Contents Federal Register Vol

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Contents Federal Register Vol. 68, No. 24

Wednesday, February 5, 2003

Agriculture Department PROPOSED RULES See Animal and Plant Health Inspection Service Drawbridge operations: See Food Safety and Inspection Service New Jersey, 5858–5860 See Forest Service See Rural Housing Service Commerce Department See International Trade Administration Air Force Department NOTICES NOTICES Agency information collection activities: Meetings: Submission for OMB review; comment request, 5866– Global Positioning System Joint Program Office, 5869 5867

Alcohol, Tobacco, Firearms, and Explosives Bureau Comptroller of the Currency NOTICES NOTICES Agency information collection activities: Reports and guidance documents; availability, etc.: Proposed collection; comment request, 5923–5924 Accounting standards differences among Federal banking and thrift agencies; report to Congressional Animal and Plant Health Inspection Service Committees, 5976–5979 RULES Commodity laboratory testing programs: Defense Department Poultry and egg products— See Air Force Department Used farm equipment importation from foot-and-mouth See Army Department disease affected regions, 5802–5805 See Navy Department Hawaiian and territorial quarantine notices: Fruits and vegetables from Hawaii, 5796–5800 Education Department Gardenia blooms from Hawaii; interstate movement, NOTICES 5800–5802 Grants and cooperative agreements; availability, etc.: Plant related quarantine; domestic: Teacher Quality Research Program; correction, 5870 Fire ant, imported, 5794–5796 Karnal bunt, 5793 Employment and Training Administration NOTICES Army Department NAFTA transitional adjustment assistance: PROPOSED RULES Bristol Bay Native Association, 5928–5936 Meetings: Environmental Quality Council; Comprehensive Environmental Protection Agency Everglades Restoration Plan, 5860 RULES Pesticides; tolerances in food, animal feeds, and raw Arts and Humanities, National Foundation agricultural commodities: See National Foundation on the Arts and the Humanities 6-Benzyladenine, 5835–5839 Cyprodinil, 5839–5847 Centers for Disease Control and Prevention Thiophanate Methyl, 5847–5852 NOTICES NOTICES Agency information collection activities: Integrated risk information system: Proposed collection; comment request, 5886–5887 Health effects of chronic exposure to chemical Meetings: substances; information request and workshop, 5870– Children and Terrorism Advisory Committee, 5887 5873 Cruise ship industry; vessel sanitation, 5888 Meetings: Public Health Service Activities and Research at DOE Asbestos Cancer Risk Assessment; peer consultation Sites Citizens Advisory Committee, 5888 workshop, 5873–5874 Radiation and Worker Health Advisory Board, 5888–5889 Pesticide, food, and feed additive petitions: Imidacloprid, 5880–5885 Centers for Medicare & Medicaid Services Pesticide programs: NOTICES Organophosphates; risk assessments; availability, etc.— Agency information collection activities: Dicrotophos, 5874–5875 Submission for OMB review; comment request, 5889– Pesticide registration, cancellation, etc.: 5890 Bayer CropScience LP et al., 5875–5876 Syngenta Crop Protection, Inc. et al., 5876–5880 Coast Guard Superfund; response and remedial actions, proposed RULES settlements, etc.: Drawbridge operations: Jack Goins Waste Oil Site, TN, 5885 New Jersey, 5832–5833 Ports and waterways safety: Executive Office of the President Hampton Roads, VA; security zone, 5833–5835 See Presidential Documents

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See Trade Representative, Office of United States NOTICES Reports and guidance documents; availability, etc.: Federal Aviation Administration Medical devices; class II special controls antimicrobial RULES susceptibility test systems, 5890–5891 Airworthiness directives: Airbus, 5812–5815 Food Safety and Inspection Service Boeing, 5805–5808, 5819–5822 NOTICES Bombardier, 5808–5810 Agency information collection activities: Dornier, 5810–5812 Proposed collection; comment request, 5865–5866 Piaggio Aero Industries S.p.A., 5815–5817 Pratt & Whitney Canada, 5818–5819 Forest Service Raytheon, 5822–5825 NOTICES PROPOSED RULES Environmental statements; notice of intent: Airworthiness directives: Helena National Forest, MT, 5866 Turbomeca, 5856–5857 Medicine Bow-Routt National Forests et al., CO; correction, 5866 Federal Communications Commission RULES General Services Administration Radio stations; table of assignments: NOTICES Arizona, 5854 Electronically generated forms; color paper specificity Texas, 5854–5855 waiver, 5886 PROPOSED RULES Radio stations; table of assignments: Ohio, 5861–5862 Health and Human Services Department South Carolina, 5862 See Centers for Disease Control and Prevention Various States, 5860–5861 See Centers for Medicare & Medicaid Services See Food and Drug Administration Federal Deposit Insurance Corporation See Health Resources and Services Administration See National Institutes of Health NOTICES Reports and guidance documents; availability, etc.: Accounting standards differences among Federal banking Health Resources and Services Administration and thrift agencies; report to Congressional NOTICES Committees, 5976–5979 Meetings: Rural Health and Human Service National Advisory Federal Emergency Management Agency Committee, 5891–5892 RULES Reports and guidance documents; availability, etc.: Flood elevation determinations: National Vaccine Injury Compensation Program; list of Various States, 5852–5854 petitions, 5892–5900

Federal Highway Administration Housing and Urban Development Department NOTICES NOTICES Environmental statements; notice of intent: Organization, functions, and authority delegations: Peoria County et al., IL., 5971 Assistant Secretary for Housing; order of succession, 5909–5910 Federal Maritime Commission Deputy Assistant Secretary for Public Housing NOTICES Investments; redelegation, 5910–5911 Agreements filed, etc., 5885 Immigration and Naturalization Service Federal Reserve System NOTICES NOTICES Agency information collection activities: Reports and guidance documents; availability, etc.: Submission for OMB review; comment request, 5924– Accounting standards differences among Federal banking 5926 and thrift agencies; report to Congressional Committees, 5976–5979 Indian Affairs Bureau NOTICES Fish and Wildlife Service Tribal-State Compacts approval; Class III (casino) gambling: NOTICES Cocopah Indian Tribe et al., AZ, 5912 Environmental statements; availability, etc.: Lee County, VA; coal slurry spill natural resource damage Interior Department assessment, 5911–5912 See Fish and Wildlife Service See Indian Affairs Bureau Food and Drug Administration See Land Management Bureau RULES See Minerals Management Service Medical devices: See National Park Service Fully automated short-term incubation cycle NOTICES antimicrobial suseptibility devices; reclassification Reports and guidance documents; availability, etc.: and codification class III to class II, 5825–5827 Alternative Fueled Vehicle data (FY 1996-2001), 5911

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International Trade Administration National Center on Minority Health and Health NOTICES Disparities, 5901–5902 Antidumping: National Institute of Allergy and Infectious Diseases, Brake rotors from— 5903–5904 China, 5867 National Institute of Environmental Health Sciences, Honey from— 5902, 5904 China, 5868–5869 National Institute of Mental Health, 5902–5903 Stainless steel plate in coils from— National Institute on Aging, 5904–5905 Taiwan, 5869 National Institute on Alcohol Abuse and Alcoholism, 5903–5904 International Trade Commission National Institute on Deafness and Other Communication NOTICES Disorders, 5904 Import investigations: Recombinant DNA Advisory Committee, 5905–5906 Steel wire garment hangers from— Scientific Review Center, 5906–5908 China, 5923 Patent licenses; non-exclusive, exclusive, or partially exclusive: Justice Department Celltech R&D Ltd., 5908–5909 See Alcohol, Tobacco, Firearms, and Explosives Bureau Celsion Corp., 5909 See Immigration and Naturalization Service National Park Service Labor Department NOTICES See Employment and Training Administration Environmental statements; availability, etc.: NOTICES Cuyahoga Valley National Park, OH; rural landscape Agency information collection activities: management plan, 5919 Submission for OMB review; comment request, 5926– Environmental statements; notice of intent: 5928 San Juan Island National Historical Park, WA; general management plan, 5919–5920 Land Management Bureau Meetings: NOTICES Aniakchak National Monument Subsistence Recource Agency information collection activities: Commission, 5920–5921 Proposed collection; comment request, 5912–5916 Denali National Park and Preserve Subsistence Resource Organization, functions, and authority delegations: Commission, 5921 Riverside, CA, office relocation, 5916 Lake Clark National Park and Preserve Subsistence Resource Commission, 5921–5922 Minerals Management Service National Landmarks Committee, 5922 NOTICES Wrangell-St. Elias National Park Susbsistence Recource Agency information collection activities: Commission, 5922–5923 Submission for OMB review; comment request, 5916– 5919 National Science Foundation NOTICES National Council on Disability Agency information collection activities: NOTICES Proposed collection; comment request, 5937–5938 Meetings: Navy Department Youth Advisory Committee, 5936–5937 RULES National Foundation on the Arts and the Humanities Navigation, COLREGS compliance exemptions: NOTICES USS BULKELEY, 5830–5831 Meetings: USS HOWARD, 5827–5828 Humanities National Council, 5937 USS MASON, 5831–5832 USS MUSTIN, 5829–5830 National Highway Traffic Safety Administration USS PREBLE, 5828–5829 PROPOSED RULES Nuclear Regulatory Commission Motor vehicle safety standards: NOTICES Lamps, reflective devices, and associated equipment— Applications, hearings, determinations, etc.: Center high-mounted stop lamps; rulemaking petition Tennessee Valley Authority, 5938 denied, 5863–5864 NOTICES Office of United States Trade Representative Insurance cost information, 5971–5972 See Trade Representative, Office of United States Motor vehicle safety standards; exemption petitions, etc.: Cooper Tire & Rubber Co., 5972 Peace Corps PROPOSED RULES National Institutes of Health Standards of conduct, 5857–5858 NOTICES Inventions, Government-owned; availability for licensing, Personnel Management Office 5900–5901 NOTICES Meetings: Agency information collection activities: Fogarty International Center Advisory Board, 5901 Submission for OMB review; comment request, 5938– National Cancer Institute, 5901 5939

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Presidential Documents Foreign terrorists and terrorist organizations; designation: PROCLAMATIONS Lashkar i Jhangvi, 5952 Special observances: American Heart Month (Proc. 7644), 6053–6056 Thrift Supervision Office National African American History Month (Proc. 7645), NOTICES 6057–6058 Reports and guidance documents; availability, etc.: Honoring the Memory of the Astronauts Aboard Space Accounting standards differences among Federal banking Shuttle Columbia (Proc. 7646), 6059 and thrift agencies; report to Congressional ADMINISTRATIVE ORDERS Committees, 5976–5979 Migration and Refugee Assistance Act of 1962; availability of funds (Presidential Determination 2003-13 of January 29, 2003), 5785 Trade Representative, Office of United States Narcotics and drugs; determination identifying major drug NOTICES transit or major illicit drug producing countries Generalized System of Preferences: (Presidential Determination 2003-14 of Competitive need limitations; import statistics; comment January 30, 2003), 5787–5791 request, 5952–5970 World Trade Organization: Public Health Service Venezuela; consultations; import licensing measures on See Centers for Disease Control and Prevention certain agricultural products, 5970–5971 See Food and Drug Administration See Health Resources and Services Administration Transportation Department See National Institutes of Health See Coast Guard Research and Special Programs Administration See Federal Aviation Administration See Federal Highway Administration NOTICES See National Highway Traffic Safety Administration Agency information collection activities: See Research and Special Programs Administration Proposed collection; comment request, 5972–5974 See Transportation Security Administration Rural Housing Service NOTICES Transportation Security Administration Grants and cooperative agreements; availability, etc.: NOTICES Section 514 Farm Labor Housing Loans and Section 516 Aviation security: Farm Labor Housing Grants for Off-Farm Housing; Aircraft weighing 12,500 pounds or more; security correction, 5866 programs, 5974–5975 Private charter operations; security program, 5975 Securities and Exchange Commission Grants and cooperative agreements; availability, etc.: RULES Intercity Bus Security Grant Program, 5975 Securities: Auditor independence; Commission requirements, 6005– Treasury Department 6051 Off-balance sheet arrangements and aggregate contractural See Comptroller of the Currency obligations, 5981–6004 See Thrift Supervision Office NOTICES NOTICES Agency information collection activities: Meetings: Submission for OMB review; comment request, 5939– United States Postal Service, President’s Commission, 5940 5976 Meetings; Sunshine Act, 5941 Self-regulatory organizations; proposed rule changes: Veterans Affairs Department American Stock Exchange LLC, 5941–5942 NOTICES Chicago Board Options Exchange, Inc., 5942–5947 Inventions, Government-owned; availability for licensing, International Securities Exchange, LLC, 5947 5979 New York Stock Exchange, Inc., 5948–5951 Meetings: Capital Asset Realignment for Enhanced Services Small Business Administration (CARES) Commission, 5979–5980 NOTICES Meetings: Georgia District Advisory Council, 5951 Separate Parts In This Issue Social Security Administration NOTICES Part II Organization, functions, and authority delegations: Securities and Exchange Commission, 5981–6004 Labor Management and Employee Relations Office; correction, 5951 Part III State Department Securities and Exchange Commission, 6005–6051 NOTICES Committees; establishment, renewal, termination, etc.: Part IV Inter-American Tropical Tuna Commission, U.S. Section, Executive Office of the President, Presidential Documents, 5951–5952 6053–6059

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Federal Register Presidential Documents Vol. 68, No. 24

Wednesday, February 5, 2003

Title 3— Presidential Determination No. 2003–13 of January 29, 2003

The President Presidential Determination Pursuant to Section 2(c)(1) of the Migration and Refugee Assistance Act of 1962, as Amended

Memorandum for the Secretary of State

Pursuant to section (2)(c)(1) of the Migration and Refugee Assistance Act of 1962, as amended, 22 U.S.C. 2601(c)(1), I hereby determine that it is important to the national interest that up to $15 million be made available from the U.S. Emergency Refugee and Migration Assistance Fund to meet unexpected urgent refugee and migration needs that would be anticipated in the event of a future humanitarian emergency in the Middle East, to include contingency planning for such needs. Such an emergency may arise if it becomes necessary for the United States and other nations to use military force to disarm the Iraqi regime of its weapons of mass destruction. These funds may be used, as appropriate, to provide contributions to international, governmental, and nongovernmental organizations, as well as for administrative expenses to manage contingency planning by the Department of State’s Bureau of Population, Refugees, and Migration. You are authorized and directed to inform the appropriate committees of the Congress of this determination and the obligation of funds under this authority, and to arrange for the publication of this memorandum in the Federal Register. W THE WHITE HOUSE, Washington, January 29, 2003.

[FR Doc. 03–2959 Filed 2–4–03; 8:45 am] Billing code 4710–10–P

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Presidential Determination No. 2003–14 of January 30, 2003 Presidential Determination on Major Drug Transit or Major Illicit Drug Producing Countries for 2003

Memorandum for the Secretary of State

Pursuant to section 706(1) of the Foreign Relations Authorization Act, Fiscal Year 2003 (Public Law 107–228) (FRAA), which was enacted on September 30, 2002, I hereby identify the following countries as major drug transit or major illicit drug producing countries: Afghanistan, The Bahamas, Bolivia, Brazil, Burma, China, Colombia, Dominican Republic, Ecuador, Guatemala, Haiti, India, Jamaica, Laos, Mexico, Nigeria, Pakistan, Panama, Paraguay, Peru, Thailand, Venezuela, and Vietnam. The Majors List applies by its terms to countries. The United States Govern- ment interprets the term broadly to include entities that exercise autonomy over actions or omissions that could lead to a decision to place them on the list and, subsequently, to determine their eligibility for certification. A country’s presence on the Majors List is not necessarily an adverse reflec- tion of its government’s counternarcotics efforts or level of cooperation with the United States. Consistent with the statutory definition of a major drug transit or drug producing country set forth in section 481(e)(5) of the Foreign Assistance Act of 1961, as amended (FAA), one of the reasons that major drug transit or drug producing countries are placed on the list is the combination of geographical, commercial, and economic factors that allow drugs to transit or be produced despite the concerned government’s most assiduous enforcement measures. Pursuant to section 706(2)(A) of the FRAA, I hereby designate Burma, Guate- mala, and Haiti as countries that have failed demonstrably during the previous 12 months to adhere to their obligations under international counternarcotics agreements and take the measures set forth in section 489(a)(1) of the FAA. Attached to this memorandum are justifications for each of the countries so designated, as required by section 706(2)(B). I have also determined, in accordance with provisions of section 706(3)(A) of the FRAA, that provision of United States assistance to Guatemala and Haiti in FY 2003 is vital to the national interests of the United States. Additionally, the alarming increase in the quantity of illegal synthetic drugs entering the United States, especially ecstasy from Europe, is of particular concern. A significant amount of the ecstasy consumed in the United States is manufactured clandestinely in The Netherlands (in 2001, a total of 9.5 million ecstasy tablets were seized in the United States, and the Drug Enforce- ment Administration believes that the majority of tablets originated in The Netherlands). We are working closely with Dutch authorities to stop the production and export of ecstasy, which we both regard as a serious threat to our citizens. We expect Dutch authorities to move effectively and measur- ably in the coming year against the production and export of this drug, including dismantling labs and proceeding against trafficking organizations. Early in the year, we plan to discuss specific steps we can take together to reduce drug trafficking. Although the United States enjoys an excellent level of bilateral cooperation with Canada, the United States Government is concerned that Canada is a primary source of pseudoephedrine and an increasing source of high potency marijuana, which are exported to the United States. Over the past

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few years there has been an alarming increase in the amount of pseudoephedrine diverted from Canadian sources to clandestine drug laboratories in the United States, where it is used to make methamphetamine. The Government of Canada, for the most part, has not regulated the sale and distribution of precursor chemicals. The regulations to restrict the availability of pseudoephedrine, which the Government of Canada has just promulgated, should be stronger. Notwithstanding Canada’s inadequate control of illicit diversion of precursor chemicals, I commend Canadian law enforcement agencies, which continue to work energetically to support our joint law enforcement efforts. Under section 706 of the FRAA, you are hereby authorized and directed to submit this memorandum to the Congress, and to publish it in the Federal Register. W THE WHITE HOUSE, Washington, January 30, 2003.

Billing code 4710–10–M

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Statement of Explanation Burma

The United States has determined that Burma failed demonstrably to make sufficient efforts during the last 12 months to meet its obligations under international counternarcotics agreements and the counternarcotics requirements set forth in section 489(a)(1) of the Foreign Assistance Act of 1961, as amended. Burma remains the world’s number one producer and trafficker of methamphetamine and the world’s second largest producer and trafficker of heroin. Judging from the situation in neighboring countries, production and trafficking of methamphetamine from Burma continues to be one of the most serious problems facing Southeast Asia. Drug gangs operate freely within Burma along its borders with China and Thailand, producing several hundred million methamphetamine tablets annually by using precursors imported from neighboring states. Although Burma banned the import, sale, and use of 25 precursor chemicals and related substances used in the production of methamphetamine in 2002, Burma has yet to take effective measures against methamphetamine production and trafficking or the importation of precursor chemicals from neighboring states used in the production of methamphetamine. Hundreds of millions of methamphetamine tablets flooded the region, and seizures of methamphetamine went down significantly in 2002 (about 9 million tablets compared to 32 million in 2001), representing only a tiny fraction of the estimated production. In addition, the government destroyed a smaller number of methamphetamine and heroin labs in 2002 compared to the previous year. Burma has also yet to curb involvement in illicit narcotics by the largest, most powerful, and most important trafficking organization within its borders, the United Wa State Army (UWSA). Although the government claims it has increased pressure on the UWSA to end opium production, major UWSA traffickers continue to operate with apparent impunity and UWSA involvement in methamphetamine production and trafficking remains a serious concern. While the United States gives Burma a failing grade due to the magnitude of the above issues, we do note some progress on several counternarcotics fronts. Although Burma remains the world’s second largest producer of illicit opium, opium production in Burma declined 26 percent in the past year, seizures of heroin and opium increased, and the government has initiated several cases against accused money-launders under new anti-money laundering laws. The Government of Burma (GOB) also continued to cooperate with regional and international counternarcotics agencies and organizations, resulting in several cases against traffickers and their organizations in cooperation with the United States, Australia, Thailand, China, and others. Increased cooperation with China, in particular, resulted in the rendering of several narcotraffickers to China in 2002. We urge the GOB to redouble efforts in those areas where it is making progress and to address those major gaps where it has made no serious efforts to date.

Guatemala

Despite improvements towards the end of the year, Guatemala failed demonstrably during the last 12 months to make substantial efforts to adhere to its obligations under international counternarcotics agreements and to take the counternarcotics measures set forth in section 489(a)(1) of the Foreign Assistance Act of 1961, as amended. Guatemala remains a major transshipment point for drugs, primarily cocaine, moving from South America

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to the United States. However, the vital national interests of the United States require the United States to continue providing assistance to Guatemala under the Foreign Operations, Export Financing, and Related Programs Act, 2002 (P.L. 107–115). During 2002, Guatemala’s overall counterdrug commitment deteriorated. The Government of Guatemala’s (GOG) counternarcotics efforts traditionally have been limited by a lack of resources for police, prosecutors, and judges. However, in 2002, a heightened level of corruption also impeded significant progress in the battle against narcotrafficking. Seizures of illegal narcotics and narcotics-related prosecutions in Guatemala were dramatically lower than in years past, despite evidence that the flow of illegal drugs had not diminished. Efforts to pass and implement anti-corruption and transparency legislation floundered. Few high-level figures were formally inves- tigated or indicted, and the Anti-Narcotics Police was disbanded after several attempts at reform and the firing or reassignment of 75% of all personnel. The majority of Anti-Narcotics Prosecutors were also removed or transferred in the last year due to poor performance. During 2002, police stole an amount of drugs estimated at double the amount officially seized, and were identified as responsible for drug-related extra-judicial executions of both narcotraffickers and civilians. Toward the end of 2002, at the request of the United States the GOG took some positive counternarcotics steps. The GOG promulgated regulations to implement the modern money laundering legislation passed in 2001 (though there have been no convictions to date). A number of police officers were arrested and others removed from office in connection with a gun battle over a drug shipment in the town of Chocon. The GOG recently began regularly destroying newly confiscated drugs not needed for evidence, and, in December, destroyed a modest amount of drugs stored from older cases. Despite Guatemala’s demonstrable failure on counternarcotics efforts, U.S. vital national interests require that U.S. assistance to Guatemala continue. Social and political problems underlying the country’s 36-year civil conflict remain, and many Peace Accord commitments have not been met. There is a need for continued assistance to programs that diversify the rural economy, increase access to education and medical services, strengthen judicial and human rights institutions, foster the development of civil society, and address environmental concerns. These programs create an environment conducive to building democracy and reducing illegal migration. They also address social injustice, poverty, and distrust of civil authority in Guatemala, which are contributing factors behind Guatemalan involvement in the drug trade. The upcoming Central American Free Trade Agreement negotiations will also require significant U.S. involvement and assistance in projects linked to further economic liberalization. Additionally, suspension of assistance to Guatemala would result in the further deterioration of Guatemalan institutions essential to combating the ever-growing influence of organized crime in Guatemala.

Haiti

Haiti failed demonstrably during the last 12 months to make substantial efforts to adhere to its obligations under international counternarcotics agreements and take the counternarcotics measures set forth in section 489(a)(1) of the Foreign Assistance Act of 1961, as amended. Haiti remains a significant transshipment point for drugs, primarily cocaine, moving through the Carib- bean from South America to the United States. However, the vital national interests of the United States require the United States to continue to provide assistance to Haiti under the Foreign Operations, Export, Financing, and Related Programs Act, 2002 (P.L. 107–115) Haiti’s overall counterdrug commitment has remained weak, in part due to political instability and low levels of assistance. Such instability, coupled with economic degradation, has led to an increase in criminal and political violence and compromised

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internal security. Corruption is rife; including reported police involvement in kidnapping-for-ransom, car theft, and coercion of junior police officers either to assist in or to ignore drug trafficking activities. President Aristide has attempted to shore up his personal and political security by politicizing the Haitian National Police (HNP). This, in contravention to one of President Aristide’s commitments to the United States Government, bodes ill for an effective counternarcotics effort. With two exceptions (putting into force a 1997 U.S.-Haiti bilateral maritime counternarcotics interdiction agreement and establishing a Financial Intel- ligence Unit), the Government of Haiti (GOH) has taken no action on its own initiative in the past year either to cooperate with the United States to interdict the flow of drugs destined for the United States or to honor its commitments as a party to the 1988 U.N. Drug Convention. Other than signing a bilateral counternarcotics Letter of Agreement, permitting the polygraph examination of 40 HNP anti-drug unit officers, and removing those with questionable results, Haiti failed to take significant counterdrug actions requested by the United States Government. In summary, the GOH did not: 1) Deposit an instrument of ratification of the OAS Inter-American Conven- tion Against Corruption; 2) introduce anti-corruption legislation; 3) prosecute drug-related public (including police) corruption; 4) implement fully the anti-money laundering law passed in January 2001; 5) enforce existing anti-money laundering guidelines issued by the Central Bank; 6) require cross-border currency declarations and provide penalties for noncompliance; 7) increase the number of arrests of major traffickers; 8) establish a permanent BLTS (French acronym for the HNP anti-drug unit) office outside Port-au-Prince; or 9) provide training to judges, prosecutors, and law enforcement officials. Despite Haiti’s demonstrable failure on counternarcotics issues, U.S. vital national interests require that U.S. assistance to Haiti continue. Haiti is the hemisphere’s poorest country. There is a continued need for assistance to programs that increase access to education, combat environmental degradation, fight the spread of HIV/AIDS, and foster the creation of legitimate business and employment opportunities. These programs can create an atmos- phere conducive to building democracy and reducing illegal migration. They will also address root causes of poverty and hopelessness in Haiti, contributing factors behind Haitian involvement in the international drug trade. Suspension of assistance to Haiti would result in the further deterioration of Haitian institutions. Additionally, suspension would hamper U.S. efforts to ensure implementation of OAS Resolution 822, which commits Haiti to hold legislative elections in 2003.

[FR Doc. 03–2960 Filed 2–4–03; 8:45 am] Billing code 4710–10–M

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Rules and Regulations Federal Register Vol. 68, No. 24

Wednesday, February 5, 2003

This section of the FEDERAL REGISTER indica (Mitra) Mundkur and is spread areas. The seed testing provisions of contains regulatory documents having general by spores, primarily through the § 301.89–4 are limited to seed that applicability and legal effect, most of which movement of infected seed. In the originates within a regulated area; those are keyed to and codified in the Code of absence of measures taken by the U.S. provisions do not place any limitations Federal Regulations, which is published under Department of Agriculture (USDA) to 50 titles pursuant to 44 U.S.C. 1510. or reporting requirements on the prevent its spread, the establishment of voluntary testing of seed by growers or The Code of Federal Regulations is sold by Karnal bunt in the United States could seed companies located outside the the Superintendent of Documents. Prices of have significant consequences with regulated areas. It is not, therefore, new books are listed in the first FEDERAL regard to the export of wheat to necessary to amend the regulations to REGISTER issue of each week. international markets. provide for the voluntary seed testing The domestic quarantine and discussed by the commenter. regulations regarding Karnal bunt are set DEPARTMENT OF AGRICULTURE forth in ‘‘Subpart—Karnal Bunt’’ (7 CFR Therefore, for the reasons given in the 301.89–1 through 301.89–16, referred to interim rule and in this document, we Animal and Plant Health Inspection below as the regulations). Among other are adopting the interim rule as a final Service things, the regulations define areas rule without change. regulated for Karnal bunt and restrict 7 CFR Part 301 This action also affirms the the movement of regulated articles, information contained in the interim [Docket No. 01–118–2] including wheat seed and grain, from rule concerning Executive Order 12866 the regulated areas. Those movement and the Regulatory Flexibility Act, Karnal Bunt; Restrictions on the Use of restrictions are designed to prevent the Executive Order 12988, and the Grain Originating in a Regulated Area artificial spread of Karnal bunt. Paperwork Reduction Act. In an interim rule effective April 25, AGENCY: Animal and Plant Health 2002, and published in the Federal Further, this action has been Inspection Service, USDA. Register on April 30, 2002 (67 FR determined to be not significant for the ACTION: Affirmation of interim rule as 21159–21161, Docket No. 01–118–1), we purposes of Executive Order 12866 and, final rule. amended the regulations by prohibiting therefore, has not been reviewed by the grain grown in a regulated area from Office of Management and Budget. SUMMARY: We are adopting as a final being used as seed outside the regulated rule, without change, an interim rule List of Subjects in 7 CFR Part 301 areas and by removing the requirement that amended the Karnal bunt that wheat seed, durum wheat seed, and regulations by prohibiting grain grown Agricultural commodities, Plant triticale seed that originates within a in a regulated area from being used as diseases and pests, Quarantine, regulated area be treated with a seed outside the regulated areas and by Reporting and recordkeeping fungicide before it may be planted removing the requirement that wheat requirements, Transportation. within a regulated area. The interim rule seed, durum wheat seed, and triticale was necessary to prevent the artificial seed that originates within a regulated PART 301—DOMESTIC QUARANTINE spread of Karnal bunt to fields outside area be treated with a fungicide before NOTICES the regulated area by prohibiting the use it may be planted within a regulated of potentially spore-positive grain as area. The interim rule was necessary to Accordingly, we are adopting as a seed in those fields and to remove a help to prevent the artificial spread of final rule, without change, the interim treatment requirement that we Karnal bunt to fields outside the rule that amended 7 CFR part 301 and determined to be unnecessary. regulated area and to remove a that was published at 67 FR 21159– Comments on the interim rule were treatment requirement that we 21161 on April 30, 2002. required to be received on or before July determined to be unnecessary. 1, 2002. We received three comments by Authority: 7 U.S.C. 7711, 7712, 7714, 7731, EFFECTIVE DATE: The interim rule that date. The comments were from a 7735, 7751, 7752, 7753, 7754, and 7760; 7 became effective on April 25, 2002. State agricultural agency and two CFR 2.22, 2.80, and 371.3. FOR FURTHER INFORMATION CONTACT: Mr. industry organizations. All three Section 301.75–15 also issued under Sec. Robert Spaide, Director, Surveillance commenters supported the interim rule. 204, Title II, Pub. L. 106–113, 113 Stat. and Emergency Programs Planning and One commenter did, however, state that 1501A–293; sections 301.75–15 and 301.75– Coordination, PPQ, APHIS, 4700 River the regulations should provide growers 16 also issued under Sec. 203, Title II, Pub. Road Unit 134, Riverdale, MD 20737– and seed companies in nonregulated L. 106–224, 114 Stat. 400 (7 U.S.C. 1421 1236; (301) 734–7819. areas with the ability to voluntarily test note). SUPPLEMENTARY INFORMATION: their seed for Karnal bunt without the Done in Washington, DC, this 30th day of possibility of regulatory restrictions Background January 2003. being imposed on their farms or Kevin Shea, Karnal bunt is a fungal disease of businesses if the seed is found positive. wheat (Triticum aestivum), durum The regulations are intended to Acting Administrator, Animal and Plant wheat (Triticum durum), and triticale prevent the artificial spread of Karnal Health Inspection Service. (Triticum aestivum X Secale cereale), a bunt into noninfected areas, so their [FR Doc. 03–2684 Filed 2–4–03; 8:45 am] hybrid of wheat and rye. Karnal bunt is focus is on the movement of regulated BILLING CODE 3410–34–U caused by the smut fungus Tilletia articles from and through regulated

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DEPARTMENT OF AGRICULTURE FOR FURTHER INFORMATION CONTACT: Mr. Coffee, Grundy, and Loudon Counties, Charles L. Brown, Imported Fire Ant TN, to the list of quarantined areas. Animal and Plant Health Inspection Program Manager, PPQ, APHIS, 4700 We are taking these actions because Service River Road Unit 134, Riverdale, MD recent surveys conducted by APHIS and 20737–1236; (301) 734–8247. State and county agencies revealed that 7 CFR Part 301 SUPPLEMENTARY INFORMATION: the imported fire ant has spread to these [Docket No. 02–114–1] areas. See the rule portion of this Background document for specific descriptions of Imported Fire Ant; Additions to The imported fire ant regulations the new and revised quarantined areas. Quarantined Areas (contained in 7 CFR 301.81 through Emergency Action 301.81–10 and referred to below as the AGENCY: Animal and Plant Health This rulemaking is necessary on an Inspection Service, USDA. regulations) quarantine infested States or infested areas within States and emergency basis to prevent the spread of ACTION: Interim rule and request for restrict the interstate movement of imported fire ant into noninfested areas comments. regulated articles to prevent the of the United States. Under these circumstances, the Administrator has SUMMARY: artificial spread of the imported fire ant. We are amending the determined that prior notice and imported fire ant regulations by The imported fire ant (Solenopsis invicta Buren and Solenopsis richteri opportunity for public comment are designating as quarantined areas all or contrary to the public interest and that portions of six counties in South Forel) is an aggressive, stinging insect there is good cause under 5 U.S.C. 553 Carolina and nine counties in that, in large numbers, can seriously for making this rule effective less than Tennessee. As a result of this action, the injure and even kill livestock, pets, and 30 days after publication in the Federal interstate movement of regulated humans. The imported fire ant, which is not native to the United States, feeds on Register. articles from those areas will be We will consider comments we crops and builds large, hard mounds restricted. This action is necessary to receive during the comment period for prevent the artificial spread of the that damage farm and field machinery. this interim rule (see DATES above). The regulations are intended to prevent imported fire ant to noninfested areas of After the comment period closes, we the United States. the imported fire ant from spreading will publish another document in the throughout its ecological range within DATES: This interim rule was effective Federal Register. The document will the country. January 30, 2003. We will consider all include a discussion of any comments The regulations in § 301.81–3 provide comments that we receive on or before we receive and any amendments we are that the Administrator of the Animal April 7, 2003. making to the rule. ADDRESSES: You may submit comments and Plant Health Inspection Service by postal mail/commercial delivery or (APHIS) will list as a quarantined area Executive Order 12866 and Regulatory by e-mail. If you use postal mail/ each State, or each portion of a State, Flexibility Act commercial delivery, please send four that is infested with the imported fire This rule has been reviewed under copies of your comment (an original and ant. The Administrator will designate Executive Order 12866. For this action, three copies) to: Docket No. 02–114–1, less than an entire State as a the Office of Management and Budget Regulatory Analysis and Development, quarantined area only under the has waived its review under Executive PPD, APHIS, Station 3C71, 4700 River following conditions: (1) The State has Order 12866. Road Unit 118, Riverdale, MD 20737– adopted and is enforcing restrictions on This interim rule is necessary because 1238. Please state that your comment the intrastate movement of the regulated infestations of imported fire ant have refers to Docket No. 02–114–1. If you articles listed in § 301.81–2 that are been discovered in additional areas of use e-mail, address your comment to equivalent to the interstate movement South Carolina and Tennessee. This [email protected]. Your restrictions imposed by the regulations; action will establish quarantined areas comment must be contained in the body and (2) designating less than the entire in 5 new counties and revise the of your message; do not send attached State will prevent the spread of the boundaries of the quarantined areas in files. Please include your name and imported fire ant. The Administrator 10 other counties in those States. As a address in your message and ‘‘Docket may include uninfested acreage within result of this action, the interstate No. 02–114–1’’ on the subject line. a quarantined area due to its proximity movement of regulated articles from You may read any comments that we to an infestation or its inseparability those areas is restricted. This action is receive on this docket in our reading from an infested locality for quarantine necessary to prevent the artificial spread room. The reading room is located in purposes. of the imported fire ant into noninfested room 1141 of the USDA South Building, In § 301.81–3, paragraph (e) lists areas of the United States. 14th Street and Independence Avenue quarantined areas. We are amending The following analysis addresses the SW., Washington, DC. Normal reading § 301.81–3(e) by: economic effects of this rule and the room hours are 8 a.m. to 4:30 p.m., • Revising the boundaries of the impact on small entities as required by Monday through Friday, except quarantined areas in Cherokee, the Regulatory Flexibility Act. holidays. To be sure someone is there to Greenville, and Spartanburg Counties, The market value of the agricultural help you, please call (202) 690–2817 SC, and changing the status of products sold in the 15 counties affected before coming. Anderson, Oconee, and Pickens by this rule was more than $445 million, APHIS documents published in the Counties, SC, from partially to according to the 1997 Agricultural Federal Register, and related completely infested. Census. This represents 12 percent of information, including the names of • Revising the boundaries of the the combined total value of agricultural organizations and individuals who have quarantined areas in Maury County, TN, sales for both States. commented on APHIS dockets, are changing the status of Decatur, Franklin, Potential damage by imported fire ant available on the Internet at http:// and Monroe Counties, TN, from presents a risk to the agricultural www.aphis.usda.gov/ppd/rad/ partially to completely infested, and economies in these 15 counties. During webrepor.html. adding portions of Bedford, Blount, 1997, the value of sales from nursery

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and greenhouse crops in these 15 retroactive effect; and (3) does not Greenville County. That portion of the counties were at minimum $54 million. require administrative proceedings county bordered by a line beginning at Those entities potentially affected by before parties may file suit in court the intersection of the Greenville/ this action include nurseries, challenging this rule. Spartanburg County line and State greenhouses, farm equipment dealers, Secondary Highway 277; then northwest Paperwork Reduction Act construction companies, and those on State Secondary Highway 277 to entities that sell, process, or move This interim rule contains no State Secondary Highway 560; then east regulated articles interstate from and information collection or recordkeeping on State Highway 11 to the unpaved through quarantined areas. These requirements under the Paperwork county road—then north on the economic entities are now required to Reduction Act of 1995 (44 U.S.C. 3501 unpaved county road to secondary treat and certify their regulated articles et seq.). system road—unpaved 118; then before moving them interstate. List of Subjects in 7 CFR Part 301 northeast on secondary system road- According to the Small Business unpaved 118 to the South Carolina/ Administration (SBA) definition, a Agricultural commodities, Plant North Carolina State line; then west small agricultural producer is one diseases and pests, Quarantine, along the South Carolina/North Carolina having less than $750,000 in annual Reporting and recordkeeping State line to the Greenville/Pickens sales, and a small equipment dealer or requirements, Transportation. County line; then south along the a small agricultural service company is Accordingly, we are amending 7 CFR Greenville/Pickens County line to the one generating less than $5 million in part 301 as follows: Greenville/Laurens County line; then annual sales. northeast along the Greenville/Laurens According to this definition, all of the PART 301—DOMESTIC QUARANTINE County line to the point of beginning. NOTICES estimated 433 potentially affected * * * * * entities in the counties affected by this 1. The authority citation for part 301 Oconee County. The entire county. rule are considered small by SBA continues to read as follows: * * * * * standards. However, both the number of Pickens County. The entire county. affected entities and the scope of the Authority: 7 U.S.C. 7711, 7712, 7714, 7731, * * * * * economic effects resulting from this 7735, 7751, 7752, 7753, 7754, and 7760; 7 Spartanburg County. That portion of action are dependent on any given CFR 2.22, 2.80, and 371.3. the county bordered by a line beginning entity’s proportion of sales outside the Section 301.75–15 also issued under Sec. at the intersection of the Spartanburg/ quarantined area. 204, Title II, Pub. L. 106–113, 113 Stat. Greenville County line and State The adverse economic effect on these 1501A–293; sections 301.75–15 and 301.75– Secondary Highway 75; then northeast entities can be substantially minimized 16 also issued under Sec. 203, Title II, Pub. L. 106–224, 114 Stat. 400 (7 U.S.C. 1421 on State Secondary Highway 75 to State by the availability of various treatment note). Secondary Highway 127 in the town of options that will allow for the Gramling; then northeast on State movement of regulated articles from the 2. In § 301.81–3, paragraph (e) is Secondary Highway 127 to State quarantined area with only a small amended as follows: Secondary Highway 37; then north on additional cost. The treatment cost for a a. Under the heading South Carolina, State Secondary Highway 37 to State standard shipment of nursery plants is by revising the entries for Anderson, Highway 11; then east on State Highway estimated to be between $116 and $200, Cherokee, Greenville, Oconee, Pickens, 11 to State Secondary Highway 943; which represents, at most, 2 percent of and Spartanburg Counties. b. Under the heading Tennessee, by then east on paved county road to State the value of a standard tractor-trailer adding, in alphabetical order, new Secondary Highway 42; then southeast load of nursery plants ($10,000 to entries for Bedford, Blount, Coffee, on State Secondary Highway 42 to State $250,000). The benefits of this action are Grundy, and Loudon Counties and by Secondary Highway 132; then northeast substantial, both ensuring continued revising the entries for Decatur, on State Secondary Highway 132 to agricultural sales from the affected Franklin, Maury, and Monroe Counties. State Secondary Highway 58; then south counties and preventing human-assisted on State Secondary Highway 58 to State spread of imported fire ant. § 301.81–3 Quarantined areas. Under these circumstances, the Secondary Highway 187; then east on * * * * * State Highway 11 to the Spartanburg/ Administrator of the Animal and Plant (e) * * * Health Inspection Service has Cherokee County line; then south along determined that this action will not South Carolina the Spartanburg/Cherokee County line to the Spartanburg/Laurens County line; have a significant economic impact on * * * * * a substantial number of small entities. then north along the Spartanburg/ Anderson County. The entire county. Laurens County line to the point of Executive Order 12372 * * * * * beginning. This program/activity is listed in the Cherokee County. That portion of the * * * * * Catalog of Federal Domestic Assistance county bordered by a line beginning at Tennessee under No. 10.025 and is subject to the intersection of the Spartanburg/ Executive Order 12372, which requires Cherokee County line and State Bedford County. That portion of the intergovernmental consultation with Secondary Highway 36; then northeast county lying south of a line beginning State and local officials. (See 7 CFR part on State Secondary Highway 36 to the at the intersection of the Marshall/ 3015, subpart V.) South Carolina/North Carolina State Bedford County line and Bills Road; line; then east along the State line to the then east on Bills Road to Falcon Road; Executive Order 12988 Cherokee/York County line; then south then north on Falcon Road to Bethlehem This rule has been reviewed under along the Cherokee/York County line to Church Road; then east on Bethlehem Executive Order 12988, Civil Justice the Cherokee/Union County line; then Church Road to Uselton Road; then east Reform. This rule: (1) Preempts all State northwest on the Cherokee/Union on Uselton Road to Dixon Road; then and local laws and regulations that are County line to the point of beginning. southeast on Dixon Road to Tennessee inconsistent with this rule; (2) has no * * * * * Highway 130; then northeast on

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Tennessee Highway 130 to Snell Road; then southeast on Bryant Road to the vegetables will also have to meet certain then southeast on Snell Road to U.S. Grundy/Sequatchie County line. additional requirements, including Highway 231; then south on U.S. * * * * * packaging requirements. This action Highway 231 to the Lincoln/Moore/ Loudon County. That portion of the relieves restrictions on the movement of Bedford County line. county lying south of a line beginning these fruits and vegetables from Hawaii Blount County. That portion of the at the intersection of the Roane/Loudon while continuing to provide protection county lying south of a line beginning County line and the Tennessee River; against the spread of plant pests from at the intersection of the Loudon/Blount then east along the Tennessee River to Hawaii to other parts of the United County line and U.S. Highway 321; then the Fort Loudon Dam (U.S. Highway States. east on U.S. Highway 321 to Marble Hill 321); then northwest on U.S. Highway EFFECTIVE DATE: February 5, 2003. Road; then southeast on Marble Hill 321 to Martel Road; then northeast on FOR FURTHER INFORMATION CONTACT: Mr. Road to Gulf Hollow Road; then south Martel Road to the Loudon/Knox Hesham A. Abuelnaga, Import on Gulf Hollow Road to Kirk Road; then County line. Specialist, Phytosanitary Issues east on Kirk Road to Meadow Road; * * * * * Management Team, PPQ, APHIS, 4700 then northeast on Meadow Road to Maury County. That portion of the River Road Unit 140, Riverdale, MD Lambert Road; then southeast on county lying south of a line beginning 20737–1236; (301) 734–5334. Lambert Road to Salem Road; then at the intersection of the Lewis/Maury SUPPLEMENTARY INFORMATION: south on Salem Road to Morgantown County line and U.S. Highway 412; then Road; then northeast on Morgantown east on U.S. Highway 412 to Cecil Farm Background Road to Springview Road; then Road; then east on Cecil Farm Road to The Hawaiian Fruits and Vegetables southeast on Springview Road to Old South Cross Bridges Road; then south regulations, contained in 7 CFR 318.13 Niles Ferry Road; then southwest on on South Cross Bridges Road to Mt. through 318.13–17 (referred to below as Old Niles Ferry Road to Gillen Water Pleasant Road; then south on Mt. the regulations), govern, among other Road; then southeast on Gillen Water Pleasant Road to Tennessee Highway things, the interstate movement of fruits Road to U.S. Highway 129; then south 166; then southeast on Tennessee and vegetables from Hawaii. Regulation on U.S. Highway 129 to Baumgardner Highway 166 to Tennessee Highway is necessary to prevent the spread of Road; then east on Baumgardner Road to 243; then south on Tennessee Highway dangerous plant diseases and pests that Mint Road; then northeast on Mint Road 243 to Dry Creek Road; then south on occur in Hawaii. to Knob Road; then southeast on Knob Dry Creek Road to the Maury/Lawrence The regulations in § 318.13–4f allow Road to Sixmile Road; then south along County Line. abiu, atemoya, carambola, litchi, longan, an imaginary line to U.S. Highway 129; * * * * * papaya, rambutan, and sapodilla to be then southeast on U.S. Highway 129 to Monroe County. The entire county. moved interstate from Hawaii if, among the Tennessee/North Carolina State line. * * * * * other things, the fruits and vegetables * * * * * undergo irradiation treatment in Coffee County. That portion of the Done in Washington, DC, this 30th day of January 2003. accordance with that section. county lying south of a line beginning On May 22, 2002, we published in the at the intersection of the Bedford/Coffee Kevin Shea, Federal Register (67 FR 35932–35936, ° County line and the line of latitude 35 Acting Administrator, Animal and Plant Docket No. 00–052–1) a proposal to ′ 25 North; then east on the line of Health Inspection Service. amend the regulations to allow bell ° ′ latitude 35 25 North to Arnold Center [FR Doc. 03–2685 Filed 2–4–03; 8:45 am] peppers, eggplant, mangoes, pineapple Road; then south on Arnold Center Road BILLING CODE 3410–34–P (other than smooth Cayenne), Italian to Miller Crossroad Road; then southeast squash, and tomatoes to be moved on Miller Crossroad Road to Prairie interstate from Hawaii if treated with Plains Road; then north on Prairie DEPARTMENT OF AGRICULTURE irradiation in accordance with the Plains Road to Lonnie Bush Road; then requirements in § 318.13–4f. The northeast on Lonnie Bush Road to U.S. Animal and Plant Health Inspection Service proposal was prompted by research by Highway 41; then southeast on U.S. the Department’s Agricultural Research Highway 41 to the Coffee/Grundy 7 CFR Part 318 Service (ARS) that showed that this County line; also the entire city limits irradiation treatment could eliminate of Tullahoma, TN. [Docket No. 00–052–2] infestations of fruit flies and other pests Decatur County. The entire county. in those commodities. In that same * * * * * Fruits and Vegetables From Hawaii document, we also proposed to amend Franklin County. The entire county. AGENCY: Animal and Plant Health the irradiation regulations to require * * * * * Inspection Service, USDA. cartons of fruits and vegetables that are Grundy County. That portion of the ACTION: Final rule. being moved interstate in accordance county lying south of a line beginning with the regulations to be marked with at the intersection of the Coffee/Grundy SUMMARY: We are amending the irradiation indicators. County line and U.S. Highway 41; then regulations to allow bell peppers, We solicited comments concerning southeast on U.S. Highway 41 to eggplant, mangoes, pineapple (other our proposal for 60 days ending July 22, Tennessee Highway 50; then east on than smooth Cayenne), Italian squash, 2002. We received six comments by that Tennessee Highway 50 to Homer White and tomatoes to be moved interstate date. The comments were from Road; then north on Homer White Road from Hawaii if the fruits and vegetables researchers, a manufacturer of to Tennessee Highway 50; then undergo irradiation treatment at an irradiation equipment, and northeast on Tennessee Highway 50 to approved facility. Treatment may be representatives of a State government. Tennessee Highway 108; then east on conducted either in Hawaii or in areas The commenters generally supported Tennessee Highway 108 to Tennessee of the mainland United States where the proposal. However, four Highway 399; then northeast on tropical fruit flies are not likely to commenters expressed concern over the Tennessee Highway 399 to Bryant Road; become established. The fruits and proposed requirement for the use of

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irradiation indicators. Also, another Radiation-Sensitive Indicators.’’ Section literature on this topic and have commenter raised concerns about 7.3 of that document states: ‘‘Some determined that a higher dose of including mangoes on the list of fruits irradiation or storage conditions may irradiation for mango seed weevil is approved for movement from Hawaii if result in false positive or negative appropriate. Based on research by ARS treated with irradiation. These observations. For these reasons, (Follett, 1999) and by the International comments are discussed below by topic. indicators should not be used as a Consultative Group on Food Irradiation criterion for product release. Also, of the Food and Agriculture Irradiation Indicators external environmental influences may Organization of the United Nations,2 we We proposed to amend the irradiation make the interpretation of the indicators are setting an irradiation dose level of provisions in § 318.13–4f to require meaningless outside the irradiation 300 Gy (30 krad) for mango seed weevil cartons of fruits and vegetables being facility unless appropriate controls are in this final rule. We believe that there moved interstate in accordance with the used.’’ The commenter indicated that, is enough research and evidence to regulations to be marked with for several technical reasons, irradiation support this dose level as an effective irradiation indicators. Specifically, we indicators can only be used effectively quarantine treatment for mango seed had proposed to add a new § 318.13– to show that products have been weevil. 4f(b)(7) to read as follows: ‘‘Indicators. exposed to ‘‘some’’ radiation, and not to The same commenter also stated that Each carton of fruits and vegetables show the exact dose of radiation that a a dose of 250 Gy is excessive for fruit must bear an indicator device, securely product has received. flies. He indicated that ‘‘recent research attached prior to irradiation, that We have carefully analyzed all the and analyses have demonstrated that changes color or provides another clear data and opinions submitted studies finding that doses >150 Gy were visual change when it is exposed to recommending against the proposed needed most likely are in error,’’ but did radiation in the dose range required by indicator requirement and have decided not identify specific studies or analyses. this section for the pests for which the to omit that requirement from this final He asked when APHIS would consider articles are being treated.’’ Four rule. While we believe that an indicator lower doses. commenters opposed this proposed could be employed as a useful ‘‘cross The research supporting this requirement for numerous technical, check’’ when Animal and Plant Health comment may have merit, but such operational, and cost-benefit reasons. Inspection Service (APHIS) inspectors research must be carefully evaluated One commenter referred to several are correlating the required interstate and verified before we lower doses studies that deal with the limitations of movement certificates with the cartons below the proposed level, which we available radiation-sensitive indicators.1 referred to in those documents to offer know is effective. APHIS, in cooperation Specifically, the commenter stated that additional protection against the with ARS and others, will evaluate the dose fluctuations resulting from density introduction of plant pests into the lower doses recommended by this variations caused by the arrangement, mainland United States from Hawaii, commenter. If we determine that lower size, and weight of individual fruit apparently there is no such indicator doses are effective for fruit flies, we will within the subunits of a pallet would that is: (1) Currently available at low initiate rulemaking in the future to make irradiation indicators impractical cost; (2) validated to be sensitive and reduce the doses. However, this and unreliable. reliable in the appropriate dose ranges; evaluation process will take time, so in Another commenter stated that the and (3) validated to be resistant to false this final rule we are utilizing the dose indicators that are currently available positives and false negatives caused by of 250 Gy for fruit flies so that have not undergone adequate testing environmental effects. Therefore, we irradiation treatments may occur while and standard development, and, have omitted proposed § 318.13–4f(b)(7) this evaluation is underway. therefore, their reliability is from this final rule. The same commenter also stated that there should be a range of time given for questionable. In addition, the Dosage Recommendations commenter suggested that the added irradiation treatment the way that a time labor costs for the additional handling One commenter noted that there are range is given for vapor heat treatment must be taken into account, offsetting only two studies to date that examine in the comparison table (see Table 3) in the low cost of the production of the the relationship between radiation dose the proposed rule. The commenter also indicators themselves. and fertility in the adult mango seed asked if the comparison table compared One comment, which was reviewed weevil (Sternochetus mangiferae values for the same amount of fruit in and submitted by several researchers, (Fabricus), formerly known as both treatments. offered detailed discussion of several Cryptorhynchus mangiferae). The The comparison table was offered in issues related to the use of irradiation commenter stated that these studies do the proposed rule’s economic analysis indicators. The comment referred to not provide adequate support for the to illustrate the relative cost and time- American Society for Testing and proposed dose of 100 Gy (10 krad), saving benefits of irradiation treatments Materials (ASTM) Standard E 1539–98, which was recommended by ARS when compared to the presently ‘‘Standard Guide for the Use of research findings as a sufficient available vapor heat treatment, not to set quarantine treatment for mango seed specific values for the two treatments. 1 Ehlermann, D.A.E. (Federal Research Centre for weevil. The commenter suggested that, Although the same amount of fruit was Nutrition, Karlsruhe (Germany). Inst. of Process based on the limited amount of research used in both treatments, it was not Engineering), ‘‘Validation of a label dosimeter for that has been done, Hawaiian mangoes possible to give a time range for food irradiation applications by subjective and should be subjected to higher doses of irradiation treatment comparable to the objective means,’’ Appl. Radiat. Isot.; v. 48(9), p. 1197–1201; 1997. radiation than 100 Gy (10 krad). We had time range given for the heat vapor International Atomic Energy Agency, proposed a minimum ionizing treatment because of the number of ‘‘Standardized methods to verify absorbed dose in irradiation dose of 250 Gy (25 krad) for irradiated food for insect control,’’ IAEA, Vienna, mangoes, which we indicated would be 2 ‘‘Irradiation as a Quarantine Treatment of Fresh 2001, IAEA–TECDOC–1201. effective in eliminating both fruit flies Fruits and Vegetables,’’ ICGFI, 1991. This Razem, D. (Ruder Boskovic Inst., Zagreb publication also cited two other studies, (Heather (Croatia)), ‘‘Dosimetric performance of and and the mango seed weevil. and Corcoran, 1990) and (Jessup and Rigney, 1990), environmental effects on sterin irradiation indicator We have carefully analyzed the data that supported an irradiation dose level of 300 Gy labels,’’ Radiat. Phys. Chem.; v.49(4), p. 491–495. and conducted a review of the available (30 krad) for mango seed weevil.

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variables involved in the irradiation than smooth Cayenne), Italian squash, that will protect against the introduction process. The irradiation exposure times and tomatoes from Hawaii to the and dissemination of this pest into the that are necessary to ensure that the mainland United States. Making this mainland United States from Hawaii. specified dose has been delivered and rule effective immediately will allow This final rule opens the mainland U.S. absorbed vary widely by commodity interested producers, as well as mango market to Hawaiian mangoes. and by equipment, which is available manufacturers of the irradiation U.S. production of mangoes has from several different manufacturers of equipment that will be used to treat primarily been in southern Florida, with these articles, to benefit from trade as irradiation equipment. The Plant a smaller quantity grown in Hawaii and Protection and Quarantine Treatment soon as possible. Therefore, the a negligible amount produced in Manual, which is incorporated by Administrator of the Animal and Plant California. According to the 1997 reference in 7 CFR § 300.1, states that Health Inspection Service has Census of Agriculture, there were 218 irradiation facilities must use ASTM determined that this rule should be mango farms in Florida, 171 in Hawaii, Standard E 1261, ‘‘Guide for Selection effective upon publication in the and 2 in California. The total domestic and Calibration of Dosimetry Systems Federal Register. harvest that year was about 2,829 metric for Radiation’’ (or an equivalent Executive Order 12866 and Regulatory tons, of which about 97 percent was international standard) as a guide for Flexibility Act produced in Florida and about 3 percent selection and calibration of an appropriate dosimetry system that This rule has been reviewed under (approximately 85 metric tons) matches the dosimeter requirements Executive Order 12866. The rule has produced in Hawaii. According to specific to their needs, and that been determined to be not significant for National Agricultural Statistics Service irradiation exposure times must be the purposes of Executive Order 12866 data, Hawaii produced approximately evaluated for each commodity. The and, therefore, has not been reviewed by 72 metric tons of mangoes in 1999. It is necessary dosage levels vary from 150 the Office of Management and Budget. unlikely that this final rule will result Gy (15 krad) to 300 Gy (30 krad) based We are amending the Hawaiian Fruits in a significant amount of mangoes on commodity, and each piece of and Vegetables regulations to allow bell being moved from Hawaii to the equipment varies in the amount of time peppers, eggplant, mangoes, pineapple mainland United States because it is it takes to ensure that these dosage (other than smooth Cayenne), Italian expected that nearly all mangoes levels have been delivered and squash, and tomatoes to be moved produced in Hawaii will continue to be absorbed. Any time range given would interstate from Hawaii if they are treated consumed within the State. Further, not be able to take into account all of with irradiation in accordance with the given that the United States imported these possibilities and would therefore regulations in § 318.13–4f. Irradiation at 219,000 metric tons of mangoes between be inaccurate. We are not making any certain dosages eliminates infestations September 1998 and August 1999, any changes to the rule based on this of pests in fruits and vegetables. movements of Hawaii-grown mangoes to comment. Irradiation also eliminates bacterial or the mainland United States will be fungal growth that can otherwise cause insignificant in contrast to the volume Miscellaneous accelerated spoilage and result in of annual imports. The regulations in § 318.13–4f illness. Bacterial contamination can Bell peppers, eggplant, pineapple currently specify 250 Gy (25 krad) as the come from soil, insects, bird or rodent (other than smooth Cayenne), Italian minimum absorbed dose for all treated droppings, or the water used in squash, and tomatoes are currently commodities. Because, as noted above, processing. allowed to move interstate from Hawaii we are setting the minimum absorbed Effects on Producers and Shippers of if they are first treated for dose for mangoes at 300 Gy (30 krad), Fruits and Vegetables Mediterranean fruit fly, oriental fruit fly, we have amended several paragraphs in and melon fly with vapor heat in Since 1995, the amount of land used § 318.13–4f so that they refer to ‘‘the accordance with § 318.13–4b. Tomatoes specified dose’’ rather than to 250 Gy for commercial production of mangoes in Hawaii has nearly tripled, and more may also be moved interstate from (25 krad). Hawaii if they are treated with methyl Therefore, for the reasons given in the than 7,500 new mango trees have been planted. However, producers in Hawaii bromide in accordance with § 318.13– proposed rule and in this document, we 4c. This rule provides for an alternative are adopting the proposed rule as a final have not been able to ship mangoes to the mainland United States due to the means of treating bell peppers, eggplant, rule, with the changes discussed in this pineapple (other than smooth Cayenne), document. presence of the mango seed weevil in Hawaii (the mango seed weevil is not Italian squash, and tomatoes from Effective Date present in the mainland United States).3 Hawaii for fruit flies and other pests. This is a substantive rule that relieves The irradiation treatment in this final Since 1995, Hawaii’s production of restrictions and, pursuant to the rule provides an effective quarantine bell peppers, eggplant, Italian squash, provisions of 5 U.S.C. 553, may be made treatment for the mango seed weevil and tomatoes has increased in value and effective less than 30 days after volume (see tables 1 and 2). Hawaii’s publication in the Federal Register. 3 The mango seed weevil attacks mango seeds, but production of pineapples (other than rarely the fruit, and may cause slight fruit drop in smooth Cayenne) has decreased by 4 This rule relieves restrictions on the production areas. The mango seed weevil poses no interstate movement of bell peppers, threat to other crops or flora. It is strictly percent, but its value has increased by eggplant, mangoes, pineapple (other monophagous. 6 percent.

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TABLE 1.—PRODUCTION OF SELECTED VEGETABLES IN HAWAII

Year 1995 1996 1997 1998

Bell Peppers

Volume (fresh weight in lbs.) ...... 2,400,000 2,600,000 2,000,000 3,000,000 Value ...... $1,392,000 $1,248,000 $980,000 $1,500,000

Eggplant

Volume (fresh weight in lbs.) ...... 1,200,000 1,300,000 1,500,000 1,300,000 Value ...... $984,000 $949,000 $1,185,000 $1,053,000

Pineapples (other than smooth Cayenne)

Volume (fresh weight in lbs.) ...... 760,594,590 765,003,834 714,297,528 731,934,504 Value ...... $87,360,000 $95,914,000 $91,721,000 $92,776,000

Italian Squash

Volume (fresh weight in lbs.) ...... 620,000 700,000 1,400,000 1,500,000 Value ...... $316,000 $336,000 $700,000 $735,000

Tomatoes

Volume (fresh weight in lbs.) ...... 6,000,000 7,000,000 10,200,000 10,200,000 Value ...... $2,910,000 $3,710,000 $5,508,000 $5,610,000

TABLE 2.—CHANGE IN PRODUCTION OF SELECTED VEGETABLES IN HAWAII BETWEEN 1995 AND 1998

Volume (percent) Value (percent)

Bell peppers ...... ¥4 +6 Eggplant ...... +70 +93 Pineapples (other than smooth Cayenne) ...... +25 +8 Italian squash ...... +8 +7 Tomatoes ...... +142 +96

According to the Hawaii Agricultural same year. However, considering that in Italian squash interstate from Hawaii are Census, there were 27 farms growing 1997 there were 657 farms in Hawaii small according to SBA criteria. pineapples for commercial sale in 1997. that harvested fruits and vegetables for Regardless of their size, Hawaii’s fruit Twenty-two (or 82 percent) of those sale (90 percent of which had less than and vegetable producers and shippers farms harvested between 1 and 14 acres 14 acres of crops planted), we believe who move fruits and vegetables of pineapple. During the same year, 74 that the majority of farms producing bell interstate from Hawaii will benefit from farms produced tomatoes for peppers, eggplant, and Italian squash for commercial sale (a total of 388 acres the availability of an additional sale were small according to Small treatment alternative, especially since harvested). There are no official data Business Administration (SBA) criteria. with respect to the number of farms in this treatment is less time-consuming It is also likely that the majority of firms than the presently available vapor heat Hawaii producing bell peppers, shipping bell peppers, eggplant, and eggplant, and Italian squash during the treatment (see Table 3).

TABLE 3.—COMPARISON OF IRRADIATION AND VAPOR HEAT TREATMENTS

Irradiation Vapor heat

Cost ...... $0.22 to $0.33/kg (treatment cost) ...... $0.20 to $0.50/kg Treatment Time ...... 40 minutes ...... 1.5 to 7 hours

Effects on Treatment Facilities these fruits and vegetables could be On August 1, 2000, a new x-ray shipped to the mainland United States irradiation facility in Hawaii began The irradiation treatments for bell and treated with irradiation at facilities treating papayas, which, after their x-ray peppers, eggplants, mangoes, in Illinois or New Jersey. At present, treatment, are commercially shipped to pineapples (other than smooth various other tropical fruits, such as the mainland United States. This facility Cayenne), Italian squash, and tomatoes papaya, litchi, rambutan, carambola, treats between 500 to 1,000 boxes of will take place mostly at a new facility and atemoya are shipped from Hawaii to papayas per day, 4 days per week. that was recently built in Hawaii. a facility in Illinois for cobalt irradiation This facility will be the primary However, it is possible that some of treatment. irradiation facility to treat Hawaii-grown

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bell peppers, eggplants, mangoes, 0579–0198. Government Paperwork IRRADIATION FOR FRUIT FLIES AND pineapples (other than smooth Elimination Act Compliance SEED WEEVILS IN HAWAIIAN FRUITS Cayenne), Italian squash, and tomatoes The Animal and Plant Health AND VEGETABLES—Continued before they are moved interstate. Inspection Service is committed to However, if there is not enough capacity compliance with the Government Dose at the Hawaiian plant for the fruits to be Paperwork Elimination Act (GPEA), Fruit (gray) irradiated, the fruits can be sent for which requires Government agencies in treatment to any of the three irradiation general to provide the public the option Rambutan ...... 250 treatment facilities on the mainland of submitting information or transacting Sapodilla ...... 250 Italian squash ...... 250 United States. business electronically to the maximum Tomato ...... 250 According to SBA criteria, the facility extent possible. For information in Hawaii mentioned in the previous pertinent to GPEA compliance related to * * * * * paragraphs is a small entity (i.e., an this rule, please contact Mrs. Celeste (b) * * * entity with annual sales of less than $5 Sickles, APHIS’’ Information Collection (2) * * * million). Another firm that provides Coordinator, at (301) 734–7477. (i) Be capable of administering the irradiation treatments for fruits and minimum absorbed ionizing radiation vegetables owns two irradiation List of Subjects in 7 CFR Part 318 doses specified in paragraph (a) of this facilities in Illinois and one facility in Cotton, Cottonseeds, Fruits, Guam, section to the fruits and vegetables; 2 New Jersey. This other firm, which Hawaii, Plant diseases and pests, Puerto primarily provides irradiation treatment Rico, Quarantine, Transportation, * * * * * to sanitize medical devices, is not a Vegetables, Virgin Islands. (5) Dosage. The fruits and vegetables small entity according to SBA criteria. Accordingly, we are amending 7 CFR must receive the minimum absorbed This final rule benefits the Hawaiian part 318 as follows: ionizing radiation dose specified in treatment facility, and may benefit the paragraph (a) of this section.5 mainland facilities if the Hawaiian PART 318—HAWAIIAN AND (6) * * * facility cannot keep up with demand for TERRITORIAL QUARANTINE NOTICES (ii) Absorbed dose must be measured treatment of fruits and vegetables using a dosimeter that can accurately moving interstate from Hawaii. The 1. The authority citation for part 318 measure the absorbed doses specified in final rule could also potentially benefit continues to read as follows: paragraph (a) of this section. U.S. mainland consumers by increasing Authority: 7 U.S.C. 7711, 7712, 7714, 7731, * * * * * 7754, and 7756; 7 CFR 2.22, 2.80, and 371.3. the mainland’s supply of those fruits Done in Washington, DC this 30th day of and vegetables that will now be eligible 2. Section 318.13–4f is amended as January 2003. for interstate movement with irradiation follows: Kevin Shea, treatment. a. By revising paragraphs (a), (b)(2)(i), Acting Administrator, Animal and Plant Under these circumstances, the (b)(5), and (b)(6)(ii) to read as set forth Health Inspection Service. Administrator of the Animal and Plant below. [FR Doc. 03–2681 Filed 2–4–03; 8:45 am] Health Inspection Service has b. By adding, at the end of the section, BILLING CODE 3410–34–P determined that this action will not the following: ‘‘(Approved by the Office have a significant economic impact on of Management and Budget under a substantial number of small entities. control number 0579–0198)’’. DEPARTMENT OF AGRICULTURE Executive Order 12372 § 318.13–4f Administrative instructions Animal and Plant Health Inspection This program/activity is listed in the prescribing methods for irradiation Service Catalog of Federal Domestic Assistance treatment of certain fruits and vegetables from Hawaii. under No. 10.025 and is subject to 7 CFR Part 318 Executive Order 12372, which requires (a) Approved irradiation treatment. intergovernmental consultation with Irradiation, carried out in accordance [Docket No. 01–042–2] State and local officials. (See 7 CFR part with the provisions of this section, is 3015, subpart V.) approved as a treatment for the Interstate Movement of Gardenia From following fruits and vegetables at the Hawaii Executive Order 12988 specified dose levels: AGENCY: Animal and Plant Health This final rule has been reviewed Inspection Service, USDA. under Executive Order 12988, Civil IRRADIATION FOR FRUIT FLIES AND ACTION: Final rule. Justice Reform. This rule: (1) Preempts SEED WEEVILS IN HAWAIIAN FRUITS all State and local laws and regulations AND VEGETABLES SUMMARY: We are amending the that are inconsistent with this rule; (2) Hawaiian fruits and vegetables has no retroactive effect; and (3) does Fruit Dose regulations to provide for the movement not require administrative proceedings (gray) of cut blooms of gardenia from Hawaii. before parties may file suit in court We have determined that specific challenging this rule. Abiu ...... 250 Atemoya ...... 250 growing and inspection protocols can Paperwork Reduction Act Bell pepper ...... 250 effectively mitigate the plant pest risks associated with gardenia grown in In accordance with the Paperwork Carambola ...... 250 Eggplant ...... 250 Hawaii. This action provides for the Reduction Act of 1995 (44 U.S.C. 3501 Litchi ...... 250 interstate movement of gardenia from et seq.), the information collection or Longan ...... 250 recordkeeping requirements included in Mango ...... 300 2 The maximum absorbed ionizing radiation dose this rule have been approved by the Papaya ...... 250 and the irradiation of food is regulated by the Food Office of Management and Budget Pineapple (other than smooth Cay- and Drug Administration under 21 CFR part 179. (OMB) under OMB control number enne) ...... 250 5 See footnote 2.

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Hawaii while continuing to prevent the insufficient, since the data indicate that 20 to 25 bushes or about 10,000 square spread of plant pests within the United complete mortality of all green scales on feet of production area. These gardenias States. gardenia treated at the proposed 250 are grown in ‘‘backyard’’ type EFFECTIVE DATE: March 7, 2003. gray dosage only occurs after 20 weeks. production conditions. The largest commercial gardenia FOR FURTHER INFORMATION CONTACT: A higher dosage would be preferable, Hesham A. Abuelnaga, Import/Export but testing has demonstrated that production area in Hawaii consists of 2 acres of planted gardenia bushes that Specialist, Phytosanitary Issues gardenias do not tolerate such a dose produce about 69,200 flowers per year, Management, PPQ, APHIS, 4700 River without unacceptable decline in quality. with annual gross receipts from sales of Road Unit 140, Riverdale, MD 20737– Consequently, we have concluded that just under $13,000. While sales figures 1236; (301) 734–5334. the irradiation treatment described in the proposed rule would be an are not available for the two smaller SUPPLEMENTARY INFORMATION: unacceptable treatment for quarantine commercial producers, we presume that Background purposes. Based on that conclusion, we their annual sales are less than those of have omitted treatment with irradiation the largest producer. The regulations in ‘‘Subpart— from this final rule as an option for According to Small Business Hawaiian Fruits and Vegetables’’ (7 CFR qualifying cut blooms of gardenia for Administration size standards, an entity 318.13 through 318.13–17, referred to interstate movement from Hawaii. We involved in floriculture production below as the regulations) govern, among will continue to examine the irradiation (NAICS code 111422) is considered a other things, the interstate movement of treatment option and, if appropriate, small entity if it has annual sales of less fruits, vegetables, and other products, amend the provisions for interstate than $750,000. Under this definition, all including cut flowers, from Hawaii. movement of gardenias in the future. commercial gardenia growers in Hawaii Regulation is necessary to prevent the Therefore, for the reasons given in the would be considered small entities. spread of plant pests that exist in proposed rule and in this document, we Impact on Small Entities Hawaii. are adopting the proposed rule as a final The regulations in § 318.13–3(b)(1) rule, with the changes discussed in this Under the Regulatory Flexibility Act, provide that cut flowers (except cut document. agencies are required to specifically blooms of gardenia, mauna loa, and jade consider the economic effects of their vine, and leis thereof) may be moved Executive Order 12866 and Regulatory rules on small entities. The entities most interstate under certain conditions and Flexibility Act likely to be affected by this rule are the if accompanied by a limited permit. The This rule has been reviewed under commercial producers of gardenias movement of cut blooms of gardenia has Executive Order 12866. The rule has discussed previously in this analysis; been prohibited due to gardenia’s status been determined to be not significant for the producers are all considered to be as a host of green scale (Coccus viridus), the purposes of Executive Order 12866 small entities. also known as green coffee scale. and, therefore, has not been reviewed by We expect that commercial gardenia On May 15, 2002, we published in the the Office of Management and Budget. producers will benefit from the ability Federal Register (67 FR 34626–34630, In this document, we are amending to move their products interstate to Docket No. 01–042–1) a proposal to the regulations to provide for the markets in the continental United States amend the regulations to provide for the movement of cut blooms of gardenia while incurring the costs associated interstate movement of gardenia from from Hawaii. We have determined that with establishing and maintaining a Hawaii. As described in the proposed specific growing and inspection green-scale-free growing area. While we rule, cut blooms of gardenia from protocols can effectively mitigate the cannot estimate the amount of Hawaii would be eligible for movement plant pest risks associated with gardenia additional sales that might be enjoyed to other parts of the United States if they grown in Hawaii. This action provides by commercial gardenia producers as a were treated with irradiation in Hawaii for the interstate movement of gardenias result of this rule, we do not expect that or grown in accordance with certain from Hawaii while continuing to amount will be substantial, given the prescribed conditions. prevent the spread of plant pests within limited scale of commercial gardenia We solicited comments concerning the United States. production in Hawaii. The costs our proposal for 60 days ending July 15, Under this rule, gardenia growers in associated with the production area 2002. We received a total of four Hawaii who wish to move cut blooms of requirements are likely to be negligible comments by that date. They were from gardenia interstate from Hawaii would and limited to the maintenance of a 20- growers, researchers, and private be able to do so if the gardenias were foot-host-plant-free buffer zone around citizens. Three commenters strongly produced in a growing area determined the production area, as the required supported the proposal, agreeing that by an inspector to be free of green scale inspections will be provided free of specific growing and inspection and to meet other requirements and if charge. protocols or irradiation treatment will the cut blooms were inspected and Under these circumstances, the effectively mitigate the plant pest risks found free of green scale prior to Administrator of the Animal and Plant associated with green scale and interstate movement. Health Inspection Service has facilitate interstate movement of According to the USDA’s Pacific determined that this action will not gardenia blooms from Hawaii. Basin Agricultural Research Center in have a significant economic impact on The remaining commenter stated that Hawaii, the total planted area of a substantial number of small entities. existing data concerning irradiation gardenias in Hawaii is 26.6 acres. Of the dosage rates for the treatment of 26.6 acres of gardenias, only 3.6 acres Executive Order 12372 gardenias for green scale are insufficient belong to commercial farms: 2 acres in This program/activity is listed in the to support the effectiveness of the Kona, on the island of Hawaii; 1.1 acres Catalogue of Federal Domestic treatment described in the proposed in the Manoa Valley (Oahu); and 0.5 Assistance under No. 10.025 and is rule. As a result of that comment, we acres in Waipahu (Oahu). The subject to Executive order 12372, which reevaluated the proposed irradiation remaining 23 acres of planted gardenias requires intergovernmental consultation treatment option and found that the in Hawaii are owned by approximately with State and local officials. (See 7 CFR recommended 250 gray dosage likely is 100 growers, each having an average of part 3015, subpart V.)

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Executive Order 12988 vegetables’’ and adding the word (b) The grower must establish a buffer This final rule has been reviewed ‘‘articles’’ in their place. area surrounding gardenia production under Executive Order 12988, Civil b. In the list of regulated articles, by areas. The buffer area must extend 20 Justice Reform. This rule: (1) Preempts adding, in alphabetical order, an entry feet from the edge of the production all State and local laws and regulations for ‘‘Gardenia (cut blooms)’’. area. Within the buffer area, the growing that are inconsistent with this rule; (2) c. At the end of the section, in the of gardenias and the following green has no retroactive effect; and (3) does sentence following the list, by removing scale host plants is prohibited: Ixora, not require administrative proceedings the words ‘‘and vegetables’’ and adding ginger (Alpina purpurata), plumeria, before parties may file suit in court the words ‘‘, vegetables, or other coffee, rambutan, litchi, guava, citrus, challenging this rule. products’’ in their place and by anthurium, avocado, banana, cocoa, removing the words ‘‘fruits or macadamia, celery, Pluto indicia (a Paperwork Reduction Act vegetables’’ and adding the words weed introduced into Hawaii), mango, In accordance with the Paperwork ‘‘articles’’ in their place. orchids, and annona. Reduction Act of 1995 (44 U.S.C. 3501 (c) An inspector must visually inspect et seq.), the information collection or § 318.13–3 [Amended] the cut blooms of gardenias in each recordkeeping requirements included in 5. In § 318.13–3, paragraph (b)(1) is shipment prior to interstate movement this rule have been approved by the amended by removing the words from Hawaii to the mainland United Office of Management and Budget ‘‘gardenia, mauna loa,’’ and adding the States. If the inspector does not detect (OMB) under OMB control number words ’’mauna loa’’ in their place and green scale in the shipment, the 0579–0197. by adding the words ’’, and except any inspector would issue a certificate for cut blooms of gardenia not grown in the shipment in accordance with Government Paperwork Elimination accordance with § 318.13–4j’’ after the § 318.13–4(a). If the inspector finds Act Compliance word ‘‘thereof’’. green scale in a shipment, that shipment The Animal and Plant Health will be ineligible for interstate Inspection Service is committed to § 318.13–4 [Amended] movement from Hawaii. compliance with the Government 6. Section 318.13–4 is amended as (Approved by the Office of Management and Paperwork Elimination Act (GPEA), follows: Budget under control number 0579–0197) which requires Government agencies in a. In paragraph (a), by removing the general to provide the public the option Done in Washington, DC this 30th day of words ‘‘Fruits and vegetables’’ and January 2003. of submitting information or transacting adding the words ‘‘Regulated articles’’ Kevin Shea, business electronically to the maximum in their place. Acting Administrator, Animal and Plant extent possible. For information b. In paragraph (c)(2), by removing the pertinent to GPEA compliance related to Health Inspection Service. words ‘‘fruits and vegetables’’ and [FR Doc. 03–2683 Filed 2–4–03; 8:45 am] this rule, please contact Mrs. Celeste adding the words ‘‘fruits, vegetables, or BILLING CODE 3410–34–P Sickles, APHIS’ Information Collection other products’’ in their place. Coordinator, at (301) 734–7477. 7. A new § 318.13–4j is added to read List of Subjects in 7 CFR Part 318 as follows: DEPARTMENT OF AGRICULTURE Cotton, Cottonseeds, Fruits, Guam, § 318.13–4j Administrative instructions Animal and Plant Health Inspection Hawaii, Plant diseases and pests, Puerto governing the interstate movement of cut Service Rico, Quarantine, Transportation, blooms of gardenia from Hawaii. Vegetables, Virgin Islands. Cut blooms of gardenia may be moved 9 CFR Part 94 Accordingly, we are amending 7 CFR interstate from Hawaii if grown and part 318 as follows: inspected in accordance with the [Docket No. 01–037–2] provisions of this section. PART 318—HAWAIIAN AND Importation of Used Farm Equipment TERRITORIAL QUARANTINE NOTICES (a) The grower’s production area must From Regions Affected With Foot-and- be inspected annually by an inspector Mouth Disease 1. The authority citation for part 318 and found free of green scale. If green continues to read as follows: scale is found during an inspection, a 2- AGENCY: Animal and Plant Health Authority: 7 U.S.C. 7711, 7712, 7714, 7731, month ban will be placed on the Inspection Service, USDA. 7754, and 7756; 7 CFR 2.22, 2.80, and 371.3. interstate movement of cut blooms of ACTION: Affirmation of interim rule as gardenia from that production area. final rule. Subpart—Hawaiian Fruits, Vegetables, Near the end of the 2 months, an and Flowers inspector will reinspect the grower’s SUMMARY: We are adopting as a final production area to determine whether rule, without change, an interim rule 2. The heading for the subpart is green scale is present. If reinspection that amended the regulations revised to read as set forth above. determines that the production area is concerning foot-and-mouth disease to § 318.13–1 [Amended] free of green scale, shipping may prohibit the importation of used farm 3. In § 318.13–1, in the definition of resume. If reinspection determines that equipment from regions affected with fruits and vegetables, the word green scale is still present in the foot-and-mouth disease unless the ‘‘mellons’’ is corrected to read production area, another 2-month ban equipment has been steam-cleaned prior ‘‘melons’’. on shipping will be placed on the to export to the United States so that it interstate movement of gardenia from is free of exposed dirt and other § 318.13–2 [Amended] that production area. Each ban will be particulate matter. The interim rule also 4. In § 318.13–2, paragraph (b) is followed by reinspection in the manner provided that cleaned equipment that amended as follows: specified, and the production area must arrives at the port of arrival with a a. In the introductory text, by be found free of green scale prior to minimal amount of exposed dirt may, removing the words ‘‘fruits and interstate movement. under certain conditions, be cleaned at

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the port of arrival. The interim rule was Comments on the interim rule were This action also affirms the necessary to help prevent the required to be received on or before July information contained in the interim introduction of foot-and-mouth disease 12, 2002. We received two comments by rule concerning Executive Orders 12866 into the United States. that date, from a farmer and a and 12988 and the Paperwork EFFECTIVE DATE: The interim rule representative of a dairy industry Reduction Act. became effective on March 31, 2001. organization. Both commenters Further, this action has been FOR FURTHER INFORMATION CONTACT: Dr. supported the interim rule but requested determined to be not significant for the Karen James-Preston, Assistant Director, that additional steps be taken to prevent purposes of Executive Order 12866 and, Technical Trade Services Team, the introduction of FMD into the United therefore, has not been reviewed by the National Center for Import and Export, States. One commenter asked APHIS to Office of Management and Budget. VS, APHIS, 4700 River Road Unit 40, ensure that dirt or other particulate Regulatory Flexibility Act Riverdale, MD 20737–1231; (301) 734– matter trapped in large tires on farm 8364. equipment would be adequately This rule affirms an interim rule that SUPPLEMENTARY INFORMATION: cleaned. We believe that the cleaning amended the regulations by prohibiting and inspection requirements established the importation of used farm equipment Background by the interim rule will be adequate to from regions affected with FMD unless The regulations in 9 CFR part 94 ensure that any such residue will be the equipment is steam-cleaned prior to (referred to below as the regulations) eliminated. export to the United States so that it is govern the importation of specified The second commenter supported the free of exposed dirt and other animals and animal products into the requirement for pre-export steam particulate matter and the equipment is United States in order to prevent the cleaning, but suggested that if an APHIS accompanied by an original certificate introduction of various animal diseases, inspector notes exposed dirt on the from an authorized official of the including foot-and-mouth disease equipment at the port of arrival and national animal health service of the (FMD). Because of the highly determines that the equipment can be region of origin stating that such communicable nature of FMD, it is cleaned, APHIS should require not only cleaning was done. The interim rule necessary to protect livestock that are that the equipment be steam-cleaned but also provided that cleaned equipment free of the disease from any animals, disinfected as well, using an approved that arrives at the port of arrival with a animal products, or other articles that disinfectant. The interim rule provides minimal amount of exposed dirt may, might be contaminated with the FMD that all used farm equipment imported under certain conditions, be cleaned at virus. into the United States must be steam- the port of arrival. In an interim rule effective March 31, cleaned free of all exposed dirt and The following analysis addresses the 2001, and published in the Federal other particulate matter. If such economic effect of the interim rule on Register on May 13, 2002 (67 FR 31935– equipment were to arrive at the port of small entities, as required by the 31938, Docket No. 01–037–1), we entry with more than a minimal amount Regulatory Flexibility Act. amended the regulations to prohibit the of exposed soil present, it would be importation of used farm equipment clear to an inspector that the required While the term ‘‘farm equipment,’’ as from regions affected with FMD unless cleaning was not properly conducted defined in § 94.0 of the regulations, the equipment was steam-cleaned prior and the equipment would be denied refers to a variety of vehicles and to export to the United States so that it entry. The inspector may only allow machinery used in agriculture, tractors is free of exposed dirt and other cleaning at the port of entry if the are the one category of farm equipment particulate matter. Such equipment amount of exposed soil is minimal for which trade data are maintained on must also be accompanied by an enough to allow cleaning and there are previously used items.1 Between 1996 original certificate signed by an adequate facilities and personnel at the and 2001, U.S. imports of used tractors authorized official of the national port to accomplish the cleaning. Thus were valued at about $62 million animal health service of the country of any cleaning that might take place at a annually, and comprised about 4 origin stating that such cleaning was port of entry would be necessary to percent of the value of all U.S. done. We also provided that cleaned address the presence of only minimal agricultural tractor imports (table 1). equipment that arrives at a U.S. port amounts of exposed soil. Steam- U.S. exports of used tractors were worth with the required certification from the cleaning, whether conducted in the a little more than half that amount, exporting region but is found upon equipment’s country of origin or at a about $34 million per year. Net imports Animal and Plant Health Inspection U.S. port, is sufficient to disinfect the of used tractors were thus worth about Service (APHIS) inspection to contain a equipment. Therefore, we do not believe $28 million per year, about 10 percent minimal amount of exposed dirt or that it is necessary to prescribe the use of the value of net imports of tractors.2 other particulate matter may be cleaned of a disinfectant in addition to the at the port of arrival should the APHIS cleaning that would be conducted. 1 Harmonized tariff code 8701901090: Tractors, inspector determine that there are Therefore, for the reasons given in the suitable for agricultural use, used, except track- laying type. adequate facilities and personnel at the interim rule and in this document, we 2 The term ‘‘net imports’’ refers to the total value port to conduct such cleaning without are adopting the interim rule as a final of tractor imports minus the total value of tractor the risk of disease contamination. rule without change. exports.

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TABLE 1.—VALUE OF U.S. IMPORTS AND EXPORTS OF TRACTORS AND USED TRACTORS SUITABLE FOR AGRICULTURAL USE, 6-YEAR AVERAGES (1996–2001) [Tractor values are in millions of dollars]

Percent used New and used 2 1 Used tractors tractors, by tractors value

Imports ...... $1,483.12 $62.01 4.2 Exports ...... 1,190.79 33.79 2.8 Net imports ...... 292.33 28.22 9.7 Source: U.S. Department of Commerce, Bureau of the Census, as reported by the World Trade Atlas. 1 Harmonized tariff code 870190: Tractors, not elsewhere specified or included. 2 Harmonized tariff code 8701901090: Tractors, suitable for agricultural use, used, except track-laying type.

The United Kingdom is the largest average, supplied nearly three-fourths of Belgium supplied about 20 percent of supplier of used tractors to the United annual used tractor imports by the imports combined. States, followed by Japan and Germany United States over the past 6 years. (table 2). These three countries have, on Canada, Netherlands, France, and

TABLE 2.—VALUE OF USED TRACTOR IMPORTS1 FROM THE LEADING SOURCES, 6-YEAR AVERAGES (1996–2001) [Tractor values are in millions of dollars]

Percentage Country Average value of total

United Kingdom ...... $18.766 30.3 Japan ...... 13.875 22.4 Germany ...... 13.524 21.8 Canada ...... 5.481 8.8 Netherlands ...... 3.411 5.5 France ...... 1.960 3.2 Belgium ...... 1.509 2.4 Total from above sources ...... 58.526 94.3 Total from all sources ...... 62.014 – Source: U.S. Department of Commerce, Bureau of the Census, as reported by the World Trade Atlas. 1 Harmonized tariff code 8701901090: Tractors, suitable for agricultural use, used, except track-laying type.

Imports of used farm equipment from amount larger than its 1996–2001 expected, therefore, that cleaning and several of these countries have already annual average of $13.875 million. certification costs would not be any been restricted by the interim rule Used tractors entering the United higher overseas, and could well be because of FMD outbreaks in those States from regions affected with FMD lower, depending on relative labor costs. countries after the rule became effective must be certified by the national animal The 2.6 percent may represent an upper on March 31, 2001. However, import health service of their region of origin as bound of the additional import expenses levels suggest that the interim rule has having been steam-cleaned before being that would be attributable to the interim had little impact on trade volumes. For exported. APHIS does not have rule. example, the value of used tractor information on steam-cleaning costs The two groups that can be expected imports from the United Kingdom overseas, but costs at U.S. ports provide to incur some costs as a result of the (Great Britain and Northern Ireland) a basis for assessing the impact of the interim rule are importers of used farm during 2001—throughout which its interim rule. The cost for steam-cleaning equipment and farmers; if passed along all the tractors shipped in a 40-foot FMD-free status was revoked, except for by the exporter, importers and farmers container holding approximately 16 the first 14 days of January—totaled will likely split the additional cost of tractors with rotary tillers is roughly the required cleaning and certification $18.025 million. This amount compares 3 $2,000. We expect the cost of depending on the demand elasticity in closely with its 1996–2001 annual certification would likely be less than average of $18.766 million. Used tractor the market for used farm equipment. $50. The average price of imported used Most importers likely employ fewer imports in the same year from 4 tractors is about $4,940 each. Thus, the than 100 people, the threshold the Netherlands and France, both of which value of the tractors in a container had their FMD-free status revoked at Small Business Administration has set would total about $79,040, of which the for such firms to be called small entities. different times during 2001, were $2,050 cost of cleaning and certification Most farms earn $750,000 or less in valued at $2.977 million and $1.800 represents about 2.6 percent. annual receipts, the corresponding million, respectively, amounts not very The principal cost component in both threshold for agricultural operations to different from their 1996–2001 annual cleaning and certification is labor. It is be called small entities. Therefore, most averages of $3.411 million and $1.960 businesses likely to be affected by the million. Finally, used tractor imports 3 APHIS cost estimates for the port of Long Beach, interim rule are small entities. However, CA. from Japan in 2001, which had its FMD- the data on used tractors, currently the free status revoked throughout the year, 4 Six-year average, 1996–2001. U.S. Department of Commerce, Bureau of the Census, as reported by the only data available on used farm were valued at $15.071 million, an World Trade Atlas. equipment, indicate that the effects will

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not be large; cleaning and certification corrective actions if such doublers are and caused scratches to the skin. expenses will add less than 3 percent to installed. For certain airplanes, this Examination of the skin underneath the the cost of imported used tractors. action includes optional repetitive doubler revealed longitudinal scratches, Under these circumstances, the inspections of the fuselage skin for which could have been caused by the Administrator of the Animal and Plant scratches or cracking. This action is tail strike event, and a 15-inch crack Health Inspection Service has necessary to find and fix possible found underneath the repair doubler determined that this rule will not have fatigue cracking of the fuselage skin that originated from and extended along a significant economic impact on a concealed under certain repair doublers, these scratches. Further investigation of substantial number of small entities. which could result in rapid the affected area revealed that certain decompression of the airplane. This damage (scratches) may not have been List of Subjects in 9 CFR Part 94 action is intended to address the found and removed after the tail strike, Animal diseases, Imports, Livestock, identified unsafe condition. which led to fatigue cracking over time. Meat and meat products, Milk, Poultry DATES: Effective February 20, 2003. The probable cause of the accident has and poultry products, Reporting and The incorporation by reference of not yet been determined. recordkeeping requirements. certain publications listed in the The FAA recently received a second regulations is approved by the Director report indicating that scratches were PART 94—RINDERPEST, FOOT-AND- of the Federal Register as of February found under a repair doubler on a MOUTH DISEASE, FOWL PEST (FOWL 20, 2003. Model 747–200 series airplane during PLAGUE), EXOTIC NEWCASTLE Comments for inclusion in the Rules an inspection requested by the DISEASE, AFRICAN SWINE FEVER, Docket must be received on or before manufacturer. It has been determined HOG CHOLERA, AND BOVINE April 7, 2003. that the aft ‘‘belly’’ portion of the SPONGIFORM ENCEPHALOPATHY: ADDRESSES: Submit comments in section 46 fuselage on Model 747 series PROHIBITED AND RESTRICTED triplicate to the Federal Aviation airplanes is susceptible to tail strike IMPORTATIONS Administration (FAA), Transport damage during landing and takeoff. Airplane Directorate, ANM–114, Repair procedures in the Boeing 747 Accordingly, we are adopting as a Attention: Rules Docket No. 2002–NM– structural repair manual describe final rule, without change, the interim 316–AD, 1601 Lind Avenue, SW., blending out such damage on the skin rule that amended 9 CFR part 94 and Renton, Washington 98055–4056. and installing a repair doubler over the that was published at 67 FR 31935– Comments may be inspected at this affected area. Any unremoved damage 31938 on May 13, 2002. location between 9 a.m. and 3 p.m., could result in fatigue cracking of the Authority: 7 U.S.C. 450, 7711–7714, 7751, Monday through Friday, except Federal fuselage skin concealed under certain 7754, 8303, 8306, 8308, 8310, 8311, and holidays. Comments may be submitted repair doublers, and consequent rapid 8315; 21 U.S.C. 136 and 136a; 31 U.S.C. via fax to (425) 227–1232. Comments decompression of the airplane. 9701; 42 U.S.C. 4331 and 4332; 7 CFR 2.22, 2.80, and 371.4. may also be sent via the Internet using Explanation of Relevant Service the following address: 9-anm- Information Done in Washington, DC, this 30th day of [email protected]. Comments sent The FAA has reviewed and approved January 2003. via fax or the Internet must contain Kevin Shea, Boeing Alert Service Bulletin 747– ‘‘Docket No. 2002–NM–316–AD’’ in the 53A2489, dated November 26, 2002, Acting Administrator, Animal and Plant subject line and need not be submitted Health Inspection Service. which describes procedures for a one- in triplicate. Comments sent via the time external visual inspection of the [FR Doc. 03–2682 Filed 2–4–03; 8:45 am] Internet as attached electronic files must fuselage skin at body stations 1961 BILLING CODE 3410–34–P be formatted in Microsoft Word 97 for through 2360 inclusive, between Windows or ASCII text. stringers S–46L and S–46R, for repair The service information referenced in doublers. If a repair doubler is installed, DEPARTMENT OF TRANSPORTATION this AD may be obtained from Boeing and the repair doubler meets all four Commercial Airplane Group, PO Box criteria (external repair doubler, at least Federal Aviation Administration 3707, Seattle, Washington 98124–2207. 8 inches long longitudinally (in the This information may be examined at forward and aft direction), has fasteners 14 CFR Part 39 the FAA, Transport Airplane common to a frame, and was installed Directorate, 1601 Lind Avenue, SW., [Docket No. 2002–NM–316–AD; Amendment due to a tail strike or for unknown 39–13044; AD 2003–03–19] Renton, Washington; or at the Office of reasons) specified in Figure 2 of the the Federal Register, 800 North Capitol service bulletin, the service bulletin RIN 2120–AA64 Street, NW., suite 700, Washington, DC. describes procedures for follow-on FOR FURTHER INFORMATION CONTACT: Rick Airworthiness Directives; Boeing inspections and corrective actions. Kawaguchi, Aerospace Engineer, Model 747 Series Airplanes The follow-on inspections and Airframe Branch, ANM–120S, FAA, corrective actions include removal of AGENCY: Federal Aviation Seattle Aircraft Certification Office, the doubler, a one-time assessment Administration, DOT. 1601 Lind Avenue, SW., Renton, (inspection) of the skin under the ACTION: Final rule; request for Washington 98055–4056; telephone doubler for damage (scratches, comments. (425) 227–1153; fax (425) 227–1181. cracking), and repair of any damage SUPPLEMENTARY INFORMATION: In May found. For certain airplanes, as an SUMMARY: This amendment adopts a 2002, a Boeing Model 747–200 series alternative to removal of the doubler new airworthiness directive (AD) that is airplane was involved in an in-flight and assessment of the skin underneath, applicable to all Boeing Model 747 breakup. A portion of the fuselage skin the service bulletin describes series airplanes. This action requires a with a repair doubler attached was procedures for repetitive inspections of one-time inspection of the fuselage skin recovered, and investigation revealed the fuselage skin for damage. These of the aft lower body for certain repair that the repair doubler was installed inspections are either internal mid- doublers, and follow-on inspections and after a tail strike that occurred in 1980 frequency eddy current, or external

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detailed visual, depending on the length revise the compliance time of this AD to submitted in response to this rule must of the doubler. Accomplishment of the include airplanes that have accumulated submit a self-addressed, stamped actions specified in the service bulletin more than 10,000 total flight cycles, but postcard on which the following is intended to adequately address the less than 15,000 total flight cycles; statement is made: ‘‘Comments to identified unsafe condition. however, the planned compliance time Docket Number 2002–NM–316–AD.’’ The service bulletin also specifies for the additional airplanes is The postcard will be date stamped and contacting Boeing for disposition of sufficiently long so that notice and returned to the commenter. certain repair conditions. opportunity for prior public comment Regulatory Impact Explanation of the Requirements of the will be practicable. The regulations adopted herein will Rule Determination of Rule’s Effective Date not have a substantial direct effect on Since an unsafe condition has been Since a situation exists that requires the States, on the relationship between identified that is likely to exist or the immediate adoption of this the national Government and the States, develop on other 747 series airplanes of regulation, it is found that notice and or on the distribution of power and the same type design, this AD is being opportunity for prior public comment responsibilities among the various issued to find and fix possible fatigue hereon are impracticable, and that good levels of government. Therefore, it is cracking of the fuselage skin concealed cause exists for making this amendment determined that this final rule does not under certain repair doublers, which effective in less than 30 days. have federalism implications under could result in rapid decompression of Comments Invited Executive Order 13132. the airplane. This AD requires a one- The FAA has determined that this time inspection of the fuselage skin of Although this action is in the form of regulation is an emergency regulation the aft lower body for repair doublers, a final rule that involves requirements that must be issued immediately to and follow-on inspections and affecting flight safety and, thus, was not correct an unsafe condition in aircraft, corrective actions if repair doublers are preceded by notice and an opportunity and that it is not a ‘‘significant installed. This AD also includes for public comment, comments are regulatory action’’ under Executive optional repetitive inspections of the invited on this rule. Interested persons Order 12866. It has been determined fuselage skin for scratches or cracking. are invited to comment on this rule by further that this action involves an The actions are required to be submitting such written data, views, or emergency regulation under DOT accomplished in accordance with the arguments as they may desire. Regulatory Policies and Procedures (44 service bulletin described previously, Communications shall identify the FR 11034, February 26, 1979). If it is except as discussed below. Rules Docket number and be submitted determined that this emergency in triplicate to the address specified Differences Between Service Bulletin regulation otherwise would be under the caption ADDRESSES. All and This AD significant under DOT Regulatory communications received on or before The service bulletin specifies an Policies and Procedures, a final the closing date for comments will be regulatory evaluation will be prepared inspection of the fuselage skin between considered, and this rule may be stringers S–46L and S–46R for the and placed in the Rules Docket. A copy amended in light of the comments of it, if filed, may be obtained from the presence of doublers. However, the FAA received. Factual information that has determined that repairs common to Rules Docket at the location provided supports the commenter’s ideas and under the caption ADDRESSES. the S–46 lap splice that do not extend suggestions is extremely helpful in inboard more than 4 inches from the S– evaluating the effectiveness of the AD List of Subjects in 14 CFR Part 39 46 center line do not require the action and determining whether Air transportation, Aircraft, Aviation inspection. Tail strike damage would additional rulemaking action would be safety, Incorporation by reference, more likely occur towards the ‘‘belly’’ needed. Safety. portion of the section 46 fuselage. Submit comments using the following Repairs limited to the S–46 lap splice format: Adoption of the Amendment area are probably due to corrosion • Organize comments issue-by-issue. findings. The manufacturer agrees with For example, discuss a request to Accordingly, pursuant to the this determination and will incorporate change the compliance time and a authority delegated to me by the this change into the next revision of request to change the service bulletin Administrator, the Federal Aviation Boeing Alert Service Bulletin 747– reference as two separate issues. Administration amends part 39 of the 53A2489. • For each issue, state what specific Federal Aviation Regulations (14 CFR The service bulletin also specifies that change to the AD is being requested. part 39) as follows: the manufacturer may be contacted for • Include justification (e.g., reasons or PART 39—AIRWORTHINESS disposition of certain repair conditions, data) for each request. DIRECTIVES but this AD would require the repair of Comments are specifically invited on those conditions to be accomplished in the overall regulatory, economic, 1. The authority citation for part 39 accordance with a method approved by environmental, and energy aspects of continues to read as follows: the FAA, or in accordance with data the rule that might suggest a need to meeting the type certification basis of modify the rule. All comments Authority: 49 U.S.C. 106(g), 40113, 44701. the airplane approved by a Boeing submitted will be available, both before § 39.13 [Amended] Company Designated Engineering and after the closing date for comments, Representative who has been authorized in the Rules Docket for examination by 2. Section 39.13 is amended by by the FAA to make such findings. interested persons. A report that adding the following new airworthiness summarizes each FAA-public contact directive: Interim Action concerned with the substance of this AD 2003–03–19 Boeing: Amendment 39– This is considered to be interim will be filed in the Rules Docket. 13044. Docket 2002–NM–316–AD. action. The FAA is currently Commenters wishing the FAA to Applicability: All Model 747 series considering further rulemaking action to acknowledge receipt of their comments airplanes, certificated in any category.

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Note 1: This AD applies to each airplane is found, before further flight, do the If no scratch is found during the external identified in the preceding applicability corrective actions specified in paragraph (f) detailed inspection or if no crack is found provision, regardless of whether it has been of this AD. during the external HFEC inspection, repeat modified, altered, or repaired in the area Note 3: For the purposes of this AD, a the external detailed inspection per subject to the requirements of this AD. For detailed inspection is defined as: ‘‘An paragraph (d)(2)(i) or (d)(2)(ii) of this AD, as airplanes that have been modified, altered, or intensive visual examination of a specific applicable. repaired so that the performance of the structural area, system, installation, or (i) If the doubler is 8–15 inches in length, requirements of this AD is affected, the assembly to detect damage, failure, or repeat the inspection at least every 200 flight owner/operator must request approval for an irregularity. Available lighting is normally cycles. alternative method of compliance in supplemented with a direct source of good (ii) If the doubler is 15–20 inches in length, accordance with paragraph (i) of this AD. The lighting at intensity deemed appropriate by repeat the inspection at least every 50 flight request should include an assessment of the the inspector. Inspection aids such as mirror, cycles. effect of the modification, alteration, or repair magnifying lenses, etc., may be used. Surface (e) If, during any inspection required by on the unsafe condition addressed by this cleaning and elaborate access procedures paragraph (d)(1) or (d)(2) of this AD, any AD; and, if the unsafe condition has not been may be required.’’ scratch is found, but no crack: Within 1,000 eliminated, the request should include flight cycles or 18 months after doing the (1) If the date of installation of the repair specific proposed actions to address it. inspection required by paragraph (a) of this doubler is unknown, or 10,000 or more flight AD, whichever is first, do the inspections Compliance: Required as indicated, unless cycles have accumulated since the date of required by paragraph (b) of this AD. accomplished previously. installation of the repair doubler, do the Accomplishment of this paragraph ends the To find and fix possible fatigue cracking of inspections before further flight. repetitive inspections required by paragraph the fuselage skin concealed under certain (2) If less than 10,000 flight cycles have (d)(1) or (d)(2) of this AD, as applicable. repair doublers, which could result in rapid accumulated since the date of installation of decompression of the airplane, accomplish the repair doubler, do the inspections within Corrective Actions the following: 10,000 flight cycles after the date of (f) If any crack is found during any One-Time Inspection installation of the repair doubler. inspection required by this AD, or if any (c) For any repair doubler that meets either (a) Before the accumulation of 15,000 total scratch is found during any inspection of the conditions specified in paragraphs required by paragraph (b) of this AD: Before flight cycles or within 90 days after the (c)(1) and (c)(2) of this AD: No action is effective date of this AD, whichever is later, further flight, repair per the Accomplishment required by this AD for that doubler only. Instructions of Boeing Alert Service Bulletin do a general visual inspection for repair (1) The repair doubler is common to the S– doublers on the fuselage skin at body stations 747–53A2489, dated November 26, 2002. 46 lap splice and does not extend inboard Where the service bulletin specifies to 1961 through 2360 inclusive, between more than 4 inches from the center line. stringers S–46L and S–46R. The inspection is contact Boeing for appropriate action: Before (2) A skin assessment was done before further flight, repair per a method approved only for doublers that meet all of the installing the repair doubler per Figure 6 of following four criteria: External repair by the Manager, Seattle Aircraft Certification Boeing Alert Service Bulletin 747–53A2489, Office (ACO), FAA; or per data meeting the doublers, doublers at least 8 inches long dated November 26, 2002. longitudinally (in the forward and aft type certification basis of the airplane direction), doublers that have fasteners Optional Repetitive Inspections approved by a Boeing Company Designated Engineering Representative who has been common to a frame, doublers installed due to (d) For airplanes that meet the conditions authorized by the Manager, Seattle ACO, to a tail strike or for unknown reasons. Do the specified in paragraph (d)(1) or (d)(2) of this make such findings. For a repair method to inspection per Part 1 and Figure 2 of the AD, as alternative to the inspections required be approved, the approval must specifically Accomplishment Instructions of Boeing Alert by paragraph (b) of this AD: Do the reference this AD. Service Bulletin 747–53A2489, dated applicable inspections required by either November 26, 2002. paragraph (d)(1) or (d)(2) of this AD per Adjustments to Compliance Time: Cabin Note 2: For the purposes of this AD, a Boeing Alert Service Bulletin 747–53A2489, Differential Pressure general visual inspection is defined as: ‘‘A dated November 26, 2002; at the applicable (g) For the purposes of calculating the visual examination of an interior or exterior time specified in paragraph (b)(1) or (b)(2) of compliance threshold and repetitive interval area, installation, or assembly to detect this AD. for the actions required by this AD: The obvious damage, failure, or irregularity. This (1) If the edge of the doubler does not end number of flight cycles in which cabin level of inspection is made from within on a stringer center line: Do an internal mid- differential pressure is at 2.0 pounds per touching distance unless otherwise specified. frequency eddy current (MFEC) inspection of square inch (psi) or less need not be counted A mirror may be necessary to enhance visual the fuselage skin for cracking (if the edge of when determining the number of flight cycles access to all exposed surfaces in the the doubler ends on a stringer center line it that have occurred on the airplane, provided inspection area. This level of inspection is is not possible to do the MFEC inspection) that flight cycles with momentary spikes in made under normally available lighting per Part 3 and Figure 4 of the cabin differential pressure above 2.0 psi are conditions such as daylight, hangar lighting, Accomplishment Instructions of the service included as full pressure cycles. For this flashlight, or droplight and may require bulletin. If no crack is found, before further provision to apply, all cabin pressure records removal or opening of access panels or doors. flight, do an external detailed inspection for must be maintained for each airplane: No Stands, ladders, or platforms may be required scratches per Part 3 and Figure 4, of the fleet-averaging of cabin pressure is allowed. to gain proximity to the area being checked.’’ Accomplishment Instructions of the service bulletin. If any scratch is found, before Reporting Requirement Follow-on Inspections further flight, do an external HFEC (h) Within 30 days after doing the initial (b) Except as provided by paragraph (c) of inspection of the scratched area for cracking. inspections required by paragraphs (b) and this AD, for any repair doubler subject to the If no scratch is found during the external (d) of this AD: Submit a report of inspection requirements of paragraph (a) of this AD: detailed inspection or if no crack is found findings of cracking or scratches of the Remove the repair doubler and do the during the external HFEC inspection; repeat fuselage skin to the Manager, Seattle Aircraft inspections/assessment (includes external the MFEC inspection at least every 250 flight Certification Office (ACO), FAA, 1601 Lind detailed, external visual, and external high cycles. Avenue, SW., Renton, Washington 98055– frequency eddy current (HFEC) inspections) (2) If the doubler is 20 inches in length or 4056; fax (425) 227–1181. The report must of the fuselage skin for damage (cracking or less, do an external detailed inspection of the include the inspection results (airplane line scratches) per Part 2 and Figure 3 of the fuselage skin for damage (cracking or number, size and location of damage, and Accomplishment Instructions of Boeing Alert scratches) per Part 4 and Figure 5 of the type of discrepancy found). Information Service Bulletin 747–53A2489, dated Accomplishment Instructions of the service collection requirements contained in this AD November 26, 2002. Do the inspections at the bulletin. If any scratch is found, before have been approved by the Office of applicable time specified in paragraph (b)(1) further flight, do an external HFEC Management and Budget (OMB) under the or (b)(2) of this AD. If any crack or scratch inspection of the scratched area for cracking. provisions of the Paperwork Reduction Act of

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1980 (44 U.S.C. 3501 et seq.) and have been SUMMARY: This document publishes in Quebec H3C 3G9, Canada. This assigned OMB Control Number 2120–0056. the Federal Register an amendment information may be examined at the Alternative Methods of Compliance adopting airworthiness directive (AD) FAA, Transport Airplane Directorate, (i) An alternative method of compliance or 2003–02–51 that was sent previously to 1601 Lind Avenue, SW., Renton, adjustment of the compliance time that all known U.S. owners and operators of Washington; or at the FAA, New York provides an acceptable level of safety may be Bombardier Model CL–600–2C10 Aircraft Certification Office, 10 Fifth used if approved by the Manager, Seattle (Regional Jet Series 700 and 701) series Street, Third Floor, Valley Stream, New ACO. Operators shall submit their requests airplanes by individual notices. This AD York; or at the Office of the Federal through an appropriate FAA Principal requires an airplane flight manual Register, 800 North Capitol Street, NW., Maintenance Inspector, who may add (AFM) revision to introduce new suite 700, Washington, DC. comments and then send it to the Manager, quantity limitations for the center fuel Seattle ACO. FOR FURTHER INFORMATION CONTACT: tank and associated procedures; to limit Rodrigo J. Huete, Flight Test Pilot, Note 4: Information concerning the flight to within 30 minutes of a suitable existence of approved alternative methods of Systems and Flight Test Branch, ANE– alternative airport; and to limit the compliance with this AD, if any, may be 172, FAA, New York Aircraft center tank fuel quantity to 1,500 lbs. obtained from the Seattle ACO. Certification Office, 10 Fifth Street, (680 kgs.) maximum at takeoff. This Third Floor, Valley Stream, New York Special Flight Permits action is prompted by issuance of 11581; telephone (516) 256–7518; fax mandatory continuing airworthiness (j) Special flight permits may be issued in (516) 568–2716. accordance with sections 21.197 and 21.199 information by a civil airworthiness of the Federal Aviation Regulations (14 CFR authority. The actions specified by this SUPPLEMENTARY INFORMATION: On 21.197 and 21.199) to operate the airplane to AD are intended to detect and correct January 16, 2003, the FAA issued a location where the requirements of this AD discrepancies in the fuel distribution emergency AD 2003–02–51, which is can be accomplished. system, which could cause the center applicable to all Bombardier Model CL– Incorporation by Reference tank to overfill and fuel to leak from the 600–2C10 (Regional Jet Series 700 and (k) Unless otherwise specified in this AD: center tank vent system or to become 701) series airplanes. The actions shall be done in accordance with inaccessible, and could result in engine Background Boeing Alert Service Bulletin 747–53A2489, fuel starvation. dated November 26, 2002. This incorporation DATES: Effective February 10, 2003, to Transport Canada Civil Aviation by reference was approved by the Director of all persons except those persons to (TCCA), which is the airworthiness the Federal Register in accordance with 5 whom it was made immediately authority for Canada, advises that U.S.C. 552(a) and 1 CFR part 51. Copies may vibration and fuel line misalignment in be obtained from Boeing Commercial effective by emergency AD 2003–02–51, Airplane Group, P.O. Box 3707, Seattle, issued January 16, 2003, which the center tank has resulted in damage Washington 98124–2207. Copies may be contained the requirements of this to fuel line couplings and cracks in the inspected at the FAA, Transport Airplane amendment. fuel feed lines. TCCA also advises that Directorate, 1601 Lind Avenue, SW., Renton, The incorporation by reference of more recently four incidents have been Washington; or at the Office of the Federal certain publications listed in the reported of cracked fuel feed lines near Register, 800 North Capitol Street, NW., suite regulations is approved by the Director the welded boss for the transfer ejector 700, Washington, DC. of the Federal Register as of February motive flow lines within the center fuel Effective Date 10, 2003. tank. The airplanes landed without (l) This amendment becomes effective on Comments for inclusion in the Rules incident. As a result of the fuel leakage February 20, 2003. Docket must be received on or before into the center tank, an imbalance of March 7, 2003. fuel could occur within the fuel system Issued in Renton, Washington, on January and a significant amount of fuel may not 24, 2003. ADDRESSES: Submit comments in be usable during flight. Discrepancies in Ali Bahrami, triplicate to the Federal Aviation Administration (FAA), Transport the fuel distribution system, if not Acting Manager, Transport Airplane detected and corrected, could cause the Directorate, Aircraft Certification Service. Airplane Directorate, ANM–114, Attention: Rules Docket No. 2003–NM– center tank to overfill and fuel to leak [FR Doc. 03–2210 Filed 2–4–03; 8:45 am] 20–AD, 1601 Lind Avenue, SW., from the center tank vent system or to BILLING CODE 4910–13–P Renton, Washington 98055–4056. become inaccessible, and could result in Comments may be inspected at this engine fuel starvation. DEPARTMENT OF TRANSPORTATION location between 9 a.m. and 3 p.m., Explanation of Relevant Service Monday through Friday, except Federal Information Federal Aviation Administration holidays. Comments may be submitted via fax to (425) 227–1232. Comments Bombardier has issued Canadair 14 CFR Part 39 may also be sent via the Internet using Temporary Revision (TR) RJ 700/42, the following address: 9-anm- dated January 14, 2003, which describes [Docket No. 2003–NM–20–AD; Amendment [email protected]. Comments sent procedures for revising the Limitations, 39–13041; AD 2003–02–51] via fax or the Internet must contain Normal Procedures, and Abnormal RIN 2120–AA64 ‘‘Docket No. 2003–NM–20–AD’’ in the Procedures sections of the Airplane subject line and need not be submitted Flight Manual (AFM) to introduce new Airworthiness Directives; Bombardier in triplicate. Comments sent via the quantity limitations for the center fuel Model CL–600–2C10 (Regional Jet Internet as attached electronic files must tank and associated procedures. TCCA Series 700 and 701) Series Airplanes be formatted in Microsoft Word 97 for classified this TR as mandatory and AGENCY: Federal Aviation Windows or ASCII text. issued Canadian airworthiness directive Administration, DOT. The applicable service information CF–2003–01, dated January 15, 2003, in may be obtained from Bombardier, Inc., order to ensure the continued ACTION: Final rule; request for Canadair, Aerospace Group, PO Box airworthiness of these airplanes in comments. 6087, Station Centre-ville, Montreal, Canada.

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FAA’s Conclusions and opportunity for prior public Regulatory Impact This airplane model is manufactured comment thereon were impracticable The regulations adopted herein will in Canada and is type certificated for and contrary to the public interest, and not have a substantial direct effect on operation in the United States under the good cause existed to make the AD the States, on the relationship between provisions of section 21.29 of the effective immediately by individual the national Government and the States, Federal Aviation Regulations (14 CFR notices issued on January 16, 2003, to or on the distribution of power and 21.29) and the applicable bilateral all known U.S. owners and operators of responsibilities among the various airworthiness agreement. Pursuant to Bombardier Model CL–600–2C10 levels of government. Therefore, it is this bilateral airworthiness agreement, (Regional Jet Series 700 and 701) series determined that this final rule does not TCCA has kept the FAA informed of the airplanes. These conditions still exist, have federalism implications under situation described above. The FAA has and the AD is hereby published in the Executive Order 13132. examined the findings of TCCA, Federal Register as an amendment to The FAA has determined that this reviewed all available information, and section 39.13 of the Federal Aviation regulation is an emergency regulation determined that AD action is necessary Regulations (14 CFR 39.13) to make it that must be issued immediately to for products of this type design that are effective as to all persons. correct an unsafe condition in aircraft, certificated for operation in the United Interim Action and that it is not a ‘‘significant States. regulatory action’’ under Executive This is considered to be interim Other Relevant Rulemaking Order 12866. It has been determined action until final action is identified, at further that this action involves an On May 7, 2002, the FAA issued AD which time the FAA may consider emergency regulation under DOT 2002–08–19, amendment 39–12731 (67 further rulemaking. Regulatory Policies and Procedures (44 FR 31939, May 13, 2002), applicable to Comments Invited FR 11034, February 26, 1979). If it is all Bombardier Model CL–600–2C10 determined that this emergency (Regional Jet Series 700 and 701) series Although this action is in the form of regulation otherwise would be airplanes. That AD requires revising the a final rule that involves requirements significant under DOT Regulatory AFM to address uncommanded transfer affecting flight safety and, thus, was not Policies and Procedures, a final of fuel between the wing fuel tanks and preceded by notice and an opportunity regulatory evaluation will be prepared the center fuel tank; revising the for public comment, comments are and placed in the Rules Docket. A copy Minimum Equipment List (MEL); invited on this rule. Interested persons of it, if filed, may be obtained from the limiting airplane operation; and are invited to comment on this rule by Rules Docket at the location provided increasing normal mission fuel submitting such written data, views, or under the caption ADDRESSES. requirements by 3,000 pounds. That AD arguments as they may desire. also requires modification of the fuel Communications shall identify the List of Subjects in 14 CFR Part 39 distribution system for the center tank; Rules Docket number and be submitted Air transportation, Aircraft, Aviation an inspection of the system for in triplicate to the address specified safety, Incorporation by reference, discrepancies; and corrective actions if under the caption ADDRESSES. All Safety. necessary. communications received on or before This AD, however, addresses a newly the closing date for comments will be Adoption of the Amendment identified failure mode in the fuel considered, and this rule may be Accordingly, pursuant to the transfer system involving fuel leaks in amended in light of the comments authority delegated to me by the the aft section of the center fuel tank, received. Factual information that Administrator, the Federal Aviation while the failure mode discussed in AD supports the commenter’s ideas and Administration amends part 39 of the 2002–08–19 involves fuel leaks in the suggestions is extremely helpful in Federal Aviation Regulations (14 CFR forward section of the center fuel tank. evaluating the effectiveness of the AD part 39) as follows: Explanation of the Requirements of the action and determining whether Rule additional rulemaking action would be PART 39—AIRWORTHINESS needed. DIRECTIVES Since the unsafe condition described is likely to exist or develop on other Comments are specifically invited on 1. The authority citation for part 39 airplanes of the same type design the overall regulatory, economic, continues to read as follows: environmental, and energy aspects of registered in the United States, the FAA Authority: 49 U.S.C. 106(g), 40113, 44701. issued emergency AD 2003–02–51 to the rule that might suggest a need to detect and correct discrepancies in the modify the rule. All comments § 39.13 [Amended] submitted will be available, both before fuel distribution system, which could 2. Section 39.13 is amended by cause the center tank to overfill and fuel and after the closing date for comments, in the Rules Docket for examination by adding the following new airworthiness to leak from the center tank vent system directive: or to become inaccessible, and could interested persons. A report that result in engine fuel starvation. The AD summarizes each FAA-public contact 2003–02–51 Bombardier, Inc. (Formerly requires an AFM revision to introduce concerned with the substance of this AD Canadair): Amendment 39–13041. Docket 2003–NM–20–AD. new quantity limitations for the center will be filed in the Rules Docket. fuel tank and associated procedures; to Commenters wishing the FAA to Applicability: Model CL–600–2C10 acknowledge receipt of their comments (Regional Jet Series 700 and 701) series limit flight to within 30 minutes of a airplanes, serial numbers (S/N) 10005 and suitable alternative airport; and to limit submitted in response to this rule must subsequent; certificated in any category. submit a self-addressed, stamped the center tank fuel quantity to 1,500 Note 1: This AD applies to each airplane lbs. (680 kgs.) maximum at takeoff. This postcard on which the following identified in the preceding applicability AD terminates certain requirements of statement is made: ‘‘Comments to provision, regardless of whether it has been AD 2002–08–19. Docket Number 2003–NM–20–AD.’’ The modified, altered, or repaired in the area Since it was found that immediate postcard will be date stamped and subject to the requirements of this AD. For corrective action was required, notice returned to the commenter. airplanes that have been modified, altered, or

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repaired so that the performance of the Special Flight Permits ACTION: Final rule. requirements of this AD is affected, the (f) Special flight permits may be issued in owner/operator must request approval for an accordance with sections 21.197 and 21.199 SUMMARY: This amendment adopts a alternative method of compliance in of the Federal Aviation Regulations (14 CFR new airworthiness directive (AD), accordance with paragraph (e) of this AD. 21.197 and 21.199) to operate the airplane to applicable to certain Dornier Model The request should include an assessment of a location where the requirements of this AD 328–100 and –300 series airplanes, that the effect of the modification, alteration, or can be accomplished, provided the requires replacement of the screws in repair on the unsafe condition addressed by limitations provided in paragraphs (f)(1), this AD; and, if the unsafe condition has not the aileron, rudder, and elevator trim (f)(2), and (f)(3) of this AD are provided in tabs with new screws; and removal and been eliminated, the request should include the special flight permit: specific proposed actions to address it. (1) Normal mission fuel requirements must re-installation of screws in the aileron, Compliance: Required as indicated, unless be increased by 3000 lbs. elevator, and rudder trim tabs and the accomplished previously. (2) Operations must be within thirty (30) rudder spring tab; as applicable. This To detect and correct discrepancies in the minutes of a suitable alternate airport. action is necessary to prevent reduced fuel distribution system, which could cause (3) Center fuel tank limited to 1,500 lbs at structural integrity of the screws in the the center tank to overfill and fuel to leak takeoff. aileron, elevator, and rudder trim tabs from the center tank vent system or to 2 Incorporation by Reference and the rudder spring tab, due to become inaccessible, and could result in countersinks that were not (g) The AFM revision required by engine fuel starvation, accomplish the manufactured correctly, which could following: paragraph (a) of this AD shall be done in accordance with Canadair Temporary result in reduced controllability of the Revision of Airplane Flight Manual (AFM) Revision RJ 700/42, dated January 14, 2003. airplane. This action is intended to (a) Within 2 days after the effective date of This incorporation by reference was address the identified unsafe condition. this AD, revise the applicable Limitations, approved by the Director of the Federal DATES: Effective March 12, 2003. Register in accordance with 5 U.S.C. 552(a) Normal Procedures, and Abnormal The incorporation by reference of Procedures sections of Canadair Regional Jet and 1 CFR part 51. Copies may be obtained from Bombardier, Inc., Canadair, Aerospace certain publications listed in the Series 700 AFM CSP B–012 by incorporating Group, PO Box 6087, Station Centre-ville, regulations is approved by the Director Canadair Temporary Revision (TR) RJ 700/42, Montreal, Quebec H3C 3G9, Canada. Copies of the Federal Register as of March 12, dated January 14, 2003, and operate the may be inspected at the FAA, Transport airplane in accordance with those limitations 2003. Airplane Directorate, 1601 Lind Avenue, and procedures. ADDRESSES: The service information SW., Renton, Washington; or at the FAA, (b) When the information incorporating New York Aircraft Certification Office, 10 referenced in this AD may be obtained Canadair Temporary Revision RJ 700/42, Fifth Street, Third Floor, Valley Stream, New from FAIRCHILD DORNIER, DORNIER dated January 14, 2003, has been York; or at the Office of the Federal Register, Luftfahrt GmbH, PO Box 1103, D–82230 incorporated into the general revisions of the 800 North Capitol Street, NW., suite 700, Wessling, Germany. This information AFM, the general revisions may be Washington, DC. may be examined at the Federal incorporated into the AFM, and these TRs Note 3: The subject of this AD is addressed Aviation Administration (FAA), may be removed from the AFM. in Canadian airworthiness directive CF– (c) Within 2 days after the effective date of Transport Airplane Directorate, Rules 2003–01, dated January 15, 2003. this AD, revise the Limitations section of Docket, 1601 Lind Avenue, SW., Renton, Washington; or at the Office of Canadair Regional Jet Series 700 AFM CSP Effective Date B–012 to limit operation of the airplane to the Federal Register, 800 North Capitol (h) This amendment becomes effective on flight within 30 minutes of a suitable Street, NW., suite 700, Washington, DC. February 10, 2003, to all persons except those alternative airport. This action may be persons to whom it was made immediately FOR FURTHER INFORMATION CONTACT: Dan accomplished by inserting a copy of this AD effective by emergency AD 2003–02–51, Rodina, Aerospace Engineer, into the Limitations section of the AFM. issued January 16, 2003, which contained the International Branch, ANM–116, FAA, Accomplishment of this action constitutes requirements of this amendment. terminating action for the AFM revision Transport Airplane Directorate, 1601 required by paragraphs (c) and (g) of AD Issued in Renton, Washington, on January Lind Avenue, SW., Renton, Washington 2002–08–19, amendment 12731. 24, 2003. 98055–4056; telephone (425) 227–2125; (d) Within 2 days after the effective date of Ali Bahrami, fax (425) 227–1149. this AD, revise the Limitations section of Acting Manager, Transport Airplane SUPPLEMENTARY INFORMATION: A Canadair Regional Jet Series 700 of AFM CSP Directorate, Aircraft Certification Service. proposal to amend part 39 of the Federal B–012 to specify that, prior to each further [FR Doc. 03–2151 Filed 2–4–03; 8:45 am] Aviation Regulations (14 CFR part 39) to flight, the center fuel quantity must be limited to 1,500 lbs. maximum at takeoff. BILLING CODE 4910–13–P include an airworthiness directive (AD) This action may be accomplished by that is applicable to certain Dornier inserting a copy of this AD into the Model 328–100 and –300 series Limitations section of the AFM. DEPARTMENT OF TRANSPORTATION airplanes was published in the Federal Register on September 25, 2002 (67 FR Alternative Methods of Compliance Federal Aviation Administration 60193). That action proposed to require (e) An alternative method of compliance or replacement of the screws in the aileron, adjustment of the compliance time that 14 CFR Part 39 rudder, and elevator trim tabs with new provides an acceptable level of safety may be [Docket No. 2002–NM–140–AD; Amendment screws; and removal and re-installation used if approved by the Manager, New York 39–13042; AD 2003–03–17] of screws in the aileron, elevator, and Aircraft Certification Office (ACO), FAA. rudder trim tabs and the rudder spring Operators shall submit their requests through RIN 2120–AA64 an appropriate FAA Principal Maintenance tab; as applicable. Inspector, who may add comments and then Airworthiness Directives; Dornier Comments send it to the Manager, New York ACO. Model 328–100 and –300 Series Note 2: Information concerning the Airplanes Interested persons have been afforded existence of approved alternative methods of an opportunity to participate in the compliance with this AD, if any, may be AGENCY: Federal Aviation making of this amendment. No obtained from the New York ACO. Administration, DOT. comments were submitted in response

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to the proposal or the FAA’s figures typically do not include Docket at the location provided under determination of the cost to the public. incidental costs, such as the time the caption ADDRESSES. required to gain access and close up, Conclusion List of Subjects in 14 CFR Part 39 planning time, or time necessitated by The FAA has determined that air other administrative actions. Air transportation, Aircraft, Aviation safety and the public interest require the safety, Incorporation by reference, adoption of the rule as proposed. Regulatory Impact Safety. Cost Impact The regulations adopted herein will Adoption of the Amendment The FAA estimates that 53 Model not have a substantial direct effect on the States, on the relationship between Accordingly, pursuant to the 328–100 series airplanes and 48 Model authority delegated to me by the 328–300 series airplanes of U.S. registry the national Government and the States, or on the distribution of power and Administrator, the Federal Aviation will be affected by this AD, that it will Administration amends part 39 of the take approximately 3 work hours per responsibilities among the various levels of government. Therefore, it is Federal Aviation Regulations (14 CFR airplane to accomplish the required part 39) as follows: actions, and that the average labor rate determined that this final rule does not is $60 per work hour. Required parts have federalism implications under PART 39—AIRWORTHINESS will be supplied by the manufacturer at Executive Order 13132. DIRECTIVES no cost to operators. Based on these For the reasons discussed above, I figures, the cost impact of the AD on certify that this action (1) is not a 1. The authority citation for part 39 U.S. operators is estimated to be ‘‘significant regulatory action’’ under continues to read as follows: $18,180, or $180 per airplane. Executive Order 12866; (2) is not a Authority: 49 U.S.C. 106(g), 40113, 44701. The cost impact figure discussed ‘‘significant rule’’ under DOT above is based on assumptions that no Regulatory Policies and Procedures (44 § 39.13 [Amended] operator has yet accomplished any of FR 11034, February 26, 1979); and (3) 2. Section 39.13 is amended by the requirements of this AD action, and will not have a significant economic adding the following new airworthiness that no operator would accomplish impact, positive or negative, on a directive: those actions in the future if this AD substantial number of small entities 2003–03–17 Dornier Luftfahrt GMBH: were not adopted. The cost impact under the criteria of the Regulatory Amendment 39–13042. Docket 2002– figures discussed in AD rulemaking Flexibility Act. A final evaluation has NM–140–AD. actions represent only the time been prepared for this action and it is Applicability: Airplanes listed in Table 1 of necessary to perform the specific actions contained in the Rules Docket. A copy this AD, certificated in any category. Table 1 actually required by the AD. These of it may be obtained from the Rules follows:

TABLE 1.—APPLICABILITY

Model Serial numbers

328–100 series airplanes ...... 3005 through 3119 inclusive. 328–300 series airplanes ...... 3105 through 3196, excluding 3192 through 3194, inclusive.

Note 1: This AD applies to each airplane Screw Replacement or Removal and Re- (ii) Remove and re-install the screws in the identified in the preceding applicability Installation rudder trim tab (including applying zinc- provision, regardless of whether it has been (a) For Model 328–100 series airplanes: chromate putty, torquing the screws, and modified, altered, or repaired in the area Within 2 months after the effective date of removing the squeezed zinc-chromate putty). subject to the requirements of this AD. For this AD, do the actions specified in (iii) Remove and re-install the screws in the rudder spring tab (including applying airplanes that have been modified, altered, or paragraphs (a)(1), (a)(2), and (a)(3) of this AD; as applicable. zinc-chromate putty, torquing the screws, repaired so that the performance of the and removing the squeezed zinc-chromate requirements of this AD is affected, the (1) Replace the screws in the aileron trim tab with new screws (including applying putty). owner/operator must request approval for an zinc-chromate putty, torquing the screws, (b) For Model 328–100 series airplanes on alternative method of compliance in 2 and removing the squeezed zinc-chromate which the actions specified in Dornier accordance with paragraph (e) of this AD. putty), per Dornier Service Bulletin SB–328– Service Bulletin SB–328–55–368, Revision 1, The request should include an assessment of 57–350, Revision 2, dated January 16, 2002. dated December 11, 2001, have been the effect of the modification, alteration, or (2) Replace the screws in the rudder and accomplished, the requirements specified in repair on the unsafe condition addressed by elevator trim tabs with new screws paragraphs (a)(3)(i) and (a)(3)(ii) of this AD this AD; and, if the unsafe condition has not (including applying zinc-chromate putty, do not need to be accomplished. (c) For Model 328–300 series airplanes: been eliminated, the request should include torquing the screws, and removing the Within 2 months after the effective date of specific proposed actions to address it. squeezed zinc-chromate putty), per Dornier Service Bulletin SB–328–55–368, Revision 1, this AD, do the actions specified in Compliance: Required as indicated, unless dated December 11, 2001. paragraphs (c)(1), (c)(2), (c)(3), and (c)(4) of accomplished previously. (3) Except as provided by paragraph (b) of this AD; as applicable. To prevent reduced structural integrity of this AD, do the actions specified in (1) For airplanes having serial numbers the screws in the aileron, elevator, and paragraphs (a)(3)(i), (a)(3)(ii), and (a)(3)(iii) of 3105 through 3174 inclusive: Replace the rudder trim tabs and the rudder spring tab, this AD, per Dornier Service Bulletin SB– screws in the aileron trim tab with new due to countersinks that were not 328–55–422, dated February 8, 2002. screws (including applying zinc-chromate manufactured correctly, which could result (i) Remove and re-install the screws in the putty, torquing the screws, and removing the elevator trim tab (including applying zinc- squeezed zinc-chromate putty), per Dornier in reduced controllability of the airplane, chromate putty, torquing the screws, and Service Bulletin SB–328J–57–057, Revision accomplish the following: removing the squeezed zinc-chromate putty). 2, dated January 16, 2002.

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(2) For airplanes having serial numbers zinc-chromate putty, torquing the screws, Airplane Directorate, FAA. Operators shall 3105 through 3174 inclusive: Replace the and removing the squeezed zinc-chromate submit their requests through an appropriate screws in the rudder and elevator trim tabs putty). FAA Principal Maintenance Inspector, who with new screws (including applying zinc- (4) For airplanes having serial numbers may add comments and then send it to the chromate putty, torquing the screws, and 3175 through 3196, excluding serial numbers Manager, International Branch, ANM–116. removing the squeezed zinc-chromate putty), 3192 through 3194 inclusive: Remove and re- per Dornier Service Bulletin SB–328J–55– install the screws in the aileron trim tab Note 2: Information concerning the 074, Revision 1, dated December 11, 2001. (including applying zinc-chromate putty, existence of approved alternative methods of (3) For airplanes having serial numbers torquing the screws, and removing the compliance with this AD, if any, may be 3105 through 3196, excluding serial numbers squeezed zinc-chromate putty), per Dornier obtained from the International Branch, 3192 through 3194 inclusive: Except as Service Bulletin SB–328J–57–152, dated ANM–116. provided by paragraph (d) of this AD, do the February 8, 2002. actions specified in paragraphs (c)(3)(i), (d) For Model 328–300 airplanes on which Special Flight Permits (c)(3)(ii), and (c)(3)(iii) of this AD, per the actions specified in Dornier Service Dornier Service Bulletin SB–328J–55–153, Bulletin SB–328J–55–074, Revision 1, dated (f) Special flight permits may be issued in dated February 8, 2002. December 11, 2001, have been accomplished, accordance with sections 21.197 and 21.199 (i) Remove and re-install the screws in the the requirements specified in paragraphs of the Federal Aviation Regulations (14 CFR elevator trim tab (including applying zinc- (c)(3)(i) and (c)(3)(ii) of this AD do not need 21.197 and 21.199) to operate the airplane to chromate putty, torquing the screws, and to be accomplished. a location where the requirements of this AD removing the squeezed zinc-chromate putty). can be accomplished. (ii) Remove and re-install the screws in the Alternative Methods of Compliance rudder trim tab (including applying zinc- (e) An alternative method of compliance or Incorporation by Reference chromate putty, torquing the screws, and adjustment of the compliance time that (g) The actions shall be done in accordance provides an acceptable level of safety may be removing the squeezed zinc-chromate putty). with the Dornier service bulletins listed in (iii) Remove and re-install the screws in used if approved by the Manager, the rudder spring tab (including applying International Branch, ANM–116, Transport Table 2 of this AD as follows:

TABLE 2.—SERVICE BULLETINS

Dornier service bulletin Revision Date

SB–328–57–350 ...... 2 ...... January 16, 2002 SB–328–55–368 ...... 1 ...... December 11, 2001 SB–328–55–422 ...... Original ...... February 8, 2002 SB–328J–57–057 ...... 2 ...... January 16, 2002 SB–328J–55–074 ...... 1 ...... December 11, 2001 SB–328J–55–153 ...... Original ...... February 8, 2002 SB–328J–57–152 ...... Original ...... February 8, 2002

This incorporation by reference was DEPARTMENT OF TRANSPORTATION reduced structural integrity of the approved by the Director of the Federal primary structure of the engine pylons, Register in accordance with 5 U.S.C. 552(a) Federal Aviation Administration and uncommanded deployment of the and 1 CFR part 51. Copies may be obtained thrust reversers, which could result in from FAIRCHILD DORNIER, DORNIER 14 CFR Part 39 reduced controllability of the airplane. Luftfahrt GmbH, PO Box 1103, D–82230 This action is intended to address the Wessling, Germany. Copies may be inspected [Docket No. 2002–NM–102–AD; Amendment 39–13040; AD 2003–03–16] identified unsafe condition. at the FAA, Transport Airplane Directorate, DATES: Effective February 20, 2003. 1601 Lind Avenue, SW., Renton, RIN 2120–AA64 The incorporation by reference of Washington; or at the Office of the Federal certain publications listed in the Airworthiness Directives; Airbus Model Register, 800 North Capitol Street, NW., suite regulations is approved by the Director A330–223, –321, –322, and –323 Series 700, Washington, DC. of the Federal Register as of February Airplanes Equipped With Pratt & Note 3: The subject of this AD is addressed 20, 2003. in German airworthiness directives 2002– Whitney Model PW4164, PW4168, or Comments for inclusion in the Rules 126/2 and 2002–127/2, both dated June 27, PW4168A Engines Docket must be received on or before 2002. AGENCY: Federal Aviation March 7, 2003. Effective Date Administration, DOT. ADDRESSES: Submit comments in triplicate to the Federal Aviation (h) This amendment becomes effective on ACTION: Final rule; request for comments. Administration (FAA), Transport March 12, 2003. Airplane Directorate, ANM–114, Issued in Renton, Washington, on January SUMMARY: This amendment adopts a Attention: Rules Docket No. 2002–NM– 24, 2003. new airworthiness directive (AD) that is 102–AD, 1601 Lind Avenue, SW., Ali Bahrami, applicable to certain Airbus Model Renton, Washington 98055–4056. Acting Manager, Transport Airplane A330–223, –321, –322, and –323 series Comments may be inspected at this Directorate, Aircraft Certification Service. airplanes equipped with Pratt & location between 9 a.m. and 3 p.m., [FR Doc. 03–2152 Filed 2–4–03; 8:45 am] Whitney Model PW4164, PW4168, or Monday through Friday, except Federal PW4168A engines. This action requires holidays. Comments may be submitted BILLING CODE 4910–13–P modification of the primary structure of via fax to (425) 227–1232. Comments the engine pylons, and replacement of may also be sent via the Internet using the thrust reverser locking actuators the following address: 9-anm- with new, improved locking actuators. [email protected]. Comments sent This action is necessary to prevent via fax or the Internet must contain

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‘‘Docket No. 2002–NM–102–AD’’ in the Accomplishment of the actions inspections are not associated with any subject line and need not be submitted specified in these service bulletins is known unsafe condition. The DGAC in triplicate. Comments sent via the intended to adequately address the required these inspections to minimize Internet as attached electronic files must identified unsafe condition. The DGAC the possibility of a fan blade-off event, be formatted in Microsoft Word 97 for classified these service bulletins as pending the retrofit of the modifications Windows or ASCII text. mandatory and issued French in paragraph 3 of the French The service information referenced in airworthiness directive 2000–237– airworthiness directive. All Airbus this AD may be obtained from Airbus 123(B) R1, dated December 12, 2001, in Model A330–223, –321, –322, and –323 Industrie, 1 Rond Point Maurice order to assure the continued series airplanes of U.S. registry were Bellonte, 31707 Blagnac Cedex, France. airworthiness of these airplanes in delivered with the modifications This information may be examined at France. installed. the FAA, Transport Airplane Airbus Service Bulletin A330–78– The French airworthiness directive Directorate, 1601 Lind Avenue, SW., 3011, dated December 14, 1999, defers implementation of the mandatory Renton, Washington; or at the Office of references Pratt & Whitney Service actions (i.e., modification of the engine the Federal Register, 800 North Capitol Bulletin PW4G–100–78–71, dated pylon and replacement of the thrust Street, NW., suite 700, Washington, DC. September 24, 1999, as an additional reverser locking actuators) for a period FOR FURTHER INFORMATION CONTACT: Dan source of service information for of time by requiring the inspections Rodina, Aerospace Engineer, accomplishment of the replacement of described in the preceding paragraph. International Branch, ANM–116, FAA, the thrust reverser locking actuators. The compliance time for accomplishment of the mandatory Transport Airplane Directorate, 1601 FAA’s Conclusions Lind Avenue, SW., Renton, Washington actions is before the accumulation of This airplane model is manufactured 8,000 flight cycles since new, or before 98055–4056; telephone (425) 227–2125; in France and is type certificated for fax (425) 227–1149. August 1, 2004, whichever occurs first. operation in the United States under the The DGAC advises that if the SUPPLEMENTARY INFORMATION: The provisions of section 21.29 of the inspections in the preceding paragraph Direction Ge´ne´rale de l’Aviation Civile Federal Aviation Regulations (14 CFR are not mandated, the modifications (DGAC), which is the airworthiness 21.19) and the applicable bilateral must be accomplished in a timeframe authority for France, notified the FAA airworthiness agreement. Pursuant to comparable to that of the inspections. that an unsafe condition may exist on this bilateral airworthiness agreement, Therefore, this AD requires certain Airbus Model A330–223, –321, the DGAC has kept the FAA informed accomplishment of the mandatory –322, and –323 series airplanes of the situation described above. The actions within 500 engine hours or six equipped with Pratt & Whitney Model FAA has examined the findings of the months after the effective date of this PW4164, PW4168, or PW4168A engines. DGAC, reviewed all available AD, whichever occurs later. The DGAC advises that engine fan information, and determined that AD Operators should note that, unlike the blade-out tests performed by the engine action is necessary for products of this French airworthiness directive, this AD manufacturer, Pratt &Whitney, have type design that are certificated for will not require the replacement of the shown that the loads used for operation in the United States. pylon aft mount nuts and bolts since the certification of the engines were manufacturer has confirmed to the FAA underestimated. In the event of an Explanation of Requirements of the Rule that all pylon aft mount nuts and bolts engine fan blade-out, the induced loads made of MP159 material have already could lead to reduced structural Since an unsafe condition has been been replaced. Additionally, the French integrity of the primary structure of the identified that is likely to exist or airworthiness directive requires engine pylons, and uncommanded develop on other airplanes of the same replacement of the pylon front mount deployment of the thrust reversers. This type design that may be registered in the bolts made of MP159 material. The FAA condition, if not corrected, could result United States at some time in the future, has determined through review of data in reduced controllability of the this AD is being issued to prevent the provided by the engine manufacturer airplane. reduced structural integrity of the that repetitive inspection of front mount Explanation of Relevant Service primary structure of the engine pylons, bolts made of MP159 material addresses Information and uncommanded deployment of the the unsafe condition. As discussed thrust reversers, which could result in below, the FAA previously issued two Airbus has issued Service Bulletin reduced controllability of the airplane. other ADs that require these actions. A330–54–3016, Revision 01, dated This AD requires accomplishment of the These differences have been August 7, 2000, which describes actions specified in the service bulletins coordinated with and acknowledged by procedures for the modification of the described previously, except as the DGAC. primary structure of the engine pylons. discussed below. The modification includes, among other Other Relevant Rulemaking Differences Between this AD and the actions, replacing the stainless steel The FAA has previously issued two French Airworthiness Directive screws at rib 8B and rib 12 with Inconel other ADs that concern the pylon aft screws, and replacing the stainless steel This AD differs from the parallel and forward mount nuts and bolts on screws located on the lateral panel seam French airworthiness directive in that it Airbus airplanes: of the lower spar between rib 8C and rib will not require repetitive visual 1. AD 2000–25–53, amendment 39– 10 with stainless steel screws of the inspections of the fan blades at intervals 12051 (65 FR 82259, December 28, next-higher-nominal diameter. not to exceed 500 engine hours, or an 2000), requires repetitive inspections for Airbus has also issued Service ultrasonic inspection of the attachment cracks or other damage of pylon aft Bulletin A330–78–3011, dated area of the fan blade root before the mount nuts and bolts made of MP159 December 14, 1999, which describes accumulation of 5,000 parts cycles since material. procedures for the replacement of the new, or within 500 parts cycles after the 2. AD 2000–16–02, amendment 39– thrust reverser locking actuators with effective date of the French 11856 (65 FR 49730, August 15, 2000), new, improved locking actuators. airworthiness directive. These requires repetitive inspections and

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torque checks for loose or broken pylon • Organize comments issue-by-issue. Administrator, the Federal Aviation forward mount bolts made from INCO For example, discuss a request to Administration amends part 39 of the 718 material and establishes a new life change the compliance time and a Federal Aviation Regulations (14 CFR limit for these bolts. The AD also request to change the service bulletin part 39) as follows: requires repetitive inspections of pylon reference as two separate issues. forward mount bolts made from MP159 • For each issue, state what specific PART 39—AIRWORTHINESS material. change to the proposed AD is being DIRECTIVES However, this AD will not affect the requested. 1. The authority citation for part 39 • Include justification (e.g., reasons or current requirements of either of those continues to read as follows: previously issued ADs. data) for each request. Comments are specifically invited on Authority: 49 U.S.C. 106(g), 40113, 44701. Cost Impact the overall regulatory, economic, § 39.13 [Amended] environmental, and energy aspects of The FAA estimates that 9 airplanes of 2. Section 39.13 is amended by U.S. registry will be affected by this AD. the rule that might suggest a need to modify the rule. All comments adding the following new airworthiness The FAA has been advised that the 9 directive: affected airplanes have been modified in submitted will be available, both before accordance with the requirements of and after the closing date for comments, 2003–03–16 Airbus: Amendment 39–13040. this AD. Therefore, currently, this AD in the Rules Docket for examination by Docket 2002–NM–102–AD. action imposes no additional economic interested persons. A report that Applicability: Airbus Model A330–223, burden on any U.S. operator. summarizes each FAA-public contact –321, –322, and –323 series airplanes, concerned with the substance of this AD certificated in any category, equipped with However, should an unmodified Pratt & Whitney Model PW4164, PW4168, or airplane be imported and placed on the will be filed in the Rules Docket. Commenters wishing the FAA to PW4168A engines; except those airplanes on U.S. Register in the future, it will take which all of the following modifications have acknowledge receipt of their comments approximately 51 work hours per been installed: submitted in response to this rule must airplane to accomplish the actions, at an —Modification 46147 (reference Airbus submit a self-addressed, stamped average labor rate of $60 per work hour. Service Bulletin A330–54–3016, Revision postcard on which the following Required parts will be supplied by the 01, dated August 7, 2000); statement is made: ‘‘Comments to manufacturer to the operators at no cost. —Modification 46948 (reference Airbus Docket Number 2002–NM–102–AD.’’ Based on these figures, the cost impact Service Bulletin A330–71–3012, Revision The postcard will be date stamped and 01, dated August 25, 2000), or Modification of the AD is estimated to be $3,060 per returned to the commenter. 49419 (reference Airbus Service Bulletin airplane. A330–71–3015, Revision 01, dated March Regulatory Impact Determination of Rule’s Effective Date 19, 2002); The regulations adopted herein will —Modification 46383 (reference Airbus Since this AD action does not affect not have a substantial direct effect on Service Bulletin A330–71–3009, Revision any airplane that is currently on the 02, dated August 31, 2001); and the States, on the relationship between —Modification 47341 (reference Airbus U.S. registry, it has no adverse economic the national Government and the States, impact and imposes no additional Service Bulletin A330–78–3011, dated or on the distribution of power and December 14, 1999). burden on any person. Therefore, prior responsibilities among the various notice and public procedures hereon are Note 1: This AD applies to each airplane levels of government. Therefore, it is identified in the preceding applicability unnecessary and the amendment may be determined that this final rule does not provision, regardless of whether it has been made effective in less than 30 days after have federalism implications under otherwise modified, altered, or repaired in publication in the Federal Register. Executive Order 13132. the area subject to the requirements of this AD. For airplanes that have been modified, Comments Invited For the reasons discussed above, I certify that this action (1) is not a altered, or repaired so that the performance Although this action is in the form of ‘‘significant regulatory action’’ under of the requirements of this AD is affected, the owner/operator must request approval for an a final rule and was not preceded by Executive Order 12866; (2) is not a notice and opportunity for public alternative method of compliance in ‘‘significant rule’’ under DOT accordance with paragraph (e) of this AD. comment, comments are invited on this Regulatory Policies and Procedures (44 The request should include an assessment of rule. Interested persons are invited to FR 11034, February 26, 1979); and (3) the effect of the modification, alteration, or comment on this rule by submitting will not have a significant economic repair on the unsafe condition addressed by such written data, views, or arguments impact, positive or negative, on a this AD; and, if the unsafe condition has not as they may desire. Communications substantial number of small entities been eliminated, the request should include shall identify the Rules Docket number under the criteria of the Regulatory specific proposed actions to address it. and be submitted in triplicate to the Flexibility Act. A final evaluation has Compliance: Required as indicated, unless address specified under the caption accomplished previously. been prepared for this action and it is To prevent reduced structural integrity of ADDRESSES. All communications contained in the Rules Docket. A copy received on or before the closing date the primary structure of the engine pylons, of it may be obtained from the Rules and uncommanded deployment of the thrust for comments will be considered, and Docket at the location provided under reversers, which could result in reduced this rule may be amended in light of the the caption ADDRESSES. controllability of the airplane, accomplish comments received. Factual information the following: that supports the commenter’s ideas and List of Subjects in 14 CFR Part 39 suggestions is extremely helpful in Modification of the Engine Pylon Primary Air transportation, Aircraft, Aviation Structure evaluating the effectiveness of the AD safety, Incorporation by reference, action and determining whether Safety. (a) Prior to the accumulation of 500 flight cycles on the engine or 6 months after the additional rulemaking action would be Adoption of the Amendment effective date of this AD, whichever occurs needed. later, modify the primary structure of the Submit comments using the following Accordingly, pursuant to the engine pylon by accomplishing all of the format: authority delegated to me by the actions specified in the Accomplishment

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Instructions of Airbus Service Bulletin A330– Note 4: The subject of this AD is addressed information at the Federal Aviation 54–3016, Revision 01, dated August 7, 2000, in French airworthiness directive 2000–237– Administration (FAA), Central Region, per the service bulletin. 123(B) R1, dated December 12, 2001. Office of the Regional Counsel, (b) Modifications accomplished before the effective date of this AD, per Airbus Service Effective Date Attention: Rules Docket No. 2002–CE– 46–AD, 901 Locust, Room 506, Kansas Bulletin A330–54–3016, dated July 15, 1999, (h) This amendment becomes effective on are considered acceptable for compliance February 20, 2003. City, Missouri 64106; or at the Office of with the applicable modification required by the Federal Register, 800 North Capitol this AD. Issued in Renton, Washington, on January Street, NW., suite 700, Washington, DC. 24, 2003. FOR FURTHER INFORMATION CONTACT: Replacement of Thrust Reverser Locking Ali Bahrami, Actuators Doug Rudolph, Aerospace Engineer, Acting Manager, Transport Airplane FAA, Small Airplane Directorate, 901 (c) Within 500 hours on the engine or 6 Directorate, Aircraft Certification Service. months after the effective date of this AD, Locust, Room 301, Kansas City, whichever occurs later, replace the thrust [FR Doc. 03–2146 Filed 2–4–03; 8:45 am] Missouri 64106; telephone: (816) 329– reverser locking actuators on engine 1 and BILLING CODE 4910–13–P 4059; facsimile: (816) 329–4090. engine 2 with new and improved actuators, SUPPLEMENTARY INFORMATION: per Airbus Service Bulletin A330–78–3011, dated December 14, 1999. DEPARTMENT OF TRANSPORTATION Discussion Note 2: Airbus Service Bulletin A330–78– 3011, dated December 14, 1999, references Federal Aviation Administration What events have caused this AD? Pratt & Whitney Service Bulletin PW4G–100– The Ente Nazionale per l’ Aviazione 78–71, dated September 24, 1999, as an 14 CFR Part 39 Civile (ENAC), which is the additional source of service information for airworthiness authority for Italy, accomplishment of the replacement of the [Docket No. 2002–CE–46–AD; Amendment recently notified FAA that an unsafe thrust reverser locking actuators. 39–13038; AD 2003–03–14] condition may exist on all Piaggio Parts Installation RIN 2120–AA64 Model P–180 airplanes. The ENAC reports an incident of a ground fire on (d) As of the effective date of this AD, no Airworthiness Directives; Piaggio Aero the left-hand engine nacelle of one of person may install a locking actuator having part number 1610000–11 or –13, on any Industries S.p.A. Model P–180 the affected airplanes. Investigation airplane. Airplanes revealed that the fire was caused by a cracked crossfeed valve that had leaked Alternative Methods of Compliance AGENCY: Federal Aviation fuel. (e) An alternative method of compliance or Administration, DOT. Further analysis led the ENAC to adjustment of the compliance time that ACTION: Final rule. determine that the part number (P/N) provides an acceptable level of safety may be EM484–3 valve was part of a used if approved by the Manager, SUMMARY: This amendment adopts a International Branch, ANM–116, FAA, manufacturing batch of nonconforming new airworthiness directive (AD) that valves. This batch incorporates serial Transport Airplane Directorate. Operators applies to all Piaggio Aero Industries shall submit their requests through an numbers 148 through 302 of these P/N appropriate FAA Principal Maintenance S.p.A. (Piaggio) Model P–180 airplanes. EM484–3 valves. These valves can be Inspector, who may add comments and then This AD requires you to inspect and utilized as either firewall shutoff or send it to the Manager, International Branch, determine whether any firewall shutoff crossfeed valves. ANM–116. or crossfeed valve with a serial number What is the potential impact if FAA Note 3: Information concerning the in a certain range is installed and took no action? If these valves are not existence of approved alternative methods of requires you to replace any valve that compliance with this AD, if any, may be removed from service, they could has a serial number within this range. develop cracks and leak fuel. This could obtained from the International Branch, This AD allows the pilot to check the ANM–116. result in an engine fire. logbook and does not require the Has FAA taken any action to this Special Flight Permits inspection and replacement requirement point? We issued a proposal to amend (f) Special flight permits may be issued in if the check shows that one of these part 39 of the Federal Aviation accordance with sections 21.197 and 21.199 valves is definitely not installed. This Regulations (14 CFR part 39) to include of the Federal Aviation Regulations (14 CFR AD is the result of mandatory an AD that would apply to all Piaggio 21.197 and 21.199) to operate the airplane to continuing airworthiness information Model P–180 airplanes. This proposal a location where the requirements of this AD (MCAI) issued by the airworthiness can be accomplished. was published in the Federal Register authority for Italy. The actions specified as a notice of proposed rulemaking Incorporation by Reference by this AD are intended to prevent a (NPRM) on November 13, 2002 (67 FR (g) Unless otherwise specified in this AD, faulty firewall shutoff or crossfeed valve 68782). The NPRM proposed to require the actions shall be done in accordance with from developing cracks and leaking fuel. you to inspect and determine whether Airbus Service Bulletin A330–54–3016, This could result in an engine fire. any firewall shutoff or crossfeed valve Revision 01, dated August 7, 2000; and DATES: This AD becomes effective on with a serial number in a certain range Airbus Service Bulletin A330–78–3011, March 8, 2003. dated December 14, 1999; as applicable. This is installed and would require you to incorporation by reference was approved by The Director of the Federal Register replace any valve that has a serial the Director of the Federal Register in approved the incorporation by reference number within this range. The NPRM accordance with 5 U.S.C. 552(a) and 1 CFR of certain publications listed in the would allow the pilot to check the part 51. Copies may be obtained from Airbus regulations as of March 8, 2003. logbook and would not require the Industrie, 1 Rond Point Maurice Bellonte, ADDRESSES: You may get the service inspection and replacement 31707 Blagnac Cedex, France. Copies may be information referenced in this AD from requirements if the check showed that inspected at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Piaggio Aero Industries S.p.A, Via one of these valves was definitely not Washington; or at the Office of the Federal Cibrario 4, 16154 Genoa, Italy; installed. Register, 800 North Capitol Street, NW., suite telephone: +39 010 6481 856; facsimile: Was the public invited to comment? 700, Washington, DC. +39 010 6481 374. You may view this The FAA encouraged interested persons

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to participate in the making of this public interest require the adoption of Cost Impact amendment. We did not receive any the rule as proposed except for minor comments on the proposed rule or on editorial corrections. We have How many airplanes does this AD our determination of the cost to the determined that these minor impact? We estimate that this AD affects public. corrections: 22 airplanes in the U.S. registry. FAA’s Determination • Provide the intent that was What is the cost impact of this AD on proposed in the NPRM for correcting the owners/operators of the affected What is FAA’s final determination on airplanes? We estimate the following this issue? After careful review of all unsafe condition; and costs to accomplish the inspection: available information related to the • Do not add any additional burden subject presented above, we have upon the public than was already determined that air safety and the proposed in the NPRM.

