, 41990, public inspection may be viewed and copied in our office located 2471...... 41293 42824 at 800 North Capitol Street, N.W., Suite 700. The Fax-On-Demand 2472...... 41293 319...... 40362, 42565 457 ...... 41527, 41531, 43999 telephone number is: 301±713±6905 2473...... 41293 911...... 40550 2634...... 40145 929...... 43186 2635...... 40950, 42965 FEDERAL REGISTER PAGES AND DATES, AUGUST 944...... 40550 Ch. LIV...... 40500 1005...... 43474 Ch. LXVI ...... 40505 40145±40288...... 1 1007...... 43474 40289±40504...... 2 Ch. XXIV...... 43411 1011...... 43474 40505±40716...... 5 Proposed Rules: 1046...... 43474 40717±40948...... 6 591...... 41746 1124...... 43474 40949±41292...... 7 7 CFR 1530...... 40749 1710...... 41025 41293±41482...... 8 9...... 42773 41483±41728...... 9 1714...... 41025 19...... 42371 1717...... 41025 41729±41948...... 12 26...... 40145 1786...... 41025 41949±42136...... 13 51...... 40289 42137±42370...... 14 52...... 43939 8 CFR 42371±42528...... 15 400...... 40952, 42970 217...... 41684 42529±42772...... 16 402...... 42979 245...... 43028 42773±42964...... 19 457...... 41297 301...... 43948 42965±43136...... 20 620...... 42137 Proposed Rules: 43137±43300...... 21 663...... 41949 3...... 40552, 41684 704...... 43943 43301±43410...... 22 103...... 40552, 41684 800...... 43301 43411±43646...... 23 212...... 40552 906...... 43139 235...... 40552 43647±43936...... 26 911...... 43141 236...... 40552 43937±44144...... 27 915...... 40290 242...... 40552 920...... 40506 287...... 40552 922...... 40954, 42988 292...... 40552 923...... 40954 292a...... 40552 924...... 40954, 40956 927...... 42529 9 CFR 928...... 40146 78...... 41730 ii Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Reader Aids

92...... 43417 934...... 41535 275...... 43400 221...... 42786 94...... 40292, 43305 935...... 40364 280...... 42952 304...... 43149, 43150 941...... 42570 18 CFR 291...... 43966 308...... 43149, 43150 1270...... 42824 3c ...... 43411 700...... 42949 310...... 43149, 43150 284...... 40962 982...... 42129 317...... 42143 13 CFR 381...... 40722 3500...... 41944 320...... 43149, 43150 107...... 41496 Proposed Rules: Proposed Rules: 327...... 43149, 43150 121...... 42376, 43119 35...... 41759 10...... 42722 381...... 43149, 43150 284...... 41406 Ch. IX...... 42939 416...... 43149, 43150 14 CFR 417...... 43149, 43150 17...... 42396, 42397 19 CFR 25 CFR Proposed Rules: 25...... 41949,42144 10...... 41737 Proposed Rules: 92...... 43188 27...... 43952 12...... 41737, 43960 214...... 41365 101...... 43483 29 ...... 43647, 43648, 43952 101...... 43429 215...... 44019 102...... 43316 39 ...... 40313, 40511, 41733, 102...... 41737 104...... 43316 41951, 41953, 41955, 41957, 134...... 41737 26 CFR 130...... 43188 42549, 42773, 42776, 42777, 210...... 43429 1...... 40993, 42165 10 CFR 42779, 42781, 42782, 42994, 26...... 043656 42996, 43155, 43307, 43650, 20 CFR 31...... 40993 2...... 43406 43652 348...... 42377 301...... 42178 50...... 41303 71 ...... 40147, 40315, 40316, 404...... 41329 602...... 40993 51...... 43406 40717, 40718, 40719, 40961, Proposed Rules: Proposed Rules: 41684, 41735, 41736, 42146, 21 CFR 1 ...... 42401, 43695, 44023, 2...... 43409 42784, 42785, 43310, 73...... 40317 44024 25...... 40555 73...... 42550 101 ...... 40320, 40963, 42742, 20...... 43197 30...... 43193 95...... 40148 43119, 43433 25...... 43197 40...... 43193 97 ...... 40150, 40151, 42551, 105...... 43963 31...... 42401 51...... 43409 42552, 42554 35a...... 42401 70...... 43193 136...... 40513 121...... 43916 301...... 42401 95...... 40555 137...... 40513 Proposed Rules: 430...... 41748, 44001 139...... 40513 502...... 42401 23...... 41688 434...... 40882 175...... 42378 503...... 42401 25 ...... 40710, 41688, 41924, 435...... 40882 177...... 42379 509...... 42401 42577 490...... 41032 178...... 42381, 43156 513...... 42401 33...... 41688 179...... 42381 514...... 42401 11 CFR 39 ...... 40159, 40758, 40760, 182...... 