Total cost per Total cost on Labor cost Parts cost airplane U.S. operators

2 workhours × $60 per hour = $120 ...... Not applicable ...... $120 $2,640.

We estimate the following costs to accomplish the replacement/modification:

Total cost per Labor cost Parts cost airplane

8 workhours × $60 per hour = $480 ...... Manufacturer will provide free of charge ...... $480.

Compliance Time of this AD levels of government. Therefore, it is amends part 39 of the Federal Aviation What will be the compliance time of determined that this final rule does not Regulations (14 CFR part 39) as follows: have federalism implications under this AD? The inspection compliance PART 39—AIRWORTHINESS time of this AD is ‘‘within the next 30 Executive Order 13132. DIRECTIVES days after the effective date of the AD.’’ Does this AD involve a significant rule Why is the compliance time presented or regulatory action? For the reasons 1. The authority citation for part 39 in calendar time instead of hours time- discussed above, I certify that this continues to read as follows: in-service (TIS)? The compliance of this action (1) is not a ‘‘significant regulatory AD is presented in calendar time action’’ under Executive Order 12866; Authority: 49 U.S.C. 106(g), 40113, 44701. (2) is not a ‘‘significant rule’’ under DOT instead of hours TIS because the § 39.13 [Amended] affected shutoff and crossfeed valves are Regulatory Policies and Procedures (44 unsafe as a result of a quality control FR 11034, February 26, 1979); and (3) 2. FAA amends § 39.13 by adding a problem. The problem has the same will not have a significant economic new AD to read as follows: chance of existing on an airplane with impact, positive or negative, on a substantial number of small entities 2003–03–14 Piaggio Aero Industries S.p.A.: 50 hours TIS as it would for an airplane Amendment 39–13038; Docket No. with 1,000 hours TIS. Therefore, we under the criteria of the Regulatory 2002–CE–46–AD. Flexibility Act. A copy of the final believe that a compliance time of 30 (a) What airplanes are affected by this AD? days will: evaluation prepared for this action is This AD affects Model P–180 airplanes, all • Ensure that the unsafe condition contained in the Rules Docket. A copy serial numbers, that are certificated in any does not go undetected for a long period of it may be obtained by contacting the category. of time on the affected airplanes; and Rules Docket at the location provided (b) Who must comply with this AD? • Not inadvertently ground any of the under the caption ADDRESSES. Anyone who wishes to operate any of the affected airplanes. airplanes identified in paragraph (a) of this List of Subjects in 14 CFR Part 39 AD must comply with this AD. Regulatory Impact Air transportation, Aircraft, Aviation (c) What problem does this AD address? Does this AD impact various entities? safety, Incorporation by reference, The actions specified by this AD are intended The regulations adopted herein will not Safety. to prevent a faulty firewall shutoff or crossfeed valve from developing cracks and have a substantial direct effect on the Adoption of the Amendment leaking fuel. This could result in an engine States, on the relationship between the fire. national government and the States, or Accordingly, under the authority (d) What actions must I accomplish to on the distribution of power and delegated to me by the Administrator, address this problem? To address this responsibilities among the various the Federal Aviation Administration problem, you must accomplish the following:

Actions Compliance Procedures

(1) Maintenance Records Check:

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Actions Compliance Procedures

(i) Check the maintenance records to determine whether an Within the next 30 days after No special procedures required to Electro Mech part number (P/N) EM484–3 firewall shutoff or March 8, 2003 (the effective check the maintenance records. crossfeed valve with a serial number in the range of 148 date of this AD), unless already through 302 is installed. The owner/operator holding at least a accomplished. private pilot certificate as authorized by section 43.7 of the Fed- eral Aviation Regulations (14 CFR 43.7) may perform this check. (ii) If, by checking the maintenance records, the owner/operator can definitely show that no Electro Mech P/N EM484–3 firewall shutoff or crossfeed valves with a serial number in the range of 148 through 302 are installed, then the inspection requirement of paragraph (d)(2) and the replacement requirement of paragraph (d)(3) of this AD do not apply. You must make an entry into the aircraft records that shows compliance with these portions of the AD in accordance with section 43.9 of the Federal Aviation Regulations (14 CFR 43.9). (iii) If the pilot cannot definitely show that no affected firewall shutoff or crossfeed valves are installed through the maintenance records check, then the Inspection and Replacement requirements of paragraphs (d)(2) and (d)(3) of this AD must be accomplished by an appropriately-rated mechanic. (2) Inspection: Inspect all Electro Mech P/N EM484–3 firewall shutoff Within the next 30 days after In accordance with the Accom- and crossfeed valves to determine whether they incorporate a serial March 8, 2003 (the effective plishment Instructions in number in the range of 148 through 302. date of this AD), unless already PIAGGIO Aero Industries S.p.A. accomplished. Alert Service Bulletin: 80–0173, Original Issue: February 8, 2002. (3) Replacement: If any Electro Mech P/N EM484–3 firewall shutoff or Accomplish any necessary re- Replace in accordance with appli- crossfeed valve is found that incorporates a serial number in the placements or modifications cable maintenance manual. range of 148 through 302, accomplish one of the following:. prior to further flight after the in- Modify in accordance with the (i) Install valve(s) that does not (do not) incorporate a serial number in spection required by paragraph Accomplishment Instructions in the range of 148 through 302; or. (d)(2) of this AD, unless already Piaggio Aero Industries S.p.A. (ii) Modify any valve(s) that incorporates (incorporate) a serial number accomplished. Service Bulletin: 80–0174, Origi- in the range of 148 through 302. The valve will be re-identified with nal Issue: February 20, 2002. an ‘‘A’’ at the end of the serial number. (4) Spares: Do not install, on any airplane, any Electro Mech P/N As of March 8, 2003 (the effective Not applicable. EM484–3 firewall shutoff or crossfeed valve that incorporates a se- date of this AD). rial number in the range of 148 through 302, unless it has been modified as specified in paragraph (d)(3)(ii) of this AD.

(e) Can I comply with this AD in any other Directorate, 901 Locust, Room 301, Kansas Note 2: The subject of this AD is addressed way? You may use an alternative method of City, Missouri 64106; telephone: (816) 329– in Italian RAI-AD 2002–442, dated February compliance or adjust the compliance time if: 4059; facsimile: (816) 329–4090. 21, 2002. (1) Your alternative method of compliance (g) What if I need to fly the airplane to (i) When does this amendment become provides an equivalent level of safety; and another location to comply with this AD? The (2) The Manager, Standards Office, Small effective? This amendment becomes effective FAA can issue a special flight permit under Airplane Directorate, approves your on March 8, 2003. sections 21.197 and 21.199 of the Federal alternative. Submit your request through an Issued in Kansas City, Missouri, on January FAA Principal Maintenance Inspector, who Aviation Regulations (14 CFR 21.197 and 22, 2003. may add comments and then send it to the 21.199) to operate your airplane to a location Manager, Standards Office, Small Airplane where you can accomplish the requirements Michael Gallagher, Directorate. of this AD. Manager, Small Airplane Directorate, Aircraft Note 1: This AD applies to each airplane (h) Are any service bulletins incorporated Certification Service. identified in paragraph (a) of this AD, into this AD by reference? Actions required [FR Doc. 03–2149 Filed 2–4–03; 8:45 am] regardless of whether it has been modified, by this AD must be done in accordance with BILLING CODE 4910–13–P altered, or repaired in the area subject to the Piaggio Aero Industries S.p.A. Alert Service requirements of this AD. For airplanes that Bulletin: 80–0173, Original Issue: February 8, have been modified, altered, or repaired so 2002; and Piaggio Aero Industries S.p.A. that the performance of the requirements of Service Bulletin: 80–0174, Original Issue: this AD is affected, the owner/operator must February 20, 2002. The Director of the request approval for an alternative method of Federal Register approved this incorporation compliance in accordance with paragraph (e) by reference under 5 U.S.C. 552(a) and 1 CFR of this AD. The request should include an assessment of the effect of the modification, part 51. You may get copies from Piaggio alteration, or repair on the unsafe condition Aero Industries S.p.A, Via Cibrario 4, 16154 addressed by this AD; and, if you have not Genoa, Italy; telephone: +39 010 6481 856; eliminated the unsafe condition, specific facsimile: +39 010 6481 374. You may view actions you propose to address it. copies at the FAA, Central Region, Office of (f) Where can I get information about any the Regional Counsel, 901 Locust, Room 506, already-approved alternative methods of Kansas City, Missouri, or at the Office of the compliance? Contact Doug Rudolph, Federal Register, 800 North Capitol Street, Aerospace Engineer, FAA, Small Airplane NW., suite 700, Washington, DC.

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DEPARTMENT OF TRANSPORTATION Federal Register, 800 North Capitol certificated for operation in the United Street, NW., suite 700, Washington, DC. States. Federal Aviation Administration FOR FURTHER INFORMATION CONTACT: FAA’s Determination of an Unsafe 14 CFR Part 39 Antonio Cancelliere, Aerospace Condition and Required Actions Engineer, Engine Certification Office, Since an unsafe condition has been [Docket No. 2002–NE–45–AD; Amendment FAA, Engine and Propeller Directorate, identified that is likely to exist or 39–13046; AD 2003–03–21] 12 New England Executive Park, develop on other Pratt & Whitney Burlington, MA 01803–5299; telephone Canada PW530A, PW535A, and RIN 2120–AA64 (781) 238–7751; fax (781) 238–7199. PW545A turbofan engines of the same Airworthiness Directives; Pratt & SUPPLEMENTARY INFORMATION: Transport type design, this AD is being issued to Whitney Canada PW500 Series Canada, which is the airworthiness prevent a fire in the engine nacelle. This Turbofan Engines authority for Canada, recently notified AD requires the following within 50 the FAA that an unsafe condition may flight hours, but no later than 60 days AGENCY: Federal Aviation exist on PWC PW530A, PW535A, and after the effective date of this AD, Administration, DOT. PW545A turbofan engines. Transport whichever occurs first: • ACTION: Final rule; request for Canada has advised the FAA that there Replacement of flexible fuel tubes comments. have been five reports of fuel dripping P/N’s 30J2285–01 (PW530A engines), from the engine nacelle. It was found 3054416–01 (PW535A engines), and SUMMARY: This amendment adopts a that the dripping fuel was the result of 30J2323–01 (PW545A engines) with new airworthiness directive (AD) that is leaking flexible fuel tubes. Transport flexible fuel tubes P/N’s 30J2578–01, applicable to Pratt & Whitney Canada Canada advises that certain P/N’s of the 3058704–01, and 30J2579–01 (PWC) PW500 series turbofan engines. flexible fuel tube, located between the respectively; or This action requires a one-time visual fuel/oil heat exchanger and the integral • A one-time visual external and inspection and re-marking, or in lieu of fuel control unit-fuel pump, may leak internal inspection of flexible fuel tubes inspection, replacement of certain part due to possible manufacturing defects in P/N’s 30J2285–01, 3054416–01, and numbers (P/N’s) of the flexible fuel tube the tube. 30J2323–01; and located between the fuel/oil heat • Part number re-marking of flexible exchanger and the integral fuel control Manufacturer’s Service Information fuel tubes that pass inspection. The unit-fuel pump. This amendment is PWC has issued Service Bulletin (SB) actions must be done in accordance prompted by reports of fuel found PW500–72–30217, Revision 1, dated with the service bulletin described dripping from engine nacelles caused by July 29, 2002, that specifies procedures previously. leaking flexible fuel tubes. The actions for performing a one-time visual Immediate Adoption of This AD specified in this AD are intended to inspection of flexible fuel tubes P/N’s prevent a fire in the engine nacelle. Since a situation exists that requires 30J2285–01 (PW530A engines), the immediate adoption of this DATES: Effective February 20, 2003. The 3054416–01 (PW535A engines), and regulation, it is found that notice and incorporation by reference of certain 30J2323–01 (PW545A engines). The opportunity for prior public comment publications listed in the rule is tubes must be inspected externally for hereon are impracticable, and that good approved by the Director of the Federal leaks, local swelling, sponginess of the cause exists for making this amendment Register as of February 20, 2003. red silicone rubber, gashes, gouges, and effective in less than 30 days. Comments for inclusion in the Rules tears, and internally for kinks, gouging, Docket must be received on or before or loose material in the tube bore. Tubes Comments Invited April 7, 2003. that pass inspection are then re-marked Although this action is in the form of ADDRESSES: Submit comments in with a new P/N. In lieu of the tube a final rule that involves requirements triplicate to the Federal Aviation inspection, the SB also allows for affecting flight safety and, thus, was not Administration (FAA), New England replacement of the flexible fuel tube preceded by notice and an opportunity Region, Office of the Regional Counsel, with a different P/N tube. Transport for public comment, comments are Attention: Rules Docket No. 2002–NE– Canada issued AD CF–2002–42, dated invited on this rule. Interested persons 45–AD, 12 New England Executive Park, September 30, 2002, in order to assure are invited to comment on this rule by Burlington, MA 01803–5299. Comments the airworthiness of these PWC PW500 submitting such written data, views, or may be inspected at this location, by series turbofan engines in Canada. arguments as they may desire. appointment, between 8 a.m. and 4:30 Bilateral Airworthiness Agreement Communications should identify the p.m., Monday through Friday, except Rules Docket number and be submitted Federal holidays. Comments may also This engine model is manufactured in in triplicate to the address specified be sent via the Internet using the Canada and is type certificated for under the caption ADDRESSES. All following address: 9-ane- operation in the United States under the communications received on or before [email protected]. Comments sent provisions of section 21.29 of the the closing date for comments will be via the Internet must contain the docket Federal Aviation Regulations (14 CFR considered, and this rule may be number in the subject line. 21.29) and the applicable bilateral amended in light of the comments The service information referenced in airworthiness agreement. Pursuant to received. Factual information that this AD may be obtained from Pratt & this bilateral airworthiness agreement, supports the commenter’s ideas and Whitney Canada, 1000 Marie-Victorin, Transport Canada has kept the FAA suggestions is extremely helpful in Longueuil, Quebec, Canada J4G1A1. informed of the situation described evaluating the effectiveness of the AD This information may be examined, by above. The FAA has examined the action and determining whether appointment, at the FAA, New England findings of Transport Canada, reviewed additional rulemaking action would be Region, Office of the Regional Counsel, all available information, and needed. 12 New England Executive Park, determined that AD action is necessary Comments are specifically invited on Burlington, MA; or at the Office of the for products of this type design that are the overall regulatory, economic,

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environmental, and energy aspects of PART 39—AIRWORTHINESS Note 2: Information concerning the the rule that might suggest a need to DIRECTIVES existence of approved alternative methods of modify the rule. All comments compliance with this airworthiness directive, 1. The authority citation for part 39 if any, may be obtained from the Engine submitted will be available, both before continues to read as follows: Certification Office. and after the closing date for comments, in the Rules Docket for examination by Authority: 49 U.S.C. 106(g), 40113, 44701. Special Flight Permits interested persons. A report that § 39.13 [Amended] (d) Special flight permits may be issued in summarizes each FAA-public contact accordance with §§ 21.197 and 21.199 of the concerned with the substance of this AD 2. Section 39.13 is amended by Federal Aviation Regulations (14 CFR 21.197 will be filed in the Rules Docket. adding the following new airworthiness and 21.199) to operate the airplane to a directive: location where the requirements of this AD Commenters wishing the FAA to 2003–03–21 Pratt & Whitney Canada: can be done. acknowledge receipt of their comments Amendment 39–13046. Docket No. submitted in response to this action Documents That Have Been Incorporated by 2002–NE–45–AD. Reference must submit a self-addressed, stamped Applicability: This airworthiness directive postcard on which the following (e) The tube inspection or replacement (AD) is applicable to Pratt & Whitney Canada must be done in accordance with Pratt & statement is made: ‘‘Comments to (PWC) PW530A, PW535A, and PW545A Whitney Canada Service Bulletin PW500– Docket Number 2002–NE–45–AD.’’ The turbofan engines with flexible fuel tubes part 72–30217, Revision 1, dated July 29, 2002. postcard will be date stamped and numbers (P/N’s) 30J2285–01, 3054416–01, This incorporation by reference was returned to the commenter. and 30J2323–01 installed. These engines are approved by the Director of the Federal installed on, but not limited to Cessna Register in accordance with 5 U.S.C. 552(a) Regulatory Analysis Citation model 550 ‘‘Bravo’’, model 560XL and 1 CFR part 51. Copies may be obtained ‘‘Excel’’, and model 560 ‘‘Encore’’ airplanes. from Pratt & Whitney Canada, 1000 Marie- This final rule does not have Note 1: This AD applies to each engine Victorin, Longueuil, Quebec, Canada J4G1A1. federalism implications, as defined in identified in the preceding applicability Copies may be inspected at the FAA, New Executive Order 13132, because it provision, regardless of whether it has been England Region, Office of the Regional would not have a substantial direct modified, altered, or repaired in the area Counsel, 12 New England Executive Park, subject to the requirements of this AD. For Burlington, MA; or at the Office of the effect on the States, on the relationship engines that have been modified, altered, or between the national government and Federal Register, 800 North Capitol Street, repaired so that the performance of the NW., suite 700, Washington, DC. the States, or on the distribution of requirements of this AD is affected, the Note 3: The subject of this AD is addressed power and responsibilities among the owner/operator must request approval for an alternative method of compliance in in Transport Canada airworthiness directive various levels of government. CF–2002–42, dated September 30, 2002. Accordingly, the FAA has not consulted accordance with paragraph (c) of this AD. with state authorities prior to The request should include an assessment of Effective Date the effect of the modification, alteration, or publication of this final rule. repair on the unsafe condition addressed by (f) This amendment becomes effective on The FAA has determined that this this AD; and, if the unsafe condition has not February 20, 2003. regulation is an emergency regulation been eliminated, the request should include specific proposed actions to address it. Issued in Burlington, Massachusetts, on that must be issued immediately to January 29, 2003. Compliance: Compliance with this AD is correct an unsafe condition in aircraft, Jay J. Pardee, and is not a ‘‘significant regulatory required within 50 flight hours, but no later than 60 days after the effective date of this Manager, Engine and Propeller Directorate, action’’ under Executive Order 12866. It AD, whichever occurs first, unless already Aircraft Certification Service. has been determined further that this done. [FR Doc. 03–2632 Filed 2–4–03; 8:45 am] action involves an emergency regulation To prevent a fire in the engine nacelle, do BILLING CODE 4910–13–P under DOT Regulatory Policies and the following: Procedures (44 FR 11034, February 26, (a) Replace flexible fuel tubes P/N’s 1979). If it is determined that this 30J2285–01 (PW530A engines), 3054416–01 DEPARTMENT OF TRANSPORTATION emergency regulation otherwise would (PW535A engines), and 30J2323–01 (PW545A engines) with flexible fuel tubes P/ Federal Aviation Administration be significant under DOT Regulatory N’s 30J2578–01, 3058704–01, and 30J2579– Policies and Procedures, a final 01 respectively; or regulatory evaluation will be prepared (b) Perform a one-time visual external and 14 CFR Part 39 and placed in the Rules Docket. A copy internal inspection of flexible fuel tubes P/ [Docket No. 2002–NM–240–AD; Amendment of it, if filed, may be obtained from the N’s 30J2285–01 (PW530A engines), 3054416– 39–13047; AD 2003–03–22] Rules Docket at the location provided 01 (PW535A engines), and 30J2323–01 RIN 2120–AA64 under the caption ADDRESSES. (PW545A engines), and fuel tube part number re-marking, in accordance with List of Subjects in 14 CFR Part 39 paragraphs 3.A.(1) through 3.A.(8) of the Airworthiness Directives; Boeing Accomplishment Instructions of PWC SB Model 737–600, –700, –700C, –800, and Air transportation, Aircraft, Aviation PW500–72–30217, Revision 1, dated July 29, –900 Series Airplanes safety, Incorporation by reference, 2002. Safety. AGENCY: Federal Aviation Alternative Methods of Compliance Administration, DOT. (c) An alternative method of compliance or Adoption of the Amendment ACTION: Final rule. adjustment of the compliance time that provides an acceptable level of safety may be Accordingly, pursuant to the SUMMARY: This amendment adopts a authority delegated to me by the used if approved by the Manager, Engine Certification Office. Operators must submit new airworthiness directive (AD), Administrator, the Federal Aviation their requests through an appropriate FAA applicable to certain Boeing Model 737– Administration amends part 39 of the Principal Maintenance Inspector, who may 600, –700, –700C, –800, and –900 series Federal Aviation Regulations (14 CFR add comments and then send it to the airplanes, that requires installing part 39) as follows: Manager, Engine Certification Office. speedbrake limitation placards in the

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flight compartment, and revising the commenters state that they have no Model 737–900 series airplanes in- Limitations Section of the Airplane comments on the proposed AD. service. The intent of the Discussion Flight Manual to ensure the flightcrew section is to provide the background Request To Clarify Certain Language in is advised not to extend the speedbrake and events that prompted the proposed Paragraph (a)(2) lever beyond the flight detent. For AD, and to specify that vibrations did certain airplanes, this AD requires One commenter asks that certain occur on Model 737–600, –700, –700C, modifying the elevator and elevator tab language, as specified in paragraph and –800 series airplanes in-service. assembly. This action is necessary to (a)(2) of the proposed AD, be clarified. We acknowledge that the term ‘‘lack prevent severe vibration of the elevator The commenter notes that the current of torsional rigidity’’ is a valid term and and elevator tab assembly, which could language, which is to be included in the could be used to describe a design result in severe damage to the horizontal AFM, states the following: ‘‘Do not deficiency that also contributes to stabilizer followed by possible loss of extend the speedbrake lever beyond the excessive in-flight vibration. However, the elevator tab and consequent loss of flight detent in flight.’’ That statement, the terms ‘‘LCO’’ and ‘‘LCF’’ are not controllability of the airplane. This as written, does not match the language commonly used terms in the airline action is intended to address the specified in the existing AFM. The industry; these terms are used primarily identified unsafe condition. language should be changed, for by airplane manufacturers. We have clarification, to match the AFM DATES: Effective March 12, 2003. concluded that the term ‘‘high The incorporation by reference of language and should state: ‘‘In flight, do amplitude oscillations of the elevator certain publications listed in the not extend the speedbrake lever beyond tab’’ best describes the condition in a regulations is approved by the Director the FLIGHT detent.’’ manner understood by the airline The FAA agrees with the commenter of the Federal Register as of March 12, industry. in that the language used in paragraph 2003. Since the Discussion section of a (a)(2) of the AD should be clarified to proposed AD is not restated in a final ADDRESSES: The service information match the AFM language. We have referenced in this AD may be obtained rule, no change to this final rule is changed paragraph (a)(2) of this final necessary to address the issues raised by from Boeing Commercial Airplane rule accordingly. Group, P.O. Box 3707, Seattle, the commenters. Washington 98124–2207. This Request To Change Discussion Section Conclusion information may be examined at the The same commenter asks that the After careful review of the available Federal Aviation Administration (FAA), Discussion section of the proposed AD data, including the comments noted Transport Airplane Directorate, Rules be changed to remove the reference to above, the FAA has determined that air Docket, 1601 Lind Avenue, SW., Boeing Model 737–900 series airplanes safety and the public interest require the Renton, Washington; or at the Office of from the first sentence. That sentence adoption of the rule with the change the Federal Register, 800 North Capitol states, ‘‘The FAA has received several previously described. The FAA has Street, NW., suite 700, Washington, DC. reports of excessive in-flight vibrations determined that this change will neither FOR FURTHER INFORMATION CONTACT: of the elevator and elevator tab on increase the economic burden on any Nancy H. Marsh, Aerospace Engineer, certain Boeing Model 737–600, –700, operator nor increase the scope of the Airframe Branch, ANM–120S, FAA, –700C, –800, and –900 series airplanes.’’ AD. Seattle Aircraft Certification Office, The commenter notes that no excessive 1601 Lind Avenue, SW., Renton, in-flight vibrations of the elevator and Cost Impact Washington 98055–4056; telephone elevator tab have occurred on Model There are approximately 1,174 (425) 917–6440; fax (425) 917–6590. 737–900 series airplanes. airplanes of the affected design in the SUPPLEMENTARY INFORMATION: A The same commenter asks that certain worldwide fleet. We estimate that 550 proposal to amend part 39 of the Federal terminology in the Discussion section of airplanes of U.S. registry will be affected Aviation Regulations (14 CFR part 39) to the proposed AD be changed. That by this AD. include an airworthiness directive (AD) section reads, in part, ‘‘[t]he elevator It will take approximately 1 work that is applicable to certain Boeing and elevator tab are susceptible to hour per airplane to accomplish the Model 737–600, –700, –700C, –800, and excessive vibration and, under certain required placard installation, at an –900 series airplanes was published in conditions, limit-cycle flutter. These average labor rate of $60 per work hour. the Federal Register on November 15, vibration events have been attributed to Based on these figures, the cost impact 2002 (67 FR 69157). That action loose or missing components, excessive of the required installation on U.S. proposed to require installing wear, or excessive freeplay of the tab.’’ operators is estimated to be $33,000, or speedbrake limitation placards in the The commenter requests that it be $60 per airplane. flight compartment, and revising the changed to, ‘‘[t]he elevator and elevator It will take approximately 1 work Limitations Section of the Airplane tab are susceptible to excessive hour per airplane to accomplish the Flight Manual (AFM) to ensure the vibration and, under certain conditions, required AFM revision, at an average flightcrew is advised not to extend the limit-cycle oscillation (LCO). These labor rate of $60 per work hour. Based speedbrake lever beyond the flight vibration events have been attributed to on these figures, the cost impact of the detent. For certain airplanes, that action lack of torsional rigidity (in the case of required revision on U.S. operators is also proposed to require modifying the LCO); or missing components, excessive estimated to be $33,000, or $60 per elevator and elevator tab assembly. wear, or excessive freeplay of the tab.’’ airplane. The commenter states that LCO is the It will take approximately 88 work Comments accepted and proper term to use when hours per airplane to accomplish the Interested persons have been afforded referring to the severe vibrations required modification of the elevator an opportunity to participate in the associated with lack of torsional and elevator tab assembly, at an average making of this amendment. Due stiffness. labor rate of $60 per work hour. The consideration has been given to the We acknowledge that no excessive in- FAA has been advised by Boeing that comments received. One commenter flight vibrations of the elevator and the manufacturer will provide parts for concurs with the proposed AD. Two elevator tab have been reported on the elevator/tab retrofit, including

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shipping, at no cost to operators. The PART 39—AIRWORTHINESS (including installation of a new clevis fitting manufacturer will have operators DIRECTIVES and a new tab mechanism on the horizontal ‘‘exchange’’ their existing parts for new stabilizer and, for certain airplanes, examination of the hinge plates on the parts to support the retrofit program. 1. The authority citation for part 39 continues to read as follows: stabilizer trailing edge to make sure the Based on this information, the cost specified hinges are installed; changes to the impact of the required modification on Authority: 49 U.S.C. 106(g), 40113, 44701. seals in the balance bays; and installation of U.S. operators is estimated to be new elevators and tab assemblies, followed § 39.13 [Amended] $2,904,000, or $5,280 per airplane. by adjustments and tests of the new 2. Section 39.13 is amended by installation), per the Accomplishment The cost impact figures discussed adding the following new airworthiness Instructions of Boeing Alert Service Bulletin above are based on assumptions that no directive: 737–55A1080, dated September 19, 2002. operator has yet accomplished any of (c) Accomplishment of the modification the requirements of this AD action, and 2003–03–22 Boeing: Amendment 39–13047. required by paragraph (b) of this AD that no operator would accomplish Docket 2002–NM–240–AD. terminates the actions required by the ADs those actions in the future if this AD Applicability: Model 737–600, –700, specified in the following table: –700C, –800, and –900 series airplanes; line were not adopted. The cost impact numbers 1 through 1174 inclusive; AD Number Amendment Number figures discussed in AD rulemaking certificated in any category. actions represent only the time Note 1: This AD applies to each airplane AD 99–15–09 ...... 39–11229 necessary to perform the specific actions identified in the preceding applicability AD 99–18–01 ...... 39–11267 actually required by the AD. These provision, regardless of whether it has been AD 2001–08–09 ...... 39–12186 figures typically do not include modified, altered, or repaired in the area AD 2001–09–51 ...... 39–12251 incidental costs, such as the time subject to the requirements of this AD. For AD 2001–12–51 ...... 39–12294 required to gain access and close up, airplanes that have been modified, altered, or AD 2001–14–05 ...... 39–12315 repaired so that the performance of the AD 2002–08–20 ...... 39–12732 planning time, or time necessitated by AD 2002–08–52 ...... 39–12727 other administrative actions. requirements of this AD is affected, the owner/operator must request approval for an Regulatory Impact alternative method of compliance in Operator’s Equivalent Procedure accordance with paragraph (e) of this AD. (d) If the Accomplishment Instructions of The regulations adopted herein will The request should include an assessment of Boeing Alert Service Bulletin 737–55A1080, not have a substantial direct effect on the effect of the modification, alteration, or dated September 19, 2002, specify that the the States, on the relationship between repair on the unsafe condition addressed by actions may be accomplished in accordance the national Government and the States, this AD; and, if the unsafe condition has not with an operator’s ‘‘equivalent procedure:’’ been eliminated, the request should include The actions must be accomplished per the or on the distribution of power and specific proposed actions to address it. responsibilities among the various applicable chapter of the Boeing 737 Compliance: Required as indicated, unless Airplane Maintenance Manual specified in levels of government. Therefore, it is accomplished previously. the alert service bulletin. determined that this final rule does not To prevent severe vibration of the elevator Alternative Methods of Compliance have federalism implications under and elevator tab assembly, which could Executive Order 13132. result in severe damage to the horizontal (e) An alternative method of compliance or adjustment of the compliance time that For the reasons discussed above, I stabilizer followed by possible loss of the elevator tab and consequent loss of provides an acceptable level of safety may be certify that this action (1) is not a controllability of the airplane, accomplish used if approved by the Manager, Seattle ‘‘significant regulatory action’’ under the following: Aircraft Certification Office (ACO), FAA. Executive Order 12866; (2) is not a Operators shall submit their requests through ‘‘significant rule’’ under DOT Airplane Flight Manual (AFM) Revision/ an appropriate FAA Principal Maintenance Placard Installation Regulatory Policies and Procedures (44 Inspector, who may add comments and then FR 11034, February 26, 1979); and (3) (a) For Model 737–600, –700, –700C, –800, send it to the Manager, Seattle ACO. will not have a significant economic and –900 series airplanes having line Note 2: Information concerning the numbers 1 through 1043 inclusive: Within 90 impact, positive or negative, on a existence of approved alternative methods of days after the effective date of this AD, do the compliance with this AD, if any, may be substantial number of small entities actions specified in paragraphs (a)(1) and obtained from the Seattle ACO. under the criteria of the Regulatory (a)(2) of this AD. Flexibility Act. A final evaluation has (1) Install a speedbrake limitation placard Special Flight Permit been prepared for this action and it is on the P1–1 and P3–3 panel assemblies per (f) Special flight permits may be issued in contained in the Rules Docket. A copy Figure 1 or Figure 2, as applicable, of accordance with sections 21.197 and 21.199 of it may be obtained from the Rules paragraph 3.B., ‘‘Work Instructions,’’ of the of the Federal Aviation Regulations (14 CFR Docket at the location provided under Accomplishment Instructions of Boeing Alert 21.197 and 21.199) to operate the airplane to Service Bulletin 737–11A1109, dated March the caption ADDRESSES. a location where the requirements of this AD 28, 2002. can be accomplished. List of Subjects in 14 CFR Part 39 (2) Revise the Limitations Section of the FAA-approved AFM to include the following Incorporation by Reference Air transportation, Aircraft, Aviation statement (this may be accomplished by (g) Unless otherwise specified in this AD, safety, Incorporation by reference, inserting a copy of this AD in the AFM): ‘‘In the actions shall be done in accordance with Safety. flight, do not extend the speedbrake lever Boeing Alert Service Bulletin 737–11A1109, beyond the FLIGHT detent.’’ dated March 28, 2002; and Boeing Alert Adoption of the Amendment Service Bulletin 737–55A1080, dated Modification September 19, 2002; as applicable. This Accordingly, pursuant to the (b) For Model 737–600, –700, –700C, and incorporation by reference was approved by –800 series airplanes having line numbers 1 the Director of the FEDERAL REGISTER in authority delegated to me by the through 1174 inclusive: Before the accordance with 5 U.S.C. 552(a) and 1 CFR Administrator, the Federal Aviation accumulation of 18,000 total flight cycles, or part 51. Copies may be obtained from Boeing Administration amends part 39 of the within 2 years after the effective date of this Commercial Airplane Group, P.O. Box 3707, Federal Aviation Regulations (14 CFR AD, whichever occurs first, modify the Seattle, Washington 98124–2207. Copies may part 39) as follows: elevator and elevator tab assemblies be inspected at the FAA, Transport Airplane

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Directorate, 1601 Lind Avenue, SW., Renton, correct any mis-rigged elevator control The Raytheon Beech Models 1900 and Washington; or at the Office of the Federal system, which could lead to insufficient 1900C airplanes incorporate the same Register, 800 North Capitol Street, NW., suite elevator control authority and loss of elevator control system design and are 700, Washington, DC. control of the airplane. affected by this condition. Effective Date DATES: The AD becomes effective In certain loading conditions, a mis- (h) This amendment becomes effective on February 5, 2003, to all affected persons rigged elevator control system, if not March 12, 2003. who did not receive emergency AD detected and corrected, could lead to 2003–03–18, issued January 27, 2003. insufficient elevator control authority Issued in Renton, Washington, on January and loss of control of the airplane. 29, 2003. Emergency AD 2003–03–18 contained the requirements of this amendment and Raytheon has not issued service Ali Bahrami, became effective immediately upon information regarding this subject. Acting Manager, Transport Airplane receipt and required the actions 4 days Rigging procedures are included in the Directorate, Aircraft Certification Service. after issuance (January 31, 2003). applicable Raytheon 1900/1900C or [FR Doc. 03–2496 Filed 2–4–03; 8:45 am] The Federal Aviation Administration 1900D maintenance manual. BILLING CODE 4910–13–P (FAA) must receive any comments on On January 27, 2003, FAA issued this rule on or before March 7, 2003. emergency AD 2003–03–18 to require ADDRESSES: Submit comments to FAA, you to: DEPARTMENT OF TRANSPORTATION Central Region, Office of the Regional —Perform control column sweep and Federal Aviation Administration Counsel, Attention: Rules Docket No. stop bolt inspections to verify full 2003–CE–07–AD, 901 Locust, Room elevator travel to the primary up and 14 CFR Part 39 506, Kansas City, Missouri 64106. You down stops and to verify that the stop may view any comments at this location bolt length is not excessive; [Docket No. 2003–CE–07–AD; Amendment between 8 a.m. and 4 p.m., Monday —If the airplane does not pass the 39–13043; AD 2003–03–18] through Friday, except Federal holidays. initial control column sweep and stop RIN 2120–AA64 You may also send comments bolt inspections, re-rig and/or do a more electronically to the following address: detailed inspection of the elevator Airworthiness Directives; Raytheon [email protected]. Comments control system; Aircraft Company Beech Models 1900, sent electronically must contain —If the airplane does pass the initial 1900C, and 1900D Airplanes ‘‘Docket No. 2003–CE–07–AD’’ in the control column sweep and stop bolt subject line. If you send comments length inspections, do a more detailed AGENCY: Federal Aviation electronically as attached electronic inspection within 100 hours time-in- Administration, DOT. files, the files must be formatted in service (TIS); and ACTION: Final rule; request for Microsoft Word 97 for Windows or —Report the results of the initial comments. ASCII text. inspection and the 100-hour TIS You may view information related to SUMMARY: This amendment adopts a inspection (if applicable). this AD at FAA, Central Region, Office new airworthiness directive (AD) that Why Is it Important to Publish This AD? applies to all Raytheon Aircraft of the Regional Counsel, Attention: Company (Raytheon) Beech Models Rules Docket No. 2003–CE–07–AD, 901 The FAA found that immediate Locust, Room 506, Kansas City, 1900, 1900C, and 1900D airplanes. This corrective action was required, that Missouri 64106; or at the Office of the AD requires you to perform control notice and opportunity for prior public Federal Register, 800 North Capitol column sweep and stop bolt inspections comment were impracticable and Street, NW., suite 700, Washington, DC. to verify full elevator travel to the contrary to the public interest, and that primary up and down stops and that the FOR FURTHER INFORMATION CONTACT: Paul good cause existed to make the AD stop bolt length is not excessive, re-rig DeVore, Aerospace Engineer, FAA, effective immediately by individual the elevator control system if the Wichita Aircraft Certification Office, letters issued on January 27, 2003, to all airplane does not pass the control 1801 Airport Road, Room 100, Mid- known U.S. operators of Raytheon column sweep and stop inspections, Continent Airport, Wichita, Kansas Beech Models 1900, 1900C, and 1900D and do a more detailed inspection at a 67209; telephone: (316) 946–4142; airplanes. These conditions still exist, later time if the airplane does pass the facsimile: (316) 946–4407. and the AD is published in the Federal inspection. This AD also requires you to SUPPLEMENTARY INFORMATION: Register as an amendment to section 39.13 of the Federal Aviation report the results of certain inspections. Discussion This AD is the result of recent ground Regulations (14 CFR 39.13) to make it testing and a review of the rigging What Has Happened so Far? effective to all persons. procedures of a Raytheon Beech Model Recent ground testing and a review of Comments Invited 1900D airplane, which reveals that the the rigging procedures of a Raytheon elevator control system could be mis- Beech Model 1900D airplane reveals How Do I Comment on This AD? rigged to restrict elevator travel if that the elevator control system could be Although this action is in the form of current maintenance procedures are not mis-rigged to restrict elevator travel if a final rule and was not preceded by properly followed. In these instances, it current maintenance procedures are not notice and opportunity for public may appear to the crew that they have properly followed. In these instances, it comment, FAA invites your comments full elevator control column movement. may appear to the crew that they have on the rule. You may submit whatever However, the elevator may not have full full elevator control column movement. written data, views, or arguments you travel. Such restricted travel may However, the elevator may not have full choose. You need to include the rule’s remain undetected until the airplane is travel. Such restricted travel may docket number and submit your operated in a loading condition that remain undetected until the airplane is comments to the address specified requires full elevator authority to operated in a loading condition that under the caption ADDRESSES. We will control the pitch. The actions specified requires full elevator authority to consider all comments received on or by this AD are intended to detect and control the pitch. before the closing date specified above.

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We may amend this rule in light of Government and the States, or on the the Federal Aviation Administration comments received. Factual information distribution of power and amends part 39 of the Federal Aviation that supports your ideas and suggestions responsibilities among the various Regulations (14 CFR part 39) as follows: is extremely helpful in evaluating the levels of government. Therefore, FAA effectiveness of the AD action and has determined that this final rule does PART 39—AIRWORTHINESS determining whether we need to take not have federalism implications under DIRECTIVES additional rulemaking action. Executive Order 13132. 1. The authority citation for part 39 Are There any Specific Portions of the Does This AD Involve a Significant Rule continues to read as follows: AD I Should pay Attention to? or Regulatory Action? Authority: 49 U.S.C. 106(g), 40113, 44701. We specifically invite comments on We have determined that this the overall regulatory, economic, regulation is an emergency regulation § 39.13 [Amended] environmental, and energy aspects of that must be issued immediately to the rule that might suggest a need to correct an unsafe condition in aircraft, 2. FAA amends § 39.13 by adding a modify the rule. You may view all and is not a significant regulatory action new airworthiness directive (AD) to comments we receive before and after under Executive Order 12866. It has read as follows: the closing date of the rule in the Rules been determined further that this action 2003–03–18 Raytheon Aircraft Company: Docket. We will file a report in the involves an emergency regulation under Rules Docket that summarizes each FAA Amendment 39–13043; Docket No. DOT Regulatory Policies and Procedures 2003–CE–07–AD. contact with the public that concerns (44 FR 11034, February 26, 1979). If it (a) What airplanes are affected by this AD? the substantive parts of this AD. is determined that this emergency This AD applies to Beech Models 1900, regulation otherwise would be How Can I Be Sure FAA Receives my 1900C, and 1900D airplanes, all serial significant under DOT Regulatory Comment? numbers, that are certificated in any category. Policies and Procedures, a final (b) Who must comply with this AD? If you want us to acknowledge the regulatory evaluation will be prepared receipt of your written comments, you Anyone who operates any of the airplanes and placed in the Rules Docket identified in paragraph (a) of this AD must must include a self-addressed, stamped (otherwise, an evaluation is not postcard. On the postcard, write comply with this AD. required). A copy of it, if filed, may be (c) What problem does this AD address? ‘‘Comments to Docket No. 2003–CE–07– obtained from the Rules Docket. AD.’’ We will date stamp and mail the The actions specified by this AD are intended postcard back to you. List of Subjects in 14 CFR Part 39 to detect and correct any mis-rigged elevator control system, which could lead to Air transportation, Aircraft, Aviation Regulatory Impact insufficient elevator control authority and safety, Safety. Does This AD Impact Various Entities? loss of control of the airplane. Adoption of the Amendment (d) What must I do to address this These regulations will not have a problem? To address this problem, you must substantial direct effect on the States, on Accordingly, under the authority accomplish the following actions: the relationship between the national delegated to me by the Administrator,

Actions Compliance Procedures

(1) Perform a control column sweep inspection Initially inspect within 4 days after February 5, In accordance with the applicable Raytheon to verify full elevator travel to the primary up 2003 (the effective date of this AD), except Aircraft Company 1900/1900C or 1900D and down stops. Accomplish this inspection that this action was required no later than maintenance manual. using the following procedures: January 31, 2003, for those who received (i) Remove the aft fairing from the vertical sta- emergency AD 2003–03–18. If necessary, bilizer to gain visual access to surface stop accomplish the travel board inspection prior bolts on the elevator control horn support to further flight after the inspection required using the applicable Raytheon Aircraft Com- by paragraph (d)(1)(iii)(B) of this AC. pany 1900/1900C or 1900D maintenance manual. (ii) Have another appropriately-rated maintenance person perform a full pitch-down to full pitch-up control column sweep. Visually ensure that the elevator control horns contact the surface stop bolts for both the full pitch- down and full pitch-up control column positions. (iii) Measure the length of both elevator down stop bolts from the crown of the bolt head to the face of the elevator lower stop bolt support. (A) If the dimension of each stop bolt is equal to or less than 1.00 inch, the bolts are acceptable for the purposes of this inspection. (B) If the dimension of either stop bolt is greater than 1.00 inch, accomplish (prior to further flight) the travel board inspection procedures as specified in paragraph (d)(3)(i) of this AD. If it passes the procedure specified in paragraph (d)(3)(i), the bolt is acceptable even though it exceeds 1.00 inch.

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Actions Compliance Procedures

(2) If the airplane does not pass the control col- Prior to further flight after the applicable in- In accordance with the applicable Raytheon umn sweep inspection or bolt length require- spection required by paragraphs (d)(1), Aircraft Company 1900/1900C or 1900D ments of paragraphs (d)(1)(ii), (d)(1)(iii), or (d)(3), and (d)(4) of this AD. maintenance manual. (d)(3)(i) of this AD. (i) Accomplish the elevator control system rigging procedure in accordance with the applicable Raytheon Aircraft Company 1900/ 1900C or 1900D maintenance manual. Do not reinstall the aft fairing because access to the surface stop bolts is still necessary; (ii) Perform a control column sweep inspection by accomplishing the actions in paragraphs (d)(1)(ii), (d)(3)(i), and (d)(3)(ii) of this AD. These actions are also referenced in paragraph (d)(4) of this AD; and (iii) When the airplane passes the requirements of the above inspection, replace the aft fairing. (3) If the airplane passes the inspection of Replace the aft fairing prior to further flight In accordance with the applicable Raytheon paragraph (d)(1) of this AD, replace (prior to after the applicable inspection required by Aircraft Company 1900/1900C or 1900D further flight) the aft fairing; and accomplish paragraphs (d)(1), (d)(3), and (d)(4) of this maintenance manual. (d)(3)(i) of this AD within 100 hours TIS and AD. Unless accomplished per paragraph any necessary actions prior to further flight (d)(1)(iii)(B) of this AD, accomplish the trav- after that as specified in paragraphs (d)(3)(ii) el board inspection within 100 hours TIS of this AD: after the initial inspection required by para- (i) Utilizing elevator travel boards, inspect to en- graph (d)(1) of this AD. Accomplish any sure that the surface stops on the control necessary re-rigging prior to further flight horn support allow the following: after the inspection required by this AD. (A) Up elevator travel of 20 degrees, +1 degree ¥0 degree; and (B) Down elevator travel of 14 degrees, +1 degree ¥0 degree. (ii) If the airplane does not pass the inspection required by paragraph (d)(3)(i) of this AD, accomplish (prior to further flight) the elevator control system rigging procedures as specified in paragraphs (d)(2)(i), (d)(2)(ii), and (d)(3)(i) of this AD. (4) Perform a control column sweep inspection Prior to further flight after each time the eleva- In accordance with the applicable Raytheon by accomplishing the actions of paragraphs tor control system is re-rigged. Examples of Aircraft Company 1900/1900C or 1900D (d)(1)(i), (d)(1)(ii), (d)(2), (d)(3)(i), and items that require re-rigging include, but are maintenance manual. (d)(3)(ii) of this AD. If the aft fairing is already not limited to, changing the tension on the removed, the actions of paragraphs (d)(1)(i) elevator primary control cables and replac- are not required. ing the elevator control system components such as cables, pulleys, push-pull tubes, and bellcranks. (5) Report the results of the initial inspection re- Within 10 days after the initial inspections re- Submit the results to the Raytheon Aircraft quired by paragraph (d)(1) of this AD and the quired by paragraph (d)(1) or (d)(3)(i) of this Company, 9709 E. Central, Wichita Kansas initial travel board inspection required by AD. 67201–0085; telephone: (800) 429–5372 or paragraph (d)(3)(i) of this AD. Break out the (316) 676–3140; facsimile; (316) 676–8051; results of the control column sweep inspec- e-mail: [email protected]. tion, bolt length measurement, and the travel board inspection. Along with the results, include the airplane model, serial number, and the number of hours TIS at the time of inspection. Label the document ‘‘Inspection results of AD 2003–03–18’’.

(e) Can I comply with this AD in any other requirements of this AD. For airplanes that compliance? Contact Paul DeVore, Aerospace way? You may use an alternative method of have been modified, altered, or repaired so Engineer, FAA, Wichita Aircraft Certification compliance or adjust the compliance time if: that the performance of the requirements of Office, 1801 Airport Road, Room 100, Mid- (1) Your alternative method of compliance this AD is affected, the owner/operator must Continent Airport, Wichita, Kansas 67209; provides an equivalent level of safety; and request approval for an alternative method of telephone: (316) 946–4142; facsimile: (316) (2) The Manager, Wichita ACO, approves compliance in accordance with paragraph (e) your alternative. Submit your request of this AD. The request should include an 946–4407. through an FAA Principal Maintenance assessment of the effect of the modification, (g) What if I need to fly the airplane to Inspector, who may add comments and then alteration, or repair on the unsafe condition another location to comply with this AD? The send it to the Manager, Wichita ACO. addressed by this AD; and, if you have not FAA can issue a special flight permit under Note: This AD applies to each airplane eliminated the unsafe condition, specific sections 21.197 and 21.199 of the Federal identified in paragraph (a) of this AD, actions you propose to address it. Aviation Regulations (14 CFR 21.197 and regardless of whether it has been modified, (f) Where can I get information about any 21.199) to operate your airplane to a location altered, or repaired in the area subject to the already-approved alternative methods of where you can accomplish the requirements

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of this AD provided the following is adhered reasonable assurance of the safety and advisory committee); (2) published the to: effectiveness of the device and there is panel’s recommendation for comment, (1) When re-rigging is required, operate the sufficient information to establish along with a proposed regulation airplane with crew only and no cargo. classifying the device; and (3) published (2) All special flight permits must be special controls. coordinated with the Wichita ACO at the DATES: This rule is effective May 6, a final regulation classifying the device. address, phone number, and facsimile 2003. FDA has classified most preamendments devices under these number specified in paragraph (f) of this AD. FOR FURTHER INFORMATION CONTACT: (h) Where can I view information related to procedures. this AD? You may view information related Freddie M. Poole, Center for Devices Devices that were not in commercial to this AD at FAA, Central Region, Office of and Radiological Health (HFZ–440), distribution prior to May 28, 1976, the Regional Counsel, 901 Locust, Room 506, Food and Drug Administration, 9200 generally referred to as postamendments Kansas City, Missouri 64106. Corporate Blvd., Rockville, MD 20850, devices, are classified automatically by (i) When does this AD become effective? 301–594–2096. statute (section 513(f) of the act) into This AD becomes effective February 5, 2003, SUPPLEMENTARY INFORMATION: to all affected persons who did not receive class III without any FDA rulemaking emergency AD 2003–03–18, issued January I. Background (Regulatory Authorities) process. Those devices remain in class III and require premarket approval, 27, 2003. Emergency AD 2003–03–18 The Federal Food, Drug, and Cosmetic contained the requirements of this unless and until: (1) The device is amendment and became effective Act (the act) (21 U.S.C. 301 et seq.), as reclassified into class I or II; (2) FDA immediately upon receipt and required the amended by the Medical Device issues an order classifying the device actions no later than January 31, 2003 (4 days Amendments of 1976 (the 1976 into class I or II in accordance with new after distribution). amendments) (Public Law 94–295), the section 513(f)(2) of the act, as amended Issued in Kansas City, Missouri, on January Safe Medical Devices Act of 1990 (the by the FDAMA; or (3) FDA issues an 30, 2003. SMDA) (Public Law 101–629), and the order finding the device to be Michael Gallagher, Food and Drug Administration substantially equivalent, under section Manager, Small Airplane Directorate, Aircraft Modernization Act of 1997 (the 513(i) of the act, to a predicate device Certification Service. FDAMA) (Public Law 105–115), that does not require premarket [FR Doc. 03–2784 Filed 2–4–03; 8:45 am] established a comprehensive system for approval. The agency determines the regulation of medical devices BILLING CODE 4910–13–P whether new devices are substantially intended for human use. Section 513 of equivalent to previously offered devices the act (21 U.S.C. 360c) established by means of premarket notification three categories (classes) of devices, DEPARTMENT OF HEALTH AND procedures in section 510(k) of the act depending on the regulatory controls HUMAN SERVICES (21 U.S.C. 360(k)) and part 807 of the needed to provide reasonable assurance regulations (21 CFR part 807). Food and Drug Administration of their safety and effectiveness. The A preamendments device that has three categories of devices are class I been classified into class III may be 21 CFR Part 866 (general controls), class II (special marketed, by means of premarket controls), and class III (premarket notification procedures, without [Docket No. 97P–0313] approval). submission of a premarket approval Under the 1976 amendments, class II application (PMA) until FDA issues a Medical Devices; Reclassification and devices were defined as devices for Codification of Fully Automated Short- final regulation under section 515(b) of which there is insufficient information the act (21 U.S.C. 360e(b)) requiring Term Incubation Cycle Antimicrobial to show that general controls themselves Susceptibility Devices From Class III to premarket approval. will assure safety and effectiveness, but Reclassification of postamendments Class II for which there is sufficient information devices is governed by section 513(f)(3) AGENCY: Food and Drug Administration, to establish performance standards to of the act, formerly section 513(f)(2) of HHS. provide such assurance. The SMDA the act. This section provides that FDA ACTION: Final rule. broadened the definition of class II may initiate the reclassification of a devices to mean devices for which there device classified into class III under SUMMARY: The Food and Drug is insufficient information to show that section 513(f)(1) of the act, or the Administration (FDA) is reclassifying general controls themselves will assure manufacturer or importer of a device the fully automated short-term safety and effectiveness, but for which may petition the Secretary of Health and incubation cycle antimicrobial there is sufficient information to Human Services (the Secretary) for the susceptibility device for use in establish special controls to provide issuance of an order classifying the determining in vitro susceptibility of such assurance, including performance device in class I or class II. FDA’s bacterial pathogens isolated from standards, postmarket surveillance, regulations in § 860.134 (21 CFR clinical specimens from class III to class patient registries, development and 860.134) set forth the procedures for the II (special controls). The special control dissemination of guidance, filing and review of a petition for that will apply to this device is a recommendations, and any other reclassification of such class III devices. guidance document entitled ‘‘Class II appropriate actions the agency deems In order to change the classification of Special Controls Guidance Document: necessary (section 513(a)(1)(B) of the the device, it is necessary that the Antimicrobial Susceptibility Test (AST) act). proposed new class have sufficient Systems; Guidance for Industry and Under section 513 of the act, devices regulatory controls to provide FDA.’’ The agency is also announcing that were in commercial distribution reasonable assurance of the safety and that it has issued an order in the form before May 28, 1976 (the date of effectiveness of the device for its of a letter to BioMerieux Vitek, Inc., enactment of the 1976 amendments), intended use. reclassifying the device. The agency is generally referred to as preamendments The FDAMA added a new section classifying this device into class II devices, are classified after FDA has: (1) 513(f)(2) to the act which addresses because special controls, in addition to Received a recommendation from a classification of postamendments the general controls, will provide device classification panel (an FDA devices. New section 513(f)(2) of the act

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provides that, upon receipt of a ‘‘not use in determining in vitro reader, FDA is also adding a new substantially equivalent’’ determination, susceptibility of bacterial pathogens § 866.1(e) to inform the reader where to a 510(k) applicant may request FDA to isolated from clinical specimens, be find guidance documents referenced in classify a postamendments device into reclassified from class III to class II. 21 CFR part 866. class I or class II. Within 60 days from Subsequently, in the Federal Register of III. Environmental Impact the date of such a written request, FDA March 8, 2000 (65 FR 12268), FDA must classify the device by written issued a notice of the panel’s The agency has determined under 21 order. If FDA classifies the device into recommendation for public comment. CFR 25.34(b) that this reclassification is class I or II, the applicant has then After reviewing the information in the of a type that does not individually or received clearance to market the device petition and presenting it before the cumulatively have a significant effect on and it can be used as a predicate device panel, and after considering the panel’s the human environment. Therefore, for other 510(k)s. It is expected that this recommendation and the comments neither an environmental assessment process will be used for low risk received in response to the notice of nor an environmental impact statement devices. This process does not apply to panel recommendation, FDA issued an is required. devices that have been classified by order to the petitioner on December 28, IV. Analysis of Impacts regulation into class III, i.e., 2001, reclassifying the fully automated preamendments class III devices, or short-term incubation cycle FDA has examined the impacts of the class III devices for which a PMA is antimicrobial susceptibility device and notice under Executive Order 12866 and appropriate. substantially equivalent devices of this the Regulatory Flexibility Act (5 U.S.C. Under section 513(f)(3)(B)(i) of the generic type, from class III to class II 601–612), and the Unfunded Mandates act, formerly section 513(f)(2)(B)(i) of with the implementation of special Reform Act of 1995 (Public Law 104–4)). the act, the Secretary may, for good controls. The special control applicable Executive Order 12866 directs agencies cause shown, refer a petition to a device to this generic type of device is a to assess all costs and benefits of classification panel. If a petition is guidance document entitled ‘‘Class II available regulatory alternatives and, referred to a panel, the panel shall make Special Controls Guidance Document: when regulation is necessary, to select a recommendation to the Secretary Antimicrobial Susceptibility Test (AST) regulatory approaches that maximize respecting approval or denial of the Systems; Guidance for Industry and net benefits (including potential petition. Any such recommendation FDA.’’ FDA has identified the economic, environmental, public health shall contain: (1) A summary of the administration of an inappropriate and safety and other advantages, reasons for the recommendation, (2) a antimicrobial agent to the patient as the distributive impacts, and equity). The summary of the data upon which the risk to health associated with use of this agency believes that this final rule is recommendation is based, and (3) an device. The guidance document consistent with the regulatory identification of the risks to health (if contains sections that discuss the use of philosophy and principles identified in any) presented by the device with appropriate challenge strains; the Executive order. In addition, the respect to which the petition was filed. standardized preparation of inoculum; final rule is not a significant regulatory the application of ‘‘acceptable error’’ as action as defined by the Executive order II. Recommendation of the Panel a range with confidence intervals; and and so is not subject to review under the On July 2, 1997, FDA filed the appropriate clinical performance Executive order. reclassification petition submitted by testing. In this way, the guidance will The Regulatory Flexibility Act BioMerieux Vitek, Inc., requesting minimize the sources of erroneous requires agencies to analyze regulatory reclassification of the fully automated reporting associated with the fully options that would minimize any short-term incubation cycle automated short-term incubation cycle significant impact of a rule on small antimicrobial susceptibility devices antimicrobial susceptibility device. entities. Reclassification of the device from class III to class II. FDA consulted Testing and labeling recommendations from class III to class II will relieve all with the Microbiology Devices Panel are also discussed in the guidance manufacturers of the device of the cost (the panel). During an open public document and also help manufacturers of complying with the premarket meeting on February 13, 1998, the panel address the risk to health. Following the approval requirements in section 515 of unanimously recommended that FDA effective date of this final classification the act. Because reclassification will reclassify the fully automated short-term rule, any firm submitting a 510(k) reduce regulatory costs with respect to incubation cycle antimicrobial premarket notification for a fully this device, it will impose no significant susceptibility device for use in automated short-term incubation cycle economic impact on any small entities, determining in vitro susceptibility of antimicrobial susceptibility device will and it may permit small potential bacterial pathogens isolated from need to address the issues covered in competitors to enter the marketplace by clinical specimens from class III to class the special control guidance. However, lowering their costs. The agency II. The panel identified the risks to the firm need only show that its device therefore certifies that this rule will not health regarding use of this device as meets the recommendations of the have a significant economic impact on the reporting of erroneous results, citing guidance or in some other way provides a substantial number of small entities. that insufficient testing of each unique equivalent assurances of safety and In addition, this rule will not impose antimicrobial agent with an effectiveness. costs of $110 million or more on either inappropriate clinical and challenge Accordingly, as required by the private sector or State, local, and organism, the use of an uncalibrated § 860.134(b)(6) and (b)(7) of the tribal governments in the aggregate, and inoculum, or a nonstandardized regulations, FDA is announcing the therefore a summary statement or acceptable error endpoint can result in reclassification of the fully automated analysis pursuant to section 202(a) of such erroneous reports. short-term incubation cycle the Unfunded Mandates Reform Act of FDA considered the panel’s antimicrobial susceptibility device from 1995 is not required. recommendations and tentatively agreed class III into class II. FDA is codifying that the generic type of device, the fully the reclassification and the special V. Federalism automated short-term incubation cycle control guidance by adding new FDA has analyzed this final rule in antimicrobial susceptibility device for § 866.1645. For the convenience of the accordance with the principles set forth

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in Executive Order 13132. FDA has results obtained from short-term (less 1605, the Department of the Navy determined that the rule does not than 16 hours) incubation are used to amends 32 CFR Part 706. This contain policies that have substantial determine the antimicrobial agent of amendment provides notice that the direct effects on the States, on the choice to treat bacterial diseases. Deputy Assistant Judge Advocate relationship between the National (b) Classification. Class II (special General (Admiralty and Maritime Law), Government and the States, or on the controls). The special control for this under authority delegated by the distribution of power and device is FDA’s guidance document Secretary of the Navy, has certified that responsibilities among the various entitled ‘‘Class II Special Controls USS HOWARD (DDG 83) is a vessel of levels of government. Accordingly, the Guidance Document: Antimicrobial the Navy which, due to its special agency has concluded that the rule does Susceptibility Test (AST) Systems; construction and purpose, cannot fully not contain policies that have Guidance for Industry and FDA.’’ comply with the following specific federalism implications as defined in Dated: January 9, 2003. provisions of 72 COLREGS without the order and, consequently, a Linda S. Kahan, interfering with its special function as a federalism summary impact statement is Deputy Director, Center for Devices and naval ship: Annex I, paragraph 3(a) not required. Radiological Health. pertaining to the location of the forward masthead light in the forward quarter of VI. Paperwork Reduction Act of 1995 [FR Doc. 03–2656 Filed 2–4–03; 8:45 am] the vessel, and the horizontal distance This final rule contains no collections BILLING CODE 4160–01–S between the forward and after masthead of information. Therefore, clearance by lights; and Annex I, paragraph 2(f)(i), the Office of Management and Budget pertaining to the placement of the under the Paperwork Reduction Act of DEPARTMENT OF DEFENSE masthead light or lights above and clear 1995 is not required. Department of the Navy of all other lights and obstructions. The List of Subjects in 21 CFR Part 866 Deputy Assistant Judge Advocate 32 CFR Part 706 General (Admiralty and Maritime Law) Biologics, Laboratories, Medical has also certified that the lights devices. Certifications and Exemptions Under involved are located in closest possible Therefore, under the Federal Food, the International Regulations for compliance with the applicable 72 Drug, and Cosmetic Act, and under Preventing Collisions at Sea, 1972 COLREGS requirements. authority delegated to the Commissioner Moreover, it has been determined, in AGENCY: of Food and Drugs, 21 CFR part 866 is Department of the Navy, DOD. accordance with 32 CFR Parts 296 and amended as follows: ACTION: Final rule. 701, that publication of this amendment for public comment prior to adoption is PART 866—IMMUNOLOGY AND SUMMARY: The Department of the Navy impracticable, unnecessary, and MICROBIOLOGY DEVICES is amending its certifications and exemptions under the International contrary to public interest since it is 1. The authority citation for 21 CFR Regulations for Preventing Collisions at based on technical findings that the part 866 continues to read as follows: Sea, 1972 (72 COLREGS), to reflect that placement of lights on this vessel in a manner differently from that prescribed Authority: 21 U.S.C. 351, 360, 360c, 360e, the Deputy Assistant Judge Advocate 360j, 371. General (Admiralty and Maritime Law) herein will adversely affect the vessel’s 2. Section 866.1 is amended by has determined that USS HOWARD ability to perform its military functions. adding paragraph (e) to read as follows: (DDG 83) is a vessel of the Navy which, List of Subjects in 32 CFR Part 706 due to its special construction and § 866.1 Scope. purpose, cannot fully comply with Marine safety, Navigation (water), and * * * * * certain provisions of the 72 COLREGS Vessels. (e) Guidance documents referenced in without interfering with its special Accordingly, 32 CFR part 706 is this part are available on the Internet at function as a naval ship. The intended amended as follows: http:www.fda.gov/cdrh.guidance.html. effect of this rule is to warn mariners in 3. Section 866.1645 is added to waters where 72 COLREGS apply. PART 706—[AMENDED] subpart B to read as follows: EFFECTIVE DATE: August 8, 2002. 1. The authority citation for 32 CFR FOR FURTHER INFORMATION CONTACT: § 866.1645 Fully automated short-term part 706 continues to read as follows: incubation cycle antimicrobial susceptibility Captain Richard T. Evans, JAGC, U.S. system. Navy, Deputy Assistant Judge Advocate Authority: 33 U.S.C. 1605. General (Admiralty and Maritime Law), (a) Identification. A fully automated 2. Table Four, Paragraph 16 of § 706.2 Office of the Judge Advocate General, short-term incubation cycle is amended by revising the following Department of the Navy, 1322 Patterson antimicrobial susceptibility system is a entry for USS HOWARD: device that incorporates concentrations Ave., SE., Suite 3000, Washington Navy of antimicrobial agents into a system for Yard, DC 20374–5066, Telephone § 706.2 Certifications of the Secretary of the purpose of determining in vitro number: (202) 685–5040. the Navy Under Executive Order 11964 and susceptibility of bacterial pathogens SUPPLEMENTARY INFORMATION: Pursuant 33 U.S.C. 1605. isolated from clinical specimens. Test to the authority granted in 33 U.S.C. * * * * *

Obstruction angle relative Vessel Number ship’s headings

******* USS HOWARD ...... DDG 83 109.11 thru 112.50°

*******

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3. Table Five of § 706.2 is amended by § 706.2 Certifications of the Secretary of revising the following entry for USS the Navy Under Executive Order 11964 and HOWARD: 33 U.S.C. 1605. * * * * *

TABLE FIVE

After mast- Masthead Forward masthead light less lights not over head light not than 1/2 ship’s Percentage all other lights in forward length aft of horizontal sep- Vessel No. and obstruc- quarter of forward mast- aration at- tions. annex I, ship. annex I, head light. tained sec. 2(f) sec. 3(a) Annex I, sec. 3(a)

******* USS HOWARD ...... DDG 83 X X X 14.6

*******

Dated: August 8, 2002. FOR FURTHER INFORMATION CONTACT: vertical placement of task lights. The Richard T. Evans, Captain Richard T. Evans, JAGC, U.S. Deputy Assistant Judge Advocate Captain, JAGC, U.S. Navy, Deputy Assistant Navy, Deputy Assistant Judge Advocate General (Admiralty and Maritime Law) Judge Advocate General (Admiralty and General (Admiralty and Maritime Law), has also certified that the lights Maritime Law). Office of the Judge Advocate General, involved are located in closest possible [FR Doc. 03–2636 Filed 2–4–03; 8:45 am] Department of the Navy, 1322 Patterson compliance with the applicable 72 BILLING CODE 3810–FF–U Ave., SE., Suite 3000, Washington Navy COLREGS requirements. Yard, DC 20374–5066, Telephone Moreover, it has been determined, in number: (202) 685–5040. accordance with 32 CFR Parts 296 and DEPARTMENT OF DEFENSE SUPPLEMENTARY INFORMATION: Pursuant 701, that publication of this amendment to the authority granted in 33 U.S.C. for public comment prior to adoption is Department of the Navy 1605, the Department of the Navy impracticable, unnecessary, and amends 32 CFR Part 706. This contrary to public interest since it is 32 CFR Part 706 amendment provides notice that the based on technical findings that the Deputy Assistant Judge Advocate placement of lights on this vessel in a Certifications and Exemptions Under General (Admiralty and Maritime Law), manner differently from that prescribed the International Regulations for under authority delegated by the herein will adversely affect the vessel’s Preventing Collisions at Sea, 1972 Secretary of the Navy, has certified that ability to perform its military functions. USS PREBLE (DDG 88) is a vessel of the AGENCY: Department of the Navy, DOD. List of Subjects in 32 CFR Part 706 Navy which, due to its special ACTION: Final rule. construction and purpose, cannot fully Marine safety, Navigation (water), and comply with the following specific Vessels. SUMMARY: The Department of the Navy provisions of 72 COLREGS without Accordingly, 32 CFR Part 706 is is amending its certifications and interfering with its special function as a amended as follows: exemptions under the International naval ship: Annex I, paragraph 3(a) Regulations for Preventing Collisions at pertaining to the location of the forward PART 706—[AMENDED] Sea, 1972 (72 COLREGS), to reflect that masthead light in the forward quarter of 1. The authority citation for 32 CFR the Deputy Assistant Judge Advocate the vessel, and the horizontal distance Part 706 continues to read as follows: General (Admiralty and Maritime Law) between the forward and after masthead has determined that USS PREBLE (DDG lights; Annex I, paragraph 3(c), Authority: 33 U.S.C. 1605. 88) is a vessel of the Navy which, due pertaining to placement of task lights to its special construction and purpose, 2. Table Four, Paragraph 15 of § 706.2 not less than two meters from the fore is amended by adding, in numerical cannot fully comply with certain and aft centerline of the ship in the provisions of the 72 COLREGS without order, the following entry for USS athwartship direction; Annex I, PREBLE: interfering with its special function as a paragraph 2(f)(i), pertaining to the naval ship. The intended effect of this placement of the masthead light or § 706.2 Certifications of the Secretary of rule is to warn mariners in waters where lights above and clear of all other lights the Navy Under Executive Order 11964 and 72 COLREGS apply. and obstructions; and Annex I, 33 U.S.C. 1605. EFFECTIVE DATE: May 31, 2002. paragraph 2(f)(ii), pertaining to the * * * * *

Horizontal distance from the fore and aft centerline of the Vessel Number vessel in the athwartship direction

******* USS PREBLE ...... DDG 88 1.93 meters *******

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3. Table Four, Paragraph 16 of § 706.2 order, the following entry for USS § 706.2 Certifications of the Secretary of is amended by adding, in numerical PREBLE: the Navy Under Executive Order 11964 and 33 U.S.C. 1605. * * * * *

Obstruction angle relative Vessel Number ship’s headings

******* USS PREBLE ...... DDG 88 109.20 thru 112.50° *******

4. Table Five of § 706.2 is amended by § 706.2 Certifications of the Secretary of adding, in numerical order, the the Navy Under Executive Order 11964 and following entry for USS PREBLE: 33 U.S.C. 1605. * * * * *

TABLE FIVE

After mast- Masthead Forward masthead light less lights not over head light not than 1⁄2 ship’s Percentage all other lights in forward length aft of horizontal sep- Vessel No. and obstruc- quarter of forward mast- aration at- tions. Annex I, ship. Annex I, head light. tained sec. 2(f) sec. 3(a) Annex I, sec. 3(a)

******* USS PREBLE ...... DDG 88 X X X 14.7 *******

Dated: May 31, 2002. EFFECTIVE DATE: December 17, 2002. paragraph 2(f)(i), pertaining to the Richard T. Evans, FOR FURTHER INFORMATION CONTACT: placement of the masthead light or Captain, JAGC, U.S. Navy, Deputy Assistant Lieutenant Commander Dominick G. lights above and clear of all other lights Judge Advocate General (Admiralty and Yacono, JAGC, U.S. Navy, Deputy and obstructions; and Annex I, Maritime Law). Assistant Judge Advocate General paragraph 2(f)(ii), pertaining to the [FR Doc. 03–2637 Filed 2–4–03; 8:45 am] (Admiralty and Maritime Law), Office of vertical placement of task lights. The BILLING CODE 3810–FF–U the Judge Advocate General, Department Deputy Assistant Judge Advocate of the Navy, 1322 Patterson Ave., SE., General (Admiralty and Maritime Law) Suite 3000, Washington Navy Yard, DC has also certified that the lights DEPARTMENT OF DEFENSE 20374–5066. Telephone number: (202) involved are located in closest possible 685–5040. compliance with the applicable 72 Department of the Navy COLREGS requirements. SUPPLEMENTARY INFORMATION: Pursuant Moreover, it has been determined, in 32 CFR Part 706 to the authority granted in 33 U.S.C. accordance with 32 CFR parts 296 and 1605, the Department of the Navy Certifications and Exemptions Under 701, that publication of this amendment amends 32 CFR part 706. This for public comment prior to adoption is the International Regulations for amendment provides notice that the Preventing Collisions at Sea, 1972 impracticable, unnecessary, and Deputy Assistant Judge Advocate contrary to public interest since it is AGENCY: Department of the Navy, DOD. General (Admiralty and Maritime Law), based on technical findings that the ACTION: Final rule. under authority delegated by the placement of lights on this vessel in a Secretary of the Navy, has certified that manner differently from that prescribed SUMMARY: The Department of the Navy USS MUSTIN (DDG 89) is a vessel of the herein will adversely affect the vessel’s is amending its certifications and Navy which, due to its special ability to perform its military functions. exemptions under the International construction and purpose, cannot fully Regulations for Preventing Collisions at comply with the following specific List of Subjects in 32 CFR Part 706 Sea, 1972 (72 COLREGS), to reflect that provisions of 72 COLREGS without Marine safety, Navigation (water), and the Deputy Assistant Judge Advocate interfering with its special function as a Vessels. General (Admiralty and Maritime Law) naval ship: Annex I, paragraph 3(a) Accordingly, 32 CFR part 706 is has determined that USS MUSTIN (DDG pertaining to the location of the forward amended as follows: 89) is a vessel of the Navy which, due masthead light in the forward quarter of to its special construction and purpose, the vessel, and the horizontal distance PART 706—[AMENDED] cannot fully comply with certain between the forward and after masthead provisions of the 72 COLREGS without lights; Annex I, paragraph 3(c), 1. The authority citation for 32 CFR interfering with its special function as a pertaining to placement of task lights part 706 continues to read as follows: naval ship. The intended effect of this not less than two meters from the fore Authority: 33 U.S.C. 1605. rule is to warn mariners in waters where and aft centerline of the ship in the 2. Table Four, paragraph 15 of § 706.2 72 COLREGS apply. athwartship direction; Annex I, is amended by adding, in numerical

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order, the following entry for USS § 706.2 Certifications of the Secretary of MUSTIN: the Navy Under Executive Order 11964 and 33 U.S.C. 1605. * * * * *

Horizontal distance from the fore and aft centerline of the Vessel Number vessel in the athwartship direction

******* USS MUSTIN ...... DDG 89 1.93 meters *******

3. Table Four, paragraph 16 of § 706.2 order, the following entry for USS § 706.2 Certifications of the Secretary of is amended by adding, in numerical MUSTIN: the Navy Under Executive Order 11964 and 33 U.S.C. 1605. * * * * *

Obstruction angle relative Vessel Number ship’s headings

******* USS MUSTIN ...... DDG 89 107.83 thru 112.50° *******

4. Table Five of § 706.2 is amended by § 706.2 Certifications of the Secretary of adding, in numerical order, the the Navy Under Executive Order 11964 and following entry for USS MUSTIN: 33 U.S.C. 1605. * * * * *

TABLE FIVE

******* USS MUSTIN ...... DDG 89 X X X 14.4 *******

Dated: December 17, 2002. exemptions under the International Yard, DC 20374–5066. Telephone D.G. Yacono, Regulations for Preventing Collisions at number: (202) 685–5040. Lieutenant Commander, JAGC, U.S. Navy, Sea, 1972 (72 COLREGS), to reflect that SUPPLEMENTARY INFORMATION: Pursuant Deputy Assistant Judge Advocate General the Deputy Assistant Judge Advocate (Admiralty and Maritime Law). General (Admiralty and Maritime Law) to the authority granted in 33 U.S.C. 1605, the Department of the Navy [FR Doc. 03–2638 Filed 2–4–03; 8:45 am] has determined that USS BULKELEY amends 32 CFR part 706. This BILLING CODE 3810–FF–P (DDG 84) is a vessel of the Navy which, due to its special construction and amendment provides notice that the purpose, cannot fully comply with Deputy Assistant Judge Advocate DEPARTMENT OF DEFENSE certain provisions of the 72 COLREGS General (Admiralty and Maritime Law), without interfering with its special under authority delegated by the Department of the Navy function as a naval ship. The intended Secretary of the Navy, has certified that effect of this rule is to warn mariners in USS BULKELEY (DDG 84) is a vessel of 32 CFR Part 706 waters where 72 COLREGS apply. the Navy which, due to its special construction and purpose, cannot fully Certifications and Exemptions Under EFFECTIVE DATE: June 13, 2002. comply with the following specific the International Regulations for FOR FURTHER INFORMATION CONTACT: provisions of 72 COLREGS without Preventing Collisions at Sea, 1972 Captain Richard T. Evans, JAGC, U.S. interfering with its special function as a AGENCY: Department of the Navy, DOD. Navy, Deputy Assistant Judge Advocate naval ship: Annex I, paragraph 3(a) ACTION: Final rule. General (Admiralty and Maritime Law), pertaining to the location of the forward Office of the Judge Advocate General, masthead light in the forward quarter of SUMMARY: The Department of the Navy Department of the Navy, 1322 Patterson the vessel, and the horizontal distance is amending its certifications and Ave., SE., Suite 3000, Washington Navy between the forward and after masthead

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lights; and Annex I, paragraph 2(f)(i), for public comment prior to adoption is PART 706—[AMENDED] pertaining to the placement of the impracticable, unnecessary, and masthead light or lights above and clear contrary to public interest since it is 1. The authority citation for 32 CFR of all other lights and obstructions. The based on technical findings that the part 706 continues to read as follows: placement of lights on this vessel in a Deputy Assistant Judge Advocate Authority: 33 U.S.C. 1605. General (Admiralty and Maritime Law) manner differently from that prescribed has also certified that the lights herein will adversely affect the vessel’s 2. Table Four, paragraph 16 of § 706.2 involved are located in closest possible ability to perform its military functions. is amended by revising the following compliance with the applicable 72 List of Subjects in 32 CFR Part 706 entry for USS BULKELEY: COLREGS requirements. Marine safety, Navigation (water), and § 706.2 Certifications of the Secretary of Moreover, it has been determined, in Vessels. the Navy Under Executive Order 11964 and accordance with 32 CFR parts 296 and Accordingly, 32 CFR part 706 is 33 U.S.C. 1605. 701, that publication of this amendment amended as follows: * * * * *

Obstruction angle relative Vessel Number ship’s headings

******* USS BULKELEY ...... DDG 84 109.60 thru 112.50° *******

3. Table Five of § 706.2 is amended by § 706.2 Certifications of the Secretary of revising the following entry for USS the Navy Under Executive Order 11964 and BULKELEY: 33 U.S.C. 1605. * * * * *

TABLE FIVE

After mast- Masthead Forward masthead light less lights not over head light not than 1⁄2 ship’s Percentage all other lights in forward length aft of horizontal sep- Vessel No. and obstruc- quarter of forward mast- aration at- tions. annex I, ship. annex I, head light. tained sec 2(f) sec. 3(a) annex I, sec. 3(a)

******* USS BULKELEY ...... DDG 84 X X X 14.7 *******

Dated: June 13, 2002. General of the Navy (Admiralty and amendment provides notice that the Richard T. Evans, Maritime Law) has determined that USS Deputy Assistant Judge Advocate Captain, JAGC, U.S. Navy, Deputy Assistant MASON (DDG 87) is a vessel of the General of the Navy (Admiralty and Judge Advocate General (Admiralty and Navy which, due to its special Maritime Law), under authority Maritime Law). construction and purpose, cannot fully delegated by the Secretary of the Navy, [FR Doc. 03–2639 Filed 2–4–03; 8:45 am] comply with certain provisions of the 72 has certified that USS MASON (DDG 87) BILLING CODE 3810–FF–P COLREGS without interfering with its is a vessel of the Navy which, due to its special function as a naval ship. The special construction and purpose, intended effect of this rule is to warn cannot fully comply with the following DEPARTMENT OF DEFENSE mariners in waters where 72 COLREGS specific provisions of 72 COLREGS apply. without interfering with its special Department of the Navy EFFECTIVE DATE: October 11, 2002 function as a naval ship: Annex I, paragraph 2(f)(i) pertaining to placement 32 CFR Part 706 FOR FURTHER INFORMATION CONTACT: of the masthead light or lights above and Lieutenant Commander, Dominick G. clear of all other lights and obstructions, Certifications and Exemptions Under Yacono, JAGC, U.S. Navy Deputy Annex I paragraph 2(f)(ii) pertaining to the International Regulations for Assistant Judge Advocate General the vertical placement of the task lights, Preventing Collisions at Sea, 1972 (Admiralty and Maritime Law), Office of Annex I paragraph 3(a) pertaining to the the Judge Advocate General, Department AGENCY: Department of the Navy, DOD. location of the forward masthead light of the Navy, 1322 Patterson Ave., SE., ACTION: Final rule. in the forward quarter of the vessel, and Suite 3000, Washington Navy Yard, DC the horizontal distance between the SUMMARY: The Department of the Navy 20374–5066, Telephone number: (202) forward and after masthead lights, and is amending its certifications and 685–5040. Annex I paragraph 3(c) pertaining to the exemptions under the International SUPPLEMENTARY INFORMATION: Pursuant horizontal placement of the task lights. Regulations for Preventing Collisions at to the authority granted in 33 U.S.C. The Deputy Assistant Judge Advocate Sea, 1972 (72 COLREGS), to reflect that 1605, the Department of the Navy General of the Navy (Admiralty and the Deputy Assistant Judge Advocate amends 32 CFR Part 706. This Maritime Law) has also certified that the

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lights involved are located in closest herein will adversely affect the vessel’s Authority: 33 U.S.C. 1605. possible compliance with the applicable ability to perform its military functions. 72 COLREGS requirements. 2. Table Four, Paragraph 15 of § 706.2 List of Subjects in 32 CFR Part 706 Moreover, it has been determined, in is amended by adding, in numerical accordance with 32 CFR Parts 296 and Marine safety, Navigation (water), and order, the following entry for USS 701, that publication of this amendment Vessels. MASON: for public comment prior to adoption is Accordingly, 32 CFR Part 706 is amended as follows: § 706.2 Certifications of the Secretary of impracticable, unnecessary, and the Navy Under Executive Order 11964 and contrary to public interest since it is PART 706—[AMENDED] 33 U.S.C. 1605. based on technical findings that the placement of lights on this vessel in a 1. The authority citation for 32 CFR * * * * * manner differently from that prescribed Part 706 continues to read as follows:

Horizontal distance from the fore and aft centerline of the ves- Vessel Number sel in the athwartship direction

******* USS MASON ...... DDG 87 1.87 meters

*******

3. Table Four, Paragraph 16 of § 706.2 order, the following entry for USS § 706.2 Certifications of the Secretary of is amended by adding, in numerical MASON: the Navy Under Executive Order 11964 and 33 U.S.C. 1605. * * * * *

Vessel Number Obstruction angle relative ship’s headings

******* USS MASON ...... DDG 87 108.03 thru 112.50°

*******

4. Table Five of § 706.2 is amended by § 706.2 Certifications of the Secretary of adding, in numerical order, the the Navy Under Executive Order 11964 and following entry for USS MASON: 33 U.S.C. 1605. * * * * *

TABLE FIVE

After mast- Masthead Forward head light 1 lights not masthead less than ⁄2 Percentage over all light not in ship’s length horizontal Vessel No. other lights forward aft of for- separation and obstruc- quarter of ward mast- attained tions. annex ship. annex head light. I, sec. 2(f) I, sec. 3(a) annex I, sec. 3(a)

******* USS Mason ...... DDG 87 X X X 14.5

*******

Dated: October 11, 2002. DEPARTMENT OF TRANSPORTATION ACTION: Notice of temporary deviation Dominick G. Yacono, from regulations. Coast Guard Lieutenant Commander, JAGC, U.S. Navy, SUMMARY: The Commander, First Coast Deputy Assistant Judge Advocate General 33 CFR Part 117 Guard District, has issued a temporary (Admiralty and Maritime Law). deviation from the drawbridge operation [FR Doc. 03–2635 Filed 2–4–03; 8:45 am] [CGD01–03–003] regulations for the New Jersey Transit BILLING CODE 3810–FF–U Drawbridge Operation Regulations: Rail Operations (NJTRO) railroad bridge, Cheesequake Creek, NJ mile 0.2, across Cheesequake Creek, at Morgan, South Amboy, New Jersey. AGENCY: Coast Guard, DOT. Under this temporary deviation the

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bridge may remain closed to vessel DEPARTMENT OF TRANSPORTATION Regulatory Information traffic from February 3, 2003, through We did not publish a notice of Coast Guard February 16, 2003. This temporary proposed rulemaking (NPRM) for this deviation is necessary to facilitate regulation. Under 5 U.S.C. 553(b) (B), 33 CFR Part 165 repairs at the bridge. the Coast Guard finds that good cause exists for not publishing an NPRM. DATES: This deviation is effective from [CGD05–03–007] February 3, 2003, through February 16, Publishing an NPRM, which would 2003. incorporate a comment period before a RIN 2115–AA97 final rule was issued, would be contrary FOR FURTHER INFORMATION CONTACT: Joe Security Zone: Chesapeake Bay, to the public interest since immediate Arca, Project Officer, First Coast Guard Elizabeth River, Port of Hampton action is needed to prevent destruction, District, at (212) 668–7165. Roads, Virginia loss or injury to resources involved in the military operations taking place in SUPPLEMENTARY INFORMATION: The AGENCY: the vicinity of the Norfolk International NJTRO railroad bridge has a vertical Coast Guard, DOT. Terminals. clearance in the closed position of 3 feet ACTION: Temporary final rule. Discussion of Rule at mean high water and 8 feet at mean SUMMARY: The Coast Guard is low water. The existing drawbridge establishing a security zone A security zone is being established operation regulations are listed at 33 encompassing the grounds, piers and encompassing the grounds, piers and CFR 117.709(b). waterside of Norfolk International waterside of Norfolk International The bridge owner, New Jersey Transit Terminals, Norfolk, Virginia. This zone Terminals, Norfolk, Virginia from 5 a.m. Rail Operations, requested a temporary is needed to prevent destruction, loss, or January 28, 2003 until 11:59 p.m. deviation from the drawbridge operation injury to military equipment and February 4, 2003. This zone is needed regulations to facilitate necessary supplies while military operations are to safeguard materials and persons in maintenance, the refurbishment of the being carried out at Norfolk the vicinity from sabotage or other electrical controls, at the bridge. The International Terminals. The Captain of subversive acts, accidents, or other bridge must remain in the closed the Port, Hampton Roads, Virginia will causes of a similar nature while military position to perform these repairs. enforce a security zone consisting of the operations are being conducted. This security zone will encompass the Vessels that can pass under the bridge Norfolk International Terminals Virginia Port Authority property known without a bridge opening may do so at property enclosed within the perimeter as Norfolk International Terminals, at all times. fence and extending westerly from the shoreline at position 36°¥56.001′ North 7737 Hampton Blvd, Norfolk, Virginia, The waterway users who normally latitude, 76°¥19.726′ West longitude to 23505, including all property that is navigate Cheesequake Creek are a point at 36°¥55.996′ North latitude, enclosed by the perimeter fence. The predominantly recreational vessels. The 76°¥20.152′ West longitude, thence security zone will also include the proposed time period is historically the southerly to a point at 36°¥54.762′ waters of the Elizabeth River in time period during which the fewest North latitude, 76°¥20.244′ West proximity to Norfolk International requests are made to open the bridge. longitude, then southeasterly to a point Terminals, as bounded by a line The Coast Guard coordinated this at 36°¥53.854′ North latitude, extending westerly from the shoreline at closure with the mariners who normally 76°¥20.093′ West longitude, then to the position 36°¥56.001′ North latitude, use this waterway to help facilitate this shoreline at position 36°¥54.216′ North 76°¥19.726′ West longitude to a point necessary bridge repair and to minimize latitude, 76°¥19.481′ West longitude. at 36°¥55.996′ North latitude, °¥ ′ any disruption to the marine Individuals or vessels will not be 76 20.152 West longitude, thence °¥ ′ transportation system. allowed to enter the security zone at southerly to a point at 36 54.762 Norfolk International Terminals, except North latitude, 76°¥20.244′ West Under this temporary deviation the as permitted by the Captain of the Port longitude, then southeasterly to a point NJTRO railroad bridge may remain or his designated representative. at 36°¥53.854′ North latitude, closed to vessel traffic from 8 a.m. on Movement of individuals and vehicles 76°¥20.093′ West longitude, then to the February 3, 2003, through 4 p.m. on within Norfolk International Terminals shoreline at position 36°¥54.216′ North February 16, 2003. The bridge shall may be restricted or prohibited. latitude, 76°¥19.481′ West longitude. open upon a four-hour advance notice DATES: This section is effective from 5 The security zone will be enforced from for emergency situations. a.m. January 28, 2003 to 11:59 p.m. 5 a.m. January 28, 2003 until 11:59 p.m. This deviation from the operating February 4, 2003. February 4, 2003. U.S. Coast Guard personnel will be on scene at all times regulations is authorized under 33 CFR ADDRESSES: Documents indicated in this while the security zone is in effect. U.S. 117.35, and will be performed with all preamble as being available in the Coast Guard vessels will enforce the due speed in order to return the bridge docket are part of docket CGD05–03– security zone over the water whenever to normal operation as soon as possible. 007 and are available for inspection or a vessel involved in the military copying at USCG Marine Safety Office Dated: January 24, 2003. operation is inside the security zone. Hampton Roads, 200 Granby Street, Vivien S. Crea, Commercial and recreational boats will Suite 700, Norfolk, Virginia, 23510, not be permitted to enter the security Rear Admiral, U.S. Coast Guard, Commander, between 9:30 a.m. and 2 p.m., Monday First Coast Guard District. zone, except as permitted by the Captain through Friday, except Federal holidays. [FR Doc. 03–2697 Filed 2–4–03; 8:45 am] of the Port. FOR FURTHER INFORMATION CONTACT: LT BILLING CODE 4910–15–P Mike Dolan, project officer, USCG Regulatory Evaluation Marine Safety Office Hampton Roads, This rule is not a ‘‘significant telephone number (757) 668–5590. regulatory action’’ under section 3(f) of SUPPLEMENTARY INFORMATION: Executive Order 12866, Regulatory

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Planning and Review, and does not Regulatory Fairness Boards. The with Indian Tribal Governments, require an assessment of potential costs Ombudsman evaluates these actions because it does not have a substantial and benefits under section 6(a)(3) of that annually and rates each agency’s direct effect on one or more Indian Order. The Office of Management and responsiveness to small business. If you tribes, on the relationship between the Budget has not reviewed it under that wish to comment on actions by Federal Government and Indian tribes, Order. It is not ‘‘significant’’ under the employees of the Coast Guard, call 1– or on the distribution of power and regulatory policies and procedures of 888–REG–FAIR (1–888–734–3247). responsibilities between the Federal the Department of Transportation (DOT) Government and Indian tribes. (44 FR 11040, February 26, 1979). Collection of Information Although this regulation restricts This rule calls for no new collection Energy Effects access to the regulated area, the effect of of information under the Paperwork We have analyzed this rule under this regulation will not be significant Reduction Act of 1995 (44 U.S.C. 3501– Executive Order 13211, Actions because: (i) The COTP may authorize 3520). Concerning Regulations That access to the security zone; (ii) the Significantly Affect Energy Supply, Federalism security zone will be in effect for a Distribution, or Use. We have limited duration; and (iii) the Coast A rule has implications for federalism determined that it is not a ‘‘significant Guard will make notifications via under Executive Order 13132, energy action’’ under that order because maritime advisories so mariners can Federalism, if it has a substantial direct it is not a ‘‘significant regulatory action’’ adjust their plans accordingly. effect on State or local governments and under Executive Order 12866 and is not would either preempt State law or Small Entities likely to have a significant adverse effect impose a substantial direct cost of on the supply, distribution, or use of Under the Regulatory Flexibility Act compliance on them. We have analyzed energy. It has not been designated by the (5 U.S.C. 601–612), the Coast Guard this rule under that Order and have Administrator of the Office of considered whether this rule would determined that it does not have Information and Regulatory Affairs as a have a significant economic impact on implications for federalism. significant energy action. Therefore, it a substantial number of small entities. Unfunded Mandates Reform Act does not require a Statement of Energy The term ‘‘small entities’’ include small Effects under Executive Order 13211. businesses, not-for-profit organizations The Unfunded Mandates Reform Act that are independently owned and of 1995 (2 U.S.C. 1531–1538) requires Environment operated and are not dominant in their Federal agencies to assess the effects of We have considered the fields, and governmental jurisdictions their discretionary regulatory actions. In environmental impact of this rule and with populations of less than 50,000. particular, the Act addresses actions concluded that under Figure 2–1, The Coast Guard certifies under 5 that may result in the expenditure by a Paragraph (34)(g), of Commandant U.S.C. section 605(b) that this rule will State, local, or tribal government, in the Instruction M16475.lD, this rule is not have a significant economic impact aggregate, or by the private sector of categorically excluded from further on a substantial number of small $100,000,000 or more in any one year. environmental documentation. This rule entities. Though this rule will not result in such is less than one week in duration. This rule will affect the following expenditure, we do discuss the effects of entities, some of which may be small this rule elsewhere in this preamble. List of Subjects in 33 CFR Part 165 entities: the owners and operators of Taking of Private Property Harbors, Marine safety, Navigation vessels intending to transit or anchor (water), Reporting and Record Keeping within the security zone established at This rule will not affect a taking of Requirements, Security measures, Norfolk International Terminals, from 5 private property or otherwise have Vessels, Waterways. a.m. January 28, 2003 until 11:59 p.m. taking implications under Executive For the reasons discussed in the February 4, 2003. Order 12630, Governmental Actions and preamble, the Coast Guard amends 33 Assistance for Small Entities Interference with Constitutionally CFR Part 165 as follows: Protected Property Rights. Under section 213(a) of the Small Civil Justice Reform PART 165—REGULATED NAVIGATION Business Regulatory Enforcement AREAS AND LIMITED ACCESS AREAS Fairness Act of 1996 (Public Law 104– This rule meets applicable standards 121), we offered to assist small entities in sections 3(a) and 3(b)(2) of Executive 1. The authority citation for Part 165 in understanding the rule so that they Order 12988, Civil Justice Reform, to continues to read as follows: can better evaluate its effects on them minimize litigation, eliminate Authority: 33 U.S.C. 1231; 50 U.S.C. 191; and participate in the rulemaking ambiguity, and reduce burden. 33 CFR 1.05–1(g), 6.04–1, 6.04–6 and 160.5; process. If the rule will affect your small 49 CFR 1.46. Protection of Children business, organization, or government 2. Add temporary § 165.T05–007, to jurisdiction and you have questions We have analyzed this rule under read as follows: concerning its provisions or options for Executive Order 13045, Protection of compliance, please contact the person Children from Environmental Health § 165.T05–007 Security Zone: Chesapeake listed under FOR FURTHER INFORMATION Risks and Safety Risks. This rule is not Bay, Elizabeth River, Port of Hampton CONTACT for assistance in understanding an economically significant rule and Roads, Virginia. this rule. does not create an environmental risk to (a) Location: The following area is a Small businesses may send comments health or risk to safety that may security zone: The grounds of the on the actions of Federal employees disproportionately affect children. Norfolk International Terminals, who enforce, or otherwise determine Norfolk, Virginia, enclosed by a fence compliance with, Federal regulations to Indian Tribal Governments surrounding the perimeter, and the the Small Business and Agriculture This rule does not have tribal waters of the Elizabeth River in Regulatory Enforcement Ombudsman implications under Executive Order proximity to Norfolk International and the Regional Small Business 13175, Consultation and Coordination Terminals, as encompassed by a line

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drawn westerly from the shoreline at ACTION: Final rule. whether this action might apply to position 36°¥56.001′ North latitude, certain entities. If you have any 76°¥19.726′ West longitude to a point SUMMARY: This regulation establishes a questions regarding the applicability of at 36°¥55.996′ North latitude, temporary exemption from the this action to a particular entity, consult 76°¥20.152′ West longitude, thence requirement of a tolerance for residues the person listed under FOR FURTHER southerly to a point at 36°¥54.762′ of the biochemical pesticide 6- INFORMATION CONTACT. °¥ ′ benzyladenine on apples and pistachios North latitude, 76 20.244 West B. How Can I Get Copies of this longitude, then southeasterly to a point when applied/used in accordance with °¥ ′ the Experimental Use Permit 73049- Document and Other Related at 36 53.854 North latitude, Information? 76°¥20.093′ West longitude, then to the EUP-2. Valent BioSciences Corporation shoreline at position 36°¥54.216′ North submitted a petition to EPA under the 1. Docket. EPA has established an latitude, 76°¥19.481′ West longitude. Federal Food, Drug, and Cosmetic Act official public docket for this action (b) Definitions: The designated (FFDCA), as amended by the Food under docket identification (ID) number representative of the Captain of the Port Quality Protection Act of 1996 (FQPA), OPP–2002–0308. The official public is any U.S. Coast Guard commissioned, requesting the temporary tolerance docket consists of the documents warrant or petty officer who has been exemption. This regulation eliminates specifically referenced in this action, authorized by the Captain of the Port, the need to establish a maximum any public comments received, and Hampton Roads, Virginia to act on his permissible level for residues of 6- other information related to this action. behalf. benzyladenine. The temporary tolerance Although a part of the official docket, (1) The Captain of the Port, Hampton exemption will expire on January 31, the public docket does not include Roads and the Command Duty Officer at 2005. Confidential Business Information (CBI) or other information whose disclosure is the Marine Safety Office, Norfolk, DATES: This regulation is effective restricted by statute. The official public Virginia can be contacted at telephone February 5, 2003. Objections and docket is the collection of materials that Number (757) 668–5555. requests for hearings, identified by is available for public viewing at the (2) The Coast Guard vessels enforcing docket ID number OPP–2002–0308, Public Information and Records the security zone can be contacted on must be received by EPA on or before Integrity Branch (PIRIB), Rm. 119, VHF—FM channels 13 and 16. April 7, 2003. (c) Regulation: (1) In accordance with Crystal Mall #2, 1921 Jefferson Davis ADDRESSES: Written objections and Hwy., Arlington, VA. This docket the general regulations in 165.33 of this hearing requests may be submitted part, entry into this zone is prohibited facility is open from 8:30 a.m. to 4 p.m., electronically, by mail, or through hand Monday through Friday, excluding legal unless authorized by the Captain of the delivery/courier. Follow the detailed Port, Hampton Roads, Virginia, or his holidays. The docket telephone number instructions as provided in Unit VIII. of is (703) 305–5805. designated representatives. the SUPPLEMENTARY INFORMATION. (2) The operator of any vessel in the 2. Electronic access. You may access FOR FURTHER INFORMATION CONTACT: immediate vicinity of this security zone this Federal Register document shall: Denise Greenway, Biopesticides and electronically through the EPA Internet (i) Stop the vessel immediately upon Pollution Prevention Division (7511C), under the ‘‘Federal Register’’ listings at being directed to do so by any Environmental Protection Agency, 1200 http://www.epa.gov/fedrgstr/. A commissioned, warrant or petty officer Pennsylvania Ave., NW., Washington, frequently updated electronic version of on board a vessel displaying a U.S. DC 20460–0001; telephone number: 40 CFR part 180 is available at http:// (703) 308–8263; e-mail address: www.access.gpo.gov/nara/cfr/ Coast Guard Ensign. _ _ _ (ii) Proceed as directed by any [email protected]. cfrhtml 00/Title 40/40cfr180 00.html, a commissioned, warrant or petty officer SUPPLEMENTARY INFORMATION: beta site currently under development. An electronic version of the public on board a vessel displaying a U.S. I. General Information docket is available through EPA’s Coast Guard Ensign. electronic public docket and comment (d) Effective date: This section is A. Does this Action Apply to Me? system, EPA Dockets. You may use EPA effective from 5 a.m. January 28, 2003 You may be potentially affected by Dockets at http://www.epa.gov/edocket/ until 11:59 p.m. February 4, 2003. this action if you are an agricultural to submit or view public comments, Dated: January 28, 2003. producer, food manufacturer, or access the index listing of the contents Lawrence M. Brooks, pesticide manufacturer. Potentially of the official public docket, and to Captain, U.S. Coast Guard, Captain of the affected entities may include, but are access those documents in the public Port, Hampton Roads. not limited to: docket that are available electronically. [FR Doc. 03–2695 Filed 2–4–03; 8:45 am] • Crop production (NAICS 111) Although not all docket materials may • BILLING CODE 4910–15–P Animal production (NAICS 112) be available electronically, you may still • Food manufacturing (NAICS 311) access any of the publicly available • Pesticide manufacturing (NAICS docket materials through the docket ENVIRONMENTAL PROTECTION 32532) facility identified in Unit I.B.1. Once in • AGENCY Antimicrobial pesticides (NAICS the system, select ‘‘search,’’ then key in 32561) the appropriate docket ID number. 40 CFR Part 180 This listing is not intended to be exhaustive, but rather provides a guide II. Background and Statutory Findings [OPP–2002–0308; FRL–7287–2] for readers regarding entities likely to be In the Federal Register of March 28, 6-Benzyladenine; Temporary affected by this action. Other types of 2002 (67 FR 14948) (FRL–6828–9), EPA Exemption From the Requirement of a entities not listed in this unit could also issued a notice pursuant to section 408 Tolerance be affected. The North American of the FFDCA, 21 U.S.C. 346a, as Industrial Classification System amended by FQPA (Public Law 104– AGENCY: Environmental Protection (NAICS) codes have been provided to 170), announcing the filing of a Agency (EPA). assist you and others in determining pesticide tolerance petition (PP 2G6378)

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by Valent BioSciences Corporation, 870 identifiable subgroups of consumers, below the limit of quantitation (LOQ) Technology Way, Suite 100, including infants and children. for pistachios treated with a total of 60 Libertyville, IL 60048. This notice The toxicological profile for 6- g of active ingredient (a.i.) per acre. In included a summary of the petition benzyladenine has been previously apples, residues of 6-benzyladenine prepared by the petitioner Valent published by the Agency in the N6- were consistently near the LOQ. BioSciences Corporation. There were no Benzyladenine (synonymous with the However, residues did not increase in comments received in response to the subject active ingredient, 6- processed commodities (relative to the notice of filing. benzyladenine) Reregistration Eligibility levels on the raw commodity), and were The petition requested that 40 CFR Decision (RED) document of June 1994 below the LOQ. Thus, the apple field part 180 be amended to expand the (Ref. 1). The summarized values and data are adequate to support the existing tolerance exemption by categories for the various studies for the temporary tolerance exemption petition establishing a temporary exemption technical active ingredient are presented and experimental program to apply from the requirement of a tolerance for here. ≤182 grams of active ingredient per acre residues of 6-benzyladenine. 1. Acute toxicity. Toxicity Category III per season. Also, because application Section 408(c)(2)(A)(i) of the FFDCA was assigned to the acute oral toxicity precedes harvest by 2 months for allows EPA to establish an exemption study in the rat (LD50 = 1.3 grams/ pistachio and by approximately 2.5 from the requirement for a tolerance (the kilogram (g/kg)), and in the eye months for apple, the potential for legal limit for a pesticide chemical irritation study in the rabbit (moderate dietary exposure is reduced. residue in or on a food) only if EPA irritant). Toxicity Category IV was Due to the low anticipated dietary determines that the exemption is ‘‘safe.’’ assigned to the acute dermal toxicity intake of 6-benzyladenine residues > Section 408(c)(2)(A)(ii) of the FFDCA study in the rabbit (LD50 5 g/kg), the relative to the chronic and acute defines ‘‘safe’’ to mean that ‘‘there is a acute inhalation toxicity study in the rat population adjusted doses (see Unit VI, below), and the fact that actual exposure reasonable certainty that no harm will (LC50 = 5.2 milligrams/liter (mg/L)), and will probably be considerably less result from aggregate exposure to the in the dermal irritation study in the because the dietary exposure analysis pesticide chemical residue, including rabbit (slight irritant). Additionally, was based on worst-case assumptions, it all anticipated dietary exposures and all from a dermal sensitization study in the is highly unlikely that the proposed new other exposures for which there is guinea pig, it was determined that N6- uses of 6-benzyladenine on apples and reliable information.’’ This includes benzyladenine is not a dermal pistachios will result in adverse effects exposure through drinking water and in sensitizer. 2. Genotoxicity. From three to human health. residential settings, but does not include 2. Drinking water exposure. The occupational exposure. Section mutagenicity studies (Ames test, mouse micronucleus assay, and unscheduled proposed uses on apples and pistachios 408(b)(2)(C) of the FFDCA requires EPA are not expected to add potential to give special consideration to DNA synthesis assay in the rat), it was determined that N6-benzyladenine is exposure to drinking water. Soil exposure of infants and children to the leaching studies have suggested that 6- pesticide chemical residue in not mutagenic. 3. Developmental toxicity. The no benzyladenine is relatively immobile establishing a tolerance and to ‘‘ensure observed adverse effect levels (NOAEL) (Ref. 3), absorbing to sediment. Residues that there is a reasonable certainty that and the lowest observed adverse effect reaching surface waters from field no harm will result to infants and levels (LOAEL) for maternal and runoff should quickly absorb to children from aggregate exposure to the developmental toxicity in rats, sediment particles and be partitioned pesticide chemical residue....’’ respectively, were found to be 50 and from the water column. 6- Additionally, section 408(b)(2)(D) of the 175 mg/kg of body weight (bwt)/day, Benzyladenine also has low solubility in FFDCA requires that the Agency ± ° respectively. water, 76 2 mg/L at 20 C (Ref. 2), and consider available information 4. Subchronic toxicity. For rats of both detections in ground water are not concerning the cumulative effects of a sexes, the NOAEL was approximately expected. Together, these data indicate particular pesticide’s residues and 111 mg/kg of bwt/day and the LOAEL that residues are not expected in ‘‘other substances that have a common was approximately 304 mg/kg of bwt/ drinking water. mechanism of toxicity.’’ day. EPA performs a number of analyses to B. Other Non-Occupational Exposure determine the risks from aggregate IV. Aggregate Exposures The potential for non-dietary exposure to pesticide residues. First, In examining aggregate exposure, exposure to 6-benzyladenine residues EPA determines the toxicity of section 408 of the FFDCA directs EPA for the general population, including pesticides. Second, EPA examines to consider available information infants and children, is unlikely because exposure to the pesticide through food, concerning exposures from the pesticide the uses are limited to experimental drinking water, and through other residue in food and all other non- applications in apple and pistachio exposures that occur as a result of occupational exposures, including orchards. Because 6-benzyladenine is a pesticide use in residential settings. drinking water from ground water or naturally occurring cytokinin plant regulator (Ref. 4, 5, 6, 7, and 8), it is a III. Toxicological Profile surface water and exposure through pesticide use in gardens, lawns, or normal part of the human diet. The Consistent with section 408(b)(2)(D) buildings (residential and other indoor proposed experimental use rates are of the FFDCA, EPA has reviewed the uses). well below the toxicity NOAELs. The available scientific data and other residues indicate dietary exposures that relevant information in support of this A. Dietary Exposure are 0.03% and 0.01% of the chronic and action and considered its validity, 1. Food. Apple and pistachio field acute population adjusted doses, completeness and reliability and the trials performed in support of the respectively. Therefore, while there relationship of this information to temporary tolerance exemption request exists a great likelihood of prior human risk. EPA has also considered and the associated experimental use exposure for most, if not all, individuals available information concerning the permit yielded acceptable magnitude of to 6-benzyladenine, any increased variability of the sensitivities of major the residue data (Ref. 2). Residues were exposure due to the proposed

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experimental product would be VII. Other Considerations VIII. Conclusions negligible due to the lack of residue in A. Endocrine Disruptors Based on the toxicology information comparison with the toxicity NOAELs. submitted and reviewed previously, and V. Cumulative Effects EPA is required under the FFDCA as summarized in the June 1994 N6- amended by FQPA to develop a Benzyladenine RED (Ref. 1), there is a The Agency has considered the screening program to determine whether reasonable certainty that no harm will cumulative effects of 6-benzyladenine certain substances (including all result from aggregate exposure of and other substances in relation to a pesticide active and other ingredients) residues of 6-benzyladenine to the U.S. common mechanism of toxicity. These ‘‘may have an effect in humans that is population, including infants and considerations include the possible similar to an effect produced by a children, under reasonably foreseeable cumulative effects of such residues on naturally occurring estrogen, or other circumstances, when the biochemical infants and children. Based on the such endocrine effects as the pesticide is used in accordance with available information and data for 6- Administrator may designate.’’ good agricultural practices under the benzyladenine, no mammalian toxicity Following the recommendations of its conditions of the 2–year experimental is expected at the proposed Endocrine Disruptor Screening and program. This includes all anticipated experimental use rates. Therefore, no Testing Advisory Committee (EDSTAC), dietary exposures and all other cumulative effects are expected. EPA determined that there is no exposures for which there is reliable scientific basis for including, as part of information. The Agency has arrived at VI. Determination of Safety for U.S. this conclusion based on the data Population, Infants and Children the program, the androgen and thyroid hormone systems in addition to the submitted previously and summarized 1. U. S. population. The analysis estrogen hormone system. EPA also in the RED, as well as that data estimated that the chronic exposures for adopted EDSTAC’s recommendation submitted to support the temporary the overall U.S. population was that the program include evaluations of tolerance exemption and Experimental 0.000014 mg/kg/day (0.03% of the potential effects in wildlife. For Use Permit applications, demonstrating chronic population adjusted dose pesticide chemicals, EPA will use negligible dietary exposure in (cPAD)). The acute dietary estimated FIFRA and, to the extent that effects in comparison with the toxicity NOAELs. exposure was 0.000069 mg/kg/day wildlife may help determine whether a As a result, EPA establishes a temporary (0.01% of the acute population adjusted substance may have an effect in exemption from the tolerance dose (aPAD)) for the overall U.S. humans, FFDCA authority to require requirements pursuant to FFDCA 408(c) population. Critical exposure wildlife evaluations. As the science and (d) for residues of 6-benzyladenine commodity analysis showed that apple develops and resources allow, screening in or on apples and pistachios. juice contributed the most to dietary of additional hormone systems may be IX. Objections and Hearing Requests exposure for the overall population. Due added to the Endocrine Disruptor Under section 408(g) of the FFDCA, as to the low anticipated dietary intake of Screening Program (EDSP). When the amended by the FQPA, any person may 6-benzyladenine residues relative to the appropriate screening and/or testing file an objection to any aspect of this chronic and acute population adjusted protocols being considered under the regulation and may also request a doses, and the fact that actual exposure Agency’s EDSP have been developed, 6- hearing on those objections. The EPA will probably be considerably less benzyladenine may be subjected to procedural regulations which govern the because the dietary exposure analysis additional screening and/or testing to submission of objections and requests was made based on worst-case better characterize effects related to for hearings appear in 40 CFR part 178. assumptions, it is likely that the endocrine disruption. Although the procedures in those proposed new uses of 6-benzyladenine Based on available data, no endocrine regulations require some modification to on apples and pistachios will not result system-related effects have been reflect the amendments made to the in adverse effects to human health. identified with consumption of 6- FFDCA by the FQPA, EPA will continue 2. Infants and children. The analysis benzyladenine. To date, there is no to use those procedures, with estimated that the chronic exposures for evidence to suggest that 6- appropriate adjustments, until the the most highly exposed subgroup, non- benzyladenine affects the immune necessary modifications can be made. nursing infants, was 0.000085 mg/kg/ system, functions in a manner similar to The new section 408(g) of the FFDCA day (0.2% of the cPAD). The acute any known hormone, or that it acts as provides essentially the same process dietary estimated exposure was an endocrine disruptor. for persons to ‘‘object’’ to a regulation 0.000361 mg/kg/day (0.07% of aPAD) for an exemption from the requirement for the most highly exposed subgroup, B. Analytical Method of a tolerance issued by EPA under new non-nursing infants. Critical exposure section 408(d), as was provided in the The Agency is establishing a commodity analysis showed that apple old sections 408 and 409 of the FFDCA. temporary exemption from the juice contributed the most to dietary However, the period for filing objections requirement of a tolerance for the exposure for all infants. Due to the low is now 60 days, rather than 30 days. anticipated dietary intake of 6- reasons stated above. For the same benzyladenine residues relative to the reasons, the Agency has concluded that A. What Do I Need to Do to File an chronic and acute PAD, and the fact that an analytical method is not required for Objection or Request a Hearing? actual exposure will probably be enforcement purposes for 6- You must file your objection or considerably less because the dietary benzyladenine. request a hearing on this regulation in exposure analysis was made based on C. Codex Maximum Residue Level accordance with the instructions worst-case assumptions, it is likely that provided in this unit and in 40 CFR part the proposed new uses of 6- Currently, there are no Codex, 178. To ensure proper receipt by EPA, benzyladenine on apples and pistachios Canadian or Mexican maximum residue you must identify docket ID number will not result in adverse effects to levels for residues of 6-benzyladenine OPP–2002–0308 in the subject line on human health. in/on apples or pistachios. the first page of your submission. All

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requests must be in writing, and must be James Hollins, Information Resources tumours of tomato, Plant Cell and mailed or delivered to the Hearing Clerk and Services Division (7502C), Office of Environment (1989) 12:273-283. on or before April 7, 2003. Pesticide Programs, Environmental 5. Pechova, D., et al, Identification of 1. Filing the request. Your objection Protection Agency, 1200 Pennsylvania new aromatic cytokinins in plants, 17th must specify the specific provisions in Ave., NW., Washington, DC 20460– International Conference on Plant the regulation that you object to, and the 0001. Growth Substances, July 1-6, 2001. grounds for the objections (40 CFR 3. Copies for the Docket. In addition 6. Strnad, M., et al, 178.25). If a hearing is requested, the to filing an objection or hearing request Immunodectection and identification of objections must include a statement of with the Hearing Clerk as described in N6-(o-hydroxybenzylamino) purine as a the factual issues(s) on which a hearing Unit VIII.A., you should also send a naturally occurring cytokinin in is requested, the requestor’s contentions copy of your request to the PIRIB for its Populus x canadensis Moench cv on such issues, and a summary of any inclusion in the official record that is Robusta leaves, Plant Physiol. (1992) evidence relied upon by the objector (40 described in Unit I.B.1. Mail your 99:74-80. CFR 178.27). Information submitted in copies, identified by docket ID number 7. Strnad, M., Enzyme immunoassays connection with an objection or hearing OPP–2002–0308, to: Public Information of N6-benzyladenine and N6-(meta- request may be claimed confidential by and Records Integrity Branch, hydroxybenzyl)adenine cytokinins, J marking any part or all of that Information Resources and Services Plant Growth Regul. (1996) 15:179-188. information as CBI. Information so Division (7502C), Office of Pesticide 8. Van Staden, J. and N. R. Crouch, marked will not be disclosed except in Programs, Environmental Protection Benzyladenine and derivatives-their accordance with procedures set forth in Agency, 1200 Pennsylvania Ave., NW., significance and interconversion in 40 CFR part 2. A copy of the Washington, DC 20460–0001. In person plants, Plant Growth Regulation (1996) information that does not contain CBI or by courier, bring a copy to the 19:153-175. must be submitted for inclusion in the location of the PIRIB described in Unit XI. Statuatory and Executive Order public record. Information not marked I.B.1. You may also send an electronic Review confidential may be disclosed publicly copy of your request via e-mail to: opp- This final rule establishes an by EPA without prior notice. [email protected]. Please use an ASCII Mail your written request to: Office of exemption from the tolerance file format and avoid the use of special requirement under section 408(d) of the the Hearing Clerk (1900C), characters and any form of encryption. Environmental Protection Agency, 1200 FFDCA in response to a petition Copies of electronic objections and submitted to the Agency. The Office of Pennsylvania Ave., NW., Washington, hearing requests will also be accepted DC 20460–0001. You may also deliver Management and Budget (OMB) has on disks in WordPerfect 6.1/8.0 or exempted these types of actions from your request to the Office of the Hearing ASCII file format. Do not include any Clerk in Rm.104, Crystal Mall #2, 1921 review under Executive Order 12866, CBI in your electronic copy. You may entitled Regulatory Planning and Jefferson Davis Hwy., Arlington, VA. also submit an electronic copy of your The Office of the Hearing Clerk is open Review (58 FR 51735, October 4, 1993). request at many Federal Depository Because this rule has been exempted from 8 a.m. to 4 p.m., Monday through Libraries. Friday, excluding legal holidays. The from review under Executive Order telephone number for the Office of the B. When Will the Agency Grant a 12866 due to its lack of significance, Hearing Clerk is (703) 603–0061. Request for a Hearing? this rule is not subject to Executive 2. Tolerance fee payment. If you file A request for a hearing will be granted Order 13211, Actions Concerning an objection or request a hearing, you if the Administrator determines that the Regulations That Significantly Affect must also pay the fee prescribed by 40 material submitted shows the following: Energy Supply, Distribution, or Use (66 CFR 180.33(i) or request a waiver of that There is a genuine and substantial issue FR 28355, May 22, 2001). This final rule fee pursuant to 40 CFR 180.33(m). You of fact; there is a reasonable possibility does not contain any information must mail the fee to: EPA Headquarters that available evidence identified by the collections subject to OMB approval Accounting Operations Branch, Office requestor would, if established resolve under the Paperwork Reduction Act of Pesticide Programs, P.O. Box one or more of such issues in favor of (PRA), 44 U.S.C. 3501 et seq., or impose 360277M, Pittsburgh, PA 15251. Please the requestor, taking into account any enforceable duty or contain any identify the fee submission by labeling uncontested claims or facts to the unfunded mandate as described under it ‘‘Tolerance Petition Fees.’’ contrary; and resolution of the factual Title II of the Unfunded Mandates EPA is authorized to waive any fee issues(s) in the manner sought by the Reform Act of 1995 (UMRA) (Public requirement ‘‘when in the judgement of requestor would be adequate to justify Law 104–4). Nor does it require any the Administrator such a waiver or the action requested (40 CFR 178.32). special considerations under Executive refund is equitable and not contrary to Order 12898, entitled Federal Actions to the purpose of this subsection.’’ For X. References Address Environmental Justice in additional information regarding the 1. U.S. EPA, Reregistration Eligibility Minority Populations and Low-Income waiver of these fees, you may contact Decision (RED) N6-Benzyladenine, June Populations (59 FR 7629, February 16, James Tompkins by phone at (703) 305– 1994. 1994); or OMB review or any Agency 5697, by e-mail at 2. U.S. EPA; Memorandum; R. S. action under Executive Order 13045, [email protected], or by mailing a Jones to D. Greenway; October 2, 2002. entitled Protection of Children from request for information to Mr. Tompkins 3. Weigand, R., et al, Metabolism and Environmental Health Risks and Safety at Registration Division (7505C), Office Movement of N-[Phenylmethyl]-1H- Risks (62 FR 19885, April 23, 1997). of Pesticide Programs, Environmental Purin-6-Amine in Soils, 1976. This action does not involve any Protection Agency, 1200 Pennsylvania Unpublished study received January 13, technical standards that would require Ave., NW., Washington, DC 20460– 1977 for EPA Registration Number 275- Agency consideration of voluntary 0001. 32; submitted by Abbott Laboratories, consensus standards pursuant to section If you would like to request a waiver North Chicago, IL; CDL:095728-C. 12(d) of the National Technology of the tolerance objection fees, you must 4. Nandi, S. K., et al, Identification of Transfer and Advancement Act of 1995 mail your request for such a waiver to: cytokinins in primary crown gall (NTTAA), Public Law 104–113, section

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12(d) (15 U.S.C. 272 note). Since responsibilities between the Federal tolerance will expire on January 31, tolerances and exemptions that are Government and Indian tribes, as 2005. established on the basis of a petition specified in Executive Order 13175. [FR Doc. 03–2431 Filed 2–4–03; 8:45 am] under section 408(d) of the FFDCA, Thus, Executive Order 13175 does not BILLING CODE 6560–50–S such as the exemption in this final rule, apply to this rule. do not require the issuance of a XII. Submission to Congress and the ENVIRONMENTAL PROTECTION proposed rule, the requirements of the Comptroller General Regulatory Flexibility Act (RFA) (5 AGENCY U.S.C. 601 et seq.) do not apply. In The Congressional Review Act, 5 addition, the Agency has determined U.S.C. 801 et seq., as added by the Small 40 CFR Part 180 that this action will not have a Business Regulatory Enforcement [OPP–2002–0344; FRL–7289–7] substantial direct effect on States, on the Fairness Act of 1996, generally provides relationship between the national that before a rule may take effect, the Cyprodinil; Pesticide Tolerance government and the States, or on the agency promulgating the rule must AGENCY: Environmental Protection distribution of power and submit a rule report, which includes a Agency (EPA). responsibilities among the various copy of the rule, to each House of the ACTION: levels of government, as specified in Congress and to the Comptroller General Final rule. Executive Order 13132, entitled of the United States. EPA will submit a SUMMARY: This regulation establishes Federalism(64 FR 43255, August 10, report containing this rule and other tolerances for residues of cyprodinil in 1999). Executive Order 13132 requires required information to the U.S. Senate, or on the bushberry subgroup, caneberry EPA to develop an accountable process the U.S. House of Representatives, and subgroup, juneberry, lingonberry, to ensure ‘‘meaningful and timely input the Comptroller General of the United pistachio, salal and watercress. The by State and local officials in the States prior to publication of this final Interregional Research Project Number 4 development of regulatory policies that rule in the Federal Register. This final (IR-4) requested these tolerances under have federalism implications.’’ ‘‘Policies rule is not a ‘‘major rule ’’ as defined by the Federal Food, Drug, and Cosmetic that have federalism implications’’ is 5 U.S.C. 804(2). Act (FFDCA) , as amended by the Food defined in the Executive Order to List of Subjects in 40 CFR Part 180 Quality Protection Act of 1996 (FQPA). include regulations that have DATES: This regulation is effective ‘‘substantial direct effects on the States, Environmental protection, February 5, 2003. Objections and on the relationship between the national Administrative practice and procedure, requests for hearings, identified by government and the States, or on the Agricultural commodities, Pesticides docket ID number OPP–2002–0344, distribution of power and and pests, Reporting and recordkeeping must be received on or before April 7, responsibilities among the various requirements. 2003. levels of government.’’ This final rule Dated: January 16, 2003. ADDRESSES: Written objections and directly regulates growers, food Janet L. Andersen, hearing requests may besubmitted processors, food handlers and food Director, Biopesticides and Pollution electronically, by mail, or through hand retailers, not States. This action does not Prevention Division, Office of Pesticide delivery/courier. Follow the detailed alter the relationships or distribution of Programs. instructions as provided in Unit VI. of power and responsibilities established the SUPPLEMENTARY INFORMATION. by Congress in the preemption Therefore, 40 CFR chapter I is provisions of section 408(n)(4) of the amended as follows: FOR FURTHER INFORMATION CONTACT: FFDCA. For these same reasons, the Hoyt Jamerson, Registration Division PART 180—[AMENDED] Agency has determined that this rule (7505C), Office of Pesticide Programs, does not have any ‘‘tribal implications’’ Environmental Protection Agency, 1200 1. The authority citation for part 180 Pennsylvania Ave., NW.,Washington, as described in Executive Order 13175, continues to read as follows: entitled Consultation and Coordination DC 20460–0001; telephone number: with Indian Tribal Governments (65 FR Authority: 21 U.S.C. 321(q), 346(a) and (703) 308–9368; e-mail address: 67249, November 6, 2000). Executive 374. [email protected]. Order 13175, requires EPA to develop 2. Section 180.1150 of subpart D is SUPPLEMENTARY INFORMATION: an accountable process to ensure revised to read as follows: I. General Information ‘‘meaningful and timely input by tribal § 180.1150 6-Benzyladenine; exemption A. Does this Action Apply to Me? officials in the development of from the requirement of a tolerance. regulatory policies that have tribal You may be potentially affected by (a) The plant growth regulator 6- implications.’’ ‘‘Policies that have tribal this action if you are an agricultural benzyladenine is exempt from the implications’’ is defined in the producer, food manufacturer, or requirement of a tolerance when used as Executive Order to include regulations pesticide manufacturer. Potentially a fruit-thinning agent at an application that have ‘‘substantial direct effects on affected entities may include, but are rate not to exceed 30 grams of active one or more Indian tribes, on the not limited to: relationship between the Federal ingredient per acre in or on apples. • Crop production (NAICS Code 111) Government and the Indian tribes, or on (b) 6-Benzyladenine is temporarily • Animal production (NAICS Code the distribution of power and exempt from the requirement of a 112) responsibilities between the Federal tolerance in or on apples at ≤182 grams • Food manufacturing (NAICS Code Government and Indian tribes.’’ This of active ingredient per acre per season, 311) rule will not have substantial direct and in or on pistachio at ≤60 grams of • Pesticide manufacturing (NAICS effects on tribal governments, on the active ingredient per acre per season Code 32532) relationship between the Federal when used in accordance with the This listing is not intended to be Government and Indian tribes, or on the Experimental Use Permit 73049–EUP–2. exhaustive, but rather provides a guide distribution of power and The temporary exemption from a for readers regarding entities likely to be

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affected by this action. Other types of access the index listing of the contents residential settings, but does not include entities not listed in this unit could also of the official public docket, and to occupational exposure. Section be affected. The North American access those documents in the public 408(b)(2)(C) of the FFDCA requires EPA Industrial Classification System docket that are available electronically. to give special consideration to (NAICS) codes have been provided to Although not all docket materials may exposure of infants and children to the assist you and others in determining be available electronically, you may still pesticide chemical residue in whether this action might apply to access any of the publicly available establishing a tolerance and to ‘‘ensure certain entities. If you have any docket materials through the docket that there is a reasonable certainty that questions regarding the applicability of facility identified in Unit I.B.1. Once in no harm will result to infants and this action to a particular entity, consult the system, select ‘‘search,’’ then key in children from aggregate exposure to the the person listed under FOR FURTHER the appropriate docket ID number. pesticide chemical residue....’’ INFORMATION CONTACT. II. Background and Statutory Findings EPA performs a number of analyses to determine the risks from aggregate B. How Can I Get Copies of this In the Federal Register of May 1, 2002 Document and Other Related ( 67 FR 21671)(FRL–6833–4), EPA exposure to pesticide residues. For Information? issued a notice pursuant to section 408 further discussion of the regulatory 1. Docket. EPA has established an of FFDCA, 21 U.S.C. 346a, as amended requirements of section 408 of the official public docket for this action by FQPA (Public Law 104–170), FFDCA and a complete description of under docket identification (ID) number announcing the filing of pesticide the risk assessment process, see the final OPP–2002–0344. The official public petitions (PP 2E6359, 2E6365, 2E6377 rule on Bifenthrin Pesticide Tolerances docket consists of the documents and 2E6393) by IR-4, 681 U.S. Highway (62 FR 62961, November 26, 1997) specifically referenced in this action, #1 South, North Brunswick, NJ 08902– (FRL–5754–7). any public comments received, and 3390. That notice included a summary III. Aggregate Risk Assessment and other information related to this action. of the petitions prepared by Syngenta Determination of Safety Although a part of the official docket, Crop Protection, Inc., the registrant. the public docket does not include There were no comments received in Consistent with section 408(b)(2)(D) Confidential Business Information (CBI) response to the notice of filing. of the FFDCA, EPA has reviewed the or other information whose disclosure is The petitions requested that 40 CFR available scientific data and other restricted by statute. The official public 180.532 be amended by establishing relevant information in support of this docket is the collection of materials that tolerances for residues of the fungicide action. EPA has sufficient data to assess is available for public viewing at the cyprodinil, 4-cyclopropyl- 6-methyl- N- the hazards of and to make a Public Information and Records phenyl-2-pyrimidinamine, in or on the determination on aggregate exposure, Integrity Branch (PIRIB), Rm. 119, caneberry subgroup at 10.0 parts per consistent with section 408(b)(2) of the Crystal Mall #2, 1921 Jefferson Davis million (ppm) (2E6393), watercress at 20 FFDCA, for a tolerance for residues of Hwy., Arlington, VA. This docket ppm (2E6365), pistachio at 0.07 ppm cyprodinil on the caneberry subgroup at facility is open from 8:30 a.m. to 4 p.m., (2E6377) and the bushberry subgroup, 10.0 parts per million (ppm), watercress Monday through Friday, excluding legal lingonberry, juneberry, and salal, at 3.0 at 20 ppm, pistachio at 0.10 ppm and holidays. The docket telephone number ppm (2E6359). IR-4 subsequently the bushberry subgroup, lingonberry, is (703) 305–5805. revised the petition to propose the juneberry, and salal, at 3.0 ppm. EPA’s 2. Electronic access. You may access following tolerances for cyprodinil assessment of exposures and risks this Federal Register document residues in or on the caneberry associated with establishing the electronically through the EPA Internet subgroup at 10.0 parts per million tolerance follows. under the ‘‘Federal Register’’ listings at (ppm), watercress at 20 ppm, pistachio A. Toxicological Profile http://www.epa.gov/fedrgstr/. A at 0.10 ppm and the bushberry frequently updated electronic version of subgroup, lingonberry, juneberry, and EPA has evaluated the available 40 CFR part 180 is available at http:// salal, at 3.0 ppm. toxicity data and considered its validity, www.access.gpo.gov/nara/cfr/ Section 408(b)(2)(A)(i) of the FFDCA completeness, and reliability as well as cfrhtml_00/Title_40/40cfr180_00.html, a allows EPA to establish a tolerance (the the relationship of the results of the beta site currently under development. legal limit for a pesticide chemical studies to human risk. EPA has also To access the OPPTS Harmonized residue in or on a food) only if EPA considered available information Guidelines referenced in this document, determines that the tolerance is ‘‘safe.’’ concerning the variability of the go directly to the guidelines at http:// Section 408(b)(2)(A)(ii) of the FFDCA sensitivities of major identifiable www.epa.gov/opptsfrs/home/ defines ‘‘safe’’ to mean that‘‘there is a subgroups of consumers, including guidelin.htm. reasonable certainty that no harm will infants and children. The nature of the An electronic version of the public result from aggregate exposure to the toxic effects caused by cyprodinil are docket is available through EPA’s pesticide chemical residue, including discussed in Table 1 of this unit as well electronic public docket and comment all anticipated dietary exposures and all as the no observed adverse effect level system, EPA Dockets. You may use EPA other exposures for which there is (NOAEL) and the lowest observed Dockets at http://www.epa.gov/edocket/ reliable information.’’ This includes adverse effectlevel (LOAEL) from the to submit or view public comments, exposure through drinking water and in toxicity studies reviewed.

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TABLE 1.—SUBCHRONIC, CHRONIC, AND OTHER TOXICITY

Guideline No. Study Type Results

870.3100 90ÐDay oral toxicity mouse NOAEL = 73.3/103 (male/female (m/f)) milligram/kilogram/ day (mg/kg/day) LOAEL = 257/349 (m/f) mg/kg/day based on histopathological changes in the liver (m/f)

870.3100 90ÐDay oral toxicity rat NOAEL = 3.14 (mg/kg/day) LOAEL = 19 mg/kg/day based on increasedtubular kidney lesions in males

870.3150 90ÐDay oral-toxicity - dog NOAEL = 210/232 (m/f) mg/kg/day LOAEL = 560/581 mg/kg/day based on lowerbody-weight gains and decreased food consumption inboth sexes

870.3200 Carcinogenicity - mice NOAEL = 16.1 mg/kg/day LOAEL = 212.4 mg/kg/day based on a dose-related increase in the incidence of focal and multifocal hyperplasia of the exocrine pancreas in males No evidence of carcinogenicity

870.3700 Prenatal developmental - rat Maternal NOAEL = 200 mg/kg/day LOAEL = 1,000 mg/kg/day based on lower body-weight/ body-weight gain and reduced food consumption Developmental NOAEL = 200 mg/kg/day LOAEL = 1,000 mg/kg/day based on lowermean fetal weights and increased incidence of delayedossification

870.3700 Prenatal developmental - rabbit Maternal NOAEL = 150 mg/kg/day LOAEL = 400 mg/kg/day based on decreasedbody-weight gain Developmental NOAEL = 150 mg/kg/day LOAEL = 400 mg/kg/day based on slight increase of litters showing extra (13th) ribs

870.3800 Reproduction and fertility effects - rat Parental/Systemic NOAEL = 81 mg/kg/day LOAEL = 326 mg/kg/day based on lowerbody-weights in the F0 females during the pre-matingperiod. Reproductive/Developmental NOAEL = 81mg/kg/day LOAEL = 326 mg/kg/day based on decreasedpup weights (F1 and F2)

870.4100 Chronic toxicity dogs NOAEL = 65.63/67.99 (m/f) mg/kg/day LOAEL = 449.25/446.3 (m/f) mg/kg/day based on lower body-weight gains and decreased food consumption and food efficiency

870.4300 Chronic toxicity/Carcinogenicity(feeding) - rat NOAEL = 2.7 mg/kg/day LOAEL = 35.6 mg/kg/day based on degenerative liver lesions (spongiosis hepatis) in males No evidence of carcinogenicity

870.5265 and 870.5100 Gene Mutation In a reverse gene mutation assay withSalmonella typhimurium/Escherichia coli, cyprodinil was negative up to concentrations (≥1,250 µg/plate +/-S9) that produced reproducible cytotoxicity for the majority of strains. Compound insolubility was reported at ≥313 µg/ plate.

870.5300 Gene Mutation In a Chinese hamster V79 cell HGPRT forward gene mutation assay, cyprodinil was negative up to cytotoxic concentrations (≥96.0 µg/mL with S9) (≥24 µg/mL without S9).

870.5375 Cytogenetics/In vitro Chromosomal Aberration In an in vitro assay for chromosome aberrations in Chi- nese hamster ovary (CHO) cells, cyprodinil gave negative results up tocytotoxic concentrations (≥50 µg/mL without S9, 18Ð or 42Ðhour cell harvest or ≥25 µg/mL with S9, 18Ðhour cell harvest) or to the highest sub- cytotoxic concentration (50 µg/mL with S9, 42Ðhour cell harvest).

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TABLE 1.—SUBCHRONIC, CHRONIC, AND OTHER TOXICITY—Continued

Guideline No. Study Type Results

870.5395 Cytogenetics/In vivo bone marrow micronucleus In an in vivo bone marrow micronucleus assay, cyprodinil was negative when administered orally (gavage) at 5,000 mg/kg(HDT) to both sexes of Tif:MAGF mice. No signs of overt toxicity or clear evidence of cytotoxicity for the target organ were noted at any dose or sacrifice time.

870.5550 Unscheduled DNA Synthesis In an Unscheduled DNA Synthesis(UDS) assay in primary rat hepatocytes, cyprodinil was negative up to a cytotoxic concentration (80µg/mL).

870.7485 Metabolism and pharmacokinetics Single oral doses (0.5 or 100 mg/kg bw) of phenyl or pyrimidyl-radiolabelled cyprodinil (purity ≥98%) were administered toTif:RAIf(SPF) rats, with one low-dose group receiving unlabelled cyprodinil (purity ≥99%) for 2 weeks prior to treatment with radiolabelled compound. Absorption was very rapid (tcmax= 0.3 hours) with rapid clearance (tcmax/2=1.2 hours). A minimum of 75% of the administered dose was absorbed. Excretion was rapid and almost complete, with urine as the principle route of excretion (48Ð68%), and >90%of the administered dose detected in the urine and feces within 48 hours. Excretion, distribution and metabolite profiles were essentially independent of dose level, pretreatment, and type of label, although there were some quantitative differences sex-dependent qualitative differences in two urinary metabolite fractions.

870.7485 Metabolism and pharmacokinetics Excreta (Group D1 and D2) and bile (Group G1) from radiolabelled cyprodinil-treated Tif:RAIf(SPF) rats were used to characterize, isolateand identify cyprodinil metabolites. Eleven metabolites were isolated from urine, feces and bile, and the metabolic pathways in the rat were proposed. All urinary and biliary metabolites (with the exception of 7U) were conjugated with glucuronic acid or sulfonated, and excreted. Cyprodinil was almostcompletely metabolized by hydroxylation of the phenyl ring (position 4) or pyrimidine ring (position 5), followed by conjugation. An alternative pathwayinvolved oxidation of the phenyl ring followed by glucuronic acid conjugation. A quantitative sex difference was observed with respect to sulfonation ofthe major metabolite that formed 6U. The monosulfate metabolite (1U) was pre- dominant in females, whereas equal amounts of mono- and disulfate (6U) conjugates were noted in males. Most of the significant metabolites in feces were exocons of biliary metabolites (2U, 3U, 1G). These were assumed to be deconjugated in the intestines, partially reabsorbed into the generalcirculation, conjugated again, and eliminated renally. The major metabolic pathways of cyprodinil were not significantly influenced by the dose, treatment regimen, or sex of the animal.

B. Toxicological Endpoints animal data to humans and in the (SF) is retained due to concerns unique variations in sensitivity among members to the FQPA, this additional factor is The dose at which no adverse effects of the human population as well as applied to the RfD by dividing the RfD are observed (the NOAEL) from the other unknowns. An UF of 100 is by such additional factor. The acute or toxicology study identified as routinely used, 10X to account for chronic Population Adjusted Dose appropriate for use in risk assessment is interspecies differences and 10X for (aPAD or cPAD) is a modification of the used to estimate the toxicological level of concern (LOC). However, the lowest intraspecies differences. RfD to accommodate this type of FQPA dose at which adverse effects of concern For dietary risk assessment (other SF. are identified (the LOAEL) is sometimes than cancer) the Agency uses the UF to For non-dietary risk assessments used for risk assessment if no NOAEL calculate an acute or chronic reference (other than cancer) the UF is used to was achieved in the toxicology study dose (acute RfD or chronic RfD) where determine the LOC. For example, when selected. An uncertainty factor (UF) is the RfD is equal to the NOAEL divided 100 is the appropriate UF (10X to applied to reflect uncertainties inherent by the appropriate UF (RfD = NOAEL/ account for interspecies differences and in the extrapolation from laboratory UF). Where an additional safety factor 10X for intraspecies differences) the

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LOC is 100. To estimate risk, a ratio of risk which represents a probability of endpoint related to cancer effects the NOAEL to exposures (margin of occurrence of additional cancer cases though it may be a different value exposure (MOE) = NOAEL/exposure) is (e.g., risk is expressed as 1 x 10-6 or one derived from the dose response curve. calculated and compared to the LOC. in a million). Under certain specific To estimate risk, a ratio of the point of The linear default risk methodology circumstances, MOE calculations will departure to exposure (MOEcancer = point (Q*) is the primary method currently be used for the carcinogenic risk of departure/exposures) is calculated. A used by the Agency to quantify assessment. In this non-linear approach, summary of the toxicological endpoints carcinogenic risk. The Q* approach a ‘‘point of departure’’ is identified for cyprodinil used for human risk assumes that any amount of exposure below which carcinogenic effects are assessment is shown in Table 2 of this will lead to some degree of cancer risk. not expected. The point of departure is unit: A Q* is calculated and used to estimate typically a NOAEL based on an

TABLE 2.—SUMMARY OF TOXICOLOGICAL DOSE AND ENDPOINTS FOR CYPRODINIL FOR USE IN HUMAN RISK ASSESSMENT

Dose Used in Risk As- FQPA SF and Endpoint for Risk As- Exposure Scenario sessment, UF sessment Study and Toxicological Effects

Acute Dietary females 13Ð Developmental NOAEL = FQPA SF = 1X Developmental Toxicity - rabbit 50years of age 150 mg/kg/day aPAD = acute RfD ÷ FQPA SF = 1.5 Developmental LOAEL = 400 mg/kg/day UF = 100 mg/kg/day based on slight increase of litters Acute RfD = 1.5 mg/kg/ showing extra ribs (13th). day

Chronic Dietary all popu- NOAEL= 2.7 FQPA SF = 1X 2ÐYear Chronic Toxicity/Carcinogenicity- lations UF = 100 cPAD = chronic RfD ÷ FQPA SF = 0.03 rat Chronic RfD = 0.03 mg/kg/ mg/kg/day LOAEL = 35.6 mg/kg/day based on de- day generative liver lesions (spongiosis hepatis) in males.

Cancer (oral, dermal, inha- Classification: ‘‘not likely to be carcinogenic tohumans’’ lation) * The reference to the FQPA SF refers to any additional SF retained due to concerns unique tothe FQPA.

C. Exposure Assessment population subgroup, including the (GENEEC) or the Pesticide Root Zone/ 1. Dietary exposure from food and general U.S. population; therefore, an Exposure Analysis Modeling System feed uses. Tolerances have been acute dietary assessment for the general (PRZM/EXAMS) to estimate pesticide established (40 CFR 180.352) for the U.S. population or other subgroups was concentrations in surface water and SCI- residues of cyprodinil, in or on a variety not conducted. GROW, which predicts pesticide of raw agricultural commodities. Risk ii. Chronic exposure. In conducting concentrations in groundwater. In assessments were conducted by EPA to this chronic dietary risk assessment the general, EPA will use GENEEC (a tier 1 assess dietary exposures from Dietary Exposure Evaluation Model model) before using PRZM/EXAMS (a  cyprodinil in food as follows: (DEEM ) analysis evaluated the tier 2 model) for a screening-level i. Acute exposure. Acute dietary risk individual food consumption as assessment for surface water. The assessments are performed for a food- reported by respondents in the USDA GENEEC model is a subset of the PRZM/ use pesticide if a toxicological study has 1989–1992 nationwide Continuing EXAMS model that uses a specific high- indicated the possibility of an effect of Surveys of Food Intake by Individuals end runoff scenario for pesticides. concern occurring as a result of a one (CSFII) and accumulated exposure to GENEEC incorporates a farm pond day or single exposure. The Dietary the chemical for each commodity. The scenario, while PRZM/EXAMS Exposure Evaluation Model (DEEM) following assumptions were made for incorporate an index reservoir analysis evaluated the individual food the chronic exposure assessments: environment in place of the previous consumption as reported by 100% crop treated (PCT) and tolerance- pond scenario. The PRZM/EXAMS respondents in the USDA insert 1989– level residues for cyprodinil on all model includes a percent crop area treated crops. This assessment was a 1992 nationwide Continuing Surveys of factor as an adjustment to account for Tier I analysis. Food Intake by Individuals (CSFII) and the maximum percent crop coverage 2. Dietary exposure from drinking accumulated exposure to the chemical within a watershed or drainage basin. for each commodity. The following water. The Agency lacks sufficient assumptions were made for the acute monitoring exposure data to complete a None of these models include exposure assessments: 100% crop comprehensive dietary exposure consideration of the impact processing treated (PCT) and tolerance-level analysis and risk assessment for (mixing, dilution, or treatment) of raw residues for cyprodinil on all treated cyprodinil in drinking water. Because water for distribution as drinking water crops. This assessment was a Tier I the Agency does not have would likely have on the removal of analysis. However, the only acute comprehensive monitoring data, pesticides from the source water. The endpoint identified was for the drinking water concentration estimates primary use of these models by the population subgroup females 13–50 are made by reliance on simulation or Agency at this stage is to provide a years old based on a slight increase of modeling taking into account data on coarse screen for sorting out pesticides litters showing extra ribs (13th). No the physical characteristics of for which it is highly unlikely that effects that could be attributed to a cyprodinil. drinking water concentrations would single exposure were observed (no end The Agency uses the Generic ever exceed human health levels of point was chosen) for any other Estimated Environmental Concentration concern.

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Since the models used are considered chemicals have a common mechanism • iv. There are no data deficiencies for to be screening tools in the risk of toxicity and to evaluate the pre- and/or post-natal exposure and assessment process, the Agency does cumulative effects of such chemicals, hence there are no residual not use estimated environmental see the final rule for Bifenthrin Pesticide uncertainties. concentrations (EECs) from these Tolerances (62 FR 62961, November 26, • v. Food and drinking water exposure models to quantify drinking water 1997). assessments will notunderestimate the exposure and risk as a percent of D. Safety Factor for Infants and potential exposure for all populations, reference dose or percent of population Children including infants and children. adjusted dose. Instead, drinking water levels of comparison (DWLOCs) are 1.In general. Section 408 of the E. Aggregate Risks and Determination of calculated and used as a point of FFDCA provides that EPA shall apply Safety comparison against the model estimates an additional tenfold margin of safety To estimate total aggregate exposure of a pesticide’s concentration in water. for infants and children in the case of to a pesticide from food, drinking water, DWLOCs are theoretical upper limits on threshold effects to account for prenatal and residential uses, the Agency a pesticide’s concentration in drinking and postnatal toxicity and the calculates DWLOCs which are used as a water in light of total aggregate exposure completeness of the data base on point of comparison against the model to a pesticide in food, and from toxicity and exposure unless EPA estimates of a pesticide’s concentration residential uses. Since DWLOCs address determines that a different margin of in water (EECs). DWLOC values are not total aggregate exposure to cyprodinil safety will be safe for infants and regulatory standards for drinking water. they are further discussed in the children. Margins of safety are DWLOCs are theoretical upper limits on aggregate risk sections below. incorporated into EPA risk assessments a pesticide’s concentration in drinking Based on the PRZM/EXAMS and SCI- either directly through use of a MOE water in light of total aggregate exposure GROW models the estimated analysis or through using uncertainty to a pesticide in food and residential environmental concentrations (EECs) of (safety) factors in calculating a dose uses. In calculating a DWLOC, the cyprodinil for acute exposures are level that poses no appreciable risk to Agency determines how much of the estimated to be 32 parts per billion humans. acceptable exposure (i.e., the PAD) is 2. Prenatal and postnatal sensitivity. (ppb) for surface water and 0.04 ppb for available for exposure through drinking There is no evidence of increased ground water. The EECs for chronic water [e.g., allowable chronic water susceptibility of rat or rabbit fetuses exposures are estimated to be 6 ppb for exposure (mg/kg/day) = cPAD - (average followingin utero exposure in the surface water and 0.04 ppb for ground food + residential exposure)]. This developmental studies with cyprodinil. water. allowable exposure through drinking 3. From non-dietary exposure. The There is no evidence of increased water is used to calculate a DWLOC. term ‘‘residential exposure’’ is used in susceptibility of young rats in the A DWLOC will vary depending on the this document to refer to non- reproduction study with cyprodinil. occupational, non-dietary exposure 3. Conclusion. With the exception of toxic endpoint, drinking water (e.g., for lawn and garden pest control, missing 21/28–day dermal- toxicity and consumption, and body weights. Default indoor pest control, termiticides, and 28–day inhalation-toxicity studies in body weights and consumption values flea and tick control on pets). rats, there is a complete toxicity data as used by the USEPA are used to Cyprodinil is not registered for use on base for cyprodinil and exposure data calculate DWLOCs: 2 liter (L)/70 kg any sites that would result in residential are complete or are estimated based on (adult male), 2L/60 kg (adult female), exposure. data that reasonably accounts for and 1L/10 kg (child). Default body 4. Cumulative exposure to substances potential exposures. Since there are no weights and drinking water with a common mechanism of toxicity. residential uses for cyprodinil the only consumption values vary on an Section 408(b)(2)(D)(v) of the FFDCA exposure route to infants and children individual basis. This variation will be requires that, when considering whether is the oral route, for which the toxicity taken into account in more refined to establish, modify, or revoke a and exposure data base is complete. screening-level and quantitative tolerance, the Agency consider Therefore dermal and inhalation- drinking water exposure assessments. ‘‘available information’’ concerning the toxicity studies, are not needed to assess Different populations will have different cumulative effects of a particular risk to infants and children and EPA DWLOCs. Generally, a DWLOC is pesticide’s residues and ‘‘other determined that the 10X safety factor to calculated for each type of risk substances that have a common protect infants and children should be assessment used: Acute, short-term, mechanism of toxicity.’’ reduced to 1X. intermediate-term, chronic, and cancer. EPA does not have, at this time, The FQPA 10X safety factor is When EECs for surface water and available data to determine whether removed because: groundwater are less than the calculated cyprodinil has a common mechanism of • i. There are currently no registered DWLOCs, EPA concludes with toxicity with other substances or how to or proposed residential(non- reasonable certainty that exposures to include this pesticide in a cumulative occupational) uses of cyprodinil. the pesticide in drinking water (when risk assessment. Unlike other pesticides • ii. There was no evidence considered along with other sources of for which EPA has followed a (qualitative or quantitative) of increased exposure for which EPA has reliable cumulative risk approach based on a susceptibility in the developmental rat data) would not result in unacceptable common mechanism of toxicity, or rabbit study following in utero levels of aggregate human health risk at cyprodinil does not appear to produce exposure or in the two-generation this time. Because EPA considers the a toxic metabolite produced by other reproduction study following pre- or aggregate risk resulting from multiple substances. For the purposes of this post-natal exposure. exposure pathways associated with a tolerance action, therefore, EPA has not • iii. There was also no evidence of a pesticide’s uses, levels of comparison in assumed that cyprodinil has a common neurodevelopmental effect in the rat or drinking water may vary as those uses mechanism of toxicity with other rabbit developmental toxicity studies or change. If new uses are added in the substances. For information regarding in the rat two-generation reproductive- future, EPA will reassess the potential EPA’s efforts to determine which toxicity study. impacts of residues of the pesticide in

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drinking water as a part of the aggregate subpopulation females 13–50 years old, calculating DWLOCs and comparing risk assessment process. the only population for whom an effect them to the EECs for surface and ground 1. Acute risk. Using the exposure attributable to an acute exposure could water, EPA does not expect the assumptions discussed in this unit for be observed. In addition, there is aggregate exposure to exceed 100% of acute exposure, the acute dietary potential for acute dietary exposure to the aPAD, as shown in Table 3 of this exposure from food to cyprodinil will cyprodinil in drinking water. After unit: occupy <1% of the aPAD for the

TABLE 3.—AGGREGATE RISK ASSESSMENT FOR ACUTE EXPOSURE TO CYPRODINIL

Surface Ground Acute Population Subgroup aPAD (mg/ % aPAD Water EEC Water EEC DWLOC kg) (Food) (ppb) (ppb) (ppb)

Females 13Ð50 years old 1.5 <1.0 32 0.04 44,000

2. Chronic risk.Using the exposure cPAD for children 1–6 years old. There chronic dietary exposure to cyprodinil assumptions described in this unit for are no residential uses for cyprodinil in drinking water. After calculating chronic exposure, EPA has concluded that result in chronic residential DWLOCs and comparing them to the that exposure to cyprodinil from food exposure to cyprodinil. Based the use EECs for surface and ground water, EPA will utilize 7.4% of the cPAD for the pattern, chronic residential exposure to does not expect the aggregate exposure U.S. population, 24% of the cPAD for residues of cyprodinil is not expected. to exceed 100% of the cPAD, as shown all infants (< 1 year old) and 22% of the In addition, there is potential for in Table 4 of this unit:

TABLE 4.— AGGREGATE RISK ASSESSMENT FOR CHRONIC (NON-CANCER) EXPOSURE TO CYPRODINIL

Surface Ground Chronic Population Subgroup cPAD mg/ % cPAD Water EEC Water EEC DWLOC kg/day (Food) (ppb) (ppb) (ppb)

U.S. Population 0.03 7.4 6 0.04 970

All Infants (< 1 year old) 0.03 24 6 0.04 230

Children 1Ð6 years old 0.03 22 6 0.04 230

Children 7Ð12 years old 0.03 9.1 6 0.04 270

Females 13Ð50years old 0.03 5.3 6 0.04 1,000

3. Short- and intermediate-term risk. IV. Other Considerations been the subject of acceptable Agency Short- and intermediate-term aggregate petition method validations on stone A. Analytical Enforcement Methodology exposure take into account residential fruits and almond nutmeat and hulls. exposure plus chronic exposure to food The results of Multiresidue Method B. International Residue Limits and water (considered to be a testing of cyprodinil and its metabolite CGA–232449 have been forwarded to background exposure level). There are no Mexican, Canadian or the Food and Drug Administration Cyprodinil is not registered for use on Codex maximum residue limits (FDA). Cyprodinil was tested according any sites that would result in residential established for cyprodinil in/on to the FDA Multiresidue protocols exposure. Therefore, the aggregate risk caneberries, bushberries, pistachios and (Protocols C, D, and E), and acceptable is the sum of the risk from food and watercress, and thus no compatibility recoveries were obtained for cyprodinil water, which do not exceed the issues to be reconciled. fortified in apples at 0.50 ppm using Agency’s level of concern. Protocol D. The petitioner is proposing C. Conditions 5. Aggregate cancer risk for U.S. the Method AG–631A as a tolerance population. Cyprodinil has been enforcement method for residues of The Agency is requiring as conditions classified as ‘‘not likely to be cyprodinil in/on the subject crops. This for registration the following:An carcinogenic in humans’’ based on the method, entitled ‘‘Analytical Method for acceptable 21/28–day dermal-toxicity results of a carcinogenicity study in the Determination of Residues of CGA– study in rats (GLN 870.3200). A 28–day mice and the combined chronic toxicity 219417 in Crops by High Performance inhalation-toxicity study in rats (GLN and carcinogenicity study in rats. Liquid Chromatography With Column 870.3465) Therefore, cyprodinil is not expected to Switching,’’ is a reissue of Methods AG– V. Conclusion pose a cancer risk to humans. 631 and REM 141.01. The method 6. Determination of safety. Based on includes confirmatory procedures using Therefore, the tolerance is established these risk assessments, EPA concludes gas chromatography/nitrogen/ for residues of cyprodinil on the that there is a reasonable certainty that phosphorus detector (GC/NPD). The caneberry subgroup at 10.0 ppm, no harm will result to the general method has successfully undergone watercress at 20 ppm, pistachio at 0.10 population, and to infants and children radiovalidation using 14C-labeled tomato ppm and the bushberry subgroup, from aggregate exposure to cyprodinil samples and independent laboratory lingonberry, juneberry, and salal, at 3.0 residues. validation. In addition, the method has ppm.

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VI. Objections and Hearing Requests your request to the Office of the Hearing ASCII file format. Do not include any Under section 408(g) of the FFDCA, as Clerk in Rm.104, Crystal Mall #2, 1921 CBI in your electronic copy. You may amended by the FQPA, any person may Jefferson Davis Hwy., Arlington, VA. also submit an electronic copy of your file an objection to any aspect of this The Office of the Hearing Clerk is open request at many Federal Depository regulation and may also request a from 8 a.m. to 4 p.m., Monday through Libraries. Friday, excluding legal holidays. The hearing on those objections. The EPA B. When Will the Agency Grant a telephone number for the Office of the procedural regulations which govern the Request for a Hearing? submission of objections and requests Hearing Clerk is (703) 603–0061. 2. Tolerance fee payment. If you file A request for a hearing will be granted for hearings appear in 40 CFR part 178. an objection or request a hearing, you if the Administrator determines that the Although the procedures in those must also pay the fee prescribed by 40 material submitted shows the following: regulations require some modification to CFR 180.33(i) or request a waiver of that There is a genuine and substantial issue reflect the amendments made to the fee pursuant to 40 CFR 180.33(m). You of fact; there is a reasonable possibility FFDCA by the FQPA, EPA will continue must mail the fee to: EPA Headquarters that available evidence identified by the to use those procedures, with Accounting Operations Branch, Office requestor would, if established resolve appropriate adjustments, until the of Pesticide Programs, P.O. Box one or more of such issues in favor of necessary modifications can be made. 360277M, Pittsburgh, PA 15251. Please the requestor, taking into account The new section 408(g) of the FFDCA identify the fee submission by labeling uncontested claims or facts to the provides essentially the same process it ‘‘Tolerance Petition Fees.’’ contrary; and resolution of the factual for persons to ‘‘object’’ to a regulation EPA is authorized to waive any fee issues(s) in the manner sought by the for an exemption from the requirement requirement ‘‘when in the judgement of requestor would be adequate to justify of a tolerance issued by EPA under new the Administrator such a waiver or the action requested (40 CFR 178.32). section 408(d) of FFDCA, as was refund is equitable and not contrary to VII. Statutory and Executive Order provided in the old sections 408 and the purpose of this subsection.’’ For Reviews 409 of the FFDCA. However, the period additional information regarding the for filing objections is now 60 days, waiver of these fees, you may contact This final rule establishes a tolerance rather than 30 days. James Tompkins by phone at (703) 305– under section 408(d) of the FFDCA in response to a petition submitted to the A. What Do I Need to Do to File an 5697, by e-mail at Agency. The Office of Management and Objection or Request a Hearing? [email protected], or by mailing a request for information to Mr. Tompkins Budget (OMB) has exempted these types You must file your objection or at Registration Division (7505C), Office of actions from review under Executive request a hearing on this regulation in of Pesticide Programs, Environmental Order 12866, entitled Regulatory accordance with the instructions Protection Agency, 1200 Pennsylvania Planning and Review (58 FR 51735, provided in this unit and in 40 CFR part Ave., NW., Washington, DC 20460– October 4, 1993). Because this rule has 178. To ensure proper receipt by EPA, 0001. been exempted from review under you must identify docket ID number If you would like to request a waiver Executive Order 12866 due to its lack of –OPP–2002–0344 in the subject line on of the tolerance objection fees, you must significance, this rule is not subject to the first page of your submission. All mail your request for such a waiver to: Executive Order 13211, Actions requests must be in writing, and must be James Hollins, Information Resources Concerning Regulations That mailed or delivered to the Hearing Clerk and Services Division (7502C), Office of Significantly Affect Energy Supply, on or before April 7, 2003. Pesticide Programs, Environmental Distribution, or Use (66 FR 28355, May 1. Filing the request. Your objection Protection Agency, 1200 Pennsylvania 22, 2001). This final rule does not must specify the specific provisions in Ave., NW., Washington, DC 20460– contain any information collections the regulation that you object to, and the 0001. subject to OMB approval under the grounds for the objections (40 CFR 3. Copies for the Docket. In addition Paperwork Reduction Act (PRA), 44 178.25). If a hearing is requested, the to filing an objection or hearing request U.S.C. 3501 et seq., or impose any objections must include a statement of with the Hearing Clerk as described in enforceable duty or contain any the factual issues(s) on which a hearing Unit VI.A., you should also send a copy unfunded mandate as described under is requested, the requestor’s contentions of your request to the PIRIB for its Title II of the Unfunded Mandates on such issues, and a summary of any inclusion in the official record that is Reform Act of 1995 (UMRA) (Public evidence relied upon by the objector (40 described in Unit I.B.1. Mail your Law 104–4). Nor does it require any CFR 178.27). Information submitted in copies, identified by docket ID number special considerations under Executive connection with an objection or hearing OPP–2002–0344, to: Public Information Order 12898, entitled Federal Actions to request may be claimed confidential by and Records Integrity Branch, Address Environmental Justice in marking any part or all of that Information Resources and Services Minority Populations and Low-Income information as CBI. Information so Division (7502C), Office of Pesticide Populations (59 FR 7629, February 16, marked will not be disclosed except in Programs, Environmental Protection 1994); or OMB review or any Agency accordance with procedures set forth in Agency, 1200 Pennsylvania Ave., NW., action under Executive Order 13045, 40 CFR part 2. A copy of the Washington, DC 20460–0001. In person entitled Protection of Children from information that does not contain CBI or by courier, bring a copy to the Environmental Health Risks and Safety must be submitted for inclusion in the location of the PIRIB described in Unit Risks (62 FR 19885, April 23, 1997). public record. Information not marked I.B.1. You may also send an electronic This action does not involve any confidential may be disclosed publicly copy of your request via e-mail to: opp- technical standards that would require by EPA without prior notice. [email protected]. Please use an ASCII Agency consideration of voluntary Mail your written request to: Office of file format and avoid the use of special consensus standards pursuant to section the Hearing Clerk (1900C), characters and any form of encryption. 12(d) of the National Technology Environmental Protection Agency, 1200 Copies of electronic objections and Transfer and Advancement Act of 1995 Pennsylvania Ave., NW., Washington, hearing requests will also be accepted (NTTAA), Public Law 104–113, section DC 20460–0001. You may also deliver on disks in WordPerfect 6.1/8.0 or 12(d) (15 U.S.C. 272 note). Since

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tolerances and exemptions that are Government and Indian tribes, as * * * * * established on the basis of a petition specified in Executive Order 13175. [FR Doc. 03–2771 Filed 2–4–03; 8:45 am] under section 408(d) of the FFDCA, Thus, Executive Order 13175 does not BILLING CODE 6560–50–S such as the tolerance in this final rule, apply to this rule. do not require the issuance of a VIII. Submission to Congress and the ENVIRONMENTAL PROTECTION proposed rule, the requirements of the Comptroller General Regulatory Flexibility Act (RFA) (5 AGENCY U.S.C. 601 et seq.) do not apply. In The Congressional Review Act, 5 addition, the Agency has determined U.S.C. 801 et seq., as added by the Small 40 CFR Part 180 that this action will not have a Business Regulatory Enforcement [OPP–2002–0355; FRL–7285–9] substantial direct effect on States, on the Fairness Act of 1996, generally provides relationship between the national that before a rule may take effect, the Thiophanate Methyl; Pesticide government and the States, or on the agency promulgating the rule must Tolerance for Emergency Exemptions distribution of power and submit a rule report, which includes a responsibilities among the various copy of the rule, to each House of the AGENCY: Environmental Protection levels of government, as specified in Congress and to the Comptroller General Agency (EPA). Executive Order 13132, entitled of the United States. EPA will submit a ACTION: Final rule. Federalism (64 FR 43255, August 10, report containing this rule and other 1999). Executive Order 13132 requires required information to the U.S. Senate, SUMMARY: This regulation establishes a EPA to develop an accountable process the U.S. House of Representatives, and time-limited tolerance for residues of to ensure ‘‘meaningful and timely input the Comptroller General of the United thiophanate methyl and its metabolite by State and local officials in the States prior to publication of this final (methyl 2-benzimidazoyl carbamate development of regulatory policies that rule in the Federal Register. This final (MBC)) in or on mushrooms. This action have federalism implications.’’ ‘‘Policies rule is not a ‘‘major rule’’ as defined by is in response to EPA’s granting of an that have federalism implications’’ is 5 U.S.C. 804(2). emergency exemption under section 18 defined in the Executive order to of the Federal Insecticide, Fungicide, List of Subjects in 40 CFR Part 180 include regulations that have and Rodenticide Act (FIFRA) authorizing use of the pesticide on ‘‘substantial direct effects on the States, Environmental protection, mushroom spawn. This regulation on the relationship between the national Administrative practice and procedure, establishes a maximum permissible government and the States, or on the Agricultural commodities, Pesticides level for residues of thiophanate methyl distribution of power and and pests, Reporting and recordkeeping in this food commodity. The tolerance responsibilities among the various requirements. levels of government.’’ This final rule will expire and is revoked on December Dated: January 24, 2003. directly regulates growers, food 31, 2004. processors, food handlers and food Peter Caulkins, DATES: This regulation is effective retailers, not States. This action does not Acting Director, Registration Division, Office February 5, 2003. Objections and alter the relationships or distribution of of Pesticide Programs. requests for hearings, identified by power and responsibilities established Therefore, 40 CFR chapter I is docket ID number OPP–2002–0355, by Congress in the preemption amended as follows: must be received on or before April 7, provisions of section 408(n)(4) of the 2003. FFDCA. For these same reasons, the PART 180—[AMENDED] ADDRESSES: Written objections and Agency has determined that this rule hearing requests may be submitted does not have any ‘‘tribal implications’’ 1. The authority citation for part 180 electronically, by mail, or through hand as described in Executive Order 13175, continues to read as follows: delivery/courier. Follow the detailed entitled Consultation and Coordination Authority: 21 U.S.C. 321(q), 346(a) and instructions as provided in Unit VII. of with Indian Tribal Governments (65 FR 371. the SUPPLEMENTARY INFORMATION. 67249, November 6, 2000). Executive 2. Section 180.532 is amended by FOR FURTHER INFORMATION CONTACT: Order 13175, requires EPA to develop adding alphabetically the following Andrea Conrath, Registration Division an accountable process to ensure commodities to the table in paragraph (7505C), Office of Pesticide Programs, ‘‘meaningful and timely input by tribal (a)(1) to read as follows: Environmental Protection Agency, 1200 officials in the development of Pennsylvania Ave., NW., Washington, regulatory policies that have tribal § 180.532 Cyprodinil; tolerances DC 20460–0001; telephone number: implications.’’ ‘‘Policies that have tribal forresidues. (703) 308–9356; e-mail address: implications’’ is defined in the (a) * * * [email protected]. Executive order to include regulations that have ‘‘substantial direct effects on (1) * * * SUPPLEMENTARY INFORMATION: one or more Indian tribes, on the Commodity Parts per million I. General Information relationship between the Federal A. Does this Action Apply to Me? Government and the Indian tribes, or on ***** the distribution of power and Bushberry subgroup 13B 3.0 You may be potentially affected by responsibilities between the Federal Caneberry subgroup 13A 10 this action if you are an agricultural Government and Indian tribes.’’ This *****producer, food manufacturer, or rule will not have substantial direct Juneberry ...... 3.0 pesticide manufacturer. Potentially effects on tribal governments, on the Lingonberry ...... 3.0 affected entities may include, but are relationship between the Federal Pistachio ...... 0.10 not limited to: Government and Indian tribes, or on the *****• Crop producers (NAICS 111) Salal ...... 3.0 • distribution of power and Watercress ...... 20 Animal producers (NAICS 112) responsibilities between the Federal • Food manufacturing (NAICS 311)

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• Pesticide manufacturing (NAICS the system, select ‘‘search,’’ then key in exist which require such exemption.’’ 32532) the appropriate docket ID number. This provision was not amended by the This listing is not intended to be Food Quality Protection Act of 1996 II. Background and Statutory Findings exhaustive, but rather provides a guide (FQPA). EPA has established regulations for readers regarding entities likely to be EPA, on its own initiative, in governing such emergency exemptions affected by this action. Other types of accordance with sections 408(e) and 408 in 40 CFR part 166. entities not listed in this unit could also (l)(6) of the Federal Food, Drug, and be affected. The North American Cosmetic Act (FFDCA), 21 U.S.C. 346a, III. Emergency Exemptions for Industrial Classification System is establishing a tolerance for residues of Thiophanate Methyl on Mushroom and (NAICS) codes have been provided to the fungicide thiophanate methyl and FFDCA Tolerances assist you and others in determining its metabolite (methyl 2-benzimidazoyl Benomyl has historically been used in whether this action might apply to carbamate (MBC)), in or on mushroom mushroom production to control fungal certain entities. If you have any at 0.01 parts per million (ppm). This pathogens, including one of the most questions regarding the applicability of tolerance will expire and is revoked on serious, green mold (Trichoderma this action to a particular entity, consult December 31, 2004. EPA will publish a aggresivum). The registrant’s recent the person listed under FOR FURTHER document in the Federal Register to cancellation of benomyl has left INFORMATION CONTACT. remove the revoked tolerance from the mushroom growers in Delaware, Code of Federal Regulations. Maryland, and Pennsylvania without B. How Can I Get Copies of this Section 408(l)(6) of the FFDCA sufficient means to control this disease, Document and Other Related requires EPA to establish a time-limited as there are no available alternatives. Information? tolerance or exemption from the Significant economic losses are 1. Docket. EPA has established an requirement for a tolerance for pesticide expected without the requested use of official public docket for this action chemical residues in food that will thiophanate methyl. EPA has authorized under docket identification (ID) number result from the use of a pesticide under under FIFRA section 18 the use of OPP–2002–0355. The official public an emergency exemption granted by thiophanate methyl on mushroom docket consists of the documents EPA under section 18 of FIFRA. Such spawn for control of green mold in specifically referenced in this action, tolerances can be established without Delaware, Maryland, and Pennsylvania. any public comments received, and providing notice or period for public After having reviewed their other information related to this action. comment. EPA does not intend for its submissions, EPA concurs that Although a part of the official docket, actions on section 18-related tolerances emergency conditions exist for these the public docket does not include to set binding precedents for the States. Confidential Business Information (CBI) application of section 408 of the FFDCA As part of its assessment of this or other information whose disclosure is and the new safety standard to other emergency exemption, EPA assessed the restricted by statute. The official public tolerances and exemptions. Section potential risks presented by residues of docket is the collection of materials that 408(e) of the FFDCA allows EPA to thiophanate methyl in or on mushroom. is available for public viewing at the establish a tolerance or an exemption In doing so, EPA considered the safety Public Information and Records from the requirement of a tolerance on standard in section 408(b)(2) of the Integrity Branch (PIRIB), Rm. 119, its own initiative, i.e., without having FFDCA, and EPA decided that the Crystal Mall #2, 1921 Jefferson Davis received any petition from an outside necessary tolerance under section Hwy., Arlington, VA. This docket party. 408(l)(6) of the FFDCA would be facility is open from 8:30 a.m. to 4 p.m., Section 408(b)(2)(A)(i) of the FFDCA consistent with the safety standard and Monday through Friday, excluding legal allows EPA to establish a tolerance (the with FIFRA section 18. Consistent with holidays. The docket telephone number legal limit for a pesticide chemical the need to move quickly on the is (703) 305–5805. residue in or on a food) only if EPA emergency exemption in order to 2. Electronic access. You may access determines that the tolerance is ‘‘safe.’’ address an urgent non-routine situation this Federal Register document Section 408(b)(2)(A)(ii) of the FFDCA and to ensure that the resulting food is electronically through the EPA Internet defines ‘‘safe’’ to mean that ‘‘there is a safe and lawful, EPA is issuing this under the ‘‘Federal Register’’ listings at reasonable certainty that no harm will tolerance without notice and http://www.epa.gov/fedrgstr/. A result from aggregate exposure to the opportunity for public comment as frequently updated electronic version of pesticide chemical residue, including provided in section 408(l)(6) of the 40 CFR part 180 is available at http:// all anticipated dietary exposures and all FFDCA. Although this tolerance will www.access.gpo.gov/nara/cfr/ other exposures for which there is expire and is revoked on December 31, cfrhtml_00/Title_40/40cfr180_00.html, a reliable information.’’ This includes 2004, under section 408(l)(5) of the beta site currently under development. exposure through drinking water and in FFDCA, residues of the pesticide not in An electronic version of the public residential settings, but does not include excess of the amounts specified in the docket is available through EPA’s occupational exposure. Section tolerance remaining in or on mushroom electronic public docket and comment 408(b)(2)(C) of the FFDCA requires EPA after that date will not be unlawful, system, EPA Dockets. You may use EPA to give special consideration to provided the pesticide is applied in a Dockets at http://www.epa.gov/edocket/ exposure of infants and children to the manner that was lawful under FIFRA, to submit or view public comments, pesticide chemical residue in and the residues do not exceed a level access the index listing of the contents establishing a tolerance and to ‘‘ensure that was authorized by this tolerance at of the official public docket, and to that there is a reasonable certainty that the time of that application. EPA will access those documents in the public no harm will result to infants and take action to revoke this tolerance docket that are available electronically. children from aggregate exposure to the earlier if any experience with, scientific Although not all docket materials may pesticide chemical residue. . . .’’ data on, or other relevant information be available electronically, you may still Section 18 of FIFRA authorizes EPA on this pesticide indicate that the access any of the publicly available to exempt any Federal or State agency residues are not safe. docket materials through the docket from any provision of FIFRA, if EPA Because this tolerance is being facility identified in Unit I.B.1. Once in determines that ‘‘emergency conditions approved under emergency conditions,

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EPA has not made any decisions about exposure assessments with respect to EPA assessed risk scenarios for whether thiophanate methyl meets drinking water or residential exposure. thiophanate methyl under acute, EPA’s registration requirements for use Refer to the August 28, 2002 Federal chronic, and short- and intermediate- on mushroom or whether a permanent Register document for a detailed term exposures. tolerance for this use would be discussion of the aggregate risk The Dietary Exposure Evaluation appropriate. Under these circumstances, assessments and determination of Model (DEEMTM) analysis evaluated the EPA does not believe that this tolerance safety. EPA relies upon that risk individual food consumption as serves as a basis for registration of assessment and the findings made in the reported by respondents in the USDA thiophanate methyl by a State for Federal Register document in support 1989–1992 nationwide Continuing special local needs under FIFRA section of this action. Below is a brief summary Surveys of Food Intake by Individuals 24(c). Nor does this tolerance serve as of the aggregate risk assessment. (CSFII) and accumulated exposure to the basis for any State other than EPA has evaluated the available the chemical for each commodity. Delaware, Maryland, and Pennsylvania toxicity data and considered its validity, For the acute exposure assessments, to use this pesticide on this crop under completeness, and reliability as well as maximum percent crop treated section 18 of FIFRA without following the relationship of the results of the estimates and anticipated residue all provisions of EPA’s regulations studies to human risk. EPA has also estimates were used. implementing FIFRA section 18 as considered available information Using these exposure assumptions, identified in 40 CFR part 166. For concerning the variability of the EPA concluded that acute dietary exposure to thiophanate methyl uses additional information regarding the sensitivities of major identifiable 10% of the acute Population Adjusted emergency exemptions for thiophanate subgroups of consumers, including Dose (aPAD) for the general U.S. methyl, contact the Agency’s infants and children. A summary of the population and 25% of the aPAD for the Registration Division at the address toxicological dose and endpoints for most highly exposed population provided under FOR FURTHER thiophanate methyl for use in human subgroup of concern, infants (< 1 year). INFORMATION CONTACT. risk assessment is discussed in the final For MBC, the acute dietary risk estimate rule mentioned above, published in the IV. Aggregate Risk Assessment and uses 4% of the aPAD for the general Federal Register of August 28, 2002 (67 Determination of Safety U.S. population and 89% of the aPAD FR 55137). EPA performs a number of analyses to for the population subgroup of concern, determine the risks from aggregate For thiophanate methyl, the Agency infants (< 1 year). The total thiophanate exposure to pesticide residues. For recently modified the tolerance methyl plus MBC acute dietary risk further discussion of the regulatory expression, so that the residues to be estimate for the population subgroup of requirements of section 408 of the regulated in plant and animal concern, females (13-50 years) uses 51% FFDCA and a complete description of commodities for purposes of tolerance of the aPAD. The drinking water the risk assessment process, see the final enforcement will consist of the residues assessment, based on simultaneous rule on Bifenthrin Pesticide Tolerances of thiophanate methyl and its metabolite dietary exposure to both MBC and (62 FR 62961, November 26, 1997) (methyl 2-benzimidazolyl carbamate thiophanate methyl (which was (FRL–5754–7). (MBC)), expressed as thiophanate converted to MBC equivalents) resulted Consistent with section 408(b)(2)(D) methyl. in the following Drinking Water Levels of the FFDCA, EPA has reviewed the Exposure from the use of benomyl, of Concern (DWLOCs): Infants (< 1 year) available scientific data and other another pesticide which degrades under 18 ppb; children (1-6 years) 57 ppb; relevant information in support of this environmental conditions to MBC was females (13-50 years) 150 - 170 ppb; and action. EPA has sufficient data to assess not included in this assessment because general U.S. population 5,700 ppb. The the hazards of thiophanate methyl and the only basic registrant of benomyl lowest DWLOC for the population to make a determination on aggregate requested voluntary cancellation of all subgroup, infants (< 1 year) does not exposure, consistent with section benomyl-containing products in April exceed the Estimated Environmental 408(b)(2) of the FFDCA, for a time- 2001. Product cancellations were Concentration (EEC) for ground water limited tolerance for residues of effective in early 2001 with sales and (0.033 ppb); however, the DWLOC does thiophanate methyl in or on mushroom distribution of benomyl-containing exceed the EEC for surface water (25 at 0.01 ppm. products ending by December 31, 2001. ppb). Although the EEC is exceeded, the The most recent estimated aggregate However, the Agency conducted a DWLOC is greatly inflated because 50% risks resulting from the use of dietary assessment using USDA of the aPAD percentage is consumed by thiophanate methyl, are discussed in the Pesticide Data Program (PDP) citrus which is a 1–year emergency use Federal Register for August 28, 2002 (67 monitoring data for benomyl, measured only. When citrus is removed from the FR 55137) (FRL–7192–1), final rule as MBC to estimate residues of DWLOC estimation, the DWLOC establishing tolerances for residues of thiophanate methyl because MBC is a becomes 94 ppb which is well above the thiophanate methyl in/on grapes, pears, common metabolite of both benomyl EEC of 25 ppb. The DWLOC is potatoes, canola, and pistachios. and thiophanate methyl. PDP data were significantly lowered by the addition of Available residue data did not indicate available for apples, bananas, beans, citrus because field trial data was used that this use pattern will result in cucurbits, peaches, and strawberries. which results in an overly conservative residues of thiophanate methyl in The PDP analytical method employs a estimation. mushrooms over the limit of hydrolysis step that converts any Another indication that the addition quantitation (LOQ), 0.01 ppm. benomyl present to MBC. MBC is then of citrus based on field trial data results Therefore, a tolerance is being quantitated and corrected for molecular in an over estimation is the fact that established for mushroom at this level. weight, and results are measured as the benomyl PDP data available for citrus Incremental addition of mushrooms at sum of benomyl and MBC. Therefore, indicated that there were zero hits out this level to dietary exposure, from using MBC data to estimate thiophanate of 689 Florida samples of orange juice. existing food/feed uses, is negligible. methyl residues may be a conservative These data were not used to refine the Additionally, the results for this section approach in that it may over estimate DWLOC estimation because the 18 use do not alter the current aggregate thiophanate methyl residues. benomyl application rate is somewhat

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lower than the rate approved for to MBC equivalents) for aggregate short- are below 1 x 10-6 for thiophanate thiophanate methyl in this year’s term exposure to thiophanate methyl are methyl existing uses, new uses, and the emergency exemption. However, the as follows: Oral exposure of children (1- amortized section 18 use on citrus and Agency believes that most growers used 6 years) is 670; dermal exposure of blueberry. Therefore, the risks do not the benomyl rate, because the children (1-6 years) is 1,000; and dermal exceed the Agency’s level of concern. emergency exemption was approved exposure of females (13-50 years) is Based on these risk assessments, EPA later in the use season and thus fewer 1,315. The MOEs for aggregate exposure concludes that there is a reasonable applications than were authorized were to MBC from the use of MBC as an in- certainty that no harm will result to the actually used. Furthermore, if the higher can preservative are 670 for dermal general population, and to infants and rate were used, the impact would be exposure and 770 for exposure via children from aggregate exposure to lessened by the fact that juice is a inhalation. The MOEs (converted to thiophanate methyl and MBC residues. blended commodity. Therefore, MBC equivalents) for the total although the DWLOC is exceeded, the thiophanate methyl and MBC aggregate V. Other Considerations acute dietary risk from food and water exposure are as follows: 630 for oral and does not exceed the Agency’s level of dermal exposure of children (1-6 years); A. Analytical Enforcement Methodology concern. 770 for exposure via inhalation for Adequate enforcement methodology For the chronic exposure assessments, females (13-50 years); and 620 for oral is available to enforce the tolerance average residues from field trial data and dermal exposure for females (13-50 expression. The method may be and average percent crop treated years). Although the MOEs below 1,000 requested from: Calvin Furlow, PIRIB, estimates were used. exceed the Agency’s level of concern, Using these exposure assumptions, IRSD (7502C), Office of Pesticide when considering the conservative Programs, Environmental Protection EPA has concluded that exposure to method of exposure estimation thiophanate methyl and MBC will Agency, 1200 Pennsylvania Ave., NW, previously discussed, and the Washington, DC 20460–0001; telephone utilize the following percentages of the negotiated risk mitigation whereby the chronic Population Adjusted Dose number: (703) 305–5229; e-mail address: registrant has agreed to conduct hand- [email protected]. (cPAD) for the U.S. population: press studies to help refine this Thiophanate methyl - 0.7%; MBC - assessment, the risks do not exceed the B. International Residue Limits 1.0% and total thiophanate methyl plus Agency’s level of concern. MBC - 1.7%. The major identifiable The Codex Alimentarius Commission subgroup with the highest aggregate Aggregate cancer risk for U.S. has established maximum residue limits exposure is children (1-6 years) and population. The total thiophanate (MRLs) for thiophanate methyl residues EPA has concluded that aggregate methyl and MBC dietary cancer risk is -7 in/on various plant and animal dietary exposure to thiophanate methyl 8.5 x 10 for existing and new uses. The commodities. Codex MRLs for and MBC will utilize the following cancer risk from non-occupational -7 thiophanate methyl are currently percentages of the cPAD: Thiophanate residential exposure is 3.7 x 10 . The -6 expressed as MBC. The Codex MRL methyl - 2.3%; MBC - 26% and total aggregate cancer risk is 1.2 x 10 . This residue definition and the U.S. tolerance thiophanate methyl plus MBC -28%. risk estimate includes cancer risk from definition, previously expressed as only EPA generally has no concern for both thiophanate methyl and MBC on thiophanate methyl, have been exposures below 100% of the cPAD food including all pending uses and incompatible and will remain because the cPAD represents the level at section 18 uses, thiophanate methyl incompatible even with the recent or below which daily aggregate dietary exposure from treating ornamentals, revision of the U.S. tolerance definition, exposure over a lifetime will not pose thiophanate methyl exposure from since the revised tolerance definition appreciable risks to human health. The performing post-application lawn includes both thiophanate methyl and aggregate chronic DWLOC’s are as activities, and exposure from applying MBC. Additionally, there is a 1.0 ppm follows: 858 ppb for the general U.S. paint containing MBC. This is Codex MRL for thiophanate methyl on population; 69 ppb for females (13-50 considered to be a high-end risk mushroom. The 0.01 ppm tolerance years); 22 ppb for infants (< 1 year); and scenario since it is not expected that being established by this document will 18 ppb for children (1-6 years). The someone would treat ornamentals, not harmonize with Codex. aggregate surface water EECs for perform high exposure post-application thiophanate methyl is 0.7 ppb; 14 ppb activities, and apply paint containing C. Conditions for MBC and 14.7 ppb for thiophanate MBC every year for 70 years. Therefore, The pesticide, thiophanate methyl, is methyl plus MBC. Therefore, the this estimate is considered to be a to be mixed at 1.4 lbs. active ingredient chronic aggregate risks do not exceed conservative estimate. Additionally, the (a.i.) (2 lbs. product) with 80 to 100 lbs. the Agency’s level of concern. cancer risk estimate based on the Short-term aggregate exposure takes highest EEC (thiophanate methyl plus of gypsum, limestone, or chalk. This into account residential exposure plus MBC EEC) is 9.6 x 10-7. This is also a mixture will then be used to coat spawn chronic exposure to food and water very high-end risk estimate since it is grains (approximately 1,600 units) (considered to be a background based on the maximum rate being before mixing the spawn into the exposure level). Thiophanate methyl applied every season for 70 years. Thus, mushroom growing substrate. The and MBC are currently registered for use food plus water (assuming that the substrate will then be applied to bed that could result in short-term modeled surface water EEC is surface before spawning. residential exposure and the Agency has equivalent to concentrations in finished VI. Conclusion determined that it is appropriate to drinking water) plus non-occupational aggregate chronic food and water and residential cancer risk is 2.2 x 10-6 Therefore, the tolerance is established short-term exposures for thiophanate which is still within the range for residues of thiophanate methyl and methyl and MBC. considered as negligible. In addition, its metabolite, (methyl 2-benzimidazoyl All residential exposures are the cancer risk estimates using carbamate (MBC), expressed as considered to be short-term. The benomyl/MBC PDP monitoring data to thiophanate methyl, in or on mushroom Margins of Exposure (MOEs) (converted estimate thiophanate methyl residues at 0.01 ppm.

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VII. Objections and Hearing Requests your request to the Office of the Hearing in WordPerfect 6.1/8.0 or ASCII file Under section 408(g) of the FFDCA, as Clerk in Rm.104, Crystal Mall #2, 1921 format. Do not include any CBI in your amended by the FQPA, any person may Jefferson Davis Hwy., Arlington, VA. electronic copy. You may also submit an file an objection to any aspect of this The Office of the Hearing Clerk is open electronic copy of your request at many regulation and may also request a from 8 a.m. to 4 p.m., Monday through Federal Depository Libraries. Friday, excluding legal holidays. The hearing on those objections. The EPA B. When Will the Agency Grant a telephone number for the Office of the procedural regulations which govern the Request for a Hearing? submission of objections and requests Hearing Clerk is (703) 603–0061. 2. Tolerance fee payment. If you file A request for a hearing will be granted for hearings appear in 40 CFR part 178. an objection or request a hearing, you if the Administrator determines that the Although the procedures in those must also pay the fee prescribed by 40 material submitted shows the following: regulations require some modification to CFR 180.33(i) or request a waiver of that There is a genuine and substantial issue reflect the amendments made to the fee pursuant to 40 CFR 180.33(m). You of fact; there is a reasonable possibility FFDCA by the FQPA, EPA will continue must mail the fee to: EPA Headquarters that available evidence identified by the to use those procedures, with Accounting Operations Branch, Office requestor would, if established resolve appropriate adjustments, until the of Pesticide Programs, P.O. Box one or more of such issues in favor of necessary modifications can be made. 360277M, Pittsburgh, PA 15251. Please the requestor, taking into account The new section 408(g) of the FFDCA identify the fee submission by labeling uncontested claims or facts to the provides essentially the same process it ‘‘Tolerance Petition Fees.’’ contrary; and resolution of the factual for persons to ‘‘object’’ to a regulation EPA is authorized to waive any fee issues(s) in the manner sought by the for an exemption from the requirement requirement ‘‘when in the judgement of requestor would be adequate to justify of a tolerance issued by EPA under new the Administrator such a waiver or the action requested (40 CFR 178.32). section 408(d) of the FFDCA, as was refund is equitable and not contrary to VIII. Regulatory Assessment provided in the old sections 408 and the purpose of this subsection.’’ For Requirements 409 of the FFDCA. However, the period additional information regarding the for filing objections is now 60 days, waiver of these fees, you may contact This final rule establishes a time- rather than 30 days. James Tompkins by phone at (703) 305– limited tolerance under section 408 of the FFDCA. The Office of Management A. What Do I Need to Do to File an 5697, by e-mail at and Budget (OMB) has exempted these Objection or Request a Hearing? [email protected], or by mailing a request for information to Mr. Tompkins types of actions from review under You must file your objection or at Registration Division (7505C), Office Executive Order 12866, entitled request a hearing on this regulation in of Pesticide Programs, Environmental Regulatory Planning and Review (58 FR accordance with the instructions Protection Agency, 1200 Pennsylvania 51735, October 4, 1993). Because this provided in this unit and in 40 CFR part Ave., NW., Washington, DC 20460– rule has been exempted from review 178. To ensure proper receipt by EPA, 0001. under Executive Order 12866 due to its you must identify docket ID number If you would like to request a waiver lack of significance, this rule is not OPP–2002–0355 in the subject line on of the tolerance objection fees, you must subject to Executive Order 13211, the first page of your submission. All mail your request for such a waiver to: Actions Concerning Regulations That requests must be in writing, and must be James Hollins, Information Resources Significantly Affect Energy Supply, mailed or delivered to the Hearing Clerk and Services Division (7502C), Office of Distribution, or Use (66 FR 28355, May on or before April 7, 2003. Pesticide Programs, Environmental 22, 2001). This final rule does not 1. Filing the request. Your objection Protection Agency, 1200 Pennsylvania contain any information collections must specify the specific provisions in Ave., NW., Washington, DC 20460– subject to OMB approval under the the regulation that you object to, and the 0001. Paperwork Reduction Act (PRA), 44 grounds for the objections (40 CFR 3.Copies for the Docket. In addition to U.S.C. 3501 et seq., or impose any 178.25). If a hearing is requested, the filing an objection or hearing request enforceable duty or contain any objections must include a statement of with the Hearing Clerk as described in unfunded mandate as described under the factual issues(s) on which a hearing Unit VII.A., you should also send a copy Title II of the Unfunded Mandates is requested, the requestor’s contentions of your request to the PIRIB for its Reform Act of 1995 (UMRA) (Public on such issues, and a summary of any inclusion in the official record that is Law 104–4). Nor does it require any evidence relied upon by the objector (40 described in Unit I.B.1. Mail your special considerations under Executive CFR 178.27). Information submitted in copies, identified by the docket ID Order 12898, entitled Federal Actions to connection with an objection or hearing number OPP–2002–0355, to: Public Address Environmental Justice in request may be claimed confidential by Information and Records Integrity Minority Populations and Low-Income marking any part or all of that Branch, Information Resources and Populations (59 FR 7629, February 16, information as CBI. Information so Services Division (7502C), Office of 1994); or OMB review or any Agency marked will not be disclosed except in Pesticide Programs, Environmental action under Executive Order 13045, accordance with procedures set forth in Protection Agency, 1200 Pennsylvania entitled Protection of Children from 40 CFR part 2. A copy of the Ave., NW., Washington, DC 20460– Environmental Health Risks and Safety information that does not contain CBI 0001. In person or by courier, bring a Risks (62 FR 19885, April 23, 1997). must be submitted for inclusion in the copy to the location of the PIRIB This action does not involve any public record. Information not marked described in Unit I.B.1. You may also technical standards that would require confidential may be disclosed publicly send an electronic copy of your request Agency consideration of voluntary by EPA without prior notice. via e-mail to: [email protected]. consensus standards pursuant to section Mail your written request to: Office of Please use an ASCII file format and 12(d) of the National Technology the Hearing Clerk (1900C), avoid the use of special characters and Transfer and Advancement Act of 1995 Environmental Protection Agency, 1200 any form of encryption. Copies of (NTTAA), Public Law 104–113, section Pennsylvania Ave., NW., Washington, electronic objections and hearing 12(d) (15 U.S.C. 272 note). Since DC 20460–0001. You may also deliver requests will also be accepted on disks tolerances and exemptions that are

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established on the basis of a FIFRA Agency has determined that this rule copy of the rule, to each House of the section 18 exemption under section 408 does not have any ‘‘tribal implications’’ Congress and to the Comptroller General of the FFDCA, such as the tolerance in as described in Executive Order 13175, of the United States. EPA will submit a this final rule, do not require the entitled Consultation and Coordination report containing this rule and other issuance of a proposed rule, the with Indian Tribal Governments (65 FR required information to the U.S. Senate, requirements of the Regulatory 67249, November 6, 2000). Executive the U.S. House of Representatives, and Flexibility Act (RFA) (5 U.S.C. 601 et Order 13175, requires EPA to develop the Comptroller General of the United seq.) do not apply. In addition, the an accountable process to ensure States prior to publication of this final Agency has determined that this action ‘‘meaningful and timely input by tribal rule in the Federal Register. This final will not have a substantial direct effect officials in the development of rule is not a ‘‘major rule’’ as defined by on States, on the relationship between regulatory policies that have tribal 5 U.S.C. 804(2). implications.’’ ‘‘Policies that have tribal the national government and the States, List of Subjects in 40 CFR Part 180 or on the distribution of power and implications’’ is defined in the responsibilities among the various Executive Order to include regulations Environmental protection, levels of government, as specified in that have ‘‘substantial direct effects on Administrative practice and procedure, Executive Order 13132, entitled one or more Indian tribes, on the Agricultural commodities, Pesticides Federalism (64 FR 43255, August 10, relationship between the Federal and pests, Reporting and recordkeeping 1999). Executive Order 13132 requires Government and the Indian tribes, or on requirements. the distribution of power and EPA to develop an accountable process Dated: January 17, 2003. responsibilities between the Federal to ensure ‘‘meaningful and timely input Government and Indian tribes.’’ This Debra Edwards, by State and local officials in the rule will not have substantial direct Acting Director, Registration Division, Office development of regulatory policies that effects on tribal governments, on the of Pesticide Programs. have federalism implications.’’ ‘‘Policies relationship between the Federal Therefore, 40 CFR chapter I is that have federalism implications’’ is Government and Indian tribes, or on the amended as follows: defined in the Executive Order to distribution of power and include regulations that have responsibilities between the Federal PART 180—[AMENDED] ‘‘substantial direct effects on the States, Government and Indian tribes, as 1. The authority citation for part 180 on the relationship between the national specified in Executive Order 13175. continues to read as follows: government and the States, or on the Thus, Executive Order 13175 does not distribution of power and apply to this rule. Authority: 21 U.S.C. 321(q), 346(a) and responsibilities among the various 371. IX. Submission to Congress and the levels of government.’’ This final rule 2. Section 180.371 is amended by Comptroller General directly regulates growers, food alphabetically adding the entry for processors, food handlers, and food The Congressional Review Act, 5 mushroom to the table in paragraph (b) retailers, not States. This action does not U.S.C. 801 et seq., as added by the Small to read as follows: alter the relationships or distribution of Business Regulatory Enforcement power and responsibilities established Fairness Act of 1996, generally provides § 180.371 Thiophanate methyl; tolerances by Congress in the preemption that before a rule may take effect, the for residues. provisions of section 408(n)(4) of the agency promulgating the rule must * * * * * FFDCA. For these same reasons, the submit a rule report, which includes a (b) * * *

Expiration/revoca- Commodity Parts per million tion date

******* Mushroom ...... 0.01 12/31/04

* * * * * the National Flood Insurance Program contact the appropriate FEMA Regional [FR Doc. 03–2770 Filed 2–4–03; 8:45 am] (NFIP), that are suspended on the Office or the NFIP servicing contractor. BILLING CODE 6560–50–S effective dates listed within this rule FOR FURTHER INFORMATION CONTACT: because of noncompliance with the Edward Pasterick, Division Director, floodplain management requirements of Risk Communication Division, Federal FEDERAL EMERGENCY the program. If the Federal Emergency Insurance and Mitigation MANAGEMENT AGENCY Management Agency (FEMA) receives Administration, 500 C Street, SW., documentation that the community has Room 435, Washington, DC 20472, (202) 44 CFR Part 64 adopted the required floodplain 646–3443. management measures prior to the SUPPLEMENTARY INFORMATION: The NFIP [Docket No. FEMA–7801] effective suspension date given in this enables property owners to purchase rule, the suspension will be withdrawn Suspension of Community Eligibility flood insurance which is generally not by publication in the Federal Register. otherwise available. In return, AGENCY: Federal Emergency EFFECTIVE DATES: The effective date of communities agree to adopt and Management Agency, FEMA. each community’s suspension is the administer local floodplain management ACTION: Final rule. third date (‘‘Susp.’’) listed in the third aimed at protecting lives and new column of the following tables. construction from future flooding. SUMMARY: This rule identifies ADDRESSES: If you wish to determine Section 1315 of the National Flood communities, where the sale of flood whether a particular community was Insurance Act of 1968, as amended, 42 insurance has been authorized under suspended on the suspension date, U.S.C. 4022, prohibits flood insurance

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coverage as authorized under the Emergency Management Agency’s date, flood insurance will no longer be National Flood Insurance Program, 42 initial flood insurance map of the available in the communities unless U.S.C. 4001 et seq.; unless an community as having flood-prone areas they take remedial action. appropriate public body adopts (section 202(a) of the Flood Disaster Regulatory Classification. This final adequate floodplain management Protection Act of 1973, 42 U.S.C. rule is not a significant regulatory action measures with effective enforcement 4106(a), as amended). This prohibition under the criteria of section 3(f) of measures. The communities listed in against certain types of Federal Executive Order 12866 of September 30, this document no longer meet that assistance becomes effective for the 1993, Regulatory Planning and Review, statutory requirement for compliance communities listed on the date shown 58 FR 51735. with program regulations, 44 CFR part in the last column. The Administrator Paperwork Reduction Act. This rule 59 et seq. Accordingly, the communities finds that notice and public comment does not involve any collection of will be suspended on the effective date under 5 U.S.C. 553(b) are impracticable information for purposes of the in the third column. As of that date, and unnecessary because communities Paperwork Reduction Act, 44 U.S.C. flood insurance will no longer be listed in this final rule have been 3501 et seq. available in the community. However, adequately notified. Each community receives a 6-month, Executive Order 12612, Federalism. some of these communities may adopt This rule involves no policies that have and submit the required documentation 90-day, and 30-day notification addressed to the Chief Executive Officer federalism implications under Executive of legally enforceable floodplain Order 12612, Federalism, October 26, management measures after this rule is that the community will be suspended unless the required floodplain 1987, 3 CFR, 1987 Comp.; p. 252. published but prior to the actual Executive Order 12778, Civil Justice suspension date. These communities management measures are met prior to the effective suspension date. Since Reform. This rule meets the applicable will not be suspended and will continue standards of section 2(b)(2) of Executive their eligibility for the sale of insurance. these notifications have been made, this final rule may take effect within less Order 12778, October 25, 1991, 56 FR A notice withdrawing the suspension of 55195, 3 CFR, 1991 Comp.; p. 309. the communities will be published in than 30 days. National Environmental Policy Act. the Federal Register. List of Subjects in 44 CFR Part 64 This rule is categorically excluded from In addition, the Federal Emergency the requirements of 44 CFR Part 10, Flood insurance, Floodplains. Management Agency has identified the Environmental Considerations. No Accordingly, 44 CFR part 64 is special flood hazard areas in these environmental impact assessment has amended as follows: communities by publishing a Flood been prepared. Insurance Rate Map (FIRM). The date of Regulatory Flexibility Act. The PART 64—[AMENDED] the FIRM if one has been published, is Administrator has determined that this indicated in the fourth column of the rule is exempt from the requirements of 1. The authority citation for Part 64 table. No direct Federal financial the Regulatory Flexibility Act because continues to read as follows: assistance (except assistance pursuant to the National Flood Insurance Act of Authority: 42 U.S.C. 4001 et seq.; the Robert T. Stafford Disaster Relief 1968, as amended, 42 U.S.C. 4022, Reorganization Plan No. 3 of 1978, 3 CFR, and Emergency Assistance Act not in prohibits flood insurance coverage 1978 Comp.; p. 329; E.O. 12127, 44 FR 19367, connection with a flood) may legally be unless an appropriate public body 3 CFR, 1979 Comp.; p. 376. provided for construction or acquisition adopts adequate floodplain management § 64.6 [Amended] of buildings in the identified special measures with effective enforcement flood hazard area of communities not measures. The communities listed no 2. The tables published under the participating in the NFIP and identified longer comply with the statutory authority of § 64.6 are amended as for more than a year, on the Federal requirements, and after the effective follows:

Date certain federal assist- Community Effective date authorization/cancellation of sale of flood in- Current effec- ance no longer State and location No. surance in community tive map date available in special flood hazard areas

Region VI

Arkansas: Conway, City of, 050078 October 29, 1974, Emerg.; March 18, 1980, Reg.; February 2/5/2003 2/5/2003 Faulkner County. 5, 2003, Susp.

Faulkner County, Faulkner 050431 September 24, 1990, Emerg.; September 27, 1991, Reg.; 2/5/2003 2/5/2003 County. February 5, 2003, Susp. Greenbrier, City of, Faulkner 050328 November 19, 1975, Emerg.; July 13, 1982, Reg.; February 2/5/2003 2/5/2003 County. 5, 2003, Susp.

Region III

Virginia: Fairfax, City of, Inde- 515524 May 8, 1970, Emerg.; December 17, 1971, Reg.; February 2/19/2003 2/19/2003 pendent City. 19, 2003, Susp.

Region IV

Mississippi: D’iberville, City of, 280336 November 14, 1988, Emerg.; November 14, 1988, Reg.; 2/19/2003 2/19/2003 Harrison County. February 19, 2003, Susp.

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Region V

Indiana: Arcadia, Town of, 180496 December 9, 1988, Reg.; February 19, 2003, Susp ...... 2/19/2003 2/19/2003 Hamilton County. Carmel, City of, Hamilton 180081 August 7, 1975, Emerg.; May 19, 1981, Reg.; February 19, 2/19/2003 2/19/2003 County. 2003, Susp. Cicero, Town of, Hamilton 180320 March 24, 1975, Emerg.; January 2, 1980, Reg.; February 2/19/2003 2/19/2003 County. 19, 2003, Susp. Fishers, Town of, Hamilton 180423 August 1, 1975, Emerg.; June 30, 1976, Reg.; February 19, 2/19/2003 2/19/2003 County. 2003, Susp. Hamilton County, Unincor- 180080 December 15, 1988, Emerg.; December 16, 1988, Reg.; 2/19/2003 2/19/2003 porated Areas. February 19, 2003, Susp. Noblesville, City of, Hamilton 180082 June 12, 1975, Emerg.; March 2, 1981, Reg.; February 19, 2/19/2003 2/19/2003 County. 2003, Susp. Westfield, Town of, Hamilton 180083 August 15, 1975, Emerg.; March 16, 1981, Reg.; February 2/19/2003 2/19/2003 County. 19, 2003, Susp.

Region X

Idaho: Boise, City of, Ada 160002 April 14, 1975, Emerg.; April 17, 1984, Reg.; February 19, 2/19/2003 2/19/2003 County. 2003, Susp.

Code for reading third column: Emerg.—Emergency; Reg.—Regular; Susp.—Suspension.

Dated: January 29, 2003. Review filed by Big Broadcast of FEDERAL COMMUNICATIONS Anthony S. Lowe, Arizona, LLC directed to the Report and COMMISSION Administrator, Federal Insurance and Order in this proceeding. See 65 FR Mitigation Administration. 11540, March 3, 2000. In FR Doc. 02– 47 CFR Part 73 [FR Doc. 03–2786 Filed 2–4–03; 8:45 am] 27693, the amendatory language was [DA 03–48; MM Docket No. 01–131, RM– BILLING CODE 6718–05–P omitted. This correction adds the 10148, MM Docket No. 01–133, 10143, RM– amendatory language to the document. 10150] In rule FR Doc. 02–27693 published FEDERAL COMMUNICATIONS Radio Broadcasting Services; on October 31, 2002 (67 FR 66340), Benjamin and Mason, TX COMMISSION make the following correction. On page AGENCY: Federal Communications 47 CFR Part 73 66341, in the first column, after line 15, add the following amendatory language: Commission. [DA 02–2612; MM Docket No. 00–31; RM– ACTION: Final rule; denial of petition for 9815, RM–10014, RM–10095] For the reasons discussed in the reconsideration. preamble, the Federal Communications Radio Broadcasting Services; Nogales, Commission amends 47 CFR part 73 as SUMMARY: This document denies a Patagonia, and Vail, AZ follows: Petition for Reconsideration filed by Charles Crawford directed to both the AGENCY: Federal Communications PART 73—RADIO BROADCAST Report and Order in MM Docket No. Commission. SERVICES 01–131 and the Report and Order in ACTION: Final rule, correction. MM Docket No. 01–133 which his 1. The authority citation for part 73 respective proposals for a Channel SUMMARY: The Federal Communications continues to read as follows: 257C2 allotment at Benjamin, Texas, Commission published in the Federal and a Channel 249C3 allotment at Authority: 47 U.S.C. 154, 303, 334 and 336. Register of October 31, 2002, a Mason, Texas. See 67 FR 42198, June document dismissing an Application for § 73.202 [Amended] 21, 2002. With this action, the Review filed by Big Broadcast of proceeding is terminated. Arizona, LLC directed to the Report and 2. Section 73.202(b), the Table of FM FOR FURTHER INFORMATION CONTACT: Order in this proceeding. The Allotments under Arizona, is amended Robert Hayne, Mass Media Bureau (202) amendatory language was omitted from by removing Channel 283A at Vail. 418–2177. the document. This document adds the amendatory language. Dated: January 29, 2003. SUPPLEMENTARY INFORMATION: This is a John A. Karousos, synopsis of the Commission’s DATES: Effective on February 5, 2003. Memorandum Opinion and Order in FURTHER INFORMATION CONTACT: Robert Assistant Chief, Audio Division, Media Bureau. MM Docket No. 01–131, and MM Hayne, Media Bureau, (202) 418–2177. Docket No. 01–133 adopted January 2, [FR Doc. 03–2671 Filed 2–4–03; 8:45 am] SUPPLEMENTARY INFORMATION: The FCC 2003, and released January 3, 2003. The published a document in the Federal BILLING CODE 6712–01–U full text of this decision is available for Register of October 31, 2002 (67 FR inspection and copying during normal 66340), dismissing an Application for business hours in the FCC Reference

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Information Center at Portals ll, CY– SUMMARY: In this document, the from the Commission’s copy A257, 445 12th Street, SW, Washington, Commission allots Channel 284A at contractors, Qualex International, DC. The complete text of this decision Blanket, Texas, as the community’s first Portals II, 445 12th Street, SW, Room may also be purchased from the local FM transmission service in CY–B402, Washington, DC 20554, Commission’s copy contractor, Qualex response to a petition filed by Robert telephone 202–863–2893, facsimile International, Portals II, 445 12th Street, Fabian. See 67 FR 71926 (December 3, 202–863–2898, or via e-mail SW, Room CY–B402, Washington, DC 2002). Channel 284A can be allotted at [email protected]. 20554, telephone (202) 863–2893, Goliad, Texas, without a site restriction List of Subjects in 47 CFR Part 73 facsimile (202) 863–2898, or via e-mail at coordinates 31–49–24 and 98–47–12. [email protected]. With this action, this proceeding is Radio, Radio broadcasting. Federal Communications Commission. terminated. A filing window for channel Part 73 of Title 47 of the Code of John A. Karousos, 284A at Blanket will not be opened at Federal Regulations is amended as this time. Instead, the issue of opening Assistant Chief, Audio Division, Media follows: Bureau. this allotment for auction will be addressed by the Commission in a PART 73—RADIO BROADCAST [FR Doc. 03–2670 Filed 2–4–03; 8:45 am] subsequent order. SERVICES BILLING CODE 6712–01–U DATES: Effective March 3, 2003. 1. The authority citation for Part 73 FOR FURTHER INFORMATION CONTACT: continues to read as follows: FEDERAL COMMUNICATIONS Kathleen Scheuerle, Media Bureau, COMMISSION (202) 418–2180. Authority: 47 U.S.C. 154, 303, 334 and 336. SUPPLEMENTARY INFORMATION: This is a § 73.202 [Amended] 47 CFR Part 73 synopsis of the Commission’s Report 2. Section 73.202(b), the Table of FM [DA 03–155; MB Docket No. 02–351 RM– and Order, MB Docket No. 02–351, Allotments under Texas, is amended by 10601] adopted January 15, 2003, and released adding Blanket, Channel 284A. January 17, 2003. The full text of this Radio Broadcasting Services; Blanket, Commission decision is available for Federal Communications Commission. TX inspection and copying during normal John A. Karousos, AGENCY: Federal Communications business hours in the Commission’s Assistant Chief, Audio Division, Media Commission. Reference Center, 445 12th Street, SW, Bureau. Washington, DC. The complete text of [FR Doc. 03–2668 Filed 2–4–03; 8:45 am] ACTION: Final rule. this decision may also be purchased BILLING CODE 6712–01–P

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Proposed Rules Federal Register Vol. 68, No. 24

Wednesday, February 5, 2003

This section of the FEDERAL REGISTER The service information referenced in Docket No. 2002–NE–39–AD, 12 New contains notices to the public of the proposed the proposed rule may be obtained from England Executive Park, Burlington, MA issuance of rules and regulations. The Turbomeca S.A., Turbomeca S.A., 64511 01803–5299. purpose of these notices is to give interested Bordes Cedex, France; telephone 33 05 Discussion persons an opportunity to participate in the 59 64 40 00, fax 33 05 59 64 60 80. This rule making prior to the adoption of the final The Direction Generale de L’Aviation rules. information may be examined, by appointment, at the FAA, New England Civile (DGAC), which is the Region, Office of the Regional Counsel, airworthiness authority for France, DEPARTMENT OF TRANSPORTATION 12 New England Executive Park, recently notified the FAA that an unsafe Burlington, MA. condition may exist on Turbomeca S.A. Arrius-2F turboshaft engines. The DGAC Federal Aviation Administration FOR FURTHER INFORMATION CONTACT: Antonio Cancelliere, Aerospace advises that during shop visit for repair, an FCU was discovered to have a 14 CFR Part 39 Engineer, Engine Certification Office, maximum fuel flow limit adjusted FAA, Engine and Propeller Directorate, [Docket No. 2002–NE–39–AD] below the maximum required setting. 12 New England Executive Park, Upon investigation, the manufacturer RIN 2120–AA64 Burlington, MA 01803–5299; telephone has identified 67 Fuel Control Units by (781) 238–7751; fax (781) 238–7199. Airworthiness Directives; Turbomeca serial number as having maximum fuel S.A. Arrius-2F Turboshaft Engines SUPPLEMENTARY INFORMATION: flow mechanical stops set too low. AGENCY: Federal Aviation Comments Invited Manufacturer’s Service Information Administration, DOT. Interested persons are invited to Turbomeca S.A has issued Alert ACTION: Notice of proposed rulemaking participate in the making of the Service Bulletin (ASB) No. A319 73 (NPRM). proposed rule by submitting such 4808, dated September 1, 2000, that written data, views, or arguments as SUMMARY: The Federal Aviation specifies for FCU’s part numbers (P/N’s) they may desire. Communications 0 319 92 832 0, 0 319 92 830 0, and 0 Administration (FAA) proposes to adopt should identify the Rules Docket a new airworthiness directive (AD) that 319 92 825 0, with the SN’s listed in the number and be submitted in triplicate to SB, adjustment of the FCU maximum is applicable to Turbomeca S.A. Arrius- the address specified above. All 2F turboshaft engines with certain serial fuel flow mechanical stop position to communications received on or before the correct fuel flow setting. number (SN) Fuel Control Units the closing date for comments, specified (FCU’s). This proposal would require The DGAC classified this alert service above, will be considered before taking bulletin as mandatory and issued AD adjusting the FCU maximum fuel flow action on the proposed rule. The mechanical stop position to a higher 2000–482(A), dated November 29, 2000, proposals contained in this action may in order to assure the airworthiness of fuel flow setting. This proposal is be changed in light of the comments prompted by an FCU discovered to have these Turbomeca S.A. Arrius-2F received. turboshaft engines in France. a maximum fuel flow limit adjusted Comments are specifically invited on below the maximum required setting. the overall regulatory, economic, Bilateral Agreement Information The actions specified by the proposed environmental, and energy aspects of This engine model is manufactured in AD are intended to prevent reduced the proposed rule. All comments France and is type certificated for maximum available power during submitted will be available, both before operation in the United States under the takeoff, landing, or an emergency, and after the closing date for comments, provisions of Section 21.29 of the which could significantly affect in the Rules Docket for examination by Federal Aviation Regulations (14 CFR helicopter performance and result in interested persons. A report 21.29) and the applicable bilateral loss of the helicopter. summarizing each FAA-public contact airworthiness agreement. Pursuant to DATES: Comments must be received by concerned with the substance of this this bilateral airworthiness agreement, April 7, 2003. proposal will be filed in the Rules the DGAC has kept the FAA informed ADDRESSES: Submit comments in Docket. of the situation described above. The triplicate to the Federal Aviation Commenters wishing the FAA to FAA has examined the findings of the Administration (FAA), New England acknowledge receipt of their comments DGAC, reviewed all available Region, Office of the Regional Counsel, submitted in response to this action information, and determined that AD Attention: Rules Docket No. 2002–NE– must submit a self-addressed, stamped action is necessary for products of this 39–AD, 12 New England Executive Park, postcard on which the following type design that are certificated for Burlington, MA 01803–5299. Comments statement is made: ‘‘Comments to operation in the United States. may be inspected at this location, by Docket Number 2002–NE–39–AD.’’ The Proposed Requirements of this AD appointment, between 8 a.m. and 4:30 postcard will be date stamped and p.m., Monday through Friday, except returned to the commenter. Since an unsafe condition has been Federal holidays. Comments may also identified that is likely to exist or be sent via the Internet using the Availability of NPRM’s develop on other Turbomeca S.A. following address: 9-ane- Any person may obtain a copy of this Arrius-2F turboshaft engines of the same [email protected]. Comments sent NPRM by submitting a request to the type design that are used on helicopters via the Internet must contain the docket FAA, New England Region, Office of the registered in the United States, the number in the subject line. Regional Counsel, Attention: Rules proposed AD would require within 120

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days after the effective date of the List of Subjects in 14 CFR Part 39 compliance in accordance with paragraph (c) of this AD. The request should include an proposal, on the serial number FCU’s Air transportation, Aircraft, Aviation listed in the proposal, adjusting the assessment of the effect of the modification, safety, Safety. alteration, or repair on the unsafe condition maximum fuel flow mechanical stop The Proposed Amendment addressed by this AD; and, if the unsafe position to the correct fuel flow setting condition has not been eliminated, the which, if not adjusted could Accordingly, pursuant to the request should include specific proposed significantly affect helicopter authority delegated to me by the actions to address it. performance. The actions would be Administrator, the Federal Aviation Compliance: Compliance with this AD is required to be done in accordance with Administration proposes to amend part required within 120 days after the effective the alert service bulletin described 39 of the Federal Aviation Regulations date of this AD, unless already done. previously. (14 CFR part 39) as follows: To prevent reduced maximum available power during takeoff, landing, or an Economic Analysis PART 39—AIRWORTHINESS emergency, which could significantly affect DIRECTIVES helicopter performance, and result in loss of There are approximately 334 engines the helicopter, do the following: of the affected design in the worldwide 1. The authority citation for part 39 (a) For FCU’s listed in the applicability of fleet. The FAA estimates that of the 63 continues to read as follows: this AD, adjust the maximum fuel flow mechanical stop position to a higher fuel engines installed on aircraft of U.S. Authority: 49 U.S.C. 106(g), 40113, 44701. flow setting, in accordance with paragraphs registry, four engines would be affected § 39.13 [Amended] 2.A.(1) and 2.B.(1) of Turbomeca S.A Alert by this proposed AD. The FAA also 2. Section 39.13 is amended by Service Bulletin (ASB) No. A319 73 4808, estimates that it would take dated September 1, 2000. approximately 3 work hours per engine adding the following new airworthiness (b) Perform a ground run check and a to accomplish the proposed actions, and directive: check flight in accordance with paragraph that the average labor rate is $60 per Turbomeca S.A.: Docket No. 2002–NE–39– 2.C.(1) of Turbomeca S.A ASB No. A319 73 work hour. Required tooling would cost AD. 4808, dated September 1, 2000. Applicability: This airworthiness directive approximately $300 per engine. Based Alternative Methods of Compliance (AD) is applicable to Turbomeca S.A. Arrius on these figures, the total cost of the -2F turboshaft engines with Fuel Control (c) An alternative method of compliance or proposed AD to U.S. operators is Units (FCU’s) part numbers (P/N’s) 0 319 92 adjustment of the compliance time that estimated to be $1,920. The 832 0, 0 319 92 830 0, and 0 319 92 825 0, provides an acceptable level of safety may be manufacturer has advised the FAA and with FCU serial numbers (SN’s) in the used if approved by the Manager, Engine DGAC that the operator may be following Table 1: Certification Office (ECO). Operators must provided with material and tooling at no submit their request through an appropriate TABLE 1.—AFFECTED FCU SERIAL FAA Principal Maintenance Inspector, who cost to the operator, thereby may add comments and then send it to the NUMBERS substantially reducing the cost of the Manager, ECO. proposed rule. Note 2: Information concerning the 102B 135B 166B existence of approved alternative methods of Regulatory Analysis 103B 136B 167B 104B 137B 168B compliance with this airworthiness directive, This proposed rule does not have 105B 138B 169B if any, may be obtained from the ECO. federalism implications, as defined in 106B 139B 171B Special Flight Permits Executive Order 13132, because it 107B 140B 173B 108B 141B 174B (d) Special flight permits may be issued in would not have a substantial direct accordance with §§ 21.197 and 21.199 of the effect on the States, on the relationship 110B 142B 175B 111B 143B 176B Federal Aviation Regulations (14 CFR 21.197 between the national government and 112B 144B 177B and 21.199) to operate the helicopter to a the States, or on the distribution of 113B 145B 178B location where the requirements of this AD power and responsibilities among the 114B 146B 180B can be done. various levels of government. 115B 148B 181B Note 3: The subject of this AD is addressed Accordingly, the FAA has not consulted 116B 149B 182B in Direction Generale de L’Aviation Civile with state authorities prior to 118B 150B 183B AD 2000–482(A), dated November 29, 2000. publication of this proposed rule. 120B 153B 185B 122B 155B 186B Issued in Burlington, Massachusetts, on For the reasons discussed above, I 123B 156B 190B January 29, 2003. certify that this proposed regulation (1) 124B 158B 191B Jay J. Pardee, is not a ‘‘significant regulatory action’’ 126B 159B 193B Manager, Engine and Propeller Directorate, under Executive Order 12866; (2) is not 129B 161B 199B Aircraft Certification Service. a ‘‘significant rule’’ under the DOT 132B 164B N/A [FR Doc. 03–2633 Filed 2–4–03; 8:45 am] 133B 165B N/A Regulatory Policies and Procedures (44 BILLING CODE 4910–13–P FR 11034, February 26, 1979); and (3) if These engines are installed on, but not promulgated, will not have a significant limited to Eurocopter 120B ‘‘Colibri’’ economic impact, positive or negative, helicopters. PEACE CORPS on a substantial number of small entities Note 1: This airworthiness directive (AD) under the criteria of the Regulatory applies to each engine identified in the 22 CFR Part 307 Flexibility Act. A copy of the draft preceding applicability provision, regardless regulatory evaluation prepared for this of whether it has been modified, altered, or Peace Corps Standards of Conduct action is contained in the Rules Docket. repaired in the area subject to the requirements of this AD. For engines that AGENCY: Peace Corps. A copy of it may be obtained by have been modified, altered, or repaired so ACTION: Proposed rule. contacting the Rules Docket at the that the performance of the requirements of location provided under the caption this AD is affected, the owner/operator must SUMMARY: The Peace Corps is proposing ADDRESSES. request approval for an alternative method of to remove regulations that set out the

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ethical conduct and other Regulatory Flexibility Act. Pursuant to Shrewsbury River at Highlands, New responsibilities applicable to Peace section 605(b) of the Regulatory Jersey. This proposed change to the Corps employees. These regulations Flexibility Act, the Peace Corps certifies drawbridge operation regulations would have been superseded, in significant that this rule will not have a significant synchronize the drawbridge opening part, by government-wide regulations. economic impact on a substantial schedules for the two moveable bridges DATES: Comments must be received by number of small entities within the across the Shrewsbury River during the March 7, 2003. meaning of the Regulatory Flexibility boating season. This action is necessary Act (5 U.S.C. 601 et seq.). Accordingly, to meet the present needs of navigation. ADDRESSES: Comments should be no regulatory flexibility analysis is DATES: Comments must reach the Coast submitted to the Office of the General required. Guard on or before April 7, 2003. Counsel, 8th Floor, 1111 20th Street, Unfunded Mandates Reform Act of NW., Washington, DC 20526. ADDRESSES: You may mail comments to 1995. Section 202 of the Unfunded Commander (obr), First Coast Guard FOR FURTHER INFORMATION CONTACT: Carl Mandates Reform Act of 1995 District Bridge Branch, One South R. Sosebee, Designated Agency Ethics (Unfunded Mandates Act) (2 U.S.C. Chs. Street, Battery Park Building, New York, Official, 202–692–2150. 17A and 25) requires that an agency New York 10004, or deliver them to the SUPPLEMENTARY INFORMATION: prepare a budgetary impact statement same address between 7 a.m. and 3 before promulgating a rule that includes I. Background p.m., Monday through Friday, except, a federal mandate that may result in Federal holidays. The telephone number Part 307, which sets out Peace Corps’ expenditure by State, local, and tribal is (212) 668–7165. The First Coast regulations regarding the ethical governments, in the aggregate, or by the Guard District, Bridge Branch, conduct and other responsibilities of private sector, of $100 million or more maintains the public docket for this Peace Corps employees was last revised in any one year. If a budgetary impact rulemaking. Comments and material in 1987, see 52 FR 30151, Aug. 13, 1987; statement is required, agencies must received from the public, as well as 22 CFR part 307. The conduct and also identify and consider a reasonable documents indicated in this preamble as responsibilities covered in this part number of regulatory alternatives before being available in the docket, will have been superseded by the Office of promulgating a rule. The Peace Corps become part of this docket and will be Government Ethics’ (OGE) executive has determined that this rule will not available for inspection or copying at branch ethical standards and result in expenditures by State, local, or the First Coast Guard District, Bridge requirements codified at 5 CFR parts tribal governments or by the private Branch, 7 a.m. to 3 p.m., Monday 2634, 2635, 2636, 2637, 2638 and 2640. sector of $100 million or more. through Friday, except Federal holidays. Accordingly, the Peace Corps has not Further, rules governing partisan FOR FURTHER INFORMATION CONTACT: Joe prepared a budgetary impact statement political activity by executive branch Arca, Project Officer, First Coast Guard or specifically addressed the regulatory employees and rules governing District, (212) 668–7165. alternatives considered. gambling, betting and lotteries on SUPPLEMENTARY INFORMATION: government owned or leased property or List of Subjects in 22 CFR Part 307 while on duty are set forth at 5 CFR Request for Comments Political activities; Government parts 734 and 735. Government-wide employees; Ethical conduct; Financial We encourage you to participate in rules on procurement integrity are set disclosure, Conflicts of interest. this rulemaking by submitting forth in the Procurement Integrity Act, For the reasons set forth in the comments or related material. If you do 41 U.S.C. 423, and the Federal preamble, the Peace Corps proposes to so, please include your name and Acquisition Regulations, 48 CFR 3.104. amend Title 22 of the CFR by removing address, identify the docket number for Because Peace Corps employees are part 307. this rulemaking (CGD01–03–002), already subject to these various rules, indicate the specific section of this the Peace Corps proposes to remove part Dated: January 31, 2003. document to which each comment 307 from the Code of Federal Tyler S. Posey, applies, and give the reason for each Regulations. Remaining portions of the General Counsel. comment. Please submit all comments Peace Corps’ existing standards [FR Doc. 03–2703 Filed 2–4–03; 8:45 am] and related material in an unbound pertaining to economic and financial BILLING CODE 6015–01–M format, no larger than 81⁄2 by 11 inches, activities of employees abroad, suitable for copying. If you would like information, and speeches and to know if they reached us, please participation in conferences set forth in DEPARTMENT OF TRANSPORTATION enclose a stamped, self-addressed Sections 307.735, 308, 309 and 310, postcard or envelope. We will consider respectively, may be reissued as Agency Coast Guard all comments and material received internal regulations pursuant to the during the comment period. We may authority of the Director in 22 U.S.C. 33 CFR Part 117 change this proposed rule in view of 2503. Also, to the extent part 307 covers [CGD01–03–002] them. organizational conflicts of interest in procurement and procurement related RIN 2115–AE47 Public Meeting matters, the Peace Corps is considering We do not now plan to hold a public whether to incorporate them into the Drawbridge Operation Regulations; meeting. But you may submit a request Peace Corps’ internal rules. Shrewsbury River, NJ for a meeting by writing to the First Coast Guard District, Bridge Branch, at II. Matters of Regulatory Procedure AGENCY: Coast Guard, DOT. ACTION: Notice of proposed rulemaking. the address under ADDRESSES explaining Executive Order 12866. The Peace why one would be beneficial. If we Corps has determined that this proposed SUMMARY: The Coast Guard proposes to determine that one would aid this rule does not constitute a ‘‘significant change the drawbridge operating rulemaking, we will hold one at a time regulatory action’’ for the purposes of regulations governing the operation of and place announced by a later notice Executive Order 12866. the Route 36 Bridge, mile 1.8, across the in the Federal Register.

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Background ‘‘significant’’ under the regulatory Federal agencies to assess the effects of The Route 36 Bridge, mile 1.8, across policies and procedures of the their discretionary regulatory actions. In the Shrewsbury River at Highlands, Department of Transportation (DOT) (44 particular, the Act addresses actions New Jersey, has a vertical clearance of FR 11040, Feb. 26, 1979). that may result in the expenditure by a We expect the economic impact of 35 feet at mean high water and 39 feet State, local, or tribal government, in the this proposed rule to be so minimal that at mean low water. aggregate, or by the private sector of a full Regulatory Evaluation, under The existing regulations listed at 33 $100,000,000 or more in any one year. paragraph 10e of the regulatory policies CFR 117.755, require the Route 36 Though this proposed rule would not and procedures of DOT, is unnecessary. Bridge to open on signal; except that, result in such an expenditure, we do This conclusion is based on the fact from May 15 through October 15, 7 a.m. discuss the effects of this rule elsewhere that the synchronization of the opening to 8 p.m., the draw need open only at in this preamble. times for the moveable bridges across quarter before the hour and quarter after the Shrewsbury River will better meet Taking of Private Property the hour. the present needs of navigation. This proposed rule would not effect a The Coast Guard received requests taking of private property or otherwise Small Entities from mariners to change the drawbridge have taking implications under E.O. operation regulations that govern the Under the Regulatory Flexibility Act 12630, Governmental Actions and Route 36 Bridge. Presently the two (5 U.S.C. 601–612), we considered Interference with Constitutionally moveable bridges across the Shrewsbury whether this proposed rule would have Protected Property Rights. River, the Route 36 Bridge, and the a significant economic impact on a Monmouth County highway bridge, substantial number of small entities. Civil Justice Reform have staggered opening schedules The term ‘‘small entities’’ comprises This proposed rule meets applicable during the boating season. The mariners small businesses, not-for-profit standards in sections 3(a) and 3(b)(2) of have asked the Coast Guard to change organizations that are independently Executive Order 12988, Civil Justice the opening schedule for the Route 36 owned and operated and are not Reform, to minimize litigation, Bridge in order to synchronize the dominant in their fields, and eliminate ambiguity, and reduce bridge opening times for the two governmental jurisdictions with burden. moveable bridges during the boating populations of less than 50,000. Protection of Children season to help reduce vessel transit The Coast Guard certifies under delays and enhance boating safety. section 5 U.S.C. 605(b), that this We have analyzed this proposed rule The second moveable bridge across proposed rule would not have a under Executive Order 13045, the Shrewsbury River, the Monmouth significant economic impact on a Protection of Children from County highway bridge, at mile 4.0, is substantial number of small entities. Environmental Health Risks and Safety required to open on signal; except that, This conclusion is based on the fact Risks. This rule is not an economically from May 15 through September 30, on that the synchronization of the opening significant rule and would not create an Saturdays, Sundays, and holidays, from times for the moveable bridges across environmental risk to health or risk to 9 a.m. to 7 p.m., the draw need open the Shrewsbury River will better meet safety that may disproportionately affect only on the hour and half hour. the present needs of navigation. children. This proposed rule if adopted would If you think that your business, Indian Tribal Governments synchronize the bridge opening times at organization, or governmental the two bridges by requiring the Route jurisdiction qualifies as a small entity This rule does not have tribal 36 Bridge to open on signal from May and that this rule would have a implications under Executive Order 15 through October 15, 7 a.m. to 8 p.m., significant economic impact on it, 13175, Consultation and Coordination on the hour and half hour only. please submit a comment (see with Indian Tribal Governments, This proposed change is expected to ADDRESSES) explaining why you think it because it would not have a substantial better meet the present needs of qualifies and how and to what degree direct effect on one or more Indian navigation. this rule would economically affect it. tribes, on the relationship between the Federal Government and Indian tribes, Discussion of Proposal Collection of Information or on the distribution of power and This proposed change would amend This proposed rule would call for no responsibilities between the Federal 33 CFR 117.755 by revising paragraph new collection of information under the Government and Indian tribes. (a), which lists the Route 36 Bridge Paperwork Reduction Act of 1995 (44 To help the Coast Guard establish drawbridge operation regulations. This U.S.C. 3501–3520.). regular and meaningful consultation proposed change would allow the Route and collaboration with Indian and 36 Bridge to open on signal; except that, Federalism Alaskan Native tribes, we published a from May 15 through October 15, from A rule has implications for federalism notice in the Federal Register (66 FR 7 a.m. to 8 p.m., the draw need open under Executive Order 13132, 36361, July 11, 2001) requesting only on the hour and half hour. Federalism, if it has a substantial direct comments on how to best carry out the effect on State or local governments and Regulatory Evaluation Order. We invite your comments on would either preempt State law or how this proposed rule might impact This proposed rule is not a impose a substantial direct cost of tribal governments, even if that impact ‘‘significant regulatory action’’ under compliance on them. We have analyzed may not constitute a ‘‘tribal section 3(f) of Executive Order 12866, this proposed rule under that Order and implication’’ under the Order. Regulatory Planning and Review, and have determined that it does not have Energy Effects does not require an assessment of implications for federalism. potential costs and benefits under We have analyzed this rule under 6(a)(3) of that Order. The Office of Unfunded Mandates Reform Act Executive Order 13211, Actions Management and Budget has not The Unfunded Mandates Reform Act Concerning Regulations That reviewed it under that Order. It is not of 1995 (2 U.S.C. 1531–1538) requires Significantly Affect Energy Supply,

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Distribution, or Use. We have DEPARTMENT OF DEFENSE Interior and State of Florida (from determined that it is not a ‘‘significant whom concurrence on the final rule is energy action’’ under that order because Department of the Army, Corps of required by statute) and other Federal it is not a ‘‘significant regulatory action’’ Engineers agencies who will likely participate in under Executive Order 12866 and is not the interagency review of the rule under likely to have a significant adverse effect 33 CFR Part 385 Executive Order 12866 will be in on the supply, distribution, or use of RIN 0710–AA49 attendance to listen to stakeholder energy. It has not been designated by the views. The meeting will be facilitated by Administrator of the Office of Programmatic Regulations for the the Council on Environmental Quality. Information and Regulatory Affairs as a Comprehensive Everglades Authority: Section 601, Public Law 106– significant energy action. Therefore, it Restoration Plan 541, 114 Stat. 2680; 10 U.S.C. 3013(g)(3); 33 does not require a Statement of Energy U.S.C. 1 and 701; and 5 U.S.C. 301. AGENCY: Army Corps of Engineers, DOD. Effects under Executive Order 13211. Dated: January 31, 2003. ACTION: Notice of public meeting. Environment George S. Dunlop, We considered the environmental SUMMARY: The Council on Deputy Assistant Secretary of the Army, impact of this proposed rule and Environmental Quality will host a Department of the Army. concluded that, under figure 2–1, public meeting for stakeholders to [FR Doc. 03–2776 Filed 2–4–03; 8:45 am] paragraph (32)(e), of Commandant clarify and respond to comments filed BILLING CODE 3710–92–P Instruction M16475.1d, this proposed on the proposed rule to establish rule is categorically excluded from programmatic regulations for the further environmental documentation Comprehensive Everglades Restoration FEDERAL COMMUNICATIONS because promulgation of drawbridge Plan. Congress approved the COMMISSION regulations have been found not to have Comprehensive Everglades Restoration a significant effect on the environment. Plan in section 601 of the Water 47 CFR Part 73 A written ‘‘Categorical Exclusion Resources Development Act of 2000, Public Law 106–541, 114 Stat. 2680, [DA 03–154; MB Docket No. 03–12, RM– Determination’’ is not required for this 10627; MB Docket No. 03–13, RM–10628; rule. which was enacted into law on and MB Docket No. 03–14, RM–10629] December 11, 2000. The Act requires the List of Subjects in 33 CFR Part 117 Secretary of the Army to promulgate Radio Broadcasting Services: Bridges. programmatic regulations, with the Johnston City and Marion, Illinois; concurrence of the Secretary of the Fredericksburg and Mason, Texas; Regulations Interior and the Governor of Florida, to Charles Town, West Virginia and For the reasons set out in the ensure that the goals and purposes of Stephens City, Virginia preamble, the Coast Guard proposes to the Comprehensive Everglades amend 33 CFR part 117 as follows: Restoration Plan are achieved. AGENCY: Federal Communications DATES: The public meeting will take Commission. PART 117—DRAWBRIDGE place on February 6, 2003, from 1 to 5 ACTION: Proposed rule. OPERATION REGULATIONS pm. SUMMARY: This document requests ADDRESSES: The meeting will be held at 1. The authority citation for part 117 comments on proposals in three the Council on Environmental Quality, continues to read as follows: separately docketed proceedings in a White House Conference Center, Authority: 33 U.S.C. 499; 49 CFR 1.46; 33 multiple docket Notice of Proposed Rule Truman Room, 3rd Floor, 726 Jackson CFR 1.05–1(g); section 117.255 also issued Making. The first, filed by Cleveland Place, Washington, DC. under the authority of Pub. L. 102–587, 106 Radio Licenses, LLC, proposes to change Stat. 5039. FOR FURTHER INFORMATION CONTACT: Stu Station WXVA–FM’s community of 2. Section 117.755 is amended by Appelbaum, Corps of Engineers, license from Charles Town, West revising paragraph (a) to read as follows: Jacksonville District, P.O. Box 4970, Virginia, to Stephens City, Virginia, and § 117.755 Shrewsbury River. Jacksonville, Florida 32232–0019, provide Stephens City with its first local phone (904) 232–1877; fax (904) 232– (a) The Route 36 Bridge, mile 1.8, at aural transmission service. The 1434. Highlands, New Jersey, shall open on coordinates for requested Channel 252A signal; except that, from May 15 through SUPPLEMENTARY INFORMATION: On August at Stephens City, Virginia are 39–07–30 October 15, 7 a.m. to 8 p.m., the draw 2, 2002 the Army published the NL and 78–04–26 WL, with a site need open on the hour and half hour proposed rule to establish the restriction of 13.3 kilometers (8.3 miles) only. The owners of the bridge shall programmatic regulations in the Federal east of Stephens City, Virginia. The provide and keep in good legible Register (67 FR 50540). The public second, filed by Clear Channel condition, two clearance gauges, with comment period on the proposed rule Broadcasting Licenses, Inc., proposes to figures not less than eight inches high, closed on October 1, 2002. The change Station WDDD–FM’s community designed, installed, and maintained proposed regulations establish processes of license from Marion, Illinois to according to the provisions of § 118.160 and procedures that will guide the Johnston City, Illinois, and provide of this chapter. Army Corps of Engineers and its Johnston City with its first local FM * * * * * partners in the implementation of the transmission station. The coordinates Comprehensive Everglades Restoration for requested Channel 297B at Johnston Dated: January 23, 2003. Plan. The purpose of the public meeting City, Illinois, are 37–45–15 NL and 88– Vivien S. Crea, is to provide an opportunity for 56–05 WL, with a site restriction of 7.4 Rear Admiral, U.S. Coast Guard, Commander, stakeholders to clarify and respond to kilometers (4.6 miles) south of Johnston First Coast Guard District. comments filed on the proposed rule. City, Illinois. The third proposal was [FR Doc. 03–2696 Filed 2–4–03; 8:45 am] Representatives of the Army (the rule filed by Jayson and Janice Fritz. They BILLING CODE 4910–15–P writing agency), the Department of the hold a construction permit to operate a

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new FM broadcast station on Channel 202–863–2898, or via e-mail FEDERAL COMMUNICATIONS 289C2 at Mason, Texas. They request [email protected]. COMMISSION that the Commission downgrade The provisions of the Regulatory 47 CFR Part 73 Channel 289C2 to Channel 289C3, and Flexibility Act of 1980 do not apply to reallot that channel to Fredericksburg, this proceeding. Texas, to provide Fredericksburg with [DA 03–50; MB Docket Nos. 03–6, 03–7; RM–RM–10595, RM–10596] its first local commercial FM Members of the public should note transmission service. The coordinates that from the time a Notice of Proposed Radio Broadcasting Services; for requested Channel 289C3 at Rule Making is issued until the matter Garysburg, Roanoke Rapids, North Fredericksburg, Texas are 30–23–37 NL is no longer subject to Commission Carolina; Caledonia, Upper Sandusky, and 99–01–05 WL, with a site restriction consideration or court review, all ex OH of 19.3 kilometers (12 miles) northwest parte contacts are prohibited in of Fredericksburg. Commission proceedings, such as these AGENCY: Federal Communications The foregoing reallotment proposals proceedings, which involve channel Commission. comply with the provisions of Section allotments. See 47 CFR 1.1204(b) for ACTION: Proposed rule. 1.420(i) of the Commission’s Rules, and rules governing permissible ex parte therefore, the Commission will not contacts. SUMMARY: The Commission seeks accept competing expressions of interest comment on proposals in two separate in the use of Channel 252A at Stephens For information regarding proper docketed proceedings in a multiple City, Virginia, Channel 297B at Johnston filing procedures for comments, see 47 docket Notice of Proposed Rule Making. City, Illinois, or Channel 289C3 at CFR 1.415 and 1.420. The first, filed by MainQuad Fredericksburg, Texas, or require the List of Subjects in 47 CFR Part 73 Communications, Inc., proposes to rulemaking proponents to demonstrate reallot Channel 272A from Roanoke the availability of any additional Radio, Radio broadcasting. Rapids, North Carolina, to Garysburg, equivalent class channels. North Carolina, as the community’s For the reasons discussed in the DATES: Comments must be filed on or second local aural transmission service, before March 10, 2003, and reply preamble, the Federal Communications and modify the license for Station comments on or before March 25, 2003. Commission proposes to amend 47 CFR WPTM(FM) to reflect the change of Part 73 as follows: ADDRESSES: Secretary, Federal community. Channel 272A can be reallotted from Roanoke Rapids, to Communications Commission, 445 12th PART 73—RADIO BROADCAST Garysburg, North Carolina at Street, SW., Room TW–A325, SERVICES Washington, DC 20554. In addition to MainQuad’s requested existing transmitter site 9.4 kilometers (5.8 filing comments with the FCC, 1. The authority citation for Part 73 miles) northwest of the community at interested parties should serve counsel continues to read as follows: for the rulemaking proponents, as coordinates 40–35–43 NL and 93–02–59 follows: Mark N. Lipp, Esq. and J. Authority: 47 U.S.C. 154, 303, 334, and WL. The second, filed by Clear Channel Thomas Nolan, Esq., Shook, Hardy & 336. Broadcasting Licenses, Inc. proposes to reallot Channel 240A from Upper Bacon; 600 14th Street, NW., Suite 800; § 73.202 [Amended] Washington, DC 20005–2004 (Counsel Sandusky, Ohio to Caledonia, Ohio, as for Cleveland Radio Licenses, LLC and 2. Section 73.202(b), the Table of FM the community’s first local aural Clear Channel Broadcasting Licenses, Allotments under Illinois, is amended transmission service, and modify the Inc.); and Vincent J. Curtis, Jr., Esq., by adding Johnston City, Channel 297B, license for Station WYNT(FM) to reflect Anne Goodwin Crump, Esq., and Alison and removing Channel 297B at Marion. the change of community. Channel 240A can be reallotted from Upper J. Shapiro, Esq., Fletcher Heald & 3. Section 73.202(b), the Table of FM Hildreth, P.L.C.; 1300 North 17th Street, Sandusky to Caledonia, Ohio, at Clear Allotments under Texas, is amended by 11th Floor; Arlington, Virginia 22209 Channel’s requested site 8.2 kilometers adding Fredericksburg, Channel 289C3, (Counsel for Jayson and Janice Fritz). (5.1 miles) southwest of the community and removing Channel 289C2 at Mason. FOR FURTHER INFORMATION CONTACT: R. at coordinates 40–35–43 NL and 93–02– Barthen Gorman, Media Bureau, (202) 4. Section 73.202(b), the Table of FM 59 WL. 418–2180. Allotments under Virginia, is amended DATES: Comments must be filed on or SUPPLEMENTARY INFORMATION: This is a by adding Stephens City, Channel 252A. before March 10, 2003, and reply synopsis of the Commission’s Notice of 5. Section 73.202(b), the Table of FM comments must be filed on or before Proposed Rule Making, MB Docket No. allotments under West Virginia, is March 25, 2003. 03–12; MB Docket No. 03–13; and MB amended by removing Charles Town, ADDRESSES: Federal Communications Docket No. 03–14, adopted January 15, Channel 252A. Commission, 445 Twelfth Street, SW., 2003, and released January 17, 2003. Washington, DC 20554. In addition to Federal Communications Commission. The full text of this Commission filing comments with the FCC, decision is available for inspection and John A. Karousos, interested parties should serve the copying during regular business hours Assistant Chief, Audio Division, Media petitioner, his counsel, or consultant, as in the FCC’s Reference Information Bureau. follows: MainQuad Communications, Center at Portals II, 445 12th Street, [FR Doc. 03–2669 Filed 2–4–03; 8:45 am] Inc., c/o John M. Pelkey, Esq., Garvey, SW., CY–A257, Washington, DC 20554. BILLING CODE 6712–01–P Schuber & Barer, 5th Floor, 1000 This document may also be purchased Potomac Street, NW., Washington, DC from the Commission’s duplicating 20007; and Clear Channel Broadcasting contractors, Qualex International, Licenses, Inc., c/o Marissa G. Repp, Portals II, 445 12th Street, SW., Room Esq., F. William LeBeau, Esq., Hogan & CY–B402, Washington, DC 20554, Hartson, LLP, 555 13th Street, NW., telephone 202–863–2893, facsimile Washington, DC 20004.

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FOR FURTHER INFORMATION CONTACT: FEDERAL COMMUNICATIONS released January 17, 2003. The full text Victoria M. McCauley, Mass Media COMMISSION of this Commission decision is available Bureau, (202) 418–2180. for inspection and copying during SUPPLEMENTARY INFORMATION: This is a 47 CFR Part 73 regular business hours in the FCC’s synopsis of the Commission’s Notice of [DA 03–52; MB Docket No. 03–8; RM–10625] Reference Information Center at Portals Proposed Rule Making, MB Docket Nos. II, 445 12th Street, SW., CY–A257, 03–6 and 03–7, adopted January 15, Radio Broadcasting Services; Saluda Washington, DC 20554. This document 2003, and released January 17, 2003. and Irmo, South Carolina may also be purchased from the The full text of this document is AGENCY: Federal Communications Commission’s duplicating contractors, available for public inspection and Commission. Qualex International, Portals II, 445 copying during regular business hours 12th Street, SW., Room CY–B402, ACTION: Proposed rule. at the FCC Reference Information Washington, DC 20554, telephone 202– Center, Portals II, 445 12th Street, SW., SUMMARY: This document requests 863–2893, facsimile 202–863–2898, or Room CY–A257, Washington, DC 20554. comments on a petition for rule making via e-mail [email protected]. This document may also be purchased filed by Breckenridge Communications, The provisions of the Regulatory from the Commission’s duplicating Inc. (‘‘Petitioner’’), licensee of Station contractor, Qualex International, Portals Flexibility Act of 1980 do not apply to WJES–FM, Channel 221A, Saluda, this proceeding. II, 445 12th Street, SW., Room CY–B402, South Carolina. Petitioner proposes to Washington, DC 20554, telephone 202– upgrade Station WJES–FM from Members of the public should note 863–2893, facsimile 202–863–2898, or Channel 221A to 221C3, change Station that from the time a notice of proposed via e-mail [email protected]. WJES–FM’s community of license from rule making is issued until the matter is The Provisions of the Regulatory Saluda to Irmo, South Carolina, and no longer subject to Commission Flexibility Act of 1980 do not apply to provide Irmo with its first local aural consideration or court review, all ex this proceeding. Members of the public transmission service. Petitioner has parte contacts are prohibited in should note that from the time a Notice submitted a preclusion study Commission proceedings, such as this of Proposed Rule Making is issued until demonstrating that upgrading Station one, which involve channel allotments. the matter is no longer subject to WJES–FM from Channel 221A to 221C3 See 47 CFR 1.1204(b) for rules Commission consideration or court and reallotting the station to Irmo, governing permissible ex parte contacts. review, all ex parte contacts are South Carolina, would not preclude the prohibited in Commission proceedings, For information regarding proper establishment of any new or upgraded filing procedures for comments, see 47 such as this one, which involve channel noncommercial educational station on CFR 1.415 and 1.420. allotments. See 47 CFR 1.1204(b) for Channels 218, 219, or 220. The rules governing permissible ex parte coordinates for requested Channel List of Subjects in 47 CFR Part 73 contacts. 221C3 at Irmo, South Carolina, are 34– For information regarding proper 09–00 NL and 81–13–00 WL, with a site Radio, Radio broadcasting. filing procedures for comments, see 47 restriction of 7.8 kilometers (4.9 miles) For the reasons discussed in the CFR 1.415 and 1.420. northwest of Irmo. preamble, the Federal Communications List of Subjects in 47 CFR Part 73 Petitioner’s reallotment proposal Commission proposes to amend 47 CFR complies with the provisions of section part 73 as follows: Radio, Radio broadcasting. 1.420(i) of the Commission’s rules, and For the reasons discussed in the therefore, the Commission will not PART 73—RADIO BROADCAST preamble, the Federal Communications accept competing expressions of interest SERVICES Commission proposes to amend 47 CFR in the use of Channel 221C3 at Irmo, Part 73 as follows: South Carolina, or require the petitioner 1. The authority citation for part 73 to demonstrate the availability of an continues to read as follows: PART 73—RADIO BROADCAST additional equivalent class channel. SERVICES Authority: 47 U.S.C. 154, 303, 334, and DATES: Comments must be filed on or 336. 1. The authority citation for Part 73 before March 10, 2003, and reply continues to read as follows: comments on or before March 25, 2003. § 73.202 [Amended] Authority: 47 U.S.C. 154, 303, 334 and 336. ADDRESSES: Secretary, Federal 2. Section 73.202(b), the Table of FM Communications Commission, 445 12th Allotments under South Carolina, is 2. Section 73.202(b), the Table of FM Street, SW., Room TW–A325, Allotments under North Carolina is amended by adding Irmo, Channel Washington, DC 20554. In addition to 221C3, and removing Saluda, Channel amended by adding Channel 272A at filing comments with the FCC, 221A. Garysburg and by removing Roanoke interested parties should serve the Rapids, Channel 272A. petitioner’s counsel, as follows: Federal Communications Commission. 3. Section 73.202(b), the Table of FM Matthew H. McCormick, Esq, Reddy, John A. Karousos, Allotments under Ohio, is amended by Begley & McCormick, LLP; 2175 K Assistant Chief, Audio Division, Media adding Caledonia, Channel 240A and by Street, NW., Suite 350; Washington, DC Bureau. removing Upper Sandusky, Channel 20037–1845. [FR Doc. 03–2666 Filed 2–4–03; 8:45 am] 240A. FOR FURTHER INFORMATION CONTACT: R. BILLING CODE 6712–01–P Federal Communications Commission. Barthen Gorman, Media Bureau, (202) John A. Karousos, 418–2180. Assistant Chief, Audio Division Media SUPPLEMENTARY INFORMATION: This is a Bureau. synopsis of the Commission’s notice of [FR Doc. 03–2667 Filed 2–4–03; 8:45 am] proposed rule making, MB Docket No. BILLING CODE 6712–01–P 03–8, adopted January 15, 2003, and

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DEPARTMENT OF TRANSPORTATION The industry standard Sierra referred removed this prohibition. Sierra is to in its petition is Society of confused as to when and how this National Highway Traffic Safety Automotive Engineers (SAE) J1432, combination (in the SAE standard) had Administration ‘‘High-Mounted Stop Lamps for Use on come to be allowed. Vehicles 2032 mm or More in Overall As stated above, the CHMSLs of 49 CFR Part 571 Width (March 2000).’’ This standard which Sierra speaks are auxiliary lamps specifies requirements for CHMSLs on under FMVSS No. 108, and as such, are Denial of Petition for Rulemaking; heavy trucks. This standard was not specifically regulated for vehicles Federal Motor Vehicle Safety amended to allow combination of the that are 2032 mm or wider. The only Standards CHMSL and three identification lamps. specific criterion applicable to such AGENCY: National Highway Traffic This change to J1432 first appeared in supplemental stop lamps is that they Safety Administration (NHTSA), the 2001 version of the ‘‘SAE Ground not impair the effectiveness of any Department of Transportation. Vehicle Lighting Standards Manual.’’ To required lamps. Conceptually, auxiliary maintain the conspicuity of each signal, ACTION: Denial of petition for stop lamps should not impair the rulemaking. J1432 specifies that the CHMSL must effectiveness of the required emit at least three to five times identification lamps if they perform SUMMARY: This document denies the (depending on lamp position) the identically to required stop lamps. One petition submitted by Sierra Products, amount of light that the identification means for assuring this is for the lamps Inc. (Sierra), to amend Federal Motor lamps emit. to meet SAE J1432 or the requirements Vehicle Safety Standard (FMVSS) No. Petitioner’s Rationale: Sierra believes in FMVSS No. 108 that apply to stop 108, ‘‘Lamps, Reflective Devices, and that, because SAE J1432 has been lamps. The SAE document, among other Associated Equipment,’’ to allow center amended to allow the combination of things, states that ‘‘[t]he purpose of the high-mounted stop lamps (CHMSLs) to CHMSLs and identification lamps on high-mounted stop lamp or lamps is to be combined with identification lamps, heavy trucks, FMVSS No. 108 should be provide a signal over intervening and to require that identification lamps changed as well. It states that if the vehicles to the driver of following be lowered to eye height on heavy agency were to amend the standard to vehicles.’’ As such, it has the same trucks. allow the combination of the signal purpose as the identification lamps in lamp configurations and also to require FOR FURTHER INFORMATION CONTACT: that they, too, are required to be located Mr. this combination to be moved Chris Flanigan, Office of Rulemaking, to provide a preview over intervening downward to ‘‘eye level,’’ the CHMSLs vehicles. NHTSA, 400 Seventh Street, SW., would be located in a more effective Washington, DC 20590. Mr. Flanigan’s Sierra is confused about the CHMSLs position. It also believes that this would required by FMVSS No. 108 and the telephone number is: (202) 366–4918. provide an economic incentive for His facsimile number is (202) 366–4329. stop lamps that are described in SAE manufacturers of heavy trucks to J1432. While the FMVSS No. 108 SUPPLEMENTARY INFORMATION: By a letter include CHMSLs on these vehicles. CHMSLs, which are required on some dated September 19, 2001, Sierra Regarding the agency’s current vehicles, are prohibited from being petitioned the agency to amend FMVSS requirement that identification lamps be combined with any lamp (whether No. 108 to allow vehicles with a width mounted ‘‘as high as practicable,’’ Sierra required or auxiliary, except for cargo of 2032 millimeters (mm) or greater to believes it is outdated. It states that the lamps), the SAE J1432 CHMSLs are not have their CHMSLs physically and original reasons for this requirement regulated in any manner. Thus, contrary optically combined with their three were for ‘‘visually checking a vehicle’s to Sierra’s statement, there has never identification lamps and that this height in order to avoid hitting a bridge been such a rescission for the CHMSL combination of lamps be required to be or overhang’’ and ‘‘for following traffic regulated by FMVSS No. 108. More lowered to eye height. Sierra found that to spot slow moving trucks cresting importantly, there has never been a an industry standard was being changed steep hills.’’ Sierra states that, today, prohibition on combining to allow the combination of these lamps. neither of these reasons makes sense. It supplementary stop lamps with Background: FMVSS No. 108 requires believes that heavy trucks routinely CHMSLs to be on all motor vehicles, identification lamps. travel as fast as regular traffic and they In fact, this interpretation has been except trailers and motorcycles, that are no longer need identification lamps to expressly stated in at least three letters less than 2032 mm wide. It does not visually clear bridges and overhangs. issued by the agency to persons asking require CHMSLs on any other vehicle. Also, it states that ‘‘steep hill crests have about such auxiliary stop lamps. The CHMSLs on vehicles not required to been leveled.’’ No information was most recent was a June 1999 letter to an have these lamps are considered by the supplied by Sierra to support these anonymous author which stated that: agency to be auxiliary lamps that are not assertions. specifically regulated. Manufacturers Agency Analysis: The agency believes You have also asked whether this product may voluntarily install CHMSLs on there are no recommendations in [a light bar containing three identification Sierra’s petition that would improve lamps] can also incorporate ‘‘a set of brake vehicles on which CHMSLs are not lights to act as a ‘third eye’ brake light, required provided that the voluntary motor vehicle safety. Sierra has made a similar to those required for automobiles.’’ In CHMSL does not impair the number of assumptions that are not other words, the identification lamp bar effectiveness of required lamps. based in fact. The petition references a would act as a supplementary stop lamp FMVSS No. 108 requires that change made to SAE J1432 that allows when the brakes are applied. identification lamps (a cluster of three combination of the CHMSL and Standard No. 108 permits supplementary lamps) be mounted on the centerline identification lamps on vehicles with a lamps as long as they do not impair the and as high as practicable on vehicles width that is 2032 mm or greater. Sierra effectiveness of the lighting equipment whose overall width is 2032 mm or further stated that it is aware that the required by the standard (S5.1.3). The function of the identification lamps is to more. The purpose of identification agency has been adamant about not indicate the presence of a large vehicle in the lamps is to uniquely identify large allowing any other lamps to be mounted roadway. This effectiveness of this function vehicles and do so with the longest in the same housing with a CHMSL, and would not be impaired by an increase in possible sight preview of the lamps. that it was not aware that NHTSA had intensity of the lamps when the brake pedal

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is applied. Therefore, your product can Subconscious Attention, and therefore mounting height of identification lamps incorporate a supplementary stop lamp is the most ‘Conspicuous’ and the most is lowered, the time that nearby drivers function. effective place to locate all rear Signal will have to identify the vehicle, as a Sierra argued further that, if Vehicle Lights, except ‘Clearance’ Lights heavy truck will lessen. This is contrary acceptable, it would make ‘‘economic * * * which should represent ‘Extreme to the intent of the requirement. and safety sense’’ to allow this signal Width’ * * * while also located at Eye On the other hand, the mounting combination to be used on vehicles with Level.’’ However, Sierra provided no height of identification lamps has been a width of 2032 mm or greater and to specific test data to support its long established to be ‘‘as high as be lowered to ‘‘eye height.’’ Sierra’s assertions that the aforementioned practicable.’’ This is to make nearby economic argument is that installing a research is applicable to its suggested drivers aware of the vehicle’s size. If CHMSL separately from the amendment. these lamps were lowered to eye level, identification lamps costs more. Now While putting all lamps at eye level approaching drivers may not be able to that the agency has allowed the may seem plausible, there is no distinguish large commercial vehicles combination of supplementary stop evidence that this is the most effective from passenger vehicles. lamps and identification lamps, Sierra location. Sierra did not specify what the Sierra has provided no convincing asserts that the CHMSL must be in the height should be. Eye height is different rationale that Standard No. 108 should wrong location, thus forcing the for drivers of sports cars, passenger cars, be amended in the manner in which it installation of a separate lamp anyway. light duty trucks, large trucks, and petitioned and, in accordance with 49 To eliminate the need for an extra lamp, buses. Also, a significant reason for CFR part 552, after review of the Sierra wants the combination of lamps higher mounting heights for lamps that petition, the agency has concluded that to be lowered. provide signals of driver intent (stop it should not be granted. Accordingly, it In the second part of the petition, and turn lamps) is to inform following denies Sierra’s petition. Sierra requests that the identification drivers, not just the most immediately (49 U.S.C. 30118(d) and 30120(h); lamps, as well as all signal and marker rearward one, of the vehicle’s intent to delegations of authority at 49 CFR 1.50 and lamps mounted on the rear, be required stop. The agency is not prepared to 501.8) to be mounted at eye level. Sierra initiate rulemaking to require CHMSLs indicated that ‘‘numerous Public and on heavy trucks. If identification lamps Issued on: January 30, 2003. Federally Financed Tests performed were lowered, the purpose of uniquely Stephen R. Kratzke, prove that the ‘Centered, Eye Level’ identifying large vehicles with the Associate Administrator for Rulemaking. Location is where following Drivers longest possible sight preview of the [FR Doc. 03–2700 Filed 2–4–03; 8:45 am] focus most of their Conscience and/or lamps would be compromised. As the BILLING CODE 4910–59–P

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Notices Federal Register Vol. 68, No. 24

Wednesday, February 5, 2003

This section of the FEDERAL REGISTER and poultry products are safe, imported into the United States is contains documents other than rules or wholesome, unadulterated, and included in FSIS’s annual Report to proposed rules that are applicable to the properly labeled and packaged. Congress. Additionally, FSIS has public. Notices of hearings and investigations, FSIS is requesting an extension and established procedures allowing committee meetings, agency decisions and revision to the information collection establishments importing product to rulings, delegations of authority, filing of petitions and applications and agency package addressing meat and poultry stamp such product with the inspection statements of organization and functions are paperwork and recordkeeping legend prior to FSIS inspection, if they examples of documents appearing in this requirements regarding exportation, receive FSIS prior approval. section. transportation, and importation of meat Estimate of Burden: The public and poultry products. FSIS requires that reporting burden for this collection of meat and poultry establishments information is estimated to average DEPARTMENT OF AGRICULTURE exporting product to foreign countries .0773501 hours per response. complete an export certificate. Respondents: Meat and poultry Food Safety and Inspection Service Establishments must supply the type, establishments, and importers and exporters. [Docket No. 03–004N] amount, and destination of product being exported. The information Estimated Number of Respondents: Notice of Request for Extension and required on this form does not duplicate 7,374. Estimated Number of Responses per Revision of a Currently Approved any information required by other Respondent: 295.88866. Information Collection Federal agencies. The form is necessary Estimated Total Annual Burden on to certify to the importing countries that Respondents: 168,769 hours. AGENCY: Food Safety and Inspection FSIS inspectors have inspected the Service, USDA. Copies of this information collection product and have found it sound and assessment can be obtained from John ACTION: Notice and request for wholesome. Additionally, FSIS uses the comments. O’Connell, Paperwork Specialist, Food information from the form in its annual Safety and Inspection Service, USDA, Report to Congress as required by SUMMARY: In accordance with the 300 12th Street, SW., Room 112, sections 301(c)(4) and 20(e) of the FMIA Paperwork Reduction Act of 1995 and Washington, DC 20250–3700, (202) 720– and sections 27 and 5(c)(4) of the PPIA. the Office of Management and Budget 5276. Meat and poultry products not (OMB) regulations, this notice Comments are invited on: (a) Whether marked with the mark of inspection and announces the Food Safety and the proposed collection of information shipped from one official establishment Inspection Service’s (FSIS) intention to is necessary for the proper performance to another for further processing must request an extension for and revision to of FSIS’ functions, including whether be transported under FSIS seal to a currently approved information the information will have practical prevent such unmarked product from collection package regarding utility; (b) the accuracy of FSIS’ estimate entering into commerce. To track exportation, transportation, and of the burden of the proposed collection product shipped under seal, FSIS importation of meat and poultry of information, including the validity of requires shipping establishments to products. the methodology and assumptions used; complete a form that identifies the type, (c) ways to enhance the quality, utility, DATES: Comments on this notice must be amount, and weight of the product. and clarity of the information to be received on or before March 31, 2003. A foreign country exporting meat or collected; and (d) ways to minimize the ADDITIONAL INFORMATION OR COMMENTS: poultry products to the U.S. must burden of the collection of information Contact John O’Connell, Paperwork establish eligibility for importation of on those who are to respond, including Specialist, Food Safety and Inspection product into the U.S. and annually through use of appropriate automated, Service, USDA, 300 12th Street, SW., certify that its inspection systems are electronic, mechanical, or other Room 112, Washington, DC 20250– ‘‘at least equal to’’ the U.S. inspection technological collection techniques, or 3700, (202) 720–0345. system. To maintain eligibility, a other forms of information technology. SUPPLEMENTARY INFORMATION: written report must be prepared Comments may be sent to both John Title: Exportation, Transportation, monthly by a representative of the O’Connell, Paperwork Specialist, at the and Importation of Meat and Poultry foreign inspection system for each address provided above, and the Desk Products. establishment listed in the certification. Officer for Agriculture, Office of OMB Number: 0583–0094. Additionally, meat and poultry products Information and Regulatory Affairs, Expiration Date of Approval: 1/31/03. intended for import into the U.S. must Office of Management and Budget, Type of Request: Extension and be accompanied by a health certificate, Washington, DC 20253. revision of a currently approved signed by an official of the foreign All responses to this notice will be information collection. government, stating that the products summarized and included in the request Abstract: FSIS has been delegated the have been produced by certified foreign for OMB approval. All comments will authority to exercise the functions of the establishments. Establishments or also become a matter of public record. Secretary as provided in the Federal brokers wishing to import product into Meat Inspection Act (FMIA) (21 U.S.C. the United States must complete a form Additional Public Notification 601 et seq.) and the Poultry Products that specifies the type, amount, This notice is designed to provide Inspection Act (PPIA) (21 U.S.C. 451 et originating country and destination of information to the public and request seq.). These statutes mandate that FSIS the meat and poultry product. The their comments on FSIS’ information protect the public by ensuring that meat amount of meat and poultry product collection requirements regarding

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Exportation, Transportation, and Townsend, MT 59644, phone 406–266– DEPARTMENT OF AGRICULTURE Importation of Meat and Poultry 3425. Products. Public involvement is Rural Housing Service Dated: January 30, 2003. important. Consequently, in an effort to better ensure that minorities, women, Dwight Chambers, Notice of Timeframe for the Section and persons with disabilities are made Acting Forest Supervisor. 514 Farm Labor Housing Loans and aware of this request for the extension [FR Doc. 03–2653 Filed 2–4–03; 8:45 am] Section 516 Farm Labor Housing and revision of the currently approved BILLING CODE 3410–11–M Grants for Off-Farm Housing for Fiscal information collection request 0583– Year 2003; Correction 0094 and are informed about the AGENCY: Rural Housing Service, USDA. mechanism for providing their DEPARTMENT OF AGRICULTURE ACTION: comments, FSIS will announce it and Notice; correction. provide copies of this Federal Register Forest Service SUMMARY: The Rural Housing Service publication in the FSIS Constituent (RHS) corrects a notice published Medicine Bow-Routt National Forests Update. December 27, 2002 (67 FR 79030— FSIS provides a weekly FSIS and Thunder Basin National Grassland 79033). This action is taken to correct Constituent Update, which is Jackson County, Colorado; Green the address of the New Jersey State communicated via fax to over 300 Ridge Mountain Pine Beetle Analysis; Office. organizations and individuals. In Correction Accordingly, the notice published addition, the update is available on line December 27, 2002, (67 FR 79030— through the FSIS Web page located at AGENCY: Forest Service, USDA. 79033), is corrected as follows: http://www.fsis.usda.gov. The update is ACTION: Notice of intent to prepare an On page 79031 in the third column, used to provide information regarding ‘‘New Jersey State Office, Tarnsfield FSIS policies, procedures, regulations, Environmental Impact Statement; correction. Plaza, Suite 22, 790 Woodland Road, Federal Register Notices, FSIS public Mt. Holly, NJ 08060’’ should read ‘‘New meetings, recalls, and any other types of Jersey State Office, 5th Floor North SUMMARY: The Forest Service published information that could affect or would Suite 500, 8000 Midlantic Dr., Mt. a notice of intent to prepare an be of interest to our constituents/ Laurel, NJ 08054’’. stakeholders. The constituent fax list environmental impact statement for the consists of industry, trade, and farm Green Ridge Mountain Pine Beetle Dated: January 28, 2003. groups, consumer interest groups, allied Analysis in the Federal Register of Arthur A. Garcia, health professionals, scientific August 22, 2002. The original notice Administrator, Rural Housing Service. professionals and other individuals that designated the Regional Forester as the [FR Doc. 03–2660 Filed 2–4–03; 8:45 am] have requested to be included. Through Responsible Official. This correction BILLING CODE 3410–XV–P these various channels, FSIS is able to will designate the Forest Supervisor as provide information with a much the Responsible Official. broader, more diverse audience. DEPARTMENT OF COMMERCE For more information and to be added FOR FURTHER INFORMATION CONTACT: to the constituent fax list, fax your Terry DeLay, Brush Creek/Hayden Submission for OMB Review; request to the Office of Congressional Ranger District, PO Box 249, Saratoga, Comment Request and Public Affairs, at (202) 720–5704. WY 82331, 307–326–2518. The Department of Commerce (DOC) Linda M. Swacina, Correction has submitted to the Office of Associate Administrator. Management and Budget (OMB) for In the Federal Register of August 22, [FR Doc. 03–2607 Filed 1–30–03; 5:01 pm] clearance the following proposal for 2002, in FR Doc. 02–21452, on page BILLING CODE 3410–DM–P collection of information under 54405, in the third column, correct the provisions of the Paperwork Reduction ‘‘Responsible Official’’ caption to read: Act (44 U.S.C. chapter 35). DEPARTMENT OF AGRICULTURE Responsible Official Agency: Bureau of Industry and Security (BIS). Forest Service Mary H. Peterson, Forest Supervisor, Title: Commercial Encryption Items Medicine Bow-Routt National Forests Under the Jurisdiction of the North Belts Travel Plan Projects, Department of Commerce. Helena National Forest, Lewis & Clark and Thunder Basin National Grassland, Agency Form Number: BXA–748P. and Broadwater Counties, Montana 2468 Jackson Street, Laramie, Wyoming 82070, is the official responsible for OMB Approval Number: 0694–0104. AGENCY: Forest Service, USDA. making the decision on this action. She Type of Request: Renewal of an ACTION: Cancellation notice. will document her decision and existing collection. rationale in a record of decision. Burden: 2,830 hours. SUMMARY: On May 8, 2001, a Notice of Average Time Per Response: 5 Intent (NOI) to prepare an Dated: January 29, 2003. minutes to 7 hours per response. environmental impact statement for the Richard N. Rine, Number of Respondents: 680 North Belts Travel Plan Project on the Acting Forest Supervisor. respondents. Helena and Townsend Ranger Districts [FR Doc. 03–2777 Filed 2–4–03; 8:45 am] Needs and Uses: This collection is of the Helena National Forest, was BILLING CODE 3410–11–M authorized by section 5(h) of the Export published in the Federal Register (66 Administration Act of 1979, as amended FR 23230). The NOI is hereby rescinded (EAA) and section 203(a)(2) of the due to changed resource conditions. International Emergency Economic FOR FURTHER INFORMATION CONTACT: Beth Powers Act (IEEPA), and authorized Ihle, Project Leader, 415 S. Front, under section 15(b) of the EAA and

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section 203(a)(1) of the IEEPA. The Dated: January 30, 2003. Fengkun’’), the two respondents in the Export Administration Act authorizes Madeleine Clayton, seventh new shipper review, as the President to control exports of U.S. Management Analyst, Office of the Chief explained further below. goods and technology to all foreign Information Officer. Amendment of Preliminary Results destinations, as necessary for the [FR Doc. 03–2644 Filed 2–4–03; 8:45 am] purposes of national security, foreign BILLING CODE 3510–33–P We are amending the preliminary policy and short supply. The results of the seventh new shipper International Emergency Economic review of brake rotors from the PRC to Powers Act authorizes the President to DEPARTMENT OF COMMERCE take actions to deal with any unusual reflect a revision to the cash deposit and extraordinary threat, which has its International Trade Administration requirements for new shippers in source in whole or substantial part accordance with our recent practice. See [A-570–846] outside of the United States, to the Final Results of the Antidumping Duty New Shipper Review in Fresh Garlic national security, foreign policy, or Notice of Amended Preliminary economy of the United States. This From the People’s Republic of China, 67 Results of the Seventh New Shipper FR 72139 (December 4, 2002); Final policy has since been implemented and Review: Brake Rotors from the Results of Antidumping Duty New updated in the Export Administration People’s Republic of China Regulations (EAR) (see December 30, Shipper Review in Certain Forged 1996 (61 FR 68572); September 22, 1998 AGENCY: Import Administration, Stainless Steel Flanges From India, 68 (63 FR 50516); December 31, 1998 (63 International Trade Administration, FR 351 (January 3, 2003); and Final FR 72156); January 14, 2000 (65 FR U.S. Department of Commerce. Results of the Antidumping Duty New 2492); October 19, 2000 (65 FR 62600), ACTION: Notice of Amended Preliminary Shipper Review in Certain In-Shell Raw and June 6, 2002 (67 FR 38855)). As Results of the Seventh New Shipper Pistachios From Iran, 68 FR 353 described in these regulations, the U.S. Review. (January 3, 2003). Specifically, bonding encryption export control policy rests will no longer be permitted to fulfill on three principles: review of EFFECTIVE DATE: February 5, 2003. security requirements for shipments encryption products prior to sale, FOR FURTHER INFORMATION CONTACT: from Golden Harvest or Shanxi Fengkun streamlined post-export reporting, and Terre Keaton or Brian Smith, Import of brake rotors from the PRC entered, or license review of certain exports of Administration, International Trade withdrawn from warehouse, for strong encryption to foreign government Administration, U.S. Department of consumption on or after the publication end-users. Consistent with these Commerce, 14th Street and Constitution date of the final results of the new principles, national security requires Avenue, NW, Washington, DC 20230; shipper review. Furthermore, the that information be collected from the telephone: (202) 482–1280 or (202) 482– following cash deposit requirements public as described both in this 1766, respectively. will be effective upon publication of the collection and in collection 0694–0088. SUPPLEMENTARY INFORMATION: final results of the new shipper review The regulations developed by the for all shipments from Golden Harvest Bureau of Industry and Security in Amended Preliminary Results or Shanxi Fengkun of subject consultation with other Federal We are amending the preliminary merchandise entered, or withdrawn agencies, implements the U.S. from warehouse, for consumption on or encryption export policy last revised in results of the seventh new shipper after the publication date: (1) for subject regulations published on June 6, 2002. review of the antidumping duty order merchandise manufactured and This notice updates and revises the on brake rotors from the People’s exported by Golden Harvest, and for paperwork burden on the public Republic of China (‘‘PRC’’) to reflect a imposed by these regulations. revision to the cash deposit subject merchandise manufactured and Affected Public: Individuals, requirements for the two companies exported by Shanxi Fengkun, no cash businesses or other for-profit subject to this review. deposit will be required; (2) for subject merchandise exported by either Golden institutions. Case History Respondent’s Obligation: Mandatory. Harvest or Shanxi Fengkun but not OMB Desk Officer: David Rostker. On January 8, 2003, the Department manufactured by them the cash deposit Copies of the above information published the preliminary results of the will be the PRC countrywide rate (i.e., collection proposal can be obtained by seventh new shipper review of brake 43.32 percent). All other cash deposit calling or writing Diana Hynek, 202– rotors from the PRC (68 FR 1031) requirements noted in the preliminary 482–0266, Office of the Chief (‘‘preliminary results’’)1. In the results remain unchanged. We are Information Officer, Department of preliminary results, we failed to state issuing and publishing these amended Commerce, Room 6625, 14th Street and accurately the cash deposit preliminary results and this notice in Constitution Avenue, NW., Washington requirements for Zibo Golden Harvest accordance with section 751(a)(2)(B) of DC 20230. Machinery Limited Company (‘‘Golden the Tariff Act of 1930, as amended. Harvest’’) and Shanxi Fengkun Written comments and Dated: January 29, 2003. recommendations for the proposed Metallurgical Ltd. Co. (‘‘Shanxi information collection should be sent Bernard T. Carreau, within 30 days of publication of this 1 The preliminary results for the seventh new Acting Assistant Secretary for Import shipper review of the antidumping duty order on Administration. notice to David Rostker, OMB Desk brake rotors from the PRC were issued concurrently Officer, Room 10202, New Executive with those of the fifth administrative review of the [FR Doc. 03–2793 Filed 2–4–03; 8:45 am] Office Building, Washington, DC 20230. order. BILLING CODE 3510–DS–S

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DEPARTMENT OF COMMERCE annual anniversary month. See Notice sufficient indication that Shanghai of Amended Final Determination of Xiuwei and Sichuan Dubao are not International Trade Administration Sales at Less Than Fair Value and subject to either de jure or de facto [A–570–863] Antidumping Duty Order; Honey from government control with respect to their the People’s Republic of China, 66 FR exports of honey, the review will Honey From the People’s Republic of 63670 (December 10, 2001). Shanghai proceed. If, on the other hand, Shanghai China: Initiation of New Shipper Xiuwei identified itself as an exporter of Xiuwei and Sichuan Dubao do not Antidumping Duty Reviews honey produced by its supplier, Henan demonstrate their eligibility for a Oriental Bee Products Co., Ltd. (Henan separate rate, then they will be deemed AGENCY: Import Administration, Oriental). Sichuan Dubao identified not separate from other companies that International Trade Administration, itself as the producer of the honey it exported during the POI and the review Department of Commerce. exports. As required by 19 CFR of that respondent will be rescinded.2 ACTION: Initiation of new shipper 351.214(b)(2)(i), (ii), and (iii)(A), each antidumping duty reviews. company identified above has certified Scope that it did not export honey to the The merchandise under review is EFFECTIVE DATE: February 5, 2003. United States during the period of honey from the PRC. The merchandise FOR FURTHER INFORMATION CONTACT: investigation (POI), and that it has never under review is currently classifiable Angelica Mendoza or Donna Kinsella at been affiliated with any exporter or under item 0409.00.00, 1707.90.90 and (202) 482–3019 or (202) 482–0194, producer which did export honey 2106.90.99 of the Harmonized Tariff respectively; Antidumping and during the POI. Each company has Schedule of the United States (HTSUS). Countervailing Duty Enforcement Group further certified that its export activities Although the HTSUS subheading is III, Import Administration, International are not controlled by the central provided for convenience and customs Trade Administration, U.S. Department government of the PRC, satisfying the purposes, the written description of the of Commerce, 14th Street and requirements of 19 CFR merchandise under review is Constitution Avenue, NW., Washington, 351.214(b)(2)(iii)(B). Pursuant to the dispositive. DC 20230. Department’s regulations at 19 CFR SUPPLEMENTARY INFORMATION: 351.214(b)(2)(iv), Shanghai Xiuwei and Initiation of Review Sichuan Dubao submitted The Applicable Statute documentation establishing the date on In accordance with section Unless otherwise indicated, all which they first shipped the subject 751(a)(2)(B)(ii) of the Act and 19 CFR citations to the statute are references to merchandise to the United States, the 351.214(d)(1), we are initiating new the provisions effective January 1, 1995, volume of that first shipment, and the shipper reviews of the antidumping the effective date of the amendments date of the first sale to an unaffiliated duty order on honey from the PRC. made to the Tariff Act of 1930, as customer in the United States. Therefore, we intend to issue the amended (the Act) by the Uruguay In accordance with section preliminary results of these reviews not Round Agreements Act (URAA). In 751(a)(2)(B) of the Act, as amended, and later than 180 days after the date on addition, unless otherwise indicated, all 19 CFR 351.214(d)(1), and based on which these reviews were initiated. We citations to the Department’s regulations information on the record, we are intend to issue the final results of these are references to the provisions codified initiating new shipper reviews for reviews within 90 days after the date on at 19 CFR Part 351 (2002). Shanghai Xiuwei and Sichuan Dubao. It which the preliminary results were is the Department’s usual practice in issued. Background cases involving non-market economies Pursuant to 19 CFR The Department received timely to require that a company seeking to 351.214(g)(1)(ii)(A) of the Department’s requests from Shanghai Xiuwei establish eligibility for an antidumping regulations, the period of review (POR) International Trading Co., Ltd. duty rate separate from the country- for a new shipper review initiated in the (Shanghai Xiuwei) and Sichuan- wide rate provide evidence of de jure month immediately following the first Dujiangyan Dubao Bee Industrial Co., and de facto absence of government anniversary month will be the period Ltd. (Sichuan Dubao),1 in accordance control over the company’s export from the date of suspension of with 19 CFR 351.214(c), for new shipper activities. Accordingly, we will issue liquidation to the end of the month reviews of the antidumping duty order questionnaires to Shanghai Xiuwei and immediately preceding the first on honey from the People’s Republic of Sichuan Dubao, including a separate anniversary month.3 Therefore, the POR China (PRC), which has a December rates section. If the responses provide for these new shipper reviews is:

Antidumping duty proceeding Period to be reviewed

Shanghai Xiuwei International Trading Co., Ltd...... 2/10/01—11/30/02 Sichuan-Dujiangyan Dubao Bee Industrial Co., Ltd...... 2/10/01—11/30/02

1 On January 23, 2003, the Department rescinded 2 We note that petitioners separately requested 3 The review period for Shanghai Xiuwei and a previous new shipper review of Sichuan Dubao administrative reviews of Shanghai Xiuwei and Sichuan Dubao is February 10, 2001, through initiated on July 31, 2002 because Sichuan Dubao’s Sichuan Dubao. If for any reason the Department November 30, 2002 because the Department found certifications failed to identify the correct name of rescinds the new shipper reviews of Shanghai critical circumstances in the underlying the exporter and producer of the subject Xiuwei and/or Sichuan Dubao, we will then investigation, and liquidation was suspended merchandise. Sichuan Dubao therefore submitted the instant new shipper review request, which include Shanghai Xiuwei and/or Sichuan Dubao in beginning 90 days prior to the publication of the correctly identifies the exporter and producer of the the normal administrative review. preliminary less than fair value determination, subject merchandise. which occurred on May 11, 2001.

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We will instruct the Customs Service SUPPLEMENTARY INFORMATION: DEPARTMENT OF DEFENSE to allow, at the option of the importer, the posting, until the completion of the Background Department of the Air Force review, of a single entry bond or On May 6, 2002, the Department of Global Positioning System Joint security in lieu of a cash deposit for Commerce (‘‘Department’’) published a Program Office certain entries of the merchandise notice of opportunity to request an exported by the above-listed companies. administrative review of the This action is in accordance with 19 AGENCY: Department of the Air Force, Antidumping Duty Order on Stainless CFR 351.214(e). As Sichuan Dubao has DoD. Steel Plate in Coils from Taiwan for the certified that it both produced and period May 1, 2001 through April 30, ACTION: Notice of meeting. exported the subject merchandise, we will instruct Customs to limit Sichuan 2002. See Notice of Opportunity to SUMMARY: This notice informs the public Dubao’s bonding option only to such Request Administrative Review of merchandise for which it is both the Antidumping or Countervailing Duty that the Global Positioning System producer and exporter. For Shanghai Order, Finding, or Suspended (GPS) Joint Program Office (JPO) will be Xiuwei, which has identified Henan Investigation, 67 FR 30356 (May 6, hosting a technical working group Oriental as the producer of subject 2002). On June 25, 2002, in accordance meeting to discuss the new Improved merchandise for the sale under review, with section 751(a) of the Tariff Act of Clock and Ephemeris (ICE) message. ICE we will instruct Customs to limit the 1930, as amended (‘‘the Act’’), the message is the new GPS navigation data bonding option only to entries of subject Department published in the Federal that will replace the current clock and merchandise from Shanghai Xiuwei that Register a notice of initiation of this ephemeris data as indicated in section were produced by Henan Oriental. antidumping duty administrative review 30.3.2 of previously released PIRN– Interested parties that need access to of sales by Yieh United Steel 200C–007B. The meeting will be a proprietary information in these new Corporation (‘‘YUSCO’’) and Ta Chen technical working group discussion that shipper reviews should submit Stainless Pipe Company, Ltd. (‘‘Ta will address all aspects of ICE including applications for disclosure under Chen’’) for the period May 1, 2001 specific data format, data requirements, administrative protective orders in through April 30, 2002. See Notice of data application and related equations, accordance with 19 CFR 351.305 and Initiation of Antidumping and message format, user receiver needs/ 351.306. This initiation and notice are Countervailing Duty Administrative implications, and any issues or concerns in accordance with section 751(a) of the Reviews and Request for Revocation In with ICE. In order to better prepare for Act (19 U.S.C. 1675(a)) and 19 CFR Part, 67 FR 42753 (June 25, 2002). The the meeting, the GPS JPO requests email 351.214(d). preliminary results are currently due no notification from all those planning to Dated: January 30, 2003. later than January 31, 2003. participate in the meeting. Please Joseph A. Spetrini, submit your name, organization, and Extension of Time Limit for Preliminary Deputy Assistant Secretary for Import contact information to Administration, Group III. Results [email protected] and include the words, ‘‘ICE Working Group [FR Doc. 03–2794 Filed 2–4–03; 8:45 am] The Department conducted a customs Attendee’’ in the subject line of your BILLING CODE 3510–DS–P inquiry in this case. As a result of this email. More information will be posted preliminary communication with the on the GPS JPO public web site: http:/ Customs Service, the Department was DEPARTMENT OF COMMERCE /gps.losangeles.af.mil. Click on ‘‘Public recently made aware of certain Interface Control Working Group information that was not previously on International Trade Administration (ICWG).’’ the record. The Department needs time [A-583–830] to analyze this information and solicit DATES: February 12, 2003, 0800–1700. Stainless Steel Plate in Coils from additional information from the parties. See Department’s January 15, 2003 letter ADDRESSES: Los Angeles AFB, Bldg 120, Taiwan: Extension of Time Limit for the Daedalian Room (in ‘‘The Club’’). Preliminary Results of the to YUSCO. Therefore, it is not Antidumping Duty Administrative practicable to complete this review FOR FURTHER INFORMATION CONTACT: Review within the initial time limits mandated CZERC, GPS JPO System Engineering by section 751(a)(3)(A) of the Act, and Division via email at AGENCY: Import Administration, we are extending the due date for the [email protected] or at 1– International Trade Administration, preliminary results by 60 days until 310–363–6329. Department of Commerce. April 1, 2003. The final results continue SUPPLEMENTARY INFORMATION: The ACTION: Notice of Extension of Time to be due 120 days after the publication civilian and military communities use Limit for the Preliminary Results of of the preliminary results. Antidumping Duty Administrative the Global Positioning System, which Review. Dated: January 30, 2003. employs a constellation of 24 satellites Joseph A. Spetrini, to provide continuously transmitted EFFECTIVE DATE: February 5, 2003. Deputy Assistant Secretary for Import signals to enable appropriately FOR FURTHER INFORMATION CONTACT: Administration, Group III. configured GPS user equipment to Catherine Bertrand, AD/CVD [FR Doc. 03–2792 Filed 2–4–03; 8:45 am] produce accurate position, navigation Enforcement, Group III, Office 9, Import BILLING CODE 3510–DS–S and time information. Administration, International Trade Administration, U.S. Department of Pamela D. Fitzgerald, Commerce, 14th Street and Constitution Air Force Federal Register Liaison Officer. Avenue, NW, Washington DC 20230; [FR Doc. 03–2634 Filed 2–4–03; 8:45 am] telephone: (202) 482–3207. BILLING CODE 5001–5–P

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DEPARTMENT OF EDUCATION Dated: January 30, 2003. ADDRESSES: A ‘‘submission inventory’’ Grover J. Whitehurst, should be sent to the IRIS Submission [CFDA No.: 84.305M] Director, Institute of Education Sciences. Desk in accordance with the [FR Doc. 03–2663 Filed 2–4–03; 8:45 am] instructions provided under Institute of Education Sciences; BILLING CODE 4000–01–P ‘‘Submission of Information’’ in this Correction notice. FOR FURTHER INFORMATION CONTACT: For ACTION: Notice inviting applications for information on the IRIS program, grants to support education research for ENVIRONMENTAL PROTECTION AGENCY contact Amy Mills, Program Director, fiscal years 2003; Correction. National Center for Environmental [FRL–7448–2] Assessment, (mail code 8601D), U.S. On January 6, 2003, a notice inviting Environmental Protection Agency, applications for grants to support Integrated Risk Information System Washington, DC 20460, or call (202) education research was published in the (IRIS); Announcement of 2003 564–3204, or send electronic mail Federal Register (68 FR 656). On page Program; Request for Information and inquiries to [email protected]. For 656, in the table, the column Due Date Announcement of Workshop general questions about access to IRIS or for Optional Letter of Intent states that the content of IRIS, please call the IRIS the deadline for transmittal of the letter AGENCY: Environmental Protection Hotline at (301) 345–2870 or send of intent is ‘‘March 26, 2003’’ for the Agency. electronic mail inquiries to Teacher Quality Research program ACTION: Notice; announcement of the [email protected]. (84.305M). The Due Date for Optional IRIS 2003 program and request for SUPPLEMENTARY INFORMATION: Letter of Intent is corrected to read scientific information on health effects ‘‘March 6, 2003.’’ that may result from exposure to Background FOR FURTHER INFORMATION CONTACT: chemical substances; announcement of IRIS is an EPA data base containing Harold Himmelfarb, U.S. Department of the stakeholder workshop on priority- Agency consensus scientific positions Education, 555 New Jersey Avenue, setting criteria for the assessment of on potential adverse human health NW., room 510f, Washington, DC 20208. chemical substances. effects that may result from exposure to Telephone: (202) 219–2031 or via the chemical substances found in the SUMMARY: IRIS is an Environmental Internet: [email protected]. environment. IRIS currently provides Protection Agency (EPA) data base that information on health effects associated If you use a telecommunications contains EPA scientific consensus with chronic exposure to over 500 device for the deaf (TDD), you may call positions on human health effects that the Federal Information Relay Service specific chemical substances. may result from chronic exposure to IRIS contains chemical-specific (FIRS) at 1–800–877–8339. chemical substances in the Individuals with disabilities may summaries of qualitative and environment. On January 9, 2002, EPA quantitative health information in obtain this document in an alternative announced the 2002 IRIS agenda and format (e.g., Braille, large print, support of the first two steps of the risk solicited scientific information from the assessment process, i.e., hazard audiotape, or computer diskette) on public for consideration in assessing request to the contact persons listed identification and dose-response health effects from specific chemical evaluation. IRIS information includes under FOR FURTHER INFORMATION substances. Most of the health the reference dose for noncancer health CONTACT. assessments listed in the notice are in effects resulting from oral exposure, the Electronic Access to This Document progress or near completion. Today, reference concentration for non-cancer EPA is adding some additional health health effects resulting from inhalation You may view this document, as well assessments to the IRIS agenda. This exposure, and the carcinogen as all other Department of Education notice describes the Agency’s plans and assessment for both oral and inhalation documents published in the Federal solicits scientific data and evaluations exposure. Combined with specific Register, in text or Adobe Portable for consideration in EPA’s new situational exposure assessment Document Format (PDF) on the Internet assessments. Additional new information, the summary health hazard at the following site: http://www.ed.gov/ assessments may be announced in the information in IRIS may be used as a legislation/FedRegister. Federal Register later this year. This source in evaluating potential public To use PDF you must have Adobe notice also announces a stakeholder health risks from environmental Acrobat Reader, which is available free workshop on the criteria that EPA’s IRIS contaminants. at this site. If you have questions about program uses to establish annual using PDF, call the U.S. Government priorities for assessing chemical The IRIS Program Printing Office (GPO), toll free, at 1– substances and provides information for EPA’s process for developing IRIS 888–293–6498; or in the Washington, observer registration. consists of: (1) An annual Federal DC, area at (202) 512–1530. DATES: Please submit scientific Register announcement of EPA’s IRIS Note: The official version of this document information in response to this notice in agenda and call for scientific is the document published in the Federal the form of an initial ‘‘submission information from the public on the Register. Free Internet access to the official inventory’’ in accordance with the selected chemical substances, (2) a edition of the Federal Register and the Code instructions in this notice by April 7, search of the current literature, (3) of Federal Regulations is available on GPO 2003. development of health assessments and Access at: http://www.access.gpo/nara/ The stakeholder workshop on criteria draft IRIS summaries, (4) peer review index.html. for establishing priorities for assessing within EPA, (5) peer review outside Program Authority: 20 U.S.C. 9501 et seq. chemical substances for IRIS will be EPA, (6) EPA consensus review and (the ‘‘Education Sciences Reform Act of held March 4, 2003. This notice management approval, (7) preparation 2002’’, Title 1 of Public Law 107–279, includes instructions for observer of final IRIS summaries and supporting November 5, 2002). registration. documents, and (8) entry of summaries

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and supporting documents into the IRIS IRIS sometime after the chronic Substance name CAS No. data base. exposure evaluation. This notice provides: (1) A list of the Nickel (soluble salts) ...... [N.A.—various] IRIS assessments completed in FY 2002 Substance name CAS No. Nitrobenzene ...... 98–95–3 and early FY 2003, (2) a list of the IRIS PAH mixtures* ...... [N.A.—various] assessments in progress that the Agency Acetaldehyde ...... 75–07–0 Pendimethalin** ...... 40487–42–1 expects to complete in FY 2003–2005, Acetone ...... 67–64–1 Pebulate** ...... 1114–71–2 Acrolein*** ...... 107–02–8 Pentachlorophenol ...... 87–86–5 (3) an update on EPA’s IRIS ‘‘needs Acrylamide ...... 79–06–1 Perfluorooctanoic acid— 3825–26–1 assessment’’ report, (4) an Alachlor** ...... 15972–60–8 ammonium salt. announcement of a stakeholder Ammonium perchlorate 7790–98–9 Perfluorooctane 2795–39–3 workshop on EPA’s criteria for selecting (and other perchlorate sulfonate—potassium chemical substances for the annual salts). salt. agenda, (5) a list of the new assessments Antimony and com- 7440–36–0 Phosgene*** ...... 75–44–5 beginning in FY 2003, and (6) pounds. Polychlorinated biphenyls 1336–36–3 instructions to the public for submitting Asbestos* ...... 1332–21–4 (PCBs-noncancer Atrazine** ...... 1912–24–9 endpoints). scientific information to EPA pertinent Azinphos methyl** ...... 86–50–0 Propachlor** ...... 1918–16–7 to the development of IRIS assessments. Benzene*** ...... 71–43–2 Refractory ceramic fibers [N.A.] Assessments Completed in FY 2002 and Benzo(a)pyrene ...... 50–32–8 Silica (crystalline) ...... 14808–60–7 Early FY 2003 Bromoxynil** ...... 1689–84–5 Styrene ...... 100–42–5 Boron ...... 7440–42–8 2,3,7,8-TCDD (dioxin) .... 1746–01–6 The following assessments were Cadmium ...... 7440–43–9 Tetrachloroethylene 127–18–4 completed and entered into IRIS in FY Captan** ...... 133–06–2 (perchloroethylene). 2002 and early FY 2003. These Carbon tetrachloride ...... 56–23–5 Tetrahydrofuran ...... 109–99–9 assessments were listed in the Federal Chloroethane ...... 75–00–3 Thallium* ...... 7440–28–0 Register of January 9, 2002 (67 FR Chloroform (inhalation 67–66–3 Toluene ...... 108–88–3 route). Triallate** ...... 2303–17–5 1212). All health endpoints were Chloroprene ...... 126–99–8 Trichlopyr** ...... 55335–06–3 assessed. Where information was Chlorothalonil** ...... 1897–45–6 1,1,1-Trichloroethane*** 71–55–6 available, both qualitative and Chlorpyrifos** ...... 2921–88–2 Trichloroethylene ...... 79–01–6 quantitative assessments were Copper ...... 7440–50–8 Uranium (natural) ...... 7440–61–1 developed. Cyclohexane ...... 110–82–7 Vinyl acetate ...... 108–05–4 Diazinon** ...... 333–41–5 Xylenes ...... 1330–20–7 Substance name CAS No. Dibutyl phthalate*** ...... 84–74–2 Zinc and compounds ...... 7440–66–6 Dichloroacetic acid ...... 79–43–6 1,3-Butadiene ...... 106–99–0 1,2-Dichlorobenzene ...... 95–50–1 IRIS summaries and support Chloroform (oral route) ... 67–66–3 1,3-Dichlorobenzene ...... 541–73–1 documents for all substances listed 1,1-Dichloroethylene ...... 75–35–4 1,4-Dichlorobenzene ...... 106–46–7 above will be provided on the IRIS Web Phenol ...... 108–95–2 Diesel exhaust ...... [N.A.] Di(2-ethylhexyl)adipate 103–23–1 site at http://www.epa.gov/iris as they are completed. This publicly available Assessments in Progress (DEHA). Di(2-ethylhexyl)phthalate 117–81–7 web site is EPA’s primary location for The following assessments are Diflubenzuron ...... 35367–38–5 IRIS documents. In addition, external underway or generally complete and are Ethalfluralin** ...... 55283–68–6 peer review drafts of IRIS documents planned for entry into IRIS in FY 2003 Ethanol ...... 64–17–5 can be found during their peer review or FY 2004. Those that are likely to be Ethion** ...... 563–12–2 periods via the ‘‘What’s New’’ page of delayed to FY 2005 are indicated by an Ethylbenzene ...... 100–41–4 the IRIS web site. Interested parties asterisk (*). All of the assessments Ethylene dibromide ...... 106–93–4 should check the ‘‘What’s New’’ page Ethylene dichloride ...... 107–06–2 below were listed in the January 9, Ethylene oxide*** ...... 75–21–8 frequently for the availability of these 2002, Federal Register. All health Formaldehyde ...... 50–00–0 drafts. endpoints, cancer and noncancer, are Glyphosate** ...... 1071–83–6 IRIS ‘‘Needs Assessment’’ being assessed unless otherwise noted. Hexachlorobutadiene ...... 87–68–3 For all endpoints assessed, both gamma- 58–89–9 On July 20, 2001, EPA published a qualitative and quantitative assessments Hexachlorocyclohexan- Federal Register notice (66 FR 37958) are being developed where information e (Lindane)**. requesting public input to compile a is available. Pesticides denoted with a Hexahydro-1,3,5-trinitro- 121–82–4 ‘‘needs assessment’’ for planning the double asterisk (**) are having only oral triazine (RDX). IRIS program. This notice requested that Hydrogen cyanide* ...... 74–90–8 the public identify those chemical reference dose and carcinogenicity Hydrogen sulfide*** ...... 7783–06–4 endpoints assessed. Isopropanol ...... 67–63–0 substances for which assessments either Substances denoted with a triple Methanol ...... 67–56–1 need to be added to IRIS or updated. asterisk (***) are being evaluated for Methidathion** ...... 950–37–8 The responses were considered along effects from acute and/or subchronic Methomyl** ...... 16752–77–5 with EPA program priorities in the exposure, in addition to chronic Methyl ethyl ketone ...... 78–93–3 development of new starts for the FY exposure. These substances are part of Methyl isobutyl ketone 108–10–1 2003 agenda below. The notice also a pilot test to evaluate the application of (MIBK). requested input on whether other types methods, procedures, and resource Methyl parathion** ...... 298–00–0 of evaluations are needed on IRIS such needs for adding less-than-lifetime Methyl tert-butyl ether 1634–04–4 as toxicological evaluations for health (MTBE). exposure duration information to IRIS. 2-Methylnaphthalene ...... 91–57–6 effects associated with less-than-lifetime For some substances listed, the less- Metolachlor** ...... 51218–45–2 (i.e., acute or subchronic) exposure than-lifetime evaluation is being Mirex ...... 2385–85–5 durations. The notice also requested initiated in FY 2003, and may therefore Naphthalene (cancer ef- 91–20–3 input on what priority any new type of be completed and made available on fects; inh. route). evaluation should have compared to

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evaluation of health effects associated facsimile: (703) 642–6954; or e-mail: currently under consideration for with chronic exposures. Further, the [email protected]. Space for developing future IRIS agendas. notice asked whether or how EPA observers may be limited, therefore, EPA may add resources to the IRIS should work with external parties such registration will be accepted on a first- program this year, and if so, may as other government agencies, come, first-served basis. publish a supplement to this FY 2003 industries, or other organizations to Information Requested on New agenda with additional priority develop health assessments that may be Assessments for FY 2003 substances selected for assessment. EPA used as supporting documents for IRIS. The final ‘‘IRIS Needs Assessment’’ EPA will continue building and also plans to publish a solicitation later report will be made available on the updating the IRIS data base. The Agency in the year for public nominations for IRIS web site when it is completed. recognizes that a number of the substances to consider for assessment assessments on IRIS need updating to beginning in FY 2004. Stakeholder Workshop on Priority- incorporate new scientific information The following IRIS health assessments Setting Criteria and methodologies. Further, many have recently begun or will be started in EPA will be sponsoring a stakeholder additional substances are candidates to FY 2003, with completion expected in workshop on the priority-setting criteria be added to the IRIS data base. FY 2004 or FY 2005. It is for these for selecting chemical substances for However, due to limited resources in substances that the Agency is primarily IRIS assessment. The purpose of the the Agency to address the spectrum of requesting information from the public workshop is to get input from needs, EPA developed a list of priority for consideration in the assessments. individuals and organizations outside of substances for attention beginning in FY Unless otherwise noted, noncancer and EPA on the criteria EPA uses to 2003. The substances listed below are cancer endpoints will be assessed for determine the annual IRIS agenda. priorities for IRIS due to one or more Invited participants will include reasons: (1) Agency statutory, each substance. For all endpoints individuals or organizations that have regulatory, or program implementation assessed, both qualitative and previously expressed interest in the IRIS needs; (2) new scientific information or quantitative assessments are being agenda through the IRIS Needs methodology is available that might developed where information is Assessment, the IRIS Submission Desk, significantly change current IRIS available. Substances denoted with a other correspondence, or related information; (3) interest to other levels double asterisk (**) are being evaluated activities. The workshop will be held of government or the public, including for effects from acute and/or subchronic March 4, 2003, from 1–5 pm at the interest expressed via responses to 66 exposure, in addition to chronic Crystal City Marriott Hotel, 1999 FR 37958; and (4) most of the scientific exposure. These substances, along with Jefferson Davis Highway, Arlington, VA assessment work has been completed those similarly indicated on the 22202. Versar, Inc., an EPA contractor, while meeting other Agency previous list of assessments in progress, will convene and facilitate the requirements, and only a modest are part of a pilot test to evaluate the workshop. To register to attend the additional effort will be needed to application of methods, procedures, and workshop as an observer, contact Ms. complete the review and documentation resource needs for adding less-than- Traci Bludis, Versar, Inc.; telephone: for IRIS. Additional criteria for lifetime exposure duration information (703) 750–3000, extension 449; prioritizing chemical substances are to IRIS.

Substance name CAS No.

Aldicarb/Aldicarb sulfoxide ...... 116–06–3/1646–87–3 Aldicarb sulfone ...... 1646–88–4 Arsenic, inorganic ...... 7440–38–2 Bromobenzene ...... 108–86–1 Bromodichloromethane ...... 75–27–4 Bromoform ...... 75–25–2 Cobalt ...... 7440–48–4 Cryptosporidium ...... [N.A.] Dibromochloromethane ...... 124–48–1 Hexachlorocyclopentadiene*** (acute exposure only) ...... 77–47–4 Kepone ...... 143–50–0 Polybrominated diphenyl ethers (PBDEs): Decabromodiphenyl ether (deBDE) ...... 1163–19–5 Hexabromodiphenyl ether (hxBDE) ...... 36483–60–0 Pentabromodiphenyl ether (PeBDE) ...... 32534–81–9 Tetrabromodiphenyl ether (TeBDE) ...... 40088–47–9 Propionaldehyde ...... 123–38–6 2,2,4-Trimethylpentane ...... 540–84–1

Submission of Information technical sources that we may not Also note that if you have submitted As in previous Federal Register otherwise obtain through open literature certain information previously to the notices announcing the annual IRIS searches. We would greatly appreciate IRIS Submission Desk, then there is no agenda, EPA is soliciting public receiving scientific information from the need to resubmit that information. involvement in new assessments public during the information gathering While EPA is primarily soliciting starting in FY 2003. While EPA stage for the list of ‘‘new assessments’’ information on new assessments conducts a thorough literature search for listed above. Interested persons should announced in this notice, the public each chemical substance, there may be provide scientific analyses, studies, and may submit information on any unpublished studies or other primary other pertinent scientific information. chemical substance at any time.

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Procedures for Submission Submission Desk, as described in Item DATES: The workshop will be held on Similar to the process described in the 1. The IRIS Submission Desk will February 25–27, 2003. The workshop January 9, 2002, Federal Register, acknowledge receipt of your hours will be from 9 a.m. to 5:30 p.m. submissions will be handled in a three- information. on Tuesday, February 25; from 8:30 a.m. step process: Confidential Business Information to 5 p.m. on Wednesday, February 26; 1. Submission Inventory: First, you (CBI) should not be submitted to the and from 8 a.m. to 12 noon on should simply provide a list within 60 IRIS Submission Desk. CBI material Thursday, February 27. Observer days of this notice briefly identifying all must be submitted to the appropriate comment periods are currently the information (studies, reports, EPA office via established procedures scheduled on Tuesday and Wednesday. articles, etc.) you wish to submit. The (see 40 CFR part 2, subpart B). If you ADDRESSES: The peer consultation list should specify by name and CASRN believe that a CBI submission contains workshop will be held at the Westin St. (Chemical Abstract Service Registry information with implications for IRIS, Francis Hotel, 335 Powell Street, San Number) the chemical substance(s) to please note that in the cover letter Francisco, California. To attend the which the information pertains, state accompanying the submission to the workshop as an observer, contact the type of assessment that is being appropriate office. Eastern Research Group (ERG) either in addressed (e.g., carcinogenicity), and a You may also request to augment your writing, by electronic mail, or by brief description of information to be submission with a scientific briefing to telephone. ERG’s contact information submitted for consideration. Where EPA staff. Such requests should be for this workshop is: Eastern Research possible, documents should be listed in made directly to Amy Mills, IRIS Group, Conference Registration, 110 scientific citation format, that is, Program Director (see FOR FURTHER Hartwell Avenue, Lexington, MA author(s), title, journal, and date. Your INFORMATION CONTACT). 02421–3136; phone, 781–674–7374; fax: cover letter should state that the 781–674–2906; [email protected]. Dated: January 30, 2003. There is no charge for attending this correspondence is an IRIS submission. George W. Alapas, workshop as an observer, but observers Describe in general terms the purpose of Acting Director, National Center for are encouraged to register early as the the submission and include names, Environmental Assessment. number of seats will be limited. Each addresses, and telephone numbers of [FR Doc. 03–2768 Filed 2–4–03; 8:45 am] registrant will receive a confirmation person(s) to contact for additional BILLING CODE 6560–50–P notice, a preliminary agenda, and a information. Mail two copies of the logistical fact sheet that contains submission inventory to the IRIS directions to the meeting location. Submission Desk, c/o ASRC, 6301 Ivy ENVIRONMENTAL PROTECTION Copies of the proposed asbestos cancer Lane, Suite 300, Greenbelt, MD 20770. AGENCY risk assessment methodology can be Alternatively, you may submit the obtained prior to the meeting from the submission inventory and cover letter [FRL–7445–7] EPA, OERR web page electronically to [email protected]. (www.epa.gov.superfund). Electronic information must be Peer Consultation Workshop on a FOR FURTHER INFORMATION CONTACT: submitted in WordPerfect format or as Proposed Asbestos Cancer Risk For an ASCII file. Information also will be Assessment general information, contact the RCRA/ accepted on 3.5’’ floppy disks. All CERCLA Call Center at 800–424–9346 or information in electronic form must be AGENCY: Environmental Protection TDD 800–553–7672 (hearing impaired). identified as an IRIS submission. Agency (EPA). In the Washington, DC metropolitan 2. EPA Replies to Submission ACTION: Notice of public meetings. area, call 703–412–9810 or TDD 703– Inventory: In the second step, EPA will 412–3323. For more detailed technical compare the submission inventory to SUMMARY: This notice announces a peer information on this conference call existing files and identify the consultation workshop on a proposed Richard Troast (703–603–9019) Office of information that should be submitted. asbestos cancer risk assessment Emergency and Remedial Response, This step will help prevent an influx of methodology. The purpose of the U.S. Environmental Protection Agency, duplicative information. You will workshop is to discuss the scientific 1200 Pennsylvania Avenue, NW., receive notification of whether full merit of the proposed methodology Washington, D.C. 20460–0002, Mail submission of the information is developed for EPA by Dr. Wayne Code 5204G. requested. Berman and Dr. Kenny Crump. The SUPPLEMENTARY INFORMATION: EPA’s 3. Full Submission of Selected proposed methodology distinguishes current assessment of asbestos toxicity Material: In the third step, you should carcinogenic potency by asbestos fiber is based primarily on an asbestos submit the information indicated by size and asbestos fiber type and assessment completed in 1986, and EPA within 30 days of EPA’s reply. advocates use of a new exposure index EPA’s assessment has not changed Prompt response to EPA will ensure that to characterize carcinogenic risk. Expert substantially since that time. The 1986 your material can be considered in the panelists will discuss many relevant assessment considers all mineral forms assessment in a timely fashion. technical issues at the workshop, and of asbestos and all asbestos fiber sizes Submissions should include a cover observers also will be invited to (i.e., all fibers longer than 5 letter addressing all of the points in Item comment. A contractor will prepare a micrometers) to be of equal carcinogenic 1 above. In addition, when you submit summary report documenting the potency. However, since 1986, there results of new health effects studies discussions of the peer consultation have been substantial improvements in concerning existing substances on IRIS, workshop, and this report will be asbestos measurement techniques and you should include a specific publicly available and become part of in the understanding of how asbestos explanation of how and why the study EPA’s administrative record for IRIS. exposure contributes to disease. To results could change the information in This meeting is being sponsored by incorporate the knowledge gained over IRIS. EPA’s Office of Solid Waste and the last 17 years into the agency’s Please send two copies, at least one of Emergency Response and by EPA’s toxicity assessment for asbestos, EPA which should be unbound, to the IRIS Office of Research and Development. oversaw the development of a revised

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methodology for conducting risk 5776; e-mail address: access any of the publicly available assessments of asbestos. The proposed [email protected]. docket materials through the docket risk assessment methodology SUPPLEMENTARY INFORMATION: facility identified in Unit I.B.1. Once in distinguishes between fiber sizes and the system, select ‘‘search,’’ then key in fiber types in estimating potential health I. General Information the appropriate docket ID number. risks related to asbestos exposure. EPA A. Does this Action Apply to Me? For questions on the IRED in this is convening this peer consultation document, contact the Chemical Review workshop to seek input from a panel of This action is directed to the public Manager listed under FOR FURTHER experts on the scientific merit of the in general, nevertheless, a wide range of INFORMATION CONTACT. stakeholders will be interested in proposed methodology. The experts will II. What Action is the Agency Taking? include scientists with extensive obtaining the interim risk management expertise in relevant fields, such as decision document for dicrotophos, EPA has assessed the risks of biostatistics, fiber identification, including environmental, human health, dicrotophos and reached an Interim inhalation toxicology, and carcinogenic and agricultural advocates; the chemical Reregistration Eligibility Decision mechanisms. The panelists will be industry; pesticide users; and members (IRED) for this organophosphate asked to respond to several charge of the public interested in the use of pesticide. Provided that risk mitigation questions that address key issues in the pesticides on food. Since other entities measures are adopted, dicrotophos fits proposed methodology, including also may be interested, the Agency has into its own risk cup — its individual, interpretations of epidemiology and not attempted to describe all the specific aggregate risks are within acceptable toxicology literature, the proposed entities that may be affected by this levels. A restricted use chemical used exposure index, and general topics. The action. If you have any questions mainly to control insects on cotton, product of the peer consultation regarding the applicability of this action dicrotophos residues in food and workshop will be a report that to a particular entity, consult the person drinking water do not pose risk summarizes the panelists’ and listed under FOR FURTHER INFORMATION concerns. There are no residential uses observers’ comments, conclusions, and CONTACT. and therefore dicrotophos fits into its recommendations on the proposed B. How Can I Get Copies of this own risk cup. To reduce worker and ecological risks, dicrotophos may no methodology. Document and Other Related longer be applied by aerial equipment, Information? David Lopez, closed mixing/loading systems and Director, Region 3/8 Support Center, OERR. 1. Docket. EPA has established an closed cabs are required, and total [FR Doc. 03–2767 Filed 2–4–03; 8:45 am] official public docket for this action seasonal maximum application is BILLING CODE 6560–50–P under docket identification (ID) number limited to 0.83 lb active ingredient and OPP–2003–0012. The official public only 0.5 lb of this can be applied prior docket consists of the document to August 1 of any year. Additionally, to ENVIRONMENTAL PROTECTION specifically referenced in this action, ensure that dicrotophos use does not AGENCY any public comments received, and increase dramatically in the future, a other information related to this action. [OPP–2003–0012; FRL–7288–1] production cap is required to limit Although a part of the official docket, production to an average of the annual Organophosphate Pesticide; the public docket does not include amount produced in 1999, 2000 and Availability of Dicrotophos Interim Risk Confidential Business Information (CBI) 2001. These mitigation measures are Management Decision Document or other information whose disclosure is expected to reduce, but not eliminate restricted by statute. The official public worker and ecological risks. These risks AGENCY: Environmental Protection docket is the collection of materials that are offset by the benefit of dicrotophos Agency (EPA). is available for public viewing at the to control certain insects in cotton. ACTION: Notice. Public Information and Records The interim risk management Integrity Branch (PIRIB), Rm. 119, decision document for dicrotophos was SUMMARY: This notice announces the Crystal Mall #2, 1921 Jefferson Davis made through the organophosphate availability of the interim risk Hwy., Arlington, VA. This docket pesticide pilot public participation management decision document for the facility is open from 8:30 a.m. to 4 p.m., process, which increases transparency organophosphate pesticide dicrotophos. Monday through Friday, excluding legal and maximizes stakeholder involvement This decision document has been holidays. The docket telephone number in EPA’s development of risk developed as part of the public is (703) 305–5805. assessments and risk management participation process that EPA and U.S. 2. Electronic access. You may access decisions. The pilot public participation Department of Agriculture (USDA) are this Federal Register document process was developed as part of the now using for involving the public in electronically through the EPA Internet EPA-USDA Tolerance Reassessment the reassessment of pesticide tolerances under the ‘‘Federal Register’’ listings at Advisory Committee (TRAC), which under the Food Quality Protection Act http://www.epa.gov/fedrgstr/. An was established in April 1998, as a (FQPA), and the reregistration of electronic version of the public docket subcommittee under the auspices of individual organophosphate pesticides is available through EPA’s electronic EPA’s National Advisory Council for under the Federal Insecticide, public docket and comment system, Environmental Policy and Technology. Fungicide, and Rodenticide Act EPA Dockets. You may use EPA Dockets A goal of the pilot public participation (FIFRA). at http://www.epa.gov/edocket/ to process is to find a more effective way FOR FURTHER INFORMATION CONTACT: submit or view public comments, access for the public to participate at critical Laura Parsons, Special Review and the index listing of the contents of the junctures in the Agency’s development Reregistration Division (7508C), Office official public docket, and to access of organophosphate pesticide risk of Pesticide Programs, Environmental those documents in the public docket assessments and risk management Protection Agency, 1200 Pennsylvania that are available electronically. decisions. EPA and USDA began Ave., NW., Washington, DC 20460– Although not all docket materials may implementing this pilot process in 0001; telephone number: (703) 305– be available electronically, you may still August 1998, to increase transparency

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and opportunities for stakeholder ACTION: Notice. B. How Can I Get Copies of This consultation. Document and Other Related EPA worked extensively with affected SUMMARY: In accordance with section Information? parties to reach the decisions presented 6(f)(1) of the Federal Insecticide, in the interim risk management decision Fungicide and Rodenticide Act (FIFRA), 1. Docket. EPA has established an document, which conclude the pilot as amended, EPA is issuing a notice of official public docket for this action public participation process for receipt of request for amendments by under docket identification (ID) number dicrotophos. As part of the pilot public registrants to delete uses in certain OPP–2003–0030. The official public participation process, numerous pesticide registrations. Section 6(f)(1) of docket consists of the documents opportunities for public comment were FIFRA provides that a registrant of a specifically referenced in this action, offered as the interim risk management pesticide product may at any time any public comments received, and decision document was being request that any of its pesticide other information related to this action. developed. The dicrotophos interim risk Although a part of the official docket, management decision document registrations be amended to delete one or more uses. FIFRA further provides the public docket does not include therefore is issued without a formal Confidential Business Information (CBI) public comment period concluding that, before acting on the request, EPA or other information whose disclosure is review of the individual must publish a notice of receipt of any restricted by statute. The official public organophosphate pesticide. The docket request on the Federal Register. docket is the collection of materials that remains open, however, and any DATES: The deletions are effective on comments submitted in the future will is available for public viewing at the August 4, 2003, unless the Agency Public Information and Records be placed in the public docket. receives a withdrawal request on or The risk assessments for dicrotophos Integrity Branch (PIRIB), Rm. 119, before August 4, 2003. The Agency will were released to the public through Crystal Mall #2, 1921 Jefferson Davis notices published in the Federal consider withdrawal requests Hwy., Arlington, VA. This docket Register on November 10, 1999 (64 FR postmarked August 4, 2003. facility is open from 8:30 a.m. to 4 p.m., 61332) (FRL–6393–9), and June 14, 2000 Users of these products who desire Monday through Friday, excluding legal (65 FR 37371) (FRL–6593–4). continued use on crops or sites being holidays. The docket telephone number EPA’s next step under FQPA is to deleted should contact the applicable is (703) 305–5805. complete a cumulative risk assessment registrant on or before August 4, 2003. 2. Electronic access. You may access and risk management decision for the this Federal Register document organophosphate pesticides, which ADDRESSES: Withdrawal requests may be share a common mechanism of toxicity. submitted by mail, electronically, or in electronically through the EPA Internet The interim risk management decision person. Please follow the detailed under the ‘‘Federal Register’’ listings at document on dicrotophos cannot be instructions for each method as http://www.epa.gov/fedrgstr/. considered final until this cumulative provided in Unit I. of the An electronic version of the public assessment is complete. SUPPLEMENTARY INFORMATION. To ensure docket is available through EPA’s When the cumulative risk assessment proper receipt by EPA, it is imperative electronic public docket and comment for the organophosphate pesticides has that you identify docket ID number system, EPA Dockets. You may use EPA been completed, EPA will issue its final OPP–2003–0030 in the subject line on Dockets at http://www.epa.gov/edocket/ tolerance reassessment decision for the first page of your response. to submit or view public comments, dicrotophos and further risk mitigation access the index listing of the contents measures may be needed. FOR FURTHER INFORMATION CONTACT: By mail: James A. Hollins, Office of of the official public docket, and to List of Subjects Pesticide Programs (7502C), access those documents in the public Environmental protection, Chemicals, Environmental Protection Agency, 1200 docket that are available electronically. Pesticides and pests. Pennsylvania Ave., NW., Washington, Although not all docket materials may DC 20460–0001; telephone number: be available electronically, you may still Dated: January 22, 2003. (703) 305–5761; e-mail address: access any of the publicly available Lois A Rossi, [email protected]. docket materials through the docket Director, Special Review and Reregistration facility identified in Unit I.B.1. Once in Division, Office of Pesticide Programs. SUPPLEMENTARY INFORMATION: the system, select ‘‘search,’’ then key in [FR Doc. 03–2775 Filed 2–4–03; 8:45 am] I. General Information the appropriate docket ID number. BILLING CODE 6560–50–S A. Does this Action Apply to Me? II. What Action is the Agency Taking? This action is directed to the public This notice announces receipt by the ENVIRONMENTAL PROTECTION Agency of applications from registrants AGENCY in general. Although this action may be of particular interest to persons who to delete uses in certain pesticide [OPP–2003–0030; FRL–7290–6] produce or use pesticides, the Agency registrations. These registrations are has not attempted to describe all the listed in the following Table 1 by Notice of Receipt of Requests for specific entities that may be affected by registration number, product name/ Amendments to Delete Uses in Certain this action. If you have any questions active ingredient, and specific uses Pesticide Registrations regarding the information in this notice, deleted: AGENCY: Environmental Protection consult the person listed under FOR Agency (EPA). FURTHER INFORMATION CONTACT.