43447 516...... 42401 104...... 42371 40762, 41037, 41039, 41537, 184...... 40317, 43447 517...... 42401 110...... 40961 41539, 41751, 41753, 41755, 520...... 43654, 43963 520...... 42401 41757, 42195, 42825, 43317, 522...... 41498, 42383 521...... 42401 Proposed Rules: 43319, 43687, 43689, 43691, 109...... 41036 556...... 42383 43692, 44002, 44004, 44006 27 CFR 110...... 41036 558...... 43450, 43654 71 ...... 40365, 43320, 43694, 584...... 43451 252...... 41500 12 CFR 44008, 44119 601...... 40153 290...... 41500 26...... 40293 91...... 41040, 43196 620...... 40153 Proposed Rules: 30...... 43948 93...... 41040, 43196 630...... 40153 4...... 40568 208...... 43948 121...... 41040, 43196 640...... 40153 5...... 40568 212...... 40293 135...... 41040, 43196 650...... 40153 7...... 40568 310...... 43418 255 ...... 42197, 42208, 43500 660...... 40153 19...... 40568 348...... 40293 Ch. 1 ...... 41750 680...... 40153 20...... 40568 1309...... 40981 22...... 40568 364...... 43948 15 CFR 563f...... 40293 1310...... 40981 24...... 40568 570...... 43948 679...... 40481 1313...... 40981 25...... 40568 701...... 41312 774...... 41326 Proposed Rules: 27...... 40568 931...... 40311 799A ...... 41326 201...... 42826 70...... 40568 932...... 43151 902...... 43420, 43952 331...... 42826 250...... 40568 933...... 42531 352...... 42398 251...... 40568 16 CFR 941...... 43151 730...... 44013 252...... 42462 Proposed Rules: 1700...... 40317 880...... 44013 290...... 42462 3...... 42565 Proposed Rules: 22 CFR 28 CFR 208...... 42565 23...... 43500 219...... 43195 1507...... 41043 50...... 43310 29...... 40723 225...... 42565 51...... 43310 42...... 42556, 43119 325...... 42565 17 CFR 126...... 41499, 41737 90...... 40727 357...... 40756 1...... 41496, 42999 212...... 43002 362...... 43486 4...... 42146 602...... 40332 29 CFR 567...... 42565 211...... 40721 4...... 40714 23 CFR 613...... 42091 230...... 42786 5...... 40714 614...... 42091 239...... 42786 667...... 43964 1691...... 42556 615...... 42901 270...... 42786 Proposed Rules: 1910...... 43454 618...... 42901 274...... 42786 655...... 40484 1915...... 43454 619...... 42901 Proposed Rules: 1926...... 41738, 43454 620...... 42901 4...... 44009 24 CFR 2510...... 41220 626...... 42901 230...... 43400 103...... 41480 4044...... 42384 703...... 41750 240...... 43400 111...... 41282 Proposed Rules: 704...... 41750 250...... 43400 115...... 41282 1...... 40366 932...... 42570 270...... 43400 203...... 42786 5...... 40366 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Reader Aids iii

102...... 40369 211...... 415070 271 ...... 41111, 42318, 40501 43023, 43468 Proposed Rules: 281...... 40592 2...... 41006, 42386 30 CFR 7...... 41058 300 ...... 40371, 42402, 42404, 15...... 41006, 42558 56...... 42787 242...... 41060 43203, 43205, 44025 20...... 40348, 43977 57...... 42787 302...... 42318 22...... 43977 203...... 40734 37 CFR 372...... 43207 24...... 41006 63...... 40531 735...... 40155 1...... 42790, 43400 41 CFR 937...... 40155 15...... 42807 64 ...... 42181, 42558, 43159 946...... 42788 15a...... 42807 50±201...... 40714 68...... 42181, 42386 950...... 40735, 43966 101...... 40997 50±206...... 40714 73 ...... 40156, 40746, 41019, 60±250...... 43466 Proposed Rules: 102...... 40997 42189, 42190, 42394, 43025, 60±741...... 43466 250...... 41541 501...... 40997 43472, 43685, 43686, 43981 60±999...... 43466 935...... 43696 76...... 43160 101±11...... 41000 936...... 40369 38 CFR 90...... 40747 101±35...... 41003 97...... 41006 19...... 43008 101±43...... 41352 31 CFR 20...... 43008 Proposed Rules: 101±46...... 41352 2...... 43721 211...... 41739 Proposed Rules: 201±23...... 40708 20...... 40374, 44026 214...... 43656 1...... 40589 201±24...... 40708 22...... 43721 306...... 43636 3...... 41368 Ch. 301 ...... 40524 24...... 43721 350...... 43636 17...... 41108 356...... 43636 42 CFR 25...... 40772 32...... 40161, 41208 357...... 43626 39 CFR 406...... 