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TABLE 1.—REGISTRATIONS WITH REQUESTS FOR AMENDMENTS TO DELETE USES IN CERTAIN PESTICIDE REGISTRATIONS

Registration no. Product Name Active Ingredient Delete From Label

000264–00328 SEVIN Brand 80% Dust Base Carbaryl Insecti- Carbaryl Poultry cide

000264–00335 SEVIN Brand RP4 Carbaryl Insecticide Carbaryl Poultry

001812–00353 Trilin 5 Trifluralin Eggplant, onion uses

002749–00106 Phorate Technical Phorate Wheat

008119–00008 Hinder Deer & Rabbit Repellent Ready-to-Use Ammonium salts of C8-18 & Soybeans and pea- C18′ fatty acids nuts

062719–00306 Starane+Salvo Acetic acid; fluroxpyr 1- Oats methylheptyl ester

062719–00333 Starane+Saber Dimethylamine 2,4D; Oats Fluroxypyr 1-methylheptyl ester

Users of these products who desire delete one or more uses. The Act further ENVIRONMENTAL PROTECTION continued use on crops or sites being provides that, before acting on the AGENCY deleted should contact the applicable request, EPA must publish a notice of [OPP–2003–0019; FRL–7288–8] registrant before August 4, 2003 to receipt of any such request in the discuss withdrawal of the application Federal Register. Thereafter, the Notice of Receipt of Requests to for amendment. This 180–day period Administrator may approve such a Voluntarily Cancel Certain Pesticide will also permit interested members of request. Registrations the public to intercede with registrants prior to the Agency’s approval of the IV. Procedures for Withdrawal of AGENCY: Environmental Protection deletion. Request Agency (EPA). ACTION: Notice. Table 2 includes the names and Registrants who choose to withdraw a addresses of record for all registrants of request for use deletion must submit SUMMARY: In accordance with section the products in Table 1, in sequence by such withdrawal in writing to James A. 6(f)(1) of the Federal Insecticide, EPA company number. Hollins, at the address under FOR Fungicide, and Rodenticide Act FURTHER INFORMATION CONTACT, (FIFRA), as amended, EPA is issuing a TABLE 2.—REGISTRANTS REQUESTING postmarked on or before August 4, 2003. notice of receipt of request by registrants VOLUNTARY CANCELLATION to voluntarily cancel certain pesticide V. Provisions for Disposition of Existing registrations. EPA Stocks Com- Company Name and Address DATES: Unless a request is withdrawn by pany no. The Agency has authorized the August 4, 2003, or March 7, 2003, for 000264 Bayer CropScience LP, 2 T.W. registrants to sell or distribute product EPA Registration Numbers: 001812– Alexander Drive, Research under the previously approved labeling 00420; 001812–00424; 006218–00069, Triangle Park, NC 27709. for a period of 18 months after approval orders will be issued canceling these of the revision, unless other restrictions registrations. 001812 Griffin L.L.C., Box 1847, Val- have been imposed, as in special review FOR FURTHER INFORMATION CONTACT: dosta, GA 31603. actions. James A. Hollins, Information Resources 002749 Aceto Agriculture Chemicals List of Subjects Services Division 7502C, Office of Corp., One Hollow Lane, Lake Pesticide Programs, Environmental Success, NY 11042. Environmental protection, Pesticides Protection Agency, 1200 Pennsylvania and pests. Ave., NW., Washington, DC 20460– 008119 Regulatory Services Inc., Agent 0001; telephone number: (703) 305– For: E.M. Matson Jr., Co., Dated: January 23, 2003. 5761; e-mail address: 17220 Westview Rd., Lake Linda Vlier Moos, Oswego, OR 97034. [email protected]. Acting Director, Information Resources and SUPPLEMENTARY INFORMATION: 062719 Dow AgroSciences LLC, 9330 Services Division. Zionsville Rd 308/2E225, Indi- [FR Doc. 03–2774 Filed 2–4–03 8:45 am] I. General Information anapolis, IN 46268. BILLING CODE 6560–50–S A. Does this Action Apply to Me? III. What is the Agency Authority for This action is directed to the public Taking This Action? in general. Although this action may be of particular interest to persons who Section 6(f)(1) of FIFRA provides that produce or use pesticides, the Agency a registrant of a pesticide product may has not attempted to describe all the at any time request that any of its specific entities that may be affected by pesticide registrations be amended to this action. If you have any questions

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regarding the information in this notice, is available for public viewing at the of the official public docket, and to consult the person listed under FOR Public Information and Records access those documents in the public FURTHER INFORMATION CONTACT. Integrity Branch (PIRIB), Rm. 119, docket that are available electronically. Crystal Mall #2, 1921 Jefferson Davis B. How Can I Get Copies of this Although not all docket materials may Hwy., Arlington, VA. This docket Document and Other Related be available electronically, you may still facility is open from 8:30 a.m. to 4 p.m., Information? access any of the publicly available Monday through Friday, excluding legal docket materials through the docket 1. Docket. EPA has established an holidays. The docket telephone number facility identified in Unit I.B.1. Once in official public docket for this action is (703) 305–5805. the system, select ‘‘search,’’ then key in under docket identification (ID) number 2. Electronic access. You may access the appropriate docket ID number. OPP–2003–0019. The official public this Federal Register document docket consists of the documents electronically through EPA Internet II. What Action is the Agency Taking? specifically referenced in this action, under the ‘‘Federal Register’’ listings at any public comments received, and http://www.epa.gov/fedrgstr/. This notice announces receipt by the other information related to this action. An electronic version of the public Agency of applications from registrants Although a part of the official docket, docket is available through EPA’s to cancel 33 pesticide products the public docket does not include electronic public docket and comment registered under section 3 or 24(c) of Confidential Business Information (CBI) system, EPA Dockets. You may use EPA FIFRA. These registrations are listed in or other information whose disclosure is Dockets at http://www.epa.gov/edocket/ sequence by registration number (or restricted by statute. The official public to submit or view public comments, company number and 24(c) number) in docket is the collection of materials that access the index listing of the contents Table 1 of this unit:

TABLE 1.—REGISTRATIONS WITH PENDING REQUESTS FOR CANCELLATION

Registration Number Product Name Chemical Name

000100 ID–02–0018 Cyclone concentrate/gramoxone max 1,1’-Dimethyl-4,4’-bipyridinium dichloride 000241 ID–99–0006 Raptor herbicide (+-)-2-(4,5-Dihydro-4-methyl-4-(1-methylethyl)-5-oxo-1H-imidazol-2-

000264–00456 Ethoprop (technical grade) O-Ethyl S,S-dipropyl phosphorodithioate

000264–00465 Mocap 10% granular nematicide insecticide O-Ethyl S,S-dipropyl phosphorodithioate

000264–00644 Whip 1 EC herbicide 2-(4-((6-Chloro-2-benzoxazolyl)oxy)phenoxy)propionic acid, ethyl ester, (+-)

000264 FL–85–0001 Mocap nematacide - insecticide 10% O-ethyl S,S-dipropyl phosphorodithioate granular

000264 ME–93–0003 Mocap 10% granular nematicide - insecti- O-ethyl S,S-dipropyl phosphorodithioate cide

000400 NE–02–0005 Dimilin 2L 1-(4-Chlorophenyl)-3-(2,6-difluorobenzoyl)urea

000400 OR–02–0008 Dimilin 2L 1-(4-Chlorophenyl)-3-(2,6-difluorobenzoyl)urea

000400 WA–02–0006 Dimilin 2L 1-(4-Chlorophenyl)-3-(2,6-difluorobenzoyl)urea

001812–00420 Griffin boa herbicide 1,1’-Dimethyl-4,4’-bipyridinium dichloride

001812–00424 Griffin boa concentrate 1,1’-Dimethyl-4,4’-bipyridinium dichloride

006218–00069 Summit Permacide O,O-Diethyl O-(2-isopropyl-6-methyl-4-pyrimidinyl) phosphorothioate

(Butylcarbityl)(6-propylpiperonyl) ether 80% and related compounds 20%

Pyrethrins

028293–00086 Unicorn dairy spray for milk houses and (Butylcarbityl)(6-propylpiperonyl) ether 80% and related compounds 20% animals

Pyrethrins

028293–00094 Unicorn automatic sequential insecticide (Butylcarbityl)(6-propylpiperonyl) ether 80% and related compounds 20%

Pyrethrins

028293–00156 Unicorn pet shampoo III Cyclopropanecarboxylic acid, 3-(2,2-dichloroethenyl)-2,2-dimethyl

028293–00157 Unicorn pyfen fogger N-Octyl bicycloheptene dicarboximide

(Butylcarbityl)(6-propylpiperonyl) ether 80% and related compounds 20%

Pyrethrins

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TABLE 1.—REGISTRATIONS WITH PENDING REQUESTS FOR CANCELLATION—Continued

Registration Number Product Name Chemical Name

4-Chloro-alpha-(1-methylethyl) benzeneacetic acid, cyano(3- phenoxyphenyl)methyl

028293–00168 Unicorn 7900 Iodine

028293–00170 Unicorn 7920 Alkyl* dimethyl benzyl ammonium chloride *(50%C14, 40%C12, 10%C16)

Didecyl dimethyl ammonium chloride

Octyl decyl dimethyl ammonium chloride

Dioctyl dimethyl ammonium chloride

028293–00171 Unicorn 7930 Alkyl* dimethyl benzyl ammonium chloride *(50%C14, 40%C12, 10%C16)

Didecyl dimethyl ammonium chloride

Octyl decyl dimethyl ammonium chloride

Dioctyl dimethyl ammonium chloride

028293–00172 Unicorn flea and tick shampoo (Butylcarbityl)(6-propylpiperonyl) ether and related compounds 20%

Pyrethrins

028293–00184 Unicorn liquid plant spray #2 Pyrethrins

Cyclopropanecarboxylic acid, 3-(2,2-dichloroethenyl)-2,2-dimethyl

028293–00186 Unicorn (vegetable and ornamental) spray (S-(R*,R*))-4-Chloro-alpha-(1-methylethyl)benzeneacetic acid, #2

028293–00187 Unicorn vegetable spray concentrate (S-(R*,R*))-4-Chloro-alpha-(1-methylethyl)benzeneacetic acid,

028293–00189 Unicorn fogger #7 N-Octyl bicycloheptene dicarboximide

(Butylcarbityl)(6-propylpiperonyl) ether 80% and related compounds 20%

Pyrethrins

(S-(R*,R*))-4-Chloro-alpha-(1-methylethyl)benzeneacetic acid

028293–00193 Unicorn fogger #5 2-Methyl-4-oxo-3-(2-propenyl)-2-cyclopenten-1-yl d-trans-2,2-dimethyl

(S-(R*,R*))-4-Chloro-alpha-(1-methylethyl)benzeneacetic acid

028293–00262 Unicorn ear miticide IV (Butylcarbityl)(6-propylpiperonyl) ether 80% and related compounds 20%

Pyrethrins

046813–00020 CCL wasp and hornet killer (1-Cyclohexene-1,2-dicarboximido)methyl 2,2-dimethyl-3-(2- methylpropenyl)cycloprop

(3-Phenoxyphenyl)methyl d-cis and trans* 2,2-dimethyl-3-(2- methylpropenyl)cyclopro

049403–00004 Nipa BCP disinfectant 2-Benzyl-4-chlorophenol

049403–00005 Sanco-phene 2-Benzyl-4-chlorophenol

4-Tert-amylphenol

O-phenylphenol

062719–00245 Lorsban 4E–SG O,O-diethyl O-(3,5,6-trichloro-2-pyridyl) phosphorothioate

062719 ID–95–0018 Transline 3,6-Dichloro-2-pyridinecarboxylic acid alkanolamine salts (of ethanol

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Unless a request is withdrawn by the become effective 30 days after the date by any person other than the registrant registrant within 180 days of of this Federal Register and the will not be lawful under FIFRA after publication of this notice, or 30 days distribution or sale of existing stocks by December 31, 2002, except for the where indicated, orders will be issued the registrant of EPA registration purpose of shipping such stocks for canceling all of these registrations. number 006218–0069, which bears export consistent with Section 17 of Users of these pesticides or anyone else instructions for indoor use, shall not be FIFRA or for proper disposal. desiring the retention of a registration lawful under FIFRA as of the effective Table 2 of this unit includes the should contact the applicable registrant date of the cancellation order, except for directly during the indicated comment the purposes of shipping such stocks for names and addresses of record for all period. export consistent with Section 17 of registrants of the products in Table 1 of In accordance with the December FIFRA or for proper disposal. The this unit, in sequence by EPA company 2000, Diazinon Memorandum of distribution or sale of existing stocks of number: Agreement, the cancellation order shall EPA registration number 006218–0069

TABLE 2.—REGISTRANTS REQUESTING VOLUNTARY CANCELLATION

EPA Company Number Company Name and Address

000100 Syngenta Crop Protection, Inc., Box 18300, Greensboro, NC 27419

000241 BASF Corp., Box 13528, Research Triangle Park, NC 27709

000264 Bayer CropScience LP, 2 T.W. Alexander Drive, Research Triangle Park, NC 27709

000400 Crompton MFG. Co., Inc., 74 Amity Rd, Bethany, CT 06524

001812 Griffin L.L C., Box 1847, Valdosta, GA 31603

006218 Summit Chemical Co, Summit Responsible Solutions, 7657 Canton Center Drive, Baltimore, MD 21224

028293 Unicorn Laboratories, 12385 Automobile Blvd., Clearwater, FL 33762

046813 John Roach, Agent For: K-G Packaging, Inc., 24931 Winoa, Dearborn, MI 48124

049403 Lewis and Harrison, Agent For: Clariant Corp., 122 C St NW Ste 740, Washington, DC 20001

062719 Dow AgroSciences LLC, 9330 Zionsville Rd 308/2E225, Indianapolis, IN 46268

III. What is the Agency’s Authority for effective date of cancellation and all currently in the United States and Taking this Action? other provisions of any earlier which have been packaged, labeled, and cancellation action are controlling. The Section 6(f)(1) of FIFRA provides that released for shipment prior to the withdrawal request must also include a a registrant of a pesticide product may effective date of the cancellation action. commitment to pay any reregistration at any time request that any of its Unless the provisions of an earlier order fees due, and to fulfill any applicable apply, existing stocks already in the pesticide registrations be canceled. unsatisfied data requirements. FIFRA further provides that, before hands of dealers or users can be acting on the request, EPA must publish V. Provisions for Disposition of Existing distributed, sold, or used legally until a notice of receipt of any such request Stocks they are exhausted, provided that such in the Federal Register. Thereafter, the The effective date of cancellation will further sale and use comply with the Administrator may approve such a be the date of the cancellation order. EPA approved label and labeling of the request. The orders effecting these requested affected product. Exception to these general rules will be made in specific IV. Procedures for Withdrawal of cancellations will generally permit a cases when more stringent restrictions Request registrant to sell or distribute existing stocks for 1–year after the date the on sale, distribution, or use of the Registrants who choose to withdraw a cancellation request was received. This products or their ingredients have request for cancellation must submit policy is in accordance with the already been imposed, as in a Special such withdrawal in writing to the Agency’s statement of policy as Review action, or where the Agency has person listed under FOR FURTHER prescribed in the Federal Register of identified significant potential risk INFORMATION CONTACT, postmarked June 26, 1991 (56 FR 29362) (FRL– concerns associated with a particular before August 4, 2003, or March 7, 2003 3846–4). Exceptions to this general rule chemical. for EPA Registration Numbers: 001812– will be made if a product poses a risk 00420; 001812–00424; 006218–00069. concern, or is in noncompliance with List of Subjects This written withdrawal of the reregistration requirements, or is subject Environmental protection, Pesticides request for cancellation will apply only to a data call-in. In all cases, product- and pests. to the applicable FIFRA section 6(f)(1) specific disposition dates will be given request listed in this notice. If the in the cancellation orders. product(s) have been subject of a Existing stocks are those stocks of previous cancellation action, the registered pesticide products which are

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Dated: January 22, 2003. (NAICS) codes have been provided to policy is that copyrighted material will Linda Vlier Moos, assist you and others in determining not be placed in EPA’s electronic public Acting Director, Information Resources whether this action might apply to docket but will be available only in Services Division, Office of Pesticide certain entities. To determine whether printed, paper form in the official public Programs. you or your business may be affected by docket. To the extent feasible, publicly [FR Doc. 03–2772 Filed 2–4–03; 8:45 am] this action, you should carefully available docket materials will be made BILLING CODE 6560–50–S examine the applicability provisions in available in EPA’s electronic public OPP–2002–0081. If you have any docket. When a document is selected questions regarding the applicability of from the index list in EPA Dockets, the ENVIRONMENTAL PROTECTION this action to a particular entity, consult system will identify whether the AGENCY the person listed under FOR FURTHER document is available for viewing in INFORMATION CONTACT. EPA’s electronic public docket. [OPP–2002–0081; FRL–7287–5] Although not all docket materials may B. How Can I Get Copies of this be available electronically, you may still Imidacloprid; Notice of Filing Pesticide Document and Other Related access any of the publicly available Petitions to Establish Tolerances for a Information? Certain Pesticide Chemical in or on docket materials through the docket 1. Docket. EPA has established an Food facility identified in Unit I.B. EPA official public docket for this action intends to work towards providing AGENCY: Environmental Protection under docket identification (ID) number electronic access to all of the publicly Agency (EPA). OPP–2002–0081. The official public available docket materials through ACTION: Notice. docket consists of the documents EPA’s electronic public docket. specifically referenced in this action, For public commenters, it is SUMMARY: This notice announces the any public comments received, and important to note that EPA’s policy is initial filing of pesticide petitions other information related to this action. that public comments, whether proposing the establishment of Although a part of the official docket, submitted electronically or in paper, regulations for residues of a certain the public docket does not include will be made available for public pesticide chemical in or on various food Confidential Business Information (CBI) viewing in EPA’s electronic public commodities. or other information whose disclosure is docket as EPA receives them and DATES: Comments, identified by docket restricted by statute. The official public without change, unless the comment ID number OPP–2002–0081, must be docket is the collection of materials that contains copyrighted material, CBI, or received on or before March 7, 2003. is available for public viewing at the other information whose disclosure is Public Information and Records restricted by statute. When EPA ADDRESSES: Comments may be Integrity Branch (PIRIB), Rm. 119, submitted electronically, by mail, or identifies a comment containing Crystal Mall #2, 1921 Jefferson Davis copyrighted material, EPA will provide through hand delivery/courier. Follow Hwy., Arlington, VA. This docket a reference to that material in the the detailed instructions as provided in facility is open from 8:30 a.m. to 4 p.m., version of the comment that is placed in Unit I. of the SUPPLEMENTARY Monday through Friday, excluding legal EPA’s electronic public docket. The INFORMATION. holidays. The docket telephone number entire printed comment, including the FOR FURTHER INFORMATION CONTACT: is (703) 305–5805. copyrighted material, will be available Sidney Jackson, Registration Division 2. Electronic access. You may access in the public docket. (7505C), Office of Pesticide Programs, this Federal Register document Public comments submitted on Environmental Protection Agency, 1200 electronically through the EPA Internet computer disks that are mailed or Pennsylvania Ave., NW., Washington, under the ‘‘Federal Register’’ listings at delivered to the docket will be DC 20460–0001; telephone number: http://www.epa.gov/fedrgstr/. transferred to EPA’s electronic public (703) 305–7610; e-mail address: An electronic version of the public docket. Public comments that are [email protected]. docket is available through EPA’s mailed or delivered to the docket will be electronic public docket and comment scanned and placed in EPA’s electronic SUPPLEMENTARY INFORMATION: system, EPA Dockets. You may use EPA public docket. Where practical, physical I. General Information Dockets at http://www.epa.gov/edocket/ objects will be photographed, and the to submit or view public comments, A. Does this Action Apply to Me? photograph will be placed in EPA’s access the index listing of the contents electronic public docket along with a You may be potentially affected by of the official public docket, and to brief description written by the docket this action if you are an agricultural access those documents in the public staff. producer, food manufacturer, or docket that are available electronically. pesticide manufacturer. Potentially Although not all docket materials may C. How and To Whom Do I Submit affected categories and entities may be available electronically, you may still Comments? include, but are not limited to: access any of the publicly available You may submit comments • Crop production (NAICS 111) docket materials through the docket electronically, by mail, or through hand • Animal production (NAICS 112) facility identified in Unit I. B.1. Once in delivery/courier. To ensure proper • Food manufacturing (NAICS 311) the system, select ‘‘search,’’ then key in receipt by EPA, identify the appropriate • Pesticide manufacturing (NAICS the appropriate docket ID number. docket ID number in the subject line on 32532) Certain types of information will not the first page of your comment. Please This listing is not intended to be be placed in the EPA Dockets. ensure that your comments are exhaustive, but rather provides a guide Information claimed as CBI and other submitted within the specified comment for readers regarding entities likely to be information whose disclosure is period. Comments received after the affected by this action. Other types of restricted by statute, which is not close of the comment period will be entities not listed in this unit could also included in the official public docket, marked ‘‘late.’’ EPA is not required to be affected. The North American will not be available for public viewing consider these late comments. If you Industrial Classification System in EPA’s electronic public docket. EPA’s wish to submit CBI or information that

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is otherwise protected by statute, please WordPerfect or ASCII file format. Avoid 3. Provide copies of any technical follow the instructions in Unit I.D. Do the use of special characters and any information and/or data you used that not use EPA Dockets or e-mail to submit form of encryption. support your views. CBI or information protected by statute. 2. By mail. Send your comments to: 4. If you estimate potential burden or 1. Electronically. If you submit an Public Information and Records costs, explain how you arrived at the electronic comment as prescribed in this Integrity Branch (PIRIB) (7502C), Office estimate that you provide. unit, EPA recommends that you include of Pesticide Programs (OPP), your name, mailing address, and an e- 5. Provide specific examples to Environmental Protection Agency, 1200 illustrate your concerns. mail address or other contact Pennsylvania Ave., NW., Washington, information in the body of your DC 20460–0001, Attention: Docket ID 6. Offer alternative ways to improve comment. Also include this contact Number OPP–2002–0081. the notice or collection activity. information on the outside of any disk 7. Make sure to submit your or CD ROM you submit, and in any 3. By hand delivery or courier. Deliver your comments to: Public Information comments by the deadline in this cover letter accompanying the disk or notice. CD ROM. This ensures that you can be and Records Integrity Branch (PIRIB), 8. To ensure proper receipt by EPA, identified as the submitter of the Office of Pesticide Programs (OPP), be sure to identify the docket ID number comment and allows EPA to contact you Environmental Protection Agency, Rm. in case EPA cannot read your comment 119, Crystal Mall #2, 1921 Jefferson assigned to this action in the subject due to technical difficulties or needs Davis Hwy., Arlington, VA, Attention: line on the first page of your response. further information on the substance of Docket ID Number OPP–2002–0081. You may also provide the name, date, your comment. EPA’s policy is that EPA Such deliveries are only accepted and Federal Register citation. will not edit your comment, and any during the docket’s normal hours of II. What Action is the Agency Taking? identifying or contact information operation as identified in Unit I.B.1. provided in the body of a comment will D. How Should I Submit CBI to the EPA has received pesticide petitions be included as part of the comment that Agency? as follows proposing the establishment is placed in the official public docket, and/or amendment of regulations for and made available in EPA’s electronic Do not submit information that you residues of certain pesticide chemical in public docket. If EPA cannot read your consider to be CBI electronically or on various food commodities under comment due to technical difficulties through EPA’s electronic public docket section 408 of the Federal Food, Drug, and cannot contact you for clarification, or by e-mail. You may claim and Cosmetic Act (FFDCA), 21 U.S.C. EPA may not be able to consider your information that you submit to EPA as 346a. EPA has determined that these comment. CBI by marking any part or all of that petitions contain data or information i. EPA Dockets. Your use of EPA’s information as CBI (if you submit CBI regarding the elements set forth in electronic public docket to submit on disk or CD ROM, mark the outside FFDCA section 408(d)(2); however, EPA comments to EPA electronically is of the disk or CD ROM as CBI and then has not fully evaluated the sufficiency EPA’s preferred method for receiving identify electronically within the disk or of the submitted data at this time or comments. Go directly to EPA Dockets CD ROM the specific information that is whether the data support granting of the at http://www.epa.gov/edocket, and CBI). Information so marked will not be petition. Additional data may be needed follow the online instructions for disclosed except in accordance with before EPA rules on the petition. submitting comments. Once in the procedures set forth in 40 CFR part 2. List of Subjects system, select ‘‘search,’’ and then key in In addition to one complete version of docket ID number OPP–2002–0081. The the comment that includes any Environmental protection, system is an ‘‘anonymous access’’ information claimed as CBI, a copy of Agricultural commodities, Feed system, which means EPA will not the comment that does not contain the additives, Food additives, Pesticides know your identity, e-mail address, or information claimed as CBI must be and pests, Reporting and recordkeeping other contact information unless you submitted for inclusion in the public requirements. provide it in the body of your comment. docket and EPA’s electronic public ii. E-mail. Comments may be sent by Dated: January 24, 2003. docket. If you submit the copy that does Peter Caulkins, e-mail to [email protected], not contain CBI on disk or CD ROM, Attention: Docket ID Number OPP– Acting Director, Registration Division, Office mark the outside of the disk or CD ROM of Pesticide Programs. 2002–0081. In contrast to EPA’s clearly that it does not contain CBI. electronic public docket, EPA’s e-mail Information not marked as CBI will be Summaries of Petitions system is not an ‘‘anonymous access’’ included in the public docket and EPA’s The petitioner’s summaries of the system. If you send an e-mail comment electronic public docket without prior pesticide petitions are printed below as directly to the docket without going notice. If you have any questions about required by FFDCA section 408(d)(3). through EPA’s electronic public docket, CBI or the procedures for claiming CBI, The summaries of the petitions were EPA’s e-mail system automatically please consult the person listed under captures your e-mail address. E-mail prepared by Bayer Corporation and FOR FURTHER INFORMATION CONTACT. addresses that are automatically represents the view of the company. The captured by EPA’s e-mail system are E. What Should I Consider as I Prepare petitions summaries announce the included as part of the comment that is My Comments for EPA? availability of a description of the placed in the official public docket, and analytical methods available to EPA for You may find the following made available in EPA’s electronic the detection and measurement of the suggestions helpful for preparing your public docket. pesticide chemical residues or an iii. Disk or CD ROM. You may submit comments: explanation of why no such method is comments on a disk or CD ROM that 1. Explain your views as clearly as needed. The Interregional Research you mail to the mailing address possible. Project No. 4 (IR–4) assembled and identified in Unit I.C.2. These electronic 2. Describe any assumptions that you submitted the petitions to EPA on submissions will be accepted in used. behave of the Bayer Corporation.

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Interregional Research Project Number 408(d)(2) of the FFDCA; however, EPA support the proposed watercress 4 and Bayer Corporation has not fully evaluated the sufficiency tolerance of 3.5 ppm. of the submitted data at this time or • Artichoke. IR–4 has received PP 1E6268, PP 1E6254, PP 1E6237, PP whether the data support granting of the requests from California for the use of 1E6225, PP 0E6203, PP 2E6403, PP petitions. Additional data may be imidacloprid on artichoke. To support 2E6406, PP 2E6409, PP 2E6417, PP needed before EPA rules on the this request and the proposed tolerance 2E6421, PP 2E6435, PP 2E6414, PP petitions. Bayer Corporation, Crop of 2.5 ppm, magnitude of residue data 2E6458, and PP 2E6506 Protection, Kansas City, MO 64120– were collected from three field trials in EPA has received pesticide petitions 0013 produces the imidacloprid California. from the Interregional Research Project product(s) of concern for these pending • Cranberry. IR–4 received a request Number 4 (IR–4), Technology Centre tolerances. from Massachusetts for the use of and Rutgers State University of New imidacloprid on cranberries. To support A. Residue Chemistry Jersey, 681 U.S. Highway #1 South, this request and the proposed tolerance North Brunswick, NJ 08902–3390 1. Plant metabolism. The nature of the for strawberry at 0.05 ppm. IR–4 proposing, pursuant to section 408(d) of imidacloprid residue in plants and conducted five field trials in the states the Federal Food, Drug, and Cosmetic livestock is adequately understood. The of Massachusetts, New Jersey, Act (FFDCA), 21 U.S.C. 346a(d), to residues of concern are combined Wisconsin, and Oregon. amend 40 CFR part 180.472 by residues of imidacloprid and it • Peas. IR–4 received a request from establishing tolerances for the combined metabolites containing the 6- Washington, Oregon, and Delaware for residues of imidacloprid, 1-(6-chloro-3- chloropyridinyl moiety, all calculated as the use of imidacloprid on peas. In pyridinyl)methyl-N-nitro-2- imidacloprid. support of this request, field trials were imidazolidinimine, and its metabolites 2. Analytical method. The analytical conducted in Wisconsin, Ohio, containing the 6-chloropyridinyl method is a common moiety method for Washington, Maryland, New Jersey, and moiety, all expressed as imidacloprid in imidacloprid and its metabolites California. • or on the raw agricultural commodities containing the 6-chloropyridinyl moiety Mamey sapote. IR–4 received a as follows: using a permanganate oxidation, silyl request from Florida for the use of 1. PP 1E6268 proposes tolerances for derivatization, and capillary gas imidacloprid on mamey sapote. In bushberry subgroup 13B and chromatography/mass spectrometry support of this request, two field trials lingonberry, juneberry, and salal at 3.5 (GC/MS) selective ion monitoring. This were conducted in southern Florida. • parts per million (ppm). method has successfully passed a Leaves of root and tuber crop 2. PP 1E6254 proposes a tolerance for petition method validation in EPA labs. group. IR–4 received a request from okra at 1.0 ppm. There is a confirmatory method Oregon and California for the use of 3. PP 1E6237 proposes a tolerance for specifically for imidacloprid and several imidacloprid on beets. In support of this watercress at 3.5 ppm. metabolites utilizing GC/MS and high request, magnitude of residue data were 4. PP 1E6225 proposes a tolerance for performance liquid chromotography/ collected from field trials conducted in artichoke at 2.5 ppm. using ultra-violet detection (HPLC/UV) Texas, Ohio, New Jersey, Oregon, and 5. PP 0E6203 proposes a tolerance for which has been validated by EPA as Indiana. Data from beet tops were cranberry at 0.05 ppm. well. Imidacloprid and its metabolites combined with the previously 6. PP 2E6403 proposes a tolerance for are stable for at least 24 months in the submitted petition for turnip tops to vegetable, legume, except soybean, commodities when frozen. support a tolerance for leaves of root group 6 at 4.0 ppm. 3. Magnitude of residues. Bushberry and tuber vegetables. 7. PP 2E6406 proposes tolerances for subgroup, lingonberry, juneberry, and • Stone fruit. IR–4 received requests avocado, papaya, star apple, black salal. IR–4 has received requests from from Utah, Washington, Michigan, and sapote, mango, sapodilla, canistel, and Maine for imidacloprid use on lowbush Oregon for the use of imidacloprid on mamey sapote at 1.0 ppm, and lychee, blueberries and from New Jersey, cherries, Michigan and Washington for longan, Spanish lime, rambutan, Delaware, Michigan, and South Carolina the use of imidacloprid on peaches, and pulasan, and persimmon at 3.0 ppm. for use on high bush blueberries. Two Michigan for the use of imidacloprid on 8. PP 2E6409 proposes a tolerance for field trials were performed on lowbush plums. Magnitude of residue data were vegetable, leaves of root and tuber, blueberries and nine trials on highbush collected on these crops to support a group 2 at 4.0 ppm. blueberries to support the requested stone fruit crop group tolerance. 9. PP 2E6417 proposes a tolerance for tolerance of 3.5 ppm. • Strawberry. IR–4 received requests strawberry at 0.5 ppm. • Okra. No data was submitted in from Oregon, Mississippi, Michigan, 10. PP 2E6421 proposes a tolerance support of this tolerance petition; rather, Wisconsin, and North Carolina for the for fruit, stone, group 12 at 3.0 ppm. IR–4 proposes that EPA, utilizes the use of imidacloprid on strawberries. In 11. PP 2E6435 proposes tolerances for registrant’s fruiting vegetable data support of this requested tolerance, guava, feijoa, jaboticaba, wax jambu, (peppers and tomatoes). IR–4 believes magnitude of residue trials were starfruit, passionfruit, and acerola at 1.0 this approach is justified based upon the conducted in Florida, California, New ppm. similarities of okra to members of the Jersey, Wisconsin, and Oregon. 12. PP 2E6414 proposes tolerances for fruiting vegetable crop group. It is • Dry beans. IR–4 received requests corn, pop, grain at 0.05 ppm and corn, noteworthy that okra is classified as a from New York, Washington, pop, stover at 0.2 ppm. fruiting vegetable under CODEX. Wisconsin, Georgia, California, and 13. PP 2E6458 proposes a tolerance • Watercress. IR–4 received a request Idaho for the use of imidacloprid on dry for mustard seed at 0.05 ppm. from the Florida Agricultural beans. In support of this request, 14. PP 2E6506 proposes a tolerance Experiment Station for the registration magnitude of residue trials were for vegetable, root, and tuber, except of imidacloprid on watercress. No conducted in Washington, North sugar beet, group 1 at 0.4 ppm. watercress data were presented in Dakota, New York, Wisconsin, and EPA has determined that the petitions support of this petition; rather, IR–4 California. contain data or information regarding requests that EPA utilizes the • Guava and related crops (feijoa, the elements set forth in section registrant’s head and leaf lettuce data to jaboticaba, wax jambu, starfruit,

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passion fruit, and acerola). IR–4 Two major routes of biotransformation the 1994–1998 United States received a request from Florida for the were proposed for imidacloprid. The Department of Agriculture (USDA) use of imidacloprid on guava. first route included an oxidative Continuing Surveys of Food Intake by Magnitude of the residue data were cleavage of the parent compound Individuals (CSFII). collected from Florida on guava to rendering 6-chloronicotinic acid and its The endpoint for acute dietary risk support a tolerance on guava and related glycine conjugate. Dechlorination of this assessments is based on neurotoxicity crops. metabolite formed the 6- characterized by decreases in motor or • Corn, pop. No crop-specific data hydroxynicotinic acid and its locomotor activity in female rats at 42 were submitted with the petition mercapturic acid derivative. The second milligrams/kilogram body weight/day proposing imidacloprid tolerances on route included the hydroxylation (mg/kg bwt/day) (the lowest observed popcorn. IR–4 proposes that EPA followed by elimination of water of the adverse effect level (LOAEL) from an translates residue data from field corn to parent compound rendering NTN acute neurotoxicity study). Based on an popcorn in order to establish the 35884. A comparison between uncertainty factor (UF) of 10x for requested tolerances. [methylene-14C-]imidacloprid and interspecies and 10x for intraspecies, • Mustard seed. No crop-specific [imidazolidine-4,5-14C]imidacloprid the acute reference dose (RfD) = 0.42 data are being submitted with this showed that while the rate of excretion mg/kg bwt/day. EPA has determined petition proposing an imidacloprid was similar, the renal portion was that an additional UF for FQPA tolerance on mustard seed. IR–4 higher with the imidazolidine-labeled (reduced to 3x) applies to all population proposes that EPA translates residue compound. In addition, accumulation in subgroups for acute risk. Application of data from canola to mustard seed in tissues was generally higher with the the additional 3x safety factor results in order to establish the tolerance based imidazolidine-labeled compound. an acute population adjusted dose upon the botanical and cultural A comparison between imidacloprid (aPAD) 0.14 mg/kg bwt/day or a margin similarities of the crops. Additionally, and one of its metabolites, WAK 3839, of exposure (MOE) of 300. Canada has a crop group for oil seeds showed that the total elimination was For chronic dietary analyses, EPA has (crop group 20) which contains mustard the same for both compounds. The established the RfD for imidacloprid at seed and has canola as one of the proposed metabolic pathways for these 0.057 mg/kg/day based on a no-observed representative commodities. two compounds were different. WAK adverse effect level (NOAEL) of 5.7 mg/ kg bwt/day from a rat chronic toxicity B. Toxicological Profile 3839 was formed following pretreatment (repeated dosing) of imidacloprid. carcinogenicity study and UF of 10x for EPA has evaluated the available 2. Endocrine disruption. The interspecies and 10x for intraspecies. imidacloprid toxicity data and toxicology data base for imidacloprid is EPA has determined that an additional considered its validity, completeness, current and complete. Studies in this UF for FQPA (reduced to 3x) applies to and reliability as well as the data base include evaluation of the all population subgroups for chronic relationship of the results of the studies potential effects on reproduction and risk. Application of the additional 3x to human risk. EPA has also considered development, and an evaluation of the safety factor results in a chronic available information concerning the pathology of the endocrine organs population adjusted dose (cPAD) of reliability of the sensitivities of major following short- or long-term exposure. 0.019 mg/kg bwt/day. identifiable subgroups of consumers, These studies revealed no primary The registrant believes that results including infants and children. The endocrine effects due to imidacloprid. from the acute and chronic dietary nature of the toxic effects caused by exposure analyses described below imidacloprid is discussed in Unit II.A. C. Aggregate Exposure demonstrate a reasonable certainty that of the final rule on imidacloprid 1. Dietary exposure. Assessments no harm to the overall U.S. population pesticide tolerances published in the were conducted to evaluate potential or any population subgroup will result Federal Register of September 18, 1998 risks due to chronic and acute dietary from the use of imidacloprid on (63 FR 49837) (FRL–6027–1). Please exposure of the U.S. population and currently registered and pending uses. refer to this document should you desire selected population subgroups to i. Food. Acute and chronic (Tier 3) detailed toxicological information on residues of imidacloprid. These risk assessments were made using the imidacloprid. analyses cover all registered crops results of field trials conducted at 1. Animal metabolism. The including rotational crops; uses pending maximum label application rates and metabolism of NTN 33893 with EPA Registration Division’s 2002 the shortest pre-harvest intervals. For (imidacloprid) in rats was reported in work plan including dry beans, peas, some of the vegetable crops, the residue seven studies. The data show that bushberries, lingonberry, juneberries, data were collected at 1.5x or greater imidacloprid was rapidly absorbed and salal, carrots, turnips, okra, cranberries, than the maximum label rate of 0.5 lb eliminated in the excreta (90% of the artichoke (globe), watercress, beet roots, active ingredient/acre per season. In dose within 24 hours), demonstrating no leaves of root and tuber vegetables, addition, no adjustments were made to biologically significant differences stone fruit, mamey sapote, guava, feijoa, account for dissipation of residues between sexes, dose levels, or route of jaboticaba, wax jambu, starfruit, passion during storage, transportation from the administration. Elimination was mainly fruit, acerola, strawberry, cucumber field to the consumer, washing or renal (70–80% of the dose) and fecal (greenhouse), and tomato (greenhouse), peeling. Therefore, the actual dietary (17–25%). The major part of the fecal and an import tolerance petition on exposure will be less than that activity originated in the bile. Total bananas, active and proposed section 18 presented here. body accumulation after 48 hours uses on blueberries, cranberries, table For the chronic analysis, mean field consisted of 0.5% of the radioactivity beets, strawberries and turnips. trial residues were calculated. For the with the liver, kidney, lung, skin, and Novigen sciences, Inc.’s Dietary acute Monte Carlo analysis, the entire plasma being the major sites of Exposure Evaluation Model (DEEMTM), distribution of residue field trial data accumulation. Therefore, which is licensed to Bayer Corporation, were used for the ‘‘non-blended’’ and bioaccumulation of imidacloprid is low was used to estimate the chronic and ‘‘partially blended’’ foods as determined in rats. Maximum plasma concentration acute dietary exposure. This software by EPA’s standard operating procedure was reached between 1.1 and 2.5 hours. uses the food consumption data from (SOP) 99.6. For the foods considered as

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‘‘blended’’ by EPA’s Health Effects children were estimated by comparing Corporation assumes that imidacloprid Division (HED) SOP 99.6, mean field dermal exposure doses to the does not have a common mechanism of trial residue data were used. As allowed imidacloprid no-observable effect level toxicity with other substances and only in EPA’s draft guidance for submission of 1,000 mg/kg/day established in a 15– the potential risks of imidacloprid in its of probabilistic human health exposure day dermal toxicity study in rabbits. aggregate exposure are considered. assessments one half limit of detection The estimated safe residue levels of E. Safety Determination limit of detection (LOD) limit of imidacloprid on treated turf for 10–year quantitation (LOQ) values were used for old children ranged from 5.6 - 38.2 1. U.S. population. EPA has all non-detected values (values below grams/centimeters (g/cm2) and for 5– considered data from developmental the sensitivity of the method). year old children from 5.1 - 33.5 g/cm2. toxicity studies in the rat and rabbit and ii. Acute. Bayer Corporation’s acute This compares with the average a 2–generation reproduction study in Monte Carlo dietary exposure imidacloprid transferable residue level the rat. These studies are discussed in assessment estimated percent of the of 0.080 g/cm2 present immediately the toxicological profile section of Unit aPAD and corresponding MOE for the after the sprays have dried. The data II. of the Federal Register dated overall U.S. population (all seasons) and indicate that children can safely contact September 18, 1998 (63 FR 49837). The various subpopulations. In this analysis, imidacloprid-treated turf as soon after developmental toxicity data the exposure for the total U.S. application as the spray has dried. demonstrated no increased sensitivity of population was equal to 7.73% of the ii. Termiticide. Imidacloprid is rats or rabbits to in utero exposure to aPAD at the 99.9th percentile. The most registered as a termiticide. Due to the imidacloprid. In addition, the multi- highly exposed population subgroup, nature of the treatment for termites, generation reproductive toxicity study children (1 to 6 yrs), had an exposure exposure would be limited to that from did not identify any increased equal to 16.42% of the aPAD at the inhalation and was evaluated by EPA sensitivity of rats to in utero or postnatal 99.9th percentile. Therefore, the acute and the Bayer Corporation. Data exposure. Parental NOAELs were lower dietary exposure estimates are below indicate that the MOS for the worst case or equivalent to developmental or EPA’s level of concern (LOC) for the exposures for adults and infants offspring NOAELs. The developmental overall U.S. population as well as the occupying a treated building who are toxicity studies are designed to evaluate various subpopulations. exposed continuously (24 hours/day) adverse effects on the developing iii. Chronic. The Bayer Corporation are 8.0 x 107 and 2.4 x 108, respectively organism resulting from maternal chronic dietary exposure estimated the - and exposure can thus be considered pesticide exposure during gestation. percent of the cPAD for the overall U.S. negligible. Reproduction studies provide population (all seasons) and various iii. Tobacco smoke. Studies have been information relating to effects from subpopulations. In this analysis, the conducted to determine residues in exposure to the pesticide on the exposure for the total U.S. population tobacco and the resulting smoke reproductive capability of mating was equal to 1.4% of the cPAD. The following treatment. Residues of animals and data on systemic toxicity. most highly exposed population imidacloprid in cured tobacco following FFDCA section 408 provides that EPA subgroup, children (1 to 6 yrs), had an treatment were a maximum of 31 ppm shall apply an additional ten-fold exposure equal to 3.0% of the cPAD. (7 ppm in fresh leaves). When this margin of safety for infants and children Therefore, the chronic exposure tobacco was burned in a pyrolysis study in the case of threshold effects to estimates are below EPA’s LOC for the only 2% of the initial residue was account for prenatal and postnatal overall U.S. population as well as the recovered in the resulting smoke (main toxicity and the completeness of the various subpopulations. stream plus side stream). This would data base unless EPA determines that a iv. Drinking water. EPA, as published result in an inhalation exposure to different margin of safety will be safe for in the Federal Register of April 10, 2001 imidacloprid from smoking of infants and children. Margin of safety (69 FR 18554) (FRL–6777–6), calculated approximately 0.0005 mg per cigarette. are incorporated into EPA risk acute and chronic drinking water levels Using the measured subacute rat assessments either directly through use of concern (DWLOC) and compared inhalation NOAEL of 5.5 milligrams/ of a MOE analysis or through using them with the estimated environmental meters (mg/m3), it is apparent that uncertainty (safety) factors in concentrations (EECs) for surface water exposure to imidacloprid from smoking calculating a dose level that poses no and ground water. Based on this (direct exposure and/or indirect appreciable risk to humans. EPA comparison, they determined that acute exposure) would not be significant. believes that reliable data support using exposure and chronic exposure would iv. Pet treatment. Human exposure the standard UF (usually 100 for not be expected to exceed the aPAD and from the use of imidacloprid to treat combined interspecies and intraspecies cPAD, respectively. It is not expected dogs and cats for fleas has been variability) and not the additional ten- that the additional exposure from the addressed by EPA. Bayer Corporation fold MOE/UF when EPA has a complete minor crops pending in EPA’s 2002 believes, that due to the fact that data base under existing guidelines and work plan would significantly change imidacloprid is not an inhalation or when the severity of the effect in infants EPA’s water assessment. dermal toxicant and that while dermal or children or the potency or unusual 2. Non-dietary exposure—i. absorption data are not available, toxic properties of a compound do not Residential turf. Bayer Corporation has imidacloprid is not considered to raise concerns regarding the adequacy of conducted an exposure study to address present a hazard via the dermal route. the standard MOE/SF. the potential exposures of adults and Although developmental toxicity children from contact with imidacloprid D. Cumulative Effects studies showed no increased sensitivity treated turf. The population considered Imidacloprid is a chloronicotinyl in fetuses as compared to maternal to have the greatest potential exposure insecticide. At this time, EPA has not animals following in utero exposures in from contact with pesticide treated turf made a determination that imidacloprid rats and rabbits, no increased sensitivity soon after pesticides are applied are and other substances that may have a in pups as compared to adults was seen young children. Margins of safety (MOS) common mechanism of toxicity would in the 2–generation reproduction of 7,587–41,546 for 10–year old children have cumulative effects. Therefore, for toxicity study in rats, and the toxicology and 6,859–45,249 for 5–year old these tolerance petitions, Bayer data base is complete as to core

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requirements, EPA has determined that imidacloprid on any crops currently the Secretary, Federal Maritime the additional SF for the protection of pending at EPA. Commission, Washington, DC 20573, infants and children will be retained but FR Doc. 03–2773 Filed 2–4–03; 8:45 a m] within 10 days of the date this notice reduced to 3x based on the following BILLING CODE 6560–50–S appears in the Federal Register. weight-of-the-evidence considerations relating to potential sensitivity and Agreement No.: 011510–017. completeness of the data: ENVIRONMENTAL PROTECTION Title: West African Discussion • There is concern for structure AGENCY Agreement. activity relationship. Imidacloprid, a [FRL–7448–3] Parties: Atlantic Bulk Carriers, Ltd., chloronicotinyl compound, is an analog HUAL AS, A.P. Moller Maersk Sealand, to nicotine and studies in the published Jack Goins Waste Oil Superfund Site/ Mediterranean Shipping Company, P&O literature suggest that nicotine, when Cleveland,Tennessee; Notice of Nedlloyd Limited, Safmarine Container administered causes developmental Proposed Settlement Lines NV, Zim Israel Navigation toxicity, including functional deficits, in Company Ltd. animals and/or humans that are exposed AGENCY: Environmental Protection in utero. Agency. Synopsis: The amendment adds • There is evidence that ACTION: Notice of proposed settlement. Safmarine Container Lines as a party to imidacloprid administration causes the agreement effective February 1, neurotoxicity following a single oral SUMMARY: Under section 122(h)(1) of the 2003. Comprehensive Environmental dose in the acute study and alterations Agreement No.: 011802–001. in brain weight in rats in the 2–year Response, Compensation, and Liability carcinogenicity study. Act (CERCLA), the Environmental Title: Evergreen/Lloyd Triestino/ • The concern for structure activity Protection Agency (EPA) has proposed Hatsu Marine Alliance-WTSA Bridging relationship along with the evidence of to settle claims for response costs at the Agreement. neurotoxicity dictates the need of a Jack Goins Waste Oil Superfund Site Parties: The Evergreen/Lloyd developmental neurotoxicity study for (Site) located in Cleveland, Tennessee, Triestino/Hatsu Marine Alliance assessment of potential alterations on with Jack L. Goins, Susie T. Goins, Jack Agreement, Westbound Transpacific functional development. Goins Waste Oil Pumping Service, and Stabilization Agreement. Because a developmental Frances L. Lockmiller. EPA will Synopsis: The amendment updates neurotoxicity study potentially relates consider public comments on the the membership of the Westbound to both acute and chronic effects in both proposed settlement for thirty days. EPA Transpacific Stabilization Agreement. the mother and the fetus, EPA has may withdraw from or modify the applied the additional UF for FQPA for proposed settlement should such Agreement No.: 011839. all population subgroups, and in both comments disclose facts or considerations which indicate the Title: Med-Gulf Space Charter acute and chronic risk assessments. Agreement. Based on the exposure assessments proposed settlement is inappropriate, described above and on the improper, or inadequate. Copies of the Parties: Compania Chilena de completeness and reliability of the proposed settlement are available from: Navegacion Interoceanica, Compania toxicity data, Bayer Corporation has Ms. Paula V. Batchelor, U.S. Sud-Americana de Vapores S.A., Lykes concluded that the dietary exposure Environmental Protection Agency, Lines Limited LLC. estimates from all label and pending Region IV, Waste Management Division, Synopsis: The proposed agreement 61 Forsyth Street, SW., Atlanta, Georgia uses of imidacloprid are 7.73% of the authorizes Lykes to charter space to the th 30303, (404) 562–8887. aPAD at the 99.9 percentile and 1.4% other parties in the trade between U.S. Written comment may be submitted to of the cPAD for the U.S. population. Gulf ports, including Miami, Florida, Mr. Greg Armstrong at the above Thus, Bayer Corporation has concluded and San Juan, Puerto Rico, on the one that there is a reasonable certainty that address within 30 days of the date of publication. hand, and ports in Spain, Italy, and no harm will result from aggregate Mexico, on the other hand. exposure to imidacloprid residues. Dated: January 15, 2003. 2. Infants and children. Based on the Anita L. Davis, Agreement No.: 201026–002. exposure assessments described above Acting Chief, CERCLA Program Services Title: Port of New Orleans/P&O Ports for the safety determination of the U.S. Branch, Waste Management Division. Lease. population and on the completeness [FR Doc. 03–2769 Filed 2–4–03; 8:45 am] Parties: Port of New Orleans, P&O and reliability of the toxicity data, Bayer BILLING CODE 6560–50–P Corporation has concluded that the Ports Louisiana, Inc. dietary exposure estimates from all label Synopsis: The modification expands and pending uses of imidacloprid are the leased premises under the basic FEDERAL MARITIME COMMISSION 16.42% of the aPAD at the 99.9th lease. The additional space may be used percentile and 3.0% of the cPAD for the Notice of Agreement(s) Filed on an as-needed basis. most sensitive population subgroup, By Order of the Federal Maritime The Commission hereby gives notice children 1 to 6 years. Thus, Bayer Commission. Corportion has concluded that there is of the filing of the following a reasonable certainty that no harm will agreement(s) under the Shipping Act of Dated: January 31, 2003. result from aggregate exposure to 1984. Interested parties can review or Bryant L. VanBrakle, imidacloprid residues. obtain copies of agreements at the Secretary. Washington, DC offices of the [FR Doc. 03–2791 Filed 2–4–03; 8:45 am] F. International Tolerances Commission, 800 North Capitol Street, BILLING CODE 6730–01–P No Codex maximum residue levels NW., Room 940. Interested parties may have been established for residues of submit comments on an agreement to

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GENERAL SERVICES DEPARTMENT OF HEALTH AND Centers for Disease Control and ADMINISTRATION HUMAN SERVICES Prevention (CDC). Recent Federal policy initiatives have targeted the removal of Office of Management Services Centers for Disease Control and environmental barriers and increased Prevention access to assistive and universally Paper Requirement for Office of [60 Day–03–41] designed technologies in order to Personnel Management (OPM) increase participation in major life Standard Forms Proposed Data Collections Submitted activities by persons of all ages with for Public Comment and disabilities. Yet, few statistics are AGENCY: Office of Management Services, Recommendations available to quantify the potential GSA. demand for assistive technologies and In compliance with the requirement no criteria exist to evaluate the potential ACTION: Notice. of section 3506(c)(2)(A) of the impact of broadened access. Paperwork Reduction Act of 1995 for CDC is seeking OMB approval to SUMMARY: Currently the Office of opportunity for public comment on cognitively test and pilot a survey proposed data collection projects, the Personnel Management (OPM) requires instrument that collects information on Centers for Disease Control and that certain OPM promulgated Standard disabled persons’ access to, and use of, Prevention (CDC) will publish periodic Forms, when electronically generated, assistive technologies and summaries of proposed projects. To be reproduced on specified color paper. environmental modifications that can be request more information on the Although OPM prefers to receive the implemented in national health surveys. forms on colored paper, they are proposed projects or to obtain a copy of the data collection plans and This information will help policy waiving this requirement on makers and scientists understand the electronically generated forms. The instruments, call the CDC Reports Clearance Officer on (404) 498–1210. interface among disability, assistive following statement however, must Comments are invited on: (a) Whether devices, and environmental appear on these forms: ‘‘This is the the proposed collection of information modifications. Through a cooperative electronic version of the form.’’ is necessary for the proper performance agreement with the National Institute on For duplicated forms, individuals of the functions of the agency, including Aging, the Office of the Assistant should try to reproduce on the specified whether the information shall have Secretary for Planning and Evaluation colored paper. This will increase practical utility; (b) the accuracy of the has funded researchers at the Polisher processing time, but forms duplicated agency’s estimate of the burden of the Research Institute and Johns Hopkins University to develop the new measures on white paper will still be accepted. proposed collection of information; (c) ways to enhance the quality, utility, and to be tested. The testing will be FOR FURTHER INFORMATION CONTACT: Ms. clarity of the information to be conducted by the National Center for Barbara Williams, General Services collected; and (d) ways to minimize the Health Statistics with funding from the Administration, (202) 501–0581. burden of the collection of information Office of the Assistant Secretary for Planning and Evaluation, DHHS. DATES: Effective February 5, 2003. on respondents, including through the use of automated collection techniques Approximately 300 interviews will be Dated: January 27, 2003. or other forms of information conducted with adults with disabilities Barbara M. Williams, technology. Send comments to Anne living in the community. These Deputy Standard and Optional Forms O’Connor, CDC Assistant Reports interviews will be 45 minutes in length. Management Officer, General Services Clearance Officer, 1600 Clifton Road, To the extent possible, different modes Administration. MS–D24, Atlanta, GA 30333. Written of administration will be utilized (e.g. [FR Doc. 03–2809 Filed 2–4–03; 8:45 am] comments should be received within 60 in-person, telephone, or mixed) and racially diverse samples of persons with BILLING CODE 6820–34–M days of this notice. Proposed Project: Development of an disabilities in both rural and urban Assistive Technology and settings will be selected to maximize the Environmental Assessment Instrument sensitivity of the instrument across for National Surveys—New—National diverse populations. There is no cost to Center for Health Statistics (NCHS), the respondents other than their time.

Number of re- Average burden Respondents Number of sponses per re- per response Total burden (in respondents spondent (in hours) hours)

Adult with Disabilities ...... 300 1 45/60 225

Total ...... 225

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Dated: January 30, 2003. request more information on the Messages—New—National Center for Thomas Bartenfeld, proposed projects or to obtain a copy of HIV, STD, and TB Prevention Acting Associate Director for Policy, Planning the data collection plans and (NCHSTP), Centers for Disease Control and Evaluation, Centers for Disease Control instruments, call the CDC Reports and Prevention (CDC). This project and Prevention. Clearance Officer on (404) 498–1210. involves the development and cognitive [FR Doc. 03–2781 Filed 2–4–03; 8:45 am] Comments are invited on: (a) Whether testing of HIV prevention messages in BILLING CODE 4163–18–P the proposed collection of information the format of computerized brochures. is necessary for the proper performance The efficacy of various types of of the functions of the agency, including prevention messages will be evaluated DEPARTMENT OF HEALTH AND whether the information shall have in three experimental studies with HUMAN SERVICES practical utility; (b) the accuracy of the populations at risk of acquiring or agency’s estimate of the burden of the transmitting HIV. The studies will test Centers for Disease Control and proposed collection of information; (c) different ways of communicating, Prevention ways to enhance the quality, utility, and framing and presenting HIV prevention clarity of the information to be messages. Outcomes to be examined [60Day–03–40] collected; and (d) ways to minimize the include the extent to which the message Proposed Data Collections Submitted burden of the collection of information is considered acceptable, for Public Comment and on respondents, including through the comprehensible, and credible by the Recommendations use of automated collection techniques intended audience, as well as the extent or other forms of information to which the message influences In compliance with the requirement technology. Send comments to Anne knowledge, attitudes, and readiness or of Section 3506(c)(2)(A) of the O’Connor , CDC Assistant Reports intentions to reduce or eliminate risk Paperwork Reduction Act of 1995 for Clearance Officer, 1600 Clifton Road, behaviors. Data will be collected using opportunity for public comment on MS–D24, Atlanta, GA 30333. Written audio-computer assisted self-interviews. proposed data collection projects, the comments should be received within 60 The results will be used by CDC, and Centers for Disease Control and days of this notice. other organizations and researchers to Prevention (CDC) will publish periodic Proposed Project: Examining the inform prevention activities. There is no summaries of proposed projects. To Effectiveness of HIV Prevention cost to the respondents.

Average bur- No. of re- No. of re- den per re- Total burden Form spondents sponses per sponse (in (in hours) respondent hours)

Eligibility Screener ...... 1600 1 15/60 400 Message Complexity Study Questionnaire ...... 200 1 1 200 Message Framing Study Questionnaire ...... 600 1 1 600 Message Presentation Study Questionnaire ...... 450 1 1 450 Total ...... 1650

Dated: January 30, 2003. Time and Date: 9 a.m.–5 p.m., March 6, For Further Information Contact: Joseph M. Thomas Bartenfeld, 2003. Henderson, Executive Secretary, National Place: Centers for Disease Control and Acting Associate Director for Policy, Planning Advisory Committee on Children and Prevention, Roybal Campus; 1600 Clifton and Evaluation, Centers for Disease Control Terrorism, DHHS, CDC, 1600 Clifton Road, Road, NE., Building 2, Auditorium A, NE. M/S D–44, Atlanta, Georgia 30333. and Prevention. Atlanta, Georgia 30333. [FR Doc. 03–2782 Filed 2–4–03; 8:45 am] Status: Open to the public, limited only by Telephone 404/639–7405. BILLING CODE 4163–18–P the space available. The meeting room The Director, Management Analysis and accommodates approximately 50 people. Services Office, has been delegated the Purpose: The committee will make authority to sign Federal Register notices DEPARTMENT OF HEALTH AND recommendations to the Secretary of HHS on pertaining to announcements of meetings and HUMAN SERVICES matters related to bioterrorism and its impact other committee management activities, for on children. both the Centers for Disease Control and Centers for Disease Control and Matters to be Discussed: Agenda items will Prevention and the Agency for Toxic include an introduction of committee Substances and Disease Registry. Prevention members and discussion of the Secretary’s priorities, with discussions of National Advisory Committee on Dated: January 30, 2003. recommendations regarding: (a) The Joseph E. Salter, Children and Terrorism, Department of preparedness of the health care system to Health and Human Services, Centers respond to bioterrorism as it relates to Acting Director, Management Analysis and for Disease Control and Prevention: children; (b) needed changes to the health Services Office, Centers for Disease Control Meeting care and emergency medical service systems and Prevention. and emergency medical services protocols to [FR Doc. 03–2651 Filed 2–4–03; 8:45 am] In accordance with section 10(a)(2) of meet the special needs of children; and (c) BILLING CODE 4163–18–P the Federal Advisory Committee Act changes, if necessary, to the National (Pub. L. 92–463), the Centers for Disease Strategic Stockpile under section 121 of the Control and Prevention (CDC) Public Health Security and Bioterrorism announces the following Advisory Preparedness and Response Act of 2002 to meet the emergency health security of Committee meeting. children. Name: National Advisory Committee on Agenda items are subject to change as Children and Terrorism, HHS, CDC. priorities dictate.

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DEPARTMENT OF HEALTH AND Dated: January 30, 2003. health education, substance-specific applied HUMAN SERVICES Joseph E. Salter, research, emergency response, and preparation of toxicological profiles. Acting Director, Management Analysis and Purpose: This subcommittee is charged Centers for Disease Control and Services Office, Centers for Disease Control with providing advice and recommendations and Prevention. Prevention to the Director, CDC, and the Administrator [FR Doc. 03–2650 Filed 2–4–03; 8:45 am] ATSDR, regarding community concerns The National Center for Environmental BILLING CODE 4163–18–P pertaining to CDC’s and ATSDR’s public Health (NCEH); Meeting health activities and research at this DOE site. The purpose of this meeting is to The National Center for DEPARTMENT OF HEALTH AND provide a forum for community interaction Environmental Health (NCEH) of the HUMAN SERVICES and serve as a vehicle for community Centers for Disease Control and concerns to be expressed as advice and Prevention (CDC) announces the Centers for Disease Control and recommendations to CDC and ATSDR. following meeting. Prevention Matters to be Discussed: Agenda items include a Review of the History of the Name: Current Status of the Vessel Citizens Advisory Committee on Public Savannah River Site; an Advanced Technology Laboratory (ATL) Research Sanitation Program (VSP) and Experience-to- Health Service Activities and Research Date with Program Operations—Public Update; a Presentation on Radiological meeting between CDC and the cruise ship at Department of Energy (DOE) Sites: Monitoring by the Georgia Environmental industry, private sanitation consultants, and Savannah River Site Health Effects Protection Division; an update on the other interested parties. Subcommittee (SRSHES) National Institute of Occupational Safety and Health’s (NIOSH) Occupational Illness Time and Date: 9 a.m.-4 p.m., Tuesday, In accordance with section 10(a)(2) of March 11, 2003. Compensation Program and a NIOSH Health- Place: Auditorium, Port Everglades the Federal Advisory Committee Act Related Energy Research Branch Program Administration Building, 1850 Eller Drive, (Pub. L. 92–463), the Centers for Disease Update. Ft. Lauderdale, Florida 33316. Control and Prevention (CDC), and the Agenda items are subject to change as Status: Open to the public, limited by the Agency for Toxic Substances and priorities dictate. Contact Person for More Information: space available. The meeting room Disease Registry (ATSDR) announce the Phillip Green, Executive Secretary, Savannah accommodates approximately 100 people. following meeting. River Site Health Effects Subcommittee, Purpose: During the past 15 years, as part Name: Citizens Advisory Committee on Radiation Studies Branch, Division of of the restructured VSP, CDC has conducted Public Health Service Activities and Environmental Hazards and Health Effects, a series of public meetings with members of Research at Department of Energy (DOE) National Center for Environmental Health, the cruise ship industry, private sanitation Sites: Savannah River Site Health Effects CDC, 1600 Clifton Road, NE. (E–39), Atlanta, consultants, and other interested parties. Subcommittee (SRSHES). GA 30333, telephone: (404) 498–1800, fax: This meeting is a continuation of that Times and Dates: 8 a.m.—5 p.m., March (404) 498–1811. series of public meetings to discuss the 13, 2003. The Director, Management Analysis and current status of the VSP and experience-to- 8 a.m.—12:30 p.m, March 14, 2003. Services Office, has been delegated the date with program operations. Place: DoubleTree Guest Suites, 181 authority to sign Federal Register notices Matters to be Discussed: Agenda items will Church Street, Charleston, South Carolina pertaining to announcements of meetings and include a VSP update, 2002 program review, 29403, telephone: (843) 577–2644, fax: (843) other committee management activities for update on the implementation of the VSP 577–2697. both CDC and ATSDR. Operations Manual 2000, update on disease Status: Open to the public, limited only by Dated: January 30, 2003. surveillance and 2002 outbreak the space available. The meeting room investigations, and VSP training seminars. accommodates approximately 50 people. Joseph E. Salter, For a period of 15 days following the Background: Under a Memorandum of Acting Director, Management Analysis and meeting, through March 26, 2003, the official Understanding (MOU) signed in December Services Office, Centers for Disease Control record of the meeting will remain open so 1990 with DOE, and replaced by MOUs and Prevention. that additional materials or comments may signed in 1996 and 2000, the Department of [FR Doc. 03–2647 Filed 2–4–03; 8:45 am] Health and Human Services (HHS) was given be submitted to be made part of the record BILLING CODE 4163–18–P of the meeting. the responsibility and resources for Advanced registration for the meeting is conducting analytic epidemiologic investigations of residents of communities in encouraged. Please provide the following DEPARTMENT OF HEALTH AND information: Name, title, company name, the vicinity of DOE facilities, workers at DOE mailing address, telephone number, facsimile facilities, and other persons potentially HUMAN SERVICES exposed to radiation or to potential hazards number, and E-mail address to Angela Centers for Disease Control and Storms (770) 488–3141, or e-mail: from non-nuclear energy production use. [email protected]. HHS delegated program responsibility to Prevention CDC. FOR FURTHER INFORMATION CONTACT: In addition, a memo was signed in October Advisory Board on Radiation and David Forney, Chief, VSP, NCEH, CDC, 1990 and renewed in November 1992, 1996, Worker Health (ABRWH); Meeting 4770 Buford Highway, NE, M/S F–16, and in 2000, between ATSDR and DOE. The Atlanta, Georgia 30341–3724, telephone MOU delineates the responsibilities and ACTION: Publication of closed meeting (770) 488–7333, e-mail: procedures for ATSDR’s public health summary of the Advisory Board on [email protected]. activities at DOE sites required under Radiation and Worker Health (ABRWH), sections 104, 105, 107, and 120 of the National Institute for Occupational The Director, Management Analysis Comprehensive Environmental Response, Safety and Health (NIOSH). and Services Office, has been delegated Compensation, and Liability Act (CERCLA or the authority to sign Federal Register ‘‘Superfund’’). These activities include health Committee Purpose: This board is notices pertaining to announcements of consultations and public health assessments charged with (a) providing advice to the meetings and other committee at DOE sites listed on, or proposed for, the Secretary, HHS on the development of Superfund National Priorities List and at management activities, for both the sites that are the subject of petitions from the guidelines under Executive Order Centers for Disease Control and public; and other health-related activities 13179; (b) providing advice to the Prevention and the Agency for Toxic such as epidemiologic studies, health Secretary, HHS on the scientific validity Substances and Disease Registry. surveillance, exposure and disease registries, and quality of dose reconstruction

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efforts performed for this Program; and • Member of Board to be appointed to Dated: January 30, 2003. (c) upon request by the Secretary, HHS, the Technical Review Panel for this Joseph E. Slater, advise the Secretary on whether there is procurement. Acting Director, Management Analysis and a class of employees at any Department Dr. Paul Ziemer adjourned the closed Services Office, Centers for Disease Control and Prevention. of Energy facility who were exposed to session of the ABRWH meeting at 11:18 radiation but for whom it is not feasible [FR Doc. 03–2652 Filed 2–4–03; 8:45 am] a.m. with no further business being to estimate their radiation dose, and on BILLING CODE 4163–19–P conducted by the ABRWH. whether there is reasonable likelihood that such radiation doses may have SUPPLEMENTARY INFORMATION: The endangered the health of members of Advisory Board on Radiation and DEPARTMENT OF HEALTH AND this class. Worker Health (‘‘the Board’’) was HUMAN SERVICES Background: The Advisory Board on established under the Energy Employees Radiation and Worker Health met on Centers for Medicare and Medicaid Occupational Illness Compensation Services January 8, 2003, in closed session to Program Act (EEOICPA) of 2000 to discuss the Proposed Independent advise the President, through the [Document Identifier: CMS–10083] Government Cost Estimate (IGCE) for a Secretary of Health and Human Services contract. This contract, once awarded, Emergency Clearance: Public (HHS), on a variety of policy and Information Collection Requirements will provide technical support to assist technical functions required to the Board in fulfilling its statutory duty Submitted to the Office of Management implement and effectively manage the to advise the Secretary of Health and and Budget (OMB) new compensation program. Key Human Services regarding the dose functions of the Board include AGENCY: Centers for Medicare and reconstruction efforts under the Energy providing advice on the development of Medicaid Services. Employees Occupational Illness In compliance with the requirement Compensation Program Act. A probability of causation guidelines which have been promulgated by HHS of section 3506(c)(2)(A) of the Determination to Close the meeting was Paperwork Reduction Act of 1995, the approved and published, as required by as a final rule, advice on methods of dose reconstruction which have also Centers for Medicare and Medicaid the Federal Advisory Committee Act. Services (CMS) (formerly known as the been promulgated by HHS as a final Summary of the Meeting: Attendance Health Care Financing Administration rule, evaluation of the scientific validity was as follows: (HCFA)), Department of Health and Board Members: and quality of dose reconstructions Human Services, is publishing the Paul L. Ziemer, Ph.D., Chair conducted by the National Institute for following summary of proposed Larry J. Elliott, Executive Secretary Occupational Safety and Health collections for public comment. Henry A. Anderson, M.D., Member (NIOSH) for qualified cancer claimants, Interested persons are invited to send Antonio Andrade, Ph.D., Member and advice on the addition of classes of comments regarding this burden Roy L. DeHart, M.D., M.P.H., Member workers to the Special Exposure Cohort. estimate or any other aspect of this Richard L. Espinosa, Member In December 2000 the President collection of information, including any Michael H. Gibson, Member delegated responsibility for funding, of the following subjects: (1) The Mark A. Griffon, Member staffing, and operating the Board to necessity and utility of the proposed James M. Melius, M.D., Dr.P.H., Member HHS, which subsequently delegated this information collection for the proper Robert W. Presley, Member performance of the agency’s functions; Genevieve S. Roessler, Ph.D., Member authority to the CDC. NIOSH implements this responsibility for CDC. (2) the accuracy of the estimated NIOSH Staff: The charter was signed on August 3, burden; (3) ways to enhance the quality, Jim Neton 2001 and in November, 2001, the utility, and clarity of the information to David Naimon President completed the appointment of be collected; and (4) the use of Liz Homoki-Titus an initial roster of 10 Board members. In automated collection techniques or Martha DiMuzio other forms of information technology to April, and again in August 2002, the Cori Homer minimize the information collection President appointed additional Ray S. Green, Court Recorder. burden. members to ensure more balanced We are, however, requesting an Summary/Minutes representation on the Board. emergency review of the information Dr. Ziemer called to order the FOR FURTHER INFORMATION CONTACT: collection referenced below. In Advisory Board on Radiation and Larry Elliott, Executive Secretary, compliance with the requirement of Worker Health (ABRWH) in closed ABRWH, NIOSH, CDC, 4676 Columbia section 3506(c)(2)(A) of the Paperwork session on January 8, 2003 at 9:45 a.m. Parkway, Cincinnati, Ohio 45226, Reduction Act of 1995, we have The purpose of the closed meeting was telephone 513/841–4498, fax 513/458– submitted to the Office of Management to develop the Independent Government 7125. and Budget (OMB) the following Cost Estimate for a contract to provide requirements for emergency review. We technical support to the ABRWH review The Director, Management Analysis are requesting an emergency review of completed dose reconstructions. and Services Office, has been delegated because the collection of this Dr. Ziemer noted that Ms. Wanda the authority to sign Federal Register information is needed before the Munn and Mr. Leon Owens were not notices pertaining to announcements of expiration of the normal time limits available to attend and could not be meetings and other committee under OMB’s regulations at 5 CFR part connected via conference call due to management activities for both the 1320. This is necessary to ensure telephone line security issues. Centers for Disease Control and compliance with the Trade Act of 2002. General topics discussed: Prevention and the Agency for Toxic We cannot reasonably comply with the • Closed session procedures. Substances and Disease Registry. normal clearance procedures because • Independent Government Cost President of an unanticipated event and Estimate. public harm.

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We are requesting emergency Number of Respondents: 16,500; Total ACTION: Notice. clearance of a pilot study designed to Annual Responses: 16,500; Total elicit information from discharged Annual Hours: 5,500. SUMMARY: The Food and Drug patients concerning their hospital/acute We have submitted a copy of this Administration (FDA) is announcing the care experience. Given the current notice to OMB for its review of these availability of the guidance entitled momentum, enthusiasm and support information collections. A notice will be ‘‘Class II Special Controls Guidance expressed by hospitals and the hospital published in the Federal Register when Document: Antimicrobial Susceptibility associations for public reporting of approval is obtained. Test (AST) Systems; Guidance for hospital quality information, it is To obtain copies of the supporting Industry and FDA.’’ This guidance important to provide the tools needed statement and any related forms for the document was developed as a special for reliable and valid data collection as proposed paperwork collections control guidance to support the soon as possible. CMS would like to referenced above, access CMS’ Web Site reclassification of the fully automated take advantage of the opportunity of address at http://cms.hhs.gov/ short-term incubation cycle testing the H–CAHPS instrument in the regulations/pra/default.asp or E-mail antimicrobial susceptibility device from Hospital State Pilots that has just your request, including your address, class III to class II. Elsewhere in this started. It is important to provide phone number, OMB number, and CMS issue of the Federal Register, FDA is hospitals a standard tool and data document identifier, to publishing a final rule reclassifying the collection methodology by July/August [email protected], or call the Reports fully automated short-term incubation 2003 to support this joint initiative. We Clearance Office on (410) 786–1326. cycle antimicrobial susceptibility device are interested in receiving comments on Interested persons are invited to send from class III to class II. the pilot during the course of the pilot, comments regarding the burden or any DATES: Submit written or electronic as well as during the comment period other aspect of these collections of comments on agency guidances at any mentioned below. However, those information requirements. However, as time. noted above, in order to be considered received after the close of the comment ADDRESSES: Submit written requests for period will not be included in the in the OMB approval process, comments ″ on these information collection and single copies on a 3.5 diskette of the materials that OMB reviews in guidance entitled ‘‘Class II Special determining whether to approve the recordkeeping requirements must be mailed and/or faxed to the designees Controls Guidance Document: collection. Antimicrobial Susceptibility Test (AST) CMS is requesting OMB review and referenced below, by February 20, 2003. Systems; Guidance for Industry and approval of this collection by February Centers for Medicare and Medicaid FDA’’ to the Division of Small 21, 2003, with a 180-day approval Services, Office of Strategic Manufacturers, International, and period. Written comments and Operations and Regulatory Affairs, Consumer Assistance (HFZ–220), Center recommendations will be accepted from Division of Regulations Development for Devices and Radiological Health the public if received by the individuals and Issuances, Attn: Reports (CDRH), Food and Drug Administration, designated below by February 20, 2003. Clearance Officer, Room C5–16–03, 1350 Piccard Dr., Rockville, MD 20850. During this 180-day period, we will 7500 Security Boulevard, Baltimore, Send two self-addressed adhesive labels publish a separate Federal Register MD 21244–1850. Fax Number: (410) to assist that office in processing your notice announcing the initiation of an 786–3064. Attn: Julie Brown; and extensive 60-day agency review and Office of Information and Regulatory request, or fax your request to 301–443– public comment period on these Affairs, Office of Management and 8818. Submit written comments requirements. We will submit the Budget, Room 10235, New Executive concerning this guidance to the Dockets requirements for OMB review and an Office Building, Washington, DC Management Branch (HFA–305), Food extension of this emergency approval. 20503, Fax Number: (202) 395–6974 and Drug Administration, 5630 Fishers Type of Information Collection or (202) 395–5167, Attn: Brenda Lane, rm. 1061, Rockville, MD 20852. Request: New collection; Title of Aguilar, CMS Desk Officer. Comments should be identified with the docket number found in brackets in the Information Collection: Pilot Test of Dated: January 30, 2003. Hospital CAHPS Survey; Form No.: heading of this document. Submit John P. Burke, III, CMS–10083 (OMB #0938–XXXX); Use: electronic comments to http:// CMS has requested a hospital survey as CMS Reports Clearance Officer, CMS, Office www.fda.gov//dockets/ecomments. See of Information Services, Security and a way of providing comparison the SUPPLEMENTARY INFORMATION section Standards Group, Division of CMS Enterprise for information on electronic access to information for consumers who need to Standards. select a hospital and as a way of the guidance. [FR Doc. 03–2788 Filed 2–4–03; 8:45 am] encouraging accountability of hospitals FOR FURTHER INFORMATION CONTACT: for the care they provide. With a BILLING CODE 4120–03–P Freddie M. Poole, Center for Devices standardized instrument consumers will and Radiological Health (HFZ–440), be able to make ‘‘apples to apples’’ DEPARTMENT OF HEALTH AND Food and Drug Administration, 9200 comparisons among hospitals, allow HUMAN SERVICES Corporate Blvd., Rockville, MD 20850, hospitals and hospital chains to self 301–594–2096. compare, and provide state oversight Food and Drug Administration SUPPLEMENTARY INFORMATION: officials with useful data. A standardized instrument, developed [Docket No. 00D–0109] I. Background under the CAHPS umbrella, will Medical Devices: Class II Special This guidance document was produce a reliable and valid instrument Controls Guidance Document: developed as a special control guidance that any organization can use at no cost Antimicrobial Susceptibility Test to support the reclassification of the to obtain patient data about hospital Systems; Guidance for Industry and fully automated short-term incubation experiences. This tool will be adopted FDA; Availability cycle antimicrobial susceptibility device by the National Hospital Voluntary from class III to class II. Elsewhere in Initiative; Frequency: Once; Affected AGENCY: Food and Drug Administration, this issue of the Federal Register, FDA Public: Individuals or households; HHS. is publishing a final rule to reclassify

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this type of device from class III to class some other way provides equivalent DEPARTMENT OF HEALTH AND II. This guidance serves to update the assurances of safety and effectiveness. HUMAN SERVICES information provided in the draft guidance entitled ‘‘Guidance on Review III. Electronic Access Health Resources and Services Administration Criteria for Assessment of Antimicrobial In order to receive ‘‘Class II Special Susceptibility Devices’’ (65 FR 12271, Controls Guidance Document: National Advisory Committee on Rural March 8, 2000). FDA considered the Antimicrobial Susceptibility Test (AST) comments it received and made changes Health and Human Services; Notice of Systems; Guidance for Industry and to the guidance as a result, including the Meeting FDA,’’ you may either send a fax request revised document title to identify this to 301–443–8818 to receive a hard copy In accordance with section 10(a)(2) of guidance as a special control. FDA the Federal Advisory Committee Act believes that special controls, when of the document, or send an e-mail to (Pub. L. 92–463), notice is hereby given combined with the general controls, will [email protected] to request a that the following committee will be sufficient to provide reasonable hard copy or electronic copy. Please use convene its forty-third meeting. The assurance of the safety and effectiveness the document number (631) to identify meeting will be open to the public. of the fully automated short-term the guidance you are requesting. incubation cycle antimicrobial Persons interested in obtaining a copy Name: National Advisory Committee on susceptibility device. After the device is of the guidance may also do so using the Rural Health and Human Services. reclassified, a manufacturer who Date and Time: March 2, 2003, 2 p.m.–5 Internet. CDRH maintains an entry on p.m.; March 3, 2003, 8:30 a.m.–5 p.m.; March intends to market a device of this the Internet for easy access to 4, 2003, 8:30 a.m.–3 p.m. generic type must: (1) Comply with the information including text, graphics, Place: Grand Hyatt Washington, 1000 H general controls of the Federal Food, and files that may be downloaded to a Street, NW., Washington, DC 20001–4520. Drug, and Cosmetic Act, including the personal computer with Internet access. Purpose: The National Advisory 510(k) requirements described in 21 Updated on a regular basis, the CDRH Committee on Rural Health and Human CFR 807.81, (2) address the specific Services provides advice and home page includes the civil money recommendations to the Secretary with risks to health associated with the penalty guidance documents package, antimicrobial susceptibility test system, respect to the delivery, research, device safety alerts, Federal Register and (3) receive a substantial equivalence development and administration of health reprints, information on premarket and human services in rural areas. determination from FDA prior to submissions (including lists of approved Agenda: Sunday afternoon, March 2, at 2 marketing the device. applications and manufacturers’ p.m., the Chairperson, the Honorable David This guidance document identifies addresses), small manufacturers’ Beasley, will open the meeting and welcome the classification, product code, and the Committee. The first session will open assistance, information on video classification definition for fully with a discussion of the Meeting Agenda and automated short-term incubation cycle conferencing and electronic Goals by the Office of Rural Health Policy antimicrobial susceptibility devices. In submissions, Mammography Matters, (ORHP) Acting Deputy Director, Mr. Tom addition, it identifies the risks to health and other device-oriented information. Morris. This will be followed by a discussion of the Committee’s role in the Department, and serves as a special control that, The CDRH home page may be accessed at http://www.fda.gov/cdrh. Guidance administrative business, and the Committee’s when followed and combined with the 2003 Agenda. general controls of the act, will be documents are also available on the Monday morning, March 3, at 8:30 a.m. the sufficient to address the risks associated Dockets Management Branch Internet session will open with a presentation by the with this generic device type and lead site at http://www.fda.gov/ohrms/ Deputy Administrator, Health Resources and to a timely review and clearance of a dockets. Services Administration, and an update by premarket notification under section ORHP. After the break, the Committee will IV. Comments 510(k) of the act (21 U.S.C. 360(k)). discuss and approve the 2002 projects, the report on rural health care quality and the II. Significance of Guidance Interested persons may submit to white paper on the rural workforce. After Dockets Management Branch (see lunch, there will be presentations on three This guidance is being issued ADDRESSESS) written or comments topics relating to the Committee’s 2003 consistent with FDA’s good guidance regarding this guidance. Two copies of workplan. practices regulation (21 CFR 10.115). any mailed comments, are to be The final session will be convened This guidance represents the agency’s submitted except that individuals may Tuesday morning, March 4, at 8:30 a.m. The current thinking on AST systems. It Committee will discuss the strategic plan, submit one copy. Comments are to be future agenda, and the selection of a Steering does not create or confer any rights for identified with the docket number or on any person and does not operate Committee. The strategic planning will found in brackets in the heading of this continue after lunch. The meeting will to bind FDA or the public. An document. Electronic comments may be conclude with a discussion of the June and alternative approach may be used if submitted at http://www.fda.gov/ September meetings. The meeting will be such approach satisfies the applicable adjourned at 3 p.m. statutes and regulations. Following the opacom/backgrounders/voice.html. The effective date of the final classification guidance document and received FOR FURTHER INFORMATION CONTACT: rule (published elsewhere in this issue comments may be seen in the Dockets Anyone requiring information regarding of the Federal Register), any firm Management Branch between 9 a.m. and the Committee should contact Tom submitting a 510(k) premarket 4 p.m., Monday through Friday. Morris, MPA, Executive Secretary, notification for a fully automated short- Dated: January 9, 2003. National Advisory Committee on Rural term incubation cycle antimicrobial Linda S. Kahan, Health and Human Services, Health susceptibility device will need to Resources and Services Administration, Deputy Director, Center for Devices and address the issues covered in the special Radiological Health. Parklawn Building, Room 9A–55, 5600 control guidance. However, the firm Fishers Lane, Rockville, MD 20857, [FR Doc. 03–2657 Filed 2–4–03; 8:45 am] need only show that its device meets the telephone (301) 443–0835, Fax (301) recommendations of the guidance or in BILLING CODE 4160–01–S 443–2803.

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Persons interested in attending any Secretary has delegated his petitions listed below. Any person portion of the meeting should contact responsibility under the Program to choosing to do so should file an original Michele Pray-Gibson, Office of Rural HRSA. The Court is directed by statute and three (3) copies of the information Health Policy (ORHP), telephone (301) to appoint special masters who take with the Clerk of the U.S. Court of 443–0835. The Committee meeting evidence, conduct hearings as Federal Claims at the address listed agenda will be posted on ORHP’s Web appropriate, and make initial decisions above (under the heading ‘‘For Further site http://www.ruralhealth.hrsa.gov. as to eligibility for, and amount of, Information Contact’’), with a copy to Dated: January 29, 2003. compensation. HRSA addressed to Director, Division of A petition may be filed with respect Jane M. Harrison, Vaccine Injury Compensation Program, to injuries, disabilities, illnesses, Office of Special Programs, 5600 Fishers Director, Division of Policy Review and conditions, and deaths resulting from Coordination. Lane, Room 16C–17, Rockville, MD vaccines described in the Vaccine Injury [FR Doc. 03–2659 Filed 2–4–03; 8:45 am] 20857. The Court’s caption (Petitioner’s Table (the Table) set forth at Section Name v. Secretary of Health and Human BILLING CODE 4165–15–P 2114 of the PHS Act or as set forth at Services) and the docket number 42 CFR 100.3, as applicable. This Table assigned to the petition should be used DEPARTMENT OF HEALTH AND lists for each covered childhood vaccine as the caption for the written HUMAN SERVICES the conditions which will lead to submission. compensation and, for each condition, Chapter 35 of title 44, United States Health Resources and Services the time period for occurrence of the Code, related to paperwork reduction, Administration first symptom or manifestation of onset does not apply to information required or of significant aggravation after for purposes of carrying out the National Vaccine Injury Compensation vaccine administration. Compensation Program. Program; List of Petitions Received may also be awarded for conditions not listed in the Table and for conditions List of Petitions AGENCY: Health Resources and Services that are manifested after the time Administration, HHS. 1. Carla Lowry on behalf of Tyler Lowry; periods specified in the Table, but only Boston, Massachusetts; Court of ACTION: Notice. if the petitioner shows that the Federal Claims Number 02–0753V SUMMARY: The Health Resources and condition was caused by one of the 2. Scott Bagby on behalf of Trenton Services Administration (HRSA) is listed vaccines. Bagby; Adrian, Missouri; Court of publishing this notice of petitions Section 2112(b)(2) of the PHS Act, 42 Federal Claims Number 02–0754V received under the National Vaccine U.S.C. 300aa–12(b)(2), requires that the 3. Allison and Kenneth Byrd on behalf Injury Compensation Program (‘‘the Secretary publish in the Federal of Noah Byrd; California, Maryland; Program’’), as required by Section Register a notice of each petition filed. Court of Federal Claims Number 02– 2112(b)(2) of the Public Health Service Set forth below is a list of petitions 0755V (PHS) Act, as amended. While the received by HRSA on July 1, 2002, 4. Barbara and William Whitman on Secretary of Health and Human Services through September 30, 2002. behalf of Christian Whitman; Taylor, is named as the respondent in all Section 2112(b)(2) also provides that Pennsylvania; Court of Federal Claims proceedings brought by the filing of the special master ‘‘shall afford all Number 02–0763V petitions for compensation under the interested persons an opportunity to 5. Kimberly Brox on behalf of Mary Kate Program, the United States Court of submit relevant, written information’’ Brox; Boston, Massachusetts; Court of Federal Claims is charged by statute relating to the following: Federal Claims Number 02–0765V 1. The existence of evidence ‘‘that with responsibility for considering and 6. Kathy Maynard on behalf of Mikayla there is not a preponderance of the acting upon the petitions. Maynard; Lecanto, Florida; Court of evidence that the illness, disability, FOR FURTHER INFORMATION CONTACT: Federal Claims Number 02–0766V For injury, condition, or death described in information about requirements for the petition is due to factors unrelated 7. Sandra Friedman; Shorewood, filing petitions, and the Program in to the administration of the vaccine Wisconsin; Court of Federal Claims general, contact the Clerk, United States described in the petition,’’ and Number 02–0770V Court of Federal Claims, 717 Madison 2. Any allegation in a petition that the 8. Rhonda and Robert Evans on behalf Place, NW., Washington, DC 20005; petitioner either: of Kimberly Ann Evans; Fayetteville, (202) 219–9657. For information on (a) ‘‘Sustained, or had significantly North Carolina; Court of Federal HRSA’s role in the Program, contact the aggravated, any illness, disability, Claims Number 02–0771V Director, National Vaccine Injury injury, or condition not set forth in the 9. Lisa and John Hedin on behalf of Compensation Program, 5600 Fishers Table but which was caused by’’ one of Jason Hedin; Austell, Georgia; Court Lane, Room 16C–17, Rockville, MD the vaccines referred to in the Table, or of Federal Claims Number 02–0774V 20857; (301) 443–6593. (b) ‘‘Sustained, or had significantly 10. AnnMarie and H. Dean Moore on SUPPLEMENTARY INFORMATION: The aggravated, any illness, disability, behalf of Kathryn Moore; Program provides a system of no-fault injury, or condition set forth in the Philadelphia, Pennsylvania; Court of compensation for certain individuals Table the first symptom or Federal Claims Number 02–0777V who have been injured by specified manifestation of the onset or significant 11. Susan Iannuzzi on behalf of Peter childhood vaccines. Subtitle 2 of Title aggravation of which did not occur Iannuzzi; Boston, Massachusetts; XXI of the PHS Act, 42 U.S.C. 300aa– within the time period set forth in the Court of Federal Claims Number 02– 10 et seq., provides that those seeking Table but which was caused by a 0780V compensation are to file a petition with vaccine’’ referred to in the Table. 12. Alyson Feinberg on behalf of Jacob the U.S. Court of Federal Claims and to This notice will also serve as the Feinberg; Boston, Massachusetts; serve a copy of the petition on the special master’s invitation to all Court of Federal Claims Number 02– Secretary of Health and Human interested persons to submit written 0781V Services, who is named as the information relevant to the issues 13. Charles Wall on behalf of respondent in each proceeding. The described above in the case of the Christopher Wall; Boston,

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Massachusetts; Court of Federal Massachusetts; Court of Federal 52. Jennifer Larson on behalf of Caden Claims Number 02–0782V Claims Number 02–0813V Larson; Boston, Massachusetts; Court 14. Charles Wall on behalf of Brandon 33. Kimberlene Cuttler on behalf of of Federal Claims Number 02–0833V Wall; Boston, Massachusetts; Court of Sarah Cuttler; Boston, Massachusetts; 53. Julie Johnston on behalf of Hannah Federal Claims Number 02–0783V Court of Federal Claims Number 02– Johnston; Boston, Massachusetts; 15. Joanella Cannell on behalf of 0814V Court of Federal Claims Number 02– Margaret Cannell; Vienna, Virginia; 34. Margaret Bowman on behalf of 0834V Court of Federal Claims Number 02– Joshua Bowman; Boston, 54. Bryan Jaeger on behalf of Brandon 0785V Massachusetts; Court of Federal Jaeger; Boston, Massachusetts; Court 16. Sha and Jason Hurst on behalf of Claims Number 02–0815V of Federal Claims Number 02–0835V Sarah Lynn Hurst; Montgomery, 35. Wendy Barry on behalf of Max 55. Kathleen Billete-Saul on behalf of Alabama; Court of Federal Claims Barry; Boston, Massachusetts; Court of Patrick Billete; Boston, Massachusetts; Number 02–0786V Federal Claims Number 02–0816V Court of Federal Claims Number 02– 17. Elizabeth and John Setnes on behalf 36. Amy Thames on behalf of Moses 0836V of Austin J. Setnes; Shakopee, Thames; Boston, Massachusetts; Court 56. Bryan Jaeger on behalf of Cameron Minnesota; Court of Federal Claims of Federal Claims Number 02–0817V Jaeger; Boston, Massachusetts; Court Number 02–0791V 37. Cassie Stoner on behalf of Carson of Federal Claims Number 02–0837V 18. Peyton Kotz on behalf of Jennifer Stoner; Boston, Massachusetts; Court 57. Doug Hamilton and Amy Currie on Kotz; LeGrande, Oregon; Court of of Federal Claims Number 02–0818V behalf of Edgar Hamilton; Melbourne, Federal Claims Number 02–0798V 38. Kim Stewart on behalf of Heath Florida; Court of Federal Claims 19. Jane Lutz; Pittsburgh, Pennsylvania; Stewart; Boston, Massachusetts; Court Number 02–0838V Court of Federal Claims Number 02– of Federal Claims Number 02–0819V 58. Lucine and George Hawn on behalf 0799V 39. Kerri Speights on behalf of Brandon of Samantha Hawn; Alexandria, 20. Michelle Iddings on behalf of Carson Speights; Boston, Massachusetts; Virginia; Court of Federal Claims Iddings; Boston, Massachusetts; Court Court of Federal Claims Number 02– Number 02–0841V of Federal Claims Number 02–0801V 0820V 59. Nancy and John Decharinte on 21. Jennifer Hillman on behalf of 40. Lynn Sparling on behalf of Deanna behalf of Alex Decharinte; Houston, Emmanuel Hillman; Boston, Sparling; Boston, Massachusetts; Texas; Court of Federal Claims Massachusetts; Court of Federal Court of Federal Claims Number 02– Number 02–0842V 60. Nancy and John Decharinte on Claims Number 02–0802V 0821V 22. Christina Hamilton on behalf of behalf of Kevin Decharinte; Houston, 41. Jennifer Shearer on behalf of Dean Michael Hamilton; Boston, Texas; Court of Federal Claims Shearer; Boston, Massachusetts; Court Massachusetts; Court of Federal Number 02–0843V of Federal Claims Number 02–0822V Claims Number 02–0803V 61. Maryann and Juan Garcia on behalf 42. Richard Schultz on behalf of 23. Melanie Gorneault on behalf of Ryan of Jared Adam Garcia; Houston, Andreas Schultz; Boston, Gorneault; Boston, Massachusetts; Texas; Court of Federal Claims Massachusetts; Court of Federal Court of Federal Claims Number 02– Number 02–0844V Claims Number 02–0823V 0804V 62. Patti and Gary Journey on behalf of 24. Tiffany Fleming on behalf of Connor 43. Christina Schack on behalf of Dylan Drew Journey; Houston, Texas; Court Fleming; Boston, Massachusetts; Schack; Boston, Massachusetts; Court of Federal Claims Number 02–0845V Court of Federal Claims Number 02– of Federal Claims Number 02–0824V 63. Lela Elizabeth Lansaw on behalf of 0805V 44. Laura Santos on behalf of Phillip Eric Gage Lansaw; Houston, Texas; 25. Nancy Flaherty on behalf of Kaitlin Santos; Boston, Massachusetts; Court Court of Federal Claims Number 02– Flaherty; Boston, Massachusetts; of Federal Claims Number 02–0825V 0846V Court of Federal Claims Number 02– 45. Elsie Russell on behalf of Clay 64. Maria and Antonio Longoria on 0806V Russell; Boston, Massachusetts; Court behalf of Brian Longoria; Houston, 26. Heather Flaherty on behalf of Aidan of Federal Claims Number 02–0826V Texas; Court of Federal Claims Flaherty; Boston, Massachusetts; 46. Sherry Putz on behalf of Brent Putz; Number 02–0847V Court of Federal Claims Number 02– Boston, Massachusetts; Court of 65. Sandi and Gregory Peerman on 0807V Federal Claims Number 02–0827V behalf of Bret Peerman; Houston, 27. Alice Fitzmorris on behalf of 47. Jess Pawlak on behalf of Trevor Texas; Court of Federal Claims Andrew Fitzmorris; Boston, Pawlak; Boston, Massachusetts; Court Number 02–0848V Massachusetts; Court of Federal of Federal Claims Number 02–0828V 66. Mary and Curtis Richards on behalf Claims Number 02–0808V 48. Ginger McGrady on behalf of Ethan of Leah Richards; Houston, Texas; 28. Katherine Fontanez on behalf of McGrady; Boston, Massachusetts; Court of Federal Claims Number 02– Matteo Figueroa; Boston, Court of Federal Claims Number 02– 0849V Massachusetts; Court of Federal 0829V 67. Diane and Shawn Sullivan on behalf Claims Number 02–0809V 49. Susan McGlone on behalf of Ty of Dylan Sullivan; Houston, Texas; 29. Denise English on behalf of Jack McGlone; Boston, Massachusetts; Court of Federal Claims Number 02– English; Boston, Massachusetts; Court Court of Federal Claims Number 02– 0850V of Federal Claims Number 02–0810V 0830V 68. Amy McCabe and Charles Tucker, Jr. 30. Carmen Beniquez on behalf of Kyle 50. Julie Maryjanowski on behalf of on behalf of Charles Tucker, III; Downs; Boston, Massachusetts; Court William Maryjanowski; Boston, Houston, Texas; Court of Federal of Federal Claims Number 02–0811V Massachusetts; Court of Federal Claims Number 02–0851V 31. Heather Dillon on behalf of David Claims Number 02–0831V 69. Joann and Johnny Vega on behalf of Dillon; Boston, Massachusetts; Court 51. Wendie Mancuso on behalf of Daniel Amber Vega; Houston, Texas; Court of of Federal Claims Number 02–0812V Mancuso; Boston, Massachusetts; Federal Claims Number 02–0852V 32. Stacy Daniel on behalf of Court of Federal Claims Number 02– 70. Laurie Ann Caballerio on behalf of Christopher Daniel; Boston, 0832V Michael A. Zendejas-Lanpher;

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Houston, Texas; Court of Federal 89. Broderick Leonard and Tamara 107. Judy and Gary Johnson on behalf of Claims Number 02–0853V Tolbert on behalf of Broderick Tyren Stefan Ray Johnson; Hayward, 71. Andrea Garbutt and Clifford Ellison Leonard; Montgomery, Alabama; California; Court of Federal Claims on behalf of Kendal Ellison; Houston, Court of Federal Claims Number 02– Number 02–0897V Texas; Court of Federal Claims 0874V 108. Connie and Peter Koehn on behalf Number 02–0854V 90. Melissa and James Gray on behalf of of Joseph Koehn; Minneapolis, 72. Delana Dee and Cary Paul Wilson on Tanner Gray; Fayetteville, North Minnesota; Court of Federal Claims behalf of Robert Wilson; Houston, Carolina; Court of Federal Claims Number 02–0899V Texas; Court of Federal Claims Number 02–0875V 109. Laneen and Cornelius Graham on Number 02–0855V 91. Sharmaine and David Brown on behalf of Cornelius Stefon Graham; 73. Janet Abruzzo on behalf of Anna behalf of Marcus Brown; Watertown, Rockingham, North Carolina; Court of Rose Abruzzo; Boston, Massachusetts; New York; Court of Federal Claims Federal Claims Number 02–0900V Court of Federal Claims Number 02– Number 02–0876V 110. Jennifer Reno on behalf of Matthew 0857V 92. Virginia Hall and Thurman Richard Reno; Boston, Massachusetts; Court of 74. Kelly Todd on behalf of Kyle Todd; on behalf of Joshua Dahles Hall; Federal Claims Number 02–0901V Boston, Massachusetts; Court of Salisbury, North Carolina; Court of 111. Deborah Martin on behalf of Ryan Federal Claims Number 02–0858V Federal Claims Number 02–0877V Soper; Boston, Massachusetts; Court 75. Angela Jones on behalf of Langston 93. Amy and Timothy Blankenbeckler of Federal Claims Number 02–0902V Jones; Boston, Massachusetts; Court of on behalf of Tanner Lee 112. Isaak Tiske on behalf of Clarence Federal Claims Number 02–0859V Blankenbeckler; Salisbury, North Tiske; Boston, Massachusetts; Court of 76. Nancy Galgano on behalf of Carmen Carolina; Court of Federal Claims Federal Claims Number 02–0903V Galgano; Boston, Massachusetts; Number 02–0878V 113. Rebecca Grimes on behalf of Joshua Court of Federal Claims Number 02– 94. Tara Bullard on behalf of Nicole Grimes; Boston, Massachusetts; Court 0860V Taylor Smith; Senatobia, Mississippi; of Federal Claims Number 02–0904V 77. Tricia Hasbrook on behalf of Arnold Court of Federal Claims Number 02– 114. Rebecca Grimes on behalf of John Hasbrook; Boston, 0881V Nathan Grimes; Boston, Massachusetts; Court of Federal 95. Annie Wiggins on behalf of Aristotle Massachusetts; Court of Federal Claims Number 02–0861V Tellis; Alexandria, Virginia; Court of Claims Number 02–0905V 78. Marc Gamberdella on behalf of Federal Claims Number 02–0882V 115. Fern Henderson on behalf of William Henderson; Boston, Genaro Gamberdella; Boston, 96. Namuliza and Bofotola Akemba on Massachusetts; Court of Federal Massachusetts; Court of Federal behalf of Esha Akemba; Alexandria, Virginia; Court of Federal Claims Claims Number 02–0906V Claims Number 02–0862V 116. Edward Sollinger on behalf of Julia 79. Lawrence Smith on behalf of Logan Number 02–0883V 97. Pamela and Daniel Korpal on behalf Sollinger; Boston, Massachusetts; Smith; Boston, Massachusetts; Court of William Palmer Korpal; Court of Federal Claims Number 02– of Federal Claims Number 02–0863V Alexandria, Virginia; Court of Federal 0907V 80. Malkah Pessel-Berger and Aryeh 117. Jennifer McKean on behalf of Ryan Berger on behalf of Chana Rochel Claims Number 02–0884V 98. Ernest Pugh and Linda Davis on McKean; Boston, Massachusetts; Berger; Brooklyn, New York; Court of behalf of Ernest Pugh, IV; Gretna, Court of Federal Claims Number 02– Federal Claims Number 02–0865V Louisiana; Court of Federal Claims 0908V 81. Karen Meenan on behalf of Chelsea Number 02–0885V 118. Michelle Kwiatkowski on behalf of Meenan; Acton, Massachusetts; Court 99. Sheri and Cary Steffens on behalf of Jonathan Kwiatkowski; Boston, of Federal Claims Number 02–0866V Donovan Steffens; Philadelphia, Massachusetts; Court of Federal 82. Shari and Jeffrey Willingham on Pennsylvania; Court of Federal Claims Claims Number 02–0909V behalf of Zachary Willingham; Hiram, Number 02–0886V 119. Tawnya Allen on behalf of Jordan Georgia; Court of Federal Claims 100. Donna Zittrouer on behalf of Allen; Temecula, California; Court of Number 02–0867V Andrew Zittrouer; Vienna, Virginia; Federal Claims Number 02–0913V 83. Robin and Michael Wilson on behalf Court of Federal Claims Number 02– 120. Cindy and Jeffrey Mays on behalf of Destiny Wilson; Savannah, Georgia; 0887V of Kyle Mays; Temecula, California; Court of Federal Claims Number 02– 101. Mathew Snyder on behalf of John Court of Federal Claims Number 02– 0868V Snyder; Vienna, Virginia; Court of 0914V 84. Joann and John Bowes on behalf of Federal Claims Number 02–0888V 121. Anna and Brent Clawson on behalf Andrew Bowes; Raleigh, North 102. Douglas Cooper on behalf of Justin of Cameron James Clawson; Carolina; Court of Federal Claims Cooper; Vienna, Virginia; Court of Temecula, California; Court of Federal Number 02–0869V Federal Claims Number 02–0889V Claims Number 02–0915V 85. Tracy and Wayne Hill on behalf of 103. Robert Blackwell on behalf of 122. Lesa and Kenneth Booth on behalf Wayne Hill, Jr.; Goldsboro, North Timothy Blackwell; Vienna, Virginia; of Jeffrey T. Booth; Houston, Texas; Carolina; Court of Federal Claims Court of Federal Claims Number 02– Court of Federal Claims Number 02– Number 02–0870V 0890V 0916V 86. Ying and Va Yang on behalf of Ryan 104. Maria Corrales on behalf of Dean 123. Gary Bell and Christina Messick on Yang; Hickory, North Carolina; Court James Kivotidis; Vienna, Virginia; behalf of Chase T. Bell; Houston, of Federal Claims Number 02–0871V Court of Federal Claims Number 02– Texas; Court of Federal Claims 87. Willie Bell and Gwendolyn Williams 0891V Number 02–0917V on behalf of Travis Bell; Rocky 105. Rose Lunsford on behalf of 124. Arthur Gonyea and Norma Jean Mount, North Carolina; Court of Matthew Lunsford; Vienna, Virginia; Fowler on behalf of Jeffrey Gonyea; Federal Claims Number 02–0872V Court of Federal Claims Number 02– Houston, Texas; Court of Federal 88. Amy and Stacy Carson on behalf of 0892V Claims Number 02–0918V Kit Carson; Asheville, North Carolina; 106. Arlisha Ross on behalf of Sarabian 125. Lilia and David Rosell on behalf of Court of Federal Claims Number 02– Ross; Jackson, Mississippi; Court of Katie B. Rosell; Houston, Texas; Court 0873V Federal Claims Number 02–0896V of Federal Claims Number 02–0919V

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126. Linda and Kerry Weinmaster on 144. Marie and David Bennett on behalf Court of Federal Claims Number 02– behalf of Adam Weinmaster; Houston, of Austin Rowe Bennett; Seattle, 0977V Texas; Court of Federal Claims Washington; Court of Federal Claims 162. Michelle and Mark Dunham on Number 02–0920V Number 02–0954V behalf of Nicholas Ryan Dunham; 127. Carolyn and Robert Clarke on 145. Elizabeth and Thomas Duggan on Melbourne, Florida; Court of Federal behalf of Christopher Ryan Clarke; behalf of Justine Duggan; Rockville Claims Number 02–0980V Logan, West Virginia; Court of Federal Center, New York; Court of Federal 163. Alicia and Blane Meeks on behalf Claims Number 02–0921V Claims Number 02–0955V of Madison L. Meeks; Melbourne, 128. Tina and Brian Flanagan on behalf 146. Lori and Edward Bailey on behalf Florida; Court of Federal Claims of Patrick James Joseph Flanagan; of Kaylin Ruth Bailey; Logan, West Number 02–0981V Flushing, New York; Court of Federal Virginia; Court of Federal Claims 164. Jennifer Mullen on behalf of Sean Claims Number 02–0922V Number 02–0956V Mullen; Boston, Massachusetts; Court 129. Christine and Norman Eisengart on 147. Cynthia McCullough on behalf of of Federal Claims Number 02–0983V behalf of Nicholas Connor Eisengart; Kearney Rose McCullough; Worcester, 165. Michelle Avery on behalf of Justin Ashtabula, Ohio; Court of Federal Massachusetts; Court of Federal Avery; Boston, Massachusetts; Court Claims Number 02–0923V Claims Number 02–0957V of Federal Claims Number 02–0984V 130. Charles Mensah; Bronx, New York; 148. Dave Mackelprang and Mildred 166. Jessica Ozment on behalf of Court of Federal Claims Number 02– Floyd on behalf of Devin Michael Victoria Ozment; Boston, 0924V Mackelprang; Denver, Colorado; Court Massachusetts; Court of Federal 131. Melissa and Frank Kudasik on of Federal Claims Number 02–0958V Claims Number 02–0985V behalf of Hunter Frank Kudasik; 149. Laura and Aaron Misenhelter on 167. Robin Cline on behalf of Ryan Aberdeen, Washington; Court of behalf of Aaron Misenhelter; Rothrock; Boston, Massachusetts; Federal Claims Number 02–0925V Charleston, South Carolina; Court of Court of Federal Claims Number 02– 132. John Aaron Nagel on behalf of Clay Federal Claims Number 02–0960V 0986V Harris Nagel; Boston, Massachusetts; 150. Samara Brown on behalf of Dorian 168. Victoria Miller on behalf of Court of Federal Claims Number 02– Herriott; Sumter, South Carolina; Zachery Miller; Boston, 0927V Court of Federal Claims Number 02– Massachusetts; Court of Federal 133. Mary Browning on behalf of Mauve 0961V Claims Number 02–0987V Brynildson; Boston, Massachusetts; 151. Dawn and Robert Thomas on behalf 169. Kimberly Melvin on behalf of Najee Court of Federal Claims Number 02– of Robert C. Thomas; Lexington, Melvin; Boston, Massachusetts; Court 0928V South Carolina; Court of Federal of Federal Claims Number 02–0988V 134. Mary Browning on behalf of Claims Number 02–0962V 170. Charlene Russell on behalf of Katherine Brynildson; Boston, 152. Diane Dininno and Charles Wilson Joseph Russell; Boston, Massachusetts; Court of Federal on behalf of Trystan Wilson Graham; Massachusetts; Court of Federal Claims Number 02–0929V Claims Number 02–0989V 135. Lory and Calvin Shaw on behalf of Fayetteville, North Carolina; Court of 171. Myra McKeever on behalf of Cyrish Jason Shaw; Smithfield, North Federal Claims Number 02–0963V 153. Carolyn and Jose Nogal on behalf McKeever; Boston, Massachusetts; Carolina; Court of Federal Claims Court of Federal Claims Number 02– Number 02–0930V of Mirella Nogal; Newton Grove, 136. Victor Heidelberg on behalf of North Carolina; Court of Federal 0990V Destiny Heidelberg; Laurel, Claims Number 02–0964V 172. Dawn Roark on behalf of Noah Mississippi; Court of Federal Claims 154. Leslie and Robert Weed on behalf Roark; Boston, Massachusetts; Court Number 02–0931V of Lanier Rose Weed; Melbourne, of Federal Claims Number 02–0991V 137. Barbara Winnicki on behalf of Florida; Court of Federal Claims 173. Monika Steinborn on behalf of Matthew Winnicki; Boston, Number 02–0965V Trevor Rose; Boston, Massachusetts; Massachusetts; Court of Federal 155. Katherine and David Souers on Court of Federal Claims Number 02– Claims Number 02–0935V behalf of Benjamin Thomas Souers; 0992V 138. Murray Richelson on behalf of Melbourne, Florida; Court of Federal 174. Sharon and Tim Scott on behalf of Elisheva Richelson; Boston, Claims Number 02–0966V Colby Brennan Scott; Houston, Texas; Massachusetts; Court of Federal 156. Sharon Lang; Chicago, Illinois; Court of Federal Claims Number 02– Claims Number 02–0936V Court of Federal Claims Number 02– 0993V 139. Mohammad Saadatzadeh and 0968V 175. Felica and David Ward on behalf of Sholeh Bijang on behalf of Tirajeh 157. Tammy Jo Dettman on behalf of Morgan Elizabeth Ward; Lewisville, Saadatzadeh; Indianapolis, Indiana; Brandon Edward Barton; Houston, Texas; Court of Federal Claims Court of Federal Claims Number 02– Texas; Court of Federal Claims Number 02–0994V 0937V Number 02–0973V 176. Cynthia and Kenneth Brown on 140. Judith and Michael Ruggiero on 158. Aja Richardson on behalf of Kylie behalf of Zachary Taylor Brown; behalf of Nicholas A. Ruggiero; Mae Cotton-Richardson; Houston, Lewisville, Texas; Court of Federal Indianapolis, Indiana; Court of Texas; Court of Federal Claims Claims Number 02–0995V Federal Claims Number 02–0938V Number 02–0974V 177. Melissa and Norman Kuehn on 141. Theresa Abel on behalf of Brittany 159. Maggie and Leif Taubenberger on behalf of Brandon Hilton Kuehn; Dollins; Peoria, Illinois; Court of behalf of Max Friedrich Taubenberger; Houston, Texas; Court of Federal Federal Claims Number 02–0947V Houston, Texas; Court of Federal Claims Number 02–0996V 142. Kita Hughes on behalf of Marlin Claims Number 02–0975V 178. Eileen and Michael O’Connell on Noel Hughes; Detroit, Michigan; Court 160. Leticia Garcia on behalf of Jacob behalf of Michael Joseph O’Connell; of Federal Claims Number 02–0949V Matthew Garcia; San Jose, California; Webster, Texas; Court of Federal 143. Sharon and Scott Blair on behalf of Court of Federal Claims Number 02– Claims Number 02–0997V Aubreianna Blair; Vienna, Virginia; 0976V 179. Jessica Owens on behalf of Jarrett Court of Federal Claims Number 02– 161. Ora Robinson on behalf of James Ross Schafer; Corsicana, Texas; Court 0952V Marcus Robinson; Denver, Colorado; of Federal Claims Number 02–0998V

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180. Kendal and Jay Blackmon on behalf Minneapolis, Minnesota; Court of Carolina; Court of Federal Claims of Todd Christopher Blackmon; Fort Federal Claims Number 02–1018V Number 02–1040V Worth, Texas; Court of Federal Claims 198. Sue and Ron Carey on behalf of 216. Janina and Leszek Olsen on behalf Number 02–0999V Matthew Carey; Minneapolis, of Jan Olsen; Temecula, Florida; Court 181. Jacqueline and Mark Redding on Minnesota; Court of Federal Claims of Federal Claims Number 02–1043V behalf of Case Redding; New Orleans, Number 02–1019V 217. Delya Johnson on behalf of Quran Louisiana; Court of Federal Claims 199. Gail and Mark Foreman on behalf Johnson; Salisbury, North Carolina; Number 02–1000V of Christopher Foreman; Minneapolis, Court of Federal Claims Number 02– 182. Eugenia Collins on behalf of JaCora Minnesota; Court of Federal Claims 1044V Nesbitt; Charleston, South Carolina; Number 02–1020V 218. Beverly Watson on behalf of Keith Court of Federal Claims Number 02– 200. Judy and Luke Yurkovich on behalf Bernard Harris; Chicago, Illinois; 1002V of Brenden Yurkovich; Minneapolis, Court of Federal Claims Number 02– 183. Jacqueline Degree on behalf of Minnesota; Court of Federal Claims 1045V Keanna Degree; Charleston, South Number 02–1021V 219. Malka and Brian Asch on behalf of Carolina; Court of Federal Claims 201. Kimberly Lambert; Covington, Ariel Michael Asch; Cedarhurst, New Number 02–1003V Louisiana; Court of Federal Claims York; Court of Federal Claims Number 184. Andrea Jordan on behalf of Alvarez Number 02–1022V 02–1046V Boyd; Charleston, South Carolina; 202. Kathleen Rose Murphy on behalf of 220. Leah Dow Standley on behalf of Court of Federal Claims Number 02– Adam Joseph Rusch; Houston, Texas; Addison Morris Standley; Winter 1004V Court of Federal Claims Number 02– Park, Florida; Court of Federal Claims 185. Cynthia Sells on behalf of Marlesha 1023V Number 02–1047V Sells; Charleston, South Carolina; 203. Amanda Jo Wroblewski on behalf 221. Angelia McCoy Allison on behalf of Court of Federal Claims Number 02– of Shane O’Connell, Jr.; Houston, Robbiana La’Shae Harris; Demopolis, 1005V Texas; Court of Federal Claims Alabama; Court of Federal Claims 186. Keri Stevenson on behalf of Baylee Number 02–1024V Number 02–1048V Stevenson; Charleston, South 204. Jamie and Alan Harshfield on 222. Charles Jones and Tammy behalf of Adison Harshfield; Houston, Carolina; Court of Federal Claims Roberson on behalf of Travis William Texas; Court of Federal Claims Number 02–1006V Jones; Anniston, Alabama; Court of 187. Tammy and Paul Lessick on behalf Number 02–1025V Federal Claims Number 02–1049V 205. Nikki Leigh Horstmeyer on behalf of Dean Lessick; Charleston, South 223. Cori Katherine Harris on behalf of of Tyler B. Germann; Houston, Texas; Carolina; Court of Federal Claims Raymond Ryan Harris; Quincy, Court of Federal Claims Number 02– Number 02–1007V Massachusetts; Court of Federal 1026V 188. Christina Masters on behalf of 206. Pamela and Craig Corley on behalf Claims Number 02–1050V 224. Dana Butler on behalf of Reagan Allison Butcher; Charleston, South of James Corley; Houston, Texas; Alicia Butler; Brooklyn, New York; Carolina; Court of Federal Claims Court of Federal Claims Number 02– Court of Federal Claims Number 02– Number 02–1008V 1027V 189. Lajaune and George Graves on 207. Dionne Carter on behalf of Logan 1051V behalf of Nyla Graves; Charleston, Carter; Houston, Texas; Court of 225. Esther Hall; Thornton, Colorado; South Carolina; Court of Federal Federal Claims Number 02–1028V Court of Federal Claims Number 02– Claims Number 02–1009V 208. Linda and Jeffrey Brown on behalf 1052V 190. Radiah and Christopher Stewart on of Terrell C. Brown; Houston, Texas; 226. Ernesto Reyes on behalf of Isamar behalf of Elijah Stewart; Charleston, Court of Federal Claims Number 02– Reyes; Temecula, California; Court of South Carolina; Court of Federal 1029V Federal Claims Number 02–1053V Claims Number 02–1010V 209. Mary Fields on behalf of Triniti 227. Sheri and Jeffrey Denbaugh on 191. Beth Tobin on behalf of Lauren Fields; Charleston, South Carolina; behalf of Julia Denbaugh; Temecula, Tobin; Vienna, Virginia; Court of Court of Federal Claims Number 02– California; Court of Federal Claims Federal Claims Number 02–1012V 1034V Number 02–1054V 192. Janeen and Joseph Herskovitz on 210. Gina Busolin on behalf of 228. Abigail and Christopher Smith on behalf of Benjamin Herskovitz; Christopher Busolin; Charleston, behalf of Kirsten Nicole Smith; Melbourne, Florida; Court of Federal South Carolina; Court of Federal Temecula, California; Court of Federal Claims Number 02–1013V Claims Number 02–1035V Claims Number 02–1055V 193. Janine Pandolfino on behalf of 211. James McKenzie on behalf of Jahiya 229. Elizabeth Collet on behalf of Gianna Pandolfino; Framingham, McKenzie; Charleston, South William Collet; Boston, Massachusetts; Court of Federal Carolina; Court of Federal Claims Massachusetts; Court of Federal Claims Number 02–1014V Number 02–1036V Claims Number 02–1056V 194. Julie and Craig Yanz on behalf of 212. Patricia and Bryan Easter on behalf 230. Golda Zafrani on behalf of Isaac Zachary Yanz; Minneapolis, of Patrick Easter; Charleston, South Zafrani; Boston, Massachusetts; Court Minnesota; Court of Federal Claims Carolina; Court of Federal Claims of Federal Claims Number 02–1057V Number 02–1015V Number 02–1037V 231. Makayla Zarker on behalf of Wendy 195. Lynette and Max Lambert on behalf 213. Cheryl Kennedy on behalf of Lynn; Boston, Massachusetts; Court of of Abbigail Lambert, Deceased; Darriaus Kennedy; Charleston, South Federal Claims Number 02–1058V Denton, Texas; Court of Federal Carolina; Court of Federal Claims 232. Theresa and Steven Meadows on Claims Number 02–1016V Number 02–1038V behalf of Tyler Steven Meadows; 196. Kellie and Anthony Korder on 214. Amber and Bryan Trimpe on behalf Melbourne, Florida; Court of Federal behalf of Courtney River Korder; of Gabriel Trimpe; Charleston, South Claims Number 02–1059V Minneapolis, Minnesota; Court of Carolina; Court of Federal Claims 233. Jean and Frank Krumenacker on Federal Claims Number 02–1017V Number 02–1039V behalf of Frank Krumenacker; New 197. Stephanie and Daniel Bakke on 215. Leslie and Joe Davis on behalf of York, New York; Court of Federal behalf of Benjamin Bakke; Joel Davis; Charleston, South Claims Number 02–1060V

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234. Vivian Leites on behalf of Addison North Carolina; Court of Federal Alaska; Court of Federal Claims Nicholas Leites; New York, New York; Claims Number 02–1083V Number 02–1104V Court of Federal Claims Number 02– 252. Robin and Mark Arnold on behalf 270. Joan and Thomas Lutz on behalf of 1061V of Jonathan Arnold; Salisbury, North Thomas Lutz; Libertyville, Illinois; 235. Stacey and Lawrence Wolff on Carolina; Court of Federal Claims Court of Federal Claims Number 02– behalf of Jordan Wolff; New York, Number 02–1084V 1105V New York; Court of Federal Claims 253. Laura and Scott Bono on behalf of 271. Leila and Michael Voss on behalf Number 02–1062V Jackson Bono; Salisbury, North of Jacob Michael Voss; Eureka, 236. Marie and John Tonini on behalf of Carolina; Court of Federal Claims California; Court of Federal Claims Nicholas Tonini; New York, New Number 02–1085V Number 02–1106V York; Court of Federal Claims Number 254. Leeann and Michael Calkins on 272. Stacy and Michael Vivona on 02–1063V behalf of Patricia Calkins; Charleston, behalf of Nicholas George Vivona; 237. Michele and Jeffrey Horvath on South Carolina; Court of Federal Levittown, New York; Court of behalf of Joshua Horvath; New York, Claims Number 02–1086V Federal Claims Number 02–1107V New York; Court of Federal Claims 255. Leeann and Michael Calkins on 273. David Diconza; Boston, Number 02–1064V behalf of Jessica Calkins; Charleston, Massachusetts; Court of Federal 238. Cynthia Gowins on behalf of South Carolina; Court of Federal Claims Number 02–1109V Brandon Gowins; Vienna, Virginia; Claims Number 02–1087V 274. William D. Fichera; Boston, Court of Federal Claims Number 02– 256. Trenesha McClary on behalf of Massachusetts; Court of Federal 1065V Nakira Atkinson; Charleston, South Claims Number 02–1110V 239. Erica Egan on behalf of Bryan Carolina; Court of Federal Claims 275. Mark Tremblay on behalf of Oliver Mueller; Vienna, Virginia; Court of Number 02–1088V Tremblay; Boston, Massachusetts; Federal Claims Number 02–1066V 257. Drakoulis and Athanasios Petsos on Court of Federal Claims Number 02– 240. Quentin Smith and Victoria Peay behalf of Drakoulis Christodoulos 1111V on behalf of Antoinette Y. Smith; Petsos; Hamilton, New Jersey; Court 276. Nadine Fitzgerald on behalf of Nya Baltimore, Maryland; Court of Federal of Federal Claims Number 02–1089V Fitzgerald; Boston, Massachusetts; 258. Katherine and Robert Green on Court of Federal Claims Number 02– Claims Number 02–1067V 241. Sabina and Phillip Degaetano on behalf of Alan Chandler Green; Erie, 1112V 277. Carolyn Brown on behalf of Paige behalf of Nicholas Degaetano; Great Pennsylvania; Court of Federal Claims Brown; Boston, Massachusetts; Court Neck, New York; Court of Federal Number 02–1090V 259. Kerriann and Jeffrey Adler on of Federal Claims Number 02–1113V Claims Number 02–1068V behalf of Jeffrey Raymond Adler, II; 278. Elaine Williams on behalf of 242. Terry and Thomas Thackeray on Fullerton, California; Court of Federal Nicholas Lemon; Boston, behalf of Lauren Thackeray; Great Claims Number 02–1091V Massachusetts; Court of Federal Neck, New York; Court of Federal 260. Christie Lynn Haggard and Edgar Claims Number 02–1114V Claims Number 02–1069V Paul Conner on behalf of Sean Patrick 279. Raymond Laspada on behalf of 243. Margaret King on behalf of Conner; Nashville, Tennessee; Court Tyler Laspada; Boston, Massachusetts; Marquell Johnson; Great Neck, New of Federal Claims Number 02–1092V Court of Federal Claims Number 02– York; Court of Federal Claims Number 261. Patricia and Michael Harvan on 1115V 02–1070V behalf of Luke Alexander Harvan; 280. Donna Cooper on behalf of 244. Troy Soper and Marie Martin on Montgomeryville, Pennsylvania; Jonathan Cooper; Boston, behalf of Ryan Soper; Great Neck, Court of Federal Claims Number 02– Massachusetts; Court of Federal New York; Court of Federal Claims 1093V Claims Number 02–1116V Number 02–1071V 262. Horacio Correa on behalf of Juliana 281. David Schacter on behalf of Jacob 245. Laura Thomas on behalf of Correa; Vienna, Virginia; Court of Schacter; Boston, Massachusetts; Samantha Thomas; Great Neck, New Federal Claims Number 02–1097V Court of Federal Claims Number 02– York; Court of Federal Claims Number 263. Cynthia Darling on behalf of Garrett 1117V 02–1072V Darling; Vienna, Virginia; Court of 282. Thomas Hoxie on behalf of Kyle 246. Victoria and Luke Brunson on Federal Claims Number 02–1098V Hoxie; Boston, Massachusetts; Court behalf of Zachary Boggs Brunson; 264. John Jodsaas on behalf of Johleen of Federal Claims Number 02–1118V Chamblee, Georgia; Court of Federal Jodsaas; Vienna, Virginia; Court of 283. Sharon Ackerman on behalf of Claims Number 02–1073V Federal Claims Number 02–1099V Frederick M. Ackerman, III; 247. Gary Champagne on behalf of 265. Tammy Henschel on behalf of Morganville, New Jersey; Court of Kevin Champagne; Culloden, Georgia; Noah Wade Henschel; Boston, Federal Claims Number 02–1119V Court of Federal Claims Number 02– Massachusetts; Court of Federal 284. Lynn and Michael Bollish on 1074V Claims Number 02–1100V behalf of Brandon Michael Bollish; 248. Suzanne and Richard Harvey on 266. Nancy and Troy Morris on behalf Dallas, Texas; Court of Federal Claims behalf of Bryceson Harvey; Lake Park, of Tiston Levi Morris; Vidalia, Number 02–1120V Georgia; Court of Federal Claims Georgia; Court of Federal Claims 285. Roberta Barton-Patino on behalf of Number 02–1075V Number 02–1101V George Patino; New Orleans, 249. Laura and Ricky Driver on behalf 267. Tashia and Robert Smalls on behalf Louisiana; Court of Federal Claims of Ricky Elbert Davis, Jr.; Salisbury, of Quentin Josef Smalls; Flushing, Number 02–1121V North Carolina; Court of Federal New York; Court of Federal Claims 286. Jane and Kenneth Lang on behalf Claims Number 02–1081V Number 02–1102V of Robert Michael Lang; Salisbury, 250. Cynthia Davis on behalf of Layne 268. Christine and Clark Parr on behalf North Carolina; Court of Federal Patrick Davis; Salisbury, North of Blake Christopher Parr; Denver, Claims Number 02–1124V Carolina; Court of Federal Claims Colorado; Court of Federal Claims 287. Patricia and John Hamilton on Number 02–1082V Number 02–1103V behalf of Evan Hamilton; Salisbury, 251. Carolyn Crowsom Hollar on behalf 269. Lori and Jeffrey Yanuchi on behalf North Carolina; Court of Federal of Beau Harris Crowsom; Salisbury, of Brooks Jordan Yanuchi; Fairbanks, Claims Number 02–1125V

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288. Valerie and Brent Koeval on behalf 307. Cynda Mayfield on behalf of Jayson Salisbury, North Carolina; Court of of Helen Koeval; Salisbury, North Mayfield; Boston, Massachusetts; Federal Claims Number 02–1169V Carolina; Court of Federal Claims Court of Federal Claims Number 02– 325. Lucinda McKinnon on behalf of Number 02–1126V 1150V Verontina McKinnon; Salisbury, 289. Theresa and Tom Vollmer on 308. Kelly Kerns on behalf of Daniel North Carolina; Court of Federal behalf of Julia Madison Vollmer; Kerns; Boston, Massachusetts; Court Claims Number 02–1170V Salisbury, North Carolina; Court of of Federal Claims Number 02–1151V 326. Kimberly and Charles Kuhn on Federal Claims Number 02–1127V 309. Jodi Vanmeter on behalf of Ryan behalf of Ethan Kuhn; Houston, 290. O.C. and Teryl Dorham on behalf Vanmeter; Boston, Massachusetts; Texas; Court of Federal Claims of Alexis Dorham; Aledo, Texas; Court of Federal Claims Number 02– Number 02–1171V Court of Federal Claims Number 02– 1152V 327. Alberto Puebla and Juanita Flores 1130V 310. Veronica Lynch on behalf of on behalf of Jared Allen Puebla; 291. Enrique Rodriguez on behalf of Yancey James Lynch; Great Neck, Houston, Texas; Court of Federal Jeremiah Rodriguez; Boston, New York; Court of Federal Claims Claims Number 02–1172V Massachusetts; Court of Federal Number 02–1153V 328. Samuel Briseno on behalf of Claims Number 02–1131V 311. Yolanda and Alex Orozco on behalf Brandon Briseno; Houston, Texas; 292. Victoria Cummings on behalf of of Alex Christopher Orozco, Jr.; Court of Federal Claims Number 02– Deanna Cummings; Vienna, Virginia; Phoenix, Arizona; Court of Federal 1173V Court of Federal Claims Number 02– Claims Number 02–1154V 329. Lisa and Stephen Salbato on behalf 1132V 312. Antoinette and Timothy Leonard of Nicholas Salbato; Houston, Texas; 293. Nan Conlon; New Brunswick, New on behalf of Tyler Leonard; New Court of Federal Claims Number 02– Jersey; Court of Federal Claims Orleans, Louisiana; Court of Federal 1174V Number 02–1133V Claims Number 02–1155V 330. Donna and Jeff Popp on behalf of 294. Kelly Kerns on behalf of Andrew 313. Brandy and Clint Guyban on behalf Joshua Michael Popp; Cincinnati, Kerns; Boston, Massachusetts; Court of Matthew Guyban; New Orleans, Ohio; Court of Federal Claims of Federal Claims Number 02–1137V Louisiana; Court of Federal Claims Number 02–1175V 331. Wendy and James Akers on behalf 295. Elizabeth Pabey on behalf of Number 02–1156V Brandon Garcia; Boston, 314. Dawn and Daryl Sam on behalf of of James Cole Akers; Dobson, North Massachusetts; Court of Federal Daryl Sam, Jr.; New Orleans, Carolina; Court of Federal Claims Claims Number 02–1138V Louisiana; Court of Federal Claims Number 02–1176V 332. Brigitte and Larry Atkinson on 296. Kimberly Gayon on behalf of Rafael Number 02–1157V behalf of Jake Alex Atkinson; North Gayon; Boston, Massachusetts; Court 315. Quotisha Sharper on behalf of Virginia, Minnesota; Court of Federal of Federal Claims Number 02–1139V Emile Clay; New Orleans, Louisiana; 297. Linda Chen on behalf of Jason Claims Number 02–1177V Court of Federal Claims Number 02– 333. Nancy and Nicholas Sierchio on Chen; Boston, Massachusetts; Court of 1158V behalf of David Cole Sierchio; Federal Claims Number 02–1140V 316. Addie M. Ryman on behalf of Denville, New Jersey; Court of Federal 298. Tiffany Brassard on behalf of Anthony Marcelle; New Orleans, Claims Number 02–1178V Kayden Brassard; Boston, Louisiana; Court of Federal Claims 334. Margaret and Eric Heitz on behalf Massachusetts; Court of Federal Number 02–1159V of Christopher Thaddeus Pustelak; Claims Number 02–1141V 317. Andrea Chertkow on behalf of Berwyn, Illinois; Court of Federal 299. Jamie Blockinger on behalf of Tyler Chertkow; San Diego, Claims Number 02–1179V Aaron Blockinger; Boston, California; Court of Federal Claims 335. Donna and Jeff Popp on behalf of Massachusetts; Court of Federal Number 02–1161V Justin Dean Popp; Cincinnati, Ohio; Claims Number 02–1142V 318. Cori Padilla and Julio Marquez on Court of Federal Claims Number 02– 300. Maria Cerrato on behalf of Brandon behalf of Antonio C. Marquez, 1180V Cerrato; Boston, Massachusetts; Court Deceased; Aurora, Colorado; Court of 336. Betzaida and Moises Colon on of Federal Claims Number 02–1143V Federal Claims Number 02–1162V behalf of Gabriel Moises Colon; Fort 301. Lavanda Palmer on behalf of 319. Deborah Laughter on behalf of Campbell, Kentucky; Court of Federal Marcus Palmer; Boston, Caleb Jamison Adams; Salisbury, Claims Number 02–1181V Massachusetts; Court of Federal North Carolina; Court of Federal 337. Jennifer and Aaron Donatella on Claims Number 02–1144V Claims Number 02–1164V behalf of Bradly Steven Donatella; 302. Anthony Thompson on behalf of 320. Julie Ann Teat on behalf of John Youngstown, Ohio; Court of Federal James Thompson; Boston, Christian Arney; Salisbury, North Claims Number 02–1182V Massachusetts; Court of Federal Carolina; Court of Federal Claims 338. Frances and Danile Aull on behalf Claims Number 02–1145V Number 02–1165V of William Daniel Blake Aull, 303. Sherone Sader on behalf of Shaun 321. Debra and Carlos Owens on behalf Deceased; Owensboro, Kentucky; Sader; Boston, Massachusetts; Court of Sean Owens; Salisbury, North Court of Federal Claims Number 02– of Federal Claims Number 02–1146V Carolina; Court of Federal Claims 1183V 304. Hillari O’Brien on behalf of Number 02–1166V 339. Theresa (McDohough) Alwuhush Nicholas O’Brien; Boston, 322. Tracey and Alton Parker on behalf on behalf of Adam A. Alwuhush; Massachusetts; Court of Federal of Alton P. Parker, Jr.; Salisbury, Alexandria, Virginia; Court of Federal Claims Number 02–1147V North Carolina; Court of Federal Claims Number 02–1187V 305. Pamela Nichol on behalf of Claims Number 02–1167V 340. Senait Hagos on behalf of Muna Anthony Nichol; Boston, 323. Amy and David Long on behalf of Awlaki; Alexandria, Virginia; Court of Massachusetts; Court of Federal Walker Long; Salisbury, North Federal Claims Number 02–1188V Claims Number 02–1148V Carolina; Court of Federal Claims 341. Tracey Coleman on behalf of 306. Steven Miller on behalf of Danielle Number 02–1168V Abigail M. Coleman; Alexandria, Miller; Boston, Massachusetts; Court 324. Shelley and Frederick Kraft on Virginia; Court of Federal Claims of Federal Claims Number 02–1149V behalf of Alexander James Kraft; Number 02–1189V

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342. Judith Nicosia on behalf of Michael Gonzales, Louisiana; Court of Federal 381. Janie L. Davis on behalf of Caleb A. J. Nicosia; Alexandria, Virginia; Court Claims Number 02–1214V Davis; Alexandria, Virginia; Court of of Federal Claims Number 02–1190V 362. Leslie and Jason Swink on behalf Federal Claims Number 02–1242V 343. Angela M. Green on behalf of of Mark Swink; Melbourne, Florida; 382. Lou Edna Stevens on behalf of Geoffrey H. Baskerville; Alexandria, Court of Federal Claims Number 02– Tyrone Stevens, Jr.; Alexandria, Virginia; Court of Federal Claims 1215V Virginia; Court of Federal Claims Number 02–1191V 363. Rani Stevens on behalf of Corinthia Number 02–1243V 344. Deborah J. Fuller on behalf of Shalise Watkins, Deceased; Longview, 383. Regina Vance on behalf of Korey D. Christopher A. Brooks, Jr.; Texas; Court of Federal Claims Vance; Alexandria, Virginia; Court of Alexandria, Virginia; Court of Federal Number 02–1223V Federal Claims Number 02–1244V Claims Number 02–1192V 364. Heather and James Turner on 384. Carmen K. Harris on behalf of 345. Trena M. Fisher on behalf of Cody behalf of Taylor B. Ivy; Melbourne, Antonyus R. Harris; Alexandria, R. Fisher; Alexandria, Virginia; Court Florida; Court of Federal Claims Virginia; Court of Federal Claims of Federal Claims Number 02–1193V Number 02–1224V Number 02–1245V 346. Shanice (Holmes) Golden on behalf 365. Jacqueline and Scott Miller on 385. Nichol Riley on behalf of Nicholas of Shamont (Holmes) Golden; behalf of Joel S. Miller; Melbourne, P. Riley; Alexandria, Virginia; Court Alexandria, Virginia; Court of Federal Florida; Court of Federal Claims of Federal Claims Number 02–1246V Claims Number 02–1194V Number 02–1225V 386. Aujorae Lance on behalf of Tamiji 347. Libra Orange on behalf of Daron J. 366. Wilmer Price on behalf of Joshua Lance; Alexandria, Virginia; Court of Lightfoot; Alexandria, Virginia; Court Price; Vienna, Virginia; Court of Federal Claims Number 02–1247V of Federal Claims Number 02–1195V Federal Claims Number 02–1226V 387. Mona Moody-Watson and Louis 348. Althea and James McIver on behalf 367. Meagan O’Brien on behalf of Kelly Watson on behalf of Sarina Watson; of James E. McIver, III; Alexandria, O’Brien; Vienna, Virginia; Court of Alexandria, Virginia; Court of Federal Virginia; Court of Federal Claims Federal Claims Number 02–1227V Claims Number 02–1248V 368. Janie and Nathan Custer on behalf 388. Kimberly and Matthew O’Malley Number 02–1196V 349. Brenda Randolph on behalf of of Ethan Custer; Kansas City, on behalf of Mark Joseph O’Malley; Decarol L. Randolph; Alexandria, Missouri; Court of Federal Claims Morristown, New Jersey; Court of Virginia; Court of Federal Claims Number 02–1229V Federal Claims Number 02–1258V 369. Meredith and Terry Hughes on 389. Todd Altschul on behalf of April Number 02–1197V behalf of Terri M. Hughes; Houston, Altschul; Beaumont, Texas; Court of 350. Zabrina Ward on behalf of Meiko Texas; Court of Federal Claims Federal Claims Number 02–1260V G. Ward; Alexandria, Virginia; Court Number 02–1230V 390. Gabrielle and Sergio Nanez on of Federal Claims Number 02–1198V 370. Christine Taylor on behalf of behalf of Karina Isabel Nanez; El Paso, 351. Sandra and James Waters on behalf Samuel Taylor; Houston, Texas; Court Texas; Court of Federal Claims of Sean P. Waters; Vienna, Virginia; of Federal Claims Number 02–1231V Number 02–1261V Court of Federal Claims Number 02– 371. Lynn and Walter Kellogg on behalf 391. Debbie L. Hadden on behalf of 1200V of Krista Kellogg; Houston, Texas; Lessia Lynn Hadden; Hephzibah, 352. Trisha Cuce on behalf of Lindsay Court of Federal Claims Number 02– Georgia; Court of Federal Claims Cuce; Vienna, Virginia; Court of 1232V Number 02–1262V Federal Claims Number 02–1201V 372. Onna Elder on behalf of Jordan 392. Michelle Mitchell on behalf of 353. Sherry Williford on behalf of Kyle Elder; Boston, Massachusetts; Court of Daulton Mitchell; Boston, Williford; Vienna, Virginia; Court of Federal Claims Number 02–1233V Massachusetts; Court of Federal Federal Claims Number 02–1202V 373. Kimberly Wallace on behalf of Claims Number 02–1264V 354. Ted Jones, III; Vienna, Virginia; Hunter Wood; Boston, Massachusetts; 393. Gwynne Cotter on behalf of Caleb Court of Federal Claims Number 02– Court of Federal Claims Number 02– Cotter; Boston, Massachusetts; Court 1203V 1234V of Federal Claims Number 02–1265V 355. Cindy Zortman; Vienna, Virginia; 374. Delos Larson on behalf of Alexis 394. Lori and James Cowan on behalf of Court of Federal Claims Number 02– Larson; Boston, Massachusetts; Court Matthew Cowan; Vienna, Virginia; 1204V of Federal Claims Number 02–1235V Court of Federal Claims Number 02– 356. Nancy and Charles Nucciarone on 375. William Bullington on behalf of 1266V behalf of Anthony M. Nucciarone; Ethan Bullington; Boston, 395. Cheryl Pangborn on behalf of Alexandria, Virginia; Court of Federal Massachusetts; Court of Federal Mason Pangborn; Vienna, Virginia; Claims Number 02–1208V Claims Number 02–1236V Court of Federal Claims Number 02– 357. Julie Reber Duffield on behalf of 376. Colleen Allen on behalf of Alexa 1267V Jessica A. Duffield; Alexandria, Allen; Boston, Massachusetts; Court 396. Leslie Byler on behalf of Trevor Virginia; Court of Federal Claims of Federal Claims Number 02–1237V McCabe; Vienna, Virginia; Court of Number 02–1209V 377. Patricia Byers on behalf of Cole Federal Claims Number 02–1268V 358. Richard Green; Sicklerville, New Byers; Boston, Massachusetts; Court 397. Marcy Kelly on behalf of Dylan Jersey; Court of Federal Claims of Federal Claims Number 02–1238V Kelly; Vienna, Virginia; Court of Number 02–1210V 378. Michelle Galliano on behalf of Federal Claims Number 02–1269V 359. Lisa and Walter Graves on behalf Brennyn Galliano; Boston, 398. Annette Cvengros on behalf of of Hayley Nicole Graves, Deceased; Massachusetts; Court of Federal Aaron Cvengros; Vienna, Virginia; Grapevine, Texas; Court of Federal Claims Number 02–1239V Court of Federal Claims Number 02– Claims Number 02–1211V 379. Betsy Tipps on behalf of Dustin 1270V 360. Tracy and Scott Sugg on behalf of Hardebeck; Boston, Massachusetts; 399. Michael Simmons on behalf of Lulianna Sugg; El Dorado, Arkansas; Court of Federal Claims Number 02– Stephen Simmons; Vienna, Virginia; Court of Federal Claims Number 02– 1240V Court of Federal Claims Number 02– 1213V 380. Arlene Marshall on behalf of Clyde 1271V 361. Kelly and Michael Vickers on L. Curtis; Alexandria, Virginia; Court 400. Rebecca and Jack Sytsema on behalf of Michael Zachary Vickers; of Federal Claims Number 02–1241V behalf of Nicholas Sytsema; Dallas,

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Texas; Court of Federal Claims Missense mutations in Fibroblast In the course of the research that led to Number 02–1279V Growth Factor Receptor 3 (FGFR3) the above discovery, a method of 401. Jeanne and Brian Rippentrop on result in several human skeletal separating recombinantly expressed behalf of Anthony Thomas dysplasias, including the most common membrane-bound proteins and Rippentrop; Dallas, Texas; Court of form of dwarfism, achondroplasia. membrane-associated endotoxin in Federal Claims Number 02–1280V The NIH announces the generation of gram-negative prokaryote expression 402. Dana and Lee Halvorson on behalf FGFR3 knockin mice, which have a systems was also developed. of Robyn Leigh Halvorson; Dallas, Gly369Cys mutation, inserted into the Texas; Court of Federal Claims mouse genome. Phenotypic analysis of p-Toluemesulfonhydrazide Number 02–1281V the mice reveals that the FGF/FGFR3 Derivatization for Separation and 403. Margaret Springer on behalf of signals affect both chondrogenesis and Measurement of Endogenous Estrogen Jonah Springer; Boston, osteogenesis by regulating Stat proteins Metabolites by High-Pressure Liquid Massachusetts; Court of Federal and cell-cycle inhibitors, and the Chromatography-Electrospray-Mass Claims Number 02–1284V activities of chondrocytes, osteoclasts, Spectrometry 404. Vera A. Easter on behalf of Jordan and osteoblasts during endochondral Dr. Xia Xu (NCI), U.S. Provisional Delaney Easter; Dallas, Texas; Court of ossification. These mice provide a new Patent Application 60/372,848 filed Federal Claims Number 02–1285V animal model to study functions of Apr. 15, 2002. Dated: January 28, 2003. FGF/FGFR3 signals in achondroplasia Licensing Contact: Brenda Hefti; 301/ Elizabeth M. Duke, patients, which could lead to new drug 435–4632; [email protected]. discovery and therapeutic treatments. The current invention relates to a Administrator. method for measuring endogenous Compositions and Methods for [FR Doc. 03–2658 Filed 2–4–03; 8:45 am] estrogen levels, and this technology may Inhibiting Group B Streptococcal- BILLING CODE 4165–15–P be generalizable to all endogenous Induced Pulmonary Hypertension in ketolic steroids, including estrogens, Neonates androgens, and phytoestrogens. DEPARTMENT OF HEALTH AND Rodney L. Levine et al. (NHLBI), Specifically, the current invention is HUMAN SERVICES DHHS Reference No. E–259–2002/0 a derivatization technique that forms filed Oct. 15, 2002. National Institutes of Health estrogen-p-toluenesulfonhydrazones, Licensing Contact: Susan Ano; 301/ which can be separated and then Government-Owned Inventions; 435–5515; [email protected]. measured using high-pressure liquid Group B streptococcus (GBS), the Availability for Licensing chromatography-electrospray-mass most common cause of sepsis and spectrometry (HPLC–ESI–MS). This AGENCY: National Institutes of Health, meningitis in human newborns, often method offers a number of Public Health Service, DHHS. results in respiratory distress. The improvements over current methods. It ACTION: Notice. underlying cause of this distress is is more sensitive, it is faster, it is more pulmonary hypertension, historically accurate, and it requires a smaller SUMMARY: The inventions listed below believed to be induced by increased sample size. are owned by agencies of the U.S. production of thromboxane A2 as Government and are available for stimulated by GBS. The technology FXR/BAR Knockout Mouse Model licensing in the U.S. in accordance with described here reveals that the Frank Gonzalez (NCI), DHHS 35 U.S.C. 207 to achieve expeditious phospholipids cardiolipin and Reference No. E–323–2001/0—Research commercialization of results of phosphotidylglycerol are causative Tool. federally-funded research and agents of GBS-induced pulmonary Licensing Contact: Marlene Shinn- development. Foreign patent hypertension. Furthermore, the Astor; 301/435–4426; applications are filed on selected technology describes administration of [email protected]. inventions to extend market coverage these phospholipids or immunogenic Cholesterol lowering drugs are being for companies and may also be available fragments thereof in an appropriate prescribed more and more as a way to for licensing. fashion to elicit an immune response, combat high cholesterol levels ADDRESSES: Licensing information and including administration as conjugates associated as a precursor to heart copies of the U.S. patent applications to hapten to enhance the binding disease. The NIH announces a new listed below may be obtained by writing selectivity of the resulting antibodies. knockout mouse model that lacks the to the indicated licensing contact at the Additionally, administration of nuclear receptor FXR/BAR (bile acid Office of Technology Transfer, National antibodies to these phospholipids for receptor). The receptor controls the Institutes of Health, 6011 Executive the same purpose is related. The synthesis and transport of bile salts, Boulevard, Suite 325, Rockville, phospholipids or immunogenic which are degradation products of Maryland 20852–3804; telephone: 301/ fragments can also be administered in a cholesterol. These mice could, therefore, 496–7057; fax: 301/402–0220. A signed dose-dependent manner to increase be used to test new targets for Confidential Disclosure Agreement will blood pressure in pulmonary arteries. cholesterol lowering drugs that use a be required to receive copies of the Kits for administration of these new mechanism which is distinct from patent applications. phospholipids and/or anti-phospholipid the current statin drugs that control antibodies are also described. The HMG CoA reductase. Fibroblast Growth Factor 3 (FGFR3) standard treatment for GBS infection is Receptor Knockin Mice the penicillin class of antibiotics, which Telomerase Immortalized Hepatocyte Dr. Chuxia Deng (NIDDK), DHHS increases the synthesis and excretion of Cell Lines Reference No. E–060–2003/0—Research the two phospholipids revealed in this Xin W. Wang and Curtis Harris (NCI), Tool. technology to cause pulmonary DHHS Reference No. E–251–2000/0– Licensing Contact: Marlene Shinn- hypertension. Thus, the current US–01 filed Dec. 14, 2000. Astor; 301/435–4426; technology offers a potential Licensing Contact: Catherine Joyce; [email protected]. improvement over existing treatments. 301/435–5031; [email protected].