40343 64...... 40161, 41208 358...... 43636 407...... 40343 111...... 42478 73 ...... 40774, 40775, 41114, 500...... 43459 408...... 40343 233...... 42557 42228, 42229, 42230, 42412, 515...... 43459 415...... 42385 Proposed Rules: 42413, 43032, 43033, 43209, 535...... 43459 701...... 42219 416...... 40343 550...... 43459 417...... 42385 40515 90...... 43721 560...... 43459 40 CFR 473...... 42385 575...... 43459 498...... 42385 Ch. 1 ...... 43031 3...... 40500 596...... 43462 5...... 41330 48 CFR Ch. V...... 43459 43 CFR 30...... 41959 2...... 41467 Proposed Rules: 4...... 40347 51 ...... 40940, 41838, 44119 5...... 41467 344...... 40764 12...... 40525 52 ...... 40516, 41331, 41335, 7...... 41467 41338, 41342, 41838, 43668, Proposed Rules: 32 CFR 1862...... 42579 8...... 41467 43970, 43972, 43973, 43976 3600...... 40373 9...... 41467, 41472 505...... 43657 60...... 42808 3610...... 40373 12...... 41467 837...... 43466 63...... 43675 3620...... 40373 15...... 41467 Proposed Rules: 80...... 42812 3860...... 42407 16...... 41467 21...... 43867 81 ...... 40516, 41342, 43668 17...... 41467 22...... 43867 85...... 40940 44 CFR 19...... 41467 28...... 43867 122...... 41698 64...... 40525, 42179 22...... 41467 32...... 434867 180 ...... 40337, 40338, 40340 23...... 41473 33...... 43867 65 ...... 40527, 43677, 43679 261...... 40519 67...... 43682 25...... 41475 34...... 43867 263...... 43698 Proposed Rules: 31...... 41476 202...... 40764 268...... 43924 67...... 40595, 43718 32...... 41467 271 ...... 40520, 41345, 43009, 33 CFR 206...... 43208 33...... 41467 43018, 43924 34...... 41467 100 ...... 40513, 42505, 41506 272...... 41345 45 CFR 37...... 41467 110...... 40993 282...... 41507 1336...... 42817 38...... 41467 117...... 40515, 43158 300...... 40523 1610...... 41960 39...... 41467 154...... 41452, 42462 Proposed Rules: 1617...... 41963 45...... 41467 156...... 41452 51...... 43030 1632...... 41964 46...... 41467 157...... 41684 52 ...... 40591, 40592, 41371, 1633...... 41965 51...... 41467 165...... 40515, 40994 41372, 42939, 43030, 43202, 52...... 41467, 41473 334...... 43969 40501, 44024 46 CFR 53...... 41467 Proposed Rules: 59...... 40161 31...... 41684 253...... 43119 165...... 40587 60...... 40501 35...... 41684 506...... 42190 63...... 40501, 43698 70...... 40281, 43685 547...... 42190 34 CFR 64...... 41991 71...... 43685 552...... 42190, 46462 Proposed Rules: 70...... 41991, 42222 75...... 43685 719...... 42939 75...... 43640 71...... 41991 77...... 43685 722...... 42939 76...... 43640 80...... 42827 78...... 43685 752...... 42939 77...... 43640 81 ...... 41371, 41759, 41764, 108...... 40281 901...... 41702 270...... 43640 40501 133...... 40281 905...... 41702 271...... 43640 153...... 41764 153...... 42822 906...... 41702 272...... 43640 159...... 41764 168...... 40281 908...... 41702 607...... 43640 260...... 41111, 40501 199...... 40281, 43685 909...... 41684 642...... 43640 261 ...... 41111, 42318, 40501 572...... 40530 915...... 41702 648...... 43640 262...... 41111 Proposed Rules: 916...... 41702 662...... 43640 264...... 41111, 40501 10...... 41208, 43720 917...... 41702 663...... 43640 265...... 40501 15...... 41208, 43720 922...... 41702 664...... 43640 266...... 40501 540...... 43209 928...... 41702 268...... 41111 932...... 41702 36 CFR 269...... 41111 47 CFR 933...... 41702 31...... 40996 270...... 40501 1 ...... 40155, 41006, 41966, 935...... 41702 iv Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Reader Aids

936...... 41702 25...... 41214 361...... 40781 678...... 43185 942...... 41702 31...... 41214 362...... 40781 679 ...... 40158, 40353, 40748, 945...... 41702 36...... 41212 363...... 40781 41024, 41363, 41523, 41744, 952...... 41702 37...... 40284 364...... 40781 43312 971...... 41702 42...... 43294 Ch III ...... 43816 Proposed Rules: 1801...... 40533 46...... 40284, 41214 383...... 43725 1802...... 40533 52...... 40284, 41214 385...... 40781 20 ...... 42495, 42500, 42506, 1803...... 40533 53...... 43294 386...... 40781 42730, 44119 1804...... 40533 225...... 43214 391...... 40781, 43725 30...... 41115 1805...... 40533 252...... 43214 393...... 40781 100...... 41060 1806...... 40533 909...... 40775 571 ...... 40784, 41510, 41764, 216...... 40377, 43517 1825...... 42394 952...... 40775 43033, 44031 217...... 41116 1852...... 40533 970...... 40775 1002...... 42190 222...... 41116, 41541 Ch. 1...... 41466, 41477 Ch. 34 ...... 43640 50 CFR 227...... 40810, 44032 Proposed Rules: 285...... 43518 49 CFR 13...... 40481 1...... 41212 300...... 41987 4...... 41212, 41214 192...... 41019 14...... 40481 5...... 41212 195...... 43026 17...... 41020, 43178 425...... 44032 7...... 40284 390...... 42822 20...... 42492 622 ...... 42413, 42822, 43215 12...... 41214 544...... 41985 222...... 41514 648 ...... 43217, 43518, 43725 14...... 41212 571...... 41355, 41510 285 ...... 40352, 43027, 43184 660...... 41988 15...... 40284, 41214 Proposed Rules: 622...... 43952 679 ...... 40380, 43035, 43325, 16...... 40284, 41214 173...... 43515 660 ...... 40156, 40157, 43472 44033 Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Reader Aids v

REMINDERS Meat alternates; Superfund program: The items in this list were COMMENTS DUE NEXT comments due by 9-3- National oil and hazardous editorially compiled as an aid WEEK 96; published 8-15-96 substances contingency to Federal Register users. AGRICULTURE plan-- Inclusion or exclusion from AGRICULTURE DEPARTMENT National priorities list this list has no legal DEPARTMENT Rural Utilities Service update; comments due significance. by 9-3-96; published 8- Agricultural Marketing Electric loans: 2-96 Service Electric borrowers; merger Toxic chemical release Kiwifruit grown in California; and consolidation policies; RULES GOING INTO reporting; community right- comments due by 9-4-96; comments due by 9-6-96; EFFECT TODAY to-know-- published 8-5-96 published 8-7-96 Metal mining, coal mining, Marketing orders; expenses COMMERCE DEPARTMENT etc.; industry group list AGRICULTURE and assessment rates; Patents: additions; comments DEPARTMENT comments due by 9-6-96; Acquisition and protection of due by 9-4-96; Commodity Credit published 8-7-96 foreign rights in published 8-21-96 Corporation Olives grown in California and inventions, licensing of Water pollution; effluent Conservation and imported; comments due by foreign patents acquired guidelines for point source environmental programs: 9-4-96; published 8-5-96 by Government, etc. categories: Conservation Reserve AGRICULTURE Federal regulatory reform; Leather tanning and Programs (1986-1990 and DEPARTMENT comments due by 9-6- finishing; comments due 1991-2002); published 8- Animal and Plant Health 96; published 8-7-96 by 9-6-96; published 7-8- 27-96 Inspection Service COMMERCE DEPARTMENT 96 AGRICULTURE Animal welfare: National Oceanic and FEDERAL DEPARTMENT Humane treatment of dogs Atmospheric Administration COMMUNICATIONS Farm Service Agency and cats-- Fishery conservation and COMMISSION Agricultural conservation Tethering and temperature management: Common carrier services: programs: requirements; comments Bering Sea and Aleutian Satellite communications-- due by 9-3-96; Conservation reserve Islands groundfish; Licensing procedures; published 7-2-96 programs (1986-1990 and comments due by 9-5-96; comments due by 9-3- 1991-2002); published 8- Wire flooring; comments published 8-27-96 96; published 8-6-96 due by 9-3-96; 27-96 Summer flounder and scup; Telecommunications Act of published 7-2-96 ENVIRONMENTAL comments due by 9-3-96; 1996; implementation-- Plant-related quarantine, published 8-6-96 PROTECTION AGENCY Telemessaging, electronic domestic: Air quality implementation COMMERCE DEPARTMENT publishing, and alarm plans; approval and Karnal bunt disease-- Patent and Trademark Office monitering services; promulgation; various Arizona et al.; comments Patents: comments due by 9-4- due by 9-3-96; States: Acquisition and protection of 96; published 7-29-96 published 7-15-96 Alaska; published 6-28-96 foreign rights in Radio stations; table of Public forum; comments California; published 8-27-96 inventions, licensing of assignments: due by 9-3-96; Kentucky; published 6-28-96 foreign patents acquired Mississippi; comments due published 7-15-96 by Government, etc. by 9-3-96; published 8-15- HOUSING AND URBAN Seed planting and Federal regulatory reform; 96 DEVELOPMENT regulated articles comments due by 9-6- Virginia; comments due by DEPARTMENT movement; comments 96; published 8-7-96 9-3-96; published 8-23-96 HUD-owned properties: due by 9-3-96; published 8-2-96 ENERGY DEPARTMENT FEDERAL DEPOSIT Sale of HUD-held single INSURANCE CORPORATION Seed planting and Conflict of interests; comments family mortgages; due by 9-3-96; published 7- Assessments: published 8-27-96 regulated articles movement; comments 5-96 Oakar institutions; INTERIOR DEPARTMENT due by 9-3-96; ENVIRONMENTAL interpretive rules; Surface Mining Reclamation published 8-19-96 PROTECTION AGENCY comments due by 9-3-96; and Enforcement Office Plant-related quarantine, Air quality implementation published 7-3-96 Permanent program and foreign: plans; approval and Contractors suspension and abandoned mine land Camellia, gardenia, promulgation; various exclusion and contracts reclamation plan rhododendron, rose, and States: termination; comments due submissions: lilac; imported cut flowers; Michigan; comments due by by 9-3-96; published 7-5-96 Wyoming; published 8-27-96 comments due by 9-3-96; 9-4-96; published 8-5-96 FEDERAL ELECTION TRANSPORTATION published 8-2-96 Missouri; comments due by COMMISSION DEPARTMENT Fruits and vegetables; 9-4-96; published 8-5-96 Rulemaking petitions: Federal Aviation importation; comments Air quality implementation Democratic Senatorial Administration due by 9-3-96; published plans; approval and Campaign Committee et 8-16-96 Airworthiness directives: promulgation; various al.; comments due by 9-6- AGRICULTURE States; air quality planning 96; published 8-7-96 Boeing; published 8-12-96 DEPARTMENT purposes; designation of FEDERAL HOUSING TREASURY DEPARTMENT Food and Consumer Service areas: FINANCE BOARD Customs Service Child nutrition programs: Michigan; comments due by Federal home loan bank Merchandise, special classes: National school lunch, 9-4-96; published 8-5-96 system: New nonroad spark-ignition school breakfast, child Hazardous waste program Advances; terms and engines at or below 19 and adult care food, and authorizations: conditions; comments due kilowatts; published 8-27- summer food service Illinois; comments due by 9- by 9-3-96; published 8-2- 96 programs-- 4-96; published 8-5-96 96 vi Federal Register / Vol. 61, No. 167 / Tuesday, August 27, 1996 / Reader Aids

FEDERAL RESERVE due by 9-3-96; published Visa waiver pilot program-- Amersham Corp.; comments SYSTEM 7-3-96 Argentina; comments due due by 9-3-96; published Electronic fund transfers INTERIOR DEPARTMENT by 9-6-96; published 7- 6-18-96 (Regulation E): Indian Affairs Bureau 8-96 University of Cincinnati; Home banking services Education: Nationality: comments due by 9-4-96; disclosure; new accounts Special education; Federal Citizenship acquisition; equal published 6-21-96 error resolution, and regulatory review; treatment of women in POSTAL SERVICE store-value cards, etc.; comments due by 9-3-96; conferring citizenship on comments due by 9-6-96; published 7-2-96 children born abroad; Domestic Mail Manual: published 7-17-96 Land and water: comments due by 9-3-96; Mail classification reform; GENERAL SERVICES Irrigation projects and published 7-5-96 implementation standards; ADMINISTRATION systems; comments due LABOR DEPARTMENT comments due by 9-5-96; published 8-15-96 Federal Information Resources by 9-3-96; published 7-5- Wage rates predetermination Management Regulation: 96 procedures; and construction TRANSPORTATION Federal information