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This technology relates to the Agenda: A Report of the FIC Director on Name of Committee: National Cancer development of new immortalized updates and overviews of new FIC initiatives Institute Board of Scientific Advisors. human liver cell lines that may be used and presentations from Dr. Elias Zerhouni, Date: March 3–4, 2003. for experimental, toxicological, Director, NIH; Dr. Julie Greenberg, Director, Time: March 3, 2003, 8 a.m. to 10:15 p.m. DCD; and Dr. Miriam Stewart, Scientific Agenda: Joint meeting of the NCI Board of physiological and gene therapeutic Director of the Canadian Institutes of Health Scientific Advisors and NCI Board of purposes. The cell lines were Institute of Gender and Health. Scientific Counselors; Report of the Director, immortalized using a human telomerase Place: National Institutes of Health, NCI; Legislative Update; and Ethics reverse transcriptase (hTERT) gene via a Lawton Chiles International House, Bethesda, Overview. retroviral vector and were derived from MD 20892. Place: National Cancer Institute, Building human hepatocytes. Closed: 1 p.m. to Adjournment. 31, C Wing, 6 Floor, 9000 Rockville Pike, A PCT patent application Agenda: To review and evaluate grant Conference Room 10, Bethesda, MD 20892. applications and/or proposals. Time: March 3, 2003, 10:15 a.m. to 6 p.m. corresponding to this technology (PCT/ Agenda: Ongoing and New Business; US01/47755) was published on June 20, Place: National Institutes of Health, Lawton Chiles International House, Bethesda, Reports of Program Review Group(s); and 2002 with publication number WO 02/ MD 20892. Budget Presentation; Reports of Special 48319. Contact Person: Irene W. Edwards, Initiatives; RFA and RFP Concept Reviews; The above-mentioned invention is Information Officer, Fogarty International and Scientific Presentations. available for licensing on a non- Center, National Institutes Of Health, Place: National Cancer Institute, Building exclusive basis. Building 31, Room B2C08, 31 Center Drive 31, C Wing, 6 Floor, 9000 Rockville Pike, MSC 2220, Bethesda, MD 20892, 301–496– Conference Room 10, Bethesda, MD 20892. Dated: January 28, 2003. 2075. Time: March 4, 2003, 8:30 a.m. to 1 p.m. Jack Spiegel, This notice is being published less than 15 Agenda: Reports of Special Initiatives; RFA Director, Division of Technology Development days prior to the meeting due to the timing and RFP Concept Reviews; and Scientific and Transfer, Office of Technology Transfer, limitations imposed by the review and Presentations. National Institutes of Health. funding cycle. Place: National Cancer Institute, Building 31, C Wing, 6 Floor, 9000 Rockville Pike, [FR Doc. 03–2626 Filed 2–4–03; 8:45 am] Information is also available on the Conference Room 10, Bethesda, MD 20892. BILLING CODE 4140–01–P Institute’s/Center’s home page: http:// www.nih.gov/fic/about/advisory.html, where Contact Person: Paulette S. Gray, PhD, an agenda and any additional information for Executive Secretary, Deputy Director, the meeting will be posted when available. Division of Extramural Activities, National DEPARTMENT OF HEALTH AND Cancer Institute, National Institutes of HUMAN SERVICES (Catalogue of Federal Domestic Assistance Health, 6116 Executive Boulevard, 8th Floor, Program Nos. 93.106, Minority International Rm. 8141, Bethesda, MD 20892, 301–496– National Institutes of Health Research Training Grant in the Biomedical 4218. and Behavioral Sciences; 93.154, Special In the interest of security, NIH has Fogarty International Center; Notice of International Postdoctoral Research Program instituted stringent procedures for entrance Meeting in Acquired Immunodeficiency Syndrome: into the building by non-government 93.168, International Cooperative employees. Persons without a government Pursuant to section 10(d) of the Biodiversity Groups Program; 93.934, Fogarty I.D. will need to show a photo I.D. and sign- Federal Advisory Committee Act, as International Research Collaboration Award; in at the security desk upon entering the amended (5 U.S.C. Appendix 2), notice 93.989, Senior International Fellowship building. Awards Program, National Institutes of Information is also available on the is hereby given of the following meeting Health, HHS) of the Fogarty International Center Institute’s/Center’s home page: http:// deainfo.nci.nih.gov/advisory/bsa.htm, where Board. Dated: January 27, 2003. LaVerne Y. Stringfield, an agenda and any additional information for The meeting will be opened to the the meeting will be posted when available. public as indicated below, with Director, Office of Federal Advisory (Catalogue of Federal Domestic Assistance Committee Policy. attendance limited to space available. Program Nos. 93.392, Cancer Construction; Individuals who plan to attend and [FR Doc. 03–2622 Filed 2–4–03; 8:45 am] 93.393, Cancer Cause and Prevention need special assistance, such as sign BILLING CODE 4140–01–M Research; 93.394, Cancer Detection and language interpretation or other Diagnosis Research; 93.395, Cancer reasonable accommodations, should Treatment Research; 93.396, Cancer Biology notify the Contact Person listed below DEPARTMENT OF HEALTH AND Research; 93.397, Cancer Centers Support; in advance of the meeting. HUMAN SERVICES 93.398, Cancer Research Manpower; 93.399, The meeting will be closed to the Cancer Control, National Institutes of Health, HHS) public in accordance with the National Institutes of Health provisions set forth in sections Dated: January 27, 2003. National Cancer Institute; Notice of 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., LaVerne Y. Stringfield, Meeting as amended. The grant applications Director, Office of Federal Advisory and/or contract proposals and the Pursuant to section 10(a) of the Committee Policy. discussions could disclose confidential Federal Advisory Committee Act, as [FR Doc. 03–2621 Filed 2–4–03; 8:45 am] trade secrets or commercial property amended (5 U.S.C. Appendix 2), notice BILLING CODE 4140–01–M such as patentable material, and is hereby given of a meeting of the personal information concerning National Cancer Institute Board of individuals associated with the grant Scientific Advisors. DEPARTMENT OF HEALTH AND applications and/or contract proposals, The meeting will be open to the HUMAN SERVICES the disclosure of which would public, with attendance limited to space constitute a clearly unwarranted available. Individuals who plan to National Institutes of Health invasion of personal privacy. attend and need special assistance, such National Center on Minority Health and Name of Committee: Fogarty International as sign language interpretation or other Health Disparities; Notice of Meeting Center Advisory Board. reasonable accommodations, should Date: February 11, 2003. notify the Contact Person listed below Pursuant to section 10(d) of the Open: 8:30 a.m. to 12 p.m. in advance of the meeting. Federal Advisory Committee Act, as

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amended (5 U.S.C. Appendix 2), notice The meeting will be closed to the and personal information concerning is hereby given of a meeting of the public in accordance with the individuals associated with the grant National Advisory Council on Minority provisions set forth in sections 552(c)(4) applications, the disclosure of which Health and Health Disparities. and 552b(c)(6), Title 5 U.S.C., as would constitute a clearly unwarranted The meeting will be open to the amended. The grant applications and invasion of personal privacy. public as indicated below, with the discussions could disclose Name of Committee: National Institute of attendance limited to space available. confidential trade secrets or commercial Mental Health Special Emphasis Panel, Individuals who plan to attend and property such as patentable material, NIMH Schizophrenia Conte Centers. need special assistance, such as sign and personal information concerning Date: March 3–4, 2003. language interpretation or other individuals associated with the grant Time: 8 a.m. to 5 p.m. reasonable accommodations, should applications, the disclosure of which Agenda: To review and evaluate grant applications. notify the Contact Person listed below would constitute a clearly unwarranted invasion of personal privacy. Place: Bethesda Marriott, 5151 Pooks Hill in advance of the meeting. Road, Bethesda, MD 20814. The meeting will be closed to the Name of Committee: National Institute of Contact Person: Houmam H Araj, PhD., public in accordance with the Environmental Health Sciences Special Scientific Review Administrator, Division of provisions set forth in sections Emphasis Panel. Review of Program Project Extramural Activities, National Institute of 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., (P01s) Applications. Mental Health, NIH, Neuroscience Center, as amended. The grant applications and Date: February 25, 2003. 6001 Executive Blvd., Room 6148, MSC 9608, Time: 8:30 a.m. to 5 p.m. the discussions could disclose Bethesda, MD 20892–9608, 301–443–1340, Agenda: To review and evaluate grant [email protected]. confidential trade secrets or commercial applications and/or proposals. Name of Committee: National Institute of property such as patentable material, Place: Raddison Governors Inn, I–40 at Mental Health Special Emphasis Panel, Conte Davis Drive, Exit 280, Research Triangle and personal information concerning Centers For Mechanisms of Synaptic Park, NC 27709. individuals associated with the grant Signaling, Circadian Rhythms and Sexual Contact Person: Sally Eckert-Tilotta, PhD, applications, the disclosure of which Dimorphic Brain Injury. would constitute a clearly unwarranted National Inst. of Environmental Health Sciences, Office of Program Operations, Date: March 6–7, 2003. invasion of personal privacy. Scientific Review Branch, PO Box 12233, MD Time: 9 a.m. to 5 p.m. Agenda: To review and evaluate grant Name of Committee: National Advisory EC–30, Research Triangle Park, NC 27709, applications. Council on Minority Health and Health 919/541–1446, [email protected]. Place: Bethesda Marriott, 5151 Pooks Hill Disparities. (Catalogue of Federal Domestic Assistance Road, Bethesda, MD 20814. Date: February 24, 2003. Program Nos. 93.113, Biological Response to Contact Person: Peter J. Sheridan, PhD., Open: 8:30 a.m. to 1:30 p.m. Environmental Health Hazards; 93.114, Scientific Review Administrator, Division of Agenda: The agenda will include Opening Applied Toxicological Research and Testing; Extramural Activities, National Institute of Remarks, Administrative Matters, Director’s 93.115, Biometry and Risk Estimation— Mental Health, NIH, Neuroscience Center, Report, NCMHD, and other business of the Health Risks from Environmental Exposures; 6001 Executive Blvd., Room 6148, MSC 9606, Council. 93.142, NIEHS Hazardous Waste Worker Bethesda, MD 20892–9606, 301–443–1513, Place: Bethesda Marriott, 5151 Pooks Hill Health and Safety Training; 93.143, NIEHS [email protected]. Road, Bethesda, MD 20814. Superfund Hazardous Substances—Basic Closed: 1:30 p.m. to Adjournment. Research and Education; 93.894, Resources (Catalogue of Federal Domestic Assistance Agenda: To review and evaluate grant and Manpower Development in the Program Nos. 93.242, Mental Health Research applications. Environmental Health Sciences, National Grants; 93.281, Scientist Development Place: Bethesda Marriott, 5151 Pooks Hill Institutes of Health, HHS) Award, Scientist Development Award for Road, Bethesda, MD 20814. Dated: January 28, 2003. Clinicians, and Research Scientist Award; Contact Person: Tommy L. Broadwater, LaVerne Y. Stringfield, 93.282, Mental Health National Research PhD., Senior Advisor to the Director, Service Awards for Research Training, Director, Office of Federal Advisory National Center on Minority Health, and National Institutes of Health, HHS) Committee Policy. Health Disparities, 6707 Democracy Plaza, Dated: January 28, 2003. Room 800, Bethesda, MD 20892, 301–402– [FR Doc. 03–2611 Filed 2–4–03; 8:45 am] 1366. BILLING CODE 4140–01–M LaVerne Y. Stringfield, Director, Office of Federal Advisory Dated: January 28, 2003. Committee Policy. LaVerne Y. Stringfield, DEPARTMENT OF HEALTH AND [FR Doc. 03–2612 Filed 2–4–03; 8:45 am] Director, Office of Federal Advisory HUMAN SERVICES BILLING CODE 4140–01–M Committee Policy. [FR Doc. 03–2610 Filed 2–4–03; 8:45 am] National Institutes of Health BILLING CODE 4140–01–M DEPARTMENT OF HEALTH AND National Institute of Mental Health; HUMAN SERVICES Notice of Closed Meetings DEPARTMENT OF HEALTH AND Pursuant to section 10(d) of the National Institutes of Health HUMAN SERVICES Federal Advisory Committee Act, as National Institute of Mental Health; National Institutes of Health amended (5 U.S.C. Appendix 2), notice Notice of Closed Meetings is hereby given of the following National Institute of Environmental meetings. Pursuant to section 10(d) of the Health Sciences; Notice of Closed The meetings will be closed to the Federal Advisory Committee Act, as Meeting public in accordance with the amended (5 U.S.C. Appendix 2), notice provisions set forth in sections is hereby given of the following Pursuant to section 10(d) of the 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., meetings. Federal Advisory Committee Act, as as amended. The grant applications and The meetings will be closed to the amended (5 U.S.C. Appendix 2), notice the discussions could disclose public in accordance with the is hereby given of the following confidential trade secrets or commercial provisions set forth in sections meeting. property such as patentable material, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C.,

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as amended. The grant applications and Dated: January 28, 2003. DEPARTMENT OF HEALTH AND the discussions could disclose LaVerne Y. Stringfield, HUMAN SERVICES confidential trade secrets or commercial Director, Office of Federal Advisory property such as patentable material, Committee Policy. National Institutes of Health and personal information concerning [FR Doc. 03–2613 Filed 2–4–03; 8:45 am] individuals associated with the grant National Institute on Alcohol Abuse BILLING CODE 4140–01–M applications, the disclosure of which and Alcoholism; Notice of Closed would constitute a clearly unwarranted Meetings invasion of personal privacy. DEPARTMENT OF HEALTH AND Pursuant to section 10(d) of the Name of Committee: National Institute of HUMAN SERVICES Federal Advisory Committee Act, as Mental Health Special Emphasis Panel, amended (5 U.S.C. Appendix 2), notice Translational Research. National Institutes of Health is hereby given of the following Date: February 21, 2003. meetings. Time: 10:30 a.m. to 11:15 a.m. National Institute of Allergy and The meetings will be closed to the Agenda: To review and evaluate grant Infectious Diseases; Notice of Closed public in accordance with the applications. provisions set forth in sections Place: Holiday Inn Select Bethesda, 8120 Meetings Wisconsin Ave, Bethesda, MD 20814. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Contact Person: Peter J. Sheridan, PhD., Pursuant to section 10(d) of the as amended. The grant applications and Scientific Review Administrator, Division of Federal Advisory Committee Act, as the discussions could disclose Extramural Activities, National Institute of amended (5 U.S.C. Appendix 2), notice confidential trade secrets or commercial Mental Health, NIH, Neuroscience Center, is hereby given of the following property such as patentable material, 6001 Executive Blvd., Room 6142, MSC 9606, meetings. and personal information concerning Bethesda, MD 20892–9606, 301–443–1513, individuals associated with the grant [email protected]. The meetings will be closed to the applications, the disclosure of which This notice is being published less than 15 public in accordance with the would constitute a clearly unwarranted days prior to the meeting due to the timing provisions set forth in sections limitations imposed by the review and invasion of personal privacy. funding cycle. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Name of Committee: National Institute on as amended. The grant applications and Name of Committee: National Institute of Alcohol Abuse and Alcoholism Special Mental Health Special Emphasis Panel, the discussions could disclose Emphasis Panel, ZAA1 BB (14) Review Translational Research in Behavioral confidential trade secrets or commercial Meeting (1 R01 Application). Science. property such as patentable material, Date: February 20, 2003. Date: February 21, 2003. and personal information concerning Time: 8 a.m. to 9 p.m. Time: 11:15 a.m. to 4:30 p.m. Agenda: To review and evaluate grant individuals associated with the grant applications. Agenda: To review and evaluate grant applications, the disclosure of which applications. Place: NIH/NIAAA, Willco Building, 6000 Place: Holiday Inn Select Bethesda, 8120 would constitute a clearly unwarranted Executive Blvd., 409, Bethesda, MD 20892– Wisconsin Ave, Bethesda, MD 20814. invasion of personal privacy. 7003, (Telephone Conference Call). Contact Person: Elsie D. Taylor, Scientific Contact Person: Peter J. Sheridan, PhD., Name of Committee: National Institute of Scientific Review Administrator, Division of Review Administrator, Extramural Project Allergy and Infectious Diseases Special Review Branch, National Institute on Alcohol Extramural Activities, National Institute of Abuse and Alcoholism, National Institutes of Mental Health, NIH, Neuroscience Center, Emphasis Panel, Comprehensive Health, Suite 409, 6000 Executive Blvd., 6001 Executive Blvd., Room 6142, MSC 9606, International Program of Research on AIDS Bethesda, MD 20892–7003, 301–443–9897, Bethesda, MD 20892–9606, 301–443–1513, (CIPRA). [email protected]. [email protected]. Date: February 24, 2003. This notice is being published less than 15 Time: 10 a.m. to 12:30 p.m. Name of Committee: National Institute on days prior to the meeting due to the timing Agenda: To review and evaluate grant Alcohol Abuse and Alcoholism Special limitations imposed by the review and applications. Emphasis Panel, ZAA1 FF (16)—R21 & K23 Special Emphasis Panel Review. funding cycle. Place: 6700 B Rockledge Drive, Bethesda, Name of Committee: National Institute of Date: February 24, 2003. MD 20892, (Telephone Conference Call). Time: 1 p.m. to 3 p.m. Mental Health Special Emphasis Panel, Contact Person: Robert C. Goldman, PhD., Agenda: To review and evaluate grant ACISR & DCISR Center—Services. Scientific Review Administrator, Scientific applications. Date: March 5, 2003. Review Program, Division of Extramural Place: National Institutes of Health, Willco Time: 8 a.m. to 5 p.m. Building, 6000 Executive Blvd., Room 409, Agenda: To review and evaluate grant Activities, NIAID, NIH, Room 3124, 6700–B Rockville, MD 20852, (Telephone Conference applications. Rockledge Drive, MSC 7616, Bethesda, MD Call). Place: Holiday Inn Select Bethesda, 8120 20892–7616, 301–496–8424, Contact Person: Sean O’Rourke, Scientific Wisconsin Ave, Bethesda, MD 20814. [email protected]. Review Administrator, Extramural Project Contact Person: Henry J. Haigler, Ph.D., (Catalogue of Federal Domestic Assistance Review Branch, National Institute on Alcohol Scientific Review Administrator, Division of Program Nos. 93.855, Allergy, Immunology, Abuse and Alcoholism, National Institutes of Extramural Activities, National Institute of and Transplantation Research; 93.856, Health, Suite 409, 6000 Executive Blvd., Mental Health, NIH, Neuroscience Center, Bethesda, MD 20892–7003, 301–443–2861. 6001 Executive Blvd., Room 6150, MSC 9608, Microbiology and Infectious Diseases Bethesda, MD 20892–9608, 301–443–7216, Research, National Institutes of Health, HHS) Name of Committee: National Institute on [email protected]. Dated: January 28, 2003. Alcohol Abuse and Alcoholism Special Emphasis Panel, Prevention and (Catalogue of Federal Domestic Assistance LaVerne Y. Stringfield, Epidemiology Alcohol Review Committee— Program Nos. 93.242, Mental Health Research Director, Office of Federal Advisory ZAA1 FF (10). Grants; 93.281, Scientist Development Committee Policy. Date: February 28, 2003. Award, Scientist Development Award for [FR Doc. 03–2614 Filed 2–4–03; 8:45 am] Time: 8 a.m. to 5 p.m. Clinicians, and Research Scientist Award; Agenda: To review and evaluate grant 93.282, Mental Health National Research BILLING CODE 4140–01–M applications. Service Awards for Research Training, Place: The River Inn Hotel, 924 Twenty- National Institutes of Health, HHS) Fifth Street, NW., Washington, DC 20037.

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Contact Person: Sean N. O’Rourke, Microbiology and Infectious Diseases DEPARTMENT OF HEALTH AND Scientific Review Administrator, Extramural Research, National Institutes of Health, HHS) HUMAN SERVICES Project Review Branch, National Institute on Dated: January 29, 2003. Alcohol Abuse and Alcoholism, National National Institutes of Health Institutes of Health, Suite 409, 6000 LaVerne Y. Stringfield, Executive Blvd., Bethesda, MD 20892–7003, Director, Office of Federal Advisory National Institute on Deafness and 301–443–2861. Committee Policy. Other Communication Disorders; (Catalogue of Federal Domestic Assistance [FR Doc. 03–2616 Filed 2–4–03; 8:45 am] Notice of Closed Meeting Program Nos. 93.271, Alcohol Research BILLING CODE 4140–01–M Career Development Awards for Scientists Pursuant to section 10(d) of the and Clinicians; 93.272, Alcohol National Federal Advisory Committee Act, as Research Service Awards for Research DEPARTMENT OF HEALTH AND amended (5 U.S.C. Appendix 2), notice Training; 93.273, Alcohol Research Programs; HUMAN SERVICES is hereby given of the following 93.891, Alcohol Research Center Grants, meeting. National Institutes of Health, HHS) National Institutes of Health The meeting will be closed to the Dated: January 28, 2003. public in accordance with the LaVerne Y. Stringfield, National Institute of Environmental provisions set forth in sections Director, Office of Federal Advisory Health Sciences; Amended Notice of 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Committee Policy. Meeting as amended. The grant applications and [FR Doc. 03–2615 Filed 2–4–03; 8:45 am] the discussions could disclose BILLING CODE 4140–01–M Notice is hereby given of a change in confidential trade secrets or commercial the meeting of the National Institute of property such as patentable material, Environmental Health Sciences Special and personal information concerning DEPARTMENT OF HEALTH AND Emphasis Panel, February 12, 2003, 9:30 individuals associated with the grant HUMAN SERVICES a.m. to February 12, 2003, 10:30 a.m., applications, the disclosure of which would constitute a clearly unwarranted National Institutes of Health which was published in the Federal Register on January 16, 2003, FR68: invasion of personal privacy. National Institute of Allergy and 2343. Name of Committee: National Institute on Infectious Diseases; Notice of Closed The time of this meeting has change Deafness and Other Communications Meeting Disorders Special Emphasis Panel. NIDCD from 9:30 a.m. as previously advertised, Training and Conference Grants. Pursuant to section 10(d) of the to 1 p.m. The meeting is closed to the Date: March 4, 2003. Federal Advisory Committee Act, as public Time: 1 p.m. to 3:30 p.m. Agenda: To review and evaluate grant amended (5 U.S.C. Appendix 2), notice Dated: January 29, 2003. applications. is hereby given of the following LaVerne Y. Stringfield, Place: National Institutes of Health, meeting. Director, Office of Federal Advisory National Institutes of Health, 6120 Executive The meeting will be closed to the Committee Policy. Blvd., Rockville, MD 20852, (Telephone public in accordance with the [FR Doc. 03–2617 Filed 2–4–03; 8:45 am] Conference Call). provisions set forth in sections Contact Person: Ali A. Azadegan, DVM, BILLING CODE 4140–01–M 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., PHD, Scientific Review Administrator, as amended. The contract proposals and Scientific Review Branch, Division of the discussions could disclose Extramural Research, NIDCD, NIH, EPS– DEPARTMENT OF HEALTH AND 400C, 6120 Executive Blvd MSC 7180, confidential trade secrets or commercial HUMAN SERVICES Bethesda, MD 20892–7180, (301) 496–8683, property such as patentable material, [email protected]. and personal information concerning National Institutes of Health (Catalogue of Federal Domestic Assistance individuals associated with the contract Program Nos. 93.173, Biological Research proposals, the disclosure of which National Institute of Environmental Related to Deafness and Communicative would constitute a clearly unwarranted Health Sciences; Amended Notice of Disorders, National Institutes of Health, HHS) invasion of personal privacy. Meeting Dated: January 29, 2003. Name of Committee: National Institute of LaVerne Y. Stringfield, Allergy and Infectious Diseases Special Notice is hereby given of a change in Director, Office of Federal Advisory Emphasis Panel. Food and Waterborne the meeting of the National Institute of Committee Policy. Diseases Integrated Research Network. Environmental Health Sciences Special [FR Doc. 03–2619 Filed 2–4–03; 8:45 am] Date: February 26–28, 2003. Emphasis Panel, February 19, 2003, 10 Time: 8:30 a.m. to 6 p.m. BILLING CODE 4140–01–M Agenda: To review and evaluate contract a.m. to February 19, 2003, 1 p.m., which proposals. was published in the Federal Register Place: Hyatt Regency Bethesda, One on January 16, 2003, FR68: 2344. DEPARTMENT OF HEALTH AND Bethesda Metro Center, 7400 Wisconsin The time of this meeting has changed HUMAN SERVICES Avenue, Bethesda, MD 20814. from 10 a.m., as previously advertised, Contact Person: Gerald L. McLaughlin, National Institutes of Health PhD, Scientific Review Administrator, to 11 a.m. The meeting is closed to the Scientific Review Program, National Institute public. National Institute on Aging; Notice of of Allergy and Infectious Diseases, DEA/NIH/ Dated: January 29, 2003. Closed Meetings DHHS, 6700–B Rockledge Drive, MSC 7616, Room 2212, Bethesda, MD 20892–7616, 301– LaVerne Y. Stringfield, Pursuant to section 10(d) of the 436–7465, [email protected]. Director, Office of Federal Advisory Federal Advisory Committee Act, as Committee Policy. (Catalogue of Federal Domestic Assistance amended (5 U.S.C. Appendix 2), notice Program Nos. 93.855, Allergy, Immunology, [FR Doc. 03–2618 Filed 2–4–03; 8:45 am] is hereby given of the following and Transplantation Research; 93.856, BILLING CODE 4140–01–M meetings.

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The meetings will be closed to the Name of Committee: National Institute on information may lead to changes in the public in accordance with the Aging Special Emphasis Panel, The Effects of recommendations on the safety of the clinical provisions set forth in sections Lipid Oxidation in Alzheimer’s Disease. gene transfer trials in SCID formulated by the Date: February 25–26, 2003. RAC at its December 2002 meeting. In 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Time: 6 p.m. to 5 p.m. addition, the RAC may make as amended. The grant applications and Agenda: To review and evaluate grant recommendations pertaining to the safety the discussions could disclose applications. and conduct of gene transfer clinical trials confidential trade secrets or commercial Place: The Renaissance Madison Hotel, 515 using retroviral vectors. property such as patentable material, Madison Street, Seattle, WA 98104. The RAC is meeting due to the potential and personal information concerning Contact Person: Arthur D. Schaerdel, DVM, significance of this new data and the need for individuals associated with the grant The Bethesda Gateway Building, 7201 expeditious deliberation and public applications, the disclosure of which Wisconsin Avenue/Suite 2C212, Bethesda, discussion of its potential implications for MD 20892, (301) 496–9666. the safety and conduct of clinical gene would constitute a clearly unwarranted Name of Committee: National Institute on transfer trials using retroviral vectors. invasion of personal privacy. Aging Initial Review Group, Behavior and Place: National Institutes of Health, 9000 Name of Committee: National Institute on Social Science of Aging Review Committee, Rockville Pike, Building 45, Main Aging Special Emphasis Panel, Clinical Trial NIA–S. Auditorium, Bethesda, Maryland 20892. R01’S. Date: March 13–14, 2003. Contact: Stephen Rose, Ph.D., Executive Date: February 20, 2003. Time: 4 p.m. to 5 p.m. Secretary, Recombinant DNA Advisory Time: 2 p.m. to 4 p.m. Agenda: To review and evaluate grant Committee, Office of Biotechnology Agenda: To review and evaluate grant applications. Activities, Rockledge 1, Room 750, Bethesda applications. Place: Holiday Inn Georgetown, 2101 MD 20892, (301) 496–9839. Place: Scientific Review Office, National Wisconsin Avenue, NW., Washington, DC This notice is being published less Institute on Aging, 7201 Wisconsin Avenue, 20007. than 15 days before the meeting due to 2C212 Gateway Building, Bethesda, MD Contact Person: Alfonso R. LaToni, PhD, the emergency nature of the actions 20814 (Telephone Conference Call). Health Scientist Administrator, Scientific Review Office, National Institute on Aging, involved. Contact Person: Ramesh Vemuri, PhD, Information is also available on the National Institute on Aging, The Bethesda Gateway Building 2C212, 7201 Wisconsin Avenue, Bethesda, MD 20892, 301/496–9666, Institute’s/Center’s home page: http:// Gateway Building, 7201 Wisconsin Avenue, www4.od.nih.gov/oba/, where an agenda Suite 2C212, Bethesda, MD 20892, (301) 496– [email protected]. and any additional information for the 9666. Dated: January 27, 2003. (Catalogue of Federal Domestic Assistance meeting will be posted when available. Name of Committee: National Institute on OMB’s ‘‘Mandatory Information Aging Special Emphasis Panel, Determinants Program Nos. 93.866, Aging Research, Requirements for Federal Assistance of Retirement Behavior. National Institutes of Health, HHS) Program Announcements’’ (45 FR Date: February 20–21, 2003. LaVerne Y. Stringfield, Time: 7 a.m. to 6 p.m. 39592, June 11, 1980) requires a Director, Office of Federal Advisory statement concerning the official Agenda: To review and evaluate grant Committee Policy. applications. government programs contained in the Place: Sheraton Gateway Hotel, 6101 West [FR Doc. 03–2623 Filed 2–4–03; 8:45 am] Catalog of Federal Domestic Assistance. Century Blvd., Los Angeles, CA 90045. BILLING CODE 4140–01–M Normally NIH in its announcements the Contact Person: Alfonso R. Latoni, PhD, number and title of affected individual Health Scientist Administrator, Scientific programs for the guidance of the public. Review Office, National Institute on Aging, DEPARTMENT OF HEALTH AND Because the guidance in this notice National Institutes of Health, 7201 Wisconsin HUMAN SERVICES covers virtually every NIH and Federal Avenue, Room 2C212, Bethesda, MD 20892, research program in which DNA 301/496–9666, [email protected]. National Institutes of Health recombinant molecules techniques Name of Committee: National Institute on could be used, it has been determined Aging Special Emphasis Panel, Alzheimer’s Office of the Director, National Disease Models. Institutes of Health; Notice of Meeting not to be cost effective or in the public interest to attempt to list these Date: February 24–25, 2003. Pursuant to section 10(a) of the Time: 6 a.m. to 8 p.m. programs. Such a list would likely Agenda: To review and evaluate grant Federal Advisory Committee Act, as require several additional pages. In applications. amended (5 U.S.C. Appendix 2), notice addition, NIH could not be certain that Place: Sheraton University City, 36th is hereby given of a meeting of the every Federal program would be Chestnut Streets, Philadelphia, PA 19104. Recombinant DNA Advisory Committee. included as many Federal agencies, as Contact Person: Louise L. Hsu, PhD, The The meeting will be open to the well as private organizations, both and Bethesda Gateway Building, 7201 Wisconsin public, with attendance limited to space national and international, have elected Avenue/Suite 2C212, Bethesda, MD 20892, available. Individuals who plan to to follow the NIH Guidelines. In lieu of (301) 496–7705. attend and need special assistance, such Name of Committee: National Institute on the individual programs listed in the as sign language interpretation or other Catalog of Federal Domestic Assistance Aging Special Emphasis Panel, Aging reasonable accommodations, should Immune System. are affected. Date: February 25, 2003. inform the contact person listed below in advance of the meeting. (Catalogue of Federal Domestic Assistance Time: 11 a.m. to 2 p.m. Program Nos. 93.14, Intramural Research Agenda: To review and evaluate grant Name of Committee: Recombinant DNA Training Award; 93.187, Undergraduate applications. Advisory Committee (RAC). Scholarship Program for Individuals from Place: National Institute on Aging, Date: February 10, 2003. Disadvantaged Backgrounds; 93.22, Clinical Gateway Building, 7201 Wisconsin Avenue, Time: 8:30 am to 4:30 pm. Research Loan Repayment Program for Room 2C212, Bethesda, MD 20892, Agenda: The Committee will review new Individuals from Disadvantaged (Telephone Conference Call). data from a retroviral-mediated gene transfer Backgrounds; 93.232, Loan Repayment Contact Person: James P. Harwood, PhD, clinical trial in Severe Combined Program for Research Generally, 93.39, Deputy Chief, Scientific Review Office, Immunodeficiency (SCID) that could be Academic Research Enhancement Award; Gateway Building 2C212, 7201 Wisconsin important to the safety of participants in gene 93.936, NIH Acquired Immunodeficiency Avenue, Bethesda, MD 20814, (301) 496– transfer clinical trials that use retroviral Syndrome Research Loan Repayment 9666, [email protected]. vectors. The discussion of this new Program, National Institutes of Health, HHS)

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Dated: January 27, 2003. Name of Committee: Integrative, Scientific Review, National Institutes of LaVerne Y. Stringfield, Functional and Cognitive Neuroscience Health, 6701 Rockledge Drive, Room 5214, Integrated Review Group, Integrative, MSC 7850, Bethesda, MD 20892. (301) 435– Director, Office of Federal Advisory Functional and Cognitive Neuroscience 1. 1239. [email protected]. Committee Policy. Date: February 19–20, 2003. Name of Committee: Infectious Diseases [FR Doc. 03–2620 Filed 2–4–03; 8:45 am] Time: 8 a.m. to 5 p.m. and Microbiology Integrated Review Group, BILLING CODE 4140–0–M Agenda: To review and evaluate grant Bacteriology and Mycology Subcommittee 2. applications. Date: February 19–20, 2003. Place: Holiday Inn, 8120 Wisconsin Time 8:30 a.m. to 3 p.m. DEPARTMENT OF HEALTH AND Avenue, Bethesda, MD 20814. Agenda: To review and evaluate grant HUMAN SERVICES Contact Person: Gamil C Debbas, PhD, applications. Scientific Review Administrator, Center for Place: One Washington Circle Hotel, One National Institutes of Health Scientific Review, National Institutes of Washington Circle, Washington, DC 20037. Health, 6701 Rockledge Drive, Room 5170, Contact Person: Melody Mills, PhD, Center for Scientific Review; Notice of MSC 7844, Bethesda, MD 20892. (301) 435– 1018. Scientific Review Administrator, Center for Closed Meetings Scientific Review, National Institutes of Name of Committee: Molecular, Cellular Health, 6701 Rockledge Drive, MSC 7808, Pursuant to section 10(d) of the and Developmental Neuroscience Integrated Room 4190, Bethesda, MD 20892. (301)–435– Federal Advisory Committee Act, as Review Group, Molecular, Cellular and 0903. amended (5 U.S.C. Appendix 2), notice Developmental Neurosciences 5. Date: February 19–20, 2003. Name of Committee: Center for Scientific is hereby given of the following Time: 8 a.m. to 5 p.m. Review Special Emphasis Panel, ZRG1 SSS meetings. Agenda: To review and evaluate grant W. 03M:SAT Member Conflict. The meetings will be closed to the applications. Date: February 19, 2003. public in accordance with the Place: Jurys Washington Hotel, 1500 New Time 9:30 a.m. to 10:30 a.m. provisions set forth in sections Hampshire Avenue, NW., Washington, DC Agenda: To review and evaluate grant 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., 20036. applications. Place: Holiday Inn Georgetown, 2101 as amended. The grant applications Contact Person: Syed Husain, PhD, Scientific Review Administrator, Center for Wisconsin Avenue, NW., Washington, DC and/or contract proposals and the Scientific Review, National Institutes of 20007. discussions could disclose confidential Health, 6701 Rockledge Drive, Room 5216, Contact Person: Dharam S. Dhindsa, DVM, trade secrets or commercial property MSC 7850, Bethesda, MD 20892. (301) 435– PhD, Scientific Review Administrator, Center such as patentable material, and 1224. [email protected]. for Scientific Review, National Institutes of personal information concerning Name of Committee: Pathophysiological Health, 6701 Rockledge Drive, Room 5126, individuals associated with the grant Sciences Integrated Review Group, Alcohol MSC 7854, Bethesda, MD 20892. (301) 435– applications and/or contract proposals, and Toxicology Subcommittee 1. 1174. [email protected]. the disclosure of which would Date: February 19–20, 2003. Name of Committee: Center for Scientific constitute a clearly unwarranted Time 8 a.m. to 5 p.m. Review Special Emphasis Panel, Mycoplasma invasion of personal privacy. Agenda: To review and evaluate grant Respiratory Disease. applications. Date: February 19, 2003. Name of Committee: Center for Scientific Place: Washington Monarch Hotel, 2401 M Time: 9:30 a.m. to 11:30 a.m. Review Special Emphasis Panel, Small Street, NW. Washington, DC 20037. Agenda: To review and evaluate grant Business: GMB. Contact Person: Patricia Greenwel, PhD, applications. Date: February 11, 2003. Scientific Review Administrator, Center for Place: National Institutes of Health, 6701 Time: 12 p.m. to 1 p.m. Scientific Review, National Institutes of Rockledge Drive, Bethesda, MD 20892. Agenda: To review and evaluate grant Health, 6701 Rockledge Drive, Room 2175, (Telephone conference call.) applications and/or proposals. MSC 7818, Bethesda, MD 20892. (301)– 435– Contact Person: Marian Wachtel, PhD, Place: Holiday Inn Georgetown, 2101 1169. [email protected]. Scientific Review Administrator, Center for Wisconsin Avenue, NW., Washington, DC Name of Committee: Center for Scientific Scientific Review, National Institutes of 20007. Review Special Emphasis Panel, ZRG1 SSS Health, 6701 Rockledge Drive, Room 3208, Contact Person: Shirley Hilden, PhD, W 01M:SAT Member Conflict. MSC 7858, Bethesda, MD 20892. (301) 435– Scientific Review Administrator, Center for Date: February 19, 2003. 1148. [email protected]. Scientific Review, National Institutes of Time 8 a.m. to 9:30 a.m. Name of Committee: Center for Scientific Health, 6701 Rockledge Drive, Room 4218, Agenda: To review and evaluate grant Review Special Emphasis Panel, ZRG1 SSS MSC 7814, Bethesda, MD 20892. (301) 435– applications. W 04M:SAT Member Conflict. 1198. Place: Holiday Inn Georgetown, 2101 Date: February 19, 2003. This notice is being published less than 15 Wisconsin Avenue, NW., Washington, DC Time: 10:30 a.m. to 11 a.m. days prior to the meeting due to the timing 2007. Agenda: To review and evaluate grant limitations imposed by the review and Contact Person: Dharam S. Dhindsa, DVM, applications. funding cycle. PhD, Scientific Review Administrator, Center Place: Holiday Inn Georgetown, 2101 Name of Committee: Center for Scientific for Scientific Review, National Institutes of Wisconsin Avenue, NW., Washington, DC Review Special Emphasis Panel, Health, 6701 Rockledge Drive, Room 5126, 20007. Radioimmunotherapy. MSC 7854, Bethesda, MD 20892. (301) 435– Contact Person: Dharam S. Dhindsa, DVM, Date: February 18, 2003. 1174. [email protected]. PhD, Scientific Review Administrator, Center Time: 3 p.m. to 5 p.m. Name of Committee: Center for Scientific for Scientific Review, National Institutes of Agenda: To review and evaluate grant Review Special Emphasis Panel, Molecular, Health, 6701 Rockledge Drive, Room 5126, applications. Cellular and Developmental Neurosciences 4. MSC 7854, Bethesda, MD 20892. (301) 435– Place: National Institutes of Health, 6701 Date: February 19–20, 2003. 1174. [email protected]. Rockledge Drive, Bethesda, MD 20892. Time 8 a.m. to 5 p.m. Name of Committee: Center for Scientific (Telephone conference call.) Agenda: To review and evaluate grant Review Special Emphasis Panel, Fellowship Contact Person: Paul K. Strudler, PhD, applications. Review: Sensory and Motor Systems Scientific Review Administrator, Center for Place: Ritz-Carlton Hotel at Pentagon City, Physiology. Scientific Review, National Institutes of 1250 South Hayes Street, Arlington, VA Date: February 19, 2003. Health, 6701 Rockledge Drive, Room 6186, 22202. Time: 10:30 a.m. to 5:30 p.m. MSC 7804, Bethesda, MD 20892. (301) 435– Contact Person: Peter B. Guthrie, PhD, Agenda: To review and evaluate grant 1716. [email protected]. Scientific Review Administrator, Center for applications.

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Place: Governor’s House Hotel, 1615 Rhode Place: Churchill Hotel, 1914 Connecticut Date: February 20–21, 2003. Island Avenue, NW., Washington, DC 20036. Avenue, NW., Washington, DC 20009. Time: 8 a.m. to 2:30 p.m. Contact Person: John Bishop, PhD, Contact Person: Nancy Lamontagne, PhD, Agenda: To review and evaluate grant Scientific Review Administrator, Center for Scientific Review Administrator, Center for applications. Scientific Review, National Institutes of Scientific Review, National Institutes of Place: Holiday Inn Chevy Chase, 5520 Health, 6701 Rockledge Drive, Room 5180, Health, 6701 Rockledge Drive, Room 4170, Wisconsin Avenue, Chevy Chase, MD 20815. MSC 7844, Bethesda, MD 20892. MSC 7806, Bethesda, MD 20892. (301) 435– Contact Person: Michael M. Sveda, PhD, Name of Committee: Center for Scientific 1726. [email protected]. Scientific Review Administrator, Review Special Emphasis Panel, Q-Microbial Name of Committee: Molecular, Cellular Biochemistry Study Section, Biochemical Genetics:Quorum. and Developmental Neuroscience Integrated Sciences IRG, 6701 Rockledge Drive, Room Date: February 20–21, 2003. Review Group, Molecular, Cellular and 5152, MSC 7842, Bethesda, MD 20892. (301) Time: 8 a.m. to 5 p.m. Developmental Neurosciences 2. 435–3565. [email protected]. Agenda: To review and evaluate grant Date: February 20–21, 2003. Name of Committee: Oncological Sciences applications. Time: 8 a.m. to 4 p.m. Integrated Review Group, Experimental Place: St. Gregory Hotel, 2033 M Street, Agenda: To review and evaluate grant Therapeutics Subcommittee 1. NW., Washington, DC 20036. applications. Date: February 20–21, 2003. Contact Person: Alexander D. Politis, PhD, Place: The Westin Embassy Row, 2100 Time: 8 a.m. to 5 p.m. Scientific Review Administrator, Center for Massachusetts Avenue, NW., Washington, Agenda: To review and evaluate grant Scientific Review, National Institutes of DC 20008. applications. Health, 6701 Rockledge Drive, Room 4204, Contact Person: Gillian Einstein, PhD, Place: Hyatt Arlington, 1325 Wilson MSC 7812, Bethesda, MD 20892. (301) 435– Scientific Review Administrator, Center for Boulevard, Arlington, VA 22209. 1225. [email protected]. Scientific Review, National Institutes of Contact Person: Philip Perkins, PhD, Scientific Review Administrator, Center for Name of Committee: Integrative, Health, 6701 Rockledge Drive, Room 5198, Scientific Review, National Institutes of Functional and Cognitive Neuroscience MSC 7850, Bethesda, MD 20892. (301) 435– Health, 6701 Rockledge Drive, Room 4148, Integrated Review Group, Alcohol and 4433. MSC 7804, Bethesda, MD 20892. (301) 435– Toxicology Subcommittee 3. Name of Committee: Cell Development and 1718. [email protected]. Date: February 20–21, 2003. Function Integrated Review Group, Cell Time: 8 a.m. to 5 p.m. Development and Function 3. Name of Committee: Immunological Agenda: To review and evaluate grant Date: February 20–21, 2003. Sciences Integrated Review Group, applications. Time: 8 a.m. to 2 p.m. Immunobiology Study Section. Place: Wyndham Washington, DC., 1400 M Agenda: To review and evaluate grant Date: February 20–21, 2003. Street, NW., Washington, DC 20005. applications. Time: 8 a.m. to 5 p.m. Contact Person: Christine Melchior, PhD, Place: Holiday Inn Select Bethesda, 8120 Agenda: To review and evaluate grant Scientific Review Administrator, Center for Wisconsin Ave., Bethesda, MD 20814. applications. Scientific Review, National Institutes of Contact Person: Gerhard Ehrenspeck, PhD, Place: Residence Inn, Conference Room, Health, 6701 Rockledge Drive, Room 4102, Scientific Review Administrator, Center for 7335 Wisconsin Avenue, Bethesda, MD 20814. MSC 7816, Bethesda, MD 20892. (301) 435– Scientific Review, National Institutes of Contact Person: Betty Hayden, PhD, 1713. Health, 6701 Rockledge Drive, Room 5138, Scientific Review Administrator, Center for MSC 7840, Bethesda, MD 20892. (301) 435– Name of Committee: Biochemical Sciences Scientific Review, National Institutes of 1022. [email protected]. Integrated Review Group, Medical Health, 6701 Rockledge Drive, Room 4206, Biochemistry Study Section. Name of Committee: Nutritional and MSC 7812, Bethesda, MD 20892. (301) 435– Date: February 20–21, 2003. Metabolic Sciences Integrated Review Group, 1223. Time: 8 a.m. to 3:30 p.m. Metabolism Study Section. Agenda: To review and evaluate grant Date: February 20–21, 2003. Name of Committee: Biophysical and applications. Time: 8 a.m. to 5 p.m. Chemical Sciences Integrated Review Group, Place: The Monarch Hotel, 2401 M Street, Agenda: To review and evaluate grant Biophysical Chemistry Study Section. Date: February 20–21, 2003. NW., Washington, DC 20037. applications. Time: 8:30 a.m. to 5 p.m. Contact Person: Camilla E. Day, PhD, Place: Hyatt Regency Bethesda, One Agenda: To review and evaluate grant Scientific Review Administrator, Genetic Bethesda Metro Center, 7400 Wisconsin applications. Sciences IRG, Center for Scientific Review, Avenue, Bethesda, MD 20814. Place: Governor’s House Hotel, 1615 Rhode National Institutes of Health, 6701 Rockledge Contact Person: Ann A. Jerkins, PhD, Island Avenue, NW., Washington, DC. Drive, Room 2208, MSC 7890, Bethesda, MD Scientific Review Administrator, Center for Contact Person: Arnold Revzin, PhD, 20892. (301) 435–1037. [email protected]. Scientific Review, National Institutes of Scientific Review Administrator, Center for Name of Committee: Cardiovascular Health, 6701 Rockledge Drive, Room 6154, Scientific Review, National Institutes of Sciences Integrated Review Group, MSC 7892, Bethesda, MD 20892. (301) 435– Health, 6701 Rockledge Drive, Room 4184, Hematology Subcommittee 1. 4514. [email protected]. MSC 7824, Bethesda, MD 20892. (301) 435– Date: February 20–21, 2003. Name of Committee: Biochemical Sciences 1153. Time: 8 a.m. to 5 p.m. Integrated Review Group, Pathobiochemistry Name of Committee: Center for Scientific Agenda: To review and evaluate grant Study Section. Review Emphasis Panel, Social Psychology, applications. Date: February 20–21, 2003. Personality and Interpersonal Processes. Place: Residence Inn Bethesda, 7335 Time: 8 a.m. to 1 p.m. Date: February 20–21, 2003. Wisconsin Avenue, Bethesda, MD 20814. Agenda: To review and evaluate grant Time: 8:30 a.m. to 6 p.m. Contact Person: Robert Su, PhD, Scientific applications. Agenda: To review and evaluate grant Review Administrator, Center for Scientific Place: Holiday Inn Georgetown, 2101 applications. Review, National Institutes of Health, 6701 Wisconsin Avenue, NW., Washington, DC Place: Holiday Inn Chevy Chase, Somerset Rockledge Drive, Room 4134, MSC 7802, 20007. Conference Room, 5520 Wisconsin Avenue, Bethesda, MD 20892. (301) 435–1195. Contact Person: Zakir Bengali, PhD, Chevy Chase, MD 20815. Name of Committee: Biophysical and Scientific Review Administrator, Center for Contact Person: Michael Micklin, PhD, Chemical Sciences Integrated Review Group, Scientific Review, National Institutes of Scientific Review Administrator, Center for Molecular and Cellular Biophysics Study Health, 6701 Rockledge Drive, Room 5150, Scientific Review, National Institutes of Section. MSC 7842, Bethesda, MD 20892. (301) 435– Health, 6701 Rockledge Drive, Room 3178, Date: February 20–21, 2003. 1742. MSC 7848, Bethesda, MD 20892. (301) 435– Time: 8 a.m. to 6 p.m. Name of Committee: Biochemical Sciences 1258. [email protected]. Agenda: To review and evaluate grant Integrated Review Group, Biochemistry Name of Committee: Biobehavioral and applications. Study Section. Behavioral Process Initial Review Group,

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Biobehavioral and Behavioral Processes 3. Contact Person: Bernard F. Driscoll, PhD, Date: February 21, 2003. Language and Communication (LCOM). Scientific Review Administrator, Center for Time: 8:30 a.m. to 4:30 p.m. Date: February 20–21, 2003. Scientific Review, National Institutes of Agenda: To review and evaluate grant Time: 8:30 a.m. to 6 p.m. Health, 6701 Rockledge Drive, Room 5158, applications. Agenda: To review and evaluate grant MSC 7844, Bethesda, MD 20892. (301) 435– Place: The River Inn, 924 Twenty-Fifth applications. 1242. Street, NW., Washington, DC 20037. Place: Holiday Inn Georgetown, 2101 Name of Committee: Center for Scientific Contact Person: Calbert A. Laing, PhD, Wisconsin Avenue, NW., Washington, DC Review Special Emphasis Panel, Scientific Review Administrator, Center for 20007. Epidemiology of Clinical Disorders and Scientific Review, National Institutes of Contact Person: Weijia Ni, PhD, Scientific Aging. Health, 6701 Rockledge Drive, Room 4210, Review Administrator, Center for Scientific Date: February 20–21, 2003. MSC 7812, Bethesda, MD 20892. (301) 435– Review, National Institutes of Health, 6701 Time : 8:30 a.m. to 4 p.m. 0695. [email protected]. Rockledge Drive, Room 3190, MSC 7848, (for Agenda: To review and evaluate grant (Catalogue of Federal Domestic Assistance overnight mail use room # and 20817 zip), applications. Program Nos. 93.306, Comparative Medicine, Bethesda, MD 20892. (301) 435–1507. Place: Hyatt Regency Bethesda, One [email protected]. 93.306; 93.333, Clinical Research, 93.333, Bethesda Metro Center, 7400 Wisconsin 93.337, 93.393–93.396, 93.837–93.844, Name of Committee: Center for Scientific Avenue, Bethesda, MD 20814. 93.846–93.878, 93.892, 93.893, National Review Special Emphasis Panel, Behavioral Contact Person: Mary Ann Guadagno. PhD, Institutes of Health, HHS) Medicine: Interventions and Outcomes. Scientific Review Administrator, Center for Date: February 20–21, 2003. Scientific Review, National Institutes of Dated: January 29, 2003. Time: 8:30 a.m. to 6 p.m. Health, 6701 Rockledge Drive, Room 1104, LaVerne Y. Stringfield, Agenda: To review and evaluate grant MSC 7780, Bethesda, MD 20892. (301) 435– applications. 8011. Director, Office of Federal Advisory Place: George Washington University Inn, Committee Policy. Name of Committee: Cell Development and 824 New Hampshire Ave., NW., Washington, Function Integrated Review Group, Cell [FR Doc. 03–2609 Filed 2–4–03; 8:45 am] DC 20037. Development and Function 1. BILLING CODE 4140–01–M Contact Person: Lee S. Mann, PhD, JD, Date: February 20–21, 2003. Scientific Review Administrator, Center for Time : 8:30 a.m. to 5 p.m. Scientific Review, National Institutes of Agenda: To review and evaluate grant DEPARTMENT OF HEALTH AND Health, 6701 Rockledge Drive, Room 3186, applications. MSC 7848, Bethesda, MD 20892. (301) 435– HUMAN SERVICES Place: Hilton Washington Embassy Row, 0677. 2015 Massachusetts Ave., NW., Washington, National Institutes of Health Name of Committee: Cell Development and DC 20036. Function Integrated Review Group, Contact Person: Michael H. Sayre, PhD, Prospective Grant of Exclusive International and Cooperative Projects Study Scientific Review Administrator, Center for Section. License: ‘‘Interleukin-2 Receptor and Scientific Review, National Institutes of Applications Thereof’’ Date: February 20–21, 2003. Health, 6701 Rockledge Drive, Room 5128, Time: 8:30 a.m. to 2:30 p.m. MSC 7840, Bethesda, MD 20892. (301) 435– AGENCY: National Institutes of Health, Agenda: To review and evaluate grant 1219 [email protected]. applications. Public Health Service, DHHS. Name of Committee: Center for Scientific Place: The Fairmont, 2401 M Street, ACTION: Notice. Washington, DC 20037. Review Special Emphasis Panel, Contact Person: Sandy Warren, DMD, Complement and SLE. SUMMARY: This is notice, in accordance Date: February 20, 2003. MPH, Scientific Review Administrator, with 35 U.S.C. 209(c)(1) and 37 CFR Center for Scientific Review, National Time : 12:15 p.m. to 1:15 p.m. Agenda: To review and evaluate grant 404.7(a)(1)(i), that the National Institutes of Health, 6701 Rockledge Drive, Institutes of Health, Department of Room 5134, MDC 7840, Bethesda, MD 20892. applications. (301) 435–1019. Place: National Institutes of Health, 6701 Health and Human Services, is Rockledge Drive, Bethesda, MD 20892. contemplating the grant of an exclusive Name of Committee: Biophysical and (Telephone conference call.) Chemical Sciences Integrated Review Group, license to practice the inventions Contact Person: George W. Chacko, PhD, Bio-Organic and Natural Products Chemistry embodied in U.S. Patent No. 5,833,983, Scientific Review Administrator, Center for Study Section. entitled ‘‘Interleukin-2 Receptor and Scientific Review, National Institutes of Date: February 20–21, 2003. Applications Thereof,’’ to Celltech R&D Health, 6707 Rockledge Drive, Room: 4202, Time : 8:30 a.m. to 6 p.m. MSC: 7812, Bethesda, MD 20892, (301) 435– Ltd., a non-U.S. company with Agenda: To review and evaluate grant headquarters in the United Kingdom. applications. 1220. [email protected]. Name of Committee: Social Sciences, The prospective exclusive license Place: Holiday Inn Georgetown, 2101 territory may be worldwide and the Wisconsin Avenue, NW., Washington, DC Nursing, Epidemiology and Methods 20007. Integrated Review Group, Social Sciences, field of use may be therapeutics for the Contact Person: Mike Radtke, PhD, Nursing, Epidemiology and Methods 5. treatment of inflammatory diseases. Scientific Review Administrator, Center for Date: February 21, 2003. DATES: Only written comments and/or Scientific Review, National Institutes of Time: 8 a.m. to 5 p.m. license applications which are received Health, 6701 Rockledge Drive, Room 4176, Agenda: To review and evaluate grant by the National Institutes of Health on applications. MSC 7806, Bethesda, MD 20892. (301) 435– or before April 7, 2003 will be 1728, [email protected]. Place: Hilton Washington Embassy Row, considered. Name of Committee: Integrative, 2015 Massachusetts Avenue, NW., Functional and Cognitive Neuroscience Washington, DC 20036. ADDRESSES: Requests for copies of the Integrated Review Group, Integrative, Contact Person: Ann Hardy, DRPH, patent, inquiries, comments and other Scientific Review Administrator, Center for Functional and Cognitive Neuroscience 7. materials relating to the contemplated Date: February 20–21, 2003. Scientific Review, National Institutes of Health, 6701 Rockledge Drive, Room 3158, exclusive license should be directed to: Time : 8:30 a.m. to 5 p.m. Matthew B. Kiser, Technology Licensing Agenda: To review and evaluate grant MSC 7770, Bethesda, MD 20892. (301) 435– applications. 0695. [email protected]. Specialist, Office of Technology Place: One Washington Circle, 1 Name of Committee: Center for Scientific Transfer, National Institutes of Health, Washington Circle, NW.,Washington, DC Review Special Emphasis Panel, Innate 6011 Executive Boulevard, Suite 325, 20037. Immunity/Host Defense. Rockville, MD 20852–3804. Telephone:

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(301) 435–5236; Facsimile (301) 402– Heat,’’ to Celsion Corporation, a US DEPARTMENT OF HOUSING AND 0220; E-mail [email protected]. company with headquarters in URBAN DEVELOPMENT SUPPLEMENTARY INFORMATION: U.S. Maryland. Patent No. 5,833,983 relates to the field The prospective exclusive license [Docket No. FR–4572–D–31] of receptor molecules. Specifically, the territory may be worldwide and the technology is related to a new field of use may be limited to gene- Order of Succession for the Office of polypeptide receptor for interleukin-2, based therapeutics for the treatment of Housing which is a component of the high cancer. AGENCY: Office of the Assistant affinity IL–2 receptor, antibodies against DATES: Only written comments and/or Secretary for Housing, HUD. this new polypeptide and recombinant license applications which are received interleukins capable of binding to the by the National Institutes of Health on ACTION: Notice of Order of Succession. new receptor. or before April 7, 2003 will be SUMMARY: In this notice, the Assistant The prospective exclusive license will considered. Secretary for Housing designates the be royalty-bearing and will comply with ADDRESSES: Requests for copies of the Order of Succession for the Office of the terms and conditions of 35 U.S.C. patent, inquiries, comments and other Housing. This Order of Succession 209 and 37 CFR 404.7. The prospective materials relating to the contemplated supersedes the Order of Succession for exclusive license may be granted unless exclusive license should be directed to: the Assistant Secretary for Housing, within sixty (60) days from the date of Matthew B. Kiser, Technology Licensing published on August 22, 2000 (65 FR this published notice, the NIH receives Specialist, Office of Technology 51015). written evidence and argument that Transfer, National Institutes of Health, establish that the grant of the license EFFECTIVE DATE: January 27, 2003. 6011 Executive Boulevard, Suite 325, would not be consistent with the FOR FURTHER INFORMATION CONTACT Rockville, MD 20852–3804. Telephone: : Eliot requirements of 35 U.S.C. 209 and 37 (301) 435–5236; Facsimile (301) 402– C. Horowitz, Senior Advisor to the CFR 404.7. 0220; E-mail [email protected]. Assistant Secretary for Housing— Applications for a license in the field Federal Housing Commissioner, Office SUPPLEMENTARY INFORMATION: of use filed in response to this notice of Housing, Department of Housing and will be treated as objections to the grant International Patent Application No. Urban Development, 451 Seventh Street, of the contemplated exclusive license. PCT/US97/15270 relates to the spatial SW., Room 9110, Washington, DC Comments and objections submitted to and temporal control of exogenous gene 20410–0500. Telephone (202) 708–1490 this notice will not be made available expression in genetically engineered (this is not a toll-free number). A for public inspection and, to the extent cells and organisms. In particular, it telecommunications device for hearing- permitted by law, will not be released discloses the use of heat inducible and speech-impaired persons (TTY) is under the Freedom of Information Act, promoters, such as the promoter of heat available at 1–800–877–9339 (Federal 5 U.S.C. 552. shock genes to control the expression of Information relay Service) (this is a toll- exogenous genes. It further relates to the free number). Dated: January 28, 2003. use of focused ultrasound to heat cells Jack Spiegel, that contain therapeutic genes under the SUPPLEMENTARY INFORMATION: The Director, Division of Technology Development control of heat shock promoters, thereby Assistant Secretary for Housing is and Transfer, Office of Technology Transfer. inducing the expression of therapeutic issuing this Order of Succession of [FR Doc. 03–2625 Filed 2–4–03; 8:45 am] genes. officials authorized to perform the BILLING CODE 4140–01–P The prospective exclusive license will functions and duties of the Office of the be royalty-bearing and will comply with Assistant Secretary for Housing when, the terms and conditions of 35 U.S.C. by reason of absence, disability, or DEPARTMENT OF HEALTH AND 209 and 37 CFR 404.7. The prospective vacancy in office, the Assistant HUMAN SERVICES exclusive license may be granted unless Secretary is not available to exercise the within sixty (60) days from the date of powers or perform the duties of the National Institutes of Health this published notice, the NIH receives office. This Order of Succession is subject to the provisions of the Vacancy Prospective Grant of Exclusive written evidence and argument that establish that the grant of the license Reform Act of 1998, 5 U.S.C. 3345– License: ‘‘Spatially and Temporal 3349d. This publication supersedes the Control of Gene Expression Protein would not be consistent with the requirements of 35 U.S.C. 209 and 37 Order of Succession notice published on Promoter in Combination with Local August 22, 2000, at 65 FR 51015. Heat’’ CFR 404.7. Applications for a license in the field Accordingly, the Assistant Secretary AGENCY: National Institutes of Health, of use filed in response to this notice for Housing designates the following Public Health Service, DHHS. will be treated as objections to the grant Order of Succession: ACTION: Notice. of the contemplated exclusive license. Section A. Order of Succession Comments and objections submitted to SUMMARY: This is notice, in accordance this notice will not be made available Subject to the provisions of the with 35 U.S.C. 209(c)(1) and 37 CFR for public inspection and, to the extent Vacancy Reform Act of 1998, during any 404.7(a)(1)(i), that the National permitted by law, will not be released period when, by reason of absence, Institutes of Health, Department of under the Freedom of Information Act, disability, or vacancy in office, the Health and Human Services, is 5 U.S.C. 552. Assistant Secretary for Housing is not contemplating the grant of an exclusive available to exercise the powers or license to practice the inventions Dated: January 28, 2003. perform the duties of the Office of embodied in International Patent Jack Spiegel, Assistant Secretary for Housing, the Application No. PCT/US97/15270, Director, Division of Technology Development following officials within the Office of entitled ‘‘Spatially and Temporal and Transfer, Office of Technology Transfer. Housing are hereby designated to Control of Gene Expression Protein [FR Doc. 03–2624 Filed 2–4–03; 8:45 am] exercise the powers and perform the Promoter in Combination with Local BILLING CODE 4140–01–P duties of the Office:

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(1) General Deputy Assistant developments) that must be removed conversion plans, (3) prohibit or revise Secretary for Housing; from the stock of public housing conversions erroneously identified as (2) Deputy Assistant Secretary for operated under Annual Contributions subject to section 33 of the Act, (4) Finance and Budget; Contracts (ACC) with HUD, and to carry direct the cessation of spending in (3) Deputy Assistant Secretary for out plans to convert the developments connection with developments that are Operations; identified into tenant-based assistance likely to be subject to the statutory (4) Deputy Assistant Secretary for or other forms of housing assistance. criteria, and (5) authorize the direct Regulatory Affairs and Manufactured Authority also is hereby redelegated to transfer of capital or operating funds Housing; the Deputy Assistant Secretary for the associated with a development that (5) Director of the Office of Office of Public Housing Investments to must be removed from the public Multifamily Housing Assistance review and approve or disapprove plans housing stock for use instead for tenant- Restructuring (OMHAR); submitted by PHAs to HUD for the based assistance or site revitalization. (6) Deputy Assistant Secretary for voluntary conversion of public housing HUD will approve plans for voluntary Multifamily Housing; units into tenant-based (or other) conversions (after checking to see if they (7) Deputy Assistant Secretary for housing assistance under section 22 of are complete and include the Single Family Housing. the United States Housing Act of 1937. information required under 24 CFR These officials shall perform the The review process also will determine 972.230), if they are consistent with the functions and duties of the Office in the whether the plans are consistent with initial assessments PHAs are required to order specified herein, and no official assessments PHAs are required to make submit under section 22 of the Act, shall serve unless all the other officials, for public housing general occupancy unless HUD has reliable information whose position titles precede his/hers in developments and with other data that conflicts with the PHA’s this order, are unable to act by reason available to the Secretary, and whether assessment. of absence, disability, or vacancy in the plans meet the requirements under The Secretary elsewhere has office. 24 CFR 972.230. delegated to the Assistant Secretary for EFFECTIVE DATE: January 23, 2003. Public and Indian Housing (PIH) the Section B. Authority Superseded FOR FURTHER INFORMATION CONTACT: authority to administer the This Order of Succession supersedes Ainars Rodins, Office of Public and Department’s programs relating to the Order of Succession for the Indian Housing, Department of Housing public housing (see the delegation of Assistant Secretary for Housing, and Urban Development, Special authority published in the Federal published on August 22, 2000, at 65 FR Applications Center, Chicago, IL (312) Register at 48 FR 41097, September 13, 51015. 353–6236. (This is not a toll-free 1983). Authority: Section 7(d), Department of number.) This number may be accessed Accordingly, the Assistant Secretary Housing and Urban Development Act, 42 via TTY by calling the Federal for PIH redelegates that authority, as U.S.C. 3535(d). Information Relay Service at 1–800– follows: Dated: January 27, 2003. 877–8339.) Comments or questions can Section A. Authority Redelegated John C. Weicher, be submitted through the Internet to The Assistant Secretary for PIH Assistant Secretary for Housing—Federal Beverly B [email protected]. Housing Commissioner. SUPPLEMENTARY INFORMATION: Section redelegates the following authority to the Deputy Assistant Secretary for [FR Doc. 03–2628 Filed 2–4–03; 8:45 am] 537 of the Quality Housing and Work Public Housing Investments: BILLING CODE 4210–27–P Responsibility Act of 1998 (QHWRA) (Title V of Pub. L. 105–276, approved 1. To review and approve or October 21, 1998) added a new section disapprove actions taken and plans DEPARTMENT OF HOUSING AND 33 to the United States Housing Act of submitted by PHAs in connection with URBAN DEVELOPMENT 1937 (Act) (42 U.S.C. 1437 et seq.). the required removal of certain units Section 33 of the Act governs the from the public housing stock and [Docket No. FR–4572–D–30] required conversion of developments provision of tenant-based or project- based assistance to the residents of such Redelegation of Authority to the from the public housing stock. Section developments pursuant to section 33 of Deputy Assistant Secretary for Public 533 of QHWRA also amended section 22 the United States Housing Act of 1937 Housing Investments of the Act. Section 22 of the Act governs voluntary conversion of developments and the implementing regulations at 24 AGENCY: Office of the Assistant from the public housing stock. The term CFR part 972, and to conduct all Secretary for Public and Indian conversion in this context means the activities related to such review, and Housing, HUD. removal of public housing units from approval or disapproval of such ACTION: Notice of redelegation of the inventory of a PHA, and the conversions. authority. provision of tenant-based, or project- 2. To review and approve or based assistance for the residents of the disapprove plans submitted by PHAs for SUMMARY: In this notice, the Assistant public housing being removed. the voluntary conversion of units from Secretary for Public and Indian Housing In addition to the PHA Agency Plan the public housing stock into tenant- redelegates to the Deputy Assistant requirements, HUD will review based or project-based assistance for the Secretary for the Office of Public separately plans for mandatory or tenants living in the units pursuant to Housing Investments authority to voluntary conversion of public housing section 22 of the United States Housing monitor and enforce implementation by stock. With respect to required Act of 1937 and implementing public housing agencies (PHAs) of conversions, HUD may (1) Identify regulations at 24 CFR part 972. section 33 of the United States Housing developments that PHAs have failed Within the Office of Public Housing Act of 1937, with respect to the review properly to include as falling within the Investments, the review of mandatory of their inventory of public housing statutory criteria, (2) ensure conversions and voluntary conversions will be units. The purpose of the review is to are carried out in cases where PHAs handled by the Special Applications identify developments (or parts of have failed to develop or implement Center.

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Section B. Authority to Further requirements for federal fleets imposed The spill occurred when subsidence in Redelegate by the Energy Policy Act of 1992 the coal slurry impoundment caused the The authority redelegated to the (EPAct). The lawsuit requested the coal slurry to enter a system of Deputy Assistant Secretary under this Court to order Interior and the other abandoned underground coal mine- notice may be redelegated within the federal agencies to comply with EPAct works. The coal slurry exited through a Office of Public Housing Investments. requirements and offset future vehicle mine-works surface portal at Gin Creek, purchases with the number of AFVs causing the release of the coal slurry Dated: January 23, 2003. necessary to bring them into compliance into a series of tributaries to the Powell Michael Liu, with the requirements of the EPAct. River. ‘‘Blackwater,’’ a mix of water, Assistant Secretary for Public and Indian Dated: January 27, 2003. coal fines, and clay, and associated Housing. contaminants, extended far P. Lynn Scarlett, [FR Doc. 03–2629 Filed 2–4–03; 8:45 am] downstream. The coal slurry spill Assistant Secretary—Policy, Management BILLING CODE 4210–33–P impacted fish, endangered freshwater and Budget. mussels, other benthic organisms, [FR Doc. 03–2707 Filed 2–4–03; 8:45 am] supporting aquatic habitat, and DEPARTMENT OF THE INTERIOR BILLING CODE 4310–RF–M designated critical habitat for two federally listed fish. Federally listed Office of the Secretary bats and migratory birds may have also DEPARTMENT OF THE INTERIOR been affected acutely due to a loss of a Notice of Availability of the Alternative Fish and Wildlife Service food supply, and chronically due to Fueled Vehicle (AFV) Reports for possible accumulation of contaminants Fiscal Year 1996 through Fiscal Year Notice of Availability of the Draft through the food chain. 2001 Restoration Plan and Environmental Under the authority of the Comprehensive Environmental AGENCY: Office of the Secretary, Assessment for the Lone Mountain Response, Compensation, and Liability Department of the Interior. Processing, Inc.; Coal Slurry Spill Act (CERCLA) of 1980 as amended, 42 ACTION: Notice of Availability of the Natural Resource Damage Assessment in Lee County, VA U.S.C. 9601 et. seq., ‘‘natural resource Alternative Fueled Vehicle (AFV) trustees may assess damages to natural Reports for Fiscal Year 1996 through AGENCY: Fish and Wildlife Service, resources resulting from a discharge of Fiscal Year 2001. Department of the Interior. oil or a release of a hazardous substance SUMMARY: The U.S. Department of the ACTION: Notice of availability. * * * and may seek to recover those Interior, Office of the Secretary, is damages.’’ Natural resource damage SUMMARY: The U.S. Fish and Wildlife issuing this notice in order to comply assessments (NRDA) are separate from Service (Service), on behalf of the with the Energy Policy Act of 1992, 42 the cleanup actions undertaken at a Department of the Interior (DOI), U.S.C. 13201 et seq. and the United hazardous waste or spill site, and announces the release for public review States District Court for the Northern provide a process whereby the natural of the Draft Restoration Plan and District of California’s order, in case resource trustees can determine the Environmental Assessment (RP/EA) for number C 02–0027 WHA, Center for proper compensation to the public for the Lone Mountain Processing, Inc. Biological Diversity, Bluewater Network injury to natural resources. The natural (LMPI) Coal Slurry Spill Natural and the Sierra Club v. Spencer resource damage assessment process Resource Damage Assessment in Lee Abraham, et al., that Federal agencies seeks to: (1) Determine whether injury County, Virginia. The RP/EA describes must place all alternative fueled vehicle to, or loss of, trust resources has the trustee’s proposal to restore natural data for Fiscal Years 1996–2001 on a occurred; (2) ascertain the magnitude of resources injured as a result of a release publicly accessible Web site. The the injury or loss; (3) calculate the of hazardous substances. purpose of this notice is to announce appropriate compensation for the injury, including the cost of restoration; and (4) the public availability of the Department DATES: Written comments must be develop a restoration plan that will of the Interior’s AFV reports for Fiscal submitted on or before March 15, 2002. restore, rehabilitate, replace, and/or Year 1996 through Fiscal Year 2001 at ADDRESSES: Requests for copies of the acquire equivalent resources for those the following Web site: http:// RP/EA may be made to: U.S. Fish and resources that were injured or lost. The www.doi.gov/pam Wildlife Service, Virginia Field Office, 6669 Short Lane, Gloucester, Virginia judicial consent decree dated March 5, FOR FURTHER INFORMATION CONTACT: 2001, requires that the DOI utilize Questions regarding the reports of the 23061. Written comments or materials regarding the Restoration and natural resource damages for AFV report Web site should be reimbursement of past natural resource addressed to the Office of Acquisition Compensation Determination Plan should be sent to the same address. damage assessment costs, and and Property Management [Attn: Willie restoration, replacement or acquisition Davis] 1849 C Street NW., Mail Stop FOR FURTHER INFORMATION CONTACT: John of endangered and threatened fishes and 5512, Washington, DC 20240, phone: Schmerfeld, U.S. Fish and Wildlife mussels located in the Powell River and 202–208–6352. Service, 6669 Short Lane, Gloucester, its watershed or restoration, SUPPLEMENTARY INFORMATION: The Virginia 23061. Interested parties may replacement or acquisition of their Earthjustice Environmental Law Clinic also call 804–693–6694, extension 107, habitats or ecosystems which support filed suit in federal court in California for further information. them, or restoration planning, on January 2, 2002 on behalf of the SUPPLEMENTARY INFORMATION: On implementation, oversight and Center for Biological Diversity, October 24, 1996, a failure in a coal monitoring. Bluewater Network and the Sierra Club slurry impoundment associated with a The DOI is the sole acting Federal against the Department of the Interior coal processing plant owned by LMPI in natural resource trustee for this case. and 16 other Federal agencies for failing Lee County, Virginia, resulted in the The DOI has designated the Northeast to comply with the alternative fueled release of six million gallons of coal Regional Director of the Service to act as vehicle (AFV) acquisition and reporting slurry to the Powell River watershed. its authorized official with regard to this

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case. This RP/EA has been developed by Assistant Secretary—Indian Affairs, on or before April 7, 2003. BLM will not the Service in order to address and Department of the Interior, through her necessarily consider any comments evaluate restoration alternatives related delegated authority, has approved the received after the above date. to natural resource injuries within the Tribal-State Compacts between the Ak- ADDRESSES: You may mail comments to: Powell River watershed. The purpose of Chin Community, Cocopah Indian Bureau of Land Management (WO–630), this RP/EA is to design and evaluate Tribe, Fort McDowell Yavapai Nation, Eastern States Office, 7450 Boston Blvd., possible alternatives that will restore, Fort Mojave Indian Tribe, Gila River Springfield, Virginia 22153. rehabilitate, replace, or acquire natural Indian Community, Hualapai Indian You may send comments via Internet resources and the services provided by Tribe, Havasupai Indian Tribe, Kaibab to: [email protected]. Please those resources that approximate those Band of Paiute Indians, Navajo Nation, include ‘‘ATTN: 1004–0009’’ and your injured as a result of the spill using Pascua Yacqui Tribe, Quechan Indian name and return address in your funds collected as natural resource Tribe, Salt River Prima-Maricopa Indian Internet message. damages for injuries, pursuant to the Community, San Carlos Apache Tribe, You may deliver comments to the CERCLA. This RP/EA describes the Tohono O’odham Nation, Tonto Apache Bureau of Land Management, affected environment, identifies Tribe, White Mountain Apache Tribe, Administrative Record, Room 401, 1620 potential restoration alternatives and and Yavapai-Apache Nation and the L Street, NW., Washington, DC. their plausible environmental State of Arizona. All comments will be available for consequences, and describes the EFFECTIVE DATE: February 5, 2003. public review at the L Street address proposed preferred alternative. during regular business hours (7:45 a.m. FOR FURTHER INFORMATION CONTACT: Interested members of the public are to 4:15 p.m.), Monday through Friday. George T. Skibine, Director, Office of invited to review and comment on the Indian Gaming Management, Bureau of FOR FURTHER INFORMATION CONTACT: You RP/EA. Copies of the RP/EA are Indian Affairs, Washington, DC 20240, may contact Alzata L. Ransom, Realty available for review at the Service’s (202) 219–4066. Use Group, on (202) 452–7772 Virginia Field Office in Gloucester, (Commercial or FTS). Persons who use Virginia and at the Service’s Dated: January 24, 2003. a telecommunications device for the Southwestern Virginia Field Office Aurene M. Martin, deaf (TDD) may call the Federal located at 330 Cummings Street, Suite Acting Assistant Secretary—Indian Affairs. Information Relay Service (FIRS) at 1– A, Abingdon, Virginia 24210. Written [FR Doc. 03–2787 Filed 2–4–03; 8:45 am] 800–877–8330, 24 hours a day, seven comments will be considered and BILLING CODE 4310–4N–M days a week, to contact Ms. Ransom. addressed in the final RP/EA. SUPPLEMENTARY INFORMATION: 5 CFR Author: The primary author of this 1320.12(a) requires BLM to provide 60- notice is John Schmerfeld, U.S. Fish & DEPARTMENT OF THE INTERIOR day notice in the Federal Register Wildlife Service, Virginia Field Office, concerning a collection of information 6669 Short Lane, Gloucester, Virginia Bureau of Land Management contained in regulations found in 43 23061. [WO–350–1430–PF–24 1A] CFR 2920 to solicit comments on: Authority: The authority for this action is (a) Whether the proposed collection of the Comprehensive Environmental Response, Extension of Approved Information information is necessary for the proper Compensation and Liability Act (CERCLA) of Collection, OMB Control Number 1004– performance of the functions of the 1980 as amended, commonly known as 0009 agency, including whether the Superfund (42 U.S.C. 9601 et seq.), and the information will have practical utility; Natural Resource Damage Assessment AGENCY: Bureau of Land Management, (b) The accuracy of the agency’s Regulations found at 43 CFR part 11. Interior. estimate of the burden of the proposed Dated: January 17, 2003. ACTION: Notice and request for collection of information, including the Mamie A. Parker, comments. validity of the methodology and Regional Director, Region 5, Fish and Wildlife assumptions used; SUMMARY: In accordance with the Service, Department of the Interior, (c) Ways to enhance the quality, Designated Authorized Official. Paperwork Reduction Act of 1995, the utility, and clarity of the information to Bureau of Land Management (BLM) is [FR Doc. 03–2649 Filed 2–4–03; 8:45 am] be collected; and requesting the Office of Management BILLING CODE 4310–55–P (d) Ways to minimize the burden of and Budget (OMB) to extend an existing the collection of information on those approval to collect certain information who are to respond, including through DEPARTMENT OF THE INTERIOR from applicants who wish to acquire a the use of appropriate automated, Land Use Authorization (From 2920–1) electronic, mechanical, or other Bureau of Indian Affairs on public lands under the Federal Land technological collection techniques or Policy and Management Act (FLPMA) of Indian Gaming other forms of information technology. 1976. The regulations at 43 CFR part The FLPMA of 1976 (43 U.S.C. 1732, AGENCY: Bureau of Indian Affairs, 2920 provide for non-Federal use of 1740), provides for issuing land use Interior. bureau administered land via lease or authorizations which may include permit. Uses include agriculture, trade, ACTION: Notice of approved Tribal-State leases, permits, or easements to eligible or manufacturing concerns and business Compacts. proponents. The BLM implements the uses such as outdoor recreation provisions of this requirement under 43 SUMMARY: Under Section 11 of the concession. BLM will determine the CFR 2922.2–1 which require submitting Indian Gaming Regulatory Act of 1988 validity of uses proposed by private the ‘‘Land Use Application and Permit,’’ (IGRA), Public Law 100–497, 25 U.S.C. individuals and other qualified Form 2920–1. BLM uses the information 2710, the Secretary of the Interior shall proponents from information provided collected on the application to: publish, in the Federal Register, notice on the Land Use Application and Permit (1) Identify the proposed land use and of approved Tribal-State Compacts for Form. activities; the purpose of engaging in Class III DATES: You must submit your comments (2) Describe all facilities for which gaming activities on Indian lands. The to BLM at the appropriate address below authorization is sought;

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(3) Identify the location; and is identified which could gather the above, we estimate the public reporting (4) Determine a schedule for information at a lesser burden. If the burden of each provision for the construction and to identify access applicant fails to provide the required information collection. We estimate the requirements. information, BLM must reject the number of responses per year is 641 and Since the information collected is application. a total annual burden of 3,140 hours. unique to each application, no other Based on our experience The table below summaries our suitable means of information collection administering the activities described estimates:

Hours per No. of Burden Requirement response respondents hours

Permits ...... 1 619 619 Leases ...... 120 21 2,520 Easements ...... 1 1 1

Totals ...... 641 3,140

BLM will summarize all responses to You may send comments via Internet gives the Secretary the discretion to this notice and include them in the to: [email protected]. Please permit the free use of vegetative or request for OMB approval. All include ‘‘ATTN: 1004–0001’’ and your mineral materials for use other than comments will become a matter of name and return address in your commercial or industrial purposes or public record. Internet message. resale. The Secretary of the Interior may Dated: January 31, 2003. You may deliver comments to the also permit claimants the free use of Bureau of Land Management, Michael H. Schwartz, vegetative or mineral materials. Administrative Record, Room 401, 1620 BLM uses the information provided Bureau of Land Management, Information L Street, NW., Washington, DC. Collection Clearance Officer. by the applicant(s) to: All comments will be available for (1) Maintain an inventory of [FR Doc. 03–2689 Filed 2–4–03; 8:45 am] public review at the L Street address vegetative and mineral information; and BILLING CODE 4310–84–M during regular business hours (7:45 a.m. (2) Adjudicate your rights to to 4:15 p.m.) Monday through Friday. vegetative and mineral resources. DEPARTMENT OF THE INTERIOR FOR FURTHER INFORMATION CONTACT: You An applicant must file an application may contact John C. Stewart, WO–230, for a permit before removing any Bureau of Land Management on (202) 452–7759 (Commercial or FTS). vegetative or mineral resources from the Persons who use a telecommunication public lands. If BLM did not collect this [WO–230–1020–PB–24 1A] device for the deaf (TDD) may call the information, we could not process Extension of Approved Information Federal Information Relay Service applications. Based upon BLM experience Collection, OMB Control Number 1004– (FIRS) on 1–800–877–8330, 24 hours a administering the activities described 0001 day, seven days a week, to contact Mr. Stewart. above, we process approximately 450 AGENCY: Bureau of Land Management, SUPPLEMENTARY INFORMATION: 5 CFR applications each year. The public Interior. 1320.12(a) requires that we provide a reporting information collection burden ACTION: Notice and request for 60-day notice in the Federal Register takes 30 minutes. We estimate 450 comments. concerning a collection of information responses per year and a total annual to solicit comments on: burden of 225 hours. SUMMARY: In accordance with the (a) Whether the collection of BLM will summarize all responses to Paperwork Reduction Act of 1995, the information is necessary for the proper this notice and include them in the Bureau of Land Management (BLM) is functioning of the agency, including request for OMB renewal of this form. requesting the Office of Management whether the information will have All comments will become a matter of and Budget (OMB) to extend an existing practical utility; public record. approval to collect information from the (b) The accuracy of our estimates of Dated: January 31, 2003. general public interested in obtaining the information collection burden, free vegetative or mineral material from Michael H. Schwartz, including the validity of the Bureau of Land Management, Information public lands. BLM uses Form 5510–1, methodology and assumptions we use; Free Use Application and Permit Collection Clearance Officer. (c) Ways to enhance the quality, [FR Doc. 03–2690 Filed 2–4–03; 8:45 am] (Vegetative or Mineral Materials) to utility, and clarity of the information BILLING CODE 4310–84–P collect this information. This collected; and information allows BLM to properly (d) Ways to minimize the information manage and accurately track the collection burden on those who are to DEPARTMENT OF THE INTERIOR disposal of these materials. respond, including the use of DATES: You must submit your comments appropriate automated, electronic, Bureau of Land Management to BLM at the address below on or mechanical, or other technological [WO–310–1310–PB–24 1A] before April 7, 2003. BLM will not collection techniques or other forms of necessarily consider any comments information technology. Extension of Approved Information received after the above date. BLM uses Form 5510–1, Free Use Collection, OMB Control Number 1004– ADDRESSES: You may mail comments to: Application and Permit (Vegetative or 0137 Bureau of Land Management, (WO– Mineral Material), under 43 CFR 5510 to 630), Eastern States Office, 7450 Boston collect this information. The PL–167, AGENCY: Bureau of Land Management, Blvd., Springfield, Virginia 22153. Surface Resources Act of July 23, 1955, Interior.

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ACTION: Notice and request for (d) Ways to minimize the burden of Dated: January 31, 2003. comments. the collection of information on those Michael H. Schwartz, who are to respond, including the use Bureau of Land Management, Information SUMMARY: In accordance with the of appropriate automated, electronic, Collection Clearance Officer. Paperwork Reduction Act of 1995, the mechanical, or other technological [FR Doc. 03–2691 Filed 2–4–03; 8:45 am] Bureau of Land Management (BLM) is collection techniques or other forms of BILLING CODE 4310–84–M requesting the Office of Management information technology. and Budget (OMB) to extend an existing The Mineral Leasing Act of 1920 (30 approval to collect certain information U.S.C. 181 et seq.), as amended; the DEPARTMENT OF THE INTERIOR from oil and gas well operators Mineral Leasing Act for Acquired Lands concerning operations performed on of 1947 (30 U.S.C. 351–359), as Bureau of Land Management each well, using the Well Completion or amended; the various Indian leasing [WO–310–1310–PB–24–1A] Recompletion Report and Log (Form acts; the National Environmental Policy 3160–4). We use the information to Act of 1969 (42 U.S.C. 4321, et seq.), as Extension of Approved Information ensure recording of an accurate, up-to- amended; and other environmental laws Collection, OMB Control Number 1004– date, and detailed description of well govern onshore oil and gas operations. 0136 completion or recompletion operations BLM’s implementing regulations are at and compliance with approved plans for 43 CFR part 3160. The regulation 43 AGENCY: Bureau of Land Management, conservation of the resources and CFR 3162.4–1(b) requires an oil and gas Interior. protection of the environment. well operator to submit a Well ACTION: Notice and request for DATES: You must submit your comments Completion or Recompletion Report and comments. to BLM at the address below on or Log (Form 3160–4) within 30 days after SUMMARY: In accordance with the before April 7, 2003. BLM will not well completion. The information that Paperwork Reduction Act of 1995, the necessarily consider and comments the operator submits to us includes the Bureau of Land Management (BLM) is received after the above date. type of work, surface and subsurface requesting the Office of Management ADDRESSES: You may mail comments to: location, start and completion dates, and Budget (OMB) to extend an existing Bureau of Land Management, (WO– producing interval, casing, date of first approval to collect certain information 630), Eastern States Office, 7450 Boston production, and initial well potential. from oil and gas operators who submit Blvd., Springfield, Virginia 22153. The operator certifies the accuracy and an Application for Permit to Drill (Form You may send comments via Internet completeness of the information by 3160–3). We use the information to to: [email protected]. Please signature and date. review technical and environmental include ‘‘ATTN: 1004–0137’’ and your BLM uses the information for factors in the process of approving name and return address in your inspection and reservoir management proposed oil and gas drilling operations. Internet message. purposes. Technical data provide means You may deliver comments to the to evaluate the appropriateness of DATES: You must submit your comments Bureau of Land Management, specific drilling and completion to BLM at the address below on or Administrative Record, Room 401, 1620 techniques. The data enable us to before April 7, 2003. BLM will not L Street, NW., Washington, DC. monitor the engineering aspects of oil necessarily consider any comments All comments will be available for and gas production. The form received after the above date. public review at the L Street address documents that operations were carried ADDRESSES: You may mail comments to: during regular business hours (7:45 a.m. out under the terms and provisions of Bureau of Land Management, (WO– to 4:15 p.m.), Monday through Friday. the lease in a technically and 630), Eastern States Office, 7450 Boston FOR FURTHER INFORMATION CONTACT: You environmentally safe manner. We Blvd., Springfield, Virginia 22153. may contact Barbara Gamble, Fluid would lack the necessary information to You may send comments via Internet Minerals Group, on (202) 452–0338 monitor compliance of well activity and to: [email protected]. Please (Commercial or FTS). Persons who use operations that were performed on wells include ‘‘ATTN: 1004–0136’’ and your a telecommunication device for the deaf if we did not collect this information. name and return address in your (TDD) may call the Federal Information Based on our experience Internet message. Relay Service on 1–800–877–8330, 24 administering the onshore oil and gas You may deliver comments to the hours a day, seven days a week, to program, we estimate the public Bureau of Land Management, contact Ms. Gamble. reporting burden for the information Administrative Record, Room 401, 1620 L Street, NW., Washington, DC. SUPPLEMENTARY INFORMATION: 5 CFR collected is 1 hour per response. The All comments will be available for 1320.12(a) requires that we provide a information collected is already public review at the L Street address 60-day notice in the Federal Register maintained by respondents for their during regular business hours (7:45 a.m. concerning a collection of information own recordkeeping purposes and must to 4:15 p.m.), Monday through Friday. to solicit comments on: only be entered on the form. (a) Whether the collection of Respondents are operators of oil and gas FOR FURTHER INFORMATION CONTACT: You information is necessary for the proper wells. The frequency of response varies may contact Barbara Gamble, Fluid functioning of the agency, including depending on the type of activity Minerals Group, on (202) 452–0338 whether the information has practical conducted at oil and gas wells. We (Commercial or FTS). Persons who use utility; estimate the number of responses per a telecommunication device for the deaf (b) The accuracy of our estimates of year is 2,200 and the total annual (TDD) may call the Federal Information the information collection burden, burden is 2,200 hours. Relay Service (FIRS) on 1–800–877– including the validity of the BLM will summarize all responses to 8330, 24 hours a day, seven days a methodology and assumptions we use; this notice and include them in the week, to contact Ms. Gamble. (c) Ways to enhance the quality, request for OMB approval. All SUPPLEMENTARY INFORMATION: 5 CFR utility, and clarity of the information comments will become a matter of 1320.12(a) requires that we provide a collected; and public record. 60-day notice in the Federal Register

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concerning a collection of information contingency plans. Operators generally include ‘‘ATTN: 1004–0135’’ and your to solicit comments on: submit these items as attachments to name and return address in your (a) Whether the proposed collection of Form 3160–3. We include the burden Internet message. information is necessary for the proper hours for such attachments under OMB You may deliver comments to the functioning of the agency, including control number 1004–0134, which Bureau of Land Management, whether the information will have covers all nonform requirements of 43 Administrative Record, Room 401, 1620 practical utility; CFR part 3160. L Street, NW., Washington, DC. (b) The accuracy of our estimates of Based on our experience All comments will be available for the information collection burden, administering the onshore oil and gas public review at the L Street address including the validity of the program, we estimate the public during regular business hours (7:45 a.m. methodology and assumptions we use; reporting burden for the information to 4:15 p.m.), Monday through Friday. (c) Ways to enhance the quality, collected is 30 minutes per response. FOR FURTHER INFORMATION CONTACT: You utility, and clarity of the information Respondents are operators of oil and gas may contact Barbara Gamble, Fluid collected; and wells. The frequency of response varies Minerals Group, on (202) 452–0338 (d) Ways to minimize the burden of depending on the operations. We the collection of information on those (Commercial or FTS). Persons who use estimate the number of responses per a telecommunication device for the deaf who are to respond, including the use year is 4,000 and the total annual of appropriate automated, electronic, (TDD) may call the Federal Information burden is 2,000 hours. Relay Service (FIRS) on 1–800–877– mechanical, or other technological BLM will summarize all responses to collection techniques or other forms of 8330, 24 hours a day, seven days a this notice and include them in the week, to contact Ms. Gamble. information technology. request for OMB approval. All The Mineral Leasing Act of 1920 (30 SUPPLEMENTARY INFORMATION: 5 CFR comments will become a matter of U.S.C. 181 et seq.), as amended; the 1320.12(a) requires that we provide a public record. Mineral Leasing Act for Acquired Lands 60-day notice in the Federal Register of 1947 (30 U.S.C. 351–359), as Dated: January 31, 2003. concerning a collection of information amended; the various Indian leasing Michael H. Schwartz, to solicit comments on: acts; the National Environmental Policy Bureau of Land Management, Information (a) Whether the proposed collection of Act of 1969 (42 U.S.C. 4321 et seq.), as Collection Clearance Officer. information is necessary for the proper amended, and other environmental laws [FR Doc. 03–2692 Filed 2–3–03; 8:45 am] functioning of the agency, including govern onshore oil and gas operations. BILLING CODE 4310–84–M whether the information will have BLM’s implementing regulations are at practical utility; 43 CFR part 3160. The regulation 43 (b) The accuracy of our estimates of CFR 3162.3–1 requires an oil and gas DEPARTMENT OF THE INTERIOR the information collection burden, well operator to submit an Application including the validity of the for Permit to Drill (Form 3160–3) for Bureau of Land Management methodology and assumptions we use; each well at least 30 days before any [WO–310–1310–PB–24 1A] (c) Ways to enhance the quality, drilling operations or surface utility, and clarity of the information disturbances are commenced. On the Extension of Approved Information collected; and form, we request respondents to provide Collection, OMB Control Number 1004– (d) Ways to minimize the burden of information describing the proposed 0135 the collection of information on those activities, including the type of well and who are to respond, including the use work anticipated, the operator’s identity AGENCY: Bureau of Land Management, of appropriate automated, electronic, and address, surface and bottom-hole Interior. mechanical, or other technological location of the proposed action, and ACTION: Notice and request for collection techniques or other forms of various kinds of technical data, comments. information technology. depending on the type of activity The Federal Oil and Gas Royalty SUMMARY: In accordance with the proposed. Management Act of 1982 (30 U.S.C. We use the data for review and Paperwork Reduction Act of 1995, the 1701 et seq.); the Mineral Leasing Act of approval of proposed drilling Bureau of Land Management (BLM) is 1920, as amended (30 U.S.C. 181 et operations. The review ensures that all requesting the Office of Management seq.); the Mineral Leasing Act for actions are in compliance with policies and Budget (OMB) to extend an existing Acquired Lands of 1947, as amended and regulations and conducted in a approval to collect information from (30 U.S.C. 351–359); the various Indian technically and environmentally sound those persons who submit a Form 3160– leasing acts; and the National manner. We use technical data about the 5, Sundry Notices and Reports on Wells. Environmental Policy Act of 1969, as drilling for both permit approval and We use the information to approve amended (42 U.S.C. 4321 et seq.), and subsequent on-the-ground review and proposed operations and ensure regulation 43 CFR 3162.3–2 require oil inspection after actual drilling begins. compliance with terms and conditions and gas operators on Federal and We gather information on prospective of existing approvals. restricted Indian lands to submit Form production of resources so that all DATES: You must submit your comments 3160–5, Sundry Notices and Reports on potential impacts can be evaluated to BLM at the address below on or Wells, in order to obtain authority to during the approval process. before April 7, 2003. BLM will not perform specific additional operations If we did not collect this information, necessarily consider any comments on a well and to report the completion BLM would not have proper assurance received after the above date. of such work. In addition, 43 CFR that drilling and associated activities are ADDRESSES: You may mail comments to: 3162.5–1 requires the operator to technically and environmentally Bureau of Land Management, (WO– exercise diligence when disposing of feasible to ensure proper conservation of 630), Eastern States Office, 7450 Boston produced waters. We require specific the resources. We also require operators Blvd., Springfield, Virginia 22153. data concerning modifications to to prepare certain items such as drilling You may send comments via Internet existing wells or construction plans, diagrams and maps, and to: [email protected]. Please requirements of produced water

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disposal pits. The regulation 43 CFR office 4:30 p.m., Thursday, February 6 Interior (OMB Control Number 1010– 3162.3–2 divides the proposed actions and reopen at the new office on 0103), 725 17th Street, NW., into three categories: Monday, February 10. Washington, DC 20503. Mail or hand- (1) Actions that require submitting the The BLM encourages the public to carry a copy of your comments to form for approval prior to beginning arrange any work with BLM before Sharron L. Gebhardt, Regulatory work and again after completion of February 6 or after February 10. The Specialist, Minerals Management operations; telephone numbers will remain the Service, Minerals Revenue Management, (2) Actions that require submitting the same and are scheduled to be back on P.O. Box 25165, MS 320B2, Denver, form only after completion; and line on Monday. Colorado 80225. If you use an overnight (3) Actions that do not require Directions to the new BLM office: courier service, our courier address is reporting. from I–215 take the Alessandro exit and Building 85, Room A–614, Denver The operator or its agent must submit go east two miles, turn right on Federal Center, Denver, Colorado 80225. the data to us. The data pertains to Frederick, right on Calle San Juan De You may also email your comments to modifying operations conducted under Los Lagos, and the BLM office will be us at [email protected]. Include the terms and provisions of an oil and on the left; or from I–60 take the Pigeon the title of the information collection gas lease (a contractual agreement Pass exit, which becomes Frederick, go and the OMB Control Number in the between a lessee and the United States) south three miles, and turn right on ‘‘Attention’’ line of your comment. Also for Federal or restricted Indian lands. In Calle San Juan De Los Lagos. The new include your name and return address. the case of a produced water disposal address is Bureau of Land Management, Submit electronic comments as an pit approval, the data provides the California Desert District Office, 22835 ASCII file avoiding the use of special technical aspects of pit design to allow Calle San Juan De Los Lagos, Moreno characters and any form of encryption. for sufficient water containment, which Valley, 92553. If you do not receive a confirmation that prevents unnecessary releases of FOR MORE INFORMATION CONTACT: Doran we have received your e-mail, contact produced water into the environment. Sanchez, BLM California Desert District Ms. Gebhardt at (303) 231–3211. Based on our experience managing External Affairs, at (909) 697–5220. FOR FURTHER INFORMATION CONTACT: the activities described above, we Dated: January 30, 2003. Sharron L. Gebhardt, telephone (303) estimate the public reporting burden for Linda Hansen, 231–3211, FAX (303) 231–3385, email the information is 25 minutes per [email protected]. You may District Manager. response. Respondents are operators also contact Sharron Gebhardt to obtain and operating rights owners of Federal [FR Doc. 03–2648 Filed 2–4–03; 8:45 am] a copy at no cost of the form and and Indian (except Osage) oil and gas BILLING CODE 4310–40–U regulations that require the subject leases. The frequency of response varies collection of information. depending on the type of activities DEPARTMENT OF THE INTERIOR SUPPLEMENTARY INFORMATION: conducted at oil and gas wells and on Title: 30 CFR Part 206, Subpart E— the operations. We estimate 34,000 Minerals Management Service Indian Gas (Form MMS–4411, Safety notices filed annually and a total annual Net Report). burden of 14,167 hours. Agency Information Collection OMB Control Number: 1010–0103. BLM will summarize all responses to Activities: Submitted for Office of Bureau Form Number: Form MMS– this notice and include them in the Management and Budget (OMB) 4411. request for OMB approval. All Review; Comment Request Abstract: The Department of the comments will become a matter of Interior (DOI) is responsible for matters public record. AGENCY: Minerals Management Service relevant to mineral resource Dated: January 31, 2003. (MMS), Interior. development on Federal and Indian Michael H. Schwartz, ACTION: Notice of an extension of a lands and the Outer Continental Shelf Bureau of Land Management Information currently approved information (OCS). The Secretary of the Interior Collection Clearance Officer. collection (OMB Control Number 1010– (Secretary) is responsible for managing [FR Doc. 03–2693 Filed 2–4–03; 8:45 am] 0103). the production of minerals from Federal and Indian lands and the OCS, BILLING CODE 4310–84–M SUMMARY: To comply with the collecting royalties from lessees who Paperwork Reduction Act of 1995 produce minerals, and distributing the (PRA), we are notifying the public that DEPARTMENT OF THE INTERIOR funds collected in accordance with we have submitted to OMB an applicable laws. The Secretary has an Bureau of Land Management information collection request (ICR) to Indian trust responsibility to manage renew approval of the paperwork Indian lands and seek advice and [CA–610–02–1220–AA] requirements in the regulations under information from Indian beneficiaries. 30 CFR Part 206, Subpart E—Indian Gas. Notice of Relocation of the Bureau of MMS performs the royalty management This notice also provides the public a functions and assists the Secretary in Land Management’s California Desert second opportunity to comment on the District Office in Riverside, CA carrying out DOI’s Indian trust paperwork burden of these regulatory responsibility. SUMMARY: Notice is hereby given that requirements. The ICR is titled ‘‘30 CFR On August 10, 1999, MMS published the Bureau of Land Management’s Part 206, Subpart E—Indian Gas (Form in the Federal Register (64 FR 43506) a (BLM) California Desert District Office is MMS–4411, Safety Net Report)’’. final rulemaking titled ‘‘Amendments to moving from its current location at 6221 DATES: Submit written comments on or Gas Valuation Regulations for Indian Box Springs Boulevard in Riverside to a before March 7, 2003. Leases,’’ with an effective date of new building located at 22835 Calle San ADDRESSES: Submit written comments January 1, 2000. These regulations are Juan De Los Lagos in Moreno Valley, directly to the Office of Information and codified at 30 CFR Part 206, Subpart E. California the week of February 3. The Regulatory Affairs, OMB, Attention: Form MMS–4411, Safety Net Report, BLM will officially close the Riverside Desk Officer for the Department of the governs the valuation for royalty

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purposes of natural gas produced from will not require detailed calculations for her duties and may also result in loss of Indian leases. In 30 CFR 206.172(e), the costs of transportation. By June 30 royalty payments to the Indian lessor MMS requires that lessees submit Form following any calendar year, the lessee due to royalties not being collected on MMS–4411 when gas production from calculates a safety net price for each prices received under higher priced an Indian lease is sold beyond the first month of the previous calendar year. long-term sales contracts. Proprietary index pricing point. The gas regulations Lessees must calculate the safety net information submitted is protected, and apply to all gas production from Indian prices for each index zone where the there are no questions of a sensitive (tribal or allotted) oil and gas leases lessee has an Indian lease and the gas nature included in this information (except leases on the Osage Indian is sold beyond the first index pricing collection. Reservation). point. The safety net price will capture We have also changed the title of this Form MMS–4411 ensures Indian the significantly higher values for sales ICR from ‘‘Safety Net Report’’ to ‘‘30 mineral lessors receive the maximum occurring beyond the index point. The CFR part 206, subpart E—Indian Gas revenues from mineral resources on lessee will submit its safety net prices (Form MMS–4411, Safety Net Report),’’ their land consistent with the to MMS annually (by June 30) using to clarify the regulatory language we are Secretary’s trust responsibility and lease Form MMS–4411. covering under 30 CFR Part 206. terms. It permits lessees to comply with We are also revising this ICR to Frequency: Annually. the regulatory requirements at the time include reporting requirements that Estimated Number and Description of that royalties are due. were inadvertently overlooked when the Respondents: 29 Indian lessees/lessors. The safety net calculation establishes final rule was published. See the chart Estimated Annual Reporting and the minimum value, for royalty below for these requirements and Recordkeeping ‘‘Hour’’ Burden: 1,012 purposes, of natural gas production associated burden hours. These hours. from Indian leases. This reporting reporting requirements are rare and The following chart details the requirement will assist the Indian lessor unusual circumstances where the individual components and estimated in receiving all the royalties that are due standard valuation procedures set out in hour burdens. In calculating the and aid MMS in its compliance efforts. the Indian gas valuation rule are not burdens, we assumed that respondents The safety net price is calculated using appropriate. perform certain requirements in the prices received for gas sold downstream MMS is requesting OMB’s approval to normal course of their activities. of the first index pricing point. It will continue to collect this information. Not Therefore, we consider these to be usual include only the lessee’s or the lessee’s collecting this information would limit and customary and took that into affiliate’s arm’s-length sales price, and it the Secretary’s ability to discharge his/ account in estimating the burden.

Annual num- 30 CFR section Reporting requirement Burden hours ber of re- Annual burden per response sponses hours

206.172(e)(6)(i) and (iii) ... You must report the safety net price for each index zone to 25 24 600 MMS on Form MMS–4411, Safety Net Report, no later than June 30 following each calendar year * * * MMS may order you to amend your safety net price within one year from the date your Form MMS–4411 is due or is filed, whichever is later. 206.172(f)(1)(ii), (2), and An Indian tribe may ask MMS to exclude some or all of its 40 1 40 (3). leases from valuation under this section * * * If an Indian tribe requests exclusion from an index zone for less than all of its leases, MMS will approve the request only if the excluded leases may be segregated into one or more groups based on separate fields within the reservation * * * An In- dian tribe may ask MMS to terminate exclusion of its leases from valuation under this section * * * The Indian tribe’s request to MMS under either paragraph (f)(1) or (2) of this section must be in the form of a tribal resolution. 206.174(f) ...... You may ask MMS for guidance in determining value. You may 40 1 40 propose a valuation method to MMS. Submit all available data related to your proposal and any additional information MMS deems necessary. 206.175(d)(4) ...... You may request MMS approval of other methods for deter- 20 1 20 mining the quantity of residue gas and gas plant products al- locable to each lease.

Transportation Allowances

206.178(a)(1)(i) ...... You are required to submit to MMS a copy of your arm’s-length 8216 transportation contract(s) and all subsequent amendments to the contract(s) within 2 months of the date MMS receives your report which claims the allowance on the Form MMS– 2014. 206.178(a)(2)(i) and (ii) .... * * * you cannot take an allowance for the costs of transporting 20 1 20 lease production that is not royalty bearing without MMS approval, or without lessor approval on tribal leases. * * * As an alternative to paragraph (a)(2)(i), * * * you may propose to MMS a cost allocation method based on the values of the products transported.

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Annual num- 30 CFR section Reporting requirement Burden hours ber of re- Annual burden per response sponses hours

206.178(a)(3)(i) and (ii) .... If your arm’s-length transportation contract includes both gas- 40 1 40 eous and liquid products and the transportation costs attributable to each cannot be determined from the contract, you must propose an allocation procedure to MMS. You are required to submit all relevant data to support your allocation proposal. 206.178(b)(2)(iv) ...... * * * you may not later elect to change to the other alternative 20 1 20 without MMS approval. 206.178(b)(2)(iv)(A) ...... Once you make an election * * * you may not change methods 20 1 20 without MMS approval. 206.178(b)(3)(i) ...... Except as provided in this paragraph, you may not take an al- 40 1 40 lowance for transporting a product that is not royalty bearing without MMS approval. 206.178(b)(3)(ii) ...... As an alternative to the requirements of paragraph (b)(3)(i) of See 206.178(a)(2)(ii). this section, you may propose to MMS a cost allocation method based on the values of the products transported. 206.178(b)(5) ...... If you transport both gaseous and liquid products through the See 206.178(a)(3)(i) & (ii). same transportation system, you must propose a cost allocation procedure to MMS. . . . You are required to submit all relevant data to support your proposal.

Processing Allowances

206.180(a)(1)(i) ...... You are required to submit to MMS a copy of your arm’s-length 8216 processing contract(s) and all subsequent amendments to the contract(s) within 2 months of the date MMS receives your first report that deducts the allowance on the Form MMS– 2014. 206.180(a)(3) ...... If your arm’s-length processing contract includes more than one 40 1 40 gas plant product and the processing costs attributable to each product cannot be determined from the contract, you must propose an allocation procedure to MMS * * * You are required to submit all relevant data to support your proposal. 206.180(b)(2)(iv) ...... After you elect to use either method [depreciation with a return 20 1 20 on undepreciable capital investment or a return on depre- ciable capital investment] for a processing plant, you may not later elect to change to the other alternative without MMS approval. 206.180(b)(2)(iv)(A) ...... Once you make an election, you may not change [depreciation 20 1 20 or unit of production] methods without MMS approval. 206.180(b)(3) ...... Your processing allowance under this paragraph (b) must be 20 1 20 determined based upon a calendar year or other period if you and MMS agree to an alternative. 206.181(c) ...... A proposed comparable processing fee submitted to either the 40 1 40 Tribe and MMS (for tribal leases) or MMS (for allotted leases) with your supporting documentation submitted to MMS. If MMS does not take action on your proposal within 120 days, the proposal will be deemed to be denied and subject to appeal to the MMS Director under 30 CFR part 290.

Total ...... 41 1,012

Estimated Annual Reporting and consult with members of the public and minimize the burden on the Recordkeeping ‘‘Non-hour Cost’’ affected agencies concerning each respondents, including the use of Burden: We have identified no ‘‘non- proposed collection of information automated collection techniques or hour’’ cost burdens. ***.’’ Agencies must specifically other forms of information technology. Public Disclosure Statement: The PRA solicit comments to: (a) Evaluate To comply with the public (44 U.S.C. 3501, et seq.) provides that an whether the proposed collection of agency may not conduct or sponsor, and information is necessary for the agency consultation process, we published a a person is not required to respond to, to perform its duties, including whether Federal Register Notice (67 FR 66658) a collection of information unless it the information is useful; (b) evaluate on November 1, 2002, announcing that displays a currently valid OMB Control the accuracy of the agency’s estimate of we would submit this ICR to OMB for Number. the burden of the proposed collection of approval. The notice provided the Comments: Section 3506(c)(2)(A) of information; (c) enhance the quality, required 60-day comment period. We the PRA requires each agency ‘‘* * * to usefulness, and clarity of the received no comments in response to provide notice * * * and otherwise information to be collected; and (d) the notice.

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If you wish to comment in response for Cuyahoga Valley National Park, Ohio leases to private individuals for the to this notice, you may send your (hereafter ‘‘the Park’’). purpose of conducting sustainable comments to the offices listed under the DATES: There will be a 60-day public agricultural activities. Two additional ADDRESSES section of this notice. OMB review period for comments on this action alternatives and a no action has up to 60 days to approve or document. Comments on the DEIS must alternative are evaluated in this EIS. disapprove the information collection be received no later than 60-days after Persons wishing to comment may do but may respond after 30 days. the Environmental Protection Agency so by any one of several methods. They Therefore, to ensure maximum publishes its notice of availability in the may attend the open houses noted consideration, OMB should receive Federal Register. Public open houses for above. They may mail comments to public comments by March 7, 2003. information about, or to make comment Superintendent, Cuyahoga Valley Public Comment Policy. We will post on, the DEIS will be announced in the National Park, 15610 Vaughn Road, all comments in response to this notice local media and the Park’s web site Brecksville, OH 44141. They also may on our Web site at http:// when they are scheduled. Information comment via e-mail to _ www.mrm.mms.gov/Laws_R_D/InfoColl/ about meeting time and place will be cuav [email protected] (include InfoColCom.htm. We will also make available by contacting the Park’s name and return address in the e-mail copies of the comments available for communications center at 440–526– message). Finally, they may hand- public review, including names and 5256 or visiting the Park’s web site at: deliver comments to Park Headquarters, addresses of respondents, during regular http://www.nps.gov/cuva/management/ Cuyahoga Valley National Park, 15610 business hours at our offices in rmprojects/ruraleis/. Vaughn Road, Brecksville, OH 44141. Lakewood, Colorado. Individual ADDRESSES: Copies of the DEIS are The NPS’ practice is to make respondents may request that we available by request by writing to comments, including names and home withhold their home address from the Superintendent, Cuyahoga Valley addresses of respondents, available for public record, which we will honor to National Park, 15610 Vaughn Road, public review during regular business the extent allowable by law. There also Brecksville, OH 44141, by phone 440– hours. Individual respondents may may be circumstances in which we 546–5903, or by e-mail request we withhold their home address would withhold from the rulemaking [email protected]. A from the record, which we will honor to record a respondent’s identity, as downloadable on-line version of the the extent allowable by law. There also allowable by law. If you request that we document is available at: http:// may be circumstances, in which we withhold your name and/or address, www.nps.gov/cuva/management/ would withhold from the record a state this prominently at the beginning rmprojects/ruraleis/. respondent’s identity, as allowable by of your comment. However, we will not FOR FURTHER INFORMATION CONTACT: law. If you wish us to withhold your consider anonymous comments. We Superintendent, Cuyahoga Valley name and/or address, you must state will make all submissions from National Park, 15610 Vaughn Road, this prominently at the beginning of organizations or businesses, and from Brecksville, OH 44141, or by phone your comment. However, we will not individuals identifying themselves as 440–546–5903. consider anonymous comments. We will make all submissions from representatives or officials of SUPPLEMENTARY INFORMATION: The organizations or businesses, available preservation of the rural landscape is organizations or businesses, and from for public inspection in their entirety. central to the Park’s legislative mandate. individuals identifying themselves as representatives or officials of MMS Information Collection The law, that established the Park, organizations or businesses available for Clearance Officer: Jo Ann Lauterbach, mandates the ‘‘preservation of the historic, scenic, natural, and public inspection in their entirety. (202) 208–7744. The responsible official is Mr. recreational values of the Cuyahoga Dated: January 28, 2003. William Schenk, Midwest Regional Valley’’ (Public Law 93–555, 1974). One Lucy Querques Denett, Director. component of the historic and scenic Associate Director for Minerals Revenue values of the Park is the rural Dated: December 17, 2002. Management. landscape—lands and structures William W. Schenk, [FR Doc. 03–2646 Filed 2–4–03; 8:45 am] modified by humans for agricultural Regional Director, Midwest Region. BILLING CODE 4310–MR–P use. Throughout the Park’s history, [FR Doc. 03–2716 Filed 2–4–03; 8:45 am] efforts to preserve the rural landscape BILLING CODE 4310–70–P DEPARTMENT OF THE INTERIOR have been sporadic; there has never been a comprehensive program to National Park Service manage the rural landscape. As a result, DEPARTMENT OF THE INTERIOR many of the Park’s rural landscape Cuyahoga Valley National Park EIS resources have been lost. Therefore, the National Park Service Availability Park is proposing to better protect and General Management Plan for San revitalize this cultural resource by AGENCY: National Park Service. Juan Island National Historical Park, implementing an integrated rural San Juan County, WA; Notice of Intent ACTION: Notice of availability of the draft landscape management program, with To Prepare an Environmental Impact rural landscape management program the goal of more effectively and Statement Environmental Impact Statement for systematically preserving and protecting Cuyahoga Valley National Park, Ohio. the rural landscape resources in the Summary: In accordance with Park. The DEIS describes and analyzes § 102(2)(C) of the National SUMMARY: Pursuant to section 102(2) of the environmental impacts of Environmental Policy Act (42 U.S.C. the National Environmental Policy Act alternatives and their associated 4321 et. seq.), the National Park Service of 1969, the National Park Service (NPS) impacts. In the Park’s preferred is undertaking a conservation planning announces the availability of the draft alternative (alternative 2—Countryside and environmental impact analysis rural landscape management program Initiative), the rural landscape would be process for a new General Management Environmental Impact Statement (DEIS) managed largely by issuing long-term Plan for San Juan Island National

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Historical Park. The purpose of the particularly helpful as this early phase ACTION: Announcement of Subsistence scoping process is to elicit early public in the overall EIS\GMP process. Resource Commission meeting. comment regarding the full spectrum of Several public scoping meetings are SUMMARY: public issues and concerns, including a planned for spring 2003. Confirmed Notice is hereby given in suitable range of alternatives, dates, times, and locations will be accordance with the Federal Advisory appropriate boundaries, and the nature timely announced via local and regional Committee Act that a meeting of the and extent of potential environmental press releases, in a park scoping Aniakchak National Monument Park impacts and appropriate mitigation newsletter, and on the park website Subsistence Resource Commission will strategies which should be addressed in http://www.nps.gov/sajh/ be held at Chignik Lake, Alaska. The preparing the draft Environmental gmp_sajh.html. purpose of the meeting will be to continue work on National Park Service Impact Statement (EIS). All interested individuals, subsistence hunting program Background: A general management organizations, and agencies wishing to recommendations including other plan (GMP) sets forth the basic provide comments, suggestions, or related subsistence management issues. management philosophy for a unit of relevant information (or those wishing The meeting will be open to the public. the National Park System and provides to be included in the project mailing Any person may file with the the strategies for addressing issues and list) should contact the Superintendent Commission a written statement achieving identified management at San Juan Island National Historical objectives for that unit. In the concerning the matters to be discussed. Park, P.O. Box 429, Friday Harbor, The Subsistence Resource forthcoming EIS\GMP effort and its Washington 98250, or via telephone at Commissions are authorized under title integral public review process, the (360) 378–2240. All written comments VIII, section 808, of the Alaska National National Park Service (NPS) will must be postmarked not later than June Interest Lands Conservation Act, Pub. L. formulate a range of alternatives to 1, 2003. 96–487, and operation in accordance address distinct management strategies If individuals submitting comments with the provisions of the Federal for the park, including resource request that their name or/and address Advisory Committee Act. protection and visitor use. The EIS will be withheld from public disclosure, it DATES: The meeting will be on February identify and evaluate potential will be honored to the extent allowable environmental impacts. The GMP will 19, 2003, 9 a.m. to 4 p.m. at the by law. Such requests must be stated Subsistence Hall in Chignik Lake, guide the management of natural and prominently in the beginning of the cultural resources and visitor use of Alaska. In accordance with 41 CFR 102– comments. There also may be 3.150, we may provide less than 15 days those resources, serving as blueprint for circumstances wherein the NPS will park managers over the next 10–15 notice in the Federal Register to withhold a respondent’s identity as convene the Commission prior to the years. Development concept plans for allowable by law. As always, NPS will selected facilities may be included with February 27, 2003, Bristol Bay Regional make available to public inspection all Council meeting. the GMP. submissions from organizations or FOR FURTHER INFORMATION CONTACT: Scoping and Comment Process: businesses and from persons identifying Scoping activities involving a wide themselves as representatives or Mary McBurney, Subsistence Manager range of park stakeholders is of critical officials of organizations and at (907) 257–2633. importance for early identification of businesses; and, anonymous comments SUPPLEMENTARY INFORMATION: Notice of issues and concerns which should be may not be considered. this meeting will be published in local addressed in the forthcoming EIS\GMP. Decision Process: The draft EIS\GMP newspapers and announced on local Representatives of Federal, State, and is expected to be available for public radio stations prior to the meeting dates. local agencies, American Indian tribes, review by summer 2004, with the final Locations and dates may need to be private organizations and individuals version of the document completed by changed based on weather or local from the general public who may be winter 2005. As a delegated EIS, the circumstances. The following agenda items will be interested in or affected by the proposed official responsible for approval of the discussed: GMP are encouraged to participate in EIS\GMP is the Regional Director, the scoping process by responding with 1. Call to order (SRC Chair). Pacific West Region, National Park 2. Roll call and confirmation of written comments, or by providing any Service. Subsequently, the official relevant information. quorum. responsible for implementation of the 3. SRC Chair and Superintendent’s At this time, major issues anticipated approved GMP will be the welcome and introductions. to be addressed in the San Juan Island Superintendent, San Juan Island 4. Review Commission purpose and National Historical Park EIS\GMP National Historical Park. status of membership. include: (1) Substantial growth Dated: December 18, 2002. 5. Review and adopt agenda. pressures on cultural and natural 6. Review and adopt minutes from resources of the park; (2) future Jonathan B. Jarvis, Regional Director, Pacific West Region. last meeting. protection of water quality and quantity; 7. Superintendent’s report. (3) natural erosion of portions of the [FR Doc. 03–2717 Filed 2–4–03; 8:45 am] 8. Review SRC Chair’s workshop shoreline; (4) proliferation of exotic BILLING CODE 4310–70–P notes. plant and animal species; and (4) lack 9. Update—Review Federal of adequate administrative and visitor Subsistence Board Actions on Wildlife DEPARTMENT OF THE INTERIOR facilities and services in terms of Proposals. location and scale. Comments on these National Park Service 10. Update—Review Federal or other concerns deemed relevant to Subsistence Board Actions on Fisheries the conservation planning and Aniakachak National Monument Proposals. environmental impact analysis process, Subsistence Resource Commission 11. Develop comments for Federal as well as suggested management Meeting Subsistence Board Proposals. alternatives suitable for addressing these 12. Review Status of Subsistence factors, are encouraged and are AGENCY: National Park Service, Interior. Hunting Program Recommendations.

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13. Public and agency comments. newspapers and announced on local Lake Clark National Park Subsistence 14. Set time and place of next SRC radio stations prior to the meeting dates. Resource Commission will be held meeting. Locations and dates may need to be February 24, 2003 at Port Alsworth, 15. Adjournment. changed based on weather or local Alaska. The purpose of the meeting will Draft minutes of the meeting will be circumstances. be to continue work on National Park available for public inspection The following agenda items will be Service subsistence hunting program approximately six weeks after the discussed: recommendations including other meeting from: Superintendent, 1. Call to order (SRC Chair). related subsistence management issues. Aniakchak National Monument and 2. Roll call and confirmation of The meeting will be open to the public. Preserve, P.O. Box 4230, University quorum. Any person may file with the Drive #311, Anchorage, AK 99508. 3. SRC Chair and Superintendent’s Commission a written statement Telephone (907) 271–3751. welcome and introductions. concerning the matters to be discussed. Dated: January 9, 2003. 4. Review and adopt minutes from The Subsistence Resource Robert L. Arnberger, last meeting. Commission is authorized under Title Regional Director, Alaska. 5. Additions and corrections to draft VIII, Section 808, of the Alaska National [FR Doc. 03–2714 Filed 2–4–03; 8:45 am] agenda. Interest Lands Conservation Act, Pub. L. 6. Public and other agency comments. BILLING CODE 4310–70–P 96–487, and operates in accordance 7. Denali Backcountry Management with the provisions of the Federal Plan. Advisory Committee Act. DEPARTMENT OF THE INTERIOR 8. Cantwell Resident Zone Hunting DATES: The meeting will on February 24, Plan Recommendation. 2003, 10 a.m. to 4 p.m., at the National National Park Service 9. North Access Studies. Park Service hangar in Port Alsworth, 10. Federal Subsistence Wildlife Alaska. In accordance with 41 CFR 102– Announcement of Denali National Park Proposals for 2003. 3.150, we may provide less than 15 days Subsistence Resource Commission 11. Cultural and Subsistence notice in the Federal Register to Meeting Interpretation. convene the Commission prior to the 12. Bear and Wolf management issues AGENCY: National Park Service, Interior. February 27, 2003, Bristol Bay Regional in Wildlife Units 13 and 16. Council meeting. ACTION: Announcement of Denali 13. Customary Trade Proposed Rule. National Park Subsistence Resource 14. NPS reports and updates. FOR FURTHER INFORMATION CONTACT: Commission meeting. 15. Subsistence Community Use Mary McBurney, Subsistence Manager at (907) 257–2633. SUMMARY: Notice is hereby given in Profiles and Traditional Knowledge accordance with the Federal Advisory studies. SUPPLEMENTARY INFORMATION: Notice of Committee Act that a meeting of the 16. Federal Subsistence Board actions this meeting will be published in local Denali National Park Subsistence 2002. newspapers and announced on local Resource Commission will be held 17. Alaska Board of Game actions radio stations prior to the meeting dates. February 21, 2003, at Healy, Alaska. The 2002. Locations and dates may need to be purpose of the meeting will be to 18. Closing public and agency changed based on weather or local continue work on National Park Service comments. circumstances. subsistence hunting program 19. Set time and place of next Denali The following agenda items will be recommendations including other National Park SRC meeting. discussed: related subsistence management issues. 20. Adjournment. 1. Call to order (SRC Chair). 2. Roll Call and Confirmation of The meeting will be open to the public. Draft minutes of the meeting will be Quorum. Any person may file with the available for public inspection 3. SRC Chair and Superintendent’s Commission a written statement approximately six weeks after the Welcome and Introductions. concerning the matters to be discussed. meeting from: Superintendent, Denali The Subsistence Resource National Park and Preserve, P.O. Box 9, 4. Review Commission Purpose and Commission is authorized under title Denali Park, AK 99755. Status of Membership. VIII, section 808, of the Alaska National 5. Review and Adopt Agenda. Robert L. Arnberger, 6. Review and adopt minutes from Interest Lands Conservation Act, Pub. L. Regional Director, Alaska. last meeting. 96–487, and operates in accordance [FR Doc. 03–2715 Filed 2–4–03; 8:45 am] 7. Superintendent’s Report. with the provisions of the Federal BILLING CODE 4310–70–P 8. Review SRC Chairs Workshop Advisory Committee Act. Notes DATES: The meeting will on February 21, 9. Update—Review Federal 2003, 9 a.m. to 5 p.m., at the Nord DEPARTMENT OF THE INTERIOR Subsistence Board Actions on Wildlife Haven Motel in Healy, Alaska. In Proposals. accordance with 41 CFR 102–3.150, we National Park Service 10. Update—Review Federal may provide less than 15 days notice in Subsistence Board Actions on Fisheries the Federal Register to convene the Lake Clark National Park Subsistence Resource Commission Meeting Proposals. Commission prior to the March 4, 2003, 11. Develop Subsistence Hunting Southcentral Federal Subsistence AGENCY: National Park Service, Interior. Program Recommendations Regional Council meeting. ACTION: Announcement of Lake Clark 12. Public and agency comments. FOR FURTHER INFORMATION CONTACT: National Park Subsistence Resource 13. Set time and place of next SRC Hollis Twitchell, Subsistence and Commission meeting. meeting. Cultural Resources Manager at (907) 14. Adjournment. 683–9544 or (907) 455–0673. SUMMARY: Notice is hereby given in Draft minutes of the meeting will be SUPPLEMENTARY INFORMATION: Notice of accordance with the Federal Advisory available for public inspection this meeting will be published in local Committee Act that a meeting of the approximately six weeks after the

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meeting from: Superintendent, Lake From 9 to 10:30 a.m. the meeting will National Park Service subsistence Clark National Park and Preserve, P.O. include a presentation and discussion hunting program recommendations Box 4230, University Drive #311, on the national historic significance and including other related subsistence Anchorage, AK 99508. the historic integrity of one property management issues. The meeting will be being nominated for National Historic open to the public. Any person may file Robert L. Arnberger, Landmark designation. In addition, one with the Commission a written Regional Director, Alaska. National Historic Trail Study will also statement concerning the matters to be [FR Doc. 03–2719 Filed 2–4–03; 8:45 am] be considered at that time. After that discussed. BILLING CODE 4310–70–P time the committee will engage in a The Subsistence Resource general discussion on the procedures of Commission is authorized under Title the National Historic Landmarks VIII, Section 808, of the Alaska National DEPARTMENT OF THE INTERIOR Program. The meeting will be open to Interest Lands Conservation Act, Pub. L. National Park Service the public. Any member of the public 96–487, and operates in accordance may file for consideration by the with the provisions of the Federal National Landmarks Committee; committee written comments Advisory Committee Act. Meeting concerning the one National Historic DATES: The meeting dates are: Landmarks nomination and matters to 1. February 19, 2003, 9 a.m. to 5 p.m., AGENCY: National Park Service, U.S. be discussed pursuant to 36 CFR Part Tazlina Community Hall, Tazlina, Department of the Interior. 65, or the trail study. Alaska. ACTION: Notice of meeting. Comments should be submitted to 2. February 20, 2003, 9 a.m. to 5 p.m., Carol D. Shull, Chief, National Historic Tazlina Community Hall, Tazlina, SUMMARY: Notice is hereby given in Landmarks Survey and Keeper of the Alaska. accordance with the Federal Advisory National Register of Historic Places; In accordance with 41 CFR 102–3.150, Commission Act that a meeting of the National Register, History, and we may provide less than 15 days notice National Landmarks Committee of the Education; National Park Service; 1849 in the Federal Register to convene the National Park System Advisory Board C Street, NW (2280); Washington, DC Commission prior to the March 4, 2003, will be held beginning at 9 a.m. on the 20240. Southcentral Regional Council meeting. following date and at the following The committee will consider the FOR FURTHER INFORMATION CONTACT: Gary location. following nomination: Candelaria or Barbara Cellarius, DATES: April 8, 2003. Florida Subsistence, at Wrangell-St. Elias National Park and Preserve, P.O. Box LOCATION: The Lyceum: Alexandria’s Fort King History Museum, 201 South Washington 439, Copper Center, AK 99573, Street, Alexandria, Virginia 22314. The committee will also consider the telephone (907) 822–5234. recommendations presented in the FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: Notice of Washington-Rochambeau Revolutionary Patricia Henry, National Historic this meeting will be published in local War Route National Historic Trail Landmarks Survey, National Register, newspapers and announced on local Study, prepared under the auspices of History, and Education, National Park radio stations prior to the meeting dates. Public Law 106–473. Service; 1849 C Street, NW (2280), Locations and dates may need to be Washington, DC 20240. Telephone (202) Dated: January 29, 2003. changed based on weather or local 354–2216. Carol D. Shull, circumstances. The agenda for the meeting is as SUPPLEMENTARY INFORMATION: The Chief, National Historic Landmarks Survey follows: purpose of the meeting of the National and Keeper of the National Register of Historic Places; National Park Service, Washington, 1. Call to order (SRC Chair). Landmarks Committee of the National DC. 2. SRC Roll Call and Confirmation of Park System Advisory Board is to [FR Doc. 03–2661 Filed 2–4–03; 8:45 am] Quorum. evaluate the nomination of a historic 3. SRC Chair and Superintendent’s property in order to advise the full BILLING CODE 4310–70–P Welcome and Introductions. National Park System Advisory Board of 4. Review and Adopt Agenda. the qualifications of the property being DEPARTMENT OF THE INTERIOR 5. Review and adopt minutes proposed for National Historic September 25–26, 2002 meeting. Landmark (NHL) designation, and to National Park Service 6. Review Commission Purpose. recommend to the National Park System 7. Status of Membership. Advisory Board if the Landmarks Wrangell-St. Elias National Park 8. Superintendent’s Report. Committee finds that this property Subsistence Resource Commission 9. Wrangell-St. Elias NP&P Staff meets the criteria for designation as a Meeting Report. National Historic Landmark. The AGENCY: National Park Service, Interior. 10. Review new proposals to change members of the National Landmarks Wildlife Regulations. Committee are: ACTION: Announcement of Wrangell-St. Elias National Park Subsistence 11. Public and Agency Comments. Dr. Janet Snyder Matthews, Chair Resource Commission (SRC) meeting. 12. Work Session (comment on issues, Dr. Allyson Brooks develop new recommendations, prepare Dr. Ian W. Brown SUMMARY: Notice is hereby given in letters). Mr. S. Allen Chambers, Jr. accordance with the Federal Advisory 13. Set time and place of next SRC Dr. Elizabeth Clark-Lewis Committee Act that a meeting of the meeting. Dr. Bernard L. Herman Wrangell-St. Elias National Park 14. Adjournment. Professor E.L. Roy Hunt Subsistence Resource Commissions will Draft minutes of the meeting will be Ms. Paula J. Johnson be held at Tazlina, Alaska. The purpose available for public inspection Mr. Jerry L. Rogers of the meeting will be to continue work approximately six weeks after the Dr. Richard Guy Wilson on currently authorized and proposed meeting from the Superintendent,

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Wrangell-St. Elias National Park, at the to cause or threaten to cause market Alcohol, Tobacco, Firearms, and above address. disruption to the domestic producers of Explosives ATTN: Gail Davis, Chief, like or directly competitive products. Public Safety Branch, 800 K Street, NW., Robert L. Arnberger, Notice of the institution of the Suite 710, Washington, DC 20001. Regional Director, Alaska. Commission’s investigation and of the Request written comments and [FR Doc. 03–2718 Filed 2–4–03; 8:45 am] scheduling of a public hearing to be suggestions from the public and affected BILLING CODE 4310–70–P held in connection therewith was given agencies concerning the proposed by posting a copy of the notice on the collection of information. Your Commission’s website (http:// comments should address one or more INTERNATIONAL TRADE www.usitc.gov) and by publishing the of the following four points: COMMISSION notice in the Federal Register of (1) Evaluate whether the proposed [Investigation No. TA–421–2] December 6, 2002 (67 FR 72700). The collection of information is necessary hearing was held on January 9, 2003, in for the proper performance of the Certain Steel Wire Garment Hangers Washington, DC; all persons who functions of the agency, including From China requested the opportunity were whether the information will have permitted to appear in person or by practical utility; Determination counsel. (2) Evaluate the accuracy of the On the basis of information developed By order of the Commission. agencies estimate of the burden of the in the subject investigation, the United Issued: January 31, 2003. proposed collection of information, States International Trade Commission Marilyn R. Abbott, including the validity of the determines, pursuant to section Secretary to the Commission. methodology and assumptions used; 421(b)(1) of the Trade Act of 1974,1 that [FR Doc. 03–2778 Filed 2–4–03; 8:45 am] (3) Enhance the quality, utility, and certain steel wire garment hangers 2 BILLING CODE 7020–02–P clarity of the information to be from the People’s Republic of China are collected, and being imported into the United States in (4) Minimize the burden of the such increased quantities or under such DEPARTMENT OF JUSTICE collection of information on those who conditions as to cause market disruption are to respond, including through the to the domestic producers of like or Bureau of Alcohol, Tobacco, Firearms use of appropriate automated, directly competitive products. and Explosives electronic, mechanical, or other Background technological collection techniques or Agency Information Collection other forms of information technology, Following receipt of a petition filed Activities; Proposed Collection, e.g., permitting electronic submission of on November 27, 2002, on behalf of Comments Requested responses. CHC Industries, Inc.; M&B Metal Overview of this information: Products Co., Inc.; and United Wire ACTION: 60-Day Emergency Notice of (1) Type of information collection: Hanger Corp., the Commission Information Collection Under Review: Revision of a currently approved instituted investigation No. TA–421–2, Revision of a Currently Approved collection. Certain Steel Wire Garment Hangers Collection, Application for Explosives (2) The title of the form/collection: From China, under section 421 of the License or Permit. Application For Explosives License or Trade Act of 1974 to determine whether The Department of Justice, Bureau of Permit. certain steel wire garment hangers from (3) The agency form number, if any, China are being imported into the Alcohol, Tobacco, Firearms and Explosives has submitted the following and the applicable component of the United States in such increased department sponsoring the collection: quantities or under such conditions as information collection request to the Office of Management and Budget Form Number: ATF F5400.13/5400.16.

1 (OMB) for review and clearance in (4) Affected public who will be asked 19 U.S.C. 2451(b)(1). or required to respond, as well as a brief 2 For purposes of this investigation, certain steel accordance with emergency review wire garment hangers consist of garment hangers, procedures of the Paperwork Reduction abstract: Primary: Business, Individuals fabricated from steel wire in gauges from 9 to 17, Act of 1995. OMB approval has been Abstract: The purpose of this collection inclusive (3.77 to 1.37 millimeters, inclusive), requested by February 18, 2003. The is to enable ATF to ensure that persons whether or not galvanized or painted, whether or seeking to obtain a license or permit not coated with latex or epoxy or other similar proposed information collection is gripping materials, and whether or not fashioned published to obtain comments from the under 18 USC, Chapter 40, and with paper covers or capes (with or without public and affected agencies. If granted, responsible person of such companies printing) and/or nonslip features such as saddles, the emergency approval is only valid for are not prohibited from shipping, tubes, or struts. After fabrication, such hangers are transporting, receiving, or possessiong in lengths from 7 to 20 inches, inclusive (177.8 to 180 days. Comments should be directed 508 millimeters, inclusive), and the hanger’s length to OMB, Office of Information and explosives. or bottom bar is composed of steel wire and/or Regulatory Affairs, Attention: (5) An estimate of the total number of saddles, tubes or struts. The product may also be Department of Justice Desk Officer (202) respondents and the amount of time identified by its commercial designation, referring estimated for an average respondent to to the shape and/or style of the hanger or the 395–6466, Washington, DC 20503. garment for which it is intended, including but not During the first 60 days of this same respond/reply: There are approximately limited to shirt, suit, strut, and caped hangers. review period, a regular review of this 10,000 respondents who will each Specifically excluded are wooden, plastic, information collection is also being require an average of 1 hour and 30 aluminum, and other garment hangers that are minutes to respond. covered under separate subheadings of the HTS. undertaken. All comments and The products subject to this investigation are suggestions, or questions regarding (6) An estimate of the total public classified in subheading 7326.20.00 of the HTS and additional information, to include burden (in hours) associated with the reported under statistical reporting number obtaining a copy of the proposed colection: The total annual public 7326.20.0020. Although the HTS subheading is provided for convenience and Customs purposes, information collection instrument with burden hours for this information the written description of the merchandise is instructions, should be directed to US collection is estimated to be 15,000 dispositive. Department of Justice, Bureau of hours.

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In additional information is required comments should address one or more Dated: January 29, 2003. contact: Robert B. Briggs, Department of the following four points: Robert B. Briggs, Clearance Officer, Information (1) Evaluate whether the proposed Department Clearance Officer, United States Management and Security Staff, Justice collection of information is necessary Department of Justice. Management Division, United States for the proper performance of the [FR Doc. 03–2498 Filed 2–4–03; 8:45 am] Department of Justice, 601 D Street NW., functions of the agency, including BILLING CODE 4410–FB–M Patrick Henry Building, Suite 1600, whether the information will have Washington, DC 20530. practical utility; (2) Evaluate the accuracy of the Dated: January 29, 2003. DEPARTMENT OF JUSTICE agencies estimate of the burden of the Robert B. Briggs, proposed collection of information, Immigration and Naturalization Service Department Clearance Officer, United States including the validity of the Department of Justice. methodology and assumptions used; Agency Information Collection [FR Doc. 03–2497 Filed 2–04–03; 8:45 am] (3) Enhance the quality, utility, and Activities: Proposed Collection; BILLING CODE 4410–FB–M clarity of the information to be Comment Request collected; and ACTION: 30-Day Notice of Information (4) Minimize the burden of the Collection Under Review: Notice to DEPARTMENT OF JUSTICE collection of information on those who Student or Exchange Visitor; Form I– are to respond, including through the Bureau of Alcohol, Tobacco, Firearms 515. use of appropriate automated, and Explosives electronic, mechanical, or other The Department of Justice, Agency Information Collection technological collection techniques or Immigration and Naturalization Service Activities: Proposed Collection; other forms of information technology, (INS) has submitted the following Comments Requested e.g., permitting electronic submissions information collection request to the of responses. Office of Management and Budget ACTION: 60-Day Emergency Notice of Overview of this information: (OMB) for review and clearance in Information Collection Under Review: (1) Type of information collection: accordance with the Paperwork Revision of a Currently Approved Revision of a currently approved Reduction Act of 1995. The information Collection, Employee Possessor collection. collection was previously published in (2) The title of the form/collection: Questionnaire. the Federal Register on November 21, Employee Possessor Questionnaire. 2002 at 67 FR 70242, allowing for a 60- The Department of Justice, Bureau of (3) The agency form number, if any, day public comment period. No public Alcohol, Tobacco, Firearms and and the applicable component of the comment was received on this Explosives has submitted the following department sponsoring the collection: information collection. information collection request to the Form Number: ATF F5400.28 The purpose of this notice is to allow Office of Management and Budget Department of Justice. an additional 30 days for public (4) Affected public who will be asked (OMB) for review and clearance in comments. Comments are encouraged or required to respond, as well as a brief accordance with emergency review and will be accepted until March 7, abstract: Primary: Individuals. Other: procedures of the Paperwork Reduction 2003. This process is conducted in Business. Abstract: Each employee Act of 1995. OMB approval has been accordance with 5 CFR 1320.10. possessor in the explosives business or requested by February 18, 2003. The Written comments and/or suggestions operations is required to ship, transport, proposed information collection is regarding the items contained in this receive, or possess (actual or published to obtain comments from the notice, especially regarding the constructive), explosive materials must public and affected agencies. If granted, estimated public burden and associated submit this form. ATF F5400.28 will the emergency approval is only valid for response time, should be directed to the determine the eligibility of the 180 days. Comments should be directed Office of Management and Budget, employee possessor to possess to OMB, Office of Information and Office of Information and Regulatory explosives. Regulatory Affairs, Attention: Affairs, Attention: Department of Justice (5) An estimate of the total number of Desk Officer, 725—17th Street, NW., Department of Justice Desk Officer (202) respondents and the amount of time 395–6466, Washington, DC 20503. Room 10235, Washington, DC 20530. estimated for an average respondent to Written comments and suggestions During the first 60 days of this same respond/reply: There are approximately from the public and affected agencies review period, a regular review of this 10,000 respondents who will each concerning the proposed collection of information collection is also being require an average of 20 minutes to information should address one or more undertaken. All comments and respond. of the following four points: suggestions, or questions regarding (6) An estimate of the total public (1) Evaluate whether the proposed additional information, to include burden (in hours) associated with the collection of information is necessary obtaining a copy of the proposed collection: The total annual public for the proper performance of the information collection instrument with burden hours for this information functions of the agency, including instructions, should be directed to collection is estimated to be 3,334 whether the information will have United States Department of Justice, hours. practical utility; Bureau of Alcohol, Tobacco, Firearms, If additional information is required (2) Evaluate the accuracy of the and Explosive ATTN: Gail Davis, Chief, contact: Robert B. Briggs, Department agency’s estimate of the burden of the Public Safety Branch, 800 K Street, NW., Clearance Officer, Information proposed collection of information, Suite 710, Washington, DC 20001. Management and Security Staff, Justice including the validity of the Request written comments and Management Division, United States methodology and assumptions used; suggestions from the public and affected Department of Justice, 601 D Street NW., (3) Enhance the quality, utility, and agencies concerning the proposed Patrick Henry Building, Suite 1600, clarity of the information to be collection of information. Your Washington, DC 20530. collected; and

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(4) Minimize the burden of the Dated: January 30, 2003. (2) Evaluate the accuracy of the collection of information on those who Richard A. Sloan, agency’s estimated of the burden of the are to respond, including through the Department Clearance Officer, United States proposed collection of information, use of appropriate automated, Department of Justice, Immigration and including the validity of the electronic, mechanical, or other Naturalization Service. methodology and assumptions used; technological collection techniques or [FR Doc. 03–2686 Filed 2–4–03; 8:45 am] (3) Enhance the quality, utility, and other forms of information technology, BILLING CODE 4410–10–M clarity of the information to be e.g., permitting electronic submission of collected; and responses. (4) Minimize the burden of the Overview of this information DEPARTMENT OF JUSTICE collection of information on those who collection: are to respond, including through the Immigration and Naturalization Service use of appropriate automated, (1) Type of Information Collection: electronic, mechanical, or other Revision of a currently approved Agency Information Collection technological collection techniques or information collection. Activities: Proposed Collection; other forms of information technology, (2) Title of the Form/Collection: Comment Request e.g., permitting electronic submission of Notice to Student or Exchange Visitor. responses. ACTION: 30-Day Notice of Information Overview of this information (3) Agency form number, if any, and Collection Under Review: Visa Waiver the applicable component of the collection: Program Passenger Arrival and (1) Type of Information Collection: Department of Justice sponsoring the Departure Data (File No. OMB–32). collection: Form I–515, Immigration Extension of a previously approved Services Division, Immigration and The Department of Justice, information collection. (2) Title of the Form/Collection: Visa Naturalization Service. Immigration and Naturalization Service Waiver program passenger Arrival and (INS) has submitted the following (4) Affected public who will be asked Departure Data. or required to respond, as well as a brief information collection request to the (3) Agency form number, if any, and abstract: Primary: Individuals or Office of Management and Budget the applicable component of the Households. This form will be used by (OMB) for review and clearance in Department of Justice sponsoring the the INS to notify students or exchange accordance with the Paperwork collection: No Agency Form Number visitors admitted to the United States as Reduction Act of 1995. The INS (File No. OMB–32); Inspections nonimmigrant that they have been published an interim rule containing the Division, Immigration and admitted without required forms and proposed information collection in the Naturalization Service. that they have 30 days to present the Federal Register on October 11, 2002 at (4) Affected public who will be asked required forms and themselves to the 67 FR 63246. The interim rule also or required to respond, as well as a brief appropriate office for correct processing. solicited public review and comments abstract: Primary: Business or other for- (5) An estimate of the total number of on the information collection for a profit. Section 217(h) of the INA respondents and the amount of time period of 60 days. The INS has not requires an automated entry and exit estimated for an average respondent to received any comments on the proposed control system by specifying those respond: 3,000 responses at 5 minutes information collection. passenger data elements that must be (.083 hours) per response. The purpose of this notice is to allow electronically transmitted to the INS by an additional 30 days for public (6) An estimate of the total public carriers seeking to transport Visa Waiver comments to satisfy the requirements of program passengers into and out of the burden (in hours) associated with the the Paperwork Reduction Act and to collection: 249 annual burden hours. U.S. on or after October 1, 2002. extend the use of this information (5) An estimate of the total number of If you have additional comments, collection. Comments are encouraged respondents and the amounts of time suggestions, or need a copy of the and will be accepted until March 7, estimated for an average respondent to proposed information collection 2003. This process is conducted in respond: 600 responses at 5 minutes instrument with instructions, or accordance with 5 CFR 1320.10. (.083 hours) per response. Frequency of additional information, please contact Written comments and/or suggestions response is 365. Richard A. Sloan 202–514–3291, regarding the items contained in this (6) An estimate of the total public Director, Regulations and Forms notice, especially regarding the burden (in hours) associated with the Services Division, Immigration and estimated public burden and associated collection: 36,500 annual burden hours. Naturalization Service, U.S. Department response time, should be directed to the If you have additional comments, of Justice, Room 4034, 425 I Street, NW., Office of Management and Budget, suggestions, or need a copy of the Washington, DC 20536. Additionally, Office of Information and Regulatory proposed information collection comments and/or suggestions regarding Affairs, Attention: Department of Justice instrument with instructions, or the item(s) contained in this notice, Desk Officer, 725—17th Street, NW., additional information, please contact especially regarding the estimated Room 10235, Washington, DC 20530. Richard A. Sloan 202–514–3291, public burden and associated response Written comments and suggestions Director, Regulations and Forms time may also be directed to Mr. from the public and affected agencies Services Division, Immigration and Richard A. Sloan. concerning the proposed collection of Naturalization Service, U.S. Department If additional information is required information should address one or more of Justice, Room 4034, 425 I Street, NW., contact: Mr. Robert B. Briggs, Clearance of the following four points: Washington, DC 20536. Additionally, Officer, United States Department of (1) Evaluate whether the proposed comments and/or suggestions regarding Justice, Information Management and collection of information is necessary the item(s) contained in this notice, Security Staff, Justice Management for the proper performance of the especially regarding the estimated Division, Patrick Henry Building, 601 D functions of the agency, including public burden and associated response Street, NW., Ste. 1600, Washington, DC whether the information will have time may also be directed to Mr. 20530. practical utility; Richard A. Sloan.

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If additional information is required proposed collection of information, time may also be directed to Mr. contact: Mr. Robert B. Briggs, Clearance including the validity of the Richard A. Sloan. Officer, United States Department of methodology and assumptions used; If addition information is required Justice, Information Management and (3) Enhance the quality, utility, and contact: Mr. Robert B. Briggs, Clearance Security Staff, Justice Management clarity of the information to be Officer, United States Department of Division, Patrick Henry Building 601 D collected; and Justice, Information Management and Street, NW., Ste. 1600, Washington, DC (4) Minimize the burden of the Security Staff, Justice Management 20530. collection of information on those who Division, Patrick Henry Building, 601 D are to respond, including through the Dated: January 30, 2003. Street, NW., Suite 1600, Washington, use of appropriate automated, DC 20530. Richard A. Sloan, electronic, mechanical, or other Dated: January 30, 2003. Department Clearance Officer, United States technological collection techniques or Richard A. Sloan, Department of Justice, Immigration and other forms of information technology, Naturalization Service. e.g., permitting electronic submission of Department Clearance Officer, United States [FR Doc. 03–2687 Filed 2–4–03; 8:45 am] Department of Justice, Immigration and responses. Naturalization Service. BILLING CODE 4410–10–M Overview of this information collection: [FR Doc. 03–2688 Filed 2–4–03; 8:45 am] (1) Type of Information Collection: BILLING CODE 4410–10–M DEPARTMENT OF JUSTICE Extension of a previously approved Immigration and Naturalization Service collection. (2) Title of the Form/Collection: DEPARTMENT OF LABOR Application for Replacement Agency Information Collection Office of the Secretary Activities: Comment Request Naturalization/Citizenship Document. (3) Agency form number, if any, and Submission for OMB Review; the applicable component of the ACTION: 30-Day Notice of Information Comment Request Collection Under Review; Application Department of Justice sponsoring the for Replacement Naturalization/ collection: Form N–565. Adjudications January 27, 2003. Citizenship Document; Form N–565. Division, Immigration and The Department of Labor (DOL) has Naturalization Service. submitted the following public The Office of Management and Budget (4) Affected public who will be asked information collection request (ICR) to (OMB) approval is being sought for the or required to respond, as well as a brief the Office of Management and Budget information collection listed below. abstract: Primary: Individuals or (OMB) for review and approval in This proposed information collection households. This form is used by the accordance with the Paperwork was previously published by the INS to determine the applicant’s Reduction Act of 1995 (Pub. L. 104–13, Immigration and Naturalization Service eligibility for a replacement of a 44 U.S.C. Chapter 35). A copy of this (INS) in the Federal Register on Declaration of Intention, Naturalization ICR, with applicable supporting September 27, 2002 at 67 FR 61153, Certificate, Certificate of Citizenship or documentation, may be obtained by allowing for a 60-day public review and Repatriation Certificate that was lost, calling the Department of Labor. To comment period. The INS received no mutilated or destroyed, or if the obtain documentation contact Darrin public comments. The purpose of this applicant’s name was changed by King on (202) 693–4129 or e-mail: King- notice is to allow an additional 30 days marriage or by court order after issuance [email protected]. for public comments. Comments are of original document. This form may Comments should be sent to Office of encouraged and will be accepted for also be used to apply for special Information and Regulatory Affairs, thirty days until March 7, 2003. This certificate of naturalization as a U.S. Attn: OMB Desk Officer for OSHA, process is conducted in accordance with citizen to be recognized by a foreign Office of Management and Budget, 5 CFR Part 1320.10. country. Room 10235, Washington, DC 20503, Written comments and/or suggestions (5) An estimate of the total number of ((202) 395–7316), within 30 days from regarding the items contained in this respondents and the amount of time the date of this publication in the notice, especially regarding the estimated for an average respondent to Federal Register. estimated public burden and associated respond: 22,567 responses at 55 minutes The OMB is particularly interested in response time, should be directed to the (0.916) per response. comments which: Office of Management and Budget, (6) An estimate of the total public • Evaluate whether the proposed Office of Information and Regulatory burden (in hours) associated with the collection of information is necessary Affairs, Attention: Department of Justice collection: 20,671 annual burden hours. for the proper performance of the Desk Officer, 725—17th Street, NW., If you have additional comments, functions of the agency, including Room 10235, Washington, DC 20530. suggestions, or need a copy of the whether the information will have Written comments and suggestions from proposed information collection practical utility; the public and affected agencies instrument with instructions, or • Evaluate the accuracy of the concerning the proposed collection of additional information, please contact agency’s estimate of the burden of the information should address one or more Richard A. Sloan 202–514–3291, proposed collection of information, of the following four points: Director, Regulations and Forms including the validity of the (1) Evaluate whether the proposed Services Division, Immigration and methodology and assumptions used; collection of information is necessary Naturalization Service, U.S. Department • Enhance the quality, utility, and for the proper performance of the of Justice, Room 4304, 425 I Street, NW., clarity of the information to be functions of the agency, including Washington, DC 20536. Additionally, collected; and whether the information will have comments and/or suggestions regarding • Minimize the burden of the practical utility; the item(s) contained in this notice, collection of information on those who (2) Evaluate the accuracy of the especially regarding the estimated are to respond, including through the agencies estimate of the burden of the public burden and associated response use of appropriate automated,

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electronic, mechanical, or other Attn: OMB Desk Officer for DOL, Office Management and Budget for use technological collection techniques or of Management and Budget, Room government-wide. other forms of information technology, 10235, Washington, DC 20503 (202) Ira L. Mills, e.g., permitting electronic submission of 395–7316), within 30 days from the date responses. of this publication in the Federal Departmental Clearance Officer. Agency: Occupational Safety and Register. [FR Doc. 03–2722 Filed 2–4–03; 8:45 am] Health Administration (OSHA). The OMB is particularly interested in BILLING CODE 4510–23–M Type of Review: Extension of a comments which: currently approved collection. • Evaluate whether the proposed DEPARTMENT OF LABOR Title: OSHA Data Initiative (ODI). collection of information is necessary OMB Number: 1218–0209. for the proper performance of the Office of the Secretary Affected Public: Business or other for- functions of the agency, including profit; Farms; and State, Local, or Tribal whether the information will have Submission for OMB Review; Government. practical-utility; Comment Request Frequency: Annually. • Evaluate the accuracy of the Type of Response: Reporting. January 30, 2003. Number of Respondents: 96,675. agency’s estimate of the burden of the proposed collection of information, The Department of Labor (DOL) has Number of Annual Responses: 96,675. submitted the following public Estimated Time Per Response: 10 including the validity of the methodology and assumptions used; information collection requests (ICRs) to minutes. the Office of Management and Budget Total Burden Hours: 15,468. • Enhance the quality, utility, and (OMB) for review and approval in Total Annualized Capital/Startup clarity of the information to be accordance with the Paperwork Costs: $0. collected; and Total Annual Costs (operating/ • Minimize the burden of the Reduction Act of 1995 (Pub. L. 104–13), maintaining systems or purchasing collection of information on those who 44 U.S.C. Chapter 35). A copy of each services): $0. are to respond, including through the individual ICR, with applicable Description: In accordance with 29 use of appropriate automated, supporting documentation, may be CFR 1904.41, OSHA is proposing to electronic, mechanical, or other obtained by calling the Department of continue collecting occupational injury technological collection techniques or Labor. To obtain documentation contact and illness data. These data allow other forms of information technology, Darrin King (202 693–4129 or by e-mail OSHA to calculate occupational injury e.g., permitting electronic submission of to [email protected]). and illness rates and to focus its efforts responses. Comments should be sent to Office of on individual workplaces with ongoing Agency: Office of the Assistant Information and Regulatory Affairs, series safety and health problems. This Secretary for Administration and Attn: OMB Desk Office, Office of data collection initiative is critical to Management (OASAM). Management and Budget, room 10235, Washington, DC 20503 (202 395–7316), OSHA’s outreach and enforcement Type of Review: New collection. within 30 days from date of this efforts and the data requirements tied to Title: Survey on Ensuring Equal publication in the Federal Register. the Government Performance and Opportunity for Applicants. Results Act. The OMB is particularly interested in OMB Number: 1225–0NEW. comments which: Ira L. Mills, Affected Public: Not-for-profit- • Evaluate whether the proposed Departmental Clearance Officer. institutions. collection of information is necessary [FR Doc. 03–2721 Filed 2–4–03; 8:45 am] Frequency: On occasion. for the proper performance of the BILLING CODE 4510–26–M Type of Response: Reporting. functions of the agency, including Number of Respondents: 1,000. whether the information will have Number of Annual Responses: 1,000. practical utility; DEPARTMENT OF LABOR Estimated Time Per Response: 5 • Evaluate the accuracy of the minutes. agency’s estimate of the burden of the Office of the Secretary Total Burden Hours: 80. proposed collection of information, Total Annualized Capital/Startup including the validity of the Submission for OMB Review; Costs: $0. methodology and assumptions used; Comment Request Total Annual Costs (operating/ • Enhance the quality, utility, clarity January 28, 2003. maintaining systems or purchasing of the information to be collected; and The Department of Labor (DOL) has services): $0. • Minimize the burden of the submitted the following public Description: This data collection is collection of information on those who information collection request (ICR) to necessary to fulfill the mandate of are to respond, including through the the Office of Management and Budget Executive Orders 13198 and 13199 use of appropriate automated, (OMB) for review and approval in dated January 29, 2001. These Executive electronic, mechanical, or other accordance with the Paperwork Orders require the removal of barriers to technological collection techniques or Reduction Act of 1995 (Pub. L. 104–13, the full participation of faith-based and other forms of information technology; 44 U.S.C. Chapter 35). A copy of this community organizations in federal e.g., permitting electronic submission of ICR, with applicable supporting social service programs. This data responses. documentation, may be obtained by collection will provide the data to Agency: Occupational Safety and calling the Department of Labor. To determine the level of faith-based and Health Administration (OSHA). obtain documentation contact Darrin community participation in the DOL Title: Process Safety Management of King at (202) 693–4129 or e-mail King- grant programs. The data collected on Highly Hazardous Chemicals (PSM) (29 [email protected]. this form is identical to that collected on CFR 1910.119). Comments should be sent to Office of OMB number 1890–0014 which has OMB Number: 1218–0200. Information and Regulatory Affairs, been approved by the Office of Frequency: Annually (on occasion).

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Affected Public: Business or other for- which have the potential for highly • Evaluate whether the proposed profit; Federal Government; State, Local hazardous chemical catastrophes. collection of information is necessary for the proper performance of the or Tribal Government. Ira L. Mills, Number of Respondents: 38,717. functions of the agency, including Departmental Clearance Officer. whether the information will have Estimated Time Per respondent: [FR Doc. 03–2723 Filed 2–4–03; 8:45 am] practical utility. Varies from five minutes (.08) to BILLING CODE 4510–26–M • Evaluate the accuracy of the generate, maintain and disclose training agency’s estimate of the burden of the documentation to 2,454.4 hours to DEPARTMENT OF LABOR proposed collection of information, establish and implement a management including the validity of the of change program. Office of the Secretary methodology and assumptions used; Total Burden Hours: 50,980,689. • Enhance the quality, utility, and Submission for OMB Review; Total annualized capital/startup cost: clarity of the information to be Comment Request -0-. collected; and • Minimize the burden of the Total annual cost (operating/ January 27, 2003. The Department of Labor (DOL) has collection of information on those who maintaining systems or purchasing are to respond, including through the services): -0-. submitted the following public information collection request (ICR) to use of appropriate automated, Description: The collection of the Office of Management and Budget electronic, mechanical, or other information in the standard is necessary (OMB) for review and approval in technological collection techniques or for implementation of the requirements accordance with the Paperwork other forms of information technology, of the standards. The information is Reduction Act of 1995 (Pub. L. 104–13, e.g., permitting electronic submission of used by employers to assure that 44 U.S.C. Chapter 35). A copy of this responses. processes using highly hazardous ICR, with applicable supporting Agency: Employment and Training chemical with the potential of a documentation, may be obtained by Administration (ETA). castrophic release are operated as safely calling the Department of Labor. To Type of Review: Revision of a as possible. The employer must obtain documentation contact Darrin currently approved collection. thoroughly consider all facets of a King on 202–693–4129 or e-mail: King- Title: Quarterly Determinations, process, as well as the involvement of [email protected]. Allowance Activities, and employees in that process. Processes are Comments should be sent to Office of Employability Services Under the Trade analyzed by employers so that they Information and Regulatory Affairs, Act; Training Waivers Issued and identify and control problems that could Attn: OMB Desk Officer for ETA, Office Revoked. lead to a major release, fire or explosion. of Management and Budget, Room OMB Number: 1205–0016. 10235, Washington, DC 20503 (202– The failure of employers to collect the 395–7316), within 30 days from the date Affected Public: State, Local, or Tribal information will significantly impact of this publication in the Federal Government. OSHA’s effort to control and reduce Register. Type of Response: Reporting. injuries and fatalities in workplaces, The OMB is particularly interested in Number of Respondents: 52. comments which: Frequency: Quarterly.

Average re- Requirement Annual sponse time Annual burden responses (hours) hours

ETA 563 ...... 17,100 .13 2,223 ETA 9027 ...... 180 .17 31

Total ...... 17,280 ...... 2,254

Total Annualized Capital/Startup reports to the Secretary on training DEPARTMENT OF LABOR Costs: $100,000. waivers issued and revoked. Employment and Training Total Annual Costs (operating/ Ira L. Mills, Administration maintaining systems or purchasing Departmental Clearance Officer. services): $0. [NAFTA–6664] [FR Doc. 03–2724 Filed 2–4–03; 8:45 am] Description: Quarterly data on Trade BILLING CODE 4510–30–M State of Alaska Commercial Fisheries Adjustment Assistance activity is Entry Commission Permit No. 60068N, needed for timely program evaluation, Dillingham, AK; Notice of Termination for competent administration, and for of Investigation providing legally mandated reports to Congress. Section 231(c) of the Trade Pursuant to Title V of the North Act of 1974 as amended by the Trade American Free Trade Agreement Adjustment Assistance Reform Act of Implementation Act (Pub. L. 103–182) 2002, requires the states to submit concerning transitional adjustment assistance, hereinafter called NAFTA– TAA and in accordance with section 250(a), Subchapter D, Chapter 2, Title II, of the Trade Act of 1974, as amended

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(19 U.S.C. 2273), an investigation was DEPARTMENT OF LABOR The petitioner has requested that the initiated on September 5, 2002 in petition be withdrawn. Consequently, response to a petition filed by the Employment and Training further investigation in this case would Bristol Bay Native Association on behalf Administration serve no purpose, and the investigation has been terminated. of Bristol Bay salmon fishermen, State [NAFTA–6666] of Alaska Commercial Fisheries Entry Signed in Washington, DC this 29th day of Commission Permit No. 60068N, State of Alaska Commercial Fisheries November, 2002. Dillingham, Alaska. Entry Commission Permit No. 67569Q, Linda G. Poole, The petitioner has requested that the Dillingham, AK; Notice of Termination Certifying Officer, Division of Trade petition be withdrawn. Consequently, of Investigation Adjustment Assistance. [FR Doc. 03–2728 Filed 2–4–03; 8:45 am] further investigation in this case would Pursuant to Title V of the North serve no purpose, and the investigation American Free Trade Agreement BILLING CODE 4510–30–P has been terminated. Implementation Act (Pub. L. 103–182) Signed in Washington, DC this 29th day of concerning transitional adjustment DEPARTMENT OF LABOR November, 2002. assistance, hereinafter called NAFTA– Linda G. Poole, TAA and in accordance with section Employment and Training 250(a), Subchapter D, Chapter 2, Title II, Certifying Officer, Division of Trade Administration of the Trade Act of 1974, as amended Adjustment Assistance. (19 U.S.C. 2273), an investigation was [NAFTA–6669] [FR Doc. 03–2725 Filed 2–4–03; 8:45 am] initiated on September 5, 2002 in State of Alaska Commercial Fisheries BILLING CODE 4510–30–P response to a petition filed by the Entry Commission Permit No. 61482N, Bristol Bay Native Association on behalf Dillingham, AK; Notice of Termination of Bristol Bay salmon fishermen, State of Investigation DEPARTMENT OF LABOR of Alaska Commercial Fisheries Entry Commission Permit No. 67569Q, Employment and Training Pursuant to Title V of the North Dillingham, Alaska. Administration American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment [NAFTA–6665] further investigation in this case would assistance, hereinafter called NAFTA– serve no purpose, and the investigation TAA and in accordance with section State of Alaska Commercial Fisheries has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Entry Commission Permit No. 60688L, of the Trade Act of 1974, as amended Dillingham, AK; Notice of Termination Signed in Washington, DC this 29th day of November, 2002. (19 U.S.C. 2273), an investigation was of Investigation Linda G. Poole, initiated on September 5, 2002 in response to a petition filed by the Pursuant to Title V of the North Certifying Officer, Division of Trade Adjustment Assistance. Bristol Bay Native Association on behalf American Free Trade Agreement of Bristol Bay salmon fishermen, State Implementation Act (Pub. L. 103–182) [FR Doc. 03–2727 Filed 2–4–03; 8:45 am] BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry concerning transitional adjustment Commission Permit No. 61482N, assistance, hereinafter called NAFTA– Dillingham, Alaska. TAA and in accordance with section DEPARTMENT OF LABOR The petitioner has requested that the 250(a), Subchapter D, Chapter 2, Title II, petition be withdrawn. Consequently, of the Trade Act of 1974, as amended Employment and Training further investigation in this case would (19 U.S.C. 2273), an investigation was Administration serve no purpose, and the investigation initiated on September 5, 2002 in has been terminated. [NAFTA–6668] response to a petition filed by the Signed in Washington, DC this 29th day of Bristol Bay Native Association on behalf State of Alaska Commercial Fisheries November, 2002. of Bristol Bay salmon fishermen, State Entry Commission Permit No. 58672V, Linda G. Poole, of Alaska Commercial Fisheries Entry Dillingham, AK; Notice of Termination Certifying Officer, Division of Trade Commission Permit No. 60688L, of Investigation Adjustment Assistance. Dillingham, Alaska. [FR Doc. 03–2729 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North The petitioner has requested that the BILLING CODE 4510–30–P American Free Trade Agreement petition be withdrawn. Consequently, Implementation Act (Pub. L. 103–182) further investigation in this case would concerning transitional adjustment serve no purpose, and the investigation DEPARTMENT OF LABOR assistance, hereinafter called NAFTA– has been terminated. TAA and in accordance with section Employment and Training Signed in Washington, DC this 29th day of 250(a), Subchapter D, Chapter 2, Title II, Administration November, 2002. of the Trade Act of 1974, as amended [NAFTA–6670] Linda G. Poole, (19 U.S.C. 2273), an investigation was Certifying Officer, Division of Trade initiated on September 5, 2002 in State of Alaska Commercial Fisheries Adjustment Assistance. response to a petition filed by the Entry Commission Permit No. 56847J, [FR Doc. 03–2726 Filed 2–4–03; 8:45 am] Bristol Bay Native Association on behalf Dillingham, AK; Notice of Termination of Bristol Bay salmon fishermen, State of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit No. 58672V, Pursuant to Title V of the North Dillingham, Alaska. American Free Trade Agreement

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Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR The petitioner has requested that the concerning transitional adjustment petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– Employment and Training further investigation in this case would TAA and in accordance with section Administration serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, has been terminated. [NAFTA–6675] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 64122W, Linda G. Poole, response to a petition filed by the Dillingham, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2733 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Pursuant to Title V of the North BILLING CODE 4510–30–P Commission Permit No. 56847J, American Free Trade Agreement Dillingham, Alaska. Implementation Act (Pub. L. 103–182) The petitioner has requested that the concerning transitional adjustment DEPARTMENT OF LABOR petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– further investigation in this case would TAA and in accordance with section Employment and Training serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, Administration has been terminated. of the Trade Act of 1974, as amended [NAFTA–6677] Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Linda G. Poole, Entry Commission Permit No. 67325N, Bristol Bay Native Association on behalf Certifying Officer, Division of Trade Dillingham, AK; Notice of Termination of Bristol Bay salmon fishermen, State Adjustment Assistance. of Investigation [FR Doc. 03–2730 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Commission Permit No. 64122W, BILLING CODE 4510–30–P Pursuant to Title V of the North Dillingham, Alaska. American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR petition be withdrawn. Consequently, concerning transitional adjustment further investigation in this case would assistance, hereinafter called NAFTA– Employment and Training serve no purpose, and the investigation TAA and in accordance with section Administration has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Signed in Washington, DC this 29th day of of the Trade Act of 1974, as amended [NAFTA–6671] November, 2002. (19 U.S.C. 2273), an investigation was Linda G. Poole, initiated on September 5, 2002 in State of Alaska Commercial Fisheries Certifying Officer, Division of Trade response to a petition filed by the Entry Commission Permit No. 59293X, Adjustment Assistance. Bristol Bay Native Association on behalf Dillingham, AK; Notice of Termination [FR Doc. 03–2732 Filed 2–4–03; 8:45 am] of Bristol Bay salmon fishermen, State of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit No. 67325N, Pursuant to Title V of the North Dillingham, Alaska. American Free Trade Agreement DEPARTMENT OF LABOR The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment Employment and Training further investigation in this case would assistance, hereinafter called NAFTA– Administration serve no purpose, and the investigation TAA and in accordance with section has been terminated. 250(a), Subchapter D, Chapter 2, Title II, [NAFTA–6676] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 61314F, Linda G. Poole, response to a petition filed by the Dillingham, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2734 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North of Alaska Commercial Fisheries Entry BILLING CODE 4510–30–P American Free Trade Agreement Commission Permit No. 59293X, Implementation Act (Pub. L. 103–182) Dillingham, Alaska. concerning transitional adjustment The petitioner has requested that the DEPARTMENT OF LABOR assistance, hereinafter called NAFTA– petition be withdrawn. Consequently, TAA and in accordance with section Employment and Training further investigation in this case would 250(a), Subchapter D, Chapter 2, Title II, Administration serve no purpose, and the investigation of the Trade Act of 1974, as amended has been terminated. (19 U.S.C. 2273), an investigation was [NAFTA–6786] Signed in Washington, DC this 29th day of initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Entry Commission Permit No. 60136S, Linda G. Poole, Bristol Bay Native Association on behalf King Salmon, AK; Notice of Certifying Officer, Division of Trade of Bristol Bay salmon fishermen, State Termination of Investigation Adjustment Assistance. of Alaska Commercial Fisheries Entry [FR Doc. 03–2731 Filed 2–4–03; 8:45 am] Commission Permit No. 61314F, Pursuant to Title V of the North BILLING CODE 4510–30–P Dillingham, Alaska. American Free Trade Agreement

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Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR The petitioner has requested that the concerning transitional adjustment petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– Employment and Training further investigation in this case would TAA and in accordance with section Administration serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, has been terminated. [NAFTA–6789] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 58662X, Linda G. Poole, response to a petition filed by the King Salmon, AK; Notice of Certifying Officer, Division of Trade Bristol Bay Native Association on behalf Termination of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2738 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Pursuant to Title V of the North BILLING CODE 4510–30–P Commission Permit No. 60136S, King American Free Trade Agreement Salmon, Alaska. Implementation Act (Pub. L. 103–182) The petitioner has requested that the concerning transitional adjustment DEPARTMENT OF LABOR petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– further investigation in this case would TAA and in accordance with section Employment and Training serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, Administration has been terminated. of the Trade Act of 1974, as amended [NAFTA–6792] Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Linda G. Poole, Entry Commission Permit No. 66997L, Bristol Bay Native Association on behalf Certifying Officer, Division of Trade King Salmon, AK; Notice of of Bristol Bay salmon fishermen, State Adjustment Assistance. Termination of Investigation [FR Doc. 03–2735 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Commission Permit No. 58662X, King BILLING CODE 4510–30–P Pursuant to Title V of the North Salmon, Alaska. American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR petition be withdrawn. Consequently, concerning transitional adjustment further investigation in this case would assistance, hereinafter called NAFTA- Employment and Training serve no purpose, and the investigation TAA and in accordance with section Administration has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Signed in Washington, DC this 29th day of of the Trade Act of 1974, as amended [NAFTA–6787] November, 2002. (19 U.S.C. 2273), an investigation was Linda G. Poole, initiated on September 5, 2002 in State of Alaska Commercial Fisheries Certifying Officer, Division of Trade response to a petition filed by the Entry Commission Permit No. 58196R, Adjustment Assistance. Bristol Bay Native Association on behalf King Salmon, AK; Notice of [FR Doc. 03–2737 Filed 2–4–03; 8:45 am] of Bristol Bay salmon fishermen, State Termination of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit No. 66997L, King Pursuant to Title V of the North Salmon, Alaska. American Free Trade Agreement DEPARTMENT OF LABOR The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment Employment and Training further investigation in this case would assistance, hereinafter called NAFTA– Administration serve no purpose, and the investigation TAA and in accordance with section has been terminated. 250(a), Subchapter D, Chapter 2, Title II, [NAFTA–6790] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 55574A, Linda G. Poole, response to a petition filed by the King Salmon, AK; Notice of Certifying Officer, Division of Trade Bristol Bay Native Association on behalf Termination of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2739 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North of Alaska Commercial Fisheries Entry BILLING CODE 4510–30–P American Free Trade Agreement Commission Permit No. 58196R, King Implementation Act (Pub. L. 103–182) Salmon, Alaska. concerning transitional adjustment The petitioner has requested that the DEPARTMENT OF LABOR assistance, hereinafter called NAFTA– petition be withdrawn. Consequently, TAA and in accordance with section Employment and Training further investigation in this case would 250(a), Subchapter D, Chapter 2, Title II, Administration serve no purpose, and the investigation of the Trade Act of 1974, as amended has been terminated. (19 U.S.C. 2273), an investigation was [NAFTA–6793] Signed in Washington, DC this 29th day of initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Entry Commission Permit No. 60215O, Linda G. Poole, Bristol Bay Native Association on behalf King Salmon, AK; Notice of Certifying Officer, Division of Trade of Bristol Bay salmon fishermen, State Termination of Investigation Adjustment Assistance. of Alaska Commercial Fisheries Entry [FR Doc. 03–2736 Filed 2–4–03; 8:45 am] Commission Permit No. 55574A, King Pursuant to Title V of the North BILLING CODE 4510–30–P Salmon, Alaska. American Free Trade Agreement

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Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR The petitioner has requested that the concerning transitional adjustment petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– Employment and Training further investigation in this case would TAA and in accordance with section Administration serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, has been terminated. [NAFTA–6796] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 50073U, Linda G. Poole, response to a petition filed by the King Salmon, AK; Notice of Certifying Officer, Division of Trade Bristol Bay Native Association on behalf Termination of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2743 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Pursuant to Title V of the North BILLING CODE 4510–30–P Commission Permit No. 60215O, King American Free Trade Agreement Salmon, Alaska. Implementation Act (Pub. L. 103–182) The petitioner has requested that the concerning transitional adjustment DEPARTMENT OF LABOR petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– further investigation in this case would TAA and in accordance with section Employment and Training serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, Administration has been terminated. of the Trade Act of 1974, as amended [NAFTA–6798] Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Linda G. Poole, Entry Commission Permit No. 50075F, Bristol Bay Native Association on behalf Certifying Officer, Division of Trade King Salmon, AK; Notice of of Bristol Bay salmon fishermen, State Adjustment Assistance. Termination of Investigation [FR Doc. 03–2740 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Commission Permit No. 50073U, King BILLING CODE 4510–30–P Pursuant to Title V of the North Salmon, Alaska. American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR petition be withdrawn. Consequently, concerning transitional adjustment further investigation in this case would assistance, hereinafter called NAFTA– Employment and Training serve no purpose, and the investigation TAA and in accordance with section Administration has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Signed in Washington, DC this 29th day of of the Trade Act of 1974, as amended [NAFTA–6795] November, 2002. (19 U.S.C. 2273), an investigation was Linda G. Poole, initiated on September 5, 2002 in State of Alaska Commercial Fisheries Certifying Officer, Division of Trade response to a petition filed by the Entry Commission Permit No. 50167A, Adjustment Assistance. Bristol Bay Native Association on behalf King Salmon, AK; Notice of [FR Doc. 03–2742 Filed 2–4–03; 8:45 am] of Bristol Bay salmon fishermen, State Termination of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit No. 50075F, King Pursuant to Title V of the North Salmon, Alaska. American Free Trade Agreement DEPARTMENT OF LABOR The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment Employment and Training further investigation in this case would assistance, hereinafter called NAFTA– Administration serve no purpose, and the investigation TAA and in accordance with section has been terminated. 250(a), Subchapter D, Chapter 2, Title II, [NAFTA–6797] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 50075F, Linda G. Poole, response to a petition filed by the King Salmon, AK; Notice of Certifying Officer, Division of Trade Bristol Bay Native Association on behalf Termination of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2744 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North of Alaska Commercial Fisheries Entry BILLING CODE 4510–30–P American Free Trade Agreement Commission Permit No. 50167A, King Implementation Act (Pub. L. 103–182) Salmon, Alaska. concerning transitional adjustment The petitioner has requested that the DEPARTMENT OF LABOR assistance, hereinafter called NAFTA– petition be withdrawn. Consequently, TAA and in accordance with section Employment and Training further investigation in this case would 250(a), Subchapter D, Chapter 2, Title II, Administration serve no purpose, and the investigation of the Trade Act of 1974, as amended has been terminated. (19 U.S.C. 2273), an investigation was [NAFTA–6799] Signed in Washington, DC this 29th day of initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Entry Commission Permit No. 55933B, Linda G. Poole, Bristol Bay Native Association on behalf Kokhanok, AK; Notice of Termination Certifying Officer, Division of Trade of Bristol Bay salmon fishermen, State of Investigation Adjustment Assistance. of Alaska Commercial Fisheries Entry [FR Doc. 03–2741 Filed 2–4–03; 8:45 am] Commission Permit No. 50075F, King Pursuant to Title V of the North BILLING CODE 4510–30–P Salmon, Alaska. American Free Trade Agreement

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Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR The petitioner has requested that the concerning transitional adjustment petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– Employment and Training further investigation in this case would TAA and in accordance with section Administration serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, has been terminated. [NAFTA–7413] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 66587G, Linda G. Poole, response to a petition filed by the Nondalton, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2749 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Pursuant to Title V of the North BILLING CODE 4510–30–P Commission Permit No. 55933B, American Free Trade Agreement Kokhanok, Alaska. Implementation Act (Pub. L. 103–182) The petitioner has requested that the concerning transitional adjustment DEPARTMENT OF LABOR petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– further investigation in this case would TAA and in accordance with section Employment and Training serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, Administration has been terminated. of the Trade Act of 1974, as amended [NAFTA–7416] Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Linda G. Poole, Entry Commission Permit No. 65886P, Bristol Bay Native Association on behalf Certifying Officer, Division of Trade Nondalton, AK; Notice of Termination of Bristol Bay salmon fishermen, State Adjustment Assistance. of Investigation [FR Doc. 03–2745 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Commission Permit No. 66587G, BILLING CODE 4510–30–P Pursuant to Title V of the North Nondalton, Alaska. American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR petition be withdrawn. Consequently, concerning transitional adjustment further investigation in this case would assistance, hereinafter called NAFTA– Employment and Training serve no purpose, and the investigation TAA and in accordance with section Administration has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Signed in Washington, DC this 29th day of of the Trade Act of 1974, as amended [NAFTA–7412] November, 2002. (19 U.S.C. 2273), an investigation was Linda G. Poole, initiated on September 5, 2002 in State of Alaska Commercial Fisheries Certifying Officer, Division of Trade response to a petition filed by the Entry Commission Permit No. 58233O, Adjustment Assistance. Bristol Bay Native Association on behalf Newhalen, AK; Notice of Termination [FR Doc. 03–2748 Filed 2–4–03; 8:45 am] of Bristol Bay salmon fishermen, State of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit No. 65886P, Pursuant to Title V of the North Nondalton, Alaska. American Free Trade Agreement DEPARTMENT OF LABOR The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment Employment and Training further investigation in this case would assistance, hereinafter called NAFTA– Administration serve no purpose, and the investigation TAA and in accordance with section has been terminated. 250(a), Subchapter D, Chapter 2, Title II, [NAFTA–7415] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 65175O, Linda G. Poole, response to a petition filed by the Nondalton, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2750 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North of Alaska Commercial Fisheries Entry BILLING CODE 4510–30–P American Free Trade Agreement Commission Permit No. 58233O, Implementation Act (Pub. L. 103–182) Newhalen, Alaska. concerning transitional adjustment The petitioner has requested that the DEPARTMENT OF LABOR assistance, hereinafter called NAFTA– petition be withdrawn. Consequently, TAA and in accordance with section Employment and Training further investigation in this case would 250(a), Subchapter D, Chapter 2, Title II, Administration serve no purpose, and the investigation of the Trade Act of 1974, as amended has been terminated. (19 U.S.C. 2273), an investigation was [NAFTA–7417] Signed in Washington, DC this 29th day of initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Entry Commission Permit No. 64782N, Linda G. Poole, Bristol Bay Native Association on behalf Nondalton, AK; Notice of Termination Certifying Officer, Division of Trade of Bristol Bay salmon fishermen, State of Investigation Adjustment Assistance. of Alaska Commercial Fisheries Entry [FR Doc. 03–2747 Filed 2–4–03; 8:45 am] Commission Permit No. 65175O, Pursuant to Title V of the North BILLING CODE 4510–30–P Nondalton, Alaska. American Free Trade Agreement

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Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR The petitioner has requested that the concerning transitional adjustment petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– Employment and Training further investigation in this case would TAA and in accordance with section Administration serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, has been terminated. [NAFTA–7419] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 64670W, Linda G. Poole, response to a petition filed by the Nondalton, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2754 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Pursuant to Title V of the North BILLING CODE 4510–30–P Commission Permit No. 64782N, American Free Trade Agreement Nondalton, Alaska. Implementation Act (Pub. L. 103–182) The petitioner has requested that the concerning transitional adjustment DEPARTMENT OF LABOR petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– further investigation in this case would TAA and in accordance with section Employment and Training serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, Administration has been terminated. of the Trade Act of 1974, as amended [NAFTA–7421] Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Linda G. Poole, Entry Commission Permit No. 58779E, Bristol Bay Native Association on behalf Certifying Officer, Division of Trade Pedro Bay, AK; Notice of Termination of Bristol Bay salmon fishermen, State Adjustment Assistance. of Investigation [FR Doc. 03–2751 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Commission Permit No. 64670W, BILLING CODE 4510–30–P Pursuant to Title V of the North Nondalton, Alaska. American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR petition be withdrawn. Consequently, concerning transitional adjustment further investigation in this case would assistance, hereinafter called NAFTA– Employment and Training serve no purpose, and the investigation TAA and in accordance with section Administration has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Signed in Washington, DC this 29th day of of the Trade Act of 1974, as amended [NAFTA–7418] November, 2002. (19 U.S.C. 2273), an investigation was Linda G. Poole, initiated on September 5, 2002 in State of Alaska Commercial Fisheries Certifying Officer, Division of Trade response to a petition filed by the Entry Commission Permit No. 64951U, Adjustment Assistance. Bristol Bay Native Association on behalf Nondalton, AK; Notice of Termination [FR Doc. 03–2753 Filed 2–4–03; 8:45 am] of Bristol Bay salmon fishermen, State of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit No. 58779E, Pedro Pursuant to Title V of the North Bay, Alaska. American Free Trade Agreement DEPARTMENT OF LABOR The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment Employment and Training further investigation in this case would assistance, hereinafter called NAFTA– Administration serve no purpose, and the investigation TAA and in accordance with section has been terminated. 250(a), Subchapter D, Chapter 2, Title II, [NAFTA–7420] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 65111I, Linda G. Poole, response to a petition filed by the Nondalton, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2755 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North of Alaska Commercial Fisheries Entry BILLING CODE 4510–30–P American Free Trade Agreement Commission Permit No. 64951U, Implementation Act (Pub. L. 103–182) Nondalton, Alaska. concerning transitional adjustment The petitioner has requested that the DEPARTMENT OF LABOR assistance, hereinafter called NAFTA– petition be withdrawn. Consequently, TAA and in accordance with section Employment and Training further investigation in this case would 250(a), Subchapter D, Chapter 2, Title II, Administration serve no purpose, and the investigation of the Trade Act of 1974, as amended has been terminated. (19 U.S.C. 2273), an investigation was [NAFTA–7422] Signed in Washington, DC this 29th day of initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Entry Commission Permit No. 59935J, Linda G. Poole, Bristol Bay Native Association on behalf Pedro Bay, AK; Notice of Termination Certifying Officer, Division of Trade of Bristol Bay salmon fishermen, State of Investigation Adjustment Assistance. of Alaska Commercial Fisheries Entry [FR Doc. 03–2752 Filed 2–4–03; 8:45 am] Commission Permit No. 65111I, Pursuant to Title V of the North BILLING CODE 4510–30–P Nondalton, Alaska. American Free Trade Agreement

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Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR The petitioner has requested that the concerning transitional adjustment petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– Employment and Training further investigation in this case would TAA and in accordance with section Administration serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, has been terminated. [NAFTA–7425] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 58352B, Linda G. Poole, response to a petition filed by the Pilot Point, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2759 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Pursuant to Title V of the North BILLING CODE 4510–30–P Commission Permit No. 59935J, Pedro American Free Trade Agreement Bay, Alaska. Implementation Act (Pub. L. 103–182) The petitioner has requested that the concerning transitional adjustment DEPARTMENT OF LABOR petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– further investigation in this case would TAA and in accordance with section Employment and Training serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, Administration has been terminated. of the Trade Act of 1974, as amended [NAFTA–7427] Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Linda G. Poole, Entry Commission Permit No. 59641L, Bristol Bay Native Association on behalf Certifying Officer, Division of Trade Pilot Point, AK; Notice of Termination of Bristol Bay salmon fishermen, State Adjustment Assistance. of Investigation [FR Doc. 03–2756 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Commission Permit No. 58352B, Pilot BILLING CODE 4510–30–P Pursuant to Title V of the North Point, Alaska. American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR petition be withdrawn. Consequently, concerning transitional adjustment further investigation in this case would assistance, hereinafter called NAFTA– Employment and Training serve no purpose, and the investigation TAA and in accordance with section Administration has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Signed in Washington, DC this 29th day of of the Trade Act of 1974, as amended [NAFTA–7423] November, 2002. (19 U.S.C. 2273), an investigation was Linda G. Poole, initiated on September 5, 2002 in State of Alaska Commercial Fisheries Certifying Officer, Division of Trade response to a petition filed by the Entry Commission Permit No. 59954M, Adjustment Assistance. Bristol Bay Native Association on behalf Pilot Point, AK; Notice of Termination [FR Doc. 03–2758 Filed 2–4–03; 8:45 am] of Bristol Bay salmon fishermen, State of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit No. 59641L, Pilot Pursuant to Title V of the North Point, Alaska. American Free Trade Agreement DEPARTMENT OF LABOR The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment Employment and Training further investigation in this case would assistance, hereinafter called NAFTA– Administration serve no purpose, and the investigation TAA and in accordance with section has been terminated. 250(a), Subchapter D, Chapter 2, Title II, [NAFTA–7426] of the Trade Act of 1974, as amended Signed in Washington, DC this 26th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 65050X, Linda G. Poole, response to a petition filed by the Pilot Point, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2760 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North of Alaska Commercial Fisheries Entry BILLING CODE 4510–30–P American Free Trade Agreement Commission Permit No. 59954M, Pilot Implementation Act (Pub. L. 103–182) Point, Alaska. concerning transitional adjustment The petitioner has requested that the DEPARTMENT OF LABOR assistance, hereinafter called NAFTA– petition be withdrawn. Consequently, TAA and in accordance with section Employment and Training further investigation in this case would 250(a), Subchapter D, Chapter 2, Title II, Administration serve no purpose, and the investigation of the Trade Act of 1974, as amended has been terminated. (19 U.S.C. 2273), an investigation was [NAFTA–7428] Signed in Washington, DC this 29th day of initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Entry Commission Permit No. 65907J, Linda G. Poole, Bristol Bay Native Association on behalf Pilot Point, AK; Notice of Termination Certifying Officer, Division of Trade of Bristol Bay salmon fishermen, State of Investigation Adjustment Assistance. of Alaska Commercial Fisheries Entry [FR Doc. 03–2757 Filed 2–4–03; 8:45 am] Commission Permit No. 65050X, Pilot Pursuant to Title V of the North BILLING CODE 4510–30–P Point, Alaska. American Free Trade Agreement

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Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR The petitioner has requested that the concerning transitional adjustment petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– Employment and Training further investigation in this case would TAA and in accordance with section Administration serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, has been terminated. [NAFTA–7431] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 58140B, Linda G. Poole, response to a petition filed by the Port Alsworth, AK; Notice of Certifying Officer, Division of Trade Bristol Bay Native Association on behalf Termination of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2764 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Pursuant to Title V of the North BILLING CODE 4510–30–P Commission Permit No. 65907J, Pilot American Free Trade Agreement Point, Alaska. Implementation Act (Pub. L. 103–182) The petitioner has requested that the concerning transitional adjustment DEPARTMENT OF LABOR petition be withdrawn. Consequently, assistance, hereinafter called NAFTA– further investigation in this case would TAA and in accordance with section Employment and Training serve no purpose, and the investigation 250(a), Subchapter D, Chapter 2, Title II, Administration has been terminated. of the Trade Act of 1974, as amended [NAFTA–7433] Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was initiated on September 5, 2002 in November, 2002. State of Alaska Commercial Fisheries response to a petition filed by the Linda G. Poole, Entry Commission Permit No. 59894U, Bristol Bay Native Association on behalf Certifying Officer, Division of Trade Port Heiden, AK; Notice of Termination of Bristol Bay salmon fishermen, State Adjustment Assistance. of Investigation [FR Doc. 03–2761 Filed 2–4–03; 8:45 am] of Alaska Commercial Fisheries Entry Commission Permit # 58140B, Port Pursuant to Title V of the North BILLING CODE 4510–30–P Alsworth, Alaska. American Free Trade Agreement The petitioner has requested that the Implementation Act (Pub. L. 103–182) DEPARTMENT OF LABOR petition be withdrawn. Consequently, concerning transitional adjustment further investigation in this case would assistance, hereinafter called NAFTA– Employment and Training serve no purpose, and the investigation TAA and in accordance with section Administration has been terminated. 250(a), Subchapter D, Chapter 2, Title II, Signed in Washington, DC this 29th day of of the Trade Act of 1974, as amended [NAFTA–7430] November, 2002. (19 U.S.C. 2273), an investigation was Linda G. Poole, initiated on September 5, 2002 in State of Alaska Commercial Fisheries Certifying Officer, Division of Trade response to a petition filed by the Entry Commission Permit No. 58139K, Adjustment Assistance. Bristol Bay Native Association on behalf Port Alsworth, AK; Notice of [FR Doc. 03–2763 Filed 2–4–03; 8:45 am] of Bristol Bay salmon fishermen, State Termination of Investigation BILLING CODE 4510–30–P of Alaska Commercial Fisheries Entry Commission Permit # 59894U, Port Pursuant to Title V of the North Heiden, Alaska. American Free Trade Agreement DEPARTMENT OF LABOR The petitioner has requested that the Implementation Act (Pub. L. 103–182) petition be withdrawn. Consequently, concerning transitional adjustment Employment and Training further investigation in this case would assistance, hereinafter called NAFTA– Administration serve no purpose, and the investigation TAA and in accordance with section has been terminated. 250(a), Subchapter D, Chapter 2, Title II, [NAFTA–7432] of the Trade Act of 1974, as amended Signed in Washington, DC this 29th day of (19 U.S.C. 2273), an investigation was State of Alaska Commercial Fisheries November, 2002. initiated on September 5, 2002 in Entry Commission Permit No. 65423Q, Linda G. Poole, response to a petition filed by the Port Heiden, AK; Notice of Termination Certifying Officer, Division of Trade Bristol Bay Native Association on behalf of Investigation Adjustment Assistance. of Bristol Bay salmon fishermen, State [FR Doc. 03–2765 Filed 2–4–03; 8:45 am] Pursuant to Title V of the North of Alaska Commercial Fisheries Entry BILLING CODE 4510–30–P American Free Trade Agreement Commission Permit No. 58139K, Port Implementation Act (Pub. L. 103–182) Alsworth, Alaska. concerning transitional adjustment The petitioner has requested that the assistance, hereinafter called NAFTA– NATIONAL COUNCIL ON DISABILITY petition be withdrawn. Consequently, TAA and in accordance with section further investigation in this case would Youth Advisory Committee Meetings 250(a), Subchapter D, Chapter 2, Title II, serve no purpose, and the investigation (Teleconferences) of the Trade Act of 1974, as amended has been terminated. (19 U.S.C. 2273), an investigation was Times and Dates: 12 p.m., EST March Signed in Washington, DC this 29th day of initiated on September 5, 2002 in 21, 2003, and 12 p.m., EDT May 23, November, 2002. response to a petition filed by the 2003. Linda G. Poole, Bristol Bay Native Association on behalf Place: National Council on Disability, Certifying Officer, Division of Trade of Bristol Bay salmon fishermen, State 1331 F Street, NW., Suite 850, Adjustment Assistance. of Alaska Commercial Fisheries Entry Washington, DC. [FR Doc. 03–2762 Filed 2–4–03; 8:45 am] Commission Permit # 65423Q, Port Agency: National Council on BILLING CODE 4510–30–P Heiden, Alaska. Disability (NCD).

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Status: All parts of this meeting will privacy; and information the premature NATIONAL SCIENCE FOUNDATION be open to the public. Those interested disclosure of which would be likely to in participating in these meetings significantly frustrate implementation of Notice of Intent to Extend an (teleconferences) should contact the proposed agency action. I have made Information Collection appropriate staff member listed below. this determination under the authority AGENCY: National Science Foundation. Due to limited resources, only a few granted me by the Chairman’s telephone lines will be available for Delegation of Authority dated July 19, ACTION: Notice and request for these conference calls. 1993. comments. Agenda: Roll call, announcements, The agenda for the session on SUMMARY: In compliance with the reports, new business, adjournment. February 27, 2003, will be as follows: requirement of section 3506(c)(2)(A) of FOR FURTHER INFORMATION CONTACT: Committee Meetings (Open to the public) Policy discussion. the Paperwork Reduction Act of 1995 Geraldine Drake Hawkins, Ph.D., for opportunity for public comment on Program Specialist, National Council on 9—10:30 a.m. Education Programs—Room 714 proposed data collection projects, the Disability, 1331 F Street NW., Suite 850, National Science Foundation (NSF) will Washington, DC 20004; 202–272–2004 Federal/State Partnership—Room 507 Preservation and Access—Room 415 publish periodic summaries of proposed (voice), 202–272–2074 (TTY), 202–272– Public Programs—Room 420 projects. 2022 (fax), [email protected] (e-mail). Research Programs—Room 315 Comments are invited on (a) Whether Youth Advisory Committee Mission: (Closed to the public) Discussion of the proposed collection of information The purpose of NCD’s Youth Advisory specific grant applications and programs is necessary for the proper performance Committee is to provide input into NCD before the Council. of the functions of the agency, including activities consistent with the values and 10:30 a.m. until adjourned whether the information shall have goals of the Americans with Disabilities practical utility; (b) the accuracy of the Act. Education Programs—Room 714 Federal/State Partnership—Room 507 agency’s estimate of the burden of the Dated: January 31, 2003. Preservation and Access—Room 415 proposed collection of information; (c) Ethel D. Briggs, Public Programs—Room 420 ways to enhance the quality, utility, and Executive Director. Research Programs—Room 315 clarity of the information to be Jefferson Lecture—Room 527 [FR Doc. 03–2795 Filed 2–4–03; 8:45 am] collected; and (d) ways to minimize the The morning session on February 28, BILLING CODE 6820–MA–P burden of the collection of information 2003, will convene at 9 a.m., in the 1st on respondents, including through the Floor Council Room M–09, and will be use of automated collection techniques open to the public, as set out below. The NATIONAL COUNCIL ON THE or other forms of information agenda for the morning session will be HUMANITIES technology. as follows: DATES: Written comments on this notice Meeting A. Minutes of the previous meeting. must be received by April 7, 2003 to be B. Reports assured of consideration. Comments January 31, 2003. 1. Introductory remarks received after that date will be Pursuant to the provisions of the 2. Staff report considered to the extent practicable. Federal Advisory Committee Act (Pub. 3. Congressional report L. 92–463, as amended) notice is hereby 4. Budget report FOR ADDITIONAL INFORMATION OR given the National Council on the 5. Reports on policy and general COMMENTS: Contact Suzanne H. Humanities will meet in Washington, matters Plimpton, Reports Clearance Officer, DC on February 27–28, 2003. a. Overview National Science Foundation, 4201 The purpose of the meeting is to b. Research programs Wilson Boulevard, Suite 295, Arlington, c. Education programs Virginia 22230; telephone (703) 292– advise the Chairman of the National d. Preservation and access Endowment for the Humanities with 7556; or send email to e. Public programs [email protected]. Individuals who use respect to policies, programs, and f. Federal/State partnership procedures for carrying out his g. Jefferson lecture a telecommunications device for the deaf (TDD) may call the Federal functions, and to review applications for The remainder of the proposed Information Relay Service (FIRS) at 1– financial support from and gifts offered meeting will be given to the 800–877–8339 between 8 a.m. and 8 to the Endowment and to make consideration of specific applications p.m., Eastern time, Monday through recommendations thereon to the and closed to the public for the reasons Friday. You also may obtain a copy of Chairman. stated above. the data collection instrument and The meeting will be held in the Old Further information about this instructions from Ms. Plimpton. Post Office Building, 1100 Pennsylvania meeting can be obtained from Mr. Avenue, NW., Washington, DC. A Daniel C. Schneider, Advisory SUPPLEMENTARY INFORMATION: portion of the morning and afternoon Committee Management Officer, Title of Collection: Request for sessions on February 27–28, 2003, will National Endowment for the Proposals. not be open to the public pursuant to Humanities, 1100 Pennsylvania Avenue, OMB Approval Number: 3145–0080. subsections (c)(4),(c)(6) and (c)(9)(B) of NW., Washington, DC 20506, or by Expiration Date of Approval: July 31, section 552b of title 5, United States calling (202) 606–8322, TDD (202) 606– 2003. Code because the Council will consider 8282. Advance notice of any special Type of Request: Intent to seek information that may disclose: Trade needs or accommodations is approval to extend an information secrets and commercial or financial appreciated. collection for three years. information obtained from a person and Proposed Project: The Federal privileged or confidential; information Daniel C. Schneider, Acquisition Regulations (FAR) Subpart of a personal nature the disclosure of Advisory Committee, Management Officer. 15.2—‘‘Solicitation and Receipt of which would constitute a clearly [FR Doc. 03–2779 Filed 2–4–03; 8:45 am] Proposals and Information’’ prescribes unwarranted invasion of personal BILLING CODE 7536–01–P policies and procedures for preparing

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and issuing Requests for Proposals. The granted the request of Tennessee Valley OFFICE OF PERSONNEL FAR System has been developed in Authority (the licensee) to withdraw its MANAGEMENT accordance with the requirement of the July 10, 2002, application for proposed Office of Federal Procurement Policy amendment to Facility Operating Submission for OMB Emergency Act of 1974, as amended. The NSF Act License No. DPR–79 for the Sequoyah Clearance and Review; Comment of 1950, as amended, 42 U.S.C. 1870, Nuclear Plant, Unit No. 2, located in Request for New Information Sec. II, states that NSF has the authority Hamilton County, Tennessee. Collection: Scholarship for Service to: The proposed one-time technical Program Internet Web Site (c) Enter into contracts or other specification (TS) change would have revised the Sequoyah Unit 2 Limiting AGENCY: Office of Personnel arrangements, or modifications thereof, for Management. the carrying on, by organizations or Condition for Operation for TS Section individuals in the United States and foreign 3.7.4, ‘‘Essential Raw Cooling Water ACTION: Notice. countries, including other government System,’’ to include provisions for agencies of the United States and of foreign maintaining operability of this system SUMMARY: In accordance with the countries, of such scientific or engineering during performance of heavy load lifts Paperwork Reduction Act of 1995 activities as the Foundation deems necessary associated with the Unit 1 steam (Public Law 104–13, May 22, 1995), this to carry out the purposes of this Act, and, at generator replacement (SGR) project. notice announces that the Office of the request of the Secretary of Defense, specific scientific or engineering activities in The provisions were intended to ensure Personnel Management (OPM) connection with matters relating to safe operation of Unit 2 during heavy submitted a request to the Office of international cooperation or national load lift activities. In addition, Management and Budget for emergency security, and, when deemed appropriate by compensatory measures proposed clearance and review of a new the Foundation, such contracts or other would have ensured safe shutdown information collection for a Scholarship arrangements or modifications thereof, may capability of Unit 2 in the unlikely For Service Program internet website. be entered into without legal consideration, event a heavy load drop occurs over Approval of the Scholarship For Service without performance or other bonds and Essential Raw Cooling Water system Program internet website is necessary to without regard to section 5 of title 41, U.S.C. piping. facilitate the timely registration, Use of the Information: Request for The Commission had previously selection and placement of program- Proposals (RFP) is used to competitively issued a Notice of Consideration of enrolled students in Federal agencies. solicit proposals in response to NSF Issuance of Amendment published in The SFS Program was established by need for services. Impact will be on the Federal Register on August 6, 2002 the National Science Foundation in those individuals or organizations who (67 FR 50960). However, by letter dated accordance with the Federal Cyber elect to submit proposals in response to November 15, 2002, the licensee Service Training and Education the RFP. Information gathered will be withdrew the proposed change. Initiative as described in the President’s evaluated in light of NSF procurement For further details with respect to this National Plan for Information Systems requirements to determine who will be action, see the application for Protection. This program seeks to awarded a contract. amendment dated July 10, 2002, and the increase the number of qualified Estimate of Burden: The Foundation licensee’s letter dated November 15, students entering the fields of estimates that, on average, 558 hours per 2002, which withdrew the application information assurance and computer respondent will be required to complete for license amendment. Documents may security in an effort to respond to the RFP. be examined, and/or copied for a fee, at threats to the Federal Government’s Respondents: Individuals; business or the NRC’s Public Document Room information technology infrastructure. other for-profit; not-for-profit (PDR), located at One White Flint North, The program provides capacity building institutions; Federal government; state, Public File Area O1 F21, 11555 grants to selected 4-year colleges and local, or tribal governments. Rockville Pike, Rockville, Maryland. universities to develop or improve their Estimated Number of Responses: 75. Publicly available records will be capacity to train information assurance Estimated Total Annual Burden of accessible electronically from the professionals. It also provides selected Respondents: 41,850 hours. Agencywide Documents Access and 4-year colleges and universities Dated: January 30, 2003. Management Systems (ADAMS) Public scholarship grants to attract students to Electronic Reading Room on the Internet Suzanne H. Plimpton, the information assurance field. at the NRC Web site, http:// Participating students who receive Reports Clearance Officer, National Science www.nrc.gov/reading-rm/adams/html. Foundation. scholarships from this program are Persons who do not have access to [FR Doc. 03–2640 Filed 2–4–03; 8:45 am] required to serve a 10-week internship ADAMS or who encounter problems in during their studies and complete a BILLING CODE 7555–01–M accessing the documents located in post-graduation employment ADAMS, should contact the NRC PDR commitment equivalent to the length of Reference staff by telephone at 1–800– the scholarship or one year, whichever NUCLEAR REGULATORY 397–4209, or 301–415–4737 or by e-mail is longer. COMMISSION to [email protected]. In anticipation of the fall 2002 Tennessee Valley Authority; Sequoyah Dated at Rockville, Maryland, this 30th day graduating classes of participating Nuclear Plant, Unit 2 of January 2003. institutions, OPM projects an additional For the Nuclear Regulatory Commission. 30 students to be placed, with up to 200 [Docket No. 50–328] Raj K. Anand, students presently needing placement. Notice of Withdrawal of Application for Project Manager, Section 2, Project This is a new collection of information. Amendment to Facility Operating Directorate II, Division of Licensing Project Based on other programs that collect License Management, Office of Nuclear Reactor similar information, we estimate the Regulation. collection of information for registering The U.S. Nuclear Regulatory [FR Doc. 03–2711 Filed 2–4–03; 8:45 am] and creating an online resume to be 45 Commission (the Commission) has BILLING CODE 7590–01–P minutes to 1-hour in length of time to

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answer questions. We estimate the total OMB Control No. 3235–0346. requirements of rule 31a–1, most of the number of hours to be 200. Notice is hereby given that pursuant records created pursuant to the rule are Comments are particularly invited on: to the Paperwork Reduction Act of 1995 the type that generally would be created whether this information is necessary (44 U.S.C. 3501–3520), the Securities as a matter of normal business custom for the proper performance of functions and Exchange Commission and to prepare financial statements. of the Office of Personnel Management, (‘‘Commission’’) has submitted to the The collection of information required and whether it will have practical Office of Management and Budget by rule 31a–1 is mandatory. Responses utility; whether our estimate of the (‘‘OMB’’) a request for extension on the will not be kept confidential. The public burden of this collection of previously approved collections of records required by rule 31a–1 are information is accurate, and based on information discussed below. required to be preserved pursuant to valid assumptions and methodology; Rule 31a–1 (17 CFR 270.31a–1) under rule 31a–2 under the Investment and ways in which we can minimize the the Investment Company Act of 1940 Company Act (17 CFR 270.31a–2). Rule burden of the collection of information (the ‘‘Act’’) is entitled ‘‘Records to be 31a–2 requires that certain of these on those who are to respond, through maintained by registered investment records be preserved permanently, and the use of appropriate technological companies, certain majority-owned that others be preserved six years from collection techniques or other forms of subsidiaries thereof, and other persons the end of the fiscal year in which any information technology. having transactions with registered transaction occurred. In both cases, the For copies of this proposal, contact investment companies.’’ Rule 31a–1 records should be kept in an easily Mary Beth Smith-Toomey at (202) 606– requires registered investment accessible place for the first two years. 8358, fax (202) 418–3251 or e-mail to companies (‘‘funds’’), and every Section 18(f)(1) 1 of the Act 2 prohibits [email protected]. Please include underwriter, broker, dealer, or registered open-end management your complete mailing address with investment adviser that is a majority- investment companies from issuing any your request. owned subsidiary of a fund, to maintain senior security. Rule 18f–3 under the and keep current accounts, books, and 3 DATES: Comments on this proposal Act exempts from section 18(f)(1) a should be received within five (5) other documents which constitute the fund that issues multiple classes of calendar days from the date of this record forming the basis for financial shares representing interests in the same publication. We are requesting OMB to statements required to be filed pursuant portfolio of securities (a ‘‘multiple class to section 30 of the Act (15 U.S.C. 80a– take action within ten (10) calendar fund’’) if the fund satisfies the 30) and of the auditor’s certificates days from the close of this Federal conditions of the rule. In general, each relating thereto. The rule lists specific Register Notice. class must differ in its arrangement for records to be maintained by funds. The shareholder services or distribution or ADDRESSES: Send or deliver comments rule also requires certain underwriters, both, and must pay the related expenses to: U.S. Office of Personnel brokers, dealers, depositors, and of that different arrangement. Management, Employment Service, investment advisers to maintain the The rule includes one requirement for ATTN: Rob Timmins, 1900 E Street, records that they are required to the collection of information. A NW., Room 1425, Washington, DC maintain under federal securities laws. multiple class fund must prepare and 20415–9820, E-mail: The Commission periodically inspects fund directors must approve a written [email protected]; and Stuart Shapiro, the operations of funds to insure their plan setting forth the separate OPM Desk Officer, Office of compliance with the provisions of the arrangement and expense allocation of Management and Budget, Office of Act and the rules thereunder. The books each class, and any related conversion Information and Regulatory Affairs, and records required to be maintained features or exchange privileges (‘‘rule New Executive Office Building, NW., by rule 31a–1 constitute a major focus 18f–3 plan’’).4 Approval of the plan Room 10235, Washington, DC 20503. of the Commission’s inspection must occur before the fund issues any Office of Personnel Management. program. shares of multiple classes, and Kay Coles James, There are approximately 4,500 whenever the fund materially amends Director. investment companies registered with the plan. In approving the plan, a the Commission, all of which are [FR Doc. 03–2704 Filed 2–4–03; 8:45 am] majority of the fund board, including a required to comply with rule 31a–1. For BILLING CODE 6325–38–P majority of the fund’s independent purposes of determining the burden directors, must determine that the plan imposed by rule 31a–1, the Commission is in the best interests of each class and staff estimates that each registered the fund as a whole. SECURITIES AND EXCHANGE investment company is divided into COMMISSION The requirement that the fund prepare approximately four series, on average, and directors approve a written rule and that each series is required to Submission for OMB Review; 18f–3 plan is intended to ensure that the comply with the recordkeeping Comment Request fund compiles information relevant to requirements of rule 31a–1. Based on the fairness of the separate arrangement Upon written request, copies available conversations with fund representatives, and expense allocation for each class, from: Securities and Exchange it is estimated that rule 31a–1 imposes and that directors review and approve Commission, Office of Filings and an average burden of approximately the information. Without a blueprint Information Services, Washington, DC 1,400 hours annually per series for a that highlights material differences 20549. total of 5,600 annual hours per among classes, directors might not Extension: Rule 31a–1, SEC File No. investment company. The estimated perceive potential conflicts of interests 270–173, OMB Control No. 3235– total annual burden for all 4,500 when they determine whether the plan 0178; investment companies subject to the is in the best interests of each class and rule 18f–3, SEC File No. 270–385, rule therefore is approximately OMB Control No. 3235–0441; 25,200,000 hours. Based on 1 15 U.S.C. 80a–18(f)(1). rule 498, SEC File No. 270–435, OMB conversations with fund representatives, 2 15 U.S.C. 80a. Control No. 3235–0488; however, the Commission staff 3 17 CFR 270.18f–3. rule 34b–1, SEC File No. 270–305, estimates that even absent the 4 Rule 18f–3(d).

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the fund. In addition, the plan may be investment objectives, strategies, risks appropriate uniformly computed data useful to Commission staff in reviewing and performance, and fees, in a and the legend disclosure required in the fund’s compliance with the rule. standardized format. The profile advertisements by rule 482 under the There are approximately 516 multiple provides investors the option of buying Securities Act of 1933 (17 CFR 230.482). class funds.5 Based on a review of fund shares based on the information in Requiring the inclusion of such typical rule 18f–3 plans, the the profile or reviewing the fund’s standardized performance data in sales Commission’s staff estimates that the prospectus before making an investment literature is designed to prevent 516 funds together make an average of decision. Investors purchasing shares misleading performance claims by funds 258 responses each year to prepare and based on a profile receive the fund’s and to enable investors to make prospectus prior to or with confirmation approve a written rule 18f–3 plan, meaningful comparisons among fund requiring approximately 18.5 hours per of their investment in the fund. performance claims. response, and a total of 4,773 burden Consistent with the filing requirement hours per year in the aggregate.6 of a fund’s prospectus, a profile must be The Commission estimates that Preparation of the rule 18f–3 plan may filed with the Commission 30 days respondents file approximately 37,000 require 11 hours of the services of an before first use. Such a filing allows the responses with the Commission, which attorney or accountant, at a cost of Commission to review the profile for include the information required by rule approximately $130 per hour for compliance with rule 498. Compliance 34b–1. The burden from rule 34b–1 professional time, and approval of the with the rule’s standardized format requires slightly more than 2.4 hours plan may require 1.5 hours of the assists investors in evaluating and per response resulting from creating the attention of each of 5 directors, at a cost comparing funds. information required under rule 34b–1.8 of approximately $500 per hour per It is estimated that approximately 16 The total burden hours for rule 34b–1 is director. The staff therefore estimates initial profiles and 316 updated profiles 89,143 per year in the aggregate (37,000 are filed with the Commission annually. that the aggregate annual cost of responses × 2.4092702 hours per The Commission estimates that each complying with the paperwork response). requirements of the rule is profile contains on average 1.25 approximately $1,336,440 ((11 hours × 1 portfolios, resulting in 20 portfolios The collection of information under professional × 258 responses × $130) + filed annually on initial profiles and 395 rule 34b–1 is mandatory. The (1.5 hours × 5 directors × 258 responses portfolios filed annually on updated information provided under rule 34b–1 × $500)). profiles. The number of burden hours is not kept confidential. The estimated annual burden of 4,773 for preparing and filing an initial profile The estimates of average burden hours hours represents an increase of 3,260.5 per portfolio is 25. The number of are made solely for the purposes of the hours over the prior estimate of 1,512.5 burden hours for preparing and filing an Act and are not derived from a hours. The increase in burden hours is updated profile per portfolio is 10. The comprehensive or even representative total burden hours for preparing and attributable to more accurate estimates survey or study of the cost of filing initial and updated profiles under of the burden hours that reflect Commission rules and forms. An agency additional time spent by professionals rule 498 is 4,450, representing a decrease of 2,660 hours from the prior may not conduct or sponsor, and a and time spent by directors. The person is not required to respond to, a estimated number of multiple class estimate of 7,110. The reduction in burden hours is attributable to the lower collection of information unless it funds has decreased, however, from 550 displays a currently valid OMB control to 516. number of profiles actually prepared number. Complying with this collection of and filed as compared to the previous information requirement is necessary to estimates. Please direct general comments obtain the benefit of relying on rule 18f– The collection of information under regarding the above information to the 3. Responses will not be kept rule 498 is voluntary. The information following persons: (i) Desk Officer for confidential. provided by rule 498 is not kept the Securities and Exchange Rule 498 of the Securities Act of 1933 confidential. Commission, Office of Information and (17 CFR 230.498) permits open-end Rule 34b–1 under the Investment Regulatory Affairs, Office of management investment companies (or Company Act (17 CFR 270.34b–1) Management and Budget, Room 10202, governs sales material that accompanies a series of an investment company New Executive Office Building, or follows the delivery of a statutory organized as a series company, which Washington, DC 20503; and (ii) Kenneth prospectus (‘‘sales literature’’). Rule offers one or more series of shares A. Fogash, Acting Associate Executive representing interests in separate 34b–1 deems to be materially misleading any investment company Director/CIO, Office of Information investment portfolios) (‘‘funds’’) to Technology, Securities and Exchange provide investors with a ‘‘profile’’ that sales literature, required to be filed with the Commission by section 24(b) of the Commission, 450 5th Street, NW., contains a summary of key information Washington, DC 20549. Comments must about a fund, including the fund’s Investment Company Act (15 U.S.C. 80a–24(b)),7 that includes performance be submitted to OMB within 30 days of this notice. 5 This estimate is based on data from form N– data unless it also includes the SAR, the semi-annual report that funds file with the Dated: January 28, 2003. Commission. 7 Sales literature addressed to or intended for J. Lynn Taylor, 6 The estimate reflects the assumption that each distribution to prospective investors shall be multiple class fund prepares and approves a rule deemed filed with the Commission for purposes of Assistant Secretary. 18f–3 plan every two years when issuing a new section 24(b) of the Investment Company Act upon [FR Doc. 03–2645 Filed 2–4–03; 8:45 am] class or amending a plan (or that 258 of all 516 filing with a national securities association funds prepare and approve a plan each year). The registered under section 15A of the Securities BILLING CODE 8010–01–P estimate assumes that the time required to prepare Exchange Act of 1934 that has adopted rules a plan is 11 hours per plan (or 2,838 hours for 258 providing standards for the investment company 8 funds annually), and the time required to approve advertising practices of its members and has The estimated burden per response is 2.9 hours a plan is an additional 1.5 hours per director per established and implemented procedures to review for 686 responses and 2.4 hours for the remaining, plan (or 1,935 hours for 258 funds annually that advertising. See rule 24b–3 under the giving a more exact weighted average burden per (assuming five directors per fund)). Investment Company Act (17 CFR 270.24b–3). response of approximately 2.4092702.

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SECURITIES AND EXCHANGE this notice to solicit comments on the The Exchange recently amended its COMMISSION proposed rule change, as amended, from rules to include ‘‘competition with other interested persons. markets’’ and ‘‘administrative factors’’ Sunshine Act Meeting among the standards by which the I. Self-Regulatory Organization’s Performance Committee may evaluate Statement of the Terms of Substance of FEDERAL REGISTER CITATION OF PREVIOUS specialist performance.5 Pursuant to the Proposed Rule Change ANNOUNCEMENT: (68 FR 5058, January these standards, the Exchange is 31, 2003). The Exchange proposes to adopt proposing to adopt objective STATUS: Open meeting. Commentary .08 to Amex Rule 26 requirements regarding specialist PLACE: 450 Fifth Street, NW., Room (‘‘Performance Committee’’) to establish communications with listed companies 1C30, the William O. Douglas Room, marketing performance standards for and order flow providers.6 The Washington, DC. Exchange specialists. The text of the Exchange believes that the purpose of proposed rule change is available at the DATE AND TIME OF PREVIOUSLY ANNOUNCED the proposed rule change is to enhance Office of the Secretary, Amex, and at the the specialist’s communication function MEETING: Tuesday, February 4, 2003, at Commission. 10 a.m. by requiring that the specialist maintain frequent and personal contact with the CHANGE IN THE MEETING: Time change. II. Self-Regulatory Organization’s Statement of the Purpose of, and listed companies and member firm The open meeting scheduled for customers that he or she serves. Tuesday, February 4, 2003, at 10 a.m. Statutory Basis for, the Proposed Rule Change Under the proposal, specialists would has been changed to Tuesday, February be required to contact off the Floor or, 4, 2003, at noon. In its filing with the Commission, the if on the Trading Floor, outside of the At times, changes in Commission Exchange included statements Exchange’s regular auction market priorities require alterations in the concerning the purpose of, and basis for, business hours, listed companies and scheduling of meeting items. For further the proposed rule change and discussed the sponsors or issuers of Exchange information and to ascertain what, if any comments it received on the Traded Funds, structured products, any, matters have been added, deleted proposed rule change. The text of these Trust Issued Receipts, and other equity or postponed, please contact: statements may be examined at the derivatives on a quarterly basis. These The Office of the Secretary at (202) places specified in Item IV below. The quarterly ‘‘issuer’’ contacts are expected 942–7070. Exchange has prepared summaries, set to help foster an understanding of the forth in Sections A, B, and C below, of Dated: January 31, 2003. specialist function, the operations of the the most significant aspects of such Jonathan G. Katz, statements. performance is neither an action responding to a Secretary. violation of an exchange rule nor an action where [FR Doc. 03–2828 Filed 1–31–03; 4:43 pm] A. Self-Regulatory Organization’s a sanction is sought or intended. Instead, we believe BILLING CODE 8010–01–P Statement of the Purpose of, and the that performance-based security reallocations are Statutory Basis for, the Proposed Rule instituted by exchanges to improve market maker Change performance and to ensure quality of markets. Accordingly, in approving rules for performance- SECURITIES AND EXCHANGE 1. Purpose based reallocations, we historically have taken the COMMISSION position that the reallocation of a specialist’s or a The Committee on Floor Member market maker’s security due to inadequate [Release No. 34–47281; File No. SR–Amex– Performance (‘‘Performance performance does not constitute a disciplinary 2002–48] Committee’’) reviews specialist sanction. We believe that an SRO’s need to evaluate market performance and may take remedial Self-Regulatory Organizations; Notice maker and specialist performance arises from both action, including terminating a business and regulatory interests in ensuring of Filing of a Proposed Rule Change specialist’s registration or reallocating adequate market making performance by its market and Amendment No. 1 Thereto by the securities, when it identifies inadequate makers and specialists that are distinct from the SRO’s enforcement interests in disciplining American Stock Exchange LLC performance. The Exchange believes Relating to its Marketing Performance members who violate SRO or Commission Rules. that the Performance Committee An exchange has an obligation to ensure that its Standards for Exchange Specialists protects both the interests of investors, market makers or specialists are contributing to the by taking remedial actions to correct maintenance of fair and orderly markets in its January 29, 2003. securities. In addition, an exchange has an interest Pursuant to Section 19(b)(1) of the poor performance, and the institutional in ensuring that the services provided by its interests of the Exchange, by ensuring members attract buyers and sellers to the exchange. Securities Exchange Act of 1934 To effectuate both purposes, an SRO needs to be (‘‘Act’’)1 and Rule 19b–4 thereunder,2 that the Amex is as competitive as possible with other markets.4 able to evaluate the performance of its market notice is hereby given that on May 30, makers or specialists and transfer securities from 2002, the American Stock Exchange LLC poor performing units to the better performing Commission, dated January 14, 2003 (‘‘Amendment units. This type of action is very different from a (‘‘Amex’’ or ‘‘Exchange’’) filed with the No. 1’’). Amendment No. 1 clarifies in the proposed disciplinary proceeding where a sanction is meted Securities and Exchange Commission rule text that contacts by exchange specialists to out to remedy a specific rule violation. (Footnotes (‘‘Commission’’) the proposed rule issuers or representatives of member organizations omitted.) change as described in Items I, II, and will be conducted either off the Exchange floor or, See also In re James Niehoff and Company, if on the Exchange floor, outside of normal auction III below, which Items have been Administrative Proceeding File No. 3–6757, market business hours. (November 30, 1986), and the other authorities cited prepared by the Exchange. On January 4 See In the Matter of the Application of Pacific in the Commission’s Post X–17 decision. 27, 2003, the Exchange filed an Stock Exchange’s Options Floor Post X–17, Admin. 5 See Amex Rule 26(b), and Securities Exchange amendment to the proposed rule Proc. File No. 3–7285, Securities Exchange Act Act Release No. 45260 (January 9, 2002), 67 FR change.3 The Commission is publishing Release No. 31666 (December 29, 1992), 51 SEC 2255 (January 16, 2002) (order approving SR– Dkt. 261. The Commission determined that Amex–2001–19). performance evaluation processes fulfill a 6 The Exchange notes that specialist 1 15 U.S.C. 78s(b)(1). combination of business and regulatory interests at communications with issuers, and, in particular, 2 17 CFR 240.19b–4. exchanges and are not disciplinary in nature. The the scope of permissible disclosure between 3 See letter from William Floyd-Jones, Assistant Commission states in the Post X–17 case: specialists and issuers, are discussed in further General Counsel, Amex, to Katherine England, We believe that the reallocation of a market detail in Section 910 of the Amex Company Guide. Assistant Director, Division of Market Regulation, maker’s (or a specialist’s) security due to poor ?≤

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Exchange market, and the markets that principles of trade and protect investors including whether the proposed rule are maintained in the issuers’ stocks. and the public interest by encouraging change, as amended, is consistent with Specialists also would be required to good performance and competition the Act. Persons making written contact (quarterly) off the Floor or, if on among specialists. submissions should file six copies the Trading Floor, outside of the thereof with the Secretary, Securities B. Self-Regulatory Organization’s Exchange’s regular auction market and Exchange Commission, 450 Fifth Statement on Burden on Competition business hours, major order flow Street, NW., Washington, DC 20549– providers to maintain open The Exchange believes that the 0609. Copies of the submission, all communications with these important proposed rule change will impose no subsequent amendments, all written customers of the Exchange. The purpose burden on competition; rather, it will statements with respect to the proposed of these contacts with order flow enhance and encourage competition rule change that are filed with the providers is to discuss the service, within the Exchange, and, more Commission, and all written operational and competitive significantly, among the Exchange and communications relating to the requirements of the member firms. In other exchanges and markets by proposed rule change between the addition, specialists would be required establishing incentives for superior Commission and any person, other than to maintain records of these contacts, performance and thereby ensuring the those that may be withheld from the which would be reviewed by Amex maintenance of quality markets at the public in accordance with the staff. Exchange. In this respect, the Exchange provisions of 5 U.S.C. 552, will be The Exchange notes that the purpose believes that it is critical to recognize available for inspection and copying in of requiring contacts to be made by that the most important level of the Commission’s Public Reference specialists off the Floor or, if on the competition occurs not among Room. Copies of such filing will also be Floor, outside of regular auction market specialists of the same exchange to available for inspection and copying at business hours, is to ensure that the obtain a particular listing (although this, the principal office of the Exchange. contacts can occur without the too, is important), but rather among All submissions should refer to File distractions of a normal business day. specialists of different exchanges No. SR–Amex–2002–48 and should be The Performance Committee would be trading in the same security and actively submitted by February 26, 2003. responsible for taking appropriate competing for the business of the investing public. The Exchange also For the Commission, by the Division of remedial action in the event that a Market Regulation, pursuant to the delegated specialist fails to meet the objective believes the Commission has expressly authority.10 recognized that the types of procedures marketing standards. Margaret H. McFarland, A review by the Performance set forth in the proposed rule change for Committee can result in a variety of reviewing the performance of specialists Deputy Secretary. possible actions, ranging from and taking remedial action where [FR Doc. 03–2676 Filed 2–4–03; 8:45 am] recommendations for performance appropriate, are necessary to ensure BILLING CODE 8010–01–P improvement, a determination not to quality markets.9 permit a firm to seek new allocations, to C. Self-Regulatory Organization’s SECURITIES AND EXCHANGE a reallocation of one or more securities Statement on Comments on the COMMISSION from a specialist. The Performance Proposed Rule Change Received From Committee is not precluded from Members, Participants or Others [Release No. 34–47287; File No. SR–CBOE– reallocating securities based on a single 2002–40] quarter of deficient performance. No written comments were solicited Conversely, the Performance Committee or received with respect to the proposed Self-Regulatory Organizations; Notice is not required to take such actions. rule change. of Filing of a Proposed Rule Change and Amendment No. 1 Thereto by the Rather, the Exchange believes that the III. Date of Effectiveness of the purpose of these standards is to identify Chicago Board Options Exchange, Inc. Proposed Rule Change and Timing for Relating to Options on the CBOE Asian circumstances that warrant review by Commission Action the Performance Committee. The nature 25 Index and Options on the CBOE Within 35 days of the publication of of the appropriate remedial action is Euro 25 Index this notice in the Federal Register or necessarily an issue that involves the within such longer period (i) as the January 30, 2003. professional judgment of the Commission may designate up to 90 Pursuant to Section 19(b)(1) of the Performance Committee members and is days of such date if it finds such longer Securities Exchange Act of 1934 dependent on such matters as the 1 2 period to be appropriate and publishes (‘‘Act’’) and Rule 19b–4 thereunder, securities being traded, competition on its reasons for so finding or (ii) as to notice is hereby given that on July 22, other exchanges, personnel and systems which the Exchange consents, the 2003, the Chicago Board Options changes, and other factors. Accordingly, Commission will: Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’) such determinations are left to the (A) By order approve such proposed filed with the Securities and Exchange expertise, discretion and judgment of rule change or Commission (‘‘Commission’’) the the Performance Committee. (B) Institute proceedings to determine proposed rule change as described in 2. Statutory Basis whether the proposed rule change Items I, II and III below, which Items should be disapproved. have been prepared by the CBOE. On The proposed rule change is January 13, 2003, CBOE filed an consistent with Section 6(b) of the Act 7 IV. Solicitation of Comments amendment to the proposed rule in general, and further the objectives of Interested persons are invited to 3 8 change. The Commission is publishing Section 6(b)(5) of the Act in particular, submit written data, views and in that the Exchange’s procedures are arguments concerning the foregoing, 10 17 CFR 200.30–3(a)(12). designed to promote just and equitable 1 15 U.S.C. 78s(b)(1). 9 See Securities Exhange Act Release No. 45260 2 17 CFR 240.19b–4. 7 15 U.S.C. 78f(b). (January 9, 2002), 67 FR 2255 (January 16, 2002) 3 See letter from James Flynn, Legal Division, 8 15 U.S.C. 78f(b)(5). (order approving Amex–2001–19). CBOE, to Nancy Sanow, Assistant Director, Division

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this notice to solicit comments on the designed to measure the performance of change 6 illustrates the capitalization proposed rule change, as amended, from large market capitalization companies in and weighting of the 25 component interested persons. their respective regions. Both are securities that constitute the current market-capitalization weighted indices CBOE Euro 25 index, as well as the I. Self-Regulatory Organization’s composed of twenty-five ADRs, NYSs or listed shares outstanding and prices for Statement of the Terms of Substance of NGSs, which are traded on the NYSE, each respective security as of December the Proposed Rule Change NASDAQ or the AMEX.4 Options on 20, 2002. On that date, the twenty-five CBOE proposes to provide for the both indexes shall be A.M. settled. components ranged in capitalization listing and trading of options on the The component securities included in from $5.37 billion to $97.208 billion. CBOE Euro 25 Index and the CBOE each index are based on market The largest component accounted for Asian 25 Index, both broad-based capitalization and the trading volume 11.64% of the total weighting of the indexes. Options on the CBOE Euro 25 on the NYSE, NASDAQ, or AMEX over index, while the smallest accounted for Index and the CBOE Asian 25 Index the past six months. Specifically, each 0.64%. The mean capitalization of the would be cash-settled and would have component security must have a firms in the index was $30.326 billion. European-style exercise provisions. The minimum market capitalization of $250 CBOE believes that the CBOE Euro 25 text of the proposed rule change is million and a trading volume of at least Index satisfies the index criteria available at the Office of the Secretary, 500,000 shares in each of the previous provided above. (1) 23 of the 25 stocks CBOE, and at the Commission. six months to be included in the index. in the CBOE Euro 25 Index meet CBOE’s In the case of depository receipts, the II. Self-Regulatory Organization’s listing criteria for equity options as set market capitalization is determined Statement of the Purpose of, and forth in CBOE Rule 5.3. This represents based on the shares outstanding in the Statutory Basis for, the Proposed Rule 92.59% of the index by market ‘‘home’’ market and the price in U.S. Change capitalization weight and 92% by Dollars of the ADRs, NYSs, and NGSs. number. (2) 23 of the 24 ADR or NYS In its filing with the Commission, Unless otherwise specified herein, components that underlie the index are CBOE included statements concerning both indexes shall satisfy the following subject to comprehensive surveillance the purpose of, and basis for, the general initial and maintenance criteria. agreements.7 (3) No single component proposed rule change and discussed any (1) At least 75% of the index, in terms represents greater than 30% of the comments it received on the proposed of market capitalization weighting, must aggregate weight of the CBOE Euro 25 rule change. The text of those meet CBOE’s listing criteria for equity Index. (4) Finally, the five highest statements may be examined at the options as set forth in CBOE Rule 5.3. weighted component securities in the places specified in Item IV below and is (2) Any non-U.S. component security aggregate do not account for more than set forth in Sections A, B, and C below. (common stock or ADR) that is not 60% of the weight of the Index.8 Exhibit A. Self-Regulatory Organization’s subject to a comprehensive surveillance C to the proposed rule change Statement of the Purpose of, and the agreement shall not in the aggregate specifically illustrates the manner by Statutory Basis for, the Proposed Rule represent more than 20% weight of the which each respective index component Change index’s aggregate market capitalization, satisfies, or fails to satisfy, the unless those non-U.S. components underlying component listing criteria. 1. Purpose satisfy the alternative criteria under The purpose of the proposed rule Interpretation and Policy .03 to Rule 5.3, CBOE Asian 25 Index change is to permit the Exchange to list as further discussed below. (3) No single The pool of index components from and trade cash-settled, European-style component security will represent more which CBOE may choose consists of 107 stock index options on the CBOE Euro than 30% of the weight of the index. (4) ADRs, NYSs, and NGSs that are traded 25 Index and the CBOE Asian 25 Index. Finally, the five highest weighted on the NYSE, NASDAQ, or AMEX and Both the CBOE Euro 25 Index and the component security, in the aggregate, are issued on behalf of companies CBOE Asian 25 Index are capitalization- shall not account for more than 60% of domiciled in one of eight Asian-Pacific weighted indexes of twenty-five (25) the total weight of the index. countries.9 Exhibit D to the proposed American Depository Receipts (‘‘ADR’’), CBOE represents that it will review rule change illustrates the capitalization New York Registered Shares (‘‘NYS’’), or each index quarterly following the and weighting of the CBOE Asian 25 NYSE Global Shares’’ (‘‘NGS’’), which expiration of the respective index Index component securities, as well as are traded on the New York Stock option contract to ensure that the above listed shares outstanding and prices on Exchange, Inc. (‘‘NYSE’’), the American criteria are satisfied, and to make Stock Exchange LLC (‘‘AMEX’’), or the quarterly share changes as appropriate. in France, Finland, Ireland, Italy, Germany, the NASDAQ. Netherlands, Spain, Belgium, Portugal, Greece, and CBOE Euro 25 Index Austria. Index Design According to CBOE, the pool of index 6 Exhibits to the proposed rule change discussed components from which CBOE may herein are available at the Office of the Secretary, The CBOE Euro 25 Index and the CBOE, and at the Commission. CBOE Asian 25 Index have each been choose consists of 161 ADRs, NYSs, and 7 24 of the 25 Euro 25 Index components are NGSs that are traded on the NYSE or either ADRs or NYSs and all are subject to of Market Regulation, Commission, dated January NASDAQ, and issued on behalf of comprehensive surveillance agreements or 10, 2003 (‘‘Amendment No. 1’’) (replacing the companies domiciled in one of eleven memoranda of understanding. One of the original filing in its entirety). Amendment No. 1, components, DaimlerChrysler, is a common stock. member nations of the European There is only one ADR in the Euro 25 Index, Nokia among other things: (1) Clarifies the initial and 5 maintenance criteria for the underlying component Union. Exhibit B to the proposed rule OYJ, in which the CBOE does not have in place a securities of the indices, including further detail on comprehensive surveillance agreement. the component securities that are ADRs and not 4 The Exchange will make an updated list of the 8 The top five components of the CBOE Euro 25 subject to comprehensive surveillance agreements; components underlying each index available to the Index represent 39.68% of the Index in terms of (2) clarifies that options on both indices will be public on the internet by accessing the following market capitalization. A.M. settled; (3) provides more recent market URL: http://www.cboe.com/optprod/index/ 9 The components that make up the CBOE Asian capitalization and weighting figures; and (4) indexoptions.asp. 25 Index include securities of companies domiciled specifies that CBOE’s surveillance procedures are 5 The components that make up the CBOE Euro in Australia, China, India, Indonesia, Philippines, adequate to monitor the trading of these products. 25 Index include securities of companies domiciled Singapore, South Korea and Taiwan.

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December 20, 2002. On that date, the 25 (c) the trading volume is at least 60,000 to 3:02 p.m. Chicago time. Exhibits F components ranged in capitalization shares per day in U.S. markets on a and G to proposed rule change present from $382.722 million to $49.140 majority of trading days during the past proposed contract specifications for billion. The largest component months. As of December 20, 2002, CBOE CBOE Euro 25 Index options and CBOE accounted for 18.38% of the total represent that the applicable component Asian 25 Index options. weighting of the index, while the securities meet these criteria. In light of Maintenance smallest accounted for 0.14%. The mean these standards, 21 of the 25 stocks, or capitalization of the firms in the index 89.39% of the aggregate index market Both the CBOE Euro 25 Index and the was $10.696 billion. capitalization do satisfy acceptable CBOE Asian 25 Index will be monitored CBOE believes that the CBOE Asian listing standards. (3) No single and maintained by CBOE. The CBOE 25 Index satisfies the index criteria component represents greater than 30% will make all necessary adjustments to noted above. (1) 18 of the 25 stocks in of the aggregate weight of the CBOE the indexes to reflect component the CBOE Asia Index meet CBOE’s Asian 25 Index. (4) Finally, the five additions and deletions, share changes, listing criteria for equity options as set highest weighted component securities, stock splits, stock dividends (other than forth in CBOE Rule 5.3. This represents in the aggregate, do not account for an ordinary cash dividend), and stock 77.73% of the index by market more than 60% of the total weight of the price adjustments due to restructuring, capitalization weight and 72% by Index.11 Exhibit E to the proposed rule mergers, or spin-offs involving the number. (2) 13 of the 25 stocks, change illustrates the manner by which underlying components. Some corporate representing 68.71% of the index by each respective index component actions, such as stock splits and stock market capitalization weight, in the satisfies, or fails to satisfy, the dividends, require simple changes to the CBOE Asia Index are either subject to underlying component criteria. common shares outstanding and the comprehensive surveillance agreements stock prices of the underlying or are common stocks that are not Calculation components. Other corporate actions, required to have comprehensive The methodology used to calculate such as share issuances, change the surveillance agreements. Although this the value of the indices is similar to the market value of the Index and require seemingly would mean that greater than methodology used to calculate the value the use of an index divisor to effect 20% of the aggregate index of other well-known broad-based adjustments. Over time the number of capitalization is comprised of indices. The level of each index reflects component securities in the Index may components without comprehensive the total market value of the component change, but at no time will the number surveillance agreements, CBOE notes stocks relative to a particular base of underlying components drop to less that the Commission has specified in period. The indices base date is January than twenty. In the event of a stock the past that a non-U.S. security need 2, 2002, when the respective index replacement, the divisor will be not be considered in calculating the values were set to 100. On April 16, adjusted accordingly to provide 20% threshold if at least 50% of the 2002, the CBOE Euro 25 Index had a continuity in index values.12 worldwide trading volume in that closing value of 95.99 and the CBOE Absent prior Commission approval, particular security occurs within the Asian 25 Index had a closing value of the component securities in either index 10 U.S. market. CBOE notes that this is 95.64. The daily calculation of each will not exceed 40 nor be lower than 20 consistent with Interpretation and index is computed by dividing the total and shall satisfy the criteria as provided Policy .03(ii) to CBOE Rule 5.3. Thus, market value of the companies in the above. If the Index fails at any time to CBOE plans to apply Interpretation and respective Index by the index divisor. satisfy the maintenance criteria, CBOE Policy .03 to CBOE Rule 5.3 to any non- The divisor is adjusted periodically to will immediately notify the Commission U.S. component that exceeds the 20% maintain consistent measurement of the of that fact and will not open for trading threshold for non-U.S. components that index. The values of each Index will be any additional series of options on the are not subject to comprehensive calculated by CBOE and disseminated at Index unless such failure is determined surveillance sharing agreements. 15-second intervals during regular by the Exchange not to be significant Thus, as provided in Interpretation CBOE trading hours to market and the Commission concurs in that and Policy .03(iii) to CBOE Rule 5.3, an information vendors via Options Price determination, or unless the continued individual ADR without a Reporting Authority. listing of options on each respective comprehensive surveillance agreement Index Option Trading Index has been approved by the is deemed to satisfy CBOE’s listing Commission under Section 19(b)(2) of criteria if: (a) At least 20% of the In addition to regular Index options, the Exchange Act. worldwide trading volume in that CBOE proposes to provide for the listing foreign security occurs within the U.S. of long-term index option series Surveillance market and a market for which CBOE (‘‘LEAPS’’) in accordance with CBOE CBOE will use the same surveillance has a comprehensive surveillance Rule 24.9. procedures currently utilized for each of agreement; (b) the average daily trading For options on each index, strike the Exchange’s other index options to volume of the ADR over the past 3 prices will be set to bracket the monitor trading in options and LEAPS. months is 100,000 shares or more; and, respective index in 2 1⁄2 point For surveillance purposes, CBOE will increments for strikes below 200 and 5 make all reasonable efforts to monitor 10 For further details, see CBOE Mexico Index point increments above 200. The filing, Securities Exchange Act Release No. 34241 the trading activity and other pertinent (June 22, 1994), 59 FR 33557 (June 29, 1994) (SR- minimum tick size for series trading information relating to the underlying CBOE–94–18), citing Securities Exchange Act below $3 will be 0.05 and for series components. CBOE represents that its Release No. 33554, 59 FR 5622 (January 31, 1994) trading above $3 the minimum tick will surveillance procedures are adequate to (stating by reference to the proposal that it is be 0.10. The trading hours for options appropriate to permit the listing of options on an monitor the trading of these products. ADR without the existence of a comprehensive on both indexes will be from 8:30 a.m. surveillance agreement with the foreign market 12 As noted in the section regarding ‘‘Index where the underlying trades, as long as the U.S. 11 The top five components of the CBOE Asian 25 Design,’’ each index will be re-balanced quarterly market for the underlying ADR is at least 50% or Index represent 55.20% of the weight of the index following the expiration of the index option more of the worldwide trading volume). in terms of market capitalization. contract.

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Exercise and Settlement 2. Statutory Basis those that may be withheld from the The proposed options on the Index The proposed rule change is public in accordance with the will expire on the Saturday following consistent with Section 6(b) of the Act 14 provisions of 5 U.S.C. 552, will be the third Friday of the expiration in general and furthers the objectives of available for inspection and copying in month. Trading in the expiring contract Section 6(b)(5) of the Act 15 in particular the Commission’s Public Reference month will normally cease at 3:02 p.m. in that it will permit trading in options Section, 450 Fifth Street, NW., (Chicago time) on the business day based on the Internet Index pursuant to Washington, DC 20549. Copies of such preceding the last day of trading in the rules designed to prevent fraudulent filing will also be available for component securities of the Index and manipulative acts and practices and inspection and copying at the principal (ordinarily the Thursday before to promote just and equitable principles office of CBOE. All submissions should expiration Saturday, unless there is an of trade, and thereby will provide refer to the File No. SR–CBOE–2002–40 intervening holiday). The exercise investors with the ability to invest in and should be submitted by February settlement value of the Index at option options based on an additional index. 26, 2003. expiration will be calculated by CBOE For the Commission, by the Division of B. Self-Regulatory Organization’s based on the opening prices of the Market Regulation, pursuant to delegated Statement on Burden on Competition 16 component securities on the business authority. day prior to expiration. If a component CBOE does not believe that the Margaret H. McFarland, security fails to open for trading, the last proposed rule change will impose any Deputy Secretary. available price on the security will be burden on competition. [FR Doc. 03–2672 Filed 2–4–03; 8:45 am] used in the calculation of the index, as C. Self-Regulatory Organization’s BILLING CODE 8010–01–P is done for currently listed indices. Statement on Comments on the When the last trading day is moved Proposed Rule Change Received From SECURITIES AND EXCHANGE because of Exchange holidays (such as Members, Participants, or Others when CBOE is closed on the Friday COMMISSION before expiration), the last trading day No written comments were solicited or received with respect to the proposed [Release No. 34–47290; File No. SR–CBOE– for expiring options will be Wednesday 2003–02] and the exercise settlement value of rule change. index options at expiration will be III. Date of Effectiveness of the Self-Regulatory Organizations; Notice determined at the opening of regular Proposed Rule Change and Timing for of Filing of Proposed Rule Change by Thursday trading. Commission Action the Chicago Board Options Exchange, Inc., Relating to the Reporting of Other Position Limits Within 35 days of the date of Affiliations of Associated Persons to CBOE proposes to establish position publication of this notice in the Federal the Exchange limits for options on the CBOE Euro 25 Register or within such longer period (i) Index and the CBOE Asian 25 Index at as the Commission may designate up to January 30, 2003. 50,000 contracts on either side of the 90 days of such date if it finds such Pursuant to Section 19(b)(1) of the longer period to be appropriate and Securities Exchange Act of 1934 market, and no more than 30,000 of 1 2 such contracts may be in the series in publishes its reasons for so finding or (‘‘Act’’), and Rule 19b–4 thereunder, the nearest expiration month. These (ii) as to which the self-regulatory notice is hereby given that on January 9, limits are roughly equivalent to the organization consents, the Commission 2003, the Chicago Board Options Exchange, Inc. (‘‘CBOE’’ or limits applicable to options on other will: (A) By order approve such proposed ‘‘Exchange’’), filed with the Securities broad-based indices under CBOE Rule rule change, or and Exchange Commission 24.4(a).13 (A) Institute proceedings to determine (‘‘Commission’’ or ‘‘SEC’’) the proposed Exchange Rules Applicable whether the proposed rule change rule change as described in Items I, II Except as modified herein, the Rules should be disapproved. and III below, which Items have been in Chapter XXIV will be applicable to IV. Solicitation of Comments prepared by the CBOE. The Commission is publishing this notice to solicit both CBOE Euro 25 Index options and Interested persons are invited to CBOE Asian 25 Index options. Index comments on the proposed rule change submit written data, views and from interested persons. option contracts based on both the arguments concerning the foregoing, CBOE Euro 25 Index and the CBOE including whether the proposed rule I. Self-Regulatory Organization’s Asian 25 Index will be subject to the change, as amended, is consistent with Statement of the Terms of Substance of position limit requirements of CBOE the Act. Persons making written the Proposed Rule Change Rule 24.4(a). submissions should file six copies Additionally, CBOE affirms that it The Exchange proposes to amend thereof with the Secretary, Securities possesses the necessary systems Rule 3.6A—‘‘Qualification and and Exchange Commission, 450 Fifth capacity to support new series that Registration of Certain Associated Street, NW., Washington, DC 20549– would result from the introduction of Persons,’’ and Rule 9.4—‘‘Other 0609. Copies of the submission, all both CBOE Euro 25 Index options and Affiliations of Registered subsequent amendments, all written CBOE Asian 25 Index options. CBOE Representatives,’’ to (i) eliminate the statements with respect to the proposed has also been informed that OPRA has need for member organizations to seek rule change that are filed with the the capacity to support such new series prior Exchange approval for Registered Commission, and all written (see Exhibit H to the proposed rule Representatives, employed in a non- communications relating to the change). supervisory capacity, to engage in proposed rule change between the business practices during business Commission and any person, other than 13 Specifically, CBOE Rule 24.4(a) imposes a standard position limit of 50,000 contracts on the 16 17 CFR 200.30–3(a)(12). same side of the market for CBOE’s Mexico 30 14 15 U.S.C. 78f(b). 1 15 U.S.C. 78s(b)(1). Index and CBOE’s Germany 25 Index. 15 15 U.S.C. 78f(b)(5). 2 17 CFR 240.19b–4.

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hours for other than the business of the .01–.03 No change. exchanges. Current National Association member organization with which the * * * * * of Securities Dealers (‘‘NASD’’), New person is associated; and (ii) to require York Stock Exchange (‘‘NYSE’’), prompt notice, but not Exchange Chapter IX American Stock Exchange (‘‘AMEX’’), approval, of persons registered as * * * * * Pacific Exchange (‘‘PCX’’), and Registered Options Principals, Sales Philadelphia Stock Exchange (‘‘PHLX’’) Doing Business With the Public Supervisors or Financial and Operations rules do not require SRO approval for Principals with member organizations Rule 9.4. Other Affiliations of Registered the outside business activities of for which the CBOE is the firm’s [Representatives] Associated Persons registered persons operating in a non- Designated Examining Authority who (a) No person associated with a supervisory capacity but rather require are acting as a part-time employee or member in any registered capacity shall such notification be made to and receive independent contractor of the member be employed by, or accept the approval from the member or engaged in outside business organization employing or compensation from, any other person or 3 activities. Below is the text of the entity as a result of any business compensating the registered person. proposed rule change. Proposed new activity, other than a passive PHLX Rule 793 requires such member language is italicized. Proposed investment, outside the scope of his/her organization approvals be filed with deletions are in [brackets]. relationship with his/her employer firm, their Office of the Secretary. CBOE Rule 9.4 is proposed to be * * * * * unless the person has provided prompt amended to reduce the current reporting written notice to the member and has Chicago Board Options Exchange, Inc. burden of member organizations by received prior written consent of the Rules eliminating the need for member member. * * * * * (b) Except with the prior written organizations to seek prior Exchange consent of the member and [express] approval for Registered Representatives, Rule 3.6A. Qualification and prompt written notice to [permission of] employed in a non-supervisory Registration of Certain Associated the Exchange, every Registered Options capacity, to engage in business practices Persons Principal, Sales Supervisor, and during business hours for other than the (a) Financial/Operations Principal. Financial/Operations Principal business of the member organization Each individual member or member registered with a member for which the with which the person is associated. organization subject to Exchange Act Exchange is the Designated Examining Proposed Rule 9.4(a) instead would Rule 15c3–1 shall designate a Financial/ Authority (‘‘DEA’’) and Registered require that each associated person in Operations Principal. The duties of a Representative shall devote his/her any registered capacity with a member Financial/Operations Principal shall entire time during business hours to the organization provide written include taking appropriate actions to business of the member organization notification to the member organization assure that the member complies with employing [him] or compensating him/ and receive written approval from the applicable financial and operational her. [or to the business of its affiliates member organization prior to becoming requirements under the Rules and the which are engaged in the transaction of employed by, or accepting Exchange Act, including but not limited business as a broker or dealer in compensation from, any other person or to those requirements relating to the securities or commodities or in such entity as a result of business activity, submission of financial reports and the other businesses as have been approved other than a passive investment, outside maintenance of books and records. Each by the Exchange.] the scope of his/her relationship with Financial/Operations Principal is the member organization. * * * * * Proposed Rule 9.4(b) would required to have successfully completed II. Self-Regulatory Organization’s specifically require the prior written the Financial and Operations Principal Statement of the Purpose of, and consent of the member and prompt Examination (Series 27 Exam). Each Statutory Basis for, the Proposed Rule written notice to the Exchange for Financial/Operations Principal Change outside affiliations of persons registered designated by a member shall be with a member, for which the CBOE is registered in that capacity with the In its filing with the Commission, the the DEA, in the capacity of a Registered Exchange in a form and manner CBOE included statements concerning Options Principal, Sales Supervisor, or prescribed by the Exchange. A the purpose of and basis for the Financial and Operations Principal. Financial/Operations Principal of a proposed rule change and discussed any This proposed amendment to Rule 9.4 member may be a full-time employee [of comments it received on the proposed would also require a corresponding the member], [or with the prior written rule change. The text of these statements amendment to Exchange Rule 3.6A(a) to approval of the Exchange, may be] a may be examined at the places specified require prompt notice to the Exchange, part-time employee or independent in Item IV below. The CBOE has rather than prior written approval of the contractor of the member. Member firms prepared summaries, set forth in Exchange, of a Financial and Operations for which the Exchange is the sections A, B, and C below, of the most Principal acting as a part-time employee Designated Examining Authority significant aspects of such statements. or independent contractor or engaged in (‘‘DEA’’) must provide prompt written A. Self-Regulatory Organization’s outside business activities. NYSE and notice to the Exchange’s Department of Statement of the Purpose of, and AMEX rules require Exchange approval Financial and Sales Practice Statutory Basis for, the Proposed Rule for registered persons delegated Compliance for each person designated Change supervisory responsibilities and as a Financial/Operations Principal performing such duties on a part-time reporting whether such person is a full- 1. Purpose basis, however, the NASD does not have time employee, part-time employee, The purpose of this proposed rule is a comparable rule.4 Therefore, the independent contractor or has any to bring the outside business affiliation outside business affiliations. reporting requirements of registered 3See AMEX Rule 342(b), NASD Rule 3030, NYSE (b) No change. persons of CBOE members in line with Rule 346(b), PCX Rule 1.26(d) and PHLX Rule 793. * * * Interpretations and Policies: those of the other major securities 4 See NYSE Rule 346(e) and AMEX Rule 342(a).

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Exchange believes that it is appropriate communications relating to the applicable to a national securities to replace the current Exchange proposed rule change between the exchange,5 and in particular, the approval process with a notice Commission and any person, other than requirements of Section 6 of the Act 6 requirement only where the employing those that may be withheld from the and the rules and regulations member is designated to the CBOE for public in accordance with the thereunder. The Commission finds that financial oversight. provisions of 5 U.S.C. 552, will be the proposal to increase the number of available for inspection and copying in 2. Statutory Basis authorized shares of Class B Common the Commission’s Public Reference Stock, Series B–2 from 100 to 130, The proposed rule change is Room. Copies of such filing will also be resulting in the creation of 30 additional consistent with Section 6(b) of the Act 5 available for inspection and copying at CMM Memberships, is consistent with in general and furthers the objectives of the principal office of CBOE. All Section 6(b)(5) of the Act 7 because it is Section 6(b)(5) 6 in particular, in that it submissions should refer to File No. designed to promote just and equitable is designed to promote just and CBOE–2003–02 and should be principals of trade, to foster cooperation equitable principles of trade and to submitted by February 26, 2003. protect investors and the public interest. and coordination with persons engaged For the Commission, by the Division of in regulating, clearing, settling, B. Self-Regulatory Organization’s Market Regulation, pursuant to delegated processing information with respect to, authority.7 Statement on Burden on Competition and facilitating transactions in Margaret H. McFarland, CBOE does not believe that the securities, to remove impediments to proposed rule change will impose any Deputy Secretary. and perfect the mechanism of a free and burden on competition that is not [FR Doc. 03–2674 Filed 2–4–03; 8:45 am] open market and a national market necessary or appropriate in furtherance BILLING CODE 8010–01–P system, and, in general, to protect of purposes of the Act. investors and the public interest. C. Self-Regulatory Organization’s SECURITIES AND EXCHANGE Specifically, the Commission believes Statement on Comments on the COMMISSION that the sale of 30 additional CMM Proposed Rule Change Received From Memberships may increase the depth Members, Participants or Others [Release No. 34–47289; File No. SR–ISE– and liquidity of the Exchange’s market. 2002–28] No written comments were solicited It may also provide more broker-dealers or received with respect to the proposed Self-Regulatory Organizations; with an opportunity to participate on rule change. International Securities Exchange LLC; the Exchange. The Exchange also Order Granting Approval to Proposed represented that it has carefully III. Date of Effectiveness of the Rule Change To Increase the Number evaluated its systems capacity and Proposed Rule Change and Timing for of Authorized Shares of Class B believes that it has more than sufficient Commission Action Common Stock, Series B–2 From 100 capacity to handle the increased number Within 35 days of the date of to 130 of CMM Members without any adverse publication of this notice in the Federal effects. Furthermore, the Exchange January 30, 2003. Register or within such longer period (i) noted that it would require a purchaser On November 21, 2002, the as the Commission may designate up to of one of these new Memberships that International Securities Exchange LLC 90 days of such date if it finds such is not already a CMM to meet all longer period to be appropriate and (‘‘Exchange’’) filed with the Securities and Exchange Commission Exchange requirements currently publishes its reasons for so finding or applicable to CMM Members. (ii) as to which the self-regulatory (‘‘Commission’’), pursuant to Section organization consents, the Commission 19(b)(1) of the Securities Exchange Act It is therefore ordered, pursuant to 8 will: of 1934 (‘‘Act’’)1 and Rule 19b–4 Section 19(b)(2) of the Act, that the (A) By order approve such proposed thereunder,2 a proposed rule change to proposed rule change (File No. SR–ISE– rule change, or increase the number of authorized 2002–28) be, and it hereby is, approved. (B) Institute proceedings to determine shares of Class B Common Stock, Series For the Commission, by the Division of whether the proposed rule change B–2 from 100 to 130. This increase Market Regulation, pursuant to delegated should be disapproved. would result in the creation of 30 authority.9 additional Competitive Market Maker IV. Solicitation of Comments (‘‘CMM’’) Memberships.3 The proposed Margaret H. McFarland, Interested persons are invited to rule change was published for comment Deputy Secretary. submit written data, views and in the Federal Register on December 27, [FR Doc. 03–2673 Filed 2–4–03; 8:45 am] arguments concerning the foregoing, 2002.4 The Commission received no BILLING CODE 8010–01–P including whether the proposal is comments on the proposal. This order consistent with the Act. Persons making approves the proposed rule change. written submissions should file six The Commission finds that the copies thereof with the Secretary, proposed rule change is consistent with Securities and Exchange Commission, the requirements of the Act and the 450 Fifth Street, NW., Washington, DC rules and regulations thereunder 20549–0609. Copies of the submission, 5 In approving this proposed rule change, the 7 all subsequent amendments, all written 17 CFR 200.30–3(a)(12). Commission notes that it has considered the 1 statements with respect to the proposed 15 U.S.C. 78s(b)(1). proposed rule’s impact on efficiency, competition, 2 rule change that are filed with the 17 CFR 240.19b–4. and capital formation. 15 U.S.C. 78c(f). 3 CMMs are market makers that compete with a 6 15 U.S.C. 78f. Commission, and all written Primary Market Maker and other CMMs to provide 7 liquidity on the Exchange. 15 U.S.C. 78f(b)(5). 5 15 U.S.C. 78f(b). 4 See Securities Exchange Act Release No. 47035 8 15 U.S.C. 78s(b)(2). 6 15 U.S.C. 78f(b)(5). (December 19, 2002), 67 FR 79202. 9 17 CFR 200.30–3(a)(12).

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SECURITIES AND EXCHANGE Rule 1000: Automatic Execution of A. Self-Regulatory Organization’s COMMISSION Limit Orders Against Orders Reflected Statement of the Purpose of, and in NYSE Published Quotation Statutory Basis for, the Proposed Rule [Release No. 34–47285; File No. SR–NYSE– Change 2002–44] Only straight limit orders without tick restrictions are eligible for entry as auto 1. Purpose Self-Regulatory Organizations; Notice ex orders. Auto ex orders to buy shall NYSE Rules 1000–1005 provide for of Filing of Proposed Rule Change and the automatic execution of limit orders Amendment No. 1 Thereto by the New be priced at or above the price of the published NYSE offer. Auto ex orders to of 1099 shares or less against the York Stock Exchange, Inc. Relating to Exchange’s disseminated bid or offer.5 Amendments to the Exchange’s sell shall be priced at or below the price of the NYSE bid. An auto ex order shall These executions of Direct+ orders are Automatic Execution Facility (NYSE not available under unusual market Direct+) receive an immediate, automatic execution against orders reflected in the conditions, or in situations when the Exchange’s bid or offer is only 100 January 29, 2003. Exchange’s published quotation and Pursuant to Section 19(b)(1) of the shares. shall be immediately reported as NYSE Direct+ executions automatically Securities Exchange Act of 1934 transactions, unless: decrease the size of the NYSE bid or (‘‘Act’’),1 and Rule 19b–4 thereunder,2 (i) The NYSE’s published quotation is offer, which can result in a ‘‘default’’ notice is hereby given that on in the non-firm quote mode; bid or offer of 100 shares if the Direct+ September 9, 2002 the New York Stock executions have traded with all trading Exchange, Inc. (‘‘NYSE’’) filed with the (ii) [The NYSE’s published quotation interest reflected in the Exchange’s Securities and Exchange Commission has been gapped for a brief period because of an influx of orders on one published bid or offer. This has the (‘‘Commission’’) the proposed rule effect of rendering the automatic side of the market, and the NYSE’s change as described in Items I, II and III execution feature unavailable until the published quotation size is one hundred below, which Items have been prepared specialist can requote the market. In by the NYSE. The Exchange submitted shares at the bid and/or offer;] the other very active trading situations, an amendment to the proposed rule execution price would be more than five 3 however, the specialist may quote a 100 change on January 27, 2003. The cents away from the last reported share market because of transactions Commission is publishing this notice to transaction price in the subject security being priced in the auction, which also solicit comments on the proposed rule on the Exchange; has the effect of making Direct+ change, as amended, from interested (iii) With respect to a single-sided unavailable and results in the persons. auto ex order, a better price exists in Exchange’s disseminated quotation not I. Self-Regulatory Organization’s another ITS participating market center; reflecting the actual depth of the NYSE market. Statement of the Terms of Substance of (iv) With respect to a single-sided the Proposed Rule Change auto ex order, the NYSE’s published bid NYSE Rule 1000(ii) The proposed rule change consists of or offer is 100 shares; The Exchange is proposing to amend an amendment to Exchange Rule 1000  (v) A transaction outside the NYSE’s Rule 1000(ii) to replace this provision governing NYSE Direct+ (‘‘Direct +’’). published bid or offer pursuant to Rule with one that provides that Direct+ The proposed rule amendment provides 127 is in the process of being executions will not be available if the that (i) Direct+ executions will not be completed, in which case the specialist resulting trade would be more than five available if the resulting trade would be cents from the last sale. This would more than five cents from the last sale; should publish a [100-share] bid and/or offer[;] that is more than five cents away apply to any trade whether an auto-ex and (ii) during the process for trade or a trade in the regular auction completing certain NYSE Rule 127 4 from the last reported transaction price in the subject security on the Exchange; market. Any auto-ex order sent that transactions, the specialist should would result in an execution more than publish a bid and/or offer that is more (vi) Trading in the subject security has five cents away from the last trade than five cents away from the last been halted. would be routed to the specialist as a reported transaction price in the subject Auto ex orders that cannot be SuperDOT limit order. The specialist security on the Exchange. The text of immediately executed shall be would then represent that order as he or the proposed rule change is set forth displayed as limit orders in the auction she would represent any other limit below. Additions are in italics; deletion market. order received via the SuperDOT are in brackets. * * * * * system. * * * * * For example, if the last sale in a stock II. Self-Regulatory Organization’s is $20.10, and the current quote is 1 15 U.S.C. 78s(b)(1). Statement of the Purpose of, and $20.09 bid for 300 shares and 900 shares 2 17 CFR 240.19b–4. Statutory Basis for, the Proposed Rule offered at $20.16, an auto-ex order to 3 See Letter from Darla C. Stuckey, Corporate buy 500 shares (which would be Secretary, NYSE, to Nancy J. Sanow, Assistant Change Director, Division of Market Regulation, executed at the offer price) would not be Commission, dated January 23, 2003 (‘‘Amendment In its filing with the Commission, the No. 1’’). Amendment No. 1 clarifies, and provides NYSE included statements concerning 5 NYSE Direct+ was originally filed as a one-year examples of, how the five cent standard would the purpose of and basis for the pilot in SR–NYSE–2000–18, which was approved work; clarifies how limit orders received while a on December 22, 2000. See Securities Exchange Act block transaction is pending would be handled; and proposed rule change and discussed any Release No. 43767 (December 22, 2000), 66 FR 834 explains how the Exchange determined that five comments it received on the proposed (January 4, 2001). The pilot was subsequently cents is the appropriate level at which to disengage rule change. The text of these statements extended by SR–NYSE–2001–50 and SR–NYSE– Direct+. 2002–47. See Securities Exchange Act Release Nos. 4 Exchange Rule 127(b) describes the procedures may be examined at the places specified 45331 (January 24, 2002), 67 FR 5024 (February 1, for a member to follow who has a block of stock in Item IV below and is set forth in 2002); 46906 (November 25, 2002), 67 FR 72260 which he or she intends to cross at a specific clean- Sections A, B, and C below. (December 4, 2002), respectively. The pilot is up price outside the current quotation. currently due to expire on December 24, 2003.

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automatically executed at $20.16 since being completed, and in that instance, support the principles of Section it is more than five cents from the last the specialist must publish a 100-share 11A(a)(1) of the Act 12 in that it seeks to trade at $20.10. It would be routed to bid and/or offer. assure economically efficient execution the specialist as a limit order to buy at The Exchange proposes to amend of securities transactions, make it $20.16. The specialist would then bid Rule 1000(v) to provide that the practicable for brokers to execute on behalf of that order at $20.15 and specialist (during the process for investors’ orders in the best market, and execute it at $20.16 against the completing a Rule 127 transaction) provide an opportunity for investors’ prevailing offer, or a broker in the crowd should publish a bid and/or offer that is orders to be executed without the could offer to trade with the order at more than five cents away from the last participation of a dealer. $20.15, offering price improvement to reported transaction price (instead of a that order in the auction market. 100-share bid and/or offer) in the B. Self-Regulatory Organization’s Under the current provisions of Rule subject security on the Exchange. Any Statement on Burden on Competition 1000, if the published quotation in a limit order that is received as the Rule The Exchange does not believe that stock is gapped for a brief period of 127 trade is being effected that would the proposed rule change, as amended, time, usually with one side or both of better the market represented by the will impose any burden on competition the quotation being set at 100 shares broker’s bid or offer on behalf of the that is not necessary or appropriate in because of an influx of orders on one NYSE Rule 127 cross trade would be furtherance of the purposes of the Act. side of the market, or if the bid and/or included in the Rule 127 trade.8 For offer size of the prevailing quotation is example, assume that the last sale in C. Self-Regulatory Organization’s set at 100 shares, the Direct+ facility is XYZ is $10.27, and the current quote is Statement on Comments on the not available. Under very active market $10.25 bid for 5000 shares and 5000 Proposed Rule Change Received From conditions, the specialist may quote 100 shares offered at $10.35. A proposed Members, Participants, or Others shares bid or offered in order to allow block transaction (Rule 127 trade) is The Exchange has neither solicited trades in the auction market to be about to be effected at the ‘‘clean-up’’ nor received written comments on the consummated without the last sale price (discount price) of $10.15 for 50,000 proposed rule change. being changed due to Direct+ shares. Under amended Rule 1000(v), III. Date of Effectiveness of the executions. This, however, could result the specialist would publish a bid that Proposed Rule Change and Timing for in the Exchange’s disseminated is more than five cents away from the Commission Action quotation temporarily not reflecting the last reported transaction price in order actual depth of the market for a stock as to turn off Direct+. The Rule 127 trade Within 35 days of the date of reflected by the dynamics of trading would be completed by the broker publication of this notice in the Federal interest in the Crowd. If the Direct+ bidding $10.15 on behalf of the cross, Register or within such longer period (i) facility is not available in instances and offering at $10.16. If, prior to the as the Commission may designate up to where the actual spread in a stock’s completion of the Rule 127 trade, a limit 90 days of such date if it finds such quotation is greater than five cents, the order to buy 500 shares at $10.20 was longer period to be appropriate and specialist will be able to show the actual received by the specialist, he or she publishes its reasons for so finding or depth in the market. Of course, if the would represent that order to participate (ii) as to which the NYSE consents, the actual spread resulting from bids and in the Rule 127 cross and receive an Commission will: offers on the specialist’s book, or improved price. (Under Exchange Rule (A) By order approve the proposed resulting from trading crowd interest 79A.15, the requirement to display limit rule change, or results in a spread of less than five cents orders received by specialists does not (B) Institute proceedings to determine from the price of the last trade, the apply to any customer limit order that whether the proposed rule change specialist must display these, and is executed upon receipt of the order.)9 should be disapproved. The five cent price parameter will Direct+ orders will remain eligible for IV. Solicitation of Comments automatic execution.6 give the specialist additional flexibility in disseminating the actual depth of the Interested persons are invited to NYSE Rule 1000(v) NYSE auction market, while still submit written data, views and NYSE Rule 127 establishes ensuring that Direct+ is available when arguments concerning the foregoing, procedures for executions outside the there is sufficient liquidity at prices including whether the proposal, as NYSE’s published bid or offer. It closely related to the last sale.10 amended, is consistent with the Act. requires a member seeking to cross Persons making written submissions 2. Statutory Basis block orders outside the prevailing should file six copies thereof with the quotation to inform the specialist of his The basis under the Act for this Secretary, Securities and Exchange or her intention to execute the proposed rule change is the requirement Commission, 450 Fifth Street NW., transaction at a pre-determined, specific under Section 6(b)(5)of the Act 11 that an Washington, DC 20549–0609. Copies of price (the ‘‘clean-up’’ price), either a Exchange have rules that are designed to the submission, all subsequent premium or discount from the promote just and equitable principles of amendments, all written statements prevailing bid/offer. In this situation, trade, to remove impediments to and with respect to the proposed rule the executing broker will be bidding and perfect the mechanism of a free and change that are filed with the offering on behalf of the cross away open market and a national market Commission, and all written from the prevailing quotation, to reflect system and, in general, to protect communications relating to the the discount or premium from the investors and the public interest. The proposed rule change between the current market.7 Currently, Rule 1000(v) proposed rule change also is designed to Commission and any person, other than provides that auto ex orders will not be those that may be withheld from the 8 Id. public in accordance with the executed when an auction market 9 transaction under Exchange Rule 127 is Id. provisions of 5 U.S.C. 552, will be 10 According to the Exchange, a high percentage of executions in Direct+ occur within five cents of available for inspection and copying in 6 See Amendment No. 1, supra note 3. the last sale. See Amendment No. 1, supra note 3. 7 Id. 11 15 U.S.C. 78f(b)(5). 12 15 U.S.C. 78k–1(a)(1).

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the Commission’s Public Reference the places specified in item IV below. B. Self-Regulatory Organization’s Room. Copies of such filing will also be The NYSE has prepared summaries, set Statement on Burden on Competition available for inspection and copying at forth in sections A, B, and C below, of The Exchange does not believe that the principal office of the NYSE the most significant aspects of such the proposed rule change will impose organization. statements. any burden on competition that is not All submissions should refer to File A. Self-Regulatory Organization’s necessary or appropriate in furtherance No. NYSE–2002–44 and should be of the purposes of the Act. submitted by February 26, 2003. Statement of the Purpose of, and Statutory Basis for, the Proposed Rule C. Self-Regulatory Organization’s For the Commission, by the Division of Change Market Regulation, pursuant to delegated Statement on Comments on the 13 Proposed Rule Change Received From authority. 1. Purpose Margaret H. McFarland, Members, Participants, or Others Deputy Secretary. The Exchange recently codified in the The Exchange has neither solicited [FR Doc. 03–2675 Filed 2–4–03; 8:45 am] NYSE rule book several policies which nor received written comments on the BILLING CODE 8010–01–P had been previously filed with, and proposed rule change. approved by, the Commission pursuant III. Date of Effectiveness of the to rule 19b-4 and reorganized several Proposed Rule Change and Timing for other rules.3 SECURITIES AND EXCHANGE Commission Action COMMISSION When rule 111 was reorganized, three The proposed rule change has become internal rule references were not [Release No. 34–47275; File No. SR–NYSE– effective pursuant to section 2003–02] updated to refer to the correct 19(b)(3)(A)(iii) of the Act 5 and corresponding rule. The Exchange Self-Regulatory Organizations; Notice subparagraph (f)(3) of rule 19b–4 proposes to correct these references in thereunder,6 because it is concerned of Filing and Immediate Effectiveness rule 111(a) as follows. of Proposed Rule Change by the New solely with the administration of the • In rule 111(a), the reference that York Stock Exchange, Inc. Relating to Exchange. At any time within 60 days reports must include all transactions Amendment to Rule 111 of the filing of the proposed rule change, executed on orders initiated or the Commission may summarily January 29, 2003. originated for such accounts by a abrogate such rule change if it appears Pursuant to section 19(b)(1) of the member while on the Floor and all to the Commission that such action is Securities Exchange Act of 1934 transactions which are considered on- necessary or appropriate in the public (‘‘Act’’)1 and rule 19b-4 thereunder,2 Floor trading is found under the interest, for the protection of investors, notice is hereby given that on January 8, provisions of rule 112(c), not 112(b) as or otherwise in furtherance of the 2003, the New York Stock Exchange, stated. purposes of the Act. • Inc. (‘‘NYSE’’ or ‘‘Exchange’’) filed with A competitive trader desiring to IV. Solicitation of Comments the Securities and Exchange exempt neutral transactions for an Commission (‘‘Commission’’) the account in which he or his member Interested persons are invited to proposed rule change as described in organization has an interest from submit written data, views, and items I, II, and III below, which items consideration in the computation of his arguments concerning the foregoing, have been prepared by the Exchange. monthly stabilizing percentage is including whether the proposed rule The Commission is publishing this provided for under the provisions of change is consistent with the Act. notice to solicit comments on the rule 110(g)(2), not 112(d)(2); he must Persons making written submissions proposed rule change from interested report the trade date, number of shares, should file six copies thereof with the persons. and price of stock upon acquisition. Secretary, Securities and Exchange Commission, 450 Fifth Street, NW., • I. Self-Regulatory Organization’s In addition, rule 110(g)(1), not Washington, DC 20549–0609. Copies of Statement of the Terms of Substance of 112(d)(1), provides that a competitive the submission, all subsequent the Proposed Rule Change trader must note with the symbol ‘‘NL’’ amendments, all written statements The Exchange is proposing to amend that the transaction was effected as part with respect to the proposed rule rule 111(a) to correct internal rule of the initial sale of a newly listed change that are filed with the references. The references to other rules security. Commission, and all written in rule 111 were not updated at the time 2. Statutory Basis communications relating to the rule 111 was reorganized. proposed rule change between the The Exchange’s basis under the Act Commission and any person, other than II. Self-Regulatory Organization’s for this proposed rule change is the those that may be withheld from the Statement of the Purpose of, and requirement under section 6(b)(5) of the public in accordance with the Statutory Basis for, the Proposed Rule Act 4 that an Exchange have rules that provisions of 5 U.S.C. 552, will be Change are designed to promote just and available for inspection and copying at In its filing with the Commission, the equitable principles of trade, to remove the Commission’s Public Reference self-regulatory organization included impediments to and perfect the Room. Copies of such filing will also be statements concerning the purpose of mechanisms of a free and open market available for inspection and copying at and basis for the proposed rule change and a national market system, and, in the principal office of the Exchange. and discussed any comments it received general, to protect investors and the All submissions should refer to the on the proposed rule change. The text public interest. File No. SR–NYSE–2003–02 and should of these statements may be examined at be submitted by February 26, 2003. 3 See Securities Exchange Act Release No. 46579 13 17 CFR 200.30–3(a)(12). (October 1, 2002), 67 FR 63004 (October 9, 2002) 5 15 U.S.C. 78s(b)(3)(A)(iii). 1 15 U.S.C. 78s(b)(1). (SR–NYSE–2002–31). 6 17 CFR 240.19b–4(f)(3). 2 17 CFR 240.19b–4. 4 15 U.S.C. 78f(b)(5). 717 CFR 200.30–(a)(12).

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For the Commission, by the Division of Employee Relations—(Organization), establish the General Advisory Market Regulation, pursuant to delegated add the following: Committee and Scientific Advisory authority.7 The Office of Labor-Management and Subcommittee is provided under the Margaret H. McFarland, Employee Relations under the Tuna Conventions Act of 1950, as Deputy Secretary. leadership of the Associate amended by the International Dolphin [FR Doc. 03–2677 Filed 2–4–03; 8:45 am] Commissioner, Office of Labor- Conservation Program Act (IDCPA) of BILLING CODE 8010–01–P Management and Employee Relations 1997. includes: DATES: Nominations must be submitted Retitle E. to The Center for on or before March 14, 2003. Negotiations (S7CG). ADDRESSES: SMALL BUSINESS ADMINISTRATION Under Section S7C.20 The Office of Nominations should be submitted to Mary Beth West, Deputy Labor-Management and Employee Region 4—Georgia District Advisory Assistant Secretary for Oceans and Relations—(Functions) should read as Council Public Meeting Fisheries, Bureau of Oceans and follows: International Environmental and The Georgia District Advisory Council Delete: Scientific Affairs, Room 7831, (Georgia DAC) of the U.S. Small C., line 5, starting with ‘‘The Department of State, Washington, DC Business Administration will be functions of the office include the 20520–7818; or by fax to 202–736–7350. conducting a meeting on Friday, following:’’ and items 1 through 12. February 7, 2002, 8:30–11:30 a.m. at the FOR FURTHER INFORMATION CONTACT: Dated: January 30, 2003. David Hogan, Office of Marine Hyatt Regency Savannah, 2 West Bay Don Putman, Street, Savannah, GA. The meeting is Conservation, Department of State: 202– Director, Center for Classification and 647–2335. open to the public. Seating is limited Organization Management. SUPPLEMENTARY INFORMATION: and is available on a first come, first [FR Doc. 03–2662 Filed 2–4–03; 8:45 am] serve basis. The focus of the meeting BILLING CODE 4191–X–P General Advisory Committee will be on the future goals, activities, and operations of the Georgia DAC. The Tuna Conventions Act (16 U.S.C. Anyone wishing further information 951, et seq.), as amended by the IDCPA DEPARTMENT OF STATE concerning the meeting or who wishes (Pub. L. 105–42) provides that the Secretary of State, in consultation with to submit oral or written comments [Public Notice 4224] should contact Terri L. Denison, the U.S. Commissioners to the IATTC, Designated Federal Official for the Extension of Deadline for Nominations shall appoint a General Advisory SBA’s Georgia District Advisory for the General Advisory Committee Committee (the Committee) to the U.S. Council, by phone at (404) 331–0100, and the Scientific Advisory Section to the IATTC (U.S. Section). The ext. 212 or by e-mail at Subcommittee to the United States Committee shall be composed of not [email protected]. Requests for oral Section to the Inter-American Tropical less than 5 nor more than 15 persons, comments must be in writing to Ms. Tuna Commission with balanced representation from the Denison and received no later than various groups participating in the SUMMARY: The Department of State is fisheries included under the IATTC January 31, 2003. extending for a period of 60 days the The public is invited. Convention, and from non- deadline for applications and governmental conservation Candace Stoltz, nominations for the renewal of the organizations. The Committee shall be Director Advisory Councils. General Advisory Committee to the invited to have representatives attend [FR Doc. 03–2627 Filed 2–4–03; 8:45 am] Inter-American Tropical Tuna all non-executive meetings of the U.S. Commission (IATTC), as well as to a BILLING CODE 8025–01–P Section, and shall be given full Scientific Advisory Subcommittee of the opportunity to examine and to be heard General Advisory Committee, originally on all proposed programs of published November 12, 2002, in investigations, reports, SOCIAL SECURITY ADMINISTRATON Department of State Public Notice recommendations, and regulations number 4204, Volume 67, Number 218, Statement of Organization, Functions adopted by the Commission. Pages 68714–68716. The new deadline and Delegations of Authority; Representatives of the Committee may is March 14, 2003. The purpose of the Correction attend meetings of the IATTC and the General Advisory Committee and the AIDCP as members of the U.S. AGENCY: Social Security Administration. Scientific Advisory Subcommittee is to delegation or otherwise in accordance ACTION: Notice; correction. provide public input and advice to the with the rules of those bodies governing United States Section to the IATTC in such participation. Participation as a SUMMARY: The Social Security the formulation of U.S. policy and member of the U.S. delegation shall be Administration published a document positions at meetings of the IATTC and subject to such limits as may be placed in the Federal Register of January 15, its subsidiary bodies. The Scientific on the size of the delegation. 2003, amending Part S of the Statement Advisory Subcommittee shall also of Organization, Functions and function as the National Scientific Scientific Advisory Committee Delegations of Authority for the Social Advisory Committee (NATSAC) The Act, as amended, also provides Security Administration. There are three provided for in the Agreement on the that the Secretary of State, in additional changes that are needed. International Dolphin Conservation consultation with the U.S. Program (AIDCP). The United States Commissioners to the IATTC, shall Corrections Section to the IATTC is composed of the appoint a Scientific Advisory In the Federal Register of January 15, Commissioners to the IATTC and the Subcommittee (the Subcommittee) of 2003, in FR Doc. 03–764, on page 2100, Deputy Assistant Secretary of State for the General Advisory Committee. The second column under Section S7C.10 Ocean and Fisheries or his or her Subcommittee shall be composed of not The Office of Labor-Management and designated representative. Authority to less than 5 and not more than 15

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qualified scientists with balanced and recommending to the U.S. Scientific Advisory Subcommittee/ representation from the public and government measures and actions that NATSAC. private sectors, including non- should be undertaken to conserve and Dated: January 30, 2003. governmental conservation manage stocks of living marine David A. Balton, organizations. The Subcommittee shall resources in the AIDCP Area; making advise the Committee and the U.S. Acting Deputy Assistant Secretary for Oceans recommendations to the U.S. and Fisheries, Department of State. Section on matters including: The government regarding research needs [FR Doc. 03–2709 Filed 2–4–03; 8:45 am] conservation of ecosystems; the related to the eastern Pacific Ocean tuna sustainable uses of living marine purse seine fishery; promoting the BILLING CODE 4710–09–P resources related to the tuna fishery in regular and timely full exchange of data the eastern Pacific Ocean; and the long- among the Parties on a variety of matters DEPARTMENT OF STATE term conservation and management of related to the implementation of the stocks of living marine resources in the AIDCP; and consulting with other [Public Notice 4260] eastern tropical Pacific Ocean. experts as necessary in order to achieve In addition, at the request of the the objectives of the Agreement. Determination Pursuant to Section 1(b) Committee, the U.S. Commissioners or of Executive Order 13224 Relating to the Secretary of State, the Subcommittee General Provisions Lashkar i Jhangvi shall perform such functions and Each appointed member of the Acting under the authority of section provide such assistance as may be Committee and the Subcommittee/ 1(b) of Executive Order 13224 of required by formal agreements entered NATSAC shall be appointed for a term September 23, 2001, and in consultation into by the United States for the eastern of 3 years and may be reappointed. with the Secretary of the Treasury and Pacific tuna fishery, including the Logistical and administrative support the Attorney General, I hereby AIDCP. The functions may include: The for the operation of the Committee and determine that Lashkar i Jhangvi (also review of data from the International the Subcommittee will be provided by spelled Lashkar e Jhangvi) has Dolphin Conservation Program (IDCP), the Department of State, Bureau of committed, or poses a significant risk of including data received from the IATTC Oceans and International Environmental committing, acts of terrorism that staff; recommendations on research and Scientific Affairs, and by the needs and the coordination and threaten the security of U.S. nationals or Department of Commerce, National the national security, foreign policy, or facilitation of such research; Marine Fisheries Service. Members shall recommendations on scientific reviews economy of the United States. receive no compensation for their Consistent with the determination in and assessments required under the service on either the Committee or the IDCP; recommendations with respect to section 10 of Executive Order 13224 that Subcommittee/NATSAC, nor will ‘‘prior notice to persons determined to measures to assure the regular and members be compensated for travel or timely full exchange of data among the be subject to the Order who might have other expenses associated with their a constitutional presence in the United Parties to the AIDCP and each nation’s participation. NATSAC (or its equivalent); and States would render ineffectual the consulting with other experts as needed. Procedures for Submitting blocking and other measures authorized The Subcommittee shall be invited to Applications/Nominations in the Order because of the ability to have representatives attend all non- transfer funds instantaneously,’’ I Applications/nominations for the executive meetings of the U.S. Section determine that no prior notice need be General Advisory Committee and the and the General Advisory Committee provided to any person subject to this Scientific Advisory Subcommittee/ and shall be given full opportunity to determination who might have a NATSAC should be submitted to the examine and to be heard on all constitutional presence in the United Department of State (See ADDRESSES). proposed programs of scientific States because to do so would render Such applications/nominations should investigation, scientific reports, and ineffectual the measures authorized in include the following information: scientific recommendations of the the Order. Commission. Representatives of the (1) Full name/address/phone/fax and This notice shall be published in the Subcommittee may attend meetings of e-mail of applicant/nominee; Federal Register. the IATTC and the AIDCP as members (2) Whether applying/nominating for Dated: January 21, 2003. the General Advisory Committee or the of the U.S. delegation or otherwise in Colin L. Powell, accordance with the rules of those Scientific Advisory Committee/ NATSAC (applicants may specify both); Secretary of State, Department of State. bodies governing such participation. [FR Doc. 03–2710 Filed 2–4–03; 8:45 am] Participation as a member of the U.S. (3) Applicant/nominee’s organization BILLING CODE 4710–10–P delegation shall be subject to such limits or professional affiliation serving as the as may be placed on the size of the basis for the application/nomination; delegation. (4) Background statement describing the applicant/nominee’s qualifications OFFICE OF THE UNITED STATES National Scientific Advisory Committee and experience, especially as related to TRADE REPRESENTATIVE The Scientific Advisory the tuna purse seine fishery in the Generalized System of Preferences; Subcommittee shall also function as the eastern Pacific Ocean or other factors Import Statistics Relating to NATSAC established pursuant to relevant to the implementation of the Competitive Need Limitations; Article IX of the AIDCP. In this regard, Convention Establishing the IATTC or Invitation for Public Comment the Subcommittee shall perform the the Agreement on the International functions of the NATSAC as specified in Dolphin Conservation Program; AGENCY: Office of the United States Annex VI of the AIDCP including, but (5) A written statement from the Trade Representative. not limited to: Receiving and reviewing applicant/nominee of intent to ACTION: Notice. relevant data, including data provided participate actively and in good faith in to the National Marine Fisheries Service the meetings and activities of the SUMMARY: This notice is to inform the (NMFS) by the IATTC Staff; advising General Advisory Committee and/or the public of interim 2002 import statistics

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relating to Competitive Need B. Redesignation of Eligible Articles these products also stand to lose GSP Limitations (CNL) under the Where imports of an eligible article duty-free treatment on July 1, 2003, Generalized System of Preferences from a beneficiary developing country unless a waiver is granted. Such waivers (GSP) program. Public comments are ceased to receive duty-free treatment are required to have been requested in invited by 5 p.m., February 21, 2003, due to exceeding the CNL in a prior the 2002 GSP Annual Review. List III is a subset of List II. List III regarding possible de minimis CNL year, section 503(c)(2)(C) of the 1974 identifies GSP-eligible articles from waivers with respect to particular Act (19 U.S.C. 2463(c)(2)(C)) provides beneficiary developing countries that articles, and possible redesignations the President with discretion to are near or above the 50 percent CNL, under the GSP program of articles redesignate such an article for duty-free but that may be eligible for a de minimis currently subject to CNLs. treatment if imports in the most recently waiver of the 50 percent CNL. Actual FOR FURTHER INFORMATION CONTACT: completed calendar year did not exceed eligibility for de minimis waivers will the CNLs. Contact the GSP Subcommittee, Office depend on final calendar year 2002 of the United States Trade III. Implementation of Competitive import data. Each year, de minimis Representative (USTR), 1724 F Street, Need Limitations, Waivers, and waivers are considered automatically NW., Room F–220, Washington, DC Redesignations and public comments are accepted. 20508. The telephone number is (202) Exclusions from GSP duty-free List IV shows GSP-eligible articles 395–6971 and the facsimile number is that are currently not receiving GSP (202) 395–9481. treatment where CNLs have been exceeded will be effective July 1, 2003. duty-free treatment, but that have SUPPLEMENTARY INFORMATION: Decisions on these matters, as well as import levels (based on interim 2002 data) below the CNLs and thus may be I. Competitive Need Limitations decisions with respect to de minimis waivers and redesignations, will be eligible for redesignation pursuant to The GSP program provides for the based on full 2002 calendar year import the President’s discretionary authority. duty-free importation of designated statistics. Articles with a ‘‘D’’ exceed the 50 articles when imported from designated percent CNL and would require both a IV. Interim 2002 Import Statistics beneficiary developing countries. The de minimis waiver and redesignation to GSP program is authorized by title V of In order to provide advance notice of receive GSP duty-free treatment. The list the Trade Act of 1974 (19 U.S.C. 2461, articles that may exceed the CNLs for may contain articles that may not be et seq.), as amended (the ‘‘1974 Act’’), 2002, and to afford an earlier redesignated until certain conditions are and is implemented in accordance with opportunity for comment regarding fulfilled, as where, for example, GSP Executive Order 11888 of November 24, possible de minimis waivers and eligibility for an article was 1975, as modified by subsequent redesignations, interim import statistics administratively suspended because of Executive Orders and Presidential covering the first 10 months of 2002 are deficiencies in a country’s protection of Proclamations. Section 503(c)(2)(A) of included with this notice. worker or intellectual property rights. the 1974 Act, as amended (19 U.S.C. The following lists contain, for each Redesignation requests are normally 2463(c)(2)(A)), provides for CNLs on article, the Harmonized Tariff Schedule made in the annual review, unless made duty-free treatment under the GSP of the United States (HTS) number and in conjunction with remedying the program. When the President beneficiary country of origin, the value deficiencies. The lists appended to this notice are determines that a beneficiary of imports of such article for the first ten provided for informational purposes developing country exported to the months of 2002, and the percentage of only. The attached lists are computer- United States during a calendar year total imports of that product from all generated and based on interim 2002 either (1) a quantity of a GSP-eligible countries. The flags indicate the status data, and may not include all articles article having a value in excess of the of GSP eligibility. Articles marked with that may be affected by the GSP CNLs. applicable amount for that year ($105 an ‘‘*’’ are those that have been Regardless of whether or not an article million for 2002), or (2) a quantity of a excluded from GSP eligibility for the is included on the lists, all GSP-eligible article having a value equal entire past calendar year. Articles determinations and decisions regarding to or greater than 50 percent of the value marked with a ‘‘D’’ are those that, based the CNLs of the GSP program will be of total U.S. imports of the article from on interim 2002 data, may be eligible for based on full calendar year 2002 import all countries (the ‘‘50 percent’’ CNL), the a de minimis waiver of the 50 percent data with respect to each GSP-eligible President shall terminate GSP duty-free CNL. article. Each interested party is advised treatment for that article from that List I shows GSP-eligible articles from to conduct its own review of 2002 beneficiary developing country by no beneficiary developing countries that import data with regard to the possible later than July 1 of the next calendar have already exceeded the CNL of $105 application of GSP CNLs. year. million in 2002. Those articles without a flag are articles that were GSP-eligible IV. Public Comments II. Discretionary Decisions during 2002 but stand to lose GSP duty- Requirements for Submissions A. De Minimis Waivers free treatment on July 1, 2003, unless a waiver is granted. Such waivers are All submissions must conform to the Section 503(c)(2)(F) of the 1974 Act required to have been requested in the GSP regulations set forth at 15 CFR Part (19 U.S.C. 2463(c)(2)(F)) provides the 2002 GSP Annual Review. 2007, except as modified below. These President with discretion to waive the List II shows GSP-eligible articles regulations are also included in ‘‘A 50 percent CNL with respect to an from beneficiary developing countries Guide to the U.S. Generalized System of eligible article imported from a that (1) have not yet exceeded, but are Preferences (GSP)’’ (May 1999) (‘‘GSP beneficiary developing country if the approaching, the $105 million CNL for Guidebook’’), available at www.ustr.gov. value of total imports of that article from the period from January through Furthermore, each party providing all countries during the calendar year October 2002, or (2) are close to or comments should indicate on the first did not exceed the applicable amount above the 50 percent CNL. Depending page of the submission its name, the for that year ($16 million for 2002). on final calendar year 2002 import data, relevant HTS subheading(s), the

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beneficiary country or territory of In order to facilitate prompt For any document containing interest, and the type of action (e.g., the consideration of submissions, USTR business confidential information use of the President’s de minimis waiver strongly urges and prefers electronic e- submitted as an electronic attached file authority, etc.) in which the party is mail submissions in response to this to an e-mail transmission, the file name interested. notice. In the event that an e-mail of the business confidential version Comments must be submitted, in submission is impossible, submissions should begin with the characters ‘‘BC-’’, English, to the Chairman of the GSP should be made by facsimile. These and the file name of the public version Subcommittee of the Trade Policy submissions should be single copy should begin with the characters ‘‘P-’’. Committee (TPSC) as soon as possible transmissions in English with the total The ‘‘P-’’ or ‘‘BC-’’ should be followed but not later than 5 p.m on February 21, submission not to exceed 50 single- by the name of the party (government, 2003. Comments submitted after this spaced pages and 3 megabytes as a company, union, association, etc.) date may be considered at the discretion digital file attached to an e-mail which is submitting the petition. transmission. Persons making of the GSP Subcommittee until the time Parties who make submissions by e- its advice is provided to the TPSC. submissions by e-mail should use the following subject line: ‘‘Comments on mail should not provide separate cover Submissions in response to this notice 2002 CNL Review’’ Documents must be letters or messages in the message area will be subject to public inspection by submitted as either WordPerfect of the e-mail; information that might appointment with the staff of the USTR (‘‘.WPD’’), MSWord (‘‘.DOC’’), or text appear in any cover letter should be Public Reading Room, except for (‘‘.TXT’’) files. Documents should not be included directly in the attached file information granted ‘‘business submitted as electronic image files or containing the submission itself. The e- confidential’’ status pursuant to 15 CFR contain imbedded images (for example, mail address for these submissions is 2003.6. ‘‘.JPG’’, ‘‘PDF’’, ‘‘.BMP’’, or ‘‘.GIF’’) as [email protected]. If the submission contains business such files are generally excessively Public versions of all documents confidential information, a non- large. E-mail submissions containing relating to this review will be available confidential version of the submission such files may not be accepted. for review approximately three weeks must also be submitted that indicates Supporting documentation submitted as after the due date by appointment in the where confidential information was spreadsheets are acceptable as Quattro USTR Public Reading Room, 1724 F redacted by inserting asterisks where Pro or Excel, pre-formatted for printing Street NW., Washington, DC. material was deleted. In addition, the on 81⁄2 x 11 inch paper. To the extent Availability of documents may be confidential submission must be clearly possible, any data attachments to the ascertained, and appointments may be marked ‘‘BUSINESS CONFIDENTIAL’’ submission should be included in the made from 9:30 a.m. to noon and 1 p.m. at the top and bottom of each and every same file as the submission itself, and to 4 p.m., Monday through Friday, by page of the document. The public not as separate files. Facsimile calling (202) 395–6186. version which does not contain business submissions should include, among confidential information must also be other identifying information specified Steven Falken, clearly marked at the top and bottom of in the regulations, the following Executive Director for GSP, Chairman, GSP each and every page (either ‘‘PUBLIC information at the top of the first page: Subcommittee. VERSION’’ or ‘‘NON-CONFIDENTIAL’’). ‘‘Comments on 2002 CNL Review.’’ BILLING CODE 3190–01–P

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[FR Doc. 03–2746 Filed 2–4–03; 8:45 am] opportunity for comment be provided domestic production has been removed BILLING CODE 3190–01–P after the United States submits or from the market. receives a request for the establishment Venezuela’s import licensing systems of a WTO dispute settlement panel. and practices thus appear to be OFFICE OF THE UNITED STATES Consistent with this obligation, but in inconsistent with numerous WTO TRADE REPRESENTATIVE an effort to provide additional obligations. Specifically, Venezuela’s measures appear inconsistent with [Docket No. WTO/DS–275] opportunity for comment, USTR is providing notice that consultations have Article 4.2 of the Agreement on WTO Consultations Regarding been requested pursuant to the WTO Agriculture, Articles II, X, XI, and XIII Venezuela—Import Licensing Dispute Settlement Understanding. If of GATT 1994, Article 2.1 of the TRIMs Measures on Certain Agricultural such consultations should fail to resolve Agreement, and Articles 1.4, 3.2, 3.5, Products the matter and a dispute settlement 5.1, 5.2, and 5.3 of the Import Licensing panel is established pursuant to the Agreement. Venezuela’s measures also AGENCY: Office of the United States DSU, such panel, which would hold its appear to nullify or impair the benefits Trade Representative. meetings in Geneva, Switzerland, would accruing to the United States directly ACTION: Notice; request for comments. be expected to issue a report on its under the cited agreements. findings and recommendations within Public Comment: Requirements for SUMMARY: The Office of the United six to nine months after it is established. States Trade Representative (USTR) is Submissions providing notice that on November 7, Major Issues Raised by the United Interested persons are invited to 2002, the United States requested States submit written comments concerning consultations with Venezuela under the Venezuela has established import the issues raised in the dispute. Marrakesh Agreement Establishing the licensing requirements for numerous Comments must be in English. In order World Trade Organization (WTO), agricultural products, including corn, to facilitate prompt consideration of regarding Venezuela’s import licensing sorghum, dairy products (for example, submissions, USTR strongly urges and measures on certain agricultural cheese, whey, whole milk powder, and prefers electronic e-mail submissions to products. These measures appear to be non-fat dry milk), grapes, yellow grease, the address [email protected], inconsistent with the Venezuela’s poultry, beef, pork, and soybean meal. in response to this notice. In the event obligations under the provisions of the Thus, to import any of these products, that an e-mail submission is impossible, GATT 1994, of the WTO Agreement on an importer must obtain a license in submissions should be made by Agriculture, the TRIMs Agreement and accordance with Venezuelan facsimile to Sandy McKinzy at the the Import Licensing Agreement and, in procedures. Venezuela maintains these number given above. It is preferred that particular, Articles III, X, XI, and XII of import licensing systems and practices documents be submitted as either the GATT 1994, Article 4.2 of the through numerous measures. WordPerfect (‘‘.WPD’’), MSWord Agreement on Agriculture, Article 2.1 of Venezuela requires import licenses for (‘‘.DOC’’), or text (‘‘.TXT’’) files. To the the TRIMs Agreement, and Articles 1.4, other agricultural products, including extent possible, any data attachments to 3.2, 3.5, 5.1, 5.2, and 5.3 of the Import poultry, beef, pork, and grapes (Decreto the submission should be included in Licensing Agreement. Pursuant to No. 989, Gaceta Official No. 5,039 the same file as the submission itself, Article 4.3 of the WTO Dispute Extraordinaria (February 9, 1996)), but and not as separate files. Facsimile Settlement Understanding (DSU), does not appear to have published any submissions should include the Venezuela met with the United States resolutions, decrees, official notices, or following information at the top of the within a period of 30 days from the date any other measures establishing first page, and e-mail submissions of the request, on November 26, 2002. applicable import licensing procedures. should include the following USTR invites written comments from Venezuela’s import licensing system information in the subject line: the public concerning the issues raised for all of these agricultural products ‘‘Venezuela Import Licensing Dispute.’’ in this dispute. appears to establish a discretionary A person requesting that information DATES: Although the USTR will accept import licensing regime. Through its contained in a comment submitted by any comments received during the import licensing practices, Venezuela that person be treated as confidential course of the dispute settlement has also failed to establish a transparent business information must certify that proceedings, comments should be and predictable system for issuing such information is business submitted on or before March 21, 2002, import licenses and has severely confidential and would not customarily to be assured of timely consideration by restricted and distorted trade in these be released to the public by the USTR. goods. Such practices include commenter. Confidential business Venezuela’s failure to publish rules and information must be clearly marked ADDRESSES: Submit comments to information concerning its licensing ‘‘BUSINESS CONFIDENTIAL’’ (if [email protected], or to Sandy McKinzy, procedures, its failure to process possible in a contrasting color ink) at Monitoring and Enforcement Unit, applications in a timely fashion, its the top of each page of each copy. For Office of the General Counsel, fax (202) failure to make licenses valid for a any document containing business 395–3640. For assistance, contact Ms. period of reasonable duration, and its confidential information submitted by McKinzy at (202) 395–3581. administration of tariff-rate quotas so as electronic transmission, the file name of FOR FURTHER INFORMATION CONTACT: to discourage their full utilization. In the business confidential version should Katharine J. Mueller, Assistant General addition, in several cases Venezuela has begin with the characters ‘‘BC’’, and the Counsel, Office of the United States tied the issuance of licenses to the file name of the public version should Trade Representative, at (202) 395– purchase, consumption, or use of begin with the characters ‘‘P’’. The ‘‘P’’ 3581. domestic products or investment in or ‘‘BC’’ should be followed by the name SUPPLEMENTARY INFORMATION: Section domestic production. At least twice of the commenter. Interested persons 127(b) of the Uruguay Round Venezuela has explicitly banned the who make submissions by electronic Agreements Act (URAA) (19 U.S.C. importation of corn by suspending the mail should not provide separate cover 3537(b)(1)) requires that notice and granting of import license until letters; information that might appear in

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a cover letter should be included in the ACTION: Notice of Intent. The scoping process undertaken as submission itself. Similarly, to the part of this project will include the extent possible, any attachments to the SUMMARY: The FHWA is issuing this distribution of a scoping informational submission should be included in the notice to advise the public that an packet, coordination with appropriate same file as the submission itself, and Environmental Impact Statement (EIS) Federal, State, and local agencies, and not as separate files. will be prepared for the construction of review sessions, as needed. A study Information or advice contained in a a proposed four-lane highway in west group comprised of local officials will comment submitted, other than business central Illinois through portions of be established to provide input during confidential information, may be Peoria, Fulton, and McDonough development and refinement of determined by USTR to be confidential Counties. The proposed highway, alternatives. A scoping packet may be in accordance with section 135(g)(2) of Illinois 336 (FAP 315), will extend from obtained from one of the contact people the Trade Act of 1974 (19 U.S.C. Peoria to Macomb, Illinois. listed above. 2155(g)(2)). If the submitter believes that FOR FURTHER INFORMATION CONTACT: To ensure that the full range of issues information or advice may qualify as Norman R. Stoner, P.E., Division related to this proposed action are such, the submitter— Administrator, Federal Highway addressed, and all substantive issues are (1) Must so designate the information Administration, 3250 Executive Park identified, public involvement activities or advice; Drive, Springfield, Illinois 62703, will be conducted as part of this study. (2) Must clearly mark the material as Phone: (217) 492–4600. Public informational meetings, public ‘‘SUBMITTED IN CONFIDENCE’’ in a Joseph E. Crowe, P.E., District Engineer, hearings, newsletters and interest group contrasting color ink at the top of each Illinois Department of Transportation, meetings will provide opportunities for page of each copy, or appropriately 401 Main Street, Peoria, Illinois 61602– public involvement. The project’s Draft name the electronic file submitted 1111, Phone: (309) 671–3333. EIS will be available for public and containing such material; and SUPPLEMENTARY INFORMATION: The agency review prior to the public (3) Is encouraged to provide a non- FHWA, in cooperation with the Illinois hearing. The time and location of the confidential summary of the Department of Transportation will public hearings will be announced in information or advice. prepare an Environmental Impact local newspapers. Comments or Pursuant to section 127(e) of the Statement (EIS) on a proposal to questions concerning this proposed URAA (19 U.S.C. 3537(e)), USTR will develop a four-lane highway between action and the Draft EIS should be maintain a file on this dispute Peoria and Macomb Illinois. Three directed to FHWA or the Illinois settlement proceeding, accessible to the feasible corridors previously identified Department of Transportation at the public, in the USTR Reading Room, by Illinois DOT will be re-evaluated and addresses provided above. which is located at 1724 F Street, NW., one corridor will be selected for further (Catalog of Federal Domestic Assistance Washington, DC 20508. The public file study. The selected corridor will be Program Number 20.205, Highway Planning will include non-confidential comments presented at a public hearing. Alternate and Construction. The regulations received by USTR from the public with alignments will be studied within the implementing Executive Order 12372 respect to the dispute; if a dispute selected corridor once it has been regarding intergovernmental consultation on settlement panel is convened, the U.S. identified. Alternates studied will Federal programs and activities apply to this program.) submissions to that panel, the address engineering and environmental submissions, or non-confidential concerns in order to determine an Dated: January 30, 2003. summaries of submissions, to the panel alignment location that meets the J.D. Stevenson, received from other participants in the transportation needs of the region and (FHWA Signature Line). dispute, as well as the report of the minimizes the impacts to the [FR Doc. 03–2785 Filed 2–4–03; 8:45 am] panel; and, if applicable, the report of environment. Alignment studies will BILLING CODE 4910–22–M the Appellate Body. An appointment to determined one preferred alignment review the public file (Docket WTO/DS– location and address types of facility, 275, Venezuela Import Licensing preliminary interchange geometrics and DEPARTMENT OF TRANSPORTATION Dispute) may be made by calling the engineering, and identify environmental USTR Reading Room at (202) 395–6186. impacts. Preliminary measures to National Highway Traffic Safety The USTR Reading Room is open to the minimize harm, probable construction Administration public from 9:30 a.m. to 12 noon and 1 cost estimates, and estimated right-of- p.m. to 4 p.m., Monday through Friday. way requirements will be developed. A [Docket No. NHTSA 2002–14181] Daniel Brinza, second hearing will beheld to present Insurance Cost Information Regulation Assistant United States Trade Representative the final preferred alignment. for Monitoring and Enforcement. The proposed action will enhance AGENCY: National Highway Traffic [FR Doc. 03–2706 Filed 2–4–03; 8:45 am] travel efficiency within the study area, Safety Administration (NHTSA), DOT. improve transportation continuity, BILLING CODE 3190–01–M ACTION: Notice of availability. improve rural access, and help reduce further economic and population SUMMARY: This notice announces decline in the counties served by this publication by NHTSA of the 2003 text DEPARTMENT OF TRANSPORTATION highway. Several alignment alternatives, and data for the annual insurance cost including the no-action alternative, will information booklet that all car dealers Federal Highway Administration be evaluated for the proposed project. must make available to prospective Environmental Impact Statement: Intersections/interchanges will be purchasers, pursuant to 49 CFR 582.4. Peoria, Fulton, and McDonough provided at all major high-volume This information is intended to assist Counties, Illinois roadways. Primary resources that may prospective purchasers in comparing be affected are agricultural and, differences in passenger vehicle AGENCY: Federal Highway property tax income, wetlands, and collision loss experience that could Administration (FHWA), DOT. woodlands. affect auto insurance costs.

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ADDRESSES: Interested persons may of this notice should contact Ms. prior to the mold being correctly obtain a copy of this booklet by Rosalind Proctor of NHTSA’s Office of stamped, 5,706 tires were inadvertently contacting the U.S. Department of Planning and Consumer Standards (202) shipped marked with the one incorrect Transportation, Docket Management, 366–0846 to receive a copy of the size designation. Room PL–401, 400 Seventh Street, SW., booklet and to be added to the mailing Cooper states that the incorrect size Washington, DC 20590. [Docket hours list. Dealers may also obtain a copy of designation on each tire does not are from 10 am to 5 pm]. the booklet through the NHTSA web present a safety-related defect. The FOR FURTHER INFORMATION CONTACT: Ms. page at: www.nhtsa.dot.gov/cars/ incorrect marking is the series Rosalind Proctor, Chief, Consumer problems/studies/InsCost. designation. In the two most prominent Standards Division, NHTSA, 400 (49 U.S.C. 32302; delegation of authority at locations and the serial side of the tire, Seventh Street SW., Washington, DC 49 CFR 1.50(f).) the series designation is correct. 20590 (202–366–0846). Issued on: January 30, 2003. Additionally, there is not a P275/15 manufactured in an 80 series. The SUPPLEMENTARY INFORMATION: Pursuant Stephen R. Kratzke, noncompliant tires produced from the to section 201(e) of the Motor Vehicle Associate Administrator for Rulemaking. Information and Cost Savings Act, 15 involved mold during the [FR Doc. 03–2699 Filed 2–4–03; 8:45 am] aforementioned production periods U.S.C. 1941(e), on March 5, 1993, 58 FR BILLING CODE 4910–59–U 12545, the National Highway Traffic comply with all other requirements of Safety Administration (NHTSA) 49 CFR 571.109. Interested persons are invited to amended 49 CFR part 582, Insurance DEPARTMENT OF TRANSPORTATION submit written data, views, and Cost Information Regulation, to require arguments on the application described all dealers of automobiles to distribute National Highway Traffic Safety above. Comments should refer to the to prospective customers information Administration docket number and be submitted to: that compares differences in insurance [Docket No. NHTSA 2003–14371; Notice 1] U.S. Department of Transportation, costs of different makes and models of Docket Management, Room PL–401, 400 passenger cars based on differences in Cooper Tire & Rubber Company; Seventh Street, SW., Washington, DC damage susceptibility. On March 17, Receipt of Application for Decision of 20590. It is requested that two copies be 1994, NHTSA denied a petition Inconsequential Noncompliance submitted. submitted by the National Automobile Cooper Tire & Rubber Company All comments received before the Dealers Association (NADA) for NHTSA close of business on the closing date to reconsider part 582 insofar as it (Cooper) has determined that certain Mastercraft Avenger GT brand tires in indicated below will be considered. The requires all automobile dealers to application and supporting materials, prepare the requisite number of copies the P275/60R15 size do not meet the labeling requirements mandated by and all comments received after the for distribution of the insurance cost closing date, will also be filed and will information to prospective purchasers. Federal Motor Vehicle Safety Standard (FMVSS) No. 109, ‘‘New Pneumatic be considered to the extent possible. 59 FR 13630. When the application is granted or On March 24, 1995, NHTSA Tires.’’ Pursuant to 49 U.S.C. 30118(d) denied, the notice will be published in published a Final Rule to amend part and 30120(h), Cooper has petitioned for the Federal Register pursuant to the 582 in a number of respects. 60 FR a determination that this authority indicated below. Comment 15509. These changes included wording noncompliance is inconsequential to motor vehicle safety and has filed an closing date: March 7, 2003. clarifications and a change in the (49 U.S.C. 301118, 301120; delegations of availability date of the booklet. appropriate report pursuant to 49 CFR authority at 49 CFR 1.50 and 501.8) Pursuant to 49 CFR 582.4, all Part 573, ‘‘Defect and Noncompliance automobile dealers are required to make Reports.’’ Issued on: January 30, 2003. available to prospective purchasers This notice of receipt of an Stephen R. Kratzke, booklets that include this comparative application is published under 49 Associate Administrator for Rulemaking. information as well as certain U.S.C. 30118 and 30120 and does not [FR Doc. 03–2701 Filed 2–4–03; 8:45 am] mandatory explanatory text that is set represent any agency decision or other BILLING CODE 4910–59–U out in section 582.5. Early each year, exercise of judgment concerning the NHTSA publishes the annual Federal merits of the application. Register document updating the The noncompliance with S4.3(e) DEPARTMENT OF TRANSPORTATION Highway Loss Data Institute’s (HLDI) relates to the mold number. The Research and Special Programs December Insurance Collision Report. Findlay, Ohio tire manufacturing Administration Booklets reflecting the updated data facility had one (1) Mold involved in must be available for distribution to production during the twenty-third and [Docket No. RSPA–2003–14307 (Notice No. prospective purchasers without charge thirty-second production weeks of 2002 03–1)] within 30 days from the date of the in which one size designation was Federal Register. incorrectly stated. The subject tires were Information Collection Activities NHTSA is mailing a copy of the 2003 molded with the correct size AGENCY: Research and Special Programs booklet to each dealer on the mailing designation P275/60R15 on both upper Administration (RSPA), DOT. list that the Department of Energy uses sidewalls and on the lower sidewall ACTION: Notice and request for to distribute the ‘‘Gas Mileage Guide.’’ area on the DOT serial number side. comments. Dealers will have the responsibility of However, on the side opposite the DOT reproducing a sufficient number of serial number, they were stamped with SUMMARY: In accordance with the copies of the booklet to assure that they an incorrect size designation of P275/ Paperwork Reduction Act of 1995, are available for retention by 80R15 in the lower sidewall area. RSPA invites comments on certain prospective purchasers by March 7, The incorrect size designation was information collections pertaining to 2003. Dealers who do not receive a copy removed from the mold and the correct hazardous materials transportation for of the booklet within 15 days of the date side designation inserted; however, which RSPA intends to request approval

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from the Office of Management and This notice identifies information report to the Federal Railroad Budget (OMB). collections that we are submitting to Administration (FRA). This information DATES: Interested persons are invited to OMB for extension. The information is used by FRA to ensure that all submit comments on or before April 7, collections are contained in the affected tank cars are modified before 2003. Hazardous Materials Regulations (HMR; the regulatory compliance date. ADDRESSES: Submit written comments 49 CFR parts 171–180). We have revised (3) FRA approvals: An approval is to the Dockets Management System, burden estimates, where appropriate, to required from FRA to transport a bulk U.S. Department of Transportation, 400 reflect current reporting levels based on packaging (such as a portable tank, IM Seventh Street, SW, Washington, DC changes in proposed or final rules portable tank, intermediate bulk 20590–0001. Comments should identify published since the information container, cargo tank, or multi-unit tank the Docket Number RSPA–2003–14307 collections were last approved. The car tank) containing a hazardous and be submitted in two copies. Persons following information is provided for material in container-on-flat-car or wishing to receive confirmation of each information collection: (1) Title of trailer-on-flat-car service other than as receipt of their comments should the information collection, including authorized by § 174.63. FRA uses this include a self-addressed stamped former title if a change is being made; information to ensure that the bulk postcard. Comments may also be (2) OMB control number; (3) summary package is properly secured using an submitted to the docket electronically of the information collection activity; (4) adequate restraint system during by logging onto the Dockets description of affected public; (5) transportation. FRA approval is also Management System Web site at http:/ estimate of total annual reporting and required for the movement of any tank /dms.dot.gov. Click on ‘‘Help & recordkeeping burden; and (6) car that does not conform to the Information’’ to obtain instructions for frequency of information collection. We applicable requirements in the HMR. filing the document electronically. In will request a three-year term of We proposed (September 30 1999; 64 FR every case, the comment should refer to approval for each information collection 53169) to broaden this provision to the Docket number ‘‘RSPA–2003– activity and, when approved by OMB, include the movement of covered 14307.’’ publish notice of the approval in the hopper cars, gondola cars, and other The Dockets Management System is Federal Register. We request comments types of railroad equipment when they located on the Plaza Level of the Nassif on the following information collection no longer conform to Federal law but Building, at the above address. Public requests: may safely be moved to a repair dockets may be reviewed between the Title: Rail Carriers and Tank Car location. These latter movements are hours of 9 a.m. to 5 p.m., Monday Tanks Requirements. currently being reported under the through Friday, excluding Federal OMB Control Number: 2137–0559. information collection for exemption holidays. In addition, the Notice and all Summary: This information collection applications. consolidates and describes the comments can be reviewed on the (4) Manufacturer reports and information collection provisions in Internet by accessing the Hazmat Safety certificate of construction: These parts 172, 173, 174, 179, and 180 of the Homepage at http://hazmat.dot.gov. documents are prepared by tank car Anyone is able to search the HMR on the transportation of hazardous manufacturers and are used by owners, electronic form of all comments materials by rail and the manufacture, users and FRA personnel to verify that received into any of our documents by qualification, maintenance and use of rail tank cars conform to the applicable the name of the individual submitting tank cars. The interested reader should specification. the comment (or signing the comment, refer to the table in 49 CFR 171.6 for a (5) Quality Assurance Program: complete listing of sections covered by if submitted on behalf of an association, Facilities that build, repair and ensure this information collection. The types of business, labor union, etc.). You may the structural integrity of tank cars are information collected include: required to develop and implement a review DOT’s complete Privacy Act (1) Approvals of the Association of quality assurance program. This Statement in the Federal Register American Railroads (AAR) Tank Car information is used by the facility and published on April 11, 2000 (Volume Committee: An approval is required DOT compliance personnel to ensure 65, Number 70; Pages 19477–78) or you from the AAR Tank Car Committee for that each tank car is constructed or may visit http://dms.dot.gov. a tank car to be used for a commodity Requests for a copy of an information repaired in accordance with the other than those specified in part 173 collection should be directed to Deborah applicable requirements. and on the certificate of construction. Boothe or T. Glenn Foster, Office of (6) Inspection reports: A written This information is used to ascertain Hazardous Materials Standards (DHM– report must be prepared and retained for whether a commodity is suitable for 10), at the address and telephone each tank car that is inspected and transportation in a tank car. AAR number listed below. tested in accordance with § 180.509 of approval also is required for an the HMR. Rail carriers, users, and the FOR FURTHER INFORMATION CONTACT: application for approval of designs, Deborah Boothe or T. Glenn Foster, FRA use this information to ensure that materials and construction, conversion rail tank cars are properly maintained Office of Hazardous Materials Standards or alteration of tank car tanks (DHM–10), Research and Special and in safe condition for transporting constructed to a specification in part hazardous materials. Programs Administration, Room 8422, 179 or an application for construction of 400 Seventh Street, SW, Washington, Affected Public: Manufacturers, tank cars to any new specification. This owners and rail carriers of tank cars. DC 20590–0001, Telephone (202) 366– information is used to ensure that the 8553. Annual Reporting and Recordkeeping: design, construction or modification of 2,759. SUPPLEMENTARY INFORMATION: Section a tank car or the construction of a tank Number of Respondents: 260. 1320.8(d), Title 5, Code of Federal car to a new specification is performed Total Annual Responses: 16,640. Regulations requires that RSPA (we) in accordance with the applicable Total Annual Burden Hours: 2,759. provide interested members of the requirements. Frequency of Collection: Annually. public and affected agencies an (2) Progress reports: Each owner of a Title: Rulemaking, Exemption, and opportunity to comment on information tank car subject to the requirements of Preemption Requirements. collection and recordkeeping requests. § 173.31(b) shall submit a progress OMB Control Number: 2137–0051.