Patents in fee, certificates of and nonconstruction DEPARTMENT competency, restrictions processing multiple award contracts; labor standards Coast Guard schedule contracts; removal, and Indian lands provisions: Pollution: provisions removed; sale; issuance; comments Davis-Bacon helper comments due by 9-6-96; due by 9-3-96; published regulations suspension Tank vessel and facility published 7-8-96 7-2-96 continuation; comments response plans; HEALTH AND HUMAN Law and order: due by 9-3-96; published hazardous substances SERVICES DEPARTMENT Indian country law 8-2-96 response equipment; comments due by 9-3-96; Food and Drug enforcement; comments LABOR DEPARTMENT due by 9-3-96; published published 5-3-96 Administration Wage and Hour Division 7-5-96 Administrative practice and Wage rates predetermination TRANSPORTATION INTERIOR DEPARTMENT procedure: procedures; and construction DEPARTMENT Land Management Bureau Miscellaneous amendments; and nonconstruction Federal Aviation Federal regulatory review; Minerals management: contracts; labor standards Administration Mineral materials disposal; provisions: comments due by 9-3-96; Airworthiness directives: published 6-4-96 bonding and certificates of Davis-Bacon helper Aerospace Technologies of Animal drugs, feeds, and deposit requirements; regulations suspension Australia Pty Ltd.; related products: comments due by 9-3-96; continuation; comments published 8-2-96 due by 9-3-96; published comments due by 9-6-96; Carcinogenicity testing of published 7-8-96 compounds used in food- INTERIOR DEPARTMENT 8-2-96 producing animals; Fish and Wildlife Service NATIONAL CREDIT UNION Boeing; comments due by comments due by 9-3-96; Migratory bird hunting: ADMINISTRATION 9-3-96; published 7-5-96 published 6-20-96 Annual hunting regulations; Credit unions: Fokker; comments due by HEALTH AND HUMAN and late season migratory Corporate credit unions; 9-3-96; published 7-24-96 SERVICES DEPARTMENT bird hunting; comments capital strenghening risk Raytheon; comments due by due by 9-3-96; published Health Care Financing management and control; 9-6-96; published 7-8-96 8-15-96 Administration comments due by 9-3-96; Airworthiness standards: Medicare: INTERIOR DEPARTMENT published 7-23-96 National Park Service Special conditions-- Physician fee schedule Corporate credit unions; (1997 CY); payment Special regulations: capital strengthening risk de Havilland DHC-8-400 policies; revisions; Voyageurs National Park, management and control; airplane; comments due comments due by 9-3-96; MN; aircraft operations; comments due by 9-3-96; by 9-5-96; published 7- published 7-2-96 designation of areas; published 6-4-96 22-96 comments due by 9-5-96; HOUSING AND URBAN NATIONAL LABOR Class E airspace; comments published 5-8-96 DEVELOPMENT RELATIONS BOARD due by 9-3-96; published 7- DEPARTMENT INTERIOR DEPARTMENT Summary judgment motions 17-96 Lead-based paint hazards in Surface Mining Reclamation and advisory opinions; TREASURY DEPARTMENT and Enforcement Office Federal regulatory review; federally owned residential Internal Revenue Service property and housing Permanent program and comments due by 9-5-96; receiving Federal abandoned mine land published 8-2-96 Income taxes: assistance; notification, reclamation plan NUCLEAR REGULATORY Qualified small business evaluation, and reduction; submissions: COMMISSION stock; 50 percent comments due by 9-5-96; Oklahoma; comments due Agreement State licenses; exclusion for gain; published 6-7-96 by 9-3-96; published 8-2- recognition of areas under comments due by 9-4-96; Mortgage and loan insurance 96 exclusive Federal jurisdiction published 6-6-96 program: JUSTICE DEPARTMENT wihin agreement State; Section 467 rental Single family mortgage Immigration and comments due by 9-3-96; agreements; comments insurance; loss mitigation Naturalization Service published 6-18-96 due by 9-3-96; published procedures; comments Immigration: Rulemaking petitions: 6-3-96