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Summary: This collection of subdivision or Indian tribe requirement Total Reporting and Recordkeeping information applies to rulemaking should or should not be preempted Burden: 4,219. procedures regarding the Hazardous under the standards of § 5125 (see also Number of Respondents: 3,304. Materials Regulations (HMR). Specific 49 CFR 107.202); and how the applicant Total Annual Responses: 4,294. areas covered in this information is affected by the State or political Total Annual Burden Hours: 4,219. collection include Part 105, Subpart B subdivision or Indian tribe Frequency of Collection: Periodically. and Subpart C, ‘‘Hazardous Materials requirements. Issued in Washington, DC, on January 30, Program Definitions and General (5) Waivers of Preemption: With the 2003. Procedures,’’ Part 106, Subpart B, exception of requirements preempted Edward T. Mazzullo, ‘‘Participating in the Rulemaking under 49 U.S.C. 5125(c), any person Director, Office of Hazardous Materials Process,’’ Part 107, Subpart B, may apply to the Associate Standards. ‘‘Exemptions,’’ Part 107, Subpart C, Administrator for a waiver of [FR Doc. 03–2698 Filed 2–4–03; 8:45 am] ‘‘Preemption.’’ The Federal hazardous preemption with respect to any BILLING CODE 4910–60–P materials transportation law directs the requirement that: (1) The State or Secretary of Transportation to prescribe political subdivision thereof or an regulations for the safe transportation of Indian tribe acknowledges is preempted DEPARTMENT OF TRANSPORTATION hazardous materials in commerce. We under the Federal hazardous material are authorized to accept petitions for transportation law or the regulations Transportation Security Administration rulemaking and appeals, as well as issued thereunder, or (2) that has been [Docket No. TSA–2002–11604] applications for exemptions, determined by a court of competent preemption determinations and waivers jurisdiction to be so preempted. The Security Programs For Aircraft 12,500 of preemption. The types of information Associate Administrator may waive Pounds Or More collected include: preemption with respect to such (1) Petitions for Rulemaking: Any requirement upon a determination that AGENCY: Transportation Security person may petition the Office of such requirement affords an equal or Administration (TSA), DOT. Hazardous Materials Standards to add, greater level of protection to the public ACTION: Notice. amend, or delete a regulation in Parts than is afforded by the requirement of 110, 130, 171 through 180, or may the Federal hazardous material SUMMARY: This notice announces an petition the Office of the Chief Counsel transportation law or the regulations extension of time for compliance with to add, amend, or delete a regulation in issued thereunder and does not the final security program for operators Parts 105, 106 or 107. unreasonably burden commerce. of aircraft with a maximum certificated (2) Appeals: Except as provided in takeoff weight of 12,500 or more § 106.40(e), any person may submit an The information collected under these application procedures is used in the pounds. TSA is extending the time from appeal to our actions in accordance with February 1 to April 1, 2003. the Appeals procedures found in review process by RSPA in determining the merits of the petitions for DATES: Security program compliance §§ 106.110 through 106.130. date: April 1, 2003. (3) Application for Exemption: Any rulemakings and for reconsideration of person applying for an exemption must rulemakings, as well as applications for FOR FURTHER INFORMATION CONTACT: Lon include the citation of the specific exemptions, preemption determinations Siro or Gail Richards by telephone: regulation from which the applicant and waivers of preemption to the HMR. (571) 227–2217 or (571) 271–2216 seeks relief; specification of the The procedures governing these respectively; or by e-mail proposed mode or modes of petitions for rulemaking and for [email protected] or transportation; detailed description of reconsideration of rulemakings are [email protected]. You may also the proposed exemption (e.g., covered in subpart B of part 106. mail any comments or questions alternative packaging, test procedure or Applications for exemptions, concerning this action to Lon Siro or activity), including as appropriate, preemption determinations and waivers Gail Richards, Aviation Operations, written descriptions, drawings, flow of preemption are covered under Room 11080S, East Tower, charts, plans and other supporting subparts B and C of part 107. Transportation Security Administration, documents, etc. Rulemaking procedures enable RSPA to 400 Seventh Street, SW., Washington, (4) Application for Preemption determine if a rule change is necessary, DC 20591. Determination: Any person directly is consistent with public interest, and SUPPLEMENTARY INFORMATION: On affected by any requirement of a State, maintains a level of safety equal to or February 22, 2002, TSA published a political subdivision, or Indian tribe superior to that of current regulations. final rule in the Federal Register (67 FR may apply to the Associate Exemption procedures provide the 8205), known as the ‘‘Twelve-Five Administrator for a determination information required for analytical Rule,’’ that, in part, required new whether that requirement is preempted purposes to determine if the requested security measures for operators of under 49 U.S.C. 5125, or regulations relief provides for a comparable level of aircraft with a maximum certificated issued thereunder. The application must safety as provided by the HMR. takeoff weight of 12,500 pounds or include the text of the State or political Preemption procedures provide more. Under the rule, these operators subdivision or Indian tribe requirement information for RSPA to determine must adopt and carry out certain for which the determination is sought; whether a requirement of a State, security measures approved by TSA, specify each requirement of the Federal political subdivision, or Indian tribe is generally known as the ‘‘Twelve-Five hazardous material transportation law preempted under 49 U.S.C. 5125, or Security Program.’’ or the regulations issued thereunder regulations issued thereunder, or As published, the effective date of the with which the applicant seeks the whether a waiver of preemption should Twelve-Five Rule was June 24, 2002. State, political subdivision or Indian be issued. This document does not alter that date. tribe requirement to be compared; Affected Public: Shippers, carriers, On August 28, 2002 (67 FR 55308), TSA explanation of why the applicant packaging manufacturers, and other issued a notice that established a believes the State or political affected entities. schedule for comments on the proposed

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security program and a date for (571) 227–2217 or (571) 227–2216 TSA is extending the date for compliance with the final security respectively; by e-mail compliance to April 1, 2003. program. Security programs constitute [email protected] or Issued in Washington, DC, on January 30, sensitive security information (SSI), [email protected]. You may also 2003. which are disclosed only to persons mail any comments or questions with a need to know, in accordance concerning this action to Lon Siro or Stephen J. McHale, with 49 CFR part 1520. Therefore, the Gail Richards, Aviation Operations, Deputy Administrator. Twelve-Five Security Program may be Room 11080S, East Tower, [FR Doc. 03–2799 Filed 1–31–03; 3:51 pm] distributed only to affected operators. In Transportation Security Administration, BILLING CODE 4910–62–P that notice, TSA required all affected 400 Seventh Street, SW., Washington, aircraft operators to be in compliance DC 20591. with the final security program by DEPARTMENT OF TRANSPORTATION SUPPLEMENTARY INFORMATION: On June February 1, 2003. 19, 2002, TSA published a final rule in TSA provided the proposed Twelve- Transportation Security Administration the Federal Register (67 FR 41635) that, Five Security Program to affected in part, requires new security measures operators and analyzed all comments Intercity Bus Security Grant Program; for non-governmental private charter received concerning the program. TSA Notice Modifying the Closing Date for passenger operations in certain large prepared a final security program and Receipt of Applications Under the aircraft. Under the rule, these operators has forwarded it to all twelve-five Intercity Bus Security Grant Program must adopt and carry out a security operators. TSA has prepared a training program approved by TSA to ensure program to ensure that all operators AGENCY: Transportation Security that passengers and their accessible receive the training required by the final Administration, Department of property are screened prior to boarding. security program. In addition, TSA has Transportation. The effective date of the rule was developed a fingerprint collection August 19, 2002, and this document Authority: Authority for this program is process that will enable all affected does not change that effective date. contained in the fiscal year 2002 operators to complete the fingerprint- Supplemental Appropriations Act for Further On August 28, 2002, TSA published based criminal history records checks of Recovery From and Response to Terrorist a notice (67 FR 55309) that established their flightcrew members, as required by Attacks on the United States, Pub. L. 107– the Twelve-Five Rule. a schedule for affected operators to 206, 116 Stat. 820. However, TSA must provide the comment on the proposed security industry with sufficient time to train program and a date on which affected ACTION: Notice modifying deadline for employees and fingerprint crew operators would have to be in receipt of applications. members, and completion of these tasks compliance with the final approved is not possible by February 1, 2003. security program. The compliance date SUMMARY: This notice extends the Therefore, TSA is extending the security for the final security program was set for closing date previously established for program compliance date to April 1, February 1, 2003. receipt of applications under the 2003. In addition, on December 31, 2002 (67 Intercity Bus Security Grant Program Issued in Washington, DC, on January 30, FR 79881), TSA published an (Program Announcement 2003. amendment to the final rule in response #02MLPA0002) in 68 FR 2634, Jan. 17, Stephen J. McHale, to comments received, which altered the 2003. Applications must be received on Deputy Administrator. aircraft subject to the rule. The private or before 4 p.m. EST, March 19, 2003. charter security standards now apply to [FR Doc. 03–2800 Filed 1–31–03; 3:51 pm] non-governmental private charter ADDRESSES: Program Announcement BILLING CODE 4910–62–P operations in aircraft with a maximum #02MLPA002 and application forms for certificated takeoff weight greater than the Intercity Bus Security Grant Program are available through the TSA Internet DEPARTMENT OF TRANSPORTATION 45,500 kg or a seating configuration of 61 or more. at http://www.tsa.dot.gov under Transportation Security Administration Security programs constitute sensitive Business Opportunities and Industry Partners. [Docket No. TSA–2002–12394] security information (SSI), which can be disclosed only to persons with a need to FOR FURTHER INFORMATION CONTACT: Ms. Aviation Security: Security Program know, in accordance with 49 CFR part Mary Heying, Transportation Security for Certain Private Charter Operations 1520. Therefore, the proposed private Administration, Office of Maritime and charter security program was distributed Land Security, 400 7th Street, SW., AGENCY: Transportation Security for comment only to the operators TSA–8, Washington, DC 20590, (phone: Administration (TSA), DOT. subject to the rule. TSA received 571–227–1252, e-mail: ACTION: Notice. comments on the proposed security program and has amended the program, [email protected]), or Mr. Tony SUMMARY: This notice extends the date where appropriate, to accommodate the Corio (phone: 571–227–1233, e-mail: on which aircraft operators engaged in comments received. TSA is in the [email protected]). non-governmental private charter process of providing the final security Dated: January 30, 2003. passenger operations on large aircraft program to affected entities, and has Richard E. Bennis, must be in compliance with the final completed a training program for the private charter security program, from Assistant Administrator, Office of Maritime operators to use to ensure that they and Land Security. February 1 to April 1, 2003. operate in accordance with the security [FR Doc. 03–2654 Filed 2–4–03; 8:45 am] DATES: Security program compliance program. However, the affected date: April 1, 2003. operators have not had sufficient time to BILLING CODE 4110–62–M FOR FURTHER INFORMATION CONTACT: Lon complete the training and establish a Siro or Gail Richards by telephone: compliant security program. Therefore,

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DEPARTMENT OF THE TREASURY Insurance Corporation (FDIC); and agencies or the agencies) must jointly Office of Thrift Supervision (OTS), submit an annual report to the President’s Commission on the United Treasury. Committee on Financial Services of the States Postal Service ACTION: Report to the Committee on U.S. House of Representatives and the Committee on Banking, Housing, and AGENCY: Department of the Treasury, Financial Services of the United States Urban Affairs of the U.S. Senate Departmental Offices. House of Representatives and to the Committee on Banking, Housing, and describing differences between the ACTION: Notice of meeting. Urban Affairs of the United States accounting and capital standards used SUMMARY: Notice is given of a meeting Senate regarding differences in capital by and among the agencies. The report of the President’s Commission on the and accounting standards among the must be published in the Federal United States Postal Service. federal banking and thrift agencies. Register. This report covers differences existing as of December 31, 2002. DATES: The meeting will be held on SUMMARY: The OCC, Board, FDIC, and This is the first joint annual report on Thursday, February 20, 2003 from 8:30 OTS (the agencies) have prepared this differences in accounting and capital a.m. to approximately 4 p.m. report pursuant to section 37(c) of the standards to be submitted pursuant to ADDRESSES: The meeting will be held at Federal Deposit Insurance Act (12 Section 37(c) of the Federal Deposit The Hotel Washington, 15th Street and U.S.C. 1831n(c)). Section 37(c) requires Insurance Act (12 U.S.C. 1831n(c)), as Pennsylvania Avenue, NW., the Agencies to jointly submit an annual amended. Prior to this report, each Washington, DC 20004. report to the Committee on Financial agency reported separately. FOR FURTHER INFORMATION CONTACT: Services of the House of Representatives Section 303 of the Riegle Community Roger Kodat, Designated Federal and to the Committee on Banking, Development and Regulatory Official, (202) 622–7073. Housing, and Urban Affairs of the Improvement Act of 1994 (12 U.S.C. SUPPLEMENTARY INFORMATION: At the Senate describing differences between 4803) in part directs the agencies to public meeting, the Commission will the accounting and capital standards work jointly to make uniform all examine some of the issues that help used by the agencies. The report must regulations and guidelines define the United States Postal Service’s be published in the Federal Register. implementing common statutory or business model. These issues include FOR FURTHER INFORMATION CONTACT: supervisory policies. The results of the Postal Service’s universal service OCC: Nancy Hunt, Risk Expert (202– these efforts must be ‘‘consistent with obligation, the price-regulation system, 874–4923), Office of the Comptroller of the principles of safety and soundness, and the Postal Service’s corporate the Currency, 250 E Street, SW., statutory law and policy, and the public governance structure. Witnesses will Washington, DC 20219. interest.’’ testify at the invitation of the Board: John Connolly, Supervisory Since the agencies filed their first Commission. Seating is limited to a Financial Analyst (202–452–3621), reports under this reporting requirement maximum of 300 on a first-come, first- Division of Banking Supervision and in 1991, the agencies have acted in served basis. Regulation, Board of Governors of the concert on numerous occasions to Federal Reserve System, 20th Street and modify their accounting and capital Dated: January 31, 2003. standards and to harmonize the four sets Roger Kodat, Constitution Avenue, NW., Washington, DC 20551. of standards so as to eliminate as many Designated Federal Official. FDIC: Robert F. Storch, Chief, differences as possible. In particular, the [FR Doc. 03–2708 Filed 2–4–03; 8:45 am] Accounting and Securities Disclosure agencies have revised their capital BILLING CODE 4811–16–P Section (202–898–8906), Division of standards to address changes in credit Supervision and Consumer Protection, and certain other risk exposures within Federal Deposit Insurance Corporation, the banking system, thereby rendering DEPARTMENT OF THE TREASURY 550 17th Street, NW., Washington, DC the amount of capital institutions are 20429. required to hold generally more Office of the Comptroller of the commensurate with the credit risk and Currency OTS: Michael D. Solomon, Senior Program Manager for Capital Policy certain other risks to which they are [Docket No. 03–03] (202–906–5654), Supervision Policy, exposed. Some of the few remaining Office of Thrift Supervision, 1700 G capital differences are statutorily BOARD OF GOVERNORS OF THE Street, NW., Washington, DC 20552. mandated. Some were significant FEDERAL RESERVE SYSTEM historically but now no longer affect in SUPPLEMENTARY INFORMATION: The text of a measurable way, either individually or the report follows: FEDERAL DEPOSIT INSURANCE in the aggregate, institutions supervised CORPORATION Report to the Committee on Financial by the Federal banking agencies. Services of the United States House of As a result, the Federal banking DEPARTMENT OF THE TREASURY Representatives and to the Committee agencies now have substantially similar on Banking, Housing, and Urban leverage and risk-based capital Office of Thrift Supervision Affairs of the United States Senate standards. These standards employ a Regarding Differences in Accounting common regulatory framework that [No. 2003–03] and Capital Standards Among the establishes minimum capital adequacy Joint Report: Differences in Federal Banking Agencies ratios for all banking organizations (banks, bank holding companies and Accounting Standards Among the Introduction Federal Banking and Thrift Agencies; savings associations). In 1989, all four Report to Congressional Committees The Office of the Comptroller of the agencies adopted risk-based capital Currency (OCC), the Board of Governors frameworks that were based upon the AGENCIES: Office of the Comptroller of of the Federal Reserve System (FRB), the international capital accord (the Basel the Currency (OCC), Treasury; Board of Federal Deposit Insurance Corporation Accord) developed by the Basel Governors of the Federal Reserve (FDIC), and the Office of Thrift Committee on Banking Regulations and System (Board); Federal Deposit Supervision (OTS) (the Federal banking Supervisory Practices (Basel

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Supervisors’ Committee) and endorsed deducted entirely from capital, or the deduction and deconsolidation by the central bank governors of the G– banking organization’s investment in requirements that apply to a national 10 countries. The agencies view the the entity may be assigned to the 100 bank if the State bank holds an interest risk-based capital and leverage percent risk-weight category. These in a subsidiary that engages as principal requirements as minimum standards, options for handling unconsolidated in activities that would only be and most institutions are expected to subsidiaries, joint ventures, and permissible for a national bank to operate with capital levels well above associated companies for purposes of conduct through a financial subsidiary. the minimums, particularly those determining the capital adequacy of the Under section 121(d) of GLBA (12 institutions that are expanding or parent banking organization provide the U.S.C. 1831w), a State bank that holds experiencing unusual or high levels of agencies with the flexibility necessary to an interest in any financial subsidiary— risk. ensure that institutions maintain capital whether conducting activities as a The OCC, the FRB, and the FDIC, levels that are commensurate with the principal or agent—must comply with actual risks involved. under the auspices of the Federal all of the same conditions that apply to Financial Institutions Examination Under the OTS’ capital regulations, a a national bank, including the capital Council (FFIEC), have developed statutorily mandated distinction is deduction and deconsolidation uniform Reports of Condition and drawn between subsidiaries (majority- requirement. The OCC, the FDIC, and Income (Call Reports) for all insured owned) engaged in activities that are the FRB adopted final rules commercial banks and FDIC-supervised permissible for national banks and savings banks. The OTS requires each subsidiaries engaged in ‘‘impermissible’’ implementing their respective OTS-supervised savings association to activities for national banks. Where provisions of section 121 of GLBA for file the Thrift Financial Report (TFR). subsidiaries engage in activities that are national banks in March 2000, for state The reporting standards for recognition impermissible for national banks, the nonmember banks in January 2001, and and measurement in the Call Report and OTS requires the deduction of the for state member banks in August 2001. the TFR are consistent with generally parent’s investment in these GLBA did not provide new authority to accepted accounting principles (GAAP). subsidiaries from the parent’s assets and OTS-regulated institutions to own, hold Thus, there are no significant capital. If a subsidiary’s activities are or operate financial subsidiaries, as differences in regulatory accounting permissible for a national bank, that defined. subsidiary’s assets are generally standards for regulatory reports filed Nonfinancial Equity Investments with the Federal banking agencies. Only consolidated with those of the parent on one minor difference remains between a line-for-line basis. If a subordinate Under final rules jointly published by the accounting standards of the OTS organization, other than a subsidiary, the OCC, the FRB, and the FDIC, on engages in impermissible activities, the and those of the other Federal banking January 25, 2002 (67 FR 3783), subject OTS will generally deduct investments agencies, and that difference relates to to certain exceptions, covered equity in and loans to such organization. If a push-down accounting, as more fully investments in nonfinancial companies explained below. subordinate organization, other than a subsidiary, engages solely in are subject to a Tier 1 capital charge (for Differences in Capital Standards Among permissible activities, the OTS may, both risk-based and leverage capital the Federal Banking Agencies depending upon the nature and risk of purposes) that increases in steps as the the activity, either assign investments in banking organization’s level of Subordinate Organizations Other Than concentration in equity investments Financial Subsidiaries and loans to such organizations to the 100 percent risk-weight category or increases. The GLBA authorizes Banks supervised by the OCC, the require full deduction of the financial holding companies, which are FRB, and the FDIC generally consolidate investments and loans. bank holding companies granted all significant majority-owned expanded investment and activity subsidiaries, including banking and Financial Subsidiaries authority by the GLBA, to acquire or finance subsidiaries, of the parent The Gramm-Leach-Bliley Act (GLBA) control shares, assets, or ownership banking organization for regulatory amends the National Banking Act to interests of any nonfinancial company capital purposes. This practice assures permit national banks to conduct certain as part of a bona fide underwriting, or that capital requirements are related to expanded financial activities through merchant or investment banking the risks to which the banking financial subsidiaries. Section 121(a) of activity. Banks and bank holding organization is exposed. When banking the GLBA (12 U.S.C. 24a) imposes a companies supervised by the OCC, the and finance subsidiaries are not number of conditions and requirements FDIC, or the FRB also have authority, consolidated for financial reporting upon national banks that have financial which predated GLBA, to make limited purposes under GAAP, the aggregate subsidiaries, including specifying the equity investments in nonfinancial amount of investments in such treatment that applies for regulatory companies under various other legal subsidiaries is deducted from a bank’s capital purposes. The statute requires authorities. total capital. that a national bank deduct from assets For other subsidiaries that are not and tangible equity the aggregate OTS-regulated holding companies consolidated on a line-for-line basis for amount of its equity investments in grandfathered by GLBA have no financial reporting purposes, joint financial subsidiaries. The statute statutory limits on their investments. ventures, and associated companies, the further requires that the financial Nongrandfathered holding companies parent banking organization’s subsidiary’s assets and liabilities not be may make equity investments in investment in each such entity may be consolidated with those of the parent nonfinancial companies of the type treated in any of three ways for risk- national bank for applicable capital authorized for financial holding based capital purposes, depending upon purposes. companies (e.g., bona fide underwriting the circumstances: the entity’s balance GLBA also amends the Federal or merchant or investment banking sheet may be consolidated on a pro-rata Deposit Insurance Act to provide that an activity). The OTS does not prescribe basis, the banking organization’s insured State bank is, among other specific capital regulations for OTS- investment in the entity may be limitations, subject to the capital regulated holding companies.

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Collateralized Transactions or eliminate dividends and the stock certificates, and income capital The FRB and the OCC assign a zero would not qualify as noncumulative. If certificates complying with applicable percent risk weight to certain claims an OTS-supervised savings association OTS regulations in savings associations’ collateralized by cash on deposit in the issues perpetual preferred stock that Tier 2 capital. The OCC, the FRB, and institution or by securities issued or requires the payment of dividends in the FDIC do not expressly address these guaranteed by the U.S. government, U.S. the form of stock when cash dividends instruments in their regulatory capital government agencies, or the central are not paid, the stock may, subject to standards, and they generally are not supervisory approval, qualify as governments of other countries that are recognized as Tier 1 or Tier 2 capital noncumulative. members of the Organization of components. Economic Cooperation and Equity Securities of Government- Servicing Assets and Intangible Assets Development (OECD). To qualify for the Sponsored Enterprises zero percent risk weight, the OCC and The Federal banking agencies’ capital The FRB, the FDIC, and the OTS rules permit servicing assets and the FRB rules require the collateral to be apply a 100 percent risk weight to marked-to-market daily and a positive purchased credit card relationships to equity securities of government- be included in assets (i.e., not be margin of collateral protection to be sponsored enterprises (GSEs), other than maintained daily. The FRB requires deducted), subject to certain limits. The the 20 percent risk weighting of Federal aggregate regulatory capital limit on qualifying claims to be fully Home Loan Bank stock held by banking collateralized, while the OCC rule these two categories of assets is 100 organizations as a condition of percent of Tier 1 capital. However, permits partial collateralization. membership. The OCC applies a 20 The FDIC and the OTS assign a 20 within this overall limit, nonmortgage percent risk weight to all GSE equity servicing assets are combined with percent risk weight to claims securities. This difference arises because collateralized by cash on deposit in the purchased credit card relationships and the OCC’s risk-based capital standards this combined amount is limited to no institution or by securities issued or specify that ‘‘securities’’ of GSEs, which guaranteed by the U.S. government, U.S. more than 25 percent of an institution’s includes both debt and equity securities, Tier 1 capital. Before applying these government agencies, or other OECD qualify for the 20 percent risk weight. In central governments. Tier 1 capital limits, mortgage servicing contrast, the risk-based capital assets, nonmortgage servicing assets, In a final interagency rule assigning a standards of the FRB, the FDIC, and the 20 percent risk weight to certain claims and purchased credit card relationships OTS apply a 20 percent risk weight only are each valued at the lesser of 90 on qualifying securities firms, which to debt claims on these companies. was published in the Federal Register percent of their fair value or 100 percent on April 9, 2002, (67 FR 16971), the Limitation on Subordinated Debt and of their book value (net of any valuation FDIC and the OTS conformed their rules Limited-Life Preferred Stock allowances). to assign a zero percent risk weight to The OCC, the FRB, and the FDIC limit A recent statutory change permits the certain collateralized claims on the amount of subordinated debt and agencies to eliminate this 10 percent fair qualifying securities firms that are intermediate-term preferred stock that value discount from their capital marked to market daily and have a may be treated as part of Tier 2 capital standards if the agencies determine that positive margin of collateral. The rule to 50 percent of Tier 1 capital. The OTS such assets can be valued at 100 percent became effective July 1, 2002. The does not prescribe such a limit. In of their book value consistent with actions taken by the FDIC and the OTS addition, for banking organizations safety and soundness. The agencies are in adopting the April 9, 2002, rule for supervised by the OCC, the FRB, and considering how best to make such a claims on qualifying securities firms the FDIC, these maturing instruments determination. Any servicing assets and eliminates a portion of the capital must be discounted by 20 percent in purchased credit card relationships that difference regarding collateralized each of the last five years before exceed the relevant limits, as well as all transactions between these agencies and maturity. The OTS provides thrifts the other intangible assets such as goodwill the OCC and the FRB. option of using either the discounting and core deposit intangibles, are approach used by the other Federal deducted from capital and assets in Noncumulative Perpetual Preferred calculating an institution’s Tier 1 Stock banking agencies, or an approach which, during the last seven years of the capital. Under the Federal banking agencies’ maturing instrument’s life, allows for Although the Federal banking capital standards, noncumulative the full inclusion of all such agencies’ regulatory capital treatment of perpetual preferred stock is a instruments, provided that the amount servicing assets and intangible assets is component of Tier 1 capital. The capital maturing in any one year does not fundamentally the same, the OTS’ standards of the OCC, the FRB, and the exceed 20 percent of the thrift’s total capital rules contain one difference that, FDIC require noncumulative perpetual capital. with the passage of time, continues to preferred stock to give the issuer the lose significance. Under its rules, the option to waive the payment of Pledged Deposits, Nonwithdrawable OTS has grandfathered, i.e., does not dividends and to provide that waived Accounts, and Certain Certificates deduct from regulatory capital, core dividends neither accumulate to future The OTS capital regulations permit deposit intangibles acquired before periods nor represent a contingent claim mutual savings associations to include February 1994 up to 25 percent of Tier on the issuer. in Tier 1 capital pledged deposits and 1 capital. The practical effect of these nonwithdrawable accounts to the extent Covered Assets requirements is that if a bank supervised that such accounts or deposits have no by the OCC, the FRB, or the FDIC issues fixed maturity date, cannot be The OCC, the FRB, and the FDIC perpetual preferred stock and is withdrawn at the option of the generally place assets subject to required to pay dividends in a form accountholder, and do not earn interest guarantee arrangements by the FDIC or other than cash—e.g., stock—when cash that carries over to subsequent periods. the former Federal Savings and Loan dividends are not or cannot be paid, the The OTS also permits the inclusion of Insurance Corporation in the 20 percent bank does not have the option to waive net worth certificates, mutual capital risk weight category. The OTS places

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these ‘‘covered assets’’ in the zero separate corporate existence, the assets FOR FURTHER INFORMATION CONTACT: percent risk-weight category. and liabilities of the acquired institution Technical and licensing information on are restated to their fair values as of the the invention may be obtained by Tangible Capital Requirement acquisition date. These values, writing to: Mindy Aisen, MD, Savings associations supervised by including any goodwill, are reflected in Department of Veterans Affairs, Director the OTS, by statute, must satisfy a 1.5 the separate financial statements of the Technology Transfer Program, Research percent minimum tangible capital acquired institution, as well as in any and Development Office, 810 Vermont requirement. However, subsequent consolidated financial statements of the Avenue NW., Washington, DC 20420; statutory and regulatory changes have institution’s parent. fax: 202–275–7228; e-mail at imposed higher capital standards on The OCC, the FRB, and the FDIC [email protected]. Any request savings associations, rendering it require the use of push-down for information should include the unlikely, if not impossible, for the 1.5 accounting for regulatory reporting Number and Title for the relevant percent tangible capital requirement to purposes when there is a 95 percent or invention as indicated below. Issued function as a meaningful regulatory greater change in ownership. This patents may be obtained from the trigger. This statutory tangible capital approach is generally consistent with Commissioner of Patents, U.S. Patent requirement does not apply to accounting interpretations issued by the and Trademark Office, Washington, DC institutions supervised by the OCC, the staff of the Securities and Exchange 20231. FRB, or the FDIC. Commission. The OTS requires the use of push-down accounting when there is SUPPLEMENTARY INFORMATION: The Interest Rate Risk a 90 percent or greater change in invention available for licensing is: The OCC, the FRB, and the FDIC ownership. PCT/US02/11088 ‘‘Methods for specifically include in their evaluation Modeling Infectious Disease and Dated: January 29, 2003. Chemosensitivity in Cultured Cells and of capital adequacy an assessment of a John D. Hawke, Jr., banking organization’s interest rate risk, Tissues’’ Comptroller of the Currency. as measured by its exposure to declines Dated: January 28, 2003. in the economic value of its capital due Dated: January 28, 2003. Anthony J. Principi, to changes in interest rates. In addition, By order of the Board of Governors of the Secretary, Department of Veterans Affairs. Federal Reserve System. these three agencies have provided [FR Doc. 03–2664 Filed 2–4–03; 8:45 am] guidance on sound practices for Jennifer J. Johnson, BILLING CODE 8320–01–P managing interest rate risk and on the Secretary of the Board. standards that they use to evaluate the adequacy and effectiveness of a banking Dated in Washington, DC this 29th day of January, 2003. DEPARTMENT OF VETERANS organization’s interest rate risk Federal Deposit Insurance Corporation. AFFAIRS management. Robert E. Feldman, Historically, the OTS employed an Capital Asset Realignment for explicit interest rate risk component in Executive Secretary. Enhanced Services (CARES) its capital rule, as distinct from the Dated: January 24, 2003. Commission Meeting other banking agencies. In 2002 the OTS By the Office of Thrift Supervision. eliminated this explicit requirement James E. Gilleran, The Department of Veterans Affairs from its standards in light of other Director. (VA) gives notice under Public Law 92– supervisory tools that are currently [FR Doc. 03–2780 Filed 2–4–03; 8:45 am] 463 (Federal Advisory Committee Act) available to measure and control interest that the Capital Asset Realignment for BILLING CODE 4810–33, 6210–01, 6714–01 and 6720–01– rate risk. The OTS, like the other P Enhanced Services (CARES) banking agencies, has provided written Commission will meet on Wednesday, guidance on sound practices for February 19, 2003, from 8:30 a.m. to 5 managing interest rate risk, and directs DEPARTMENT OF VETERANS p.m. and Thursday, February 20, 2003, examiners to take into account interest AFFAIRS from 8:30 a.m. to 5 p.m. The meeting rate risk when assessing capital will be held at the Jefferson Hotel in the adequacy. The OTS’ final rule brought Research and Development Office; Monticello Room, 1200 16th Street, its regulatory capital treatment of Government Owned Invention NW., Washington, DC. The meeting is interest rate risk into line with the Available for Licensing open to the public. approach followed by the other Federal The purpose of the Commission is to banking agencies, thereby formally AGENCY: Research and Development Office, VA. conduct an external assessment of VA’s eliminating a capital difference between capital asset needs and to assure that the OTS and the other agencies. ACTION: Notice of government owned invention available for licensing. stakeholder and beneficiary concerns Differences in Accounting Standards are fully addressed. The Commission Among the Federal Banking and Thrift SUMMARY: The invention listed below is will consider recommendations Agencies owned by the U.S. Government as prepared by VA’s Under Secretary for represented by the Department of Health, veterans service organizations, Push-Down Accounting Veterans Affairs, and is available for individual veterans, Congress, medical Push-down accounting is the licensing in accordance with 35 U.S.C. school affiliates, VA employees, local establishment of a new accounting basis 207 and 37 CFR part 404 to achieve government entities, community groups for a depository institution in its expeditious commercialization of and others. Following its assessment, separate financial statements as a result results of federally funded research and the Commission will make specific of a substantive change in control. development. Foreign patents are filed recommendations to the Secretary of Under push-down accounting, when a on selected inventions to extend market Veterans Affairs regarding the depository institution is purchased by coverage for U.S. companies and may realignment and allocation of capital another organization yet retains its also be available for licensing. assets necessary to meet the demands

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for veterans health care services over the and hearings. Also, the Commission additional information should contact next 20 years. members will receive an ethics briefing. Mr. Richard E. Larson at (202) 273– This is the initial meeting of the Interested persons may either attend 4800. Commission. On February 19, the or file statements with the Commission. agenda topics for this meeting will Written statements may be filed either Dated: January 30, 2003. include background briefings on the before the meeting or within 10 days By Direction of the Secretary. CARES and an overview of the nine-step after the meeting and addressed to: Nora E. Egan, CARES process. On February 20, the Department of Veterans Affairs, CARES Committee Management Officer. Commission will discuss operating Commission, 810 Vermont Avenue, [FR Doc. 03–2665 Filed 2–4–03; 8:45 am] rules, future meeting topics and NW., Washington, DC 20420. Any BILLING CODE 8320–01–M schedules, subcommittee assignments, member of the public wishing

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Part II

Securities and Exchange Commission 17 CFR Parts 228, 229 and 249 Disclosure in Management’s Discussion and Analysis About Off-Balance Sheet Arrangements and Aggregate Contractual Obligations; Final Rule

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SECURITIES AND EXCHANGE SUPPLEMENTARY INFORMATION: We are contingent obligations), and other COMMISSION adopting amendments to Item 303 1 of relationships of the issuer with Regulation S–K,2 Item 303 3 of unconsolidated entities or other 17 CFR Parts 228, 229 and 249 Regulation S–B,4 Item 5 of Form 20–F 5 persons, that may have a material [Release Nos. 33–8182; 34–47264; FR–67 and General Instruction B of Form 40– current or future effect on financial International Series Release No. 1266 File F 6 under the Securities Exchange Act of condition, changes in financial No. S7–42–02] 1934.7 condition, results of operations, liquidity, capital expenditures, capital Table of Contents RIN 3235–AI70 resources, or significant components of I. Background 10 Disclosure in Management’s revenues or expenses.’’ In November II. Overview of Proposals, Comments and 2002, we published for comment a Discussion and Analysis About Off- amendments Balance Sheet Arrangements and A. Proposing Release proposed rulemaking to implement 11 Aggregate Contractual Obligations B. Overview of Comments and Section 401(a) and to codify Amendments interpretive guidance set forth in our AGENCY: Securities and Exchange 1. Proposed Definition of ‘‘Off-Balance January 2002 Commission Statement.12 Commission. Sheet Arrangements’’ The Commission has long recognized ACTION: Final rule. 2. Proposed Disclosure Threshold the need for a narrative explanation of 3. Proposed Disclosure Requirements financial statements and accompanying SUMMARY: As directed by new section 4. Proposed Tabular and Textual footnotes and has developed MD&A 13(j) of the Securities Exchange Act of Disclosure over the years to fulfill this need.13 The 1934, added by section 401(a) of the III. Discussion of Amendments disclosure in MD&A is of paramount Sarbanes-Oxley Act of 2002, we are A. Definition of ‘‘Off-Balance Sheet Arrangements’’ importance in increasing the adopting amendments to our rules to 1. Guarantees transparency of a company’s financial require disclosure of off-balance sheet 2. Retained or Contingent Interests performance and providing investors arrangements. The amendments require 3. Certain Derivative Instruments with the disclosure necessary to a registrant to provide an explanation of 4. Variable Interests evaluate a company and to make its off-balance sheet arrangements in a B. Disclosure Threshold informed investment decisions. MD&A separately captioned subsection of the C. Disclosure about Off-Balance Sheet also provides a unique opportunity for ‘‘Management’s Discussion and Arrangements management to provide investors with Analysis’’ (‘‘MD&A’’) section of a D. Tabular Disclosure of Contractual Obligations an understanding of its view of the registrant’s disclosure documents. The E. Presentation of Disclosure financial performance and condition of amendments also require registrants 1. Separate Disclosure Sections the company, an appreciation of what (other than small business issuers) to 2. Language and Format the financial statements show and do provide an overview of certain known 3. Cross-Referencing to the Financial not show, as well as important trends contractual obligations in a tabular Statements and risks that have shaped the past or format. F. Effect of Amendments on Commission are reasonably likely to shape the future. Statement The MD&A rules already require DATES: Effective Date: April 7, 2003. G. Application to Foreign Private Issuers Compliance Date: Registrants must disclosure regarding off-balance sheet H. Safe Harbor for Forward-Looking arrangements and other contingencies. comply with the off-balance sheet Information arrangement disclosure requirements in IV. Paperwork Reduction Act They are designed to cover a wide range registration statements, annual reports V. Cost-Benefit Analysis of corporate events, including events, and proxy or information statements VI. Effects on Efficiency, Competition and variables and uncertainties not that are required to include financial Capital Formation otherwise required to be disclosed statements for their fiscal years ending VII. Final Regulatory Flexibility Analysis under U.S. generally accepted VIII. Statutory Authority and Text of Rule accounting principles (‘‘GAAP’’).14 For on or after June 15, 2003. Registrants Amendments (other than small business issuers) must I. Background 10 Pub. L. 107–204 Sec. 401(a). include the table of contractual 11 See Release No. 33–8144 (Nov. 4, 2002) [67 FR obligations in registration statements, On July 30, 2002, the Sarbanes-Oxley 68054] (the ‘‘Proposing Release’’). annual reports, and proxy or Act of 2002 was enacted.8 section 401(a) 12 See Release No. 33–8056, FR–61 (Jan. 22, 2002) information statements that are required of the Sarbanes-Oxley Act added section [67 FR 3746] (the ‘‘Commission Statement’’). That to include financial statements for the statement was issued in response to a petition from 13(j) to the Securities Exchange Act of Arthur Andersen LLP, Deloitte and Touche LLP, fiscal years ending on or after December 1934,9 which requires the Commission Ernst & Young LLP, KPMG LLP, and 15, 2003. Registrants may voluntarily to adopt final rules by January 26, 2003 PricewaterhouseCoopers LLP, with the comply with the new disclosure (180 days after the date of enactment) to endorsement of the American Institute of Certified Public Accountants, for an interpretive release to requirements before the compliance require each annual and quarterly facilitate enhanced MD&A disclosures. See dates. financial report required to be filed with Rulemaking Petition No. 4–450 (Dec. 31, 2001). FOR FURTHER INFORMATION CONTACT: the Commission, to disclose ‘‘all 13 See, e.g., Release No. 33–5443 (Dec. 12, 1973) Questions about this release should be material off-balance sheet transactions, [39 FR 829]. 14 In In the Matter of Caterpillar Inc., Release No. referred to Andrew Thorpe, Special arrangements, obligations (including 34–30532 (March 31, 1992), the Commission found Counsel, Division of Corporation that Caterpillar had violated section 13(a) of the Finance ((202) 942–2910), Jenifer 1 17 CFR 229.303. Exchange Act [15 U.S.C. 78m(a)] by failing to have Minke-Girard, Associate Chief 2 17 CFR 229.10 et seq. disclosed the magnitude of its Brazilian subsidiary’s 3 contribution to Caterpillar’s overall earnings. Accountant, or Eric Schuppenhauer, 17 CFR 228.303. 4 17 CFR 228.10 et seq. Disclosure of the extent of that contribution was required under the MD&A disclosure requirements, Professional Accounting Fellow, Office 5 17 CFR 249.220f. even though disclosure was not required under of the Chief Accountant ((202) 942– 6 17 CFR 249.240f. GAAP, because the subsidiary’s earnings materially 4400), Securities and Exchange 7 15 U.S.C. § 78a et seq. affected Caterpillar’s reported income from Commission, 450 Fifth Street, NW., 8 Pub. L. 107–204, 116 Stat. 745 (2002). continuing operations. See Item 303(a)(3)(i) of Washington, DC 20549. 9 15 U.S.C. 78m(j). Regulation S–K [17 CFR 229.303(a)(3)(i)].

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example, the current MD&A rules • Matters that will have an impact on arrangement, has, or in the future may require disclosure of: future operations and have not had an have: 23 • • Information necessary to an impact in the past; and Any obligation under a direct or • understanding of the registrant’s Matters that have had an impact on indirect guarantee or similar financial condition, changes in financial reported operations and are not arrangement; • condition and results of operations;15 expected to have an impact upon future A retained or contingent interest in operations.24 assets transferred to an unconsolidated • Any known trends, demands, entity or similar arrangement; commitments, events or uncertainties Accordingly, while only one item in our • Derivatives, to the extent that the that will result in, or that are reasonably current MD&A rules specifically fair value thereof is not fully reflected likely to result in, the registrant’s identifies off-balance sheet 25 as a liability or asset in the financial liquidity increasing or decreasing in any arrangements, the other items clearly statements; or material way;16 require disclosure of off-balance sheet • Any obligation or liability, • arrangements if necessary to an The registrant’s internal and understanding of a registrant’s financial including a contingent obligation or external sources of liquidity, and any condition, changes in financial liability, to the extent that it is not fully material unused sources of liquid condition or results of operations. As reflected in the financial statements 17 assets; discussed below, the amendments (excluding the footnotes thereto). • The registrant’s material clarify disclosures that registrants must Because the Sarbanes-Oxley Act refers commitments for capital expenditures make with regard to off-balance sheet to off-balance sheet arrangements that as of the end of the latest fiscal period;18 arrangements, require registrants to set ‘‘may’’ have a material future effect on • Any known material trends, apart disclosure relating to off-balance the registrant, the proposed rules favorable or unfavorable, in the sheet arrangements in a designated included a threshold for determining registrant’s capital resources, including section of MD&A and (except in the case which off-balance sheet arrangements any expected material changes in the of small business issuers) require would have such an effect. In particular, mix and relative cost of capital tabular disclosure of aggregate the proposals would have required resources, considering changes between contractual obligations.26 disclosure where the likelihood of either the occurrence of a future event debt, equity and any off-balance sheet II. Overview of Proposals, Comments 19 implicating an off-balance sheet financing arrangements. and Amendments • Any unusual or infrequent events or arrangement, or its material effect, was transactions or any significant economic A. Proposing Release higher than remote. The proposed disclosure threshold departed from the changes that materially affected the In November 2002, we published for existing MD&A threshold, under which amount of reported income from comment proposals to require a company must disclose information continuing operations and, in each case, disclosure of a registrant’s off-balance that is ‘‘reasonably likely’’ to have a the extent to which income was so sheet arrangements in its MD&A.27 To material effect on financial condition, affected.20 address the scope of the disclosure changes in financial condition or results • contemplated by the Sarbanes-Oxley Significant components of revenues of operations.28 Act, the proposals included a definition or expenses that should, in the The proposals contained specific company’s judgment, be described in of the term ‘‘off-balance sheet arrangement’’ that covered a wide items designed to elicit comprehensive order to understand the registrant’s information about a registrant’s off- results of operations;21 variety of arrangements. The proposed rules defined the term ‘‘off-balance balance sheet arrangements that would • Known trends or uncertainties that sheet arrangement’’ as any transaction, provide investors with a clear have had, or that the registrant agreement or other contractual understanding of the registrant’s reasonably expects will have, a material arrangement to which an entity that is business activities, financial favorable or unfavorable impact on net not consolidated with the registrant is a arrangements and financial statements. sales or revenues or income from party, under which the registrant, To filter out disclosure of insignificant continuing operations.22 whether or not a party to the details, the proposals would have required disclosure of enumerated items Furthermore, Caterpillar’s MD&A should have 23 See Instruction 3(A) to Item 303(a) of only ‘‘to the extent necessary to an discussed various factors which contributed to the Regulation S–K [17 CFR 229.303(a)]. understanding of the registrant’s off- subsidiary’s earnings, such as currency translation 24 gains, export subsidies, interest income, and See Instruction 3(B) to Item 303(a) of balance sheet arrangements and their Brazilian tax loss carry-forwards, because such Regulation S–K [17 CFR 229.303(a)]. effect on financial condition, changes in items were significant components of its revenues 25 See Item 303(a)(2)(ii) of Regulation S–K [17 financial condition and results of that should have been identified and addressed in CFR 229.303(a)(2)(ii)]. operations.’’ The proposals would have 26 The Sarbanes-Oxley Act exempts from section order for a reader of the company’s financial required a registrant to disclose: statements to understand Caterpillar’s results of 401 investment companies registered under section • operations. Id. 8 of the Investment Company Act of 1940 (15 U.S.C. The nature and business purpose of 15 See Item 303(a) of Regulation S–K [17 CFR 80a–8). See Pub. L. 107–204 Sec. 405 [15 U.S.C. the registrant’s off-balance sheet 229.303(a)]. 7263]. Therefore, registered investment companies arrangements; are excluded from the scope of the amendments. 16 See Item 303(a)(1) of Regulation S–K [17 CFR • The significant terms and 229.303(a)(1)]. The amendments apply, however, to business development companies. Business development conditions of the arrangements; 17 Id. companies are defined in section 2(a)(48) of the • 18 See Item 303(a)(2)(i) of Regulation S–K [17 CFR The nature and amount of the total Investment Company Act of 1940. See 15 U.S.C. assets and of the total obligations and 229.303(a)(2)(i)]. 80a–2(a)(48). Business development companies are 19 See Item 303(a)(2)(ii) of Regulation S–K [17 a category of closed-end investment companies that liabilities of an unconsolidated entity CFR 229.303(a)(2)(ii)]. are not required to register under the Investment 20 See Item 303(a)(3)(i) of Regulation S–K [17 CFR Company Act, but file Forms 10–K and 10–Q, and 28 In a January 2002 Commission Statement, we 229.303(a)(3)(i)]. also include MD&A in their annual reports to indicated our view that ‘‘reasonably likely’’ is a 21 Id. shareholders. lower disclosure threshold than ‘‘more likely than 22 See Item 303(a)(3)(iii) of Regulation S–K [17 27 See Release No. 33–8144 (Nov. 4, 2002) [67 FR not.’’ See Release No. 33–8056, FR–61 (Jan. 22, CFR 229.303(a)(3)(iii)]. 68054]. 2002) [67 FR 3746] (the ‘‘Commission Statement’’).

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that conducts off-balance sheet Generally, the major issues raised by the used as a financing, liquidity or risk- activities; responses fell into four categories: (1) sharing technique.34 Six commenters • The amounts of revenues, expenses The scope of the proposed definition of either were confused by, or opposed to, and cash flows, the nature and amount ‘‘off-balance sheet arrangements;’’ (2) our proposal to include obligations or of any retained interests, securities the proposed disclosure threshold; (3) liabilities ‘‘not fully reflected in the issued or other indebtedness incurred, the proposed disclosure requirements financial statements.’’35 Finally, eight or any other obligations or liabilities for off-balance sheet arrangements; and commenters recommended that we (including contingent obligations or (4) the scope of the proposed disclosure should reconcile apparent discrepancies liabilities) of the registrant arising from of contractual obligations and between the elements of the proposed the arrangements that are, or may contingent liabilities and commitments. definition and the corollary accounting become, material and the circumstances The commentary provided useful concepts embodied in GAAP.36 under which they could arise; perspective on the practical issues that At the commenters’ suggestion, we are • Management’s analysis of the registrants would face in applying the adopting a revised definition of ‘‘off- material effects of the above items, proposed rules. balance sheet arrangement’’ to clarify its including an analysis of the degree to scope. We agree that certain 1. Proposed Definition of ‘‘Off-Balance modifications of the proposed definition which the registrant relies on off- Sheet Arrangements’’ balance sheet arrangements for its are necessary to eliminate disclosure of liquidity and capital resources or market While some commenters expressed routine arrangements that could obscure risk or credit risk support or other general support for the proposed more meaningful information. benefits; and definition of ‘‘off-balance sheet Accordingly, we have revised the • A reasonably likely termination or arrangements,’’ 30 the majority definition to incorporate concepts from material reduction in the benefits of an expressed the view that the definition U.S. GAAP.37 We believe that the off-balance sheet arrangement and any was too broad and in need of further inclusion of references in the definition material effects. clarification.31 In particular, several to U.S. GAAP help narrow the scope of We also proposed to require commenters believed that the proposed arrangements that require more registrants to provide tabular disclosure definition included routine transactions transparent disclosure under the of contractual obligations and either that would not typically be considered amendments. The same types of off- tabular or textual disclosure of to be ‘‘off-balance sheet arrangements’’ balance sheet arrangements covered by contingent liabilities and commitments. (e.g., executory contracts, employment the definition must be discussed in the With regard to the proposed table of agreements, consulting agreements, MD&A regardless of the particular contractual obligations, the proposed leases, licenses, royalty contracts, GAAP under which a registrant presents disclosure included amounts of a minimum purchase commitments, its primary financial statements. We are registrant’s known contractual guarantees under customer contracts, not imposing U.S. GAAP on foreign obligations, aggregated by type of and employee pension plan and private issuers with respect to the 32 obligation and by time period in which postretirement benefit arrangements). preparation of their primary financial payments are due. The proposed Eight commenters suggested that the statements. definition should focus on the types of disclosure of contingent liabilities and 2. Proposed Disclosure Threshold commitments required registrants to unconsolidated entities that are disclose, either in text or in tabular typically used to conduct off-balance The proposed rules would have format, the expected amount, range of sheet activities, such as structured required disclosure of off-balance sheet amounts or maximum amount of finance entities or special purpose arrangements that ‘‘may have a material 33 contingent liabilities and commitments, entities (‘‘SPEs’’). One commenter current or future effect.’’ The proposed aggregated by type and by time period suggested that the definition should rules stated that disclosure of an of the expiration of the commitment. focus on off-balance sheet arrangements arrangement was not necessary ‘‘if the likelihood of either the occurrence of an B. Overview of Comments and Association (‘‘NYBA’’); Organization for event implicating an off-balance sheet Amendments International Investment (‘‘OFII’’); Rose Foundation arrangement, or the materiality of its for Communities & Environment (‘‘Rose’’); We received responses to our Securities Industry Association (‘‘SIA’’). effect, is remote.’’ We indicated that the proposals from 48 commenters.29 Corporations: Boeing Company (‘‘Boeing’’); Centex proposed threshold of disclosure would Corporation; (‘‘Centex’’); Compass Bancshares, Inc. have been lower than the current MD&A (‘‘Compass’’); Computer Sciences Corporation 29 The commenters are as follows: Accounting standard of ‘‘reasonably likely to have a (‘‘CSC’’); Constellation Energy Group (‘‘CEG’’); Firms: BDO Seidman LLP (‘‘BDO’’); Deloitte & Eaton Corporation (‘‘Eaton’’); Eli Lilly and Company material effect.’’ We requested Touche LLP (‘‘D&T’’); Ernst & Young LLP (‘‘E&Y’’); (‘‘Lilly’’); Emerson Electric Corporation commentary on whether the proposed KPMG LLP (‘‘KPMG’’); PricewaterhouseCoopers (‘‘Emerson’’); First Tennessee National Corporation LLP (‘‘PwC’’). Law Firms: Cleary, Gottlieb, Steen & threshold was consistent under section (‘‘FTNC’’); Ford Motor Company (‘‘Ford’’); IMC Hamilton (‘‘Cleary’’); Fried, Frank, Harris, Shriver & 401(a) or whether a ‘‘reasonably likely’’ Global Inc. (‘‘IMC’’); Intel Corporation (‘‘Intel’’); Jacobson (‘‘Fried Frank’’); Sullivan & Cromwell Kellogg Company (‘‘Kellogg’’); Pfizer Inc. (‘‘Pfizer’’). threshold was appropriate. Most (‘‘S&C’’); Troutman Sanders LLP (‘‘Troutman’’). Individuals: Barbara Barry (‘‘Barry’’); Robert Beard, commenters suggested that the final rule Associations: American Bar Association (‘‘ABA’’); C.P.A. (‘‘Beard’’); Kevin Bronner, Ph.D. (‘‘Bronner’’); American Institute of Certified Public Accountants should incorporate the ‘‘reasonably Dave Henseler (‘‘Henseler’’); Timothy O’Keefe (‘‘AICPA’’); American Society of Corporate likely’’ disclosure threshold that is (‘‘O’Keefe’’); Ralph Saul (‘‘Saul’’). Governmental Secretaries (‘‘ASCS’’); America’s Community 38 Bodies: European Commission (‘‘EC’’). currently found in MD&A rules, while Bankers (‘‘ACB’’); Association for Financial 30 Professionals (‘‘AFP’’); Association of the Bar of the See, e.g., the letters of Compass, Emerson, Fried 34 See the letter of ABA. City of New York (‘‘NY City Bar’’); Edison Electric Frank, ICAA, IMC and PwC. 35 Institute (‘‘EEI’’); Financial Executives International 31 See, e.g., the letters of ABA, ACB, AICPA, See, e.g., the letters of BDO, Compass, D&T, (‘‘FEI’’); Interfaith Council on Corporate Boeing, CEG, CSC, D&T, Eaton, EEI, E&Y, FTNC, FTNC, Intel and S&C. Accountability (‘‘CANICCOR’’); Investment Kellogg, KPMG, Pfizer and S&C. 36 See, e.g., the letters of ACB, AICPA, Boeing, Company Institute (‘‘ICI’’); Investment Counsel 32 See, e.g., the letters of ABA, ACB, AICPA, CEG, CEG, D&T, EEI, E&Y and Pfizer. Association of America (‘‘ICAA’’); National Centex, CSC, D&T, Eaton, EEI, E&Y, Kellogg, KPMG, 37 See Discussion in Section III.A. Association of Real Estate Investment Trusts NY City Bar and PwC. 38 See, e.g., the letters of ABA, ACB, AICPA, (‘‘NAREIT’’); New York County Lawyer’s 33 See, e.g., the letters of ABA, ACB, Centex, CSC, ASCS, Boeing, CEG, Cleary, Compass, CSC, D&T, Association (‘‘NYCLA’’); New York State Bar D&T, E&Y, KPMG and NY City Bar. Eaton, EEI, E&Y, Fried Frank, ICAA, IMC, Intel,

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three commenters supported the ‘‘may.’’ After considering the comments, principle throughout the amendments is disclosure threshold as proposed.39 In we conclude that the ‘‘reasonably that the registrant should disclose addition, many commenters stated that likely’’ standard focuses on the information to the extent that it is the ‘‘reasonably likely’’ threshold is an information most important to an necessary to an understanding of a appropriate interpretation of the understanding of a registrant’s off- registrant’s material off-balance sheet Sarbanes-Oxley Act.40 Many balance sheet arrangements and their arrangements and their material effects commenters opposed the proposed material effects on the registrant’s on financial condition, changes in threshold because they thought that it financial condition, changes in financial financial condition, revenues or would: be difficult for management to condition, revenues or expenses, results expenses, results of operations, apply; yield voluminous disclosures; of operations, liquidity, capital liquidity, capital expenditures or capital attribute undue prominence to expenditures or capital resources. In resources. Consistent with traditional information that is not important to addition, we are mindful of the MD&A disclosure, management has the investors; confuse or mislead investors; potential difficulty that registrants responsibility to identify and address and elicit information that would not be would have faced in attempting to the key variables and other qualitative comparable among firms.41 Some comply with the ‘‘remote’’ disclosure and quantitative factors that are peculiar commenters indicated that the threshold set forth in the Proposing to, and necessary for, an understanding ‘‘reasonably likely’’ threshold is Release. We also believe that our use of and evaluation of the company.53 The preferable because it would provide a consistent disclosure threshold amendments contain the following four investors with the information that throughout MD&A will preclude the specific items to bolster the principles- management considers important, as potential confusion that could result based approach. These items require opposed to more speculative from disparate thresholds. disclosure of the following information information that registrants would to the extent necessary for an 42 3. Proposed Disclosure Requirements disclose under a lower threshold. understanding of a registrant’s off- Several commenters believed that it While some commenters supported balance sheet arrangements and their would be preferable to have consistency the proposed disclosure requirements,46 effects: throughout MD&A by adopting the others believed the proposals to be • The nature and business purpose of 43 ‘‘reasonably likely’’ standard. overly prescriptive and detail- the registrant’s off-balance sheet After considering the comments, we oriented.47 Eight commenters stated that arrangements; 54 are adopting the ‘‘reasonably likely’’ the proposed disclosure would be • The importance of the off-balance disclosure threshold that we currently voluminous, would not be useful or sheet arrangements to the registrant for apply to other portions of MD&A 48 would be confusing to investors. liquidity, capital resources, market risk disclosure.44 We believe that the Three commenters expressed concerns or credit risk support or other ‘‘reasonably likely’’ threshold best about the sensitivity and potential 55 promotes the utility of the disclosure benefits; competitive harm of the required • The financial impact of the requirements by reducing the possibility 49 disclosures. In addition, seven arrangements on the registrant (e.g., that investors will be overwhelmed by commenters suggested that we should voluminous disclosure of insignificant revenues, expenses, cash flows or adopt a more flexible, principles-based securities issued) and the registrant’s and possibly unnecessarily speculative approach to the MD&A disclosures.50 45 exposure to risk as a result of the information. We have found no Another area of concern was whether express reference in the legislative arrangements (e.g., retained interests or it is feasible to expect a registrant to be 56 history conclusively demonstrating contingent liabilities); and able to obtain information about the • Known events, demands, Congress’ intent in using the word activities of unconsolidated entities over 51 commitments, trends or uncertainties which it may not have control. For that affect the availability or benefits to KPMG, Lilly, NAREIT, NYBA, NY City Bar, Pfizer, example, some commenters believed PwC and S&C. the registrant of material off-balance 39 See, e.g., the letters of Beard, CANICCOR and that companies might be unable to sheet arrangements.57 obtain, monitor or evaluate certain IMC. In addition, the amendments contain 40 See, e.g., the letters of ABA, ACB, AICPA, CEG, information about unconsolidated another principles-based requirement, Cleary, Compass, CSC, D&T, EEI, E&Y, Fried Frank, entities that conduct off-balance sheet similar to that used elsewhere in MD&A, Lilly, NYBA, NY City Bar, Pfizer, PwC and S&C. activities (e.g., certain multi-party 41 See, e.g., the letters of ACB, AICPA, ASCS, that the registrant provide other conduits or third parties that benefit Boeing, CEG, Cleary, Compass, CSC, D&T, EEI, FEI, information that it believes to be from a pre-existing guarantee of the Fried Frank, ICAA, KPMG, Lilly, NAREIT, NYBA, necessary for an understanding of its NY City Bar, Pfizer, PwC and S&C. registrant).52 42 off-balance sheet arrangements and their See, e.g., the letters of Fried Frank, KPMG and After carefully evaluating the material effects on the registrant’s Pfizer. comments, we are adopting disclosure 43 See, e.g., the letters of ABA, ACB, AICPA, financial condition, changes in financial requirements that are more consistent ASCS, CEG, CSC, D&T, Eaton, EEI, Fried Frank, condition, revenues or expenses, results FTNC, ICAA, Intel, KPMG, Lilly, NAREIT, NYBA, with the principles-based approach NY City Bar, Pfizer, PwC and S&C. of operations, liquidity, capital found in current MD&A rules. The 58 44 See Discussion in Section III.B. expenditures or capital resources. 45 In June 2002, we proposed amendments to 46 See, e.g., the letters of ICI, IMC, D&T, NYBA, require registrants to file current reports on Form Pfizer and PwC. 53 See Release No. 33–6349 (Sept. 28, 1981). 8–K in the event of the creation of a direct or 47 See, e.g., the letters of Cleary, CSC, FTNC, NY 54 See, e.g., Item 303(a)(4)(i)(A) of Regulation S– contingent material financial obligation or the City Bar and S&C. K [17 CFR 229.303(a)(4)(i)(A)]. occurrence of an event triggering a direct or 48 See, e.g., the letters of ACB, AFP, Boeing, CSC, 55 See, e.g., Item 303(a)(4)(i)(B) of Regulation S– contingent material financial obligation. See FTNC, Cleary, NY City Bar and S&C. K [17 CFR 229.303(a)(4)(i)(B)]. Release No. 33–8106 (June 17, 2002) [67 FR 42914]. 49 56 See, e.g., Item 303(a)(4)(i)(C) of Regulation S– If adopted, those current reporting requirements See, e.g., the letters of AFP, Boeing and Pfizer. 50 K [17 CFR 229.303(a)(4)(i)(C)]. will keep investors apprised of material contingent See, e.g., the letters of BDO, Cleary, CSC, FTNC, obligations arising from off-balance sheet NY City Bar, Pfizer and S&C. 57 See, e.g., Item 303(a)(4)(i)(D) of Regulation S– arrangements even if these fall below the 51 See, e.g., the letters of ABA, ACB, AICPA, K [17 CFR 229.303(a)(4)(i)(D)]. ‘‘reasonably likely’’ threshold that we are adopting Boeing, CSC, IMC, KPMG and Pfizer. 58 See, e.g., Item 303(a)(4)(i) of Regulation S–K [17 for MD&A disclosure. 52 Id. CFR 229.303(a)(4)(i)].

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We have eliminated one aspect of the statements and footnotes.66 In addition, contractual obligations.73 For issuers proposed disclosure requirements after some commenters suggested that we that present their primary financial considering the public commentary. The limit the disclosure of contractual statements in accordance with U.S. amendments do not require a registrant obligations and commitments to GAAP, we have defined the first three to disclose the nature and amount of the contracts requiring cash payment.67 categories by referencing the relevant total assets and total obligations of an Some commenters suggested that the U.S. GAAP accounting pronouncements unconsolidated entity that conducts off- disclosure of contingent liabilities that require disclosure of these balance sheet activities on behalf of the should cover only ‘‘commercial obligations in a registrant’s financial registrant. Commenters indicated that it commitments,’’ to be defined by the statements or footnotes. The definition might be impracticable to obtain, rule 68 and should exclude loss of ‘‘purchase obligations’’ is designed to monitor or evaluate information about contingencies from litigation, arbitration capture the registrant’s capital unconsolidated entities that are or regulatory proceedings.69 expenditures for purchases of goods or unaffiliated with the registrant.59 We In addition, many commenters services over a five-year period. The believe that information regarding the believed that the disclosure would fifth category captures all other long- nature and amount of assets transferred impose a large, new compliance burden term liabilities that are reflected on the to an unconsolidated entity is more on registrants by requiring them to registrant’s balance sheet under the pertinent than a listing of the total assets aggregate and assess multiple contracts registrant’s applicable GAAP. and liabilities of that entity. We also and commitments.70 Three commenters The amendments require disclosure of believe that it may be necessary for a suggested that the disclosure should the amounts of a registrant’s purchase registrant to disclose the nature and include a materiality threshold to help obligations without regard to whether amount of assets transferred to an a registrant avoid the burden of notes, drafts, acceptances, bills of unconsolidated entity in fulfilling its identifying and evaluating insignificant exchange or other commercial requirement to explain the nature and contracts, contingencies or instruments will be used to satisfy such business purpose of an off-balance sheet commitments.71 Finally, five obligations because those instruments arrangement. commenters believed that the rule could have a significant effect on the 4. Proposed Tabular and Textual should exclude notes, drafts, registrant’s liquidity. The purpose of Disclosure acceptances, bills of exchange or other this new disclosure requirement is to commercial instruments with a maturity obtain enhanced disclosure concerning Six commenters generally supported of one year or less issued in the ordinary a registrant’s contractual payment the proposed disclosure of contractual 72 obligations, and the exclusion of obligations and contingent liabilities course of business. commercial instruments would be and commitments,60 while four After evaluating the comments inconsistent with that objective. commenters opposed it.61 Two received, we have modified the required Adoption of certain other suggestions of commenters expressed support for the table of contractual obligations. commenters, such as an exclusion of proposed table of contractual Contrary to the proposed rules, which ordinary course items, a limitation to obligations, but not for contingent only suggested the categories of items reflected in financial statements liabilities and commitments.62 Four contractual obligations to be included, or notes under GAAP or a materiality commenters believed that the disclosure the amendments specify that the threshold would also be inconsistent would not improve transparency,63 and following categories of contractual with the objective. at least 13 commenters requested obligations must be included within the We are not adopting a disclosure guidance or clarification on how to table: • requirement for contingent liabilities implement the disclosure Long-term debt obligations; and commitments. We believe that requirements.64 • Capital lease obligations; meaningful disclosure of contingent Many of the commenters urged us to • Operating lease obligations; liabilities and commitments is not further limit and define the types of • Purchase obligations; and necessarily best accomplished by an contractual obligations and contingent • Other long-term liabilities reflected aggregated disclosure format (either liabilities and commitments that would on the registrant’s balance sheet under tabular or textual) because such a format be subject to the new disclosure GAAP. would inevitably omit important requirements.65 For example, some The preparation of financial statements information about the operative facts commenters believed that the disclosure in accordance with GAAP already and circumstances of contingent should exclude purchase orders and requires registrants to assess payments liabilities and commitments (e.g., contracts for goods and services in the under all of the above categories of triggering events, probability of ordinary course of business, as well as contractual obligations, except for occurrence or recourse provisions). In items for which GAAP would not purchase obligations. To aid registrants addition, we note that a number of new require any disclosure in the financial in preparing the table, the amendments accounting 74 and disclosure define the first four categories of 59 See, e.g., the letters of ABA, ACB, AICPA, 73 Boeing, CSC, IMC, KPMG and Pfizer. See, e.g., Item 303(a)(5)(ii) of Regulation S–K [17 CFR 229.303(a)(5)(ii)]. We are unable to follow 60 See, e.g., the letters of ACB, Compass, CSC, 66 See, e.g., the letters of BDO, Centex, D & T, a similar approach for registrants whose financial ICAA, IMC and Pfizer. Emerson, Kellogg and NY City Bar. statements are prepared in accordance with a non- 61 67 See, e.g., the letters of Centex and D & T. See, e.g., the letters of ABA, Eaton, Emerson U.S. GAAP. An instruction, however, makes clear 68 and NY City Bar. See, e.g., the letters of AICPA, E & Y, D & T, that such a registrant should base the categories of 62 See, e.g., the letters of AICPA and E & Y. NYBA and PwC. contractual obligations (except ‘‘purchase 63 See, e.g., the letters of Eaton, Emerson, NY City 69 See, e.g., the letters of AICPA, Eaton, E & Y, obligations’’) on the classifications used in the Bar and Troutman. D & T, Intel, Troutman and PwC. GAAP under which its primary financial statements 64 See, e.g., the letters of ABA, ACB, BDO, Centex, 70 See, e.g., the letters of ABA, Centex, Eaton, are prepared. See, e.g., Instruction 2 to Item 5.F of D & T, Eaton, Emerson, ICAA, Kellogg, NYBA, NY Ford and NY City Bar. Form 20–F [17 CFR 249.220f]. City Bar, Rose and Troutman. 71 See, e.g., the letters of Centex, IMC and NY City 74 See, e.g., Financial Accounting Standards 65 See, e.g., the letters of Centex, D & T, Eaton, Bar. Board (‘‘FASB’’) Interpretation No. 45, Guarantor’s Ford, FTNC, ICAA, IMC, Intel, Kellogg, NY City Bar 72 See, e.g., the letters of Beard, CSC, IMC, NYBA Accounting and Disclosure Requirements for and Pfizer. and Pfizer. Guarantees, Including Indirect Guarantees of

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requirements, including these an unconsolidated entity is a party, asset, a liability or an equity security of amendments, address a registrant’s under which the registrant has: the guaranteed party (e.g., a financial contingent liabilities and commitments • Any obligation under certain standby letter of credit, a market value and may obviate the need for this guarantee contracts;79 guarantee, a guarantee of the market • additional disclosure requirement. We A retained or contingent interest in price of the common stock of the will, however, continue to assess the assets transferred to an unconsolidated guaranteed party or a guarantee of the costs and benefits of an MD & A entity or similar arrangement that serves collection of the scheduled contractual disclosure requirement for aggregate as credit, liquidity or market risk cash flows from individual financial support to that entity for such assets; assets held by an SPE);84 contingent liabilities and commitments • in connection with our ongoing review Any obligation under certain • Contracts that contingently require 80 of MD & A.75 Pending future derivative instruments; the guarantor to make payments to the • Any obligation under a material Commission action on the subject, guaranteed party based on another variable interest 81 held by the registrant registrants should refer to the existing entity’s failure to perform under an in an unconsolidated entity that guidance in our Commission Statement obligating agreement (e.g., a provides financing, liquidity, market 85 to consider whether it would be performance guarantee); risk or credit risk support to the • beneficial to investors to include tabular Indemnification agreements registrant, or engages in leasing, hedging disclosure of aggregate commercial (contracts) that contingently require the or research and development services commitments.76 indemnifying party (guarantor) to make with the registrant. payments to the indemnified party III. Discussion of Amendments 1. Guarantees (guaranteed party) based on changes in an underlying that is related to an asset, A. Definition of ‘‘Off-Balance Sheet The definition of ‘‘off-balance sheet a liability or an equity security of the Arrangement’’ arrangements’’ addresses certain indemnified party (e.g., an adverse guarantees that may be a source of The definition of ‘‘off-balance sheet judgment in a lawsuit or the imposition potential risk to a registrant’s future of additional taxes due to either a arrangement’’ primarily targets the liquidity, capital resources and results means through which companies change in the tax law or an adverse of operations, regardless of whether or interpretation of the tax law); 86 or typically structure off-balance sheet not they are recorded as liabilities. The • transactions or otherwise incur risks of Indirect guarantees of the definition borrows concepts from U.S. indebtedness of others, which arise loss that are not fully transparent to GAAP in order to identify the types of investors. For example, in many cases, under an agreement that obligates one guarantee contracts for which disclosure entity to transfer funds to a second in order to facilitate a transfer of assets is required. The references to U.S. or otherwise finance the activities of an entity upon the occurrence of specified GAAP apply regardless of the particular events, under conditions whereby (a) unconsolidated entity, a company must GAAP under which a registrant presents provide financial support designed to the funds become legally available to its primary financial statements. creditors of the second entity and (b) reduce risks to the entity or other third The first element of the definition parties. That financial support may those creditors may enforce the second refers to any obligation under a entity’s claims against the first entity assume many different forms, such as guarantee contract that has any of the financial guarantees, subordinated under the agreement (e.g., keepwell characteristics identified in paragraph 3 agreements).87 retained interests, keepwell of FIN 45, and that is not excluded from The definition of ‘‘off-balance sheet agreements,77 derivative instruments or the initial recognition and measurement arrangement’’ is designed so that a other contingent arrangements that provisions of FIN 45.82 Paragraph 3 of registrant’s application of FIN 45 will expose the registrant to continuing risks FIN 45 includes within its scope any provide the basis for determining the or material contingent liabilities.78 To contract with one or more of the appropriately capture these guarantee contracts that are subject to following four characteristics: 88 transactions, the definition of ‘‘off- • Contracts that contingently require disclosure under the amendments. balance sheet arrangement’’ includes the guarantor to make payments to the Paragraphs 6 and 7 of FIN 45 exclude any contractual arrangement to which guaranteed party based on changes in an certain guarantee contracts from the ‘‘underlying’’ 83 that is related to an recognition and measurements provisions of FIN 45.89 These exclusions Indebtedness of Others (Nov. 2002), (‘‘FIN 45’’); and FASB Interpretation No. 46, Consolidation of 79 The guarantee contracts covered by the Variable Interest Entities (Jan. 2003), (‘‘FIN 46’’). definition are consistent with the scope of the foreign exchange rate, index of prices or rates, or 75 We are considering future rule proposals or recently issued FIN 45. other variable.’’ See FIN 45 at fn. 2. interpretive releases to improve MD & A disclosure, 80 For registrants whose financial statements are 84 See FIN 45, paragraph 3a. such as requiring an overview about a company’s prepared in accordance with U.S. GAAP, the 85 Id., paragraph 3b. situation and information about the trends that its definition includes a contract that would be 86 Id., paragraph 3c. management follows and evaluates in making accounted for as a derivative instrument, except 87 Id., paragraphs 3d and 17. decisions about how to guide the company’s that it is both indexed to the registrant’s own stock 88 A registrant that prepares its financial business. and classified in the registrant’s statement of statements in accordance with a non-U.S. GAAP 76 See Commission Statement, Release No. 33– stockholders’ equity. See FASB Statement of must apply FIN 45 to reconcile its financial 8056, FR–61 (Jan. 22, 2002) [67 FR 3746] at Section Financial Accounting Standards (‘‘SFAS’’) No. 133, statements with U.S. GAAP. II.A.3. Accounting for Derivative Instruments and Hedging 89 Paragraph 6 of FIN 45 excludes: guarantees 77 A ‘‘keepwell agreement’’ includes any Activities (June 1998), (‘‘SFAS No. 133’’), paragraph issued by insurance and reinsurance companies and agreement or undertaking under which a company 11a. For other registrants, the definition includes accounted for under specialized accounting is, or would be, obligated to provide or arrange for derivative instruments that are both indexed to the principles for those companies; a lessee’s guarantee the provision of funds or property to an affiliate or registrant’s own stock and classified in of the residual value of leased property in a capital third party. stockholders’ equity, or not reflected, in the lease; contingent rents; vendor rebates; and 78 For purposes of the amendments, contingent company’s statement of financial position. guarantees whose existence prevents the guarantor liabilities arising out of litigation, arbitration or 81 See FIN 46. from recognizing a sale or the earnings from a sale. regulatory actions are not considered to be off- 82 See, e.g., Item 303(a)(4)(ii)(A) of Regulation S– Paragraph 7 of FIN 45 excludes: product warranties; balance sheet arrangements. See, e.g., Instruction 3 K [17 CFR 229.303(a)(4)(ii)(A)]. guarantees that are accounted for as derivatives; to Paragraph 303(a)(4) of Regulation S–K [17 CFR 83 An ‘‘underlying’’ is defined as ‘‘a specified contingent consideration in a business combination; 229.303]. interest rate, security price, commodity price, Continued

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also will apply to the definition of ‘‘off- SFAS No. 133 pursuant to paragraph and development services with the balance sheet arrangements’’ in the 11a of that Statement.92 Similarly, the registrant.97 amendments. definition for registrants whose B. Disclosure Threshold 2. Retained or Contingent Interests financial statements are prepared in accordance with a non-U.S. GAAP The amendments require disclosure of As an alternative to guarantee includes any obligation under a off-balance sheet arrangements that contracts, companies may structure and either have, or are reasonably likely to derivative instrument that is both facilitate off-balance sheet arrangements have, a current or future effect on the indexed to the registrant’s own stock by retaining an interest in assets registrant’s financial condition, changes transferred to an unconsolidated entity. and classified in stockholders’ equity, or in financial condition, revenues or For example, a subordinated retained not reflected, in the registrant’s expenses, results of operations, 93 interest in a pool of receivables statement of financial position. liquidity, capital expenditures or capital transferred to an unconsolidated entity 4. Variable Interests resources that is material to investors.98 can provide credit support to the entity That disclosure threshold is consistent by cushioning the senior interests in the The fourth element of the definition with the existing disclosure threshold event that a portion of the receivables includes any obligation, including a under which information that could becomes uncollectible. In this event, the contingent obligation, arising out of a have a material effect on financial value of the retained interest can material variable interest held by the condition, changes in financial decline and can therefore have a registrant in an unconsolidated entity, condition or results of operations must material effect on a registrant’s financial where such entity provides financing, be included in MD&A.99 condition. Accordingly, the second liquidity, market risk or credit risk To apply the disclosure threshold, element of the definition of ‘‘off-balance support to, or engages in leasing, management first must identify and critically analyze the registrant’s off- sheet arrangements’’ includes retained hedging or research and development or contingent interests in assets balance sheet arrangements, including services with, the registrant.94 We transferred to an unconsolidated entity its guarantee contracts, retained or intend for this element of the definition or similar arrangements that serve as contingent interests, derivative credit, liquidity or market risk support to be consistent with the concept of a instruments and variable interests. to such entity for such assets.90 ‘‘variable interest’’ that is included in Second, management must assess the the recently issued FASB Interpretation likelihood of the occurrence of any 3. Certain Derivative Instruments No. 46 (‘‘FIN 46’’). The term ‘‘variable known trend, demand, commitment, Similar to guarantees or retained interest’’ is defined in FIN 46 as event or uncertainty that could affect an interests, certain derivative instruments ‘‘contractual, ownership, or other off-balance sheet arrangement (e.g., have been used in structuring off- pecuniary interests in an entity that performance under a guarantee; an balance sheet arrangements. For change with changes in the entity’s net obligation under a variable interest or example, a registrant may issue or hold asset value.’’95 In other words, variable equity-linked or indexed derivative derivative instruments that are indexed interests are investments or other instrument; or recognition of an to its stock and classified as interests that will absorb a portion of an impairment). If management concludes stockholders’ equity under GAAP.91 The entity’s expected losses if they occur or that the known trend, demand, impact of those derivative instruments receive portions of the entity’s expected commitment, event or uncertainty is not often is not transparent to investors residual returns if they occur.96 To reasonably likely to occur, then no because those derivative instruments are apply this element of the definition, a disclosure is required in MD&A.100 If classified as equity and subsequent registrant must assess the variable management cannot make that changes in fair value may not be determination, it must evaluate periodically recognized in the financial interests it holds in the specified unconsolidated entities regardless of objectively the consequences of the statements. Therefore, the third element known trend, demand, commitment, of the definition includes those whether the entity is deemed to be a ‘‘variable interest entity’’ pursuant to event or uncertainty on the assumption derivative instruments to better apprise that it will come to fruition. Disclosure investors of their impact. The definition paragraph 5 of FIN 46. To focus the disclosure on the most crucial off- is then required unless management for registrants whose financial determines that a material effect on the balance sheet arrangements, however, statements are prepared in accordance registrant’s financial condition, changes the definition only applies to variable with U.S. GAAP includes derivative in financial condition, revenues or instruments that are excluded from interests, that are material to the expenses, results of operations, registrant, in entities that provide guarantees for which the guarantor’s obligations financing, liquidity, market risk or 97 We identified the need for improved would be reported as an equity item (rather than a credit risk support to the registrant, or disclosures about entities that conduct these liability); certain guarantees in connection with a lease restructuring; guarantees issued between engage in leasing, hedging or research activities in the January 2002 Commission either parents and their subsidiaries or corporations Statement. See Commission Statement, Release No. under common control; a parent’s guarantee of a 33–8056, FR–61 (Jan. 22, 2002) [67 FR 3746] at 92 See SFAS No. 133, paragraph 11a. In particular, subsidiary’s debt to a third party; and a subsidiary’s Section II.A.2. paragraph 11a excludes contracts issued or held by 98 guarantee of the debt owed to a third party by either See, e.g., Item 303(a)(4)(i) of Regulation S–K [17 a registrant that are both: (1) indexed to its own its parent or another subsidiary of that parent. CFR 229.303(a)(4)(i)]. stock and (2) classified in stockholder’s equity in 90 See, e.g., Item 303(a)(4)(ii)(B) of Regulation S– 99 See Release No. 33–6835 (May 18, 1989) [54 FR its statement of financial position. K [17 CFR 229.303(a)(4)(ii)(B)]. 22427] (the ‘‘1989 Interpretive Release’’). The 93 See, e.g., Item 5.E.2(c) of Form 20–F [17 CFR 91 See FASB Emerging Issues Task Force Issue January 2002 Commission Statement indicated that 249.220f]. (‘‘EITF’’) No. 00–19 Accounting for Derivative ‘‘reasonably likely’’ is a lower disclosure threshold 94 Financial Instruments Indexed to, and Potentially See, e.g., Item 303(a)(4)(ii)(D) of Regulation S– than ‘‘more likely than not.’’ See Release No. 33– Settled in, a Company’s Own Stock (Jan. 2001). The K [17 CFR 229.303(a)(4)(ii)(D)]. 8056, FR–61 (Jan. 22, 2002) [67 FR 3746]. FASB has been reevaluating the accounting 95 See FIN 46 at paragraph 2c. 100 Even if management determines that the treatment for such financial instruments and is 96 See FIN 46 at paragraph 6. The definition of likelihood of a material effect is not reasonably expected to issue SFAS No. 149 Accounting for ‘‘off-balance sheet arrangement’’ only addresses likely, disclosure may still be required in the Financial Instruments with Characteristics of obligations arising out of a variable interest held by footnotes to the financial statements. See, e.g., FIN Liabilities or Equity in February 2003. a registrant, and not residual returns. 45, paragraph 13.

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liquidity, capital expenditures or capital balance sheet arrangement enables the trend or uncertainty that will, or is resources is not reasonably likely to registrant to readily obtain cash through reasonably likely to, result in the occur. Consistent with other disclosure sales of groups of loans to a trust; to termination, or material reduction in threshold determinations that finance inventory, transportation or availability to the registrant, of its off- management must make in drafting research and development costs without balance sheet arrangements that provide MD&A, the assessment must be recognizing a liability; or to lower the registrant with material benefits.107 objectively reasonable, viewed as of the borrowing costs of unconsolidated Under this requirement, a registrant time the determination is made.101 affiliates by extending guarantees to must disclose, for example, any material their creditors. contractual provisions calling for the C. Disclosure About Off-Balance Sheet Under the amendments, a registrant Arrangements termination or material reduction of an must discuss the importance of its off- off-balance sheet arrangement. The The amendments require a registrant balance sheet arrangements to its disclosure also should address factors to disclose the material facts and liquidity, capital resources, market risk that are reasonably likely to affect the circumstances that provide investors support, credit risk support or other registrant’s ability to continue using off- with a clear understanding of a 105 benefits. This disclosure should balance sheet arrangements that provide registrant’s off-balance sheet provide investors with an it with material benefits. For example, if arrangements and their material effects. understanding of the importance of off- a registrant’s credit rating were to fall To provide flexibility to registrants and balance sheet arrangements to the below a certain level, some off-balance to filter out disclosure of insignificant registrant as a financial matter. For sheet arrangements may require the details, the amendments require example, if a registrant materially relies disclosure of enumerated information registrant to purchase the assets or on off-balance sheet arrangements for its assume the liabilities of an only to the extent necessary to an liquidity and capital resources, a unconsolidated entity. In addition, a understanding of a registrant’s off- registrant may be required to disclose change in a registrant’s credit rating balance sheet arrangements and their how often it securitizes financial assets, could either preclude or materially material effects on financial condition, to what degree its securitizations are a reduce the benefits to the registrant of changes in financial condition, revenues material source of liquidity, whether it engaging in off-balance sheet and expenses, results of operations, has materially increased or decreased liquidity, capital expenditures and securitizations from past periods and to arrangements. In such cases, the capital resources. In addition to the explain such increase or decrease. registrant will have to disclose known enumerated information, the discussion Together with the other disclosure circumstances that are reasonably likely must include such other information requirements, registrants should provide to cause its credit rating to fall to the that the registrant believes is necessary information sufficient for investors to specified level and discuss the material for an understanding of its off-balance assess the extent of the risks that have consequences of the drop in ratings. In sheet arrangements and the specified been transferred and retained as a result addition, the registrant must discuss the material effects.102 The disclosure shall of the arrangements. course of action that it has taken or generally cover the most recent fiscal In addition, the disclosure should proposes to take in response to a year, but it also should address changes provide investors with insight into the termination or material reduction in the from the previous year where such overall magnitude of a registrant’s off- availability of an off-balance sheet discussion is necessary to an balance sheet activities, the specific arrangement that provides material understanding of the disclosure.103 material impact of the arrangements on benefits. Under the amendments, a registrant a registrant and the circumstances that The amendments contain a must disclose the nature and business could cause material contingent principles-based requirement stating purpose of the off-balance sheet obligations or liabilities to come to that a registrant must provide other 104 arrangements. This disclosure should fruition. Disclosure is required to the information that it believes to be explain to investors why a registrant extent material and necessary to necessary for an understanding of its engages in off-balance sheet investors’ understanding of: off-balance sheet arrangements and the • arrangements and should provide the The amounts of revenues, expenses, material effects of these arrangements information that investors need to and cash flows of the registrant arising on its financial condition, changes in understand the business activities from the arrangements; financial condition, revenues or • advanced through a registrant’s off- The nature and total amount of any expenses, results of operations, balance sheet arrangements. For interests retained, securities issued and liquidity, capital expenditures or capital example, a registrant may indicate that other indebtedness incurred by the resources.108 The disclosure should the arrangements enable the company to registrant in connection with such provide investors with management’s lease certain facilities rather than arrangements; and insight into the impact and proximity of acquire them, where the latter would • The nature and amount of any other the potential material risks that are require the registrant to recognize a obligations or liabilities (including reasonably likely to arise from material liability for the financing. Other contingent obligations or liabilities) of off-balance sheet arrangements. possible disclosure under this the registrant arising from the requirement may indicate that the off- arrangements that are, or are reasonably The amendments instruct registrants likely to become, material and the to aggregate off-balance sheet 101 See Release No. 33–6835 (May 18, 1989) [54 triggering events or circumstances that arrangements in groups or categories FR 22427]. could cause them to arise.106 that provide information in an efficient 102 See, e.g., Item 303(a)(4)(i) of Regulation S–K The discussion also must identify any and understandable manner and avoid [17 CFR 229.303(a)(4)(i)]. repetition and disclosure of immaterial 103 See, e.g., Instruction 4 to paragraph 303(a)(4) known event, demand, commitment, of Regulation S–K [17 CFR 229.303]. Compare Instruction 1 to Item 303(a) of Regulation S–K [17 105 See, e.g., Item 303(a)(4)(i)(B) of Regulation S– 107 See, e.g., Item 303(a)(4)(i)(D) of Regulation S– CFR 229.303]. K [17 CFR 229.303(a)(4)(i)(B)]. K [17 CFR 229.303(a)(4)(i)(D)]. 104 See, e.g., Item 303(a)(4)(i)(A) of Regulation S– 106 See, e.g., Item 303(a)(4)(i)(C) of Regulation S– 108 See, e.g., Item 303(a)(4)(i) of Regulation S–K K [17 CFR 229.303(a)(4)(i)(A)]. K [17 CFR 229.303(a)(4)(i)(C)]. [17 CFR 229.303(a)(4)(i)].

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information.109 Common or similar off-balance sheet arrangement will arise future payments under contracts, such effects that may result from a number of until an unconditionally binding as debt and lease agreements.113 different off-balance sheet arrangements definitive agreement, subject only to Information about other obligations, must be analyzed in the aggregate to the customary closing conditions exists or, such as purchase contracts, may or may extent that the aggregation increases if there is no such agreement, when not be disclosed, but if disclosed, it is understanding. For example, if settlement of the transaction occurs.110 usually dispersed throughout a filing particular triggering events or That instruction is consistent with the and may not be presented in a circumstances would either require a Commission policy set forth in its 1989 consistent manner among registrants. registrant to become directly obligated, Interpretive Release on disclosure of Aggregated information about a or accelerate its obligations, under a preliminary negotiations for the registrant’s contractual obligations in a number of off-balance sheet acquisition or disposition of assets not 111 single location will provide useful arrangements, and the overall in the ordinary course of business. In context for investors to assess a obligations would be material, then the the 1989 Interpretive Release, the registrant’s short- and long-term amendments will require an analysis of Commission stated that, ‘‘where liquidity and capital resource needs and the circumstances and their aggregate disclosure is not otherwise required, demands. In addition, it will improve an effect to the extent it increases and has not otherwise been made, the investor’s ability to compare registrants. understanding. Registrants should MD&A need not contain a discussion of discuss distinctions among aggregated the impact of [preliminary negotiations Therefore, we are requiring registrants off-balance sheet arrangements if such for the acquisition or disposition of to disclose in a tabular format the distinctions are material, but the assets not in the ordinary course of amounts of payments due under discussion should avoid repetition and business] where, in the registrant’s specified contractual obligations, disclosure of immaterial information. view, inclusion of such information aggregated by category of contractual 114 In light of the fact that the off-balance would jeopardize completion of the obligation, for specified time periods. sheet arrangements covered under the transaction.’’ 112 We are not adopting this requirement amendments are contractual, it is for small business issuers that file small appropriate to apply the Commission’s D. Tabular Disclosure of Contractual business reporting forms.115 The policy regarding MD&A disclosure of Obligations registrant must provide the information preliminary negotiations. Therefore, the Some accounting standards require as of the latest fiscal year end balance amendments include an instruction that disclosure concerning a registrant’s sheet date,116 and the table should be in no obligation to make disclosure of an obligations and commitments to make substantially the same form as follows:

Payments due by period Contractual obligations Less than 1 More than 5 Total year 1–3 years 3–5 years years

[Long-Term Debt] ...... [Capital Lease Obligations] ...... [Operating Leases] ...... [Purchase Obligations] ...... [Other Long-Term Liabilities Reflected on the Registrant’s ...... Balance Sheet under GAAP] ......

Total ......

To provide flexibility for company- an understanding of the timing and accordance with a non-U.S. GAAP specific disclosure, the amendments amount of the contractual obligations in should include contractual obligations allow a registrant to disaggregate the the table. in the table that are consistent with the specified categories by using other U.S. GAAP already requires classifications used in the GAAP under categories suitable to its business, but registrants to aggregate and assess all of which its primary financial statements the table must include all of the the specified categories, except for are prepared.119 obligations that fall within specified purchase obligations. Accordingly, the Some purchase obligations are categories.117 In addition, the table first three categories of contractual executory contracts, and therefore are should be accompanied by footnotes obligations are defined by reference to not recognized as liabilities in necessary to describe material the relevant U.S. GAAP accounting contractual provisions or other material pronouncements.118 A registrant that information to the extent necessary for prepares financial statements in

109 See, e.g., Instruction 2 to paragraph 303(a)(4) 114 See, e.g., Item 303(a)(5)(i) of Regulation S–K 116 Registrants are not required to include the of Regulation S–K [17 CFR 229.303]. [17 CFR 229.303(a)(5)(i)]. table for interim periods. Instead, a registrant 110 See, e.g., Instruction 1 to paragraph 303(a)(4) 115 ‘‘Small business issuer’’ is defined to mean should update the table from its annual report by of Regulation S–K [17 CFR 229.303]. any entity that (1) Has revenues of less than disclosing only material changes outside of the ordinary course of business. See, e.g., Instruction 7 111 $25,000,000; (2) is a U.S. or Canadian issuer; (3) is See Release No. 33–6835 (May 18, 1989) [54 to paragraph 303(b) of Regulation S–K [17 CFR FR 22427]. not an investment company; and (4) if a majority- 229.303]. 112 owned subsidiary, has a parent corporation that Id. at 22436. 117 See, e.g., Item 303(a)(5)(i) of Regulation S–K 113 See, e.g., FASB SFAS No. 13, Accounting for also is a small business issuer. An entity is not a [17 CFR 229.303(a)(5)(i)]. Leases (Nov. 1976); SFAS No. 47, Disclosure of small business issuer, however, if it has a public 118 See, e.g., Item 303(a)(5)(ii) of Regulation S–K Long-Term Obligations (March 1981); and SFAS No. float (the aggregate market value of the outstanding [17 CFR 229.303(a)(5)(ii)]. 129, Disclosure of Information about Capital equity securities held by non-affiliates) of 119 See, e.g., Instruction 2 to Item 5.F of Form 20– Structure (Feb. 1997). $25,000,000 or more. See 17 CFR 228.10. F [17 CFR 249.220f].

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accordance with GAAP.120 Because 2. Language and Format that include non-exchange traded purchase obligations may have a The MD&A discussion should be contracts accounted for at fair value, significant effect on the registrant’s presented in language and a format that and transactions with persons or entities liquidity, they are included in the table. is clear, concise and understandable. that derive benefits from their non- The amendments provide a definition of For example, a registrant may choose to independent relationships with the ‘‘purchase obligations.’’ A ‘‘purchase include the financial impact of its off- registrant or the registrant’s related 126 obligation’’ is defined as an agreement balance sheet arrangements (e.g., parties. The amendments relating to to purchase goods or services that is revenues, expenses, gains or losses) disclosures that are the subject of this enforceable and legally binding on the aggregated by type of arrangement in a release will supersede the guidance in registrant and that specifies all tabular format. The information should the Commission Statement on significant terms, including: fixed or not be presented in such a manner that disclosure of off-balance sheet 127 minimum quantities to be purchased; only an accountant or financial analyst arrangements as of the Compliance fixed, minimum or variable price or an expert on a particular industry Date for the amendments. On the provisions; and the approximate timing would be able to fully understand it. Compliance Date for the amendments of the transaction.121 If the purchase Boilerplate disclosures that do not relating to disclosure of the table of obligations are subject to variable price specifically address the registrant’s contractual obligations, the guidance in provisions, then the registrant must particular circumstances and operations the Commission Statement on provide estimates of the payments due. will not satisfy the MD&A requirements. disclosure of the table of contractual 128 In that case, the table should include Disclosure that can easily be transferred obligations also will be superseded footnotes to inform investors of the from year to year, or from company to by the amendments. All other guidance payments that are subject to market risk, company, with no change will neither issued in the Commission Statement if that information is material to inform investors adequately nor reflect will remain in effect. While the investors. In addition, the footnotes the independent thinking that must Compliance Dates for the amendments should discuss any material termination precede the assessment by management applies to annual reports, registration or renewal provisions to the extent that is intended for MD&A disclosure. statements and proxy or information necessary for an understanding of the statements that are required to include timing and amount of the registrant’s 3. Cross-Referencing to the Financial financial statements for the fiscal years payments under its purchase Statements ending on or after June 15, 2003 for obligations. In response to the Proposing Release, disclosure about off-balance sheet eight commenters noted that some of the arrangements and December 15, 2003 E. Presentation of Disclosure disclosures appear to be redundant with for the table of contractual obligations, 1. Separate Disclosure Sections GAAP disclosure requirements.124 To we assume that registrants with fiscal eliminate unnecessary repetition, the years ending before the Compliance The amendments require a registrant Dates will continue to follow the to present the disclosure about off- amendments allow a registrant to include within its MD&A section a guidance in the Commission Statement. balance sheet arrangements in a Registrants may voluntarily comply separately-captioned section of MD&A. cross-reference to information in the footnotes to the financial statements.125 with the new disclosure requirements In contrast, a registrant may place the before the Compliance Dates. tabular disclosure of known contractual The cross-reference must clearly obligations in an MD&A location that it identify specific information in the G. Application to Foreign Private Issuers footnotes and must integrate the deems to be appropriate. In response to The amendments apply to foreign the request for comments in the substance of the footnotes into the MD&A discussion in a manner designed private issuers that file annual reports Proposing Release, five commenters 129 130 to inform readers of the significance of on Form 20–F or on Form 40–F. suggested that the issuer should be able Because section 401(a) of the Sarbanes- to determine the placement of the off- the information that is not included within the body of the MD&A. Oxley Act does not distinguish between balance sheet disclosures within the 131 Registrants should ensure that the foreign private issuers and U.S. MD&A,122 and two commenters quality of the discussion of off-balance companies, we interpret Congress’ supported a separate disclosure section sheet arrangements has not diminished directive to the Commission to adopt for off-balance sheet disclosures.123 as a result of including a cross- rules requiring expanded disclosure After evaluating the comments, we are reference. In addition, the disclosure in about off-balance sheet transactions in adopting a requirement for a separate the referenced footnotes should comply annual reports filed with the section for two reasons. First, a distinct with the language and format presentation of the information will 126 requirements discussed above. See Commission Statement, Release No. 33– highlight it for readers and enable 8056, FR–61 (Jan. 22, 2002)[67 FR 3746]. investors to more easily compare F. Effect of Amendments on 127 See Commission Statement, Section II.A.2. disclosure of different companies. Commission Statement 128 See Commission Statement, Section II.A.3. 129 Second, a distinct presentation will 17 CFR 249.220f. In an effort to provide guidance to 130 17 CFR 249.240f. Form 40-F is the form used layer the MD&A, and thereby enable public companies, our January 2002 by qualified Canadian issuers to file their Exchange investors with varying levels of interest Commission Statement presented a Act registration statements and annual reports with and financial acumen to easily obtain number of factors that management the Commission in accordance with Canadian desired information. disclosure requirements under the U.S.-Canadian should consider regarding the MD&A Multijurisdictional Disclosure System (‘‘MJDS’’). disclosure requirements for liquidity 131 A foreign private issuer is a non-U.S. company 120 See FASB, Statement of Financial Accounting except for a company that has more than 50% of Concepts No. 6, Elements of Financial Statements and capital resources, off-balance sheet arrangements, certain trading activities its outstanding voting securities owned by U.S. (Dec. 1985), paragraphs 35–40. investors and has a majority of its officers and 121 See, e.g., Item 303(a)(5)(ii)(D) of Regulation S– directors residing in or being citizens of the U.S., K [17 CFR 229.303(a)(5)(ii)(D)]. 124 See, e.g., the letters of ACB, Boeing, Eaton, has a majority of its assets located in the U.S., or 122 See, e.g., the letters of ACB, CSC, D&T, IMC E&Y, Ford, KPMG, NAREIT and NY City Bar. has its business principally administered in the and Pfizer. 125 See, e.g., Instruction 5 to paragraph 303(a)(4) U.S. See Exchange Act Rule 3b–4 [17 CFR 240.3b– 123 See, e.g., the letters of Beard and PwC. of Regulation S–K [17 CFR 229.303(a)(4)]. 4].

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Commission to apply equally to Form requirements under Form 40–F as a The MD&A disclosure that foreign 20–F or 40–F annual reports filed by result of the Sarbanes-Oxley Act.137 private issuers currently provide in foreign private issuers and to Form 10– Although an issuer prepares its documents filed with the Commission K or 10–KSB annual reports filed by MD&A discussion contained in a Form must focus on the primary financial domestic issuers. In response to the 40-F registration statement or annual statements, whether those are prepared Proposing Release, three commenters report in accordance with Canadian in accordance with U.S. GAAP or a non- believed that the rules should apply to disclosure standards, we believe that U.S. GAAP.141 Foreign private issuers foreign private issuers, 132 five requiring disclosure of off-balance sheet whose primary financial statements are commenters believed that the rules arrangements and a table of contractual prepared in accordance with a non-U.S. should not apply to MJDS filers,133 and obligations in accordance with SEC GAAP should include in their MD&A a four commenters believed that the rules is not inconsistent with the discussion of the reconciliation to U.S. Sarbanes-Oxley Act does not, and principles of the MJDS, is consistent GAAP, and any differences between should not, require the proposals to be with the Sarbanes-Oxley Act and, most foreign and U.S. GAAP, if it would be applied to foreign private issuers and importantly, will provide investors with necessary for an understanding of the MJDS filers.134 We do not believe that useful information that is comparable to financial statements as a whole.142 it is appropriate to exempt foreign that provided by U.S. and other foreign Consistent with that existing MD&A private issuers or MJDS filers because, companies that file reports under the requirement for foreign private issuers, Exchange Act. as discussed below, the disclosure the disclosure about off-balance sheet Section 401(a) of the Sarbanes-Oxley requirements do not represent a arrangements and the table of Act also requires the Commission to contractual obligations must focus on fundamental change in our approach adopt off-balance sheet disclosure rules with respect to the financial disclosure the primary financial statements that apply to ‘‘each quarterly financial presented in the document, while taking provided by foreign private issuers and report required to be filed with the MJDS filers. the reconciliation into account. Commission.’’ 138 Foreign private The definition of ‘‘off-balance sheet There are two additional reasons for issuers are not required to file arrangements’’ covers the same types of applying the amendments to foreign ‘‘quarterly’’ reports with the arrangements regardless of whether a private issuers’ annual reports filed with Commission, and therefore the registrant is a foreign private issuer or the Commission. First, investors and amendments do not apply to Form 6-K a domestic issuer. We believe that the others would enjoy the same benefits reports submitted by foreign private references to U.S. GAAP in the from expanded off-balance sheet issuers to provide copies of materials definition best achieve the appropriate disclosure in foreign private issuers’ required to be made public in their scope of arrangements that require more annual reports as they would from this home jurisdictions.139 Thus, unless a transparent disclosure, regardless of any disclosure in domestic issuers’ annual foreign private issuer files a Securities particular accounting treatment. To reports. Second, for Form 20-F annual Act registration statement that must identify the types of arrangements that reports, the existing MD&A-equivalent include interim period financial are subject to disclosure under the requirements for foreign private issuers statements and related MD&A amendments, a foreign private issuer currently mirror the substantive MD&A disclosure, it will not be required to must assess its guarantee contracts and requirements for U.S. companies. We update its MD&A disclosure more variable interests pursuant to U.S. believe this desirable policy should frequently than annually.140 GAAP. Foreign private issuers must continue.135 already make this assessment when they 137 We have recently adopted amendments in reconcile or prepare their financial The disclosure provided by Canadian Form 40-F to require disclosure concerning whether issuers that file Form 40–F is generally the issuer has adopted a code of ethics applicable statements in accordance with U.S. that required under Canadian law. We to certain officers and whether it has a financial GAAP. A foreign private issuer’s MD&A have, however, supplemented these expert on its audit committee. See Release No. 33– disclosure should continue to focus on 8177 (January 23, 2003) [Not yet published in disclosure requirements with specific its primary financial statements despite Federal Register]. the fact that its various ‘‘off-balance required items of information.136 We 138 Exchange Act section 13(j) [15 U.S.C. 78m(j)]. have adopted additional disclosure 139 A foreign private issuer must furnish under sheet arrangements’’ have been defined cover of Form 6–K material information that it by reference to U.S. GAAP. makes public or is required to make public under 132 See, e.g., the letters of AICPA, D&T and Pfizer. its home country laws or the rules of its home H. Safe Harbor for Forward-Looking 133 See, e.g., the letters of AICPA, D&T, Fried country stock exchange or that it distributes to Information Frank, Pfizer and PwC. security holders. While foreign private issuers may 134 See, e.g., the letters of ABA, OFII, NY City Bar submit interim financial information under cover of Some of the disclosure required by and S&C. Form 6-K, they do so pursuant to their home the amendments would require 135 Although we revised the wording of the country requirements and not because of a disclosure of forward-looking MD&A Item in Form 20–F in 1999, the adopting Commission requirement to submit updated information.143 To encourage the type of release noted that we interpret that Item as financial information for specified periods and requiring the same disclosure as Item 303 of according to specified standards. Therefore, we do Regulation S–K. See Release No. 33–7745 not believe that a Form 6–K constitutes a ‘‘periodic’’ not, however, apply to Securities Act registration (September 28, 1999) [64 FR 53900 at 59304]. In or ‘‘quarterly’’ report analogous to a Form 10–Q or statements filed by Canadian issuers under the addition, Instruction 1 to Item 5 in Form 20–F 10–QSB for which expanded disclosure is required. MJDS because we believe them to be outside the provides that issuers should refer to the We similarly clarified that Form 6–K reports are not scope of the directive in section 401(a) of the Commission’s 1989 interpretive release on MD&A subject to the recently adopted section 302 Sarbanes-Oxley Act. These MJDS registration disclosure under Item 303 of Regulation S–K for certification requirements. See Release No. 33–8124 statements are based on Canadian disclosure guidance in preparing the discussion and analysis at n. 50. requirements. by management of the company’s financial 140 Similar to our treatment of Securities Act 141 See Instruction 2 to Item 5 of Form 20-F [17 condition and results of operations required in registration statements filed by domestic issuers, we CFR 249.220f]. Form 20–F. See Release No. 33–6835 (May 18, are including within the scope of the amendments 142 Id. 1989) [54 FR 22427]. Securities Act registration statements filed by 143 We are therefore eliminating a portion of the 136 For example, under General Instruction C.2 of foreign private issuers on Forms F–1, F–2, F–3 and instructions in the MD&A rules that state that Form 40-F, the issuer must usually include F–4 [17 CFR 239.31–239.34]. Each of these registrants are not required to provide forward- financial information that is reconciled to U.S. registration statements references Form 20–F’s looking information. See, e.g., Instruction 7 to Item generally accepted accounting principles. disclosure requirements. The amendments would 303(a) and 6 to Item 303(b) of Regulation S–K [17

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information and analysis necessary for new safe harbor to ensure the (5) ‘‘Form F–4’’ (OMB Control No. investors to understand the impact of application of the statutory safe harbors 3235–0325); off-balance sheet arrangements and to to the forward-looking statements (6) ‘‘Form 10’’ (OMB Control No. reduce the burden of estimating the required under the amendments. The 3235–0064); payments due under contractual safe harbor is designed to remove (7) ‘‘Form 10–SB’’ (OMB Control No. obligations, the amendments include a possible ambiguity about whether the 3235–0419); safe harbor for forward-looking statutory safe harbors would apply to (8) ‘‘Form 20–F’’ (OMB Control No. information.144 The safe harbor the forward-looking statements made in 3235–0288); explicitly applies the statutory safe response to the amendments. The safe (9) ‘‘Form 40–F’’ (OMB Control No. harbor protections (sections 27A of the harbor specifies that, except for 3235–0381); Securities Act and 21E of the Exchange historical facts, the disclosure would be (10) ‘‘Form 10–K’’ (OMB Control No. Act) 145 to forward-looking information deemed to be a ‘‘forward looking 3235–0063); that is required to be disclosed. statement’’ as that term is defined in the (11) ‘‘Form 10–KSB’’ (OMB Control The statutory safe harbors contain statutory safe harbors.147 In addition, No. 3235–0420); provisions to protect forward-looking with respect to the MD&A discussion of (12) ‘‘Proxy Statements—Regulation statements against private legal actions off-balance sheet arrangements, we are 14A (Commission Rules 14a–1 through that are based on allegations of a adopting a provision that the 14a–15) and Schedule 14A’’ (OMB material misstatement or omission.146 ‘‘meaningful cautionary statements’’ Control No. 3235–0059); The statutory safe harbors provide three element of the statutory safe harbors (13) ‘‘Information Statements— separate bases for a registrant to claim will be satisfied if a registrant satisfies Regulation 14C (Commission Rules 14c– the protection against liability for all of its off-balance sheet arrangements 1 through 14c–7 and Schedule 14C)’’ forward-looking statements made in the disclosure requirements.148 Because the (OMB Control No. 3235–0057); registrant’s MD&A. First, a forward- new MD&A safe harbor is closely linked (14) ‘‘Form 10–Q’’ (OMB Control No. looking statement will fall within the to the statutory safe harbors, we urge 3235–0070); safe harbors if identified as forward- companies preparing their disclosure to (15) ‘‘Form 10–QSB’’ (OMB Control looking and accompanied by consider the terms, conditions and No. 3235–0416); meaningful cautionary statements that scope of the statutory safe harbors in (16) ‘‘Regulation S–K’’ (OMB Control identify important factors that could drafting their disclosure. No. 3235–0071); and cause actual results to differ materially from those in the forward-looking IV. Paperwork Reduction Act (17) ‘‘Regulation S–B’’ (OMB Control No. 3235–0417). statement. Second, the safe harbors A. Background protect from private liability any These regulations and forms were forward-looking statement that is not The amendments to Regulations S–B, adopted pursuant to the Securities Act material. Finally, the safe harbors S–K,149 Form 20–F and Form 40–F and the Exchange Act and set forth the preclude private liability if a plaintiff contain ‘‘collection of information’’ disclosure requirements for annual and fails to prove that the forward-looking requirements within the meaning of the quarterly reports, registration statements statement was made by or with the Paperwork Reduction Act of 1995 and proxy and information statements approval of an executive officer of the (‘‘PRA’’).150 We published a notice filed by companies to ensure that registrant who had actual knowledge requesting comment on the collection of investors are informed. The hours and that it was false or misleading. The information requirements in the costs associated with preparing, filing, statutory safe harbors cover statements Proposing Release, and we submitted and sending these forms constitute by reporting companies, persons acting these requirements to the Office of reporting and cost burdens imposed by on their behalf, outside reviewers Management and Budget (‘‘OMB’’) for each collection of information. An retained by them, and their review in accordance with the PRA.151 agency may not conduct or sponsor, and underwriters (when using information The titles for the collections of a person is not required to respond to, from, or derived from, the companies). information are: a collection of information unless it Because we believe that it would (1) ‘‘Form S–1’’ (OMB Control No. displays a currently valid control promote more meaningful disclosure, 3235–0065); number. we are invoking rulemaking authority (2) ‘‘Form F–1’’ (OMB Control No. The amendments require public under sections 27A and 21E to create a 3235–0258); companies to include a discussion of (3) ‘‘Form SB–2’’ (OMB Control No. material off-balance sheet arrangements CFR 229.303]. Deleting that portion of the 3235–0418); and a table of certain contractual instructions does not in any way reduce the (4) ‘‘Form S–4’’ (OMB Control No. obligations in the MD&A section of their availability of any existing safe harbor for forward- 3235–0324); looking information. filings with the Commission. We are 144 See, e.g., Item 303(c) of Regulation S–K [17 adopting these rules pursuant to the 147 See, e.g., Item 303(c)(2)(i) of Regulation S–K CFR 229.303(c)]. [17 CFR 229.303(c)(2)(i)]. legislative mandate in section 401(a) of 145 See 15 U.S.C. 77z–2 and 78u–5. 152 148 See, e.g., Item 303(c)(2)(ii) of Regulation S–K the Sarbanes-Oxley Act of 2002. 146 While the statutory safe harbors by their terms [17 CFR 229.303(c)(2)(ii)]. Because this provision Compliance with the revised disclosure do not apply to forward-looking statements does not apply to the required table of contractual included in financial statements prepared in requirements is mandatory. There is no obligations, registrants should tailor the required accordance with U.S. GAAP, they do cover MD&A mandatory retention period for the cautionary language to the specific forward-looking disclosures. The statutory safe harbors would not statements being made. information disclosed, and responses to apply, however, if the MD&A forward-looking 149 the disclosure requirements will not be statement were made in connection with: an initial Although we are proposing amendments to public offering, a tender offer, an offering by a Regulations S–B and S–K, the burden is imposed kept confidential. partnership or a limited liability company, a roll- through the forms that refer to the disclosure up transaction, a going private transaction, an regulations. To avoid a Paperwork Reduction Act B. Paperwork Burden Estimates inventory reflecting duplicative burdens, we offering by a blank check company or a penny stock For purposes of the Paperwork issuer, or an offering by an issuer convicted of estimate the burdens imposed by Regulations S–B specified securities violations or subject to certain and S–K to be one hour. Reduction Act, we estimated the annual injunctive or cease and desist actions. See 15 U.S.C. 150 44 U.S.C. 3501 et seq. 77z–2(b) and 78u–5(b). 151 44 U.S.C. 3507(d) and 5 CFR 1320.11. 152 Pub. L. 107–204 Sec. 401(a) [15 U.S.C. 78m(j)].

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incremental paperwork burden for all house personnel time and a cost of Current MD&A rules require disclosure companies to prepare the disclosure approximately $5500 for professional of the registrant’s material commitments required under the amendments to be services) and 13 hours for quarterly for capital expenditures as of the end of approximately 366,337 hours of reports (9.75 hours in-house personnel the latest fiscal period.159 We also company personnel time and the time and a cost of approximately $975 believe that the treasury functions of incremental cost to be approximately for professional services). The most registrants track and monitor $44,795,000 for the services of outside paperwork burden estimate for payments due under purchase professionals.153 That estimate includes preparing one annual report and three obligations for internal control and the time and the cost of in-house quarterly reports is 61 hours (46 hours budgeting purposes. Therefore, the preparation of the disclosure, reviews in-house personnel time and a cost of paperwork burden in our estimate by executive officers, in-house counsel, approximately $4600 for professional reflects the time it will take to draft and outside counsel, independent auditors services). review the required disclosures, but not and members of the audit committee.154 Because the paperwork burden to initially collect the information. It does not include the full cost of estimates reflect a three-year period, we Accordingly, we are not changing our establishing systems to collect and averaged the first year estimates with initial estimates that have been monitor the information because a later year estimates to account for the submitted to OMB. In response to the registrant must already do so to prepare fact that registrants would become commenters’ concerns that the its financial statements, comply with accustomed to the disclosure Proposing Release underestimated the current disclosure requirements and requirements after the first year and paperwork burden, we are not reducing maintain adequate internal controls. therefore spend less time preparing the our estimates even though we have We derived the paperwork burden disclosure over the two subsequent refined the definition of ‘‘off-balance estimates by estimating the total amount years. The submission to OMB also sheet arrangements,’’ specified the of time it will take a company to prepare reduced the burden to account for particular contractual obligations to be each item of the disclosure. We estimate issuers that do not engage in off-balance included in the table and eliminated the that in the first year, the off-balance sheet arrangements and for issuers that table or text of contingent liabilities or sheet disclosure will take 14.5 hours for include identical MD&A sections in commitments. annual reports and proxy statements (11 more than one filing covering the same V. Cost-Benefit Analysis hours in-house personnel time and a period (e.g., Form 10–K and Form S–1). cost of approximately $1100 for A. Background C. Responses to Request for Comments professional services), 16 hours for In accordance with the directive in registration statements (4 hours in- We requested comment on the PRA section 401(a) of the Sarbanes-Oxley house personnel time and a cost of analysis contained in the Proposing Act,160 the Commission is adopting approximately $3600 for professional Release and received the following amendments to disclosure rules services) and 10 hours for quarterly responses. Two commenters believed regarding a company’s off-balance sheet reports (7.5 hours in-house personnel that the average estimate of 37 hours per arrangements. The amendments require time and a cost of approximately $750 registrant underestimated the disclosure to improve investors’ for professional services). We estimate compliance burden.155 One commenter understanding of a company’s overall that in the first year, the disclosure of provided an estimated burden of financial condition, changes in financial contractual obligations will take 7.5 approximately 150 to 190 hours to condition and results of operations. The hours for annual reports and proxy implement the rule.156 Another amendments require companies that are statements (5.5 hours in-house commenter believed that compliance reporting, raising capital in the personnel time and a cost of with the proposed requirement to registered public markets or asking approximately $600 for professional include a tabular or textual disclosure of shareholders for their votes to provide services), 8.5 hours for registration contractual obligations and contingent information about their off-balance statements (2 hours in-house personnel liabilities and commitments would sheet arrangements and an aggregate time and a cost of approximately $1900 require most companies to implement overview of their known contractual for professional services) and 3 hours tracking and monitoring systems for obligations in tabular format. for each quarterly report (2.25 hours in- contractual obligations and B. Objectives of Amendments house personnel time and a cost of commitments (which would cost approximately $225 for professional approximately $75,000 to $125,000 for The amendments seek to improve services). Our estimates for the software, with annual personnel costs of transparency of disclosure regarding a preparation time for all of the disclosure $90,000 to $125,000, plus an additional company’s off-balance sheet items in the first year are 22 hours for $25,000 for other costs).157 arrangements and to provide an annual reports and proxy statements We believe that registrants already overview of aggregate contractual (16.5 hours in-house personnel time and must collect the information required by obligations. We believe that a cost of approximately $1650 for the amendments in order to prepare improvement in the quality of professional services), 24.5 hours for their financial statements, meet their information in these areas is necessary registration statements (6 hours in- existing disclosure requirements and to for investors to better understand a maintain adequate internal controls. For company’s current and future financial 153 For convenience, the estimated PRA hour example, U.S. GAAP currently requires position and current and future sources burdens have been rounded to the nearest whole of liquidity. Moreover, because number, and the estimated PRA cost burdens have registrants to disclose information about been rounded to the nearest $1,000. guarantees, contractual obligations 154 In connection with other recent rulemakings, under leases and long-term debt.158 Interpretation No. 45, paragraph 13. See also, FASB we have had discussions with several private law SFAS No. 13, Accounting for Leases (Nov. 1976); firms to estimate an hourly rate of $300 as the cost SFAS No. 47, Disclosure of Long-Term Obligations 155 of outside professionals that assist companies in See, e.g., the letters of CSC and Eaton. (March 1981); and SFAS No. 129, Disclosure of preparing these disclosures. For Securities Act 156 See, e.g., the letter of FTNC. Information about Capital Structure (Feb. 1997). registration statements, we also consider additional 157 See, e.g., the letter of Troutman. 159 See Item 303(a)(2)(i) of Regulation S–K [17 reviews of the disclosure by underwriters’ counsel 158 See, FASB SFAS No. 5, Accounting for CFR 229.303(a)(2)(i)]. and underwriters. Contingencies (Mar. 1975), paragraph 12 and FASB 160 Pub. L. 107–204 Sec. 401(a) [15 U.S.C. 78m(j)].

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management is in the best position to principles.161 The amendments are decisions and to allocate capital on a monitor and assess those aspects of its designed to work in concert with the more efficient basis. business, it also is in the best position disclosures required by generally E. Costs of Amendments to provide clear explanations and accepted accounting principles to analysis to investors. Our objectives are: provide investors with a deeper, more We estimate that the amendments will • To implement the legislative comprehensive understanding of off- impose a disclosure requirement on mandate in section 401(a) of the balance sheet arrangements employed approximately 9,850 public Sarbanes-Oxley Act; by the registrant. Management is companies.164 We estimate that the • To provide investors with the afforded the flexibility under the disclosure will involve multiple parties, information and analysis necessary to amendments to enhance the factual including in-house preparers, senior gain a more comprehensive content contained in the financial management, in-house counsel, outside understanding of the implications of a statements with its perspective of how counsel, outside auditors, and audit company’s obligations and off-balance sheet arrangements are used committee members. One commenter, contingencies from off-balance sheet in the context of the registrant’s commenting on the types of expenses, arrangements that are neither readily business. believed that companies would incur apparent, nor easily understood, from a significant legal, accounting and reading of the financial statements D. Benefits of the Amendments internal costs (including collection and alone; and The primary anticipated benefit of the monitoring systems) in order to comply • To better inform investors of the amendments is to increase transparency with the proposed disclosure.165 For short- and long-term impact of of a registrant’s financial disclosure. purposes of the Paperwork Reduction payments due under contractual Current market events have evidenced a Act,166 we estimated that company obligations, from both on- and off- need to provide investors with a clearer personnel would spend approximately balance sheet activities, by presenting a understanding of how a company’s off- 366,337 hours per year (37 hours per complete picture in a single location. balance sheet arrangements materially company) to prepare, review and file the With a greater understanding of off- affect the financial statements and proposed disclosure. Based on our balance sheet arrangements and company performance.162 The estimated cost of in-house staff time, we contractual obligations, investors should amendments are intended to enhance estimated that the PRA hour-burden be better able to understand how a the utility of the disclosure in the would translate into an approximate company conducts significant aspects of MD&A section by providing more cost of $45,792,000 ($5,000 per its business (including financing), to information, including management’s company).167 We also estimated that assess the quality of earnings and to analysis, of off-balance sheet companies would spend approximately understand the risks that are not arrangements. In addition, the tabular $44,795,000 ($5,000 per company) on apparent on the face of the financial disclosure of contractual obligations is outside professionals to comply with statements. designed to provide investors with an the disclosure.168 In response to our request for comment, one commenter C. Regulatory Approach understanding of the liquidity and capital resource need and demands in estimated the annual cost for a large We are adopting principles-based short- and long-term time horizons. multinational company to be about $2 disclosure requirements that are By making information about off- million.169 One commenter noted that, bolstered by four specific disclosure balance sheet arrangements and in view of the limited number of public items to provide basic information about contractual obligations available and companies that may have failed to off-balance sheet arrangements. The more understandable, the amendments provide disclosures, it had significant principle governing our regulatory will benefit investors both directly and reservations about whether the approach is that registrants should indirectly through the financial analysts additional cost of regulation is disclose information to the extent that it and the credit rating agencies whose justified.170 is necessary to an understanding of its analyses investors consider.163 In We believe the amendments will not off-balance sheet arrangements and their addition, the amendments should substantially increase the costs to effect on financial condition, changes in benefit investors because the collect the information necessary to financial condition, revenues or enumerated disclosure will likely be prepare the disclosure. This information expenses, results of operations, more comparable across all firms and should largely be readily available from liquidity, capital expenditures or capital consistent over time. Greater each company’s books and records. resources. To militate against obscure transparency will thus enable investors Since management should be fully disclosure, the amendments include to make more informed investment apprised of off-balance sheet four disclosure items that are designed arrangements and contractual to result in a focused and descriptive 161 See FASB Interpretation No. 45, Guarantor’s discussion of the registrant’s material Accounting and Disclosure Requirements for 164 We estimate that about 80% of the number of off-balance sheet arrangements. This Guarantees, Including Indirect Guarantees of registrants who filed annual reports last year will provide the disclosure. approach attempts to balance the need Indebtedness of Others (Nov. 2002); FASB Interpretation No. 46, Consolidation of Variable 165 See, e.g., the letter of Pfizer. for registrants to have flexibility when Interest Entities (Jan. 2003); and FASB SFAS No. 166 44 U.S.C. 3501 et seq. drafting financial disclosure with 129, Disclosure of Information about Capital 167 We estimate the average hourly cost of in- investors’ needs for more transparency. Structure (Feb. 1997). house personnel to be $125. This cost estimate is While the amendments could be 162 See, e.g., Paquita Y. Davis-Friday et. al., The based on data obtained from The SIA Report on Management and Professional Earnings in the considered less prescriptive than the Value Relevance of Financial Statement Recognition vs. Disclosure: Evidence from SFAS No. Securities Industry (Oct. 2001). proposed rules, we believe that we have 106, 74 The Accounting Review 403 (Oct. 1999). 168 To derive our estimates for the Paperwork preserved the benefits to investors of the 163 See, e.g., Kent L. Womack, Do Brokerage Reduction Act, we multiplied the number of filers disclosure requirements for off-balance Analysts’ Recommendations have Investment for each form by the incremental hours per form. sheet arrangements. Value? 51 Journal of Finance 137 (1996). See also, The portion of the product carried by the company R. Mear and M. Firth, Risk Perceptions of Financial is reflected in hours and the portion carried by Certain disclosures required by this Analysts and the Use of Market and Accounting outside professionals is reflected as a cost. amendment are already required by Data, 18 Accounting and Business Research 335 169 See, e.g., the letter of Pfizer. generally accepted accounting (1988). 170 See, e.g., the letter of KPMG.

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obligations in the ordinary course of table of contractual obligations in its could result from the disclosure.172 The managing the company, maintaining MD&A, we encourage small business likelihood that competitors could infer adequate internal controls and issuers to identify for investors the proprietary information must be preparing the financial statements, the relevant financial footnotes that contain weighed against investors’ needs for amendments may not impose significant information about certain contractual transparency of financial arrangements incremental costs for the collection and obligations. and resultant risk exposures. The calculation of data. amendments attempt to mitigate In assessing the cost of the VI. Effects on Efficiency, Competition competitive harm by requiring amendments, we have considered and Capital Formation disclosure to the extent necessary for an possible unintended consequences. One Section 23(a)(2) of the Exchange understanding of a registrant’s off- possible unintended consequence of the Act 171 requires us, when adopting rules balance sheet arrangements and their amendments is that a registrant’s under the Exchange Act, to consider the financial effects. Seven commenters competitors may be able to infer anti-competitive effects. In addition, believed that the proposal to require proprietary information from the section 23(a)(2) prohibits us from tabular or textual disclosure of disclosure. For example, a registrant’s adopting any rule that would impose a contingent liabilities would cause competitors may infer that the registrant burden on competition not necessary or competitive harm to the extent that such has adopted a particular strategy based appropriate in furtherance of the disclosure could negatively influence on disclosure about its off-balance sheet purposes of the Exchange Act. We have the outcome of the contingency.173 We arrangements. In addition, a registrant considered the amendments in are not adopting that proposal at this may be discouraged from developing accordance with the standards in time. innovative financing techniques if a section 23(a)(2). Section 2(b) of the Securities Act 174 175 competitor may be able to copy the The amendments require disclosure of and section 3(f) of the Exchange Act technique at little cost. The information that is essential to an require us, when engaging in amendments could impose additional understanding of the ways that a rulemaking that requires us to consider costs to the extent that the disclosure company conducts its business and the or determine whether an action is would deter legitimate uses of off- potential material risks that the necessary or appropriate in the public balance sheet arrangements. company may face as a result. The interest, to consider, in addition to the protection of investors, whether the F. Foreign Private Issuers amendments also enhance the transparency of financial information action will promote efficiency, The amendments apply to foreign competition and capital formation. We private issuers the same MD&A that is neither readily apparent, nor easily understood, from a reading of the believe the amendments will promote disclosure requirements that apply to market efficiency by making U.S. companies. Foreign private issuers, financial statements alone. The amendments are intended to make information about off-balance sheet however, are not required to file arrangements, and their impact on the quarterly reports with the Commission. information about off-balance sheet arrangements and their impact on a presentation of the company’s financial Thus, unless a foreign private issuer position, more understandable. In public company’s financial condition, files a registration statement that must addition, information about payments changes in financial condition and include interim period financial under known contractual obligations operating results more understandable statements and related MD&A will be aggregated and presented in a to investors. The amendments also will disclosure, it generally will not be single location. As a result, we believe provide an overview of a company’s required to update the MD&A disclosure that investors may be able to make more known contractual obligations, which more frequently than annually. informed investment decisions and will improve an investors’ ability to Therefore, the cost of compliance could capital may be allocated on a more assess the liquidity and capital resource be lower for foreign private issuers than efficient basis. for U.S. companies. It is possible, needs of a company over short- and however, that foreign private issuers long-term time periods. VII. Final Regulatory Flexibility will incur greater expenses in In the Proposing Release, we Analysis connection with the required identified two possible areas where the This Final Regulatory Flexibility reconciliation to U.S. GAAP, but only if rules could potentially place a burden Analysis (‘‘FRFA’’) has been prepared in a discussion of the differences in on competition. First, the amendments accordance with the Regulatory accounting is necessary for an could burden competition to the extent Flexibility Act.176 This FRFA relates to understanding of the financial that the disclosure may deter legitimate amendments to Item 303 of Regulation statements as a whole. uses of off-balance sheet arrangements. S–K,177 Item 303 of Regulation S–B,178 Second, there is a possibility that a Item 5 of Form 20–F 179 and General G. Small Business Issuers company’s competitors could be able to Instruction B of Form 40–F.180 The The amendments do not require that infer proprietary or sensitive amendments require public companies small businesses provide tabular information from the company’s to discuss off-balance sheet disclosure about contractual obligations. disclosure about its off-balance sheet arrangements and to provide a table of This information is currently required to arrangements. We requested comment aggregate contractual obligations as of be disclosed in various locations in regarding the degree to which the filings. While it would be useful to proposed disclosure requirements 172 See, e.g., the letters of AFP, Boeing and Pfizer. investors if this information were would create competitively harmful 173 See, e.g., the letters of AICPA, Eaton, E&Y, disclosed in a single location, we effects upon public companies and how D&T, Intel, Troutman and PwC. to minimize those effects. Three 174 15 U.S.C. 77b(b). believe that excluding small business 175 commenters on the Proposing Release 15 U.S.C. 78c(f). issuers from this requirement is 176 5 U.S.C. 603. consistent with the policies underlying expressed concerns about the sensitivity 177 17 CFR 229.303. the small business issuer disclosure and potential competitive harm that 178 17 CFR 228.303. system. Although a small business 179 17 CFR 249.220f. issuer is not required to provide the 171 15 U.S.C. 78w(a)(2). 180 17 CFR 249.240f.

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the latest fiscal year end balance sheet • To provide investors with the We believe that off-balance sheet date. The disclosure will be included in information and analysis necessary to arrangements involving small entities the MD&A section of a public gain a more comprehensive are most likely to be operating leases, company’s annual reports, quarterly understanding of the implications of a but we did not receive any comments reports, registration statements and company’s obligations and substantiating that belief. In our proxy and information statements. contingencies from off-balance sheet Paperwork Reduction Act analysis, we arrangements that are neither readily A. Need for the Amendments estimated that the cost of in-house staff apparent, nor easily understood, from a time would translate into an On July 30, 2002, the Sarbanes-Oxley reading of the financial statements approximate cost of $4,000 per 181 Act of 2002 was enacted. Section 401 alone; and company.187 This figure may be lower • of the Sarbanes-Oxley Act, entitled To better inform investors of the for a small entity if its average hourly ‘‘Disclosures in Periodic Reports,’’ aggregate impact of short- and long-term cost for its personnel were lower than requires the Commission to adopt final contractual obligations, from both on- $125, but we did not receive any rules by January 26, 2003 (180 days after and off-balance sheet activities, by specific data regarding these estimates. the date of enactment) that require a presenting a complete picture in a single We also estimated that companies company, in each annual and quarterly location. would spend approximately $5,000 per financial report that it files with the With a greater understanding of a Commission, to disclose ‘‘all material company on outside professionals to company’s off-balance sheet 188 off-balance sheet transactions, comply with the disclosure. This arrangements and contractual figure may be lower for a small entity arrangements, obligations (including obligations, investors will be better able contingent obligations), and other if its average hourly cost of outside to understand how a company conducts professionals were lower than $300, but relationships of the issuer with significant aspects of its business and to unconsolidated entities or other we did not receive any substantiating assess the quality of a company’s data. persons, that may have a material earnings and the risks that are not current or future effect on financial apparent on the face of the financial D. Projected Reporting, Recordkeeping condition, changes in financial statements. and Other Compliance Requirements condition, results of operations, liquidity, capital expenditures, capital B. Significant Issues Raised by Public The amendments will impose resources, or significant components of Comment reporting and recordkeeping 182 revenues or expenses.’’ The The Initial Regulatory Flexibility requirements on the class of small Commission is adopting the Analysis (‘‘IRFA’’) appeared in the entities subject to our reporting amendments to fulfill that legislative Proposing Release. We requested requirements, either due to Securities mandate. The amendments address the comment on any aspect of the IRFA, Act registration or by the Exchange Act lack of transparency of off-balance sheet including the number of small entities reporting requirements. The arrangements in a public company’s that would be affected by the proposals, amendments will subject this class of financial disclosure. The amendments the nature of the impact, how to small entities to reporting and address this problem by requiring a quantify the number of small entities recordkeeping requirements in discussion of off-balance sheet that would be affected and how to connection with drafting, reviewing, arrangements in a public company’s quantify the impact of the proposals. We filing, printing and disseminating MD&A. The potential consequences of received no comment letters responding disclosure in annual reports, registration not taking this action to require to that request. statements, proxy or information disclosure regarding the off-balance statements and quarterly reports. The sheet arrangements are: (a) Less C. Small Entities Subject to the transparency in the presentation of Amendments data underlying the disclosure about off- balance sheet transactions should be companies’ financial statements and, The amendments would affect correspondingly, a lesser understanding readily available from a company’s companies that are small entities. books and records. Since management of companies’ financial condition, 183 Securities Act Rule 157 and should be fully apprised of material off- changes in financial condition and 184 Exchange Act Rule 0–10(a) define a balance sheet arrangements to fulfill its results of operations when making company, other than an investment investment decisions; and (b) a potential existing disclosure requirements and to company, to be a ‘‘small business’’ or maintain proper internal controls, the decrease in investor confidence in the ‘‘small organization’’ if it had total full and fair disclosure system that is amendments may not impose significant assets of $5 million or less on the last incremental costs related to the the hallmark of the U.S. capital markets. day of its most recent fiscal year. We collection and calculation of data. Small The amendments seek to improve estimate that there are approximately entities will either utilize existing transparency of a company’s off-balance 2,500 companies, other than investment personnel or hire an outside sheet arrangements and aggregate companies, that may be considered contractual obligations. We believe that small entities. The amendments would professional to provide the required improvements in the quality of apply to any small entity that fulfills its disclosure. information in these areas will promote disclosure obligations by complying investor understanding of a company’s with our standard disclosure 187 We estimate the average hourly cost of in- current and future financial position. 185 house personnel to be $125. This cost estimate is requirements or with our optional based on data obtained from The SIA Report on Our objectives are: disclosure system available only to Management and Professional Earnings in the • To implement the legislative small businesses.186 Securities Industry (Oct. 2001). mandate in section 401(a) of the 188 To derive our estimates for the Paperwork Reduction Act, we multiplied the number of filers Sarbanes-Oxley Act; 183 17 CFR 230.157. for each form by the incremental hours per form. 184 17 CFR 270.0–10(a). The portion of the product carried by the company 181 Pub. L. 107–204, 116 Stat. 745 (2002). 185 Regulation S–K, 17 CFR 229.10–229.1016. is reflected in hours and the portion carried by 182 Pub. L. 107–204 Sec. 401 [15 U.S.C. 78m(j)]. 186 Regulation S–B, 17 CFR 228.10–228.701. outside professionals is reflected as a cost.

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E. Agency Action To Minimize Effect on with the amendments for three reasons. Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j, Small Entities First, we believe the disclosure will be 77k, 77s, 77z–2, 77z–3, 77aa(25), 77aa(26), 77ddd, 77eee, 77ggg, 77hhh, 77jjj, 77nnn, Because section 401(a) of the easier to implement and more useful to investors with enumerated 77sss, 78l, 78m, 78n, 78o, 78u–5, 78w, 78ll, Sarbanes-Oxley Act does not distinguish 78mm, 80a–8, 80a–29, 80a–30, 80a–37 and between small entities and other informational requirements. The 80b–11. required disclosures may be likely to companies, we interpret Congress’ Section 228.303 is also issued under secs. directive to the Commission to adopt result in a more focused and comprehensive discussion of the 3(a) and 401(a), Pub. L. No. 107–204, 116 rules requiring expanded disclosure Stat. 745. about off-balance sheet transactions to company’s off-balance sheet apply equally to small entities and to arrangements. Second, mandated * * * * * other public companies. However, we disclosures regarding off-balance sheet 2. Section 228.303 is amended by: were able to further ease the regulatory arrangements may benefit investors in a. Removing the phrase ‘‘paragraph burden on small entities by excluding small entities because the enumerated (a)’’ and adding, in its place, the phrase small business issuers from the tabular disclosure under the amendments likely ‘‘paragraphs (a) and (c)’’ in the first disclosure requirement about will be more comparable across all firms sentence of the introductory text; contractual obligations. Tabular and consistent over time. Third, a b. Removing the phrase ‘‘paragraph disclosure of contractual obligations mandated discussion of a company’s (b)’’ and adding, in its place, the phrase was not mandated by the Sarbanes- off-balance sheet arrangements is ‘‘paragraphs (b) and (c)’’ in the second Oxley Act. That information is currently uniquely suited to the MD&A disclosure sentence of the introductory text; required to be disclosed in various in light of MD&A’s emphasis on the c. Adding paragraph (c); locations in filings. While it would be identification of significant d. Adding Instructions 1 through 5 to useful to investors if this information uncertainties and events and favorable paragraph (c) of Item 303; and or unfavorable trends. Therefore, adding e. Adding paragraph (d). were disclosed in a single location, we The additions read as follows: believe that excluding small business a disclosure requirement to the existing issuers from this requirement would MD&A appears to be the most effective § 228.303 (Item 303) Management’s reduce their regulatory burden. method of eliciting the disclosure. discussion and analysis or plan of As required by the Regulatory Because section 401(a) of the operation. Flexibility Act, we have considered Sarbanes-Oxley Act does not distinguish * * * * * alternatives that would accomplish our between small entities and other (c) Off-balance sheet arrangements. stated objectives, while minimizing any companies, we do not believe it is (1) In a separately-captioned section, significant adverse impact on small appropriate to exempt small entities discuss the small business issuer’s off- entities. In connection with the from the requirement to discuss off- balance sheet arrangements that have or amendments, we considered the balance sheet arrangements. We have, are reasonably likely to have a current following alternatives: however, excluded small business or future effect on the small business (a) The establishment of differing issuers from the requirement to provide issuer’s financial condition, changes in compliance or reporting requirements or tabular disclosure of contractual financial condition, revenues or timetables that take into account the obligations. expenses, results of operations, resources available to small entities; VIII. Statutory Authority and Text of liquidity, capital expenditures or capital (b) The clarification, consolidation, or Rule Amendments resources that is material to investors. simplification of disclosure for small The disclosure shall include the items entities; The amendments contained in this specified in paragraphs (c)(1)(i), (ii), (iii) (c) The use of performance rather than release are being adopted under the and (iv) of this Item to the extent design standards; and authority set forth in sections 7, 10, 19, necessary to an understanding of such (d) An exemption for small entities 27A and 28 of the Securities Act, arrangements and effect and shall also from all or part of the amendments. sections 12, 13, 14, 21E, 23 and 36 of the include such other information that the We have drafted the amendments to Exchange Act and sections 3(a) and small business issuer believes is require clear and straightforward 401(a) of the Sarbanes-Oxley Act of necessary for such an understanding. disclosure of off-balance sheet 2002. (i) The nature and business purpose to arrangements in MD&A. Separate the small business issuer of such off- List of Subjects in 17 CFR Parts 228, disclosure requirements regarding off- balance sheet arrangements; 229 and 249 balance sheet arrangements for small (ii) The importance to the small entities will not yield the disclosure that Reporting and recordkeeping business issuer of such off-balance sheet we believe is necessary to achieve our requirements, Securities. arrangements in respect of its liquidity, objectives. In addition, the capital resources, market risk support, informational needs of investors in Text of Amendments credit risk support or other benefits; (iii) small entities are typically as great as In accordance with the foregoing, The amounts of revenues, expenses and the needs of investors in larger Title 17, Chapter II, of the Code of cash flows of the small business issuer companies. Therefore, it does not seem Federal Regulations is amended as arising from such arrangements; the appropriate to develop separate follows: nature and amounts of any interests requirements with regard to off-balance retained, securities issued and other sheet arrangements for small entities PART 228—INTEGRATED indebtedness incurred by the small that clarify, consolidate or simplify the DISCLOSURE SYSTEM FOR SMALL business issuer in connection with such amendments. We have, however, BUSINESS ISSUERS arrangements; and the nature and excluded small business issuers from amounts of any other obligations or the requirement to provide tabular 1. The authority citation for Part 228 liabilities (including contingent disclosure of contractual obligations. is amended by adding the following obligations or liabilities) of the small We have used design rather than citation in numerical order to read as business issuer arising from such performance standards in connection follows: arrangements that are or are reasonably

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likely to become material and the development services with, the small provided by the issuer or information triggering events or circumstances that business issuer. derived from information provided by could cause them to arise; and Instructions to paragraph (c) of Item the issuer. (iv) Any known event, demand, 303. 1. No obligation to make disclosure (2) For purposes of paragraph (d) of commitment, trend or uncertainty that under paragraph (c) of this Item shall this Item only: will result in or is reasonably likely to arise in respect of an off-balance sheet (i) All information required by result in the termination, or material arrangement until a definitive paragraph (c) of this Item is deemed to reduction in availability to the small agreement that is unconditionally be a ‘‘forward looking statement’’ as that business issuer, of its off-balance sheet binding or subject only to customary term is defined in the statutory safe arrangements that provide material closing conditions exists or, if there is harbors, except for historical facts. benefits to it, and the course of action no such agreement, when settlement of (ii) With respect to paragraph (c) of that the small business issuer has taken the transaction occurs. this Item, the meaningful cautionary or proposes to take in response to any 2. Small business issuers should statements element of the statutory safe such circumstances. aggregate off-balance sheet arrangements harbors will be satisfied if a small (2) As used in paragraph (c) of this in groups or categories that provide business issuer satisfies all requirements Item, the term off-balance sheet material information in an efficient and of that same paragraph (c) of this Item. arrangement means any transaction, understandable manner and should agreement or other contractual avoid repetition and disclosure of PART 229—STANDARD arrangement to which an entity immaterial information. Effects that are INSTRUCTIONS FOR FILING FORMS unconsolidated with the small business common or similar with respect to a UNDER SECURITIES ACT OF 1933, issuer is a party, under which the small number of off-balance sheet SECURITIES EXCHANGE ACT OF 1934 business issuer has: arrangements must be analyzed in the AND ENERGY POLICY AND (i) Any obligation under a guarantee aggregate to the extent the aggregation CONSERVATION ACT OF 1975— contract that has any of the increases understanding. Distinctions in REGULATION S–K characteristics identified in paragraph 3 arrangements and their effects must be of FASB Interpretation No. 45, discussed to the extent the information 3. The authority citation for Part 229 Guarantor’s Accounting and Disclosure is material, but the discussion should is amended by adding the following Requirements for Guarantees, Including avoid repetition and disclosure of citation in numerical order to read as Indirect Guarantees of Indebtedness of immaterial information. follows: Others (November 2002) (‘‘FIN 45’’), as 3. For purposes of paragraph (c) of Authority: 15 U.S.C. 77e, 77f, 77g, 77h, 77j, may be modified or supplemented, and this Item only, contingent liabilities 77k, 77s, 77z–2, 77z–3, 77aa(25), 77aa(26), that is not excluded from the initial arising out of litigation, arbitration or 77ddd, 77eee, 77ggg, 77hhh, 77iii, 77jjj, recognition and measurement regulatory actions are not considered to 77nnn, 77sss, 78c, 78i, 78j, 78l, 78m, 78n, provisions of FIN 45 pursuant to be off-balance sheet arrangements. 78o, 78u–5, 78w, 78ll 78mm, 79e, 79j, 79n, paragraphs 6 or 7 of that Interpretation; 4. Generally, the disclosure required 79t, 80a–8, 80a–9, 80a–20, 80a–29, 80a–30, (ii) A retained or contingent interest by paragraph (c) of this Item shall cover 80a–31(c), 80a–37, 80a–38(a), 80a–39 and in assets transferred to an the most recent fiscal year. However, the 80b–11, unless otherwise noted. unconsolidated entity or similar discussion should address changes from Section 229.303 is also issued under secs. arrangement that serves as credit, the previous year where such discussion 3(a) and 401(a), Pub. L. No. 107–204, 116 liquidity or market risk support to such is necessary to an understanding of the Stat. 745. entity for such assets; disclosure. * * * * * (iii) Any obligation, including a 5. In satisfying the requirements of 4. Section 229.303 is amended by: contingent obligation, under a contract paragraph (c) of this Item, the a. Removing the authority citation that would be accounted for as a discussion of off-balance sheet following § 229.303; derivative instrument, except that it is arrangements need not repeat b. Removing the phrase ‘‘paragraphs both indexed to the small business information provided in the footnotes to (a)(1), (2) and (3) with respect to issuer’s own stock and classified in the financial statements, provided that liquidity, capital resources and results stockholders’ equity in the small such discussion clearly cross-references of operations’’ and adding, in its place, business issuer’s statement of financial to specific information in the relevant the phrase ‘‘paragraphs (a)(1) through position, and therefore excluded from footnotes and integrates the substance of (5) of this Item’’ in the second sentence the scope of FASB Statement of the footnotes into such discussion in a of the introductory text of paragraph (a); Financial Accounting Standards No. manner designed to inform readers of c. Removing the phrase ‘‘or for those 133, Accounting for Derivative the significance of the information that fiscal years beginning after December Instruments and Hedging Activities is not included within the body of such 25, 1979,’’ in paragraph (a)(3)(iv); (June 1998), pursuant to paragraph 11(a) discussion. d. Adding paragraphs (a)(4) and (a)(5) of that Statement, as may be modified or (d) Safe harbor. (1) The safe harbor before the ‘‘Instructions to Paragraph supplemented; or provided in section 27A of the 303(a)’’; (iv) Any obligation, including a Securities Act of 1933 (15 U.S.C. 77z– e. Removing the second sentence of contingent obligation, arising out of a 2) and section 21E of the Securities Instruction 2 of ‘‘Instructions to variable interest (as referenced in FASB Exchange Act of 1934 (15 U.S.C. 78u– Paragraph 303(a)’’; Interpretation No. 46, Consolidation of 5) (‘‘statutory safe harbors’’) shall apply f. Removing the first three sentences Variable Interest Entities (January 2003), to forward-looking information of Instruction 7 of ‘‘Instructions to as may be modified or supplemented) in provided pursuant to paragraph (c) of Paragraph 303(a)’’; an unconsolidated entity that is held by, this Item, provided that the disclosure is g. Removing the first sentence of and material to, the small business made by: an issuer; a person acting on Instruction 6 of ‘‘Instructions to issuer, where such entity provides behalf of the issuer; an outside reviewer Paragraph (b) of Item 303’’; financing, liquidity, market risk or retained by the issuer making a h. Adding Instructions 1 through 5 to credit risk support to, or engages in statement on behalf of the issuer; or an paragraph 303(a)(4) at the end of leasing, hedging or research and underwriter, with respect to information ‘‘Instructions to Paragraph 303(a)’’;

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i. Adding Instruction 7 to arrangements that are or are reasonably excluded from the scope of FASB ‘‘Instructions to Paragraph (b) of Item likely to become material and the Statement of Financial Accounting 303’’; and triggering events or circumstances that Standards No. 133, Accounting for j. Adding paragraph (c). could cause them to arise; and Derivative Instruments and Hedging The additions read as follows: (D) Any known event, demand, Activities (June 1998), pursuant to commitment, trend or uncertainty that paragraph 11(a) of that Statement, as § 229.303 (Item 303) Management’s will result in or is reasonably likely to discussion and analysis of financial may be modified or supplemented; or condition and results of operations. result in the termination, or material reduction in availability to the (D) Any obligation, including a (a) * * * registrant, of its off-balance sheet contingent obligation, arising out of a (4) Off-balance sheet arrangements. (i) arrangements that provide material variable interest (as referenced in FASB In a separately-captioned section, benefits to it, and the course of action Interpretation No. 46, Consolidation of discuss the registrant’s off-balance sheet that the registrant has taken or proposes Variable Interest Entities (January 2003), arrangements that have or are to take in response to any such as may be modified or supplemented) in reasonably likely to have a current or circumstances. an unconsolidated entity that is held by, future effect on the registrant’s financial (ii) As used in this paragraph (a)(4), and material to, the registrant, where condition, changes in financial the term off-balance sheet arrangement such entity provides financing, condition, revenues or expenses, results means any transaction, agreement or liquidity, market risk or credit risk of operations, liquidity, capital other contractual arrangement to which support to, or engages in leasing, expenditures or capital resources that is an entity unconsolidated with the hedging or research and development material to investors. The disclosure registrant is a party, under which the services with, the registrant. shall include the items specified in registrant has: (5) Tabular disclosure of contractual paragraphs (a)(4)(i)(A), (B), (C) and (D) (A) Any obligation under a guarantee of this Item to the extent necessary to an obligations. (i) In a tabular format, contract that has any of the provide the information specified in this understanding of such arrangements characteristics identified in paragraph 3 and effect and shall also include such paragraph (a)(5) as of the latest fiscal of FASB Interpretation No. 45, year end balance sheet date with respect other information that the registrant Guarantor’s Accounting and Disclosure to the registrant’s known contractual believes is necessary for such an Requirements for Guarantees, Including obligations specified in the table that understanding. Indirect Guarantees of Indebtedness of follows this paragraph (a)(5)(i). The (A) The nature and business purpose Others (November 2002) (‘‘FIN 45’’), as registrant shall provide amounts, to the registrant of such off-balance may be modified or supplemented, and aggregated by type of contractual sheet arrangements; that is not excluded from the initial (B) The importance to the registrant of recognition and measurement obligation. The registrant may such off-balance sheet arrangements in provisions of FIN 45 pursuant to disaggregate the specified categories of respect of its liquidity, capital resources, paragraphs 6 or 7 of that Interpretation; contractual obligations using other market risk support, credit risk support (B) A retained or contingent interest categories suitable to its business, but or other benefits; in assets transferred to an the presentation must include all of the (C) The amounts of revenues, unconsolidated entity or similar obligations of the registrant that fall expenses and cash flows of the arrangement that serves as credit, within the specified categories. A registrant arising from such liquidity or market risk support to such presentation covering at least the arrangements; the nature and amounts entity for such assets; periods specified shall be included. The of any interests retained, securities (C) Any obligation, including a tabular presentation may be issued and other indebtedness incurred contingent obligation, under a contract accompanied by footnotes to describe by the registrant in connection with that would be accounted for as a provisions that create, increase or such arrangements; and the nature and derivative instrument, except that it is accelerate obligations, or other pertinent amounts of any other obligations or both indexed to the registrant’s own data to the extent necessary for an liabilities (including contingent stock and classified in stockholders’ understanding of the timing and amount obligations or liabilities) of the equity in the registrant’s statement of of the registrant’s specified contractual registrant arising from such financial position, and therefore obligations.

Payments due by period More than 5 Contractual obligations Less than 1 3–5 years years Total year 1–3 years

[Long-Term Debt Obligations] ...... [Capital Lease Obligations] ...... [Operating Lease Obligations] ...... [Purchase Obligations] ...... [Other Long-Term Liabilities Reflected on the Registrant’s Balance Sheet under GAAP] ......

Total ......

(ii) Definitions: The following borrowings referenced in FASB (B) Capital Lease Obligation means a definitions apply to this paragraph Statement of Financial Accounting payment obligation under a lease (a)(5): Standards No. 47 Disclosure of Long- classified as a capital lease pursuant to (A) Long-Term Debt Obligation means Term Obligations (March 1981), as may FASB Statement of Financial a payment obligation under long-term be modified or supplemented. Accounting Standards No. 13

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Accounting for Leases (November 1976), footnotes and integrates the substance of a. Adding Items 5.E through 5.G; as may be modified or supplemented. the footnotes into such discussion in a b. Adding Instructions to 5.E; and (C) Operating Lease Obligation means manner designed to inform readers of c. Adding Instructions to Item 5.F to a payment obligation under a lease the significance of the information that read as follows: classified as an operating lease and is not included within the body of such Note: Form 20–F does not, and this disclosed pursuant to FASB Statement discussion. amendment will not, appear in the Code of of Financial Accounting Standards No. (b) * * * Federal Regulations. 13 Accounting for Leases (November Instructions to Paragraph (b) of Item 1976), as may be modified or 303: Form 20–F supplemented. * * * * * * * * * * (D) Purchase Obligation means an 7. The registrant is not required to agreement to purchase goods or services include the table required by paragraph Item 5. Operating and Financial Review that is enforceable and legally binding (a)(5) of this Item for interim periods. and Prospects on the registrant that specifies all Instead, the registrant should disclose * * * * * significant terms, including: fixed or material changes outside the ordinary minimum quantities to be purchased; course of the registrant’s business in the E. Off-Balance Sheet Arrangements fixed, minimum or variable price specified contractual obligations during 1. In a separately-captioned section, provisions; and the approximate timing the interim period. discuss the company’s off-balance sheet of the transaction. (c) Safe harbor. (1) The safe harbor arrangements that have or are Instructions to Paragraph 303(a): provided in section 27A of the reasonably likely to have a current or * * * * * Securities Act of 1933 (15 U.S.C. 77z– future effect on the company’s financial Instructions to Paragraph 303(a)(4): 2) and section 21E of the Securities condition, changes in financial 1. No obligation to make disclosure Exchange Act of 1934 (15 U.S.C. 78u– condition, revenues or expenses, results under paragraph (a)(4) of this Item shall 5) (‘‘statutory safe harbors’’) shall apply of operations, liquidity, capital arise in respect of an off-balance sheet to forward-looking information expenditures or capital resources that is arrangement until a definitive provided pursuant to paragraphs (a)(4) material to investors. The disclosure agreement that is unconditionally and (5) of this Item, provided that the shall include the items specified in binding or subject only to customary disclosure is made by: an issuer; a Items 5.E.1(a), (b), (c) and (d) of this closing conditions exists or, if there is person acting on behalf of the issuer; an Item to the extent necessary to an no such agreement, when settlement of outside reviewer retained by the issuer understanding of such arrangements the transaction occurs. making a statement on behalf of the and effect, and shall also include such 2. Registrants should aggregate off- issuer; or an underwriter, with respect other information that the company balance sheet arrangements in groups or to information provided by the issuer or believes is necessary for such an categories that provide material information derived from information understanding. information in an efficient and provided by the issuer. (a) The nature and business purpose understandable manner and should (2) For purposes of paragraph (c) of to the company of such off-balance avoid repetition and disclosure of this Item only: sheet arrangements; immaterial information. Effects that are (i) All information required by (b) The importance to the company of common or similar with respect to a paragraphs (a)(4) and (5) of this Item is such off-balance sheet arrangements in number of off-balance sheet deemed to be a forward looking respect of its liquidity, capital resources, arrangements must be analyzed in the statement as that term is defined in the market risk support, credit risk support aggregate to the extent the aggregation statutory safe harbors, except for or other benefits; increases understanding. Distinctions in historical facts. (c) The amounts of revenues, arrangements and their effects must be (ii) With respect to paragraph (a)(4) of expenses and cash flows of the company discussed to the extent the information this Item, the meaningful cautionary arising from such arrangements; the is material, but the discussion should statements element of the statutory safe nature and amounts of any interests avoid repetition and disclosure of harbors will be satisfied if a registrant retained, securities issued and other immaterial information. satisfies all requirements of that same indebtedness incurred by the company 3. For purposes of paragraph (a)(4) of paragraph (a)(4) of this Item. in connection with such arrangements; this Item only, contingent liabilities and the nature and amounts of any other arising out of litigation, arbitration or PART 249—FORMS, SECURITIES obligations or liabilities (including regulatory actions are not considered to EXCHANGE ACT OF 1934 contingent obligations or liabilities) of be off-balance sheet arrangements. the company arising from such 4. Generally, the disclosure required 5. The authority citation for Part 249 arrangements that are or are reasonably by paragraph (a)(4) shall cover the most is amended by revising the sectional likely to become material and the recent fiscal year. However, the authority for 249.220f and 249.240f to triggering events or circumstances that discussion should address changes from read as follows: could cause them to arise; and the previous year where such discussion Authority: 15 U.S.C. 78a et seq., unless (d) Any known event, demand, is necessary to an understanding of the otherwise noted. commitment, trend or uncertainty that disclosure. Section 249.220f is also issued under secs. will result in or is reasonably likely to 5. In satisfying the requirements of 3(a), 302, 306(a), 401(a), 401(b), 406 and 407, result in the termination, or material Pub. L. No. 107–204, 116 Stat. 745. paragraph (a)(4) of this Item, the Section 249.240f is also issued under secs. reduction in availability to the discussion of off-balance sheet 3(a), 302, 306(a), 401(a), 406 and 407, Pub. company, of its off-balance sheet arrangements need not repeat L. No. 107–204, 116 Stat. 745. arrangements that provide material information provided in the footnotes to * * * * * benefits to it, and the course of action the financial statements, provided that that the company has taken or proposes such discussion clearly cross-references 6. Form 20–F (referenced in to take in response to any such to specific information in the relevant § 249.220f), Item 5 is amended by: circumstances.

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2. As used in this Item 5.E., the term (c) Any obligation under a derivative as of the latest fiscal year end balance off-balance sheet arrangement means instrument that is both indexed to the sheet date with respect to the company’s any transaction, agreement or other company’s own stock and classified in known contractual obligations specified contractual arrangement to which an stockholders’ equity, or not reflected, in in the table that follows this Item 5.F.1. entity unconsolidated with the company the company’s statement of financial The company shall provide amounts, is a party, under which the company position; or aggregated by type of contractual has: (d) Any obligation, including a obligation. The company may (a) Any obligation under a guarantee contingent obligation, arising out of a disaggregate the specified categories of contract that has any of the variable interest (as referenced in FASB contractual obligations using other characteristics identified in paragraph 3 Interpretation No. 46, Consolidation of categories suitable to its business, but of FASB Interpretation No. 45, Variable Interest Entities (January 2003), the presentation must include all of the Guarantor’s Accounting and Disclosure as may be modified or supplemented) in obligations of the company that fall Requirements for Guarantees, Including an unconsolidated entity that is held by, within the specified categories. A Indirect Guarantees of Indebtedness of and material to, the company, where presentation covering at least the Others (November 2002) (‘‘FIN 45’’), as such entity provides financing, may be modified or supplemented, liquidity, market risk or credit risk periods specified shall be included. The excluding the types of guarantee support to, or engages in leasing, tabular presentation may be contracts described in paragraphs 6 and hedging or research and development accompanied by footnotes to describe 7 of FIN 45; services with, the company. provisions that create, increase or (b) A retained or contingent interest in accelerate obligations, or other pertinent assets transferred to an unconsolidated F. Tabular Disclosure of Contractual data to the extent necessary for an entity or similar arrangement that serves Obligations understanding of the timing and amount as credit, liquidity or market risk 1. In a tabular format, provide the of the company’s specified contractual support to such entity for such assets; information specified in this Item 5.F.1 obligations.

Payments due by period Contractual obligations Less than 1 More than 5 Total year 1–3 years 3–5 years years

[Long-Term Debt Obligations] ...... [Capital (Finance) Lease Obligations] ...... [Operating Lease Obligations] ...... [Purchase Obligations] ...... [Other Long-Term Liabilities Reflected on the Company’s Balance Sheet under the GAAP of the primary financial statements] ......

Total ......

2. As used in this Item 5.F.1, the term statement’’ as that term is defined in the arrangements and their effects must be purchase obligation means an statutory safe harbors, except for discussed to the extent the information agreement to purchase goods or services historical facts. is material, but the discussion should that is enforceable and legally binding 3. With respect to Item 5.E, the avoid repetition and disclosure of on the company that specifies all meaningful cautionary statements immaterial information. significant terms, including: fixed or element of the statutory safe harbors 3. For purposes of paragraph Item 5.E minimum quantities to be purchased; will be satisfied if a company satisfies only, contingent liabilities arising out of fixed, minimum or variable price all requirements of that same Item 5.E. litigation, arbitration or regulatory provisions; and the approximate timing * * * * * actions are not considered to be off- of the transaction. Instructions to Item 5.E: balance sheet arrangements. 1. No obligation to make disclosure 4. Generally, the disclosure required G. Safe Harbor under Item 5.E shall arise in respect of by Item 5.E shall cover the most recent 1. The safe harbor provided in section an off-balance sheet arrangement until a fiscal year. However, the discussion 27A of the Securities Act and section definitive agreement that is should address changes from the 21E of the Exchange Act (‘‘statutory safe unconditionally binding or subject only previous year where such discussion is harbors’’) shall apply to forward-looking to customary closing conditions exists necessary to an understanding of the information provided pursuant to Item or, if there is no such agreement, when disclosure. 5.E and F, provided that the disclosure settlement of the transaction occurs. 5. In satisfying the requirements of is made by: an issuer; a person acting on 2. Companies should aggregate off- Item 5.E, the discussion of off-balance behalf of the issuer; an outside reviewer balance sheet arrangements in groups or sheet arrangements need not repeat retained by the issuer making a categories that provide material information provided in the footnotes to statement on behalf of the issuer; or an information in an efficient and the financial statements, provided that underwriter, with respect to information understandable manner and should such discussion clearly cross-references provided by the issuer or information avoid repetition and disclosure of to specific information in the relevant derived from information provided by immaterial information. Effects that are footnotes and integrates the substance of the issuer. common or similar with respect to a the footnotes into such discussion in a 2. For purposes of Item 5.G.1 of this number of off-balance sheet manner designed to inform readers of Item only, all information required by arrangements must be analyzed in the the significance of the information that Item 5.E.1 and 5.E.2 of this Item is aggregate to the extent the aggregation is not included within the body of such deemed to be a ‘‘forward looking increases understanding. Distinctions in discussion.

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Instructions to Item 5.F: understanding of such arrangements excluding the types of guarantee 1. The company is not required to and effect and shall also include such contracts described in paragraphs 6 and include the table required by Item 5.F.1 other information that the registrant 7 of FIN 45; for interim periods. Instead, the believes is necessary for such an (B) A retained or contingent interest company should disclose material understanding. in assets transferred to an changes outside the ordinary course of (A) The nature and business purpose unconsolidated entity or similar the company’s business in the specified to the registrant of such off-balance arrangement that serves as credit, contractual obligations during the sheet arrangements; liquidity or market risk support to such interim period. (B) The importance to the registrant of entity for such assets; 2. Except for ‘‘purchase obligations,’’ such off-balance sheet arrangements in (C) Any obligation under a derivative the contractual obligations in the table respect of its liquidity, capital resources, instrument that is both indexed to the required by Item 5.F.1 should be based market risk support, credit risk support registrant’s own stock and classified in on the classifications used in the or other benefits; and stockholders’ equity, or not reflected, in (C) The amounts of revenues, generally accepted accounting the company’s statement of financial expenses and cash flows of the principles under which the company position; or prepares its primary financial registrant arising from such arrangements; the nature and amounts (D) Any obligation, including a statements. If the generally accepted contingent obligation, arising out of a accounting principles under which the of any interests retained, securities issued and other indebtedness incurred variable interest (as referenced in FASB company prepares its primary financial Interpretation No. 46, Consolidation of statements do not distinguish between by the registrant in connection with such arrangements; and the nature and Variable Interest Entities (January 2003), capital (finance) leases and operating as may be modified or supplemented) in leases, then present all leases under one amounts of any other obligations or liabilities (including contingent an unconsolidated entity that is held by, category. and material to, the registrant, where * * * * * obligations or liabilities) of the registrant arising from such such entity provides financing, 7. Form 40–F (referenced in arrangements that are or are reasonably liquidity, market risk or credit risk § 249.240f) is amended by adding likely to become material and the support to, or engages in leasing, paragraphs (11) through (13) and triggering events or circumstances that hedging or research and development Instructions to General Instruction B. to could cause them to arise. services with, the registrant. read as follows: (D) Any known event, demand, (12) Tabular disclosure of contractual Note: The text of Form 40–F does not, and commitment, trend or uncertainty that obligations. (i) In a tabular format, this amendment will not, appear in the Code will result in or is reasonably likely to provide the information specified in this of Federal Regulations. result in the termination, or material General Instruction B.(12) as of the reduction in availability to the latest fiscal year end balance sheet date Form 40–F registrant, of its off-balance sheet with respect to the registrant’s known * * * * * arrangements that provide material contractual obligations specified in the benefits to it, and the course of action table that follows this General General Instructions that the registrant has taken or proposes Instruction B.(12). The registrant shall * * * * * to take in response to any such provide amounts, aggregated by type of circumstances. contractual obligation. The registrant B. Information To Be Filed on this Form (ii) As used in this General Instruction may disaggregate the specified * * * * * B.(11), the term off-balance sheet categories of contractual obligations (11) Off-balance sheet arrangements. arrangement means any transaction, using other categories suitable to its (i) In a separately-captioned section, agreement or other contractual business, but the presentation must discuss the registrant’s off-balance sheet arrangement to which an entity include all of the obligations of the arrangements that have or are unconsolidated with the registrant is a registrant that fall within the specified reasonably likely to have a current or party, under which the registrant has: categories. A presentation covering at future effect on the registrant’s financial (A) Any obligation under a guarantee least the periods specified shall be condition, changes in financial contract that has any of the included. The tabular presentation may condition, revenues or expenses, results characteristics identified in paragraph 3 be accompanied by footnotes to describe of operations, liquidity, capital of FASB Interpretation No. 45, provisions that create, increase or expenditures or capital resources that is Guarantor’s Accounting and Disclosure accelerate obligations, or other pertinent material to investors. The disclosure Requirements for Guarantees, Including data to the extent necessary for an shall include the items specified in this Indirect Guarantees of Indebtedness of understanding of the timing and amount General Instruction B.(11)(i)(A), (B), (C) Others (November 2002) (‘‘FIN 45’’), as of the registrant’s specified contractual and (D) to the extent necessary to an may be modified or supplemented, obligations.

Payments due by period Contractual obligations Less than 1 More than 5 Total year 1–3 years 3–5 years years

[Long-Term Debt Obligations] ...... [Capital (Finance) Lease Obligations] ...... [Operating Lease Obligations] ...... [Purchase Obligations] ...... [Other Long-Term Liabilities Reflected on the Registrant’s Balance Sheet under the GAAP of the primary financial statements] ......

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Payments due by period Contractual obligations Less than 1 More than 5 Total year 1–3 years 3–5 years years

Total ......

(ii) As used in this General Instruction 1. No obligation to make disclosure arrangements need not repeat B.(12), the term purchase obligation under General Instruction B.(11) shall information provided in the footnotes to means an agreement to purchase goods arise in respect of an off-balance sheet the financial statements, provided that or services that is enforceable and arrangement until a definitive such discussion clearly cross-references legally binding on the registrant that agreement that is unconditionally to specific information in the relevant specifies all significant terms, including: binding or subject only to customary footnotes and integrates the substance of fixed or minimum quantities to be closing conditions exists or, if there is the footnotes into such discussion in a purchased; fixed, minimum or variable no such agreement, when settlement of manner designed to inform readers of price provisions; and the approximate the transaction occurs. the significance of the information that timing of the transaction. 2. Registrants should aggregate off- is not included within the body of such (13) Safe harbor. (i) The safe harbor balance sheet arrangements in groups or discussion. provided in section 27A of the categories that provide material 6. The registrant is not required to Securities Act and section 21E of the information in an efficient and include the table required by General Exchange Act (‘‘statutory safe harbors’’) understandable manner and should Instruction B.(12) for interim periods. shall apply to forward-looking avoid repetition and disclosure of Instead, the registrant should disclose information provided pursuant to immaterial information. Effects that are material changes outside the ordinary General Instruction B.(11) and (12) of common or similar with respect to a course of the registrant’s business in the this Form 40–F, provided that the number of off-balance sheet specified contractual obligations during disclosure is made by: an issuer; a arrangements must be analyzed in the the interim period. person acting on behalf of the issuer; an aggregate to the extent the aggregation increases understanding. Distinctions in 7. Except for ‘‘purchase obligations,’’ outside reviewer retained by the issuer the contractual obligations in the table making a statement on behalf of the arrangements and their effects must be discussed to the extent the information required by General Instruction B.(12) issuer; or an underwriter, with respect should be based on the classifications to information provided by the issuer or is material, but the discussion should avoid repetition and disclosure of used in the generally accepted information derived from information accounting principles under which the provided by the issuer. immaterial information. 3. For purposes of paragraph General registrant prepares its primary financial (ii) For purposes of paragraph (i) of Instruction B.(11) only, contingent statements. If the generally accepted this General Instruction B.(13) only, all liabilities arising out of litigation, accounting principles under which the information required by General arbitration or regulatory actions are not registrant prepares its primary financial Instruction B.(11) and (12) of this Form considered to be off-balance sheet statements do not distinguish between 40–F is deemed to be a ‘‘forward looking arrangements. capital (finance) leases and operating statement’’ as that term is defined in the 4. Generally, the disclosure required leases, then present all leases under one statutory safe harbors, except for by General Instruction B.(11) shall cover category. historical facts. the most recent fiscal year. However, the * * * * * (iii) With respect to General discussion should address changes from By the Commission. Instruction B.(11), the meaningful the previous year where such discussion Dated: January 28, 2003. cautionary statements element of the is necessary to an understanding of the statutory safe harbors will be satisfied if disclosure. Jill M. Peterson, a registrant satisfies all requirements of 5. In satisfying the requirements of Assistant Secretary. that same General Instruction B.(11). General Instruction B.(11), the [FR Doc. 03–2365 Filed 2–4–03; 8:45 am] Instructions: discussion of off-balance sheet BILLING CODE 8010–01–P

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Part III

Securities and Exchange Commission 17 CFR Parts 210, 240, et al. Strengthening the Commission’s Requirements Regarding Auditor Independence; Final Rule

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SECURITIES AND EXCHANGE an audit partner received compensation (1) For the ‘‘lead’’ and ‘‘concurring’’ COMMISSION based on selling engagements to that partner, the period of service includes client for services other than audit, time previously served as the ‘‘lead’’ or 17 CFR Parts 210, 240, 249 and 274 review and attest services. ‘‘concurring’’ partner prior to May 6, As described further in the release, 2003; and [Release No. 33–8183; 34–47265; 35–27642; these rules also will have an impact on (2) For audit partners other than the IC–25915; IA–2103, FR–68, File No. S7–49– 02] foreign accounting firms that conduct ‘‘lead’’ partner or ‘‘concurring’’ partner, audits of foreign subsidiaries and and for audit partners in foreign firms, RIN 3235–AI73 affiliates of U.S. issuers, as well as of the period of service does not include foreign private issuers. Many of the time served on the audit engagement Strengthening the Commission’s modifications to the proposed rules, team prior to the first day of issuer’s Requirements Regarding Auditor such as those limiting the scope of fiscal year beginning on or after May 6, Independence partner rotation and personnel subject 2003. to the ‘‘cooling off period,’’ have the AGENCY: Securities and Exchange FOR FURTHER INFORMATION CONTACT: added benefit of addressing particular Commission. Samuel L. Burke, Associate Chief concerns raised about the international Accountant, Paul Munter, Academic ACTION: Final rule. implications of these requirements. Fellow, or Robert E. Burns, Chief Moreover, additional time is being SUMMARY: The Securities and Exchange Counsel, at (202) 942–4400, Office of the afforded to foreign accounting firms Commission (‘‘SEC’’ or ‘‘Commission’’) Chief Accountant, or, with respect to with respect to compliance with is adopting amendments to its existing questions about investment companies, rotation requirements. The release also requirements regarding auditor Brian D. Bullard, Chief Accountant, at provides guidance on the provision of independence to enhance the (202) 942–0590, Division of Investment non-audit services by foreign accounting independence of accountants that audit Management, U.S. Securities and firms, including the treatment of legal and review financial statements and Exchange Commission, 450 Fifth Street, services and tax services. prepare attestation reports filed with the NW., Washington, DC 20549. Commission. The final rules recognize DATES: Effective Date: May 6, 2003. SUPPLEMENTARY INFORMATION: We are the critical role played by audit Transition Dates: Provided the adding Rule 2–07 to Regulation S–X,1 committees in the financial reporting following relationships did not impair amending Rule 2–01 of Regulation S– process and the unique position of audit the accountant’s independence under X,2 amending Item 9 of Regulation S–K,3 committees in assuring auditor pre-existing requirements of the amending Forms 10–K, 10–KSB, 20–F 4 5 independence. Consistent with the Commission, the Independence and 40–F, amending Form N–CSR direction of Section 208(a) of the Standards Board, or the accounting and adding new Exchange Act Rule 6 Sarbanes-Oxley Act of 2002, we are profession in the United States, an 10A–2. accountant’s independence will not be adopting rules to: revise the I. Introduction and Background Commission’s regulations related to the deemed to be impaired: (1) By employment relationships On July 30, 2002, the Sarbanes-Oxley non-audit services that, if provided to described in § 210.2–01(c)(2)(iii)(B) that Act of 2002 (‘‘Sarbanes-Oxley Act’’ or an audit client, would impair an commenced at the issuer prior to May ‘‘the Act’’) was enacted.7 Title II of the accounting firm’s independence; require 6, 2003; Sarbanes-Oxley Act, entitled ‘‘Auditor that an issuer’s audit committee pre- (2) By compensation earned or Independence,’’ requires the approve all audit and non-audit services received, as described in § 210.2– Commission to adopt, by January 26, provided to the issuer by the auditor of 01(c)(8), during the accounting firm’s 2003, final rules under which certain an issuer’s financial statements; prohibit fiscal year that includes May 6, 2003; non-audit services will be prohibited, certain partners on the audit (3) Until May 6, 2004 by the provision conflict of interest standards will be engagement team from providing audit of services described in § 210.2–01(c)(4) strengthened, auditor partner rotation services to the issuer for more than five provided those services are pursuant to and second partner review requirements or seven consecutive years, depending contracts in existence on May 6, 2003; will be strengthened, and the on the partner’s involvement in the (4) Until May 6, 2003 by the provision relationship between the independent audit, except that certain small of services that have not been pre- auditor and the audit committee will be accounting firms may be exempted from approved by an audit committee as clarified and enhanced. this requirement; prohibit an accounting required in § 210.2–01(c)(7); We are adopting amendments to our firm from auditing an issuer’s financial (5) An accountant’s independence current rules regarding auditor statements if certain members of will not be deemed to be impaired until independence.8 The final rules advance management of that issuer had been the first day of the issuer’s fiscal year our important policy goal of protecting members of the accounting firm’s audit beginning after May 6, 2003 by a ‘‘lead’’ the millions of people who invest in our engagement team within the one-year partner and other audit partner (other securities markets in reliance on period preceding the commencement of than the ‘‘concurring’’ partner) financial statements that are prepared audit procedures; require that the providing services in excess of those by public companies and other issuers auditor of an issuer’s financial permitted under § 210.2–01(c)(6); and statements report certain matters to the (6) An accountant’s independence 1 17 CFR 210.2–07. issuer’s audit committee, including will not be deemed to be impaired until 2 17 CFR 210.2–01. ‘‘critical’’ accounting policies used by the first day of the issuer’s fiscal year 3 17 CFR 240.14a–101. the issuer; and require disclosures to beginning after May 6, 2004 by a 4 17 CFR 249.310; 17 CFR 249.310b; 17 CFR investors of information related to audit ‘‘concurring’’ partner providing services 249.220f; 17 CFR 249.240f. and non-audit services provided by, and 5 17 CFR 249.331; 17 CFR 274.128. in excess of those permitted under 6 fees paid to, the auditor of the issuer’s § 210.2–01(c)(6). 17 CRF 240.10A–2. 7 Pub. L. 107–204, 116 Stat. 745 (2002). financial statements. In addition, under For the purposes of calculating 8 The amendments were proposed in Securities the final rules, an accountant would not periods of service under § 210.2– Act Release No. 8154 (December 2, 2002) 67 FR be independent from an audit client if 01(c)(6): 76779–76817.

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and that, as required by Congress, are pre-approve allowable non-audit II of Sarbanes-Oxley not only define audited by independent auditors. We services and specifies certain exceptions conduct that impairs independence but believe the final rules strike a to the requirement to obtain pre- also constitute separate violations under reasonable balance among commenters’ approval. These rules specify the the Exchange Act. We have otherwise differing views about the proposals requirements of the registrant’s audit adopted rules (except for the proxy while achieving our important public committee for pre-approving non-audit disclosure changes) as part of policy goals.9 services by the auditor of the registrant’s Regulation S–X, and placed them among As directed by the Sarbanes-Oxley financial statements. the current auditor independence Act, the rules focus on key aspects of • Section 203 adds sub-section (j), provisions. auditor independence: the provision of which establishes mandatory rotation of certain non-audit services, the unique the lead partner and the concurring II. Discussion of Rules ability and responsibility of the audit partner every five years. These rules A.Conflicts of Interest Resulting From committee to insulate the auditor from expand the number of engagement Employment Relationships the pressures that may be exerted by personnel covered by the rotation The Commission’s previous rules management, the potential conflict of requirement and clarify the ‘‘time out’’ deem an accounting firm to be not interest that can be created when a period. independent with respect to an audit former member of the audit engagement • Section 204 adds sub-section (k), client if a former partner, principal, team accepts a key management which requires that the auditor report shareholder, or professional employee position with the audit client, and the on a timely basis certain information to of an accounting firm 13 accepts need for effective communications the audit committee. In particular, the employment with a client if he or she between the auditor and audit Sarbanes-Oxley Act requires that the has a continuing financial interest in the committee. In addition, under the final auditor report to the audit committee on accounting firm or is in a position to rules, an accountant would not be a timely basis (a) all critical accounting influence the firm’s operations or independent from an audit client if any policies used by the registrant, (b) financial policies. These rules audit partner received compensation alternative accounting treatments that renumber, but do not otherwise change, based directly on selling engagements to have been discussed with management that existing requirement. that client for services other than audit, along with the potential ramifications of Consistent with Section 206 of the review and attest services. using those alternatives, and (c) other Title II of the Sarbanes-Oxley Act written communications provided by Sarbanes-Oxley Act, we are adding a adds new subsections (g) through (l) to the auditor to management, including a restriction on employment with audit Section 10A of the Securities Exchange schedule of unadjusted audit clients by former employees of the Act of 1934 as follows: differences.11 These rules strengthen the accounting firm. The Act specifies that • Section 201 adds sub-section (g), relationship between the audit an accounting firm cannot perform an which specifies that a number of non- committee and the auditor. audit for a registrant: audit services are prohibited. Many of • Section 206 adds sub-section (l) * * *[i]f a chief executive officer, these services were previously addressing certain conflict of interest controller, chief financial officer, chief prohibited by the Commission’s provisions. The Sarbanes-Oxley Act accounting officer, or any person serving in independence standards adopted in prohibits an accounting firm from an equivalent position for the issuer, was November 2000 (with some exceptions performing audit services for a registrant employed by that registered independent public accounting firm and participated in 10 if certain key members of management and qualifications). The rules we are any capacity in the audit of that issuer adopting amend the Commission’s have recently been employed in an during the 1-year period preceding the date existing rules on auditor independence audit capacity by the audit firm. These of the initiation of the audit.14 (emphasis and clarify the meaning and scope of the rules clarify which members of added) prohibited services under the Sarbanes- management are covered by these Thus, the Act requires a ‘‘cooling off ’’ Oxley Act. conflict of interest rules. • Section 201 also adds sub-section In addition, under the final rules, an period of one year before a member of (h), which requires that non-audit accountant would not be independent of the audit engagement team can begin services that are not prohibited under an audit client if an audit partner working for the registrant in certain key the Sarbanes-Oxley Act and the received compensation based on selling positions. Based on the provisions of the engagements to that client for services Act, we proposed that the employment Commission’s rules be subject to pre- 15 approval by the registrant’s audit other than audit, review and attest of former audit engagement team services. members of an accounting firm in a committee. These rules specify the 16 requirements for obtaining such pre- As noted above, the rules establish financial reporting oversight role at an approval from the registrant’s audit and clarify the important roles and audit client would cause the accounting committee. responsibilities of registrant audit firm not to be independent with respect • Section 202 adds sub-section (i), committees as well as the registrant’s to that registrant if they were members which requires an audit committee to independent accountant.12 of the audit engagement team within We have adopted a separate rule one year prior to the commencement of 9 In addition to soliciting comments in the under Exchange Act Section 10A (17 procedures for the current audit Proposing Release, we held one roundtable CFR 240.10A–2) to implement Section engagement. The rules that we proposed (December 17, 2002). The public comments we 3(b)(1) of the Sarbanes-Oxley Act and would have applied to employment received can be reviewed in our Public Reference relationships entered into between Room at 450 Fifth Street, NW., Washington, DC clarify that our rules implementing Title 20549, in File No. S7–49–02. Public comments submitted by electronic mail are on our Web site, 11 SAS No. 89, ‘‘Audit Adjustments,’’ (Dec. 1999) 13 Consistent with our existing rules, the terms www.sec.gov. at AU § 380. accounting firm and accountant are used 10 The Commission adopted a set of rules 12 The Commission’s rules respond not only to interchangeably in this release. The term governing auditor independence on November 21, the provisions of the Sarbanes-Oxley Act but also ‘‘accountant’’ is defined in § 210.2–01(f)(1) below. 2000. See Release No. 33–7919 (Nov. 21, 2000); 65 the rulemaking petitions filed by the AFL–CIO on 14 See, Section 206 of the Sarbanes-Oxley Act. FR 76008 (Dec. 5, 2000) (hereinafter ‘‘November December 11, 2001 and The Honorable H. Carl 15 See, Rule 2–01(f)(7). 2000 release’’). McCall on January 21, 2002. 16 See, Rule 2–01(f)(3)(ii).

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‘‘audit engagement team’’ members and extending the requirement to the audit that registrant. Our rule applies to all their ‘‘audit clients.’’ 17 client was too broad. In some situations members of the audit engagement team The concept of a ‘‘cooling-off ’’ period (such as certain affiliate companies), it unless specifically exempted, as before an auditor can take a position at could be difficult for the accounting discussed later in this section of the the audit client was previously firm and its audit clients to monitor release. considered by the Independence and, in some cases, control the We agree with the commenters 29 who Standards Board.18 In considering a employment relationship. noted that extending the requirement to cooling-off period, the Independence Our proposed rule did not make a the ‘‘audit client’’ might be difficult to Standards Board noted that a mandated distinction based on the number of monitor because of the potentially broad cooling-off period for partners and hours of audit, review, or attest services scope of that defined term—particularly professional staff might create a greater provided in determining who would be in situations where a member of the appearance of independence between subject to this rule. The Act refers to audit engagement team begins the accounting firm and the registrant.19 individuals who ‘‘participated in any employment with an affiliate of the Ultimately, however, the Independence capacity in the audit.’’ Commenters 24 audit client.30 Accordingly, the rules Standards Board provided for an noted that not all members of the audit that we are adopting apply to alternative to a cooling-off period. The engagement team, as that term is employment relationships entered into Independence Standards Board currently defined, necessarily between members of the audit concluded that: participate in a meaningful audit engagement team and the ‘‘issuer.’’ 31 An audit firm’s independence is impaired capacity. The Commission recognizes that, in with respect to an audit client that employs As discussed both in our proposing certain instances, there are individuals a former firm professional who could, by release and in this release, the term who meet the definition of engagement reason of his or her knowledge of and ‘‘financial reporting oversight role’’ team members while spending a relationships with the audit firm, adversely refers to any individual who has direct relatively small amount of time on influence the quality or effectiveness of the responsibility for oversight over those audit-related matters of the issuer. For audit, unless the firm has taken steps that who prepare the registrant’s financial example, a staff member may be asked effectively eliminate such risk.20 statements and related information (e.g., to spend one day of time to observe Independence Standards Board’s management’s discussion and analysis) inventory. While the input may have Standard No. 3 specifically notes that that are included in filings with the been important to resolving specific additional caution is warranted when it Commission. Some commenters 25 aspects of the audit, the staff member has been less than one year since the stated that the final rule only should likely has not had significant interaction professional disassociated him or apply to the four named positions in the with the audit engagement team or herself from the firm.21 The provisions Act (e.g., chief executive officer, management of the issuer. However, it of the Sarbanes-Oxley Act reflect the controller, chief financial officer, chief is likely that those who spent more than view that the passage of time is an accounting officer). Other a de minimis amount of time on the additional safeguard to reduce the commenters,26 however, agreed with the engagement team did participate in a perceived loss of independence for the Commission’s approach of using the meaningful audit capacity. Because of audit firm caused by the acceptance of concept of financial reporting oversight their roles in the engagement, the lead employment by a member of the role. and concurring partner always should engagement team with an audit client. In response to the issues raised by participate in a meaningful audit 22 27 Some commenters stated that the commenters, we are requiring that capacity, regardless of the number of rule should apply only to partners on when the lead partner, the concurring hours spent on the engagement. the audit engagement team. However, partner, or any other member of the In order to provide useful guidance, we believe that the Act is clear that the audit engagement team 28 who provides our rule on conflicts of interest resulting cooling off period should apply more more than ten hours of audit, review or from employment relationships broadly. Additionally, our proposal attest services for the issuer accepts a specifies that, other than the lead and would have applied to relationships position with the issuer in a financial concurring partner, an individual 32 between members of the audit reporting oversight role within the one must provide more than ten hours of engagement team and the audit client. year period preceding the 33 23 service during the annual audit period Some commenters believe that commencement of audit procedures for as a member of the engagement team to the year that included employment by 17 have participated in an audit capacity. See, Rule 2–01(f)(6). the issuer of the former member of the The Commission previously has 18 The Independence Standards Board was a audit engagement team, the accounting private sector body that, from 1997 to 2001, was considered a threshold based on the charged with the responsibility to set auditor firm is not independent with respect to number of hours of service and, based independence standards for auditors of the on our experience, concluded that use financial statements of SEC registrants. See 24 See, e.g., letter from American Institute of Financial Reporting Release Nos. 50 (February 18, Certified Public Accountants, dated January 9, of ten hours of service to the client 1998) and 50A (July 17, 2001). 2003; letter from KPMG, dated January 9, 2003; 19 Independence Standards Board, ‘‘Employment letter from Instituted of Chartered Accountants of 29 See, e.g., letter from KPMG, dated January 9, with Audit Clients,’’ Discussion Memorandum 99– Scotland, dated January 8, 2003. 2003; letter from PricewaterhouseCoopers, dated 1 (March 12, 1999). 25 See, e.g., letter from Eli Lilly and Company, January 8, 2003. 20 Independence Standards Board, ‘‘Employment dated January 9, 2003; letter from McGladrey & 30 See, Rule 2–01(f)(4). with Audit Clients,’’ Standard No. 3 (July 2000). Pullen LLP, dated January 9, 2003; letter from 31 See, Section 3(a)(8) of the Securities Exchange 21 Id., ¶ 2(b)(iii). PricewaterhouseCoopers, dated January 8, 2003; Act of 1934 (15 U.S.C. 78c(a)(8)). 22 See, e.g., letter from Asahi & Co., dated January letter from Computer Sciences Corporation, dated 32 It should be noted that the ten hour threshold 10, 2003; letter from CPA Associates, dated January January 13, 2003. does not apply to the lead or concurring review 3, 2003; letter from International Group of 26 See, e.g., letter from Consumer Federation of partner. Such individuals are always subject to Accounting Firms, dated December 24, 2002. America, dated January 13, 2003. these rules, regardless of the number of hours of 23 See, e.g., letter from Eli Lilly and Company, 27 See, e.g., letter from Deloitte & Touche, dated audit, review or attest services provided. dated January 9, 2003; letter from KPMG, dated January 10, 2003; letter from KPMG, dated January 33 This includes hours of service provided in January 9, 2003; letter from 9, 2003; letter from PricewaterhouseCoopers, dated reviewing the issuer’s quarterly filing or in PricewaterhouseCoopers, dated January 8, 2003; January 8, 2003. providing attest services for the issuer related to the letter from Roland G. Ley, dated January 9, 2003. 28 See, Rule 2–01(f)(7). audit.

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constitutes a reasonable basis for example, some commenters 36 have employment with Issuer A in a financial distinguishing whether there has been stated that in certain foreign jurisdiction reporting oversight role prior to March participation on the audit.34 it may be extremely difficult or costly to 11, 2005, the accounting firm would be The Commission has determined that comply with these requirements. deemed to be not independent with using the ‘‘financial reporting oversight Accordingly, we have provided an respect to Issuer A. For example, if role’’ is a better test for the scope of the additional exemption for emergency or person B last performed audit, review or provision than the four particular unusual circumstances which we attest services for Issue A on March 24, officers named in the Act. As discussed anticipate being invoked very rarely. 2003 and he or she began employment However, in order for a company to in the definitions section of this release, with Issuer A in a financial reporting avail itself of this exemption, the audit the term financial reporting oversight oversight role prior to March 11, 2005, committee 37 must determine that doing role is not a new concept. Furthermore, the accounting firm would be deemed to so is in the best interests of investors. in addition to naming four specific be not independent with respect to Some commenters 38 stated that Issuer A. Likewise, if person B provided positions, the Act also states that the determining the time period of the cooling off period applies to ‘‘any audit, review or attest services for Issuer prohibition would be difficult to apply A at any time during the 2004 person serving in an equivalent position as proposed. We recognize the engagement period (April 6, 2004— for the issuer.’’ Because issuers do not difficulties when there is, potentially, a March 10, 2005) and he or she began use uniform titles nor do all named different applicable date for each employment with Issuer A in a financial positions (e.g., controller) have uniform member of the engagement team. For reporting oversight role prior to March duties among all issuers, we believe that that reason, our final rule adopts a 31, 2006, the accounting firm would be a more complete definition of the uniform date for all members of the deemed to be not independent with applicable positions is needed. engagement team. respect to Issuer A. Furthermore, the term financial For purposes of this rule, audit The Act specifies that the cooling off reporting oversight role captures other procedures are deemed to have period must be one year. Under our key positions, such as members of the commenced for the current audit rules, the prohibition would require that board of directors, who may have engagement period the day after the the accounting firm has completed one significant interaction with the audit prior year’s periodic annual report (e.g., annual audit 39 subsequent to when an engagement team. Form 10–K, 10–KSB, 20–F or 40–F) is individual was a member of the audit While the rule is intended to apply filed with the Commission. The audit engagement team. As previously broadly to members of the audit engagement period for the current year discussed, the measurement period is engagement team, we recognize the is deemed to conclude the day the based upon the dates the issuer filed its need to provide accommodations for current year’s periodic annual report annual financial information with the certain unique situations. In addition to (for example, Form 10–K, 10–KSB, 20– Commission. the exemption discussed previously for F or 40–F) is filed with the Commission. With respect to investment those who provided ten or fewer hours To illustrate the application of this companies, we proposed that the of audit, review, or attest services, the rule, assume that Issuer A’s Forms 10– employment of a former audit final rule provides an exception for K are filed on March 15, 2003, April 5, engagement team member in a financial conflicts that are created through merger 2004, March 10, 2005, and March 30, reporting oversight role at any entity in or acquisition. Some commenters 35 2006. Issuer A is a calendar-year the same investment company complex noted that an individual may have reporting entity. The audit engagement during the one year period after the complied fully with the rule and, periods would be deemed to commence completion of the last audit would subsequent to his or her beginning and end: impair the independence of the employment with an issuer, the issuer accounting firm with respect to the merged with or was acquired by another Engagement audit client. The proposed rule was Annual Pe- Period Com- Engagement entity resulting in he or she becoming riod mences Period Ends designed to prevent a former audit a person in a financial reporting engagement team member from taking a oversight role of the combined entity 2003 March 16, April 5, 2004 position in an investment company and the combined entity being audited 2003. complex where they could influence the by the individual’s previous employer. 2004 April 6, ...... 2004 March preparation of the financial statements In such a situation, unless the 10, 2005 or the conduct of the audit. 2005 March 11, March 30, Several commenters 40 suggested this employment was taken in 2005. 2006 contemplation of the combination, the requirement was too broad and could have unintended consequences, such as individual or the issuer could not be If audit engagement person B preventing a former audit engagement expected to know that his or her provided audit, review or attest services team member on an investment employment decision would result in a for Issuer A at any time during the 2003 company audit engagement from taking conflict. Thus, as long as the audit engagement period (March 16, 2003— a financial reporting position at an committee is aware of this conflict, the April 5, 2004), and he or she begins audit firm would continue to be entity in the investment company complex whose operations are unrelated independent under these rules. 36 See, e.g., letter from Deloitte & Touche, dated Further, we recognize that other January 10, 2003; letter from European Commission, to the investment company. Some unusual situations that may arise. For dated January 13, 2003. 37 These rules do not require the company to have 39 As used here, the term annual audit also an independent audit committee. See, discussion of includes procedures needed to conduct timely 34 Use of ten hours as a threshold is consistent definitions in this release. review of interim periods as well as procedures with the determination of a ‘‘covered person’’ as 38 See, e.g., letter from Ernst & Young, dated needed to attest to the registrant’s internal controls. specified by § 210.2–01(f). January 6, 2003; letter from KPMG, dated January 40 See, letter from Deloitte & Touche, dated 35 See, e.g., letter from Deloitte & Touche, dated 9, 2003; letter from Sullivan & Cromwell LLP, dated January 10, 2003; letter from January 10, 2003; letter from KPMG, dated January January 10, 2003; letter from California Public PricewaterhouseCoopers, dated January 8, 2003; 9, 2003; letter from PricewaterhouseCoopers, dated Employees’ Retirement System, dated January 10, letter from Investment Company Institute, dated January 8, 2003. 2003. January 13, 2003.

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commenters 41 acknowledged, however, employment relationships. Accordingly, firm from performing most, if not all, that it was in investors’ interests to these rules are effective for employment non-audit services. Other commenters 46 prevent audit engagement team relationships with the issuer that supported a less strict approach. members from leaving the firm and commence after the effective date of Consistent with our proposing release,47 assuming a financial reporting oversight these rules. we are adopting rules related to the scope of services that independent role at an entity in the investment B. Scope of Services Provided by accountants can provide to their audit company complex that had Auditors responsibility for the financial reporting clients. In adopting these rules, the or operations of the investment Section 201(a) of the Sarbanes-Oxley Commission is clarifying the scope of company audit client. One Act adds new Section 10A(g) to the the prohibited services. The prohibited commenter 42 suggested the rule should Securities Exchange Act of 1934. Except services contained in these rules only not apply to positions at service as discussed below, this section states apply to non-audit services provided by providers solely because they are in the that it shall be unlawful for a registered independent accountants to their audit investment company complex. public accounting firm that performs an clients. These rules do not limit the Due to the unique structure of audit of an issuer’s financial statements scope of non-audit services provided by investment companies, where the (and any person associated with such a an accounting firm to a non-audit client. normal operating activities, including firm) to provide to that issuer, Under the Act, the responsibility falls activities related to the preparation of contemporaneously with the audit, any on the audit committee to pre-approve financial statements, are provided by non-audit services, including the nine all audit and non-audit services outside service providers, we believe categories of services set forth in the provided by the accountant. the rules need to extend beyond the Act. Additionally, the Act provides that Recognizing that audit clients may investment company itself. After the provision of ‘‘any non-audit service, need a period of time to exit existing considering the comments, we agree, including tax services, that is not contracts our rules provide that until however, that the reach of the rule as described’’ as a prohibited service, can May 6, 2004 the provision of services proposed was too broad and have be provided by the auditor without described in § 210.2–01(c)(4) will not determined to tailor the scope of the impairing the auditor’s independence impair an accountant’s independence rule with respect to investment ‘‘only if’’ the service has been pre- provided those services are pursuant to companies to those situations where approved by the issuer’s audit contracts in existence on May 6, 2003.48 committee. The nine categories of independence could be impaired. As prohibited non-audit services included 1. Bookkeeping or Other Services adopted, an accounting firm would not in the Act are: Related Accounting Records or be independent if a former audit • Bookkeeping or other services Financial Statements of the Audit Client engagement team member is employed related to the accounting records or Previously, an auditor’s independence in a financial reporting oversight role financial statements of the audit client; was impaired if the auditor provided with not only the registered investment • Financial information systems bookkeeping services to an audit client, company, but also with any entity in the design and implementation; except in limited situations, such as in same investment company complex that • Appraisal or valuation services, an emergency or where the services are is responsible for the financial reporting fairness opinions, or contribution-in- provided in a foreign jurisdiction and or operations of the registered kind reports; certain conditions were met. The investment company or any other • Actuarial services; current Rule 2–01(c)(4)(i) continues the registered investment company in the • Internal audit outsourcing services; prohibition on bookkeeping, but we same investment company complex. • Management functions or human have eliminated the limited situations The adopted rule prohibits employment resources; where bookkeeping services could have in positions at an investment company • Broker or dealer, investment been provided under the previous rules. complex that would allow a former adviser, or investment banking services; Some commenters 49 suggested that audit engagement team member to bring • Legal services and expert services bookkeeping services should be undue influence over the audit process unrelated to the audit; and • 43 permitted, especially under the previous of an investment company. The rule Any other service that the Board exceptions. However, our independence recognizes that certain positions exist at determines, by regulation, is an entity in the investment company impermissible. The Commission’s principles of 2003; letter from William E. Fraser, dated November complex that would be considered 26, 2002, letter from Ellen Sweet, dated November financial reporting or oversight independence with respect to services 26, 2002, letter from Council on Institutional positions but those positions have no provided by auditors are largely Investors, dated January 10, 2003. direct influence in the financial predicated on three basic principles, 46 See, e.g., letter from Chamber of Commerce of the United States of America, dated January 9, 2003; reporting or operations of an investment violations of which would impair the auditor’s independence: (1) An auditor letter from America’s Community Bankers, dated company in the investment company January 13, 2003; letter from Deloitte & Touche LLP, complex. In these instances, we believe cannot function in the role of dated January 10, 2003; letter from American tailoring the focus of this rule will not management, (2) an auditor cannot audit Society of Corporate Secretaries, dated January 13, 2003. harm investor interests. his or her own work, and (3) an auditor cannot serve in an advocacy role for his 47 17 CFR parts 210, 240, 249 and 274. We recognize the need to provide for 48 or her client.44 Additionally, in the unusual instance where orderly transition. We believe it would Some commenters 45 stated that the additional time is needed to exit an existing contract, the staff in the Office of the Chief be unfair to expect those who began Commission should prohibit the audit employment before the effective date of Accountant or the Public Company Accounting Oversight Board may be consulted on a case by case these rules to be asked to sever those 43 As used in this section of the Act, the term basis. Board refers to the Public Company Accounting 49 See, e.g., letter from American Institute of 41 See, letter from Investment Company Institute, Oversight Board. Certified Public Accountants, dated January 9, dated January 13, 2003; letter from Deloitte & 44 See, Preliminary note to Rule 2–01 of 2003; letter from Radin, Gloss & Co., dated Touche, dated January 10, 2003. Regulation S–X, 17 CFR 210.2–01. December 31, 2002; letter from Grant Thornton LLP, 42 See, letter from PricewaterhouseCoopers dated 45 See, e.g., letter from California Public dated January 13, 2003; letter from International January 8, 2003. Employees’ Retirement System, dated January 10, Federation of Accountants, dated January 10, 2003.

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rules are predicated on the three basic independence would be impaired where rule provided that an accountant is not principles enumerated earlier. One of the accountant prepared the statutory deemed independent if the accountant those principles is that an auditor financial statements if those statements designs or implements a hardware or cannot audit his or her own work and form the basis of the financial software system that aggregates source maintain his or her independence. statements that are filed with us. Under data underlying the financial statements When an accounting firm provides these circumstances, an accountant or or generates information that is bookkeeping services for an audit client, accounting firm who has prepared the significant to the audit client’s financial the firm may be put in the position of statutory financial statements of an statements taken as a whole. These later auditing the accounting firm’s own audit client is put in the position of services were deemed to impair an work. If, during an audit, an accountant auditing its own work when auditing accountant’s independence under our must audit the bookkeeping work the resultant U.S. GAAP financial previous rules. performed by his or her accounting firm, statements. Some commenters 53 suggested that it is questionable that the accountant With respect to the prohibitions on (1) the Commission’s rules should include could, or that a reasonable investor bookkeeping; (2) financial information a dollar threshold limit or other would believe that the accountant systems design and implementation; (3) qualifying language. Others 54 suggested could, remain objective and impartial. If appraisal, valuation, fairness opinions, that the Commission should clarify that the accountant found an error in the or contribution-in-kind reports; (4) the prohibition on designing and bookkeeping, the accountant could well actuarial; and (5) internal audit implementing systems would include be under pressure not to raise the issue outsourcing, the rules state that the selecting and testing a client’s financial with the client if raising the issue could service may not be provided ‘‘unless it information system. Commenters 55 also jeopardize the firm’s contract with the is reasonable to conclude that the believe that the Commission should client for bookkeeping services or result results of these services will not be clarify that recommendations for in heightened litigation risk for the firm. subject to audit procedures during an improvements in the systems should be In addition, keeping the books is a audit of the audit client’s financial permitted. 51 management function, which also is statements.’’ As proposed, for The Commission is adopting rules, prohibited.50 bookkeeping, appraisal or valuation, consistent with our previous rules, that Accordingly, we are adopting rules and actuarial services, the provision was prohibited the accounting firm from stating that all bookkeeping services ‘‘where it is reasonably likely that the providing any service related to the would cause the auditor to lack results of these services will be subject audit client’s information system, unless independence unless it is reasonable to to audit procedures during an audit of it is reasonable to conclude that the conclude that the results will not be the audit client’s financial statements’’ results of these services will not be subject to audit procedures. We while for the other two services, there subject to audit procedures during an proposed to prohibit bookkeeping was no such wording. We have added audit of the audit client’s financial services unless it was ‘‘reasonably likely the new wording to all five services to statements. These rules do not preclude that such services would not be subject provide consistency in application. an accounting firm from working on to audit procedures.’’ Our final rules Additionally, the change from hardware or software systems that are make clear the presumption to ‘‘reasonably likely * * *’’ to ‘‘unless it unrelated to the audit client’s financial statements or accounting records as long emphasize the responsibility the is reasonable to conclude’’ is intended as those services are pre-approved by accounting firm has in making a to narrow the circumstances in which the audit committee. determination that the bookkeeping that condition can be invoked to justify the provision of such services.52 As noted above, the rule prohibits the services will not be subject to audit accountant from designing or procedures. 2. Financial Information Systems Design implementing a hardware or software The rules utilize the previous and Implementation system that aggregates source data or definition of bookkeeping or other Currently, Paragraph (c)(4)(ii) generates information that is services, which focuses on the provision identifies certain information ‘‘significant’’ to the financial statements of services involving: (1) Maintaining or technology services that, if provided to taken as a whole. In this context, preparing the audit client’s accounting an audit client, impair the accountant’s information would be ‘‘significant’’ if it records, (2) preparing financial independence. The proposed rules is reasonably likely to be material to the statements that are filed with the identified information technology financial statements of the audit client. Commission or the information that services that would impair the auditor’s Since materiality determinations may forms the basis of financial statements independence. Under Paragraph not be complete before financial filed with the Commission, or (3) (c)(4)(ii)(A) of the proposed rule, an statements are generated, the audit preparing or originating source data accountant would not be independent if client and accounting firm by necessity underlying the audit client’s financial the accountant directly or indirectly will need to evaluate the general nature statements. Our experience with this operates or supervises the operation of of the information as well as system definition demonstrates that the concept the audit client’s information system or output during the period of the audit of bookkeeping and other services is manages the audit client’s local area engagement. An accountant, for well understood in practice. network or information system. Further, We understand that accountants Paragraph (c)(4)(ii)(B) of the proposed 53 See, e.g., letter from Radin, Glass & Co., dated sometimes are asked to prepare December 31, 2002; letter from Institute of statutory financial statements for foreign 51 An example of a situation where it would be Chartered Accountants in England & Wales, dated companies, and these are not filed with reasonable to conclude that the results would not December 24, 2002; letter from Deloitte & Touche us. Consistent with the Commission’s be subject to audit procedures would be where an LLP, dated January 10, 2003. accounting firm provides a prohibited service to an 54 See, e.g., letter from HarborView Partners LLC, previous rules, an accountant’s affiliate of the client, as defined in Rule 2–01(f)(4), dated December 4, 2002; letter from California but the accounting firm is not the auditor of the Public Employees’ Retirement System, dated 50 Letter of Samuel L. Burke, Associate Chief entity or entities that controls the accounting firm’s January 10, 2003; letter from Center for Investor Accountant, SEC, to Florida Institute of Certified audit client or its affiliate. Trust, dated January 13, 2003. Public Accountants re: bookkeeping (March 4, 52 As such, there is a rebuttable presumption that 55 See, e.g., letter from Sullivan & Cromwell LLP, 2002). the services are subject to audit procedures. dated January 10, 2003.

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example, would not be independent of is reasonably likely that the results of any service involving a fairness opinion an audit client for which it designed an the service will not be subject to audit or contribution-in-kind report for an integrated Enterprise Resource Planning procedures by the auditor because the audit client, unless it is reasonable to (‘‘ERP’’) or similar system since the auditor is in a position of auditing his conclude that the results of these system would serve as the basis for the or her own work. Additionally, an services will not be subject to audit audit client’s financial reporting system. accountant was not independent under procedures during an audit of the audit Designing, implementing, or operating the proposal if he or she provided a client’s financial statements. systems affecting the financial fairness opinion because to do so Our rules do not prohibit an statements may place the accountant in requires the accountant to function as a accounting firm from providing such a management role, or result in the part of management and may require the services for non-financial reporting (e.g., accountant auditing his or her own accountant to audit the results of his or transfer pricing studies, cost segregation work or attesting to the effectiveness of her own work. studies, and other tax-only valuations) internal control systems designed or Appraisal and valuation services purposes. Also, the rule does not implemented by that accountant.56 For include any process of valuing assets, prohibit an accounting firm from example, if an auditor designs or installs both tangible and intangible, or utilizing its own valuation specialist to a computer system that generates the liabilities. They include valuing, among review the work performed by the audit financial records, and that system other things, in-process research and client itself or an independent, third- generates incorrect data, the accountant development, financial instruments, party specialist employed by the audit is placed in a position of having to assets and liabilities acquired in a client, provided the audit client or the report on his or her firms’ own work. merger, and real estate. Fairness client’s specialist (and not the specialist Investors may perceive that the opinions and contribution-in-kind used by the accounting firm) provides accountant would be unwilling to reports are opinions and reports in the technical expertise that the client challenge the integrity and efficacy of which the firm provides its opinion on uses in determining the required the client’s financial or accounting the adequacy of consideration in a amounts recorded in the client financial information collection systems that the transaction. statements. In those instances the accountant designed or installed. Some commenters 59 believe that our accountant will not be auditing his or However, this prohibition does not proposed prohibitions were appropriate her own work because a third party or preclude the accountant from evaluating and others would be even more the audit client is the source of the the internal controls of a system as it is restrictive.60 Other commenters,61 financial information subject to the being designed, implemented or however, believe that certain valuation audit. Additionally, the quality of the operated either as part of an audit or services should be permissible. audit may be improved where attest service and making We continue to believe that providing specialists are utilized in such recommendations to management. these services to audit clients raises situations. 63 Likewise, the accountant would not be several independence concerns. When it Some commenters believe that a precluded from making is time to audit the financial statements, strict application of these rules related recommendations on internal control it is likely that the accountant would to contribution-in-kind reports may matters to management or other service review his or her own work, including create conflicts in certain foreign providers in conjunction with the key assumptions or variables that jurisdictions. We are sensitive to these design and installation of a system by underlie an entry in the financial issues and, as we have done in the 64 another service provider. statements. Also, if the appraisal past, we will continue to work with other regulatory agencies. 3. Appraisal or Valuation Services, methodology involves a projection of Fairness Opinions, or Contribution-in- future results of operations and cash 4. Actuarial Services flows, some 62 believe that the Kind Reports The previous rules generally bar accountant that prepares the projection auditors only from providing actuarial The Commission’s previous may be unable to evaluate skeptically services related to insurance company independence rules stated that an and without bias the accuracy of that policy reserves and related accounts. accountant is deemed to lack valuation or appraisal. Accordingly, the Our proposal provided that the independence when providing appraisal rules we are adopting prohibit the accountant is not independent if the or valuation services, fairness opinions, accountant from providing any auditor provides any actuarial service or contribution-in-kind reports for audit appraisal service, valuation service or clients. However, the previous rules involving the amounts recorded in the financial statements and related contained certain exemptions that we transactions of its audit clients, to provide proposed to eliminate.57 The proposals contribution-in-kind reports that express an opinion accounts for the audit client where it is provided that the auditor is not on the fairness of the transaction, the value of a reasonably likely that the results of independent if the auditor provides security, or the adequacy of consideration to shareholders. 63 See, e.g., letter from Japanese Institute of appraisal or valuation services, or 59 See, e.g., letter from Piercy, Bowler, Taylor & 58 Certified Public Accountants, dated January 13, contribution-in-kind reports, where it Kern, dated January 7, 2003; letter from Robert G. 2003; letter from The Hundred Group of Finance Beard, undated; letter from BDO Seidman LLP, Directors, dated January 13, 2003; letter from 56 See, Section 404(b) of the Sarbanes-Oxley Act. dated January 13, 2003. European Commission, dated January 13, 2003. 57 Exemptions proposed to be eliminated 60 See, e.g., letter from Stikeman Elliot, dated 64 Letter of Lynn Turner, Chief Accountant, SEC, included: (1) Firm’s valuation expert can review the January 13, 2003; letter from California Public to Commissione Nazionale per le Societa e la Borsa work of a client’s specialist; (2) firm’s actuaries can Employees’ Retirement System, dated January 10, re: auditor independence (August 24, 2000). In that value a client’s pension or other post-retirement 2003. letter, the Chief Accountant did not deem the benefit obligation provided that the client assumes 61 See, e.g., letter from American Institute of auditor’s independence to be impaired where there responsibility for significant assumptions; (3) Certified Public Accountants, dated January 9, were certain agreed-upon procedures for the valuations performed for planning and 2003; letter from HSBC, dated January 1, 2003; contribution-in-kind report and the accountant implementing tax-planning strategies; and (4) letter from PricewaterhouseCoopers, dated January represented in the report that the report did not valuations for non-financial purposes which do not 8, 2003. express an opinion on the fairness of the affect the financial statements. 62 See, e.g., letter from Aurora Group, dated transaction, the value of the security, or the 58 Laws or regulations in certain foreign countries January 13, 2003; letter from Cowhey, Girard adequacy of consideration to shareholders. This require the auditor in connection with designated Consulting, dated December 30, 2002. letter is available on our website.

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these services will be subject to audit had been concerns about the potentially commenters 74 suggested that the procedures during an audit of the audit disproportionate impact on such Commission should clarify that services client’s financial statements because companies. provided in conjunction with an audit providing these services may cause an Some companies ‘‘outsource’’ internal or attest service are permissible. accountant later to audit his or her own audit functions by contracting with an The rules we are adopting prohibit the work. Additionally, accountants outside source to perform, among other accountant from providing to the audit providing these services assume a key things, all or part of their audits of client internal audit outsourcing management task. In addition, internal controls. As emphasized by the services. This prohibition would actuarially-oriented advisory services Committee of Sponsoring Organizations include any internal audit service that may affect amounts reflected in some (‘‘COSO’’), internal auditors play an has been outsourced by the audit client company’s financial statements. important role in evaluating and that relates to the audit client’s internal Some commenters 65 agreed with our monitoring a company’s internal control accounting controls, financial systems, proposed prohibition of actuarial system.67 As a result, some argue that or financial statements unless it is services. Others,66 however, believe that internal auditors are, in effect, part of a reasonable to conclude that the results some types of actuarial services should company’s system of internal of these services will not be subject to 68 be permitted. accounting control. audit procedures during an audit of the Consistent with our proposal, we Since the external auditor typically audit client’s financial statements. will rely, at least to some extent, on the continue to believe that when the During the conduct of the audit in existence of an internal audit function accountant provides actuarial services accordance with generally accepted and consider its impact on the internal for the client, he or she is placed in a auditing standards (‘‘GAAS’’) or when control system when conducting the position of auditing his or her own providing attest services related to audit of the financial statements,69 the work. Accordingly, the rules we are internal controls, the auditor evaluates adopting prohibit an accountant from accountant may be placed in the position of auditing his or her firm as the company’s internal controls and, as providing to an audit client any a result, may make recommendations for actuarially-oriented advisory service part of the internal control system. In other words, if the internal audit improvements to the controls. Doing so involving the determination of amounts is a part of the accountant’s recorded in the financial statements and function is outsourced to an accountant, the accountant assumes a management responsibilities under GAAS or related accounts for the audit client applicable attestation standards and, other than assisting a client in responsibility and becomes part of the company’s control system. Our therefore, does not constitute an internal understanding the methods, models, audit outsourcing engagement. assumptions, and inputs used in proposed rule provided that an accountant is not independent when the Along those lines, this prohibition on computing an amount, unless it is ‘‘outsourcing’’ does not preclude reasonable to conclude that the results accountant performs internal audit services related to the internal engaging the accountant to perform of these services will not be subject to nonrecurring evaluations of discrete audit procedures during an audit of the accounting controls, financial systems, or financial statements, for an audit items or other programs that are not in audit client’s financial statements. substance the outsourcing of the As can be seen, however, we believe client. 70 internal audit function. For example, that it is appropriate to advise the client Some commenters agreed with the the company may engage the on the appropriate actuarial methods proposed rule. While some 71 accountant, subject to the audit and assumptions that will be used in the commenters believed that our rule committee pre-approval requirements, actuarial valuations. It is not should contain exemptions for smaller 72 to conduct ‘‘agreed-upon procedures’’ appropriate for the accountant to companies, others did not. Some 73 engagements 75 related to the company’s provide the actuarial valuations for the commenters believed that the final internal controls, since management audit client. rule should include a ‘‘reasonably likely The rules also provide that the to be subject to audit procedures’’ takes responsibility for the scope and accountant may utilize his or her own provision similar to other prohibited assertions in those engagements. The actuaries to assist in conducting the services (e.g., bookkeeping). Still other prohibition also does not preclude the audit provided the audit client uses its accountant from performing operational own actuaries or third-party actuaries to 67 See, Committee of Sponsoring Organizations of internal audits unrelated to the internal the Treadway Commission (COSO), Internal provide management with its actuarial accounting controls, financial systems, Control—Integrated Framework, at 7 (1992) (the or financial statements. capabilities. ‘‘COSO Report’’). 68 See, SAS No. 65, ‘‘The Auditor’s Consideration 6. Management Functions 5. Internal Audit Outsourcing of the Internal Audit Function in an Audit of Our previous rules on internal audit Financial Statements,’’ AU § 322. In our proposal, we did not propose outsourcing allowed a company to 69 SAS No. 55, ‘‘Consideration of Internal Control any significant change to our previous in a Financial Audit,’’ AU § 319. rule on management functions. Some outsource part of its internal audit 70 See, e.g., letter from Perry Adkins, dated 76 function to the independent audit firm December 24, 2002; letter from The Center for commenters suggested that we clarify subject to certain exemptions. For Investor Trust, dated January 13, 2003. example, smaller businesses were 71 See, e.g., letter from James L. Crites, dated 74 See, e.g., letter from Hansen, Barnett & exempt from the internal audit December 28, 2002; letter from Cranmore, Maxwell, dated January 13, 2003; letter from FitzGerald & Meaney, dated December 27, 2002; Deloitte & Touche LLP, dated January 10, 2003; outsourcing prohibition because there letter from America’s Community Bankers, dated letter from PricewaterhouseCoopers, dated January January 13, 2003; letter from Dixon Odom LLC, 8, 2003; letter from American Institute of Certified 65 See, e.g., letter from California Public dated December 20, 2002. Public Accountants, dated January 9, 2003. Employees’ Retirement System, dated January 10, 72 See, e.g., letter from California Public 75 See, AT § 201, ‘‘Agreed-Upon Procedures.’’ 2003; letter from Aon Consulting, dated January 13, Employees’ Retirement System, dated January 10, 76 See, e.g., letter from American Institute of 2003. 2003; letter from Institute of Internal Auditors, Certified Public Accountants, dated January 9, 66 See, e.g., letter from PricewaterhouseCoopers, dated January 13, 2003. 2003; letter from Grant Thornton, LLP dated dated January 8, 2003; letter from Deloitte & Touche 73 See, e.g., letter from Deloitte & Touche, dated January 13, 2003; letter from Sullivan & Cromwell LLP, dated January 10, 2003; letter from General January 10, 2003; letter from Ernst & Young LLP, LLP, dated January 10, 2003; letter from Computer Electric Company, dated January 9, 2003. dated January 6, 2003. Sciences Corporation, dated January 13, 2003.

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that evaluations of and audit of the financial statements of a director positions; acts as negotiator on recommendations for improvements in a company. Likewise, design and the audit client’s behalf, such as company’s systems or controls does not implementation of these controls determining position, status, constitute a management function. involves decision-making and, compensation, fringe benefits, or other Consistent with our proposal, the therefore, is different from conditions of employment; or final rules prohibit the accountant from recommending improvements in the undertakes reference checks of acting, temporarily or permanently, as a internal accounting and risk prospective candidates. Under the rule, director, officer, or employee of an audit management controls of an audit client an accountant’s independence also is client, or performing any decision- (which is permissible, if pre-approved impaired when the accountant engages making, supervisory, or ongoing by the audit committee). in psychological testing, or other formal monitoring function for the audit client. For example, management could testing or evaluation programs, or We believe, however, that services in engage a third-party service provider to recommends or advises the audit client connection with the assessment of design and implement an inventory to hire a specific candidate for a specific internal accounting and risk control system. In the course of that job. management controls, as well as engagement, the third-party service Assisting management in human providing recommendations for provider might ask the accountant to resource selection or development improvements, do not impair an make recommendations on internal places the accountant in the position of accountant’s independence. control and accounting system having an interest in the success of the Accountants must gain an components that have been included in employees that the accountant has understanding of their audit clients’ the system being designed. Providing selected, tested, or evaluated. systems of internal controls when such recommendations to the third- Accordingly, observers may perceive conducting an audit in accordance with party service provider would not place that an accountant would be reluctant to GAAS.77 With this insight, accountants the independent accountant in the role suggest the possibility that those often become involved in diagnosing, of management. employees failed to perform their jobs assessing, and recommending to audit Because of this fundamental appropriately, or at least reasonable committees and management ways in difference, we believe that designing investors might perceive the accountant which their audit client’s internal and implementing internal accounting to be reluctant, because doing so would controls can be improved or and risk management controls impairs require the accountant to acknowledge strengthened.78 The resulting the accountant’s independence because shortcomings in its human resource improvements in the audit client’s it places the accountant in the role of service. The accountant also might have controls not only result in improved management. Conversely, obtaining an other incentives not to report such understanding of, assessing financial reporting to investors but also employees’ ineffectiveness, including effectiveness of, and recommending can facilitate the performance of high that the accountant would identify and improvements to the internal quality audits. For these reasons, we are be identified with the recruited accounting and risk management continuing to allow accountants to employees. controls is fundamental to the audit assess the effectiveness of an audit process and does not impair the 8. Broker-Dealer, Investment Adviser or client’s internal controls and to accountant’s independence. Investment Banking Services recommend improvements in the design Furthermore, the accountant may be and implementation of internal controls Our previous rules deem an engaged by the company, subject to the and risk management controls. accountant to lack independence when audit committee pre-approval As discussed in the previous section performing brokerage or investment requirements, to conduct an agreed- advising services for an audit client.81 on financial information systems design upon procedures engagement 79 related and implementation, when an We are adopting rules that add serving to the company’s internal controls or to as an unregistered broker-dealer 82 to accountant designs and implements its provide attest services related to the audit client’s internal accounting and company’s internal controls without 81 risk management control systems, some These rules are not meant to change the impairing his or her independence. Commission’s previous position that an audit firm’s believe that the accountant will lack broker-dealer division can cover an industry objectivity if called upon to audit 7. Human Resources (including industry surveys and analyses) which financial statements that are derived, at Our previous rules deem an includes an audit client when performing analyst least in part, from data from those functions. However, analysis of a specific audit accountant to lack independence when client’s stock places the auditor in the position of systems or to report on those controls or performing certain human resources acting as an advocate for the client and would cause on management’s assessment of those functions, and we did not propose any the auditor to lack independence. controls. As such, we believe that significant change to those rules. Many 82 Accountants and the companies that retain designing and implementing internal commenters 80 agreed that the them should recognize that the key determination required here is a functional one (i.e., Is the accounting and risk management accountant should be prohibited from accounting firm or its employee acting as a broker- controls is fundamentally different from providing certain human resources dealer?). The failure to register as a broker-dealer obtaining an understanding of the functions for audit clients. does not necessarily mean that the accounting firm controls and testing the operation of the Consistent with our proposal, these is not a broker-dealer. In relevant part, the statutory definition of ‘‘broker’’ captures persons ‘‘engaged in controls which is an integral part of any rules provide that an accountant’s the business of effecting transactions in securities independence is impaired with respect for the account of others.’’ Securities Exchange Act 77 AU § 319, ‘‘Consideration of Internal Control in to an audit client when the accountant of 1934 3(a)(4). Unregistered persons who provide a Financial Statement Audit.’’ In addition, Section searches for or seeks out prospective services related to mergers and acquisitions or other 404(b) of the Act requires a company’s audit to securities-related transactions should limit their attest to the internal control report provided candidates for managerial, executive or activities so they remain outside of that statutory annually by management. definition. A person may ‘‘effect transactions,’’ 78 AU § 325, ‘‘Communication of Internal Control 79 See, AT § 201, ‘‘Agreed-Upon Procedures.’’ among other ways, by assisting an issuer to Related Matters Noted in an Audit,’’ requires the 80 See, e.g., letter from California Public structure prospective securities transactions, by auditor to communicate reportable conditions and Employees’ Retirement System, dated January 10, helping an issuer to identify potential purchasers of material weaknesses in internal control to the 2003; letter from Aon Consulting, dated January 13, securities, or by soliciting securities transactions. A company’s audit committee or equivalent. 2003. person may be ‘‘engaged in the business,’’ among

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our rules that prohibit serving as a and investment strategies. The value of Some commenters 89 believed that the promoter or underwriter, making that advice is measured principally by prohibition on legal services should investment decisions on behalf of the the performance of a customer’s apply to all registrants, regardless of audit client or otherwise having securities portfolio. When the customer their jurisdiction. Others believed that discretionary authority over an audit is an audit client, the accountant has an certain accommodations should be client’s investments, or executing a interest in the value of the audit client’s made for foreign jurisdictions 90 or for transaction to buy or sell an audit securities portfolio, even as the routine or ministerial duties.91 client’s investment, or having custody of accountant must determine whether The rules we are adopting are assets of the audit client. The rule is management has properly valued the consistent with our proposal. substantially the same as the portfolio as part of an audit. Thus, the Accordingly, an accountant is Commission’s previous rule related to accountant would be placed in a prohibited from providing to an audit the provision of these types of services position of auditing his or her own client any service that, under to audit clients. We are including work. Furthermore, the accountant is circumstances in which the service is unregistered broker-dealers within the placed in a position of acting as an provided, could be provided only by rules because the nature of the threat to advocate on behalf of the client. someone licensed, admitted, or independence is unchanged whether the otherwise qualified to practice law in entity is or is not a registered broker- 9. Legal Services the jurisdiction in which the service is dealer. provided. Our previous rule stated that an Selling—directly or indirectly—an We recognize that there may be accountant is deemed to lack audit client’s securities is incompatible implications for some foreign registrants independence when he or she provides with the accountant’s responsibility of from this rule. For example, we legal services to an audit client. The assuring the public that the company’s understand that in some jurisdictions it financial condition is fairly presented. proposed rule provided that an is mandatory that someone licensed to When an accountant, in any capacity, accountant was not independent of an practice law perform tax work, and that recommends to anyone (including non- audit client if the accountant provides an accounting firm providing such audit clients) that they buy or sell the any service to the audit client that, services, therefore, would be deemed to securities of an audit client or an under circumstances in which the be providing legal services. As a general affiliate of the audit client, the service is provided, could be provided matter, our rules are not intended to accountant has an interest in whether only by someone licensed, admitted or prohibit foreign accounting firms from those recommendations were correct. otherwise qualified to practice law in providing services that an accounting That interest could affect the audit of the jurisdiction in which the service is firm in the United States may provide. the client whose securities, or whose provided. In determining whether or not a service affiliate’s securities, were We believe that a lawyer’s core would impair the accountant’s recommended. These concepts are professional obligation is to advance independence solely because the service echoed in the ‘‘simple principles’’ clients’ interests. Rules of professional is labeled a legal service in a foreign included in the legislative history to the conduct in the U.S. require the lawyer jurisdiction, the Commission will Sarbanes-Oxley Act.83 In such a to ‘‘represent a client zealously and consider whether the provision of the situation, if an accountant uncovers an diligently within the bounds of the service would be prohibited in the accounting error in a client’s financial law.’’ 85 The lawyer must ‘‘take United States as well as in the foreign statements, and the accountant, in an whatever lawful and ethical measures jurisdiction. investment adviser capacity, had are required to vindicate a client’s cause Evaluating and determining whether recommended that client’s securities to or endeavor * * * In the exercise of services are permissible may require a investment clients, the accountant professional judgment, a lawyer should comprehensive analysis of the facts and performing the audit may be reluctant to always act in a manner consistent with circumstances. We are, however, recommend changes to the client’s the best interests of the client.’’ 86 We sensitive to these issues and, as we have financial statements if the changes have long maintained that an individual done in the past,92 we encourage could negatively affect the value of the cannot be both a zealous legal advocate accounting firms and foreign regulators securities recommended by the for management or the client company, to consult with the staff to address these accountant to its investment adviser and maintain the objectivity and issues. clients. impartiality that are necessary for an 10. Expert Services Broker-dealers 84 often give advice audit.87 The Supreme Court has agreed and recommendations on investments with our view. In United States v. The Sarbanes-Oxley Act includes Arthur Young, the Supreme Court expert services in the list of non-audit other ways, by receiving transaction-related emphasized, ‘‘If investors were to view services an accountant is prohibited compensation or by holding itself out as a broker- from performing for an audit client. As dealer. Involvement of accounting personnel as the accountant as an advocate for the unregistered broker-dealers not only can impair corporate client, the value of the audit auditor independence, but also would violate function itself might well be lost.’’ 88 89 See, e.g., letter of Lynn E. Turner, dated January Section 15(a) of the Exchange Act. 13, 2003; letter from California Public Employees’ 83 Floor Statement of Senator Sarbanes, 148 Cong. Retirement System, dated January 10, 2003. Rec. S7364 (July 25, 2002) ‘‘* * * A public rules. We note, however, that broker-dealers 90 See, e.g., letter from HSBC, dated January 10, company auditor should not be a promoter of the provide an array of services that may include 2003; letter from Institute of Chartered Accountants company’s stock or other financial interest (as it certain analyst activities. in England and Wales, dated December 24, 2002; would be if it served as broker-dealer, investment 85 See, e.g., D.C. Rules of Professional Conduct, letter from Institut der Wirtschaftsprufer, dated adviser, or investment banker for the company).’’ Rule 1.3(a). December 27, 2002; letter from Federation des To do so places the auditor in a position of serving 86 Id. at Rule 1.5. Experts Comptables Europeens, dated January 13, as an advocate for his or her audit client. 87 In the Matter of Charles Falk, AAER No. 1134 2003. 84 In the past, some have expressed concern that (May 19, 1999) (formally disciplining an attorney/ 91 See, e.g., letter from KPMG, dated January 9, terms such as ‘‘securities professional’’ and accountant who gave legal advice to an audit client 2003. ‘‘analyst’’ are not defined in the securities laws and of another partner in his accounting firm). 92 Letter of Lynn Turner, Chief Accountant, SEC, use of the terms could cause confusion. Because of 88 United States v. Arthur Young, 465 U.S. 805 to Commissione Nazionale per le Sonieta e la Borsa that concern, we have not used those terms in these (1984) at 819–20 n.15. re: statutory procedures (August 24, 2000).

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discussed earlier, the legislative history opinions or other services to an audit investigation of a potential accounting related to expert services is focused on client, or a legal representative of an impropriety.101 For example, if the audit the accountant’s role when serving in an audit client, for the purpose of committee is concerned about the advocacy capacity. advocating that audit client’s interests accuracy of the inventory accounts at a Some commenters 93 believed that the in litigation or regulatory, or subsidiary, it may engage the auditor to prohibition on expert services should be administrative investigations or conduct a thorough inspection and limited to instances of public advocacy proceedings. For example, under this analysis of those accounts, the physical or public adversarial proceedings and rule an auditor’s independence would inventory at the subsidiary, and related should not extend to situations where be impaired if the auditor were engaged matters without impairing the auditor’s the accountant is advising a client or its to provide forensic accounting services independence. counsel on technical matters apart from to the audit client’s legal representative We recognize that auditors have a public proceeding. Other in connection with the defense of an obligations under Section 10A of the commenters 94 believed a distinction investigation by the Commission’s Exchange Act and GAAS 102 to search exists between serving as an expert Division of Enforcement. Additionally, for fraud that is material to an issuer’s witness and serving as a fact witness in an accountant’s independence would be financial statements and to make sure a proceeding. Additionally, many impaired if the audit client’s legal the audit committee and others are commenters 95 simply raised concerns counsel, in order to acquire the requisite informed of their findings. Auditors over the lack of clarity of the term expertise, engaged the accountant to should conduct these procedures ‘‘expert’’ indicating that, as proposed, provide such services in connection whether they become aware of a the meaning of the term is unclear. with a litigation, proceeding or potential illegal act as a result of audit, Clients retain experts to lend investigation.98 review or attestation procedures they authority to their contentions in various Our rules do not, however, preclude have performed or as a result of the proceedings by virtue of the expert’s an audit committee or, at its direction, audit committee expressing concerns specialized knowledge and experience. its legal counsel, from engaging the about a part of the company’s operations In situations involving advocacy, the accountant to perform internal or compliance with the company’s provision of expert services by the investigations or fact finding financial reporting system. In these accountant makes the accountant part of engagements. These types of situations, we believe that the auditor the ‘‘team’’ that has been assembled to engagements may include, among may conduct the procedures, with the advance or defend the client’s others, forensic or other fact-finding approval of the audit committee, and interests.96 The appearance of advocacy work that results in the issuance of a provide the reports that the auditor created by providing such expert report to the audit client. The deems appropriate. Should litigation services is sufficient to deem the involvement by the accountant in this arise or an investigation commence accountant’s independence impaired. capacity generally requires performing during the time period that the auditors The prohibition on providing ‘‘expert’’ procedures that are consistent with, but are conducting such procedures, we services included in this rule covers more detailed or more comprehensive would not deem the completion of these engagements that are intended to result than, those required by GAAS. procedures to be prohibited expert in the accounting firm’s specialized Performing such procedures is services so long as the auditor remains knowledge, experience and expertise consistent with the role of the in control of his or her work and that being used to support the audit client’s independent auditor and should work does not become subject to the positions in various adversarial improve audit quality. If, subsequent to direction or influence of legal counsel proceedings.97 the completion of such an for the issuer. The rules we are adopting prohibit an engagement,99 a proceeding or Furthermore, under this rule, an accountant from providing expert investigation is initiated, the accountant accountant’s independence will not be may allow its work product to be deemed to be impaired if, in an 93 See, e.g., letter from Sullivan & Cromwell LLP, utilized by the audit client and its legal investigation or proceeding, an letter from Deloitte & Touche LLP, dated January accountant provides factual accounts or 10, 2003; letter from American Institute of Certified counsel without impairing the Public Accountants, dated January 9, 2003; letter accountant’s independence. The testimony describing work it performed. from Federation des Experts Comptables Europeens, accountant, however, may not then Further, an accountant’s independence dated January 13, 2003. provide additional services, but may will not be deemed to be impaired if an 94 See, e.g., letter from Sullivan & Cromwell LLP, accountant explains the positions taken dated January 10, 2003; letter from California Public provide factual accounts or testimony Employees’ Retirement System, dated January 10, about the work performed. or conclusions reached during the 2003; letter from Grant Thornton LLP, dated Accordingly, our rules would not performance of any service provided by January 13, 2003; letter from American Academy of prohibit an accountant from assisting the accountant for the audit client. Actuaries, dated January 6, 2003. the audit committee 100 in fulfilling its 95 11. Tax Services See, e.g., letter from Eli Lily and Co., dated responsibilities to conduct its own January 9, 2003; letter from Federation des Experts Since the Commission issued its Comptables Europeens, dated January 13, 2003; letter from PG&E Corporation, dated January 10, 98 For purposes of this release, an investigation is auditor independence proposal, there 2003; letter from America’s Community Bankers, an inquiry by a regulatory body, including by its has been considerable debate regarding dated January 13, 2003. staff. whether an accountant’s provision of 96 The accountant becomes an advocate under 99 See, infra, discussion stating that if litigation tax services for an audit client can such circumstances even if the accountant is arises or an investigation commences during the working behind the scenes to advance the client’s auditor’s performance of such procedures, impair the accountant’s independence. interests. completion of the procedures is not prohibited 97 As we discussed in our proposing release, provided the auditor remains in control of his or 101 An auditor’s independence would, however, virtually all services provided by an accountant her work and that work does not become subject to be impaired if its assistance to the audit committee may be perceived to be expert services. This the direction or influence of legal counsel for the included defending, or helping to defend, the audit prohibition, however, only applies to those services issuer. committee or the company generally in a that involve advocacy in proceedings and 100 For example, Section 301 of the Act stipulates shareholder class action or derivative lawsuit, other investigations (as discussed in this section of the that each audit committee shall have the authority than as a fact witness. release) and does not apply to other permitted non- to engage independent counsel and other advisers, 102 See, SAS No. 99, ‘‘Consideration of Fraud in audit services, such as tax services. as it determines necessary to carry out its duties. a Financial Statement Audit,’’ AU § 316.

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Tax services are unique among non- services than would occur if a non-audit C. Partner Rotation audit services for a variety of reasons. firm were engaged to provide these For 25 years, partner rotation has been Detailed tax laws must be consistently services. Additionally, one commenter’s a component of quality control applied, and the Internal Revenue research suggests that higher levels of processes for a vast majority of the Service has discretion to audit any tax tax services fees are associated with accounting firms that audit SEC return. Additionally, accounting firms substantially lower instances of registrants.113 The judgment about who have historically provided a broad range financial restatements.109 should be subject to rotation and how of tax services to their audit clients.103 The Commission reiterates its long- long the partner(s) should remain on the In the proposing release, we suggested standing position that an accounting that in determining whether a given tax firm can provide tax services to its audit engagement prior to rotating involves service should be allowed, the audit clients without impairing the firm’s balancing the need to bring a ‘‘fresh committee should be mindful of the independence. Accordingly, look’’ to the audit engagement with the three basic principles. In response, some accountants may continue to provide need to maintain continuity and audit commenters 104 indicated that asking tax services such as tax compliance, tax quality. audit committees to evaluate the planning, and tax advice to audit The Sarbanes-Oxley Act requires provision of tax services by the clients, subject to the normal audit rotation of certain audit partners on a accountant in light of the three basic committee pre-approval requirements five-year basis in order to continue to principles would significantly alter the under 2–01(c)(7). Additionally, the rules provide audit services for a registrant. Commission’s historic position related we are adopting require registrants to Section 203 of the Sarbanes-Oxley Act to tax services. Other commenters raised disclose the amount of fees paid to the of 2002 specifies that: significant clarity and certainty issues. accounting firm for tax services. The It shall be unlawful for a registered public Some commenters 105 that urged clarity rules are consistent with the Act which accounting firm to provide audit services to would, for example, prohibit states that: an issuer if the lead (or coordinating) audit accountants from providing any tax partner (having primary responsibility for the A registered public accounting firm may audit), or the audit partner responsible for services to audit clients. Other engage in any non-audit service, including 106 reviewing the audit, has performed audit commenters believed that tax services, that is not described in any of services for that issuer in each of the 5 accountants should be permitted to paragraphs (1) through (9) of subsection (g) previous fiscal years of that issuer. provide only certain types of tax for an audit client, only if the activity is services to their audit clients.107 Some approved in advance by the audit committee Section 301 of the Sarbanes-Oxley Act of the issuer.110 (Emphasis added) commenters 108 believed that allowing specifies that the Commission is to the accountant to perform tax services Nonetheless, merely labeling a service direct the national securities exchanges both enhances the quality of the audit as a ‘‘tax service’’ will not necessarily and associations to adopt company and provides greater independent eliminate its potential to impair listing standards stating that the oversight over the provision of tax independence under Rule 2–01(b).111 company’s audit committee has the Audit committees and accountants responsibility for appointment, 103 The provision of tax services by accountants should understand that providing compensation, and oversight of the to their audit clients existed and continued without certain tax services to an audit client work of the company’s audit firm.114 In change when Congress formulated the securities would, as described below, or could, in that capacity, the audit committee has laws in the 1930s. The Sarbanes-Oxley Act also the responsibility for evaluating and recognized that accountants may engage in certain certain circumstances, impair the non-audit services ‘‘including tax services * * * independence of the accountant. determining that the audit engagement only if the activity is approved in advance by the Specifically, accountants would impair team has the competence necessary to audit committee.’’ their independence by representing an conduct the audit engagement in 104 Some commenters (see, e.g., letter from Ernst audit client before a tax court, district accordance with GAAS. Additionally, & Young, dated January 6, 2003; letter from Deloitte & Touche, dated January 10, 2003; letter from court, or federal court of claims. In the accountant is required to conduct 115 KPMG, dated January 9, 2003; letter from the addition, audit committees also should the audit in accordance with GAAS. Chamber of Commerce of the United States of scrutinize carefully the retention of an America, dated January 9, 2003; letter from SafeCo accountant in a transaction initially ‘‘novel and debatable tax strategies and products Corporation, dated January 7, 2003; letter from recommended by the accountant, the that involve income tax shelters and extensive off- Pfizer, dated January 13, 2003; letter from The shore partnerships or affiliates’’ to audit clients. See Business Roundtable, dated January 14, 2003) sole business purpose of which may be The Conference Board Commission on Public Trust believe that asking audit committees to evaluate tax tax avoidance and the tax treatment of and Private Enterprise, Findings and services in light of the three principles in its pre- which may be not supported in the Recommendations, January 9, 2003, p. 37. approval process creates an unnecessary degree of 113 American Institute of Certified Public uncertainty in the marketplace. Internal Revenue Code and related 112 Accountants (AICPA), Division for CPA Firms SEC 105 See, e.g., letter from Norman Marks, dated regulations. Practice Section Peer Review Manual, 1978. December 9, 2002; letter from Harbor View Partners, 114 See, Release No. 33–8173 (Jan 8, 2003). 109 dated December 4, 2002; letter from Douglas Estes, See, comment letter of William Kinney, 115 In addition to the audit, registrants are dated November 30, 2002; letter from William University of Texas, Zoe-Vonna Palmrose, required to have their quarterly financial Fraser, dated November 26, 2002; letter from M.E. University of Southern California, and Susan information subjected to a timely review by the Saunders, dated November 26, 2002. Scholz, University of Kansas. accounting firm. Such review is typically 106 See, e.g., letter from Robert T. Bossart, dated 110 Sarbanes-Oxley Act of 2002, Section 201. conducted according to the provisions required by January 2, 2003; letter from FedEx Corporation, 111 It would not be appropriate to provide a GAAS—see, AU § 722. Furthermore, Section 404 of dated December 31, 2002; letter from the American prohibited service, label it a ‘‘tax service,’’ and the Sarbanes-Oxley Act, as well as the Bar Association Section of Taxation, dated January argue that it is, therefore, permissible. For example, Commission’s proposed rules—see, Release No. 33– 6, 2003; letter from California Public Employees’ an accountant seeking to provide a broker-dealer 8138, Oct. 22, 2002, (67 FR 66208)—would require Retirement System, dated January 10, 2003. service and arguing that, because there are tax the accounting firm to attest to management’s report 107 Commenters identified a variety of tax services implications of certain brokerage activities, the on the registrant’s internal controls. Both a timely they believe should be prohibited. However, there service is permissible would constitute an attempt review engagement and an attestation engagement was no ‘‘consensus’’ view on what tax services to improperly circumvent the list of prohibited require the accounting firm to be independent with should be prohibited. services. See, letter of Ernst & Young dated January respect to the registrant. Accordingly, the 108 See, e.g., letter from Philip A. Laskawy, dated 6, 2003 (p. 16). Commission’s rules for partner rotation extend to January 2, 2003; letter from FedEx Corporation, 112 The Commission on Public Trust and Private partners who serve on the engagement team that dated December 31, 2002; letter from The Business Enterprise recently concluded as a ‘‘best practice’’ conducts the timely review of the registrant’s Roundtable, dated January 14, 2003. that an accounting firm should not be providing Continued

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In particular, the third general those efforts have raised many of the these two partners were subject to standard requires that the accountant same concerns as our commenters rotation after five years, the Act is silent exercise due professional care in the which the Commission considered in with regard to the time out period. One conduct of the audit.116 In order to this rule-making. This issue will approach to the partner rotation rules exercise due professional care, it is continue to be monitored by the could have been to preclude the partner necessary to ensure that the engagement Commission and others. As directed by from returning to the audit client after is properly staffed with individuals Section 207 of the Sarbanes-Oxley Act, he or she rotates off to that engagement. competent to understand the unique the issue of mandatory firm rotation is Many commenters,126 however, 122 issues relevant to that audit. a matter requiring further study. believed that the time out should be Additionally, the accounting 1. Rotation of the Lead and Concurring shorter than in our proposal. Other profession’s quality control standards Partner commenters 127 did not object to or even require that the firm have processes in place to ensure that appropriate Under the current requirements of the agreed with the five-year time out personnel are assigned to each audit profession, the balance between the period for the lead and concurring engagement.117 need for a fresh look with concerns partners. In our proposing release, we proposed about loss of continuity and competence The Commission is adopting rules to that all partners on the audit is accomplished by requiring the lead require the lead and concurring partners engagement team, with the exception of partner to rotate off the audit to rotate after five years and, upon certain ‘‘technical services’’ or ‘‘national engagement of SEC registrants after rotation, be subject to a five-year ‘‘time office’’ partners and those serving on seven years with a two year time out out’’ period. Because of the importance 123 significant subsidiaries as defined in 1– period. However, some of achieving a fresh look to the commenters 124 believed that extending 02(w) of Regulation S–X, be subject to independence of the audit function, we the partner rotation requirements to rotation after five years and that after believe that a five-year time out period other audit partners would be a better rotation, they would be subject to a five is appropriate for these two partners. year time-out before they could return to balance of the need for a fresh look with that engagement. Furthermore, the concerns about continuity and 2. Additional Partner Rotation proposed rules would have applied the competence. partner rotation requirements at the These commenters’ views are Clearly, the lead partner and the audit client 118 level. consistent with the provisions of the concurring partner perform critical Some commenters 119 have suggested Sarbanes-Oxley Act, which clearly functions that affect the conduct and that the fresh look can only be specify that, at a minimum, two partners effectiveness of the engagement. accomplished by requiring mandatory be subject to rotation: the lead audit However, in many larger engagements, rotation of audit firms. In contrast, partner and the concurring partner. the engagement team will include more others 120 expressed the concern that the Furthermore, the Act specifies a five- than just the lead partner and the loss of continuity and audit competence year period prior to rotation rather than concurring partner. Often, those other created by mandatory firm rotation the current seven-year period specified partners on the engagement team play a creates an even greater risk to audit in the membership requirements of the significant role in the conduct of the SECPS.125 While the Act specified that quality. The issue of mandatory audit audit and maintaining ongoing firm rotation as an effective means of relationships with the audit client. safeguarding auditor independence has the Ranking Minority Member, Committee on Commerce, House of Representatives, ‘‘The Our proposal would have applied the been debated for many years. Several Accounting Profession, Major Issues: Progress and same rotation requirements to all different groups, including appointed Concerns,’’ 1996, p. 56; Arrunada, Benito, commissions, professional ‘‘Mandatory Rotation of Company Auditors: A partners on the audit engagement team organizations, and academics, have Critical Examination,’’ International Review of Law with the exception of certain ‘‘national And Economics, March 1997; St. Pierre, K. and J. office’’ technical partners and those who researched and analyzed the issue of Anderson, ‘‘An Analysis of Factors Associated with audit firm rotation.121 The results of Lawsuits Against Public Accountants,’’ Accounting did not work on significant subsidiaries Review (1984), p. 256; and Dallocchio, M. and A. as defined in Rule 1–02(w) of Vigan` o‘‘The Impact Of Mandatory Audit Rotation interim financial information as well as the Regulation S–X. Some commenters 128 On Audit Quality And On Audit Pricing: The Case engagement team that conducts the attest Of Italy,’’ SDA Universit`a Bocconi, 2003. believed that the rotation requirements engagement on management’s report on the 122 should be at or extend beyond our registrant’s internal controls. Section 207 of the Act directs the Comptroller General of the United States to conduct a study and 116 See, AU § 150.02. proposal level to include, for example, review of the potential effects of mandatory rotation 117 ‘‘national office’’ or ‘‘technical’’ See, QC § 20.13. of firms. 118 129 As defined in Rule 2–01(f). 123 AICPA, SEC Practice Section, Requirements of partners or other audit engagement 119 See, e.g., letter from Jason Zahner, dated Members, at item e. The membership requirements team members below the level of December 23, 2002; letter from Hugh Higgins, dated are available online at www.aicpa.org/members/div/ November 20, 2002. secps/require.htm. Audit firms which are members 126 120 See, e.g., letter from American Institute of of the SEC Practice Section must comply with its See, e.g., letter from The Putnam Funds, not Certified Public Accountants, dated January 9, rules (e.g., partner rotation) and undergo periodic dated; letter from Commercial Federal Bank, dated 2003. peer review to ensure that the firms’ audit practice January 13, 2003; letter from Dixon Odom, dated 121 See, The Commission on Auditors’ is consistent with both the rules of the AICPA and December 20, 2002; letter from American Institute Responsibilities, ‘‘Report, Conclusions, and those of the Commission. of Certified Public Accountants, dated January 9, Recommendations,’’ 1978, p. 109; Report of the 124 See, e.g., letter from California Public 2003. National Commission on Fraudulent Financial Employees’ Retirement System, dated January 10, 127 See, e.g., letter from Aetna, Inc., dated January Reporting, 1987, p. 54; research commissioned by 2003; letter from Denzil Dias, dated December 11, 13, 2003; letter from Royal Philips Electronics, the Committee of Sponsoring Organizations of the 2002; letter from HSBC, dated January 11, 2003. dated January 9, 2003; letter from Lynn Turner, Treadway Commission, ‘‘Report of the National 125 While the current lead partner rotation dated January 13, 2003; letter from Medtronic, Inc., Commission on Fraudulent Financial Reporting,’’ requirements specify a seven-year period prior to dated January 13, 2003. 1987, p. 113; Committee of Sponsoring rotation, the original rotation requirements 128 See, e.g., letter from Denzil Dias, dated Organizations of the Treadway Commission, developed by the SECPS specified a five-year December 11, 2002. ‘‘Fraudulent Financial Reporting: 1987–1997 An rotation period. See, AICPA, Division for CPA Firms 129 See, e.g., letter from California Public Analysis of U.S. Public Companies,’’ 1999, p. 28; SEC Practice Section Peer Review Manual, 1978, Employees’ Retirement System dated January 10, United States General Accounting Office, Report to p.1–5. 2003.

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partner.130 Other commenters, 131 to service the client.137 In certain beyond the lead and concurring partner however, believed that extending the industries there may be limited industry but less deeply than we proposed. In rotation requirements beyond the two expertise. Also, by applying the rotation response to the concerns of commenters partners named in the Act could requirements more deeply, firms might that our proposed rules went too deep, potentially harm audit quality and have a difficult time grooming another thus imposing significant costs on could impose additional costs on partner to both have sufficient registrants and accountants as well as registrants. For example, one knowledge of the industry and the client creating potential concerns of audit commenter 132 indicated that the and have sufficient time remaining prior quality, the rules we are adopting will proposed rotation requirements would to rotation when the lead partner or subject a smaller number of partners to cause the firm to have to rotate 181 concurring partner must rotate. Also, the rotation requirement. Accordingly, partners in 88 countries for one large some commenters 138 noted that we are adopting rules that apply the multi-national client. Another applying the proposed rotation partner rotation requirements to ‘‘audit commenter 133 estimated that more than requirements to specialty partners could partners’’ which is a new term defined 250 partners in 80 countries would be impact audit quality. in these rules. subject to the rotation requirements We believe that the partner rotation In addition to the lead and concurring under the proposed rules. Additionally, requirements must strike a balance partners, ‘‘audit partners’’ include some commenters stated that the between the need to achieve a fresh look partners on the audit engagement team additional costs that accounting firms on the engagement and a need for the who have responsibility for decision- would incur to rotate and, in many audit engagement team to be composed making on significant auditing, cases, relocate audit partners would of competent accountants. We believe accounting, and reporting matters that have to be passed on to registrants. that a proper balance is one that weighs affect the financial statements or who While other commenters 134 agreed the responsibility for decisions on maintain regular contact with with the concept of extending the accounting and financial reporting management and the audit committee. partner rotation requirements beyond issues impacting the financial In particular, audit partners would the two partners named in the Act, they statements with the level of the include all those who serve the client at suggested that the final rules should not relationship with senior management of the issuer or parent level, other than apply as broadly as the Commission had the client. Such a balancing clearly specialty partners. Further, the lead proposed. One commenter suggested would include the lead (high on both partner on subsidiaries of the issuer that assessing the ‘‘right cut’’ in dimensions) and concurring partners whose assets or revenues constitute identifying partners for rotation was a (high on responsibility for final 20% or more of the consolidated assets balance between the responsibility for decisions, somewhat lower on level of or revenues are included within the final decisions on accounting and relationship with management). In definition of ‘‘audit partner.’’ Thus, the term audit partner does not financial reporting issues affecting the addition to that, the lead partner at extend to all partners on the audit financial statements and the level of the significant operating units has a high engagement team. For example, partners relationship with management.135 involvement with senior management serving on subsidiaries which constitute Commenters 136 noted that applying and, for significant operations, less than 20% of the assets and revenues the rotation requirements too deeply responsibility for decisions on of the issuer would not be audit partners could threaten the quality of the audit accounting matters that affect the as we have defined that term and, thus, in certain situations. For example, in financial statements. Likewise, other would not be subject to rotation. certain countries there may be a limited audit partners at the parent or issuer Likewise, partners on subsidiaries above pool of audit partners who are familiar have a high involvement with senior the 20% threshold, other than the lead with U.S. GAAP and GAAS. In certain management and some responsibility for partner on those subsidiaries, are not ‘‘specialty’’ areas, there may be a limited accounting matters to be included in the subject to rotation.139 number of ‘‘specialty’’ partners available financial statements. Audit partners also would exclude In contrast, partners at smaller ‘‘specialty’’ partners because they 130 See, e.g., letter from Lynn E. Turner dated operating units and ‘‘specialty’’ partners typically do not have significant January 13, 2003. typically have a low level of interaction with management on an 131 See, e.g., letter from Aramark Corporation, involvement with senior management dated December 26, 2002; letter from Aetna, Inc., ongoing basis regarding significant dated January 13, 2003; letter from and the responsibility for the overall audit, accounting, and reporting PricewaterhouseCoopers, dated January 8, 2003; presentation in the financial statements matters. It is the lead partner (who is letter from Mellon Financial Corporation, dated is relatively low. subject to rotation) who has the ultimate January 10, 2003; letter from SAP AG, undated; Nonetheless, the Commission is letter from Chamber of Commerce of the United responsibility for the audit. We believe States of America, dated January 9, 2003; letter from sensitive to the impact that its proposed that this addresses the concern that The Business Roundtable, dated January 14, 2003. rotation requirements would have on many commenters expressed regarding 132 See, letter from PricewaterhouseCoopers dated audit competence in certain instances as certain ‘‘specialty’’ partners. January 8, 2003. well as costs to registrants. Consistent We believe that defining the term 133 See, letter from HSBC dated January 10, 2003. with this approach, we believe that the 134 See, e.g., letter from Ernst & Young LLP, dated ‘‘audit partners’’ as the basis for January 6, 2003; letter from Robert G. Beard, proper balance is achieved by extending defining those partners who are subject undated; letter from Institute of Chartered the partner rotation requirements to the rotation requirements is Accountants in England and Wales, dated January responsive to the concerns expressed by 10, 2003. 137 Specialty partners are, among others, those some commenters of the problems that 135 See, letter from Deloitte & Touche LLP, dated partners who consult with others on the audit January 10, 2003. engagement team during the audit, review or would be created by applying the 136 See, e.g., letter from The Business Roundtable, attestation engagement regarding technical or dated January 14, 2003; PricewaterhouseCoopers, industry-specific issues. For example, such partners 139 A threshold of 20% often has been used in the dated January 8, 2003; letter from KPMG, dated would include tax specialist and valuation accounting literature as a basis for ‘‘significance’’ January 9, 2003; letter from Philip A. Laskawy, specialist. tests. See, e.g., APB Opinion No. 18, ‘‘The Equity dated January 9, 2003; letter from Pfizer, dated 138 See, e.g., letter from Ernst & Young LLP, dated Method of Accounting for Investments in Common January 13, 2003; letter from Aetna, Inc., dated January 6, 2003; letter from Deloitte & Touche, Stock,’’ and ARB No. 43, Chapter 7, ‘‘Capital January 13, 2003. dated January 10, 2003. Accounts.’’

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rotation requirements deeper in the a period of time (e.g., two years) prior based on criteria such as number of firm. Accordingly, we believe that this to becoming the lead or concurring partners, number of SEC clients, firm requirement establishes an appropriate partner on the engagement and still be revenue, or number of professional balance between the need for a fresh able to serve in that lead or concurring personnel and (2) exempting look with the difficulties encountered in role for five years.142 accountants of smaller issuers as certain locations where the pool of In conducting its oversight review of measured by revenue, assets, market available talent is limited. registered public accounting firms, we capitalization, or profitability. In many cases, registrants have expect that the Public Company The existing professional standards complex business transactions and other Accounting Oversight Board (‘‘the on partner rotation contain an situations which may require that the Board’’) will monitor the impact of these exemption for firms with fewer than five engagement team consult with the rules on audit quality and audit clients and fewer than ten accounting firm’s national office or independence. partners.147 We recognize the need to others on technical issues. Consistent consider the impact of our rules on 4. Small Business/Small Firm with our proposal, partners assigned to smaller businesses and smaller firms. Considerations ‘‘national office’’ duties (which can While we believe it is appropriate to include technical accounting and Many commenters 143 stated that if the codify that exemption, we remain auditing—whether at a local or national rotation requirements were applied to concerned about the quality of audits of level—as well as centralized quality smaller firms, many smaller firms all registrants. Accordingly, in order for control functions) who may be would be unable to provide audit audit firms with fewer than five audit consulted on specific accounting issues services to their public clients and clients that are issuers 148 and fewer related to a client are not audit partners would be forced to give up their public than ten partners to qualify for the even though they may periodically clients. Many commenters 144 suggested exemption from partner rotation, the consult on client matters.140 While these that this would result in those clients Board must conduct a review of all of partners play an important role in the incurring greater costs such as from the firm’s engagements subject to the audit process, they serve, primarily, as having to identify a new accounting rule at least once every three years. This a technical resource for members of the firm, from the need to familiarize special review should focus on the audit team. Because these partners are accountants with the client firm’s overall quality of the audit and, in not involved in the audit per se and do industry and business practices and particular, the independence and not routinely interact or develop from the resulting reduction in competence of the key personnel on the relationships with the audit client, we competition among firms.145 As we audit engagement teams. do not believe that it is necessary to noted in the proposal, we are sensitive 5. Investment Companies rotate the involvement of these to the impact of our rules on smaller personnel. business and smaller firms. Under the proposed rule, a partner Commenters 146 made a number of performing audit, review, or attestation 3. Rotation Period for Partners Other suggestions about how to accommodate services for any entity in the investment Than the Lead and Concurring Partners the needs of smaller issuers and smaller company complex could only do so if Some commenters 141 believed that a firms including: (1) Exempting the firms they had not served five consecutive different rotation period should be years on any entity in the same provided to partners other than the lead 142 An audit partner who starts in a position other investment company complex. The and concurring partners. In particular, if than the lead or concurring partner and rotation requirement would have subsequently moves to the lead or concurring other partners subject to the rotation partner cannot serve the client in an audit partner extended not only to the audit partners, requirements had a longer period before capacity for more than seven consecutive years. For but also those specialized partners, such they were required to rotate, firms example, a person serving as the lead partner on a as tax partners, that work on significant significant subsidiary for a period of four years who aspects of the audit. Those partners would be better able to establish then becomes the lead partner on the issuer would appropriate transition plans from one be able to serve in that capacity for three additional affected by the rotation requirement lead or concurring partner to the next. years before reaching a total of seven years as an would have had to remain completely The longer rotation period for the other audit partner on that client. off any engagements in the investment partners would allow them to spend 143 See, e.g., letter from Piercy, Bowler, Taylor & company complex for a period of five Kern, dated January 7, 2003; letter from Witt, Mares years before they could again audit the time on the engagement team to learn & Company PLC, dated January 11, 2003; letter from about the business and the industry Burton, McCumber & Cortez LLP, dated January 2, investment company. before having the ultimate responsibility 2003; letter from American Institute of Certified Commenters 149 raised significant for the engagement. Public Accountants, dated January 9, 2003; letter concerns in the application of the In response to these concerns, the from Spence, Marston, Bunch, Morris & Co., dated proposed rule to investment companies. January 13, 2003; letter from The Business 150 rules we are adopting require partners Roundtable, dated January 14, 2003. Two commenters were concerned subject to the rotation requirements, 144 See, e.g., letter from Weaver & Martin LLC, with the prohibition of partners who other than the lead and concurring dated December 31, 2002; letter from CPA had served five consecutive years at a partner, to rotate after no more than Associates, dated January 3, 2003; letter from service provider or other non- Symonds, Evans & Company PC, dated December investment company entity in the seven years and to be subject to a two- 19, 2002. year time-out. In this way, a partner 145 See, e.g., letter from U.S. Small Business could serve either as the lead partner on Administration’s Office of Advocacy, January 13, 147 AICPA, SEC Practice Section, Requirements of a significant subsidiary or as an ‘‘audit 2003. We note that the GAO also is conducting a Members, at item e. study on the consolidation in the accounting 148 As defined in section 10A(f) of the Securities partner’’ at the parent or issuer level for industry as directed by Section 701 of the Sarbanes- Exchange Act of 1934 (15 U.S.C. 78j–1(f)). Oxley Act. 149 See, e.g., letter from Deloitte & Touche, dated 140 17 CFR 210.2–01(f)(7). 146 See, e.g., letter from Castaing, Hussey & Lolan January 10, 2003; letter from Putnam Mutual Funds, 141 See, e.g., letter from Ernst & Young, dated LLC, dated January 10, 2003; letter from Piercy, not dated; letter from The Vanguard Group, dated January 6, 2003; letter from Deloitte & Touche, Bowler, Taylor & Kern, dated January 7, 2003; letter January 13, 2003; letter from dated January 10, 2003; letter from KPMG, dated from Trice, Geary & Myers LLC, dated January 13, PricewaterhouseCoopers, dated January 8, 2003. January 9, 2003; letter from Dixon Odom, dated 2003; letter from Smith, Carney & Co., dated 150 See, letter from PricewaterhouseCoopers, December 20, 2002; letter from The Business January 7, 2003; letter from Cranmore, FitzGerald & dated January 8, 2003; letter from Investment Roundtable, dated January 14, 2003. Meaney, dated December 27, 2002. Company Institute, dated January 13, 2003.

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investment company complex from to prohibit accountants from rotating to determining when the lead partner must serving on the audit of a registered other entities in the investment rotate, time served in the capacity of investment company in the same company complex. Consequently, the lead partner prior to the effective date investment company complex without rule, as adopted, will not allow audit of these rules is included. For example, first observing the five year ‘‘time out’’ partners to satisfy the partner rotation for a lead partner serving a calendar period.151 One commenter 152 was requirements by rotating between year audit client, if 2003 was that concerned with the prohibition against investment companies in the same partner’s fifth, sixth or seventh year as partners who had served five investment company complex. The lead partner for that audit client, he or consecutive years at an unregistered individual required to rotate and the she would be able to complete the fund from serving on the audit of a applicable periods for rotation and current year’s audit and he or she must registered investment company in the ‘‘time-out’’ from the audit client will be rotate off for the 2004 engagement. same investment company complex applied in the same manner to The other partners subject to these without first observing the five year investment companies as to other rotation requirements were not ‘‘time out’’ period. One commenter 153 issuers. Lead and concurring partners previously subject to rotation. emphasized the financial reporting will be required to rotate after a total of Accordingly, we believe that some personnel and accounting control five consecutive years in either role. At additional transition is needed for these systems used by investment companies a minimum, all audit partners that audit partners. In order to maintain continuity are different from those used for other investment companies will be required on the engagement, firms will need to entities in the investment company to rotate after a total of seven years of stagger the rotation of partners. This is complex. As a result, the rotation of an consecutive service on any of the especially critical for the lead and audit partner from a non-registered investment companies in the same concurring partners. As a consequence, investment company entity in the investment company complex. Lead and to facilitate the process of staggering the investment company complex to a concurring partners will be required to rotation of the lead and concurring registered investment company would observe a ‘‘time out’’ period for five partners, the rotation requirements for provide a ‘‘fresh look’’ at the accounting years before returning to the investment the concurring partner are effective as of control systems and the financial company and all other audit partners the end of the second fiscal year after reporting process. In addition, due to will be subject to a two year ‘‘time out’’ the effective date of the rules. Therefore, the structure of the investment company period. a concurring partner for a calendar year complex organizations, the rotated The unique structure of investment audit client for which 2003 was his or partner typically would not be dealing company complexes allows for many her fourth or greater year in that role,154 with the same individuals in different fiscal year-ends within the he or she would be able to serve in that management or on the audit committee same investment company complex. In capacity for the 2004 audit before being that they might have dealt with order to allow a partner to serve the subject to rotation. previously as the audit partner on an total number of allowable periods on Since the other partners covered by entity in the investment company any one investment company audit in these rules were neither identified in complex. the complex, while still requiring the Act nor previously subject to We believe that the rotation partners to rotate off an investment rotation requirements, we believe, requirements with regard to investment company complex at the end of their consistent with many commenters, that companies should prohibit the rotation specific periods, we have defined a longer transition period is warranted. of partners between different investment consecutive years of service for Accordingly, for other partners, the companies in the same investment investment companies. A consecutive rules are effective as of the beginning of company complex. We do not believe, year of service for audit partners the first fiscal year after the effective however, that it is necessary for the rule includes all fiscal year-end audits of date of these rules. However, in investment companies in the same determining the time served, that first 151 Commenters also were concerned with the investment company complex that are fiscal year will constitute the first year availability of competent audit, tax and other performed in a continuous 12-month of service for such partners. For specialized partners to effectively rotate between period. This would allow audit partners example, for a lead partner on a the investment company audits. One commenter auditing multiple investment companies significant subsidiary with a calendar indicated tax partners typically served a far greater year reporting period, 2004 would number of investment company audit clients per in the same investment company partner than their counterparts in the other industry complex to audit each investment constitute the first year in the seven year practices (see, letter from Investment Company company for five or seven complete rotation period, regardless of how many Institute, dated January 13, 2003). Commenters fiscal years, as appropriate. years he or she had previously served in were concerned that lack of depth in this industry that capacity. would ultimately reduce audit quality and harm 6. Effective Date and Transition investors (see, e.g., letter from Putnam Mutual Finally, we recognize that in many Funds, not dated). Commenters also were In order to allow firms to establish an foreign jurisdictions partners previously concerned with the depth of audit resources in orderly transition of their audit were not subject to rotation certain markets (see, e.g., letter from Oppenheimer engagement teams, the Commission is requirements. Accordingly, for all Funds, Inc., dated January 13, 2003). One commenter indicated the proposed rule would establishing transition provisions partners with foreign accounting firms effectively bar them from performing audits of related to the partner rotation who are subject to rotation investment companies (see, letter from McCurdy & requirements. Since the lead partner requirements, the rules are effective as Associates, CPAs, Inc., dated December 12, 2002). was previously subject to rotation of the beginning of the first fiscal year We have addressed these concerns by the changes after the effective date of these rules. to the partner rotation requirements that impact all requirements, these rotation issuers in addition to registered investment requirements should not impose a Likewise, in determining the time companies. significant incremental burden on served, that first fiscal year will 152 See, letter from PricewaterhouseCoopers, accounting firms. Accordingly, the dated January 8, 2003. rotation requirements applicable to the 154 Since concurring partners were not previously 153 See, letter from PricewaterhouseCoopers, lead partner are effective for the first subject to rotation requirements, it is quite likely dated January 8, 2003. See, also, letter from that many partners will have served in significantly Investment Company Institute, dated January 6, fiscal year ending after the effective date more than five years in that capacity at the time of 2003. of these rules. Furthermore, in transition.

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constitute the first year of service for approval requirements in certain purposes of state law as audit such partners. Thus, for a partner from circumstances. services.158 We recognize that a foreign firm who is serving as the lead Some commenters 155 believed that domestically and internationally there partner for an issuer with a calendar the pre-approval alternatives stated are various requirements for statutory year, 2004 would constitute the first above, coupled with the disclosure of audits. These rules recognize this fact; year of the five year rotation period for fees based on the pre-approval practices accordingly, such engagements are that partner, without regard to the conveyed an impression that one viewed as audit services in the context number of years he or she had method of pre-approval was preferable. of these rules. previously served in that capacity. Other commenters 156 stated that it was Furthermore, audit services also uncertain whether audit committees would include services performed to D. Audit Committee Administration of could use policies and procedures as the fulfill the accountant’s responsibility the Engagement basis for pre-approving audit services. under GAAS. For example, in some Historically, management has retained The rules we are adopting are situations, a tax partner may be the accounting firm, negotiated the intended to clarify that, to the extent involved in reviewing the tax accrual audit fee, and contracted with the permitted by the Sarbanes-Oxley Act,157 that appears in the company’s financial accounting firm for other services. Our the audit committee may pre-approve statements. Since that is a necessary proposed rules, however, recognized the audit and non-audit services based on part of the audit process, that activity critical role that audit committees can policies and procedures and that constitutes an audit service. Likewise, play in the financial reporting process explicit approval and approval based on complex accounting issues may require and in helping accountants maintain policies and procedures are equally that the firm engage in consultation their independence from audit clients. acceptable. As discussed later in this with ‘‘national office’’ or other technical An effective audit committee may release, we have revised the proposed reviewers to reach an audit judgment. enhance the accountant’s independence disclosures to match our conclusions Whether or not the firm separately by, among other things, providing a about pre-approval processes. charges for that consultation, the forum apart from management where Accordingly, the final rules require activity constitutes an audit service the accountants may discuss their that the audit committee pre-approve all since it is a necessary procedure used by concerns. It may facilitate permissible non-audit services and all the accountant in reaching an opinion communications among the board of audit, review or attest engagements on the financial statements. directors, management, internal auditors required under the securities laws. The This would contrast with a situation and independent accountants. An audit rules require that before the accountant where a registrant is evaluating a committee also may enhance auditor is engaged by the issuer or its proposed transaction and asks the independence from management by subsidiaries, or the registered independent accountant to evaluate the appointing, compensating and investment company or its subsidiaries, accounting for the proposed transaction. overseeing the work of the independent to render the service, the engagement is: After research and consultation, the accountants. • approved by the issuer’s or accounting firm provides an answer to the registrant and bills for those In that light, Section 202 of the registered investment company’s audit services. In considering the nature of the Sarbanes-Oxley Act requires that audit committee; or • services, these services would not be committees pre-approve the services— entered into pursuant to pre- considered to be audit services. both audit and permitted non-audit—of approval policies and procedures established by the audit committee of These rules require that the audit the accounting firm. committee pre-approve all services. In Specifically, our proposed rules the issuer or registered investment company, provided the policies and doing so, the Act permits the audit would have required the audit committee to establish policies and committee to approve the engagement of procedures are detailed as to the particular service, the audit committee procedures for pre-approval provided the independent accountant to audit the they are detailed as to the particular issuer and its subsidiary’s financial is informed of each service, and such policies and procedures do not include service and designed to safeguard the statements and have ongoing continued independence of the communications with the accountant. delegation of the audit committee’s responsibilities to management. accountant. For example, the Sarbanes- The proposals also would have required Oxley Act allows for one or more audit that the audit committee pre-approve all As provided in the Sarbanes-Oxley Act, the rules recognize audit services to committee members who are permissible non-audit services and all independent board directors to pre- audit, review or attest engagements be broader than those services required to perform an audit pursuant to GAAS. approve the service. Decisions made by required under the securities laws the designated audit committee either: For example, the Act identifies services related to the issuance of comfort letters members must be reported to the full • before the accountant is engaged by and services related to statutory audits audit committee at each of its scheduled the audit client to provide services other required for insurance companies for meetings.159 than audit, review or attest services, the Consistent with the Sarbanes-Oxley audit client’s audit committee expressly 155 See, e.g., letter from The Business Roundtable, Act, our rules also reflect a de minimis approve the particular engagement; or dated January 13, 2003; letter from Chamber of • any such engagement be entered Commerce of the United States of America, dated 158 Section 202 of the Sarbanes-Oxley Act; into pursuant to detailed pre-approval January 9, 2003; letter from Investment Company 15U.S.C 78j-1(i)(1)(A). policies and procedures established by Institute, dated January 13, 2003; letter from Pfizer, 159 The Act permits the audit committee to predated January 13, 2003; letter from Sullivan & the audit committee and the audit approve a service at any time in advance of the Cromwell LLP, dated January 10, 2003; letter from activity. We expect that audit committees will committee be informed on a timely basis Wells Fargo & Company, dated January 13, 2003. establish policies for the maximum period in of each service. 156 See, e.g., letter from America’s Community advance of the activity the approval may be granted. Finally, consistent with the Bankers, dated January 13, 2003; letter from See ‘‘Report of the Senate Committee on Banking, American Society of Corporate Secretaries, dated Housing and Urban Affairs, Public Company provisions of the Act, under our January 13, 2003; letter from Ernst & Young, dated Accounting Reform and Investor Protection Act of proposals, audit committees could January 6, 2003. 2002,’’ 107th Cong., 2nd Sess., at 20 (Report 107– apply a de minimis exception to the pre- 157 Section 202 of the Sarbanes-Oxley Act. 205. July 3, 2002).

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exception solely related to the provision commenters 162 indicated investment services provided directly to the of non-audit services for an issuer. This company complexes often have more investment company and those services exception waives the pre-approval than one audit committee for the provided to an entity in the investment requirements for non-audit services various investment companies in the company complex where the nature of provided that: (1) All such services do complex. Additionally, the other the services provided have a direct not aggregate to more than five percent entities in the complex, themselves, will impact on the operations or financial of total revenues paid by the audit client often have their own audit committees. reporting of the investment company. to its accountant in the fiscal year when As proposed, the rule would require not The final rules would allow the services are provided, (2) were not only the audit committee of the entity investment company’s audit committee recognized as non-audit services at the engaging the auditor to provide the non- to assess and determine before the work time of the engagement, and (3) are audit service to pre-approve the use of is conducted the impact that the promptly brought to the attention of the accountant, but also would require services might reasonably have on the audit committee and approved prior to each audit committee of an investment investment company accountant’s the completion of the audit by the audit company registrant in the complex to independence as it relates to the audits committee or one or more designated pre-approve the use of the accountant. of the investment company’s financial representatives. Lastly, as further This would ultimately result in each statements. In addition, in response to discussed later in this release, the audit investment company audit committee one commenter’s 167 suggestion committee’s policies for pre-approvals having veto power over all non-audit concerning the non-audit services that of services should be disclosed by services provided to the complex even should be disclosed, we have clarified registrants in periodic annual reports. if those services did not relate directly the entities that provide services to the As noted earlier, the proposed rules to the financial reporting or operations investment company that must be pre- provided two alternatives related to pre- of the investment company. One approved. As adopted only the service 163 approval of permissible non-audit commenter expressed concern over providers that provide ‘‘ongoing’’ services as well as all audit, review, or the burden this would place on the services to the investment company attest engagements required under the investment company’s audit committee. must have their non-audit services pre- 164 securities laws: either pre-approval Other commenters expressed approved. Thus, the final rules would before the accountant is engaged to concern with whether the members of limit the number of instances where provide the services or the engagement the audit committee would be capable pre-approval would be sought from is entered into pursuant to detailed pre- of evaluating the appropriateness of multiple audit committees in the approval policies and procedures services provided to entities unrelated complex. established by the audit committee, to the investment company’s operations Although it may not be practical or with the audit committee informed on a or financial reporting. feasible for the investment company Commenters 165 suggested the rule timely basis of each service. In response audit committee to pre-approve all should require the audit committee of to issues raised by commenters, the final services provided to the investment the investment company to only pre- rule has been modified to remove the company complex, we continue to approve those audit and non-audit believe the audit committee should be appearance of an implicit preference of services provided directly to the one alternative over another. aware of all services the accountant is investment company. One providing to entities in the investment With respect to investment commenter 166 suggested the rule should company complex. One commenter 168 companies, the proposed rule would require the audit committee of the agreed with this position suggesting have required pre-approval not only of investment company to pre-approve non-audit services be disclosed the non-auditing services provided to those audit and non-audit services that quarterly. As a result, we are adopting the investment company, but also relate to the operations of the a requirement in the rule that the require pre-approval by the investment investment company. company’s audit committee of the non- After considering the comments, we accountant disclose to the audit auditing services provided to the believe modifying the approach by committee all services provided to the investment company’s investment requiring the pre-approval of non-audit investment company complex, adviser and any entity controlling, services to only those provided to the including the fees associated with those controlled by, or under common control investment company directly, as services. with the investment adviser that suggested by several of the commenters, The de minimis exception that was provides services to the investment would not be consistent with the spirit proposed would have calculated the company. or intent of the Sarbanes-Oxley Act. To percentage threshold based on the total Commenters 160 expressed concern address the commenters’ concerns, but revenues paid to the investment over the breadth of this proposed rule preserve the intent of the legislation, the company’s accountant by the and the unintended consequences of the rules as adopted would limit the investment company, its investment pre-approval process. Commenters 161 investment company’s audit committee adviser and any entity controlling, observed that an auditor could provide pre-approval responsibility to those controlled by, or under common control a non-audit service to an entity in an with the investment adviser that investment company complex that 162 See, letter from PricewaterhouseCoopers, provided services to the investment would require the pre-approval of dated January 8, 2003; letter from Investment company. We asked for comment on the Company Institute, dated January 13, 2003. multiple audit committees. Some appropriate methodology for calculating 163 See, letter from Investment Company Institute, the de minimis exception. One dated January 13, 2003. commenter 169 suggested it would be 160 See, e.g., letter from Deloitte & Touche, dated 164 See, letter from PricewaterhouseCoopers, January 10, 2003; letter from Ernst & Young, dated dated January 8, 2003; letter from Deloitte & January 6, 2003; letter from Investment Company Touche, LLP, dated January 10, 2003. 167 See, letter from PricewaterhouseCoopers, Institute, dated January 13, 2003. 165 See, letter from Ernst & Young, LLP, dated dated January 8, 2003. 161 See, e.g., letter from Ernst & Young, dated January 6, 2003; letter from Investment Company 168 See, letter from KPMG, LLP, dated January 9, January 6, 2003; letter from Deloitte & Touche, Institute, dated January 13, 2003. 2003. dated January 10, 2003; letter from 166 See, letter from PricewaterhouseCoopers, 169 See, letter from PricewaterhouseCoopers, PricewaterhouseCoopers, dated January 8, 2003. dated January 8, 2003. dated January 8, 2003.

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unfair to determine the calculation of not they were pre-approved by the audit because the compensation was not the de minimis exception based on the committee—the accounting firm will directly related to sales activities, the total fees paid to the accountant by the have 12 months from the effective date operation of the rule would have been investment company because the of these rules to complete these services. difficult given the size and nature of resulting threshold would be so low; the For example, an engagement to provide some firms’ national and global practical effect would be no de minimis non-audit services that was entered into operations. For example, read literally exception for investment companies. in December 2002, which may or may as proposed, a partner’s compensation Therefore, the commenter suggested the not be complete by the effective date of could not include a proportionate share threshold should coincide with the these rules, is not subject to these rules, of the accounting firm’s overall profits, scope of the pre-approval requirement. but must be completed within 12 because some of those profits would be We agree with the commenter and months of the effective date of these derived from the provision of non-audit believe that the calculation of the de rules. We believe these transition services by other firm personnel. minimis exception should not relate provisions will permit an orderly Second, some commenters 173 observed solely to the level of services provided completion of existing engagements and that the provisions were perceived to be to the investment company. We have permit accountants and audit overly broad because, as proposed, they modified the proposed rule to determine committees adequate time to prepare to would have applied to partners who the threshold based on the services implement the new rules. provide specialized services and would provided to the investment company have prevented them from being complex that were subject to the pre- E. Compensation rewarded for selling or performing approval requirements for the We understand that some accounting services in their area of expertise. For investment company’s audit committee. firms offer their professionals cash example, under the proposal an audit The proposed rules would require the bonuses and other financial incentives partner could be rewarded for selling audit committee to pre-approve all to sell products or services, other than audit, review or attest services; audit, review, and attest reports audit, review, or attest services, to their however, tax partners could not be required under the securities laws. audit clients. Such compensation rewarded for selling additional tax Section 32(a) of the Investment arrangements may create a financial or services to audit clients if they were Company Act requires that a majority of other self-interest that could constitute members of the audit engagement team. the directors who are not interested a threat to the accountant’s That is, audit partners could be persons appoint the independent objectivity.171 These arrangements also rewarded for selling within their own accountant of the investment company. may detract from audit quality by discipline, but tax partners could not. We requested comment on who should incentivizing the audit partner to focus We are addressing these concerns by approve the selection of the accountant on selling non-audit services rather than clarifying that the compensation of the investment company, for providing high quality audit services. concerns exist where the audit partner’s example, the independent directors, the compensation is based on the act of audit committee or both. One We also question whether a reasonable investor with full knowledge selling non-audit services and commenter 170 stated that the audit specifying that the rule applies to audit committee should select the accountant of such incentive programs would believe that the accountant could partners. As described more fully in our and the independent directors should discussion of definitions, the term audit ratify the selection, thereby retaining the function with the independence and objectivity that is necessary for him or partner refers to the lead and concurring independent directors as the ultimate partners and other partners on the audit decision making authority with respect her to maintain, both in fact and in appearance. We are concerned that an engagement team who have to accountant selection. After responsibility for decision-making on consideration of these matters, we have accountant might be viewed as compromising accounting judgments in significant auditing, accounting, and determined to adopt the rules as reporting matters that affect the proposed. order not to jeopardize the potential for increased income from the act of selling financial statements or who maintain Also, as discussed later in this release, regular contact with management or the these provisions are supplemented as a non-audit services to the audit client. Because of this concern, we proposed audit committee. In particular, audit result of the proxy disclosure partners, other than specialty partners, requirements. We believe that that an accountant’s independence would be deemed to have been impaired would include all audit partners serving disclosure of the procedures the audit the client at the issuer or parent.174 committee uses to pre-approve audit when he or she is compensated for selling or performing non-audit services Further, the lead partner on subsidiaries services, as well as the disclosure of all of the issuer whose assets or revenues non-audit services by category, for an audit client. Our proposed rule limited such compensation, direct or constitute 20% or more of the including those meeting the de minimis consolidated assets or revenues are exception stated above, will provide otherwise, that could be provided to any audit engagement team partner. included within the definition of audit investors valuable information that may partner. Conceivably, ‘‘compensation’’ Commenters expressed two primary be used to evaluate the relationships could include any form of cash or other concerns with the proposals. First, 172 that exist between the accountant and assets distributed to the audit partner, the audit client. including any income or benefit based These rules apply to all audit, review, 171 See, e.g., AICPA, Practice Alert 99–1, and attest services and non-audit Guidance for Independence Discussions with Audit Committees, (May 1999). from PricewaterhouseCoopers, dated January 8, services that are entered into after the 172 See, e.g., letter from American Institute of 2003. effective date of these rules. For Certified Public Accountants, dated January 9, 173 See, e.g., letter from Ernst & Young, LLP, dated arrangements for non-audit services 2003; letter from Deloitte & Touche, LLP, dated January 6, 2003; letter from Deloitte & Touche, LLP, entered into prior to the effective date January 10, 2003; letter from Ernst & Young, LLP, dated January 10, 2003; letter from KPMG, LLP, dated January 6, 2003; letter from Federation des dated January 9, 2003; letter from McGladrey & of these rules—regardless of whether or Experts Comptables Europeens, dated January 13, Pullen, LLP, dated January 9, 2003. 2003; letter from Institute of Chartered Accountants 174 As discussed previously, partners who 170 See, letter from Investment Company Institute, in England and Wales, dated December 24, 2002; provided ten or fewer hours of service are excluded dated January 13, 2003. letter from KPMG, LLP, dated January 9, 2003; letter from the definition of audit partner.

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on an evaluation of the partner’s than specialty partners,182 earns or of compensation to other audit performance. receives compensation 183 based on engagement team members for directly This rule prohibits accounting firms selling engagements to that audit client, selling non-audit services. We believe from establishing an audit partner’s to provide any services,184 other than that, however, the other audit compensation or allocation of audit, review, or attest services. engagement team members will perform partnership ‘‘units’’ based on the sale 175 The lead partner is responsible for in a fashion that is consistent with the of non-audit services to the partner’s managing not only the audit engagement direction and tone set by the audit 176 audit clients. This provision also but also the client relationship. The lead partners. Nonetheless, as it pre-approves reinforces the position that accountants partner is in a position to identify non-audit services an audit committee at the partner level should be viewed as potential services that could benefit the may wish to consider whether, in the skilled professionals and not as audit client. Furthermore, because of the company’s particular circumstances, conduits for the sale of non-audit lead partner’s frequent interaction with compensating a senior staff member on services to the audit partner’s individual management, he or she has the clients. This provision recognizes and opportunity to ‘‘pitch’’ those services to the audit engagement team based on his focuses on the need for independence of management. Thus, the lead partner or her success in selling the service to the most senior members of the relationship with management has been the company compromises that engagement team. However, this rule used by some as a conduit to sell non- individual’s or the firm’s independence. does not preclude an audit partner from audit services to the audit client.185 In Further, in conducting its oversight sharing in the profits of the audit contrast, partners at smaller operating review of registered public accounting practice and those of the overall firm.177 units and ‘‘specialty’’ partners typically firms, we expect that the Board will And, an audit partner’s evaluation could have a low level of involvement with monitor the impact of these rules on take into account a number of factors senior management and the audit quality and independence. responsibility for the overall directly or indirectly related to selling With respect to investment services to an audit client.178 presentation in the financial statements companies, the proposed rule on Accordingly, we are amending the is relatively low. auditor independence rules to address The application of these rules allows compensation would have prohibited all the practice of accountants being partners to be compensated for selling partners, principals and shareholders of compensated by their firms for selling services with their discipline. Thus, just an accounting firm that are members of non-audit products and services to their as an audit partner can be compensated the audit engagement team from being audit clients.179 The new rule would for selling audit and audit-related compensated for selling non-audit provide that an accountant is not services, so, too, can a tax partner be services to a registered investment independent if, at any point during the compensated for selling tax services. A company audit client or any other entity audit and professional engagement specialty partner receiving in the investment company complex. period,180 any audit partner,181 other compensation for selling within his or One commenter 186 suggested the rule her discipline does not create the same on partner compensation for investment 175 For purposes of this rule, the term ‘‘sale’’ is threat to independence as when an companies should apply only to the meant to encompass any revenue, fees, or audit partner is compensated for selling selling of non-audit services to the compensation related to non-audit services those non-audit services because the investment company itself and not to provided over the period of the evaluation, regardless when contracted. lead partner retains overall other entities in the investment 176 Id. responsibility for the conduct of the company complex. We disagree and 177 Consistent with the idea that an audit partner audit. Additionally, there is a continue to believe a partner on a cannot be directly compensated for selling non- concurring partner who reviews the registered investment company audit audit services, no part of that partner’s distribution work on the audit engagement team. should not be directly compensated for or other form of compensation should be directly received from selling of non-audit services (for Finally, specialty partners have limited selling non-audit services to other example, from a ‘‘pool’’ of profits generated by a relationships with management in the entities in the investment company valuation services business unit). In contrast, that context of their activities as a member complex, for example, the investment partner may receive distributions or other of the audit engagement team. company’s investment adviser. Thus, compensation from the ‘‘pool’’ attributable to the The rules that we are adopting audit practice, a geographic unit comprised of we have not made changes to this aspect several services or offices, or the entire firm. mitigate the concerns that an audit of the rule. 178 For example, an audit partner could be partner might be viewed as evaluated on the complexity of his or her compromising audit judgments in order We understand that because of the engagements, the overall management of the not to jeopardize the potential for seasonal nature of accounting firms that relationship with an audit client including the selling non-audit services. These rules many firms have fiscal periods that end provision of non-audit services, and/or the in the April to September time frame. In attainment of explicit sales goals. do not specifically address the provision 179 An audit partner could be compensated for recognition of this fact and selling audit or audit-related services to an audit 182 Specialty partners are, among others, those understanding that individuals may be client. Additionally, an audit partner could be partners who consults with others on the audit operating in the current period under an compensated for selling either audit or non-audit engagement team during the audit, review or established set of performance goals, the services to a non-audit client. attestation engagement regarding technical or 180 ‘‘Audit and professional engagement period’’ industry-specific issues. For example, such partners provisions of this paragraph will be includes both the period covered by the financial would include tax specialist and valuation effective in the fiscal periods of the statements being audited or reviewed and the specialist. accounting firm that commence after the 183 period of engagement to audit or review the client’s Nothing in these rules is meant to limit the effective date of these rules. Further, financial statements or to prepare a report filed with ability of an accounting firm from distributing the Commission. The period of engagement begins profits in a manner that is consistent with the recognizing that the application of this when the auditor signs an initial engagement letter operation of a partnership or service organization. rule could have a disproportionate or begins audit, review or attest procedures, and 184 For purposes of this discussion, services economic impact on small firms, we are ends when the client or the auditor notifies the include tangible products as well as professional Commission that the client is no longer the services. exempting firms with fewer than five auditor’s audit client. See Rule 2–01(f)(5) of 185 See e.g., In the Matter of Arthur Andersen LLP, Regulation S–X, 17 CFR 210.2–01(f)(5). Accounting and Auditing Enforcement Release No. 186 See, letter from Investment Company Institute, 181 17 CFR 210.2–01(f)(7)(ii). 1405 (June 19, 2001), at notes 15–17. dated January 13, 2003.

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audit clients that are issuers 187 and of internal audit, manager of financial look to the audit committee of the fewer than ten partners from the reporting). corporate general partner or to the full provisions of this requirement. board of directors as fulfilling the role 3. Financial Reporting Oversight Role of the audit committee. With respect to F. Definitions The term ‘‘financial reporting an individual general partner, the The rules that the Commission is oversight role’’ refers to a role in which registrant should look to the individual adopting impact various parties an individual has direct responsibility as fulfilling the role of the audit involved in the audit and financial for or oversight of those who prepare the committee. reporting process of issuers. To more registrant’s financial statements and We are, however, exempting asset- clearly identify those parties, we have related information (e.g., management backed issuers 191 and unit investment revised and added to the definitions in discussion and analysis), which will be trusts 192 from this requirement. Because included in a registrant’s document Rule 2–01(f) of Regulation S–X. This of the nature of these entities, such filed with the Commission. As noted section discusses those definitions. issuers are subject to substantially above, ‘‘accounting role and financial different reporting requirements. Most 1. Accountant reporting oversight role’’ previously was significantly, asset-backed issuers are one definition. In order to subject the not required to file financial statements The term ‘‘accountant’’ previously appropriate individuals to certain was defined under the rules of the like other companies. Similarly, unit portions of these rules, we have investment trusts are not required to Commission as a ‘‘certified public bifurcated the definitions. accountant or public accountant provide shareholder reports containing performing services in connection with 4. Audit Committee audited financial statements. Also, such an engagement for which independence Section 205 of the Sarbanes-Oxley Act entities typically are passively managed is required.’’ 188 We have added to the defines an audit committee as: pools of assets. Therefore, we are not applying the requirements related to definition the phrase, ‘‘registered public A committee (or equivalent body) accounting firm.’’ Under the provisions audit committees in this release to such established by and amongst the board of entities. of the Sarbanes-Oxley Act, public directors of an issuer for the purpose of accounting firms must register with the overseeing the accounting and financial 5. Audit Engagement Team Board in order to prepare or issue, or to reporting processes of the issuer and audits participate in the preparation or of the financial statements of the issuer. As discussed earlier in this release, the cooling off period applies to issuance of, any audit report with The Act further stipulates that if no members of the audit engagement team. respect to any issuer.189 Thus, the term such committee exists, then the audit As used in this release, the term audit ‘‘registered public accounting firm’’ committee is the entire board of engagement team means all partners (or refers to a firm that has registered with directors. For purposes of these person in an equivalent position) and the Board in accordance with the independence rules, the Commission is professional employees participating in requirements of the Sarbanes-Oxley Act. adopting the same meaning for audit an audit, review, or attestation 2. Accounting Role committee as used in the Act. The audit committee serves as an engagement of an audit client. Included within the audit engagement team Under the previous rules of the important body, serving the interests of investors, to help ensure that the would be partners and all other persons Commission, ‘‘accounting role or who consult with other members of the financial reporting oversight role’’ was a registrant and its accountants fulfill their responsibilities under the engagement team during the audit, defined term. However, because the review, or attestation engagement rules requiring a cooling-off period for securities laws. Because the definition of an audit committee can include the regarding technical or industry-specific employment at the issuer relate only to issues, transactions, or events. those performing a financial reporting entire board of directors if no such oversight role, the Commission has committee of the board exists, these 6. Audit Partner rules do not require registrants to separated the definition of ‘‘accounting The term audit partner is an integral establish audit committees. Likewise, role’’ from that of ‘‘financial reporting part of the rules we are adopting related the auditor independence rules do not oversight role.’’ The term ‘‘accounting to partner compensation and partner require that the committee be composed role’’ refers to a role where a person can rotation. In each case, the affected of independent members of the or does exercise more than minimal parties are audit partners. As used in board.190 influence over the contents of the this rule, the term audit partner means Some entities do not have boards of accounting records or over any person a partner (or person in an equivalent directors and therefore do not have who prepares the accounting records. position) who is a member of the audit audit committees. For example, some All persons in a ‘‘financial reporting engagement team (as defined above) limited liability companies and limited oversight role’’ (defined below) also are who has responsibility for decision- partnerships that do not have a in an ‘‘accounting role.’’ Persons in an making on significant auditing, corporate general partner may not have accounting role include individuals in accounting, and reporting matters that an oversight body that is the equivalent clerical positions responsible for affect the financial statements or who of an audit committee. We are not accounting records (e.g., payroll, maintains regular contact with exempting these entities from the accounts payable, accounts receivable, management and the audit committee. requirements. Rather, such issuers purchasing, sales) as well as those who The term audit partner would include should look through each general report to individuals in financial the lead and concurring partners, partner of the successive limited reporting oversight roles (e.g., assistant partners such as relationship partners partnerships until a corporate general controller, assistant treasurer, manager who serve the client at the issuer or partner or an individual general partner is reached. With respect to a corporate 187 As defined in section 10A(f) of the Securities 191 As defined in 17 CFR 240.13a–14(g) and Exchange Act of 1934 (15 U.S.C. 78j–1(f)). general partner, the registrant should 240.15d–14(g). 188 17 CFR 2–01(f)(1). 192 As defined by Section 4(2) of the Investment 189 See, Section 102(a) of the Sarbanes-Oxley Act. 190 See, Release No. 33–8173 (Jan. 8, 2003). Company Act [15 U.S.C. 80a–4(2)].

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parent level, other than a partner who Accountants are required under certain information be communicated consults with others on the audit GAAS to provide these communications by the independent accountant to the engagement team during the audit, in a timely manner but not necessarily audit committee. Some commenters 198 review, or attestation engagement before the issuance of the audit believe that the Commission should regarding technical or industry-specific report.195 Accountants also may require that these communications be in issues, transactions, or events, and the communicate with audit committees on writing. Others,199 however, disagree. lead partner on subsidiaries of the issuer matters in addition to those specifically We have not required that the whose assets or revenues constitute required by GAAS, including auditing communication be in writing. We would 20% or more of the consolidated assets issues, engagement letters, management expect, however, that such or revenues of the issuer.193 representation letters, internal controls, communications would be documented auditor independence, and others. by the accountant and the audit G. Communication With Audit Section 204 of the Sarbanes-Oxley Act committee. We believe that many of Committees directs the Commission to issue rules these communications currently are Auditors are required by GAAS to requiring timely reporting of specific being made as accountants fulfill their communicate certain matters to the information by accountants to audit responsibilities under GAAS and the audit committee. In particular, GAAS committees. In response to the Act, we securities laws.200 require that the accountant should proposed amending Regulation S–X to In describing the role and determine that the audit committee is require each public accounting firm responsibilities of the audit committee, informed about matters such as: registered with the Board that audits an Warren Buffett has stated that: • Auditor’s responsibility under issuer’s financial statements to report, Their function * * * is to hold the GAAS, prior to the filing of such report with the auditor’s feet to the fire. And, I suggest * * * • Significant accounting policies, Commission, to the issuer or registered the audit committee ask [questions] of the • Methods used to account for investment company’s audit committee: auditors [including]: if the auditor were significant unusual transactions, (1) All critical accounting policies and solely responsible for preparation of the • Effects of significant accounting practices used by the issuer or registered company’s financial statements, would they policies in controversial or emerging investment company, (2) all alternative have been prepared in any way differently than the manner selected by management? areas for which there is a lack of accounting treatments of financial They should inquire as to both material and authoritative guidance or consensus, information within generally accepted non-material differences. If the auditor would • Process used by management in accounting principles (‘‘GAAP’’) that have done anything differently than formulating particularly sensitive have been discussed with management, management, then explanations should be accounting estimates and the basis for including the ramifications of the use of made of management’s argument and the the auditor’s conclusions regarding the such alternative treatments and auditor’s response.201 reasonableness of those estimates, disclosures and the treatment preferred Requiring that the accountants • Material audit adjustments by the accounting firm, and (3) other communicate information to the audit proposed and immaterial adjustments material written communications committee will aid the audit committee not recorded by management, between the accounting firm and in fulfilling its responsibilities. • Auditor’s judgments about the management of the issuer or registered 1. Critical Accounting Policies and quality of the company’s accounting investment company. 196 Practices principles, Some commenters believe that • Auditor’s responsibility for other these communications should be the Consistent with our proposal, we are information in documents containing responsibility of management alone. establishing rules requiring audited financial statements, Others,197 however, believe that both communication by accountants to audit • Auditor’s views about significant the accountant and management should committees of all critical accounting matters that were the subject of share the responsibility for informing policies and practices.202 In December consultation between management and the audit committee about such matters. 2001, we issued cautionary advice other accountants, While we understand that management regarding each issuer disclosing in the • Major issues discussed with has the primary responsibility for the Management’s Discussion and management prior to retention, information contained in the financial Analysis 203 section of its annual report • Difficulties with management statements, since the accounting firm is encountered in performing the audit, retained by the audit committee, we 198 See, e.g., letter from Piercy Bowler Taylor & share the view reflected in Section 205 Kern, dated January 7, 2003; letter from Robert G. and Beard, undated; letter from Eide Bailly LLP, dated • Disagreements with management of the Sarbanes-Oxley Act and current January 8, 2003; letter from California Public over the application of accounting auditing standards, that the accounting Employees’ Retirement System, dated January 10, principles, the basis for management’s firm has a responsibility to 2003; letter from Lynn E. Turner, dated January 13, communicate certain information to the 2003. accounting estimates, and the 199 See, e.g., letter from Computer Sciences disclosures in the financial audit committee. As discussed below, Corporation, dated January 13, 2003; letter from statements.194 we are adopting rules requiring that Sullivan & Cromwell LLP, dated January 10, 2003; letter from America’s Community Bankers, dated January 13, 2003; letter from Deloitte & Touche LLP, 193 management prior to retention, and difficulties The term ‘‘audit partner’’ also would include dated January 10, 2003. any audit partner on a registered investment encountered in performing the audit, to the extent 200 See, ‘‘Audit Committee Disclosures,’’ Release company whether or not the investment company that those matters do not relate to accounting No. 34–42266, Dec. 22, 1999. issues consolidated financial statements. policies and practices. 201 Warren Buffett, Comments during SEC 194 195 Id. See, AU § 380, ‘‘Communication with Audit ‘‘Roundtable Discussion on Financial Disclosure 196 See, e.g., letter from The Institute of Chartered Committees.’’ There are additional GAAS and Auditor Oversight,’’ March 4, 2002. requirements related to auditor communications Accountants of Scotland, dated January 8, 2003; that are not included in this rule, such as the letter from Battelle & Battelle, LLP, dated December 202 In this release, the terms ‘‘critical accounting auditor’s responsibilities under GAAS, the auditor’s 20, 2002; letter from Grant Thornton LLP, dated policies and practices’’ and ‘‘critical accounting responsibilities related to documents containing January 13, 2003. policies’’ are used interchangeably. audited financial statements, and disagreements 197 See, e.g., letter from Gelford Hochstadt 203 Item 303 of Regulation S–K, (17 CFR 229.303), with management, consultations with other Pangburn, PC, dated January 3, 2003; letter from which requires disclosure about, among other accountants, major issues discussed with Ernst & Young LLP, dated January 6, 2003. Continued

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those accounting policies that required to make certain disclosures application of accounting principles to management believes are most critical to about its initial adoption of accounting relatively small transaction or events. the preparation of the issuer’s financial policies, including the choices the Therefore, these rules require statements.204 The cautionary advice company had among accounting communication, either orally or in indicated that ‘‘critical’’ accounting principles. writing, by accountants to audit policies are those that are both most Accountants and issuers should read committees of all alternative treatments important to the portrayal of the and refer to the December 2001 within GAAP for policies and practices company’s financial condition and Cautionary Guidance to determine the related to material items that have been results and require management’s most types of matters that should be discussed with management, including difficult, subjective or complex communicated to the audit committee the ramifications of the use of such judgments, often as a result of the need under this rule. We are not requiring alternative treatments and disclosures to make estimates about the effect of that those discussions follow a specific and the treatment preferred by the matters that are inherently uncertain.205 form or manner, but we expect, at a accounting firm. This rule is intended to As part of that cautionary advice, we minimum, that the discussion of critical cover recognition, measurement, and stated: accounting estimates and the selection disclosure considerations related to the Prior to finalizing and filing annual of initial accounting policies will accounting for specific transactions as reports, audit committees should review the include the reasons why estimates or well as general accounting policies. selection, application and disclosure of policies meeting the criteria in the We believe that communications critical accounting policies. Consistent with regarding specific transactions should auditing standards, audit committees should Guidance are or are not considered be apprised of the evaluative criteria used by critical and how current and anticipated identify, at a minimum, the underlying management in their selection of the future events impact those facts, financial statement accounts accounting principles and methods. determinations. In addition, we impacted, and applicability of existing Proactive discussions between the audit anticipate that the communications corporate accounting policies to the committee and the company’s senior regarding critical accounting policies transaction. In addition, if the management and auditor about critical will include an assessment of accounting treatment proposed does not accounting policies are appropriate.206 management’s disclosures along with comply with existing corporate In May 2002, the Commission any significant proposed modifications accounting policies, or if an existing proposed rules to require disclosures by the accountants that were not corporate accounting policy is not that would enhance investors’ included. applicable, then an explanation of why understanding of the application of the existing policy was not appropriate companies’ critical accounting 2. Alternative Accounting Treatments or applicable and the basis for the policies.207 The May 2002 proposed We recognize that the complexity of selection of the alternative policy rules cover (1) accounting estimates a financial transactions results in should be discussed. Regardless of company makes in applying its accounting answers that are often the whether the accounting policy selected accounting policies and (2) the initial subject of significant debate between preexists or is new, the entire range of adoption by a company of an accounting management and the accountants. Some alternatives available under GAAP that policy that has a material impact on its commenters 208 to the proposed rules were discussed by management and the financial presentation. Under the first suggested that this rule be restricted to accountants should be communicated part of those proposed rules, a ‘‘critical material accounting alternatives. These along with the reasons for not selecting accounting estimate’’ is defined as an commenters indicated that restricting those alternatives. If the accounting accounting estimate recognized in the these communications will assist audit treatment selected is not, in the financial statements (1) that requires the committee members by focusing their accountant’s view, the preferred registrant to make assumptions about attention on important accounting method, we expect that the reasons why matters that are highly uncertain at the alternatives. One commenter 209 believes the accountant’s preferred method was time the accounting estimate is made that only alternative treatments under not selected by management also will be and (2) for which different estimates GAAP that were the subject of serious discussed. that the company reasonably could have consideration and debate by the Communications regarding general used in the current period, or changes accountant and management should be accounting policies should focus on the in the accounting estimate that are communicated to the audit committee. initial selection of and changes in reasonably likely to occur from period We understand the concerns significant accounting policies, as 210 to period, would have a material impact expressed and, accordingly, we have required by GAAS, and should on the presentation of the registrant’s clarified the final rule. Providing audit include the impact of management’s financial condition, changes in financial committees with information on judgments and accounting estimates, as condition or results of operations. The material accounting alternatives is well as the accountant’s judgments May 2002 proposed rules outline certain consistent with the objectives of the Act about the quality of the entity’s disclosures that a company would be and will minimize the risk that audit accounting principles. The discussion of required to make about its critical committee members will be distracted general accounting policies should include the range of alternatives accounting estimates. In addition, under from material accounting policy matters available under GAAP that were the second part of the May 2002 by the numerous discussions between discussed by management and the proposed rules, a company would be the accountant and management on the accountants along with the reasons for selecting the chosen policy. If an things, trends, events or uncertainties known to 208 See, e.g., letter from Chamber of Commerce of management that would have a material impact on the United States of America, dated January 9, 2003; existing accounting policy is being reported financial information. letter from Battelle & Battelle LLP, dated December modified, then the reasons for the 204 Release No. 33–8040, Dec. 12, 2001, (66 FR 20, 2002; letter from Eli Lilly and Company, dated change also should be communicated. If 65013). January 9, 2003; letter from Computer Sciences the accounting policy selected is not the 205 Id. Corporation, dated January 13, 2003; letter from 206 Id. (footnotes omitted). PricewaterhouseCoopers, dated January 8, 2003. accountant’s preferred policy, then we 207 Release No. 33–8090, May 10, 2002, (67 FR 209 See, e.g., letter from Deloitte & Touche LLP, 35620). dated January 10, 2003. 210 See, AU § 380.

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expect the discussions to include the adjustments and reclassifications not information required to be reasons why the accountant considered recorded, if any; communicated was appropriate, the one policy to be preferred but that • Engagement letter; 214 and timing of such communications would policy was not selected by management. • Independence letter.215 be problematic for investment The separate discussion of critical These examples are not exhaustive, companies. Commenters 219 stated that accounting policies and practices is not and accountants are encouraged to investment companies within an considered a substitute for critically consider what additional investment company complex communications regarding general written communications should be frequently have a common board of accounting policies, since the provided to audit committees. directors, but have staggered fiscal-year discussion about critical accounting ends. As a result, the proposed rules policies and practices might not 4. Timing of Communications could require accountants to encompass any new or changed general Commenters 216 generally agreed with communicate with audit committees as accounting policies and practices. our proposal that the communications frequently as monthly. To eliminate this Likewise, this discussion of general should occur prior to the filing of the burden, some commenters 220 suggested accounting policies and practices is not issuer’s periodic annual report, although these discussions occur as infrequently intended to dilute the communications a commenter 217 suggested that the as annually, with two commenters 221 related to critical accounting policies communications should occur suggesting updates for material changes. and practices, since the issues affecting throughout the period. The Act requires Another commenter 222 suggested that critical accounting policies and that the communications be timely we leave communication of these practices, such as sensitivities of reported to the audit committee. For matters up to the discretion of the assumptions and others, may be tailored purposes of the requirements of this investment company’s audit committee specifically to events in the current provision, our rule specifies that the and the accountant. year, and the selection of general communications between the We believe it is important to discuss accounting policies and practices accountant and the audit committee critical accounting policies, alternative should consider a broad range of occur prior to the filing of the audit methodologies, and other material transactions over time. report with the Commission pursuant to information close to the time when the 3. Other Material Written applicable securities laws. As a result, audit report is filed. It is not our Communications these discussions will occur, at a intention, however, to have accountants minimum, during the annual audit, but communicate the same information to We understand written we expect that they could occur as the audit committee multiple times communications between accountants frequently as quarterly or more often on during the year. As adopted, the final and management range from formal a real-time basis. rules require the accountant to documents, such as engagement letters, The timing of these communications communicate to the audit committee of to informal correspondence, such as is intended to occur before any audit an investment company annually, and if administrative items. We also report is filed with the Commission the annual communication is not within acknowledge that historically not all pursuant to the securities laws. We 90 days prior to the filing, provide an forms of written communications believe that this rule will ensure that update in the 90 day period prior to the provided to management have been these communications occur prior to filing, of any changes to the previously provided to the audit committee. Our filing of annual reports and proxy reported information.223 rule is intended to implement Section statements, as well as prior to filing The adopted rules, in effect, would 205 of the Sarbanes-Oxley Act, which registration statements and other require an accountant of an investment clarified the substance of information periodic or current reports when audit company complex where the individual that should be provided by accountants reports are included. funds have different fiscal year ends to to audit committees to facilitate communicate the required information 5. Investment Companies accountant and management oversight no more frequently than four times by those committees. The proposed rules would have during a calendar year. We believe this The Sarbanes-Oxley Act specifically required accountants to communicate should not place an undue burden on cites the management letter and with an audit committee of an investment company audit committees schedules of unadjusted differences as investment company all critical because many of the boards of directors examples of material written accounting policies, alternative communications to be provided to audit methodologies and other material Institute, dated January 13, 2003; letter from committees. Examples of additional information before filing an audit report PricewaterhouseCoopers, dated January 8, 2003. written communications that we expect with the Commission. Although 219 See, e.g., letter from The Vanguard Group, dated January 13, 2003; letter from Investment will be considered material to an issuer commenters 218 generally agreed that the include: Company Institute, dated January 13, 2003; letter • Management representation from Ernst & Young, dated January 6, 2003. 214 See, SAS No. 83, ‘‘Establishing an 220 211 See, letter from The Vanguard Group, dated letter; Understanding With the Client,’’ AU § 310. January 13, 2003; letter from Investment Company • Reports on observations and 215 See, SQCS No. 2, ‘‘System of Quality Control Institute, dated January 13, 2003; letter from recommendations on internal for a CPA Firm’s Accounting and Auditing PricewaterhouseCoopers, dated January 8, 2003. controls; 212 Practice,’’ QC § 20. 221 See, letter from Investment Company Institute, • Schedule of unadjusted audit 216 See, e.g., letter from California Public dated January 13, 2003; letter from The Vanguard differences,213 and a listing of Employees’ Retirement System, dated January 10, Group, dated January 13, 2003. 2003; letter from Computer Sciences Corporation, 222 See, letter from Ernst & Young, dated January dated January 13, 2003; letter from American 6, 2003. 211 See, SAS No. 85, ‘‘Management Institute of Certified Public Accountants, dated 223 The rule also would require communication of Representations,’’ AU § 333. January 9, 2003; letter from a description of all non-audit services provided, 212 See, SAS 60, ‘‘Communication of Internal PricewaterhouseCoopers, dated January 8, 2003. including fees associated with the services, to the Control Related Matters Noted in an Audit,’’ AU 217 See, e.g., letter from Lynn E. Turner, dated investment company complex that were not subject § 325. January 13, 2003. to the pre-approval requirements for investment 213 See, SAS No. 89, ‘‘Audit Adjustments,’’ AU 218 See, letter from The Vanguard Group, dated companies as discussed in Section II.D of this § 333. January 13, 2003; letter from Investment Company release.

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for investment companies meet on a approach of our proposals, however, services, such as tax services and quarterly basis.224 some commenters 228 requested accounting consultations, may not be clarification relating to the billed as audit services. However, to the H. Expanded Disclosure categorization of certain types of extent that such services are necessary To allow the issuer’s investors to be services. For example, the discussion to comply with GAAS, an appropriate better able to evaluate the independence accompanying the proposed rules stated allocation of those fees may be included of the accountant, we believe that that the ‘‘tax fees’’ category would in the audit fee category. We recognize, disclosures should be made by issuers capture all services performed by however, that some services may be of the scope of services provided by its professional staff in the independent difficult to classify and we encourage independent public accountants. accountant’s tax division. Thus, the issuers and their accountants to contact Section 202 of the Sarbanes-Oxley Act proposed rules would have required our staff to discuss the appropriate requires pre-approval of all audit and that the fees associated with the review classifications. non-audit services, with exceptions by the tax partner of the tax accrual Consistent with our proposal, we are provided for de minimis amounts under during the audit be included within the adopting rules requiring issuers to certain circumstances, as described in ‘‘tax services category.’’ However, as provide disclosures of fees paid to the the Act and in rules discussed stated elsewhere in the proposing independent accountant segregated into previously in this release. The Sarbanes- release, the ‘‘audit services’’ category the four previously-identified Oxley Act further requires disclosure in should include services performed to categories. Additionally, other than for periodic reports of non-audit services fulfill the accountant’s responsibility the audit category, the issuer is required approved by the audit committee. under GAAS. Likewise, complex to describe, in qualitative terms, the Current proxy disclosure rules require accounting issues may require that the types of services provided under the that a registrant disclose, in the most firm engage in consultation with remaining three categories. Also, recent fiscal year, the professional fees national office or other technical consistent with our proposal, this paid for both audit and non-audit reviewers to reach an audit judgment. information is required for the two most services to its principal independent Some commenters 229 generally recent years. Finally, consistent with accountant. As a result of the agreed with the proposed categories of our proposal, this information must be requirements of Sarbanes-Oxley and services. Some,230 however, suggested provided either in the issuer’s proxy partly in response to public comment on modifications or clarifications to the statement, or its periodic annual filing. the current proxy disclosures categories or reductions in the number While the rules we are adopting requirements since their adoption in of categories. Additionally, some continue to require issuers to disclose 2000, we proposed rules to change both commenters suggested that the fees paid to the principal accountant for the types of fees that must be described disclosures should be provided for three audit services, we are expanding the and the number of years for which the 231 years and others suggested that they types of fees that should be included in disclosures must be provided.225 The 232 be provided for only one year. this category to include fees for services proposed rules would have increased Our final rules retain the basic that normally would be provided by the the disclosed categories of professional provisions of our proposals. In response accountant in connection with statutory fees paid for audit and non-audit to the requests by commenters for and regulatory filings or engagements. services from three to four. The clarification of the categorization of In addition to including fees for services categories of reportable fees proposed services, we expect that all services necessary to perform an audit or review were: (1) Audit Fees, (2) Audit-Related performed to comply with GAAS should in accordance with GAAS,233 this Fees, (3) Tax Fees, and (4) All Other be classified as ‘‘audit services’’ in category also may include services that Fees.226 The proposed disclosure called providing the disclosures. Certain generally only the independent for information to be provided for each accountant reasonably can provide, of the two most recent fiscal years, 2003; letter from The Business Roundtable, dated such as comfort letters, statutory audits, rather than just the most recent fiscal January 13, 2003; letter from American Community attest services, consents and assistance year. In addition, we proposed that Bankers, dated January 13, 2003; letter from American Institute of Certified Public Accountants, with and review of documents filed registrants be required to describe in dated January 9, 2003; letter from Financial with the Commission. subcategories the nature of the services Executives International’s Committee on Corporate provided that are categorized as audit- Reporting, dated January 14, 2003. We believe that the addition of a new related fees and all other fees. 228 See, e.g., letter from Eli Lilly and Company, category, ‘‘Audit-Related Fees,’’ will Our proposed changes to the proxy dated January 9, 2003; letter from KPMG, dated enable registrants to present the audit January 9, 2003; letter from Deloitte & Touche, LLP, fee relationship with the principal disclosure rules were intended to clarify dated January 10, 2003. the categorization of services provided 229 See, e.g., letter from Ralph S. Saul, dated accountant in a more transparent by the audit firm in order to provide December 23, 2002; letter from Ernst & Young, fashion. In general, ‘‘Audit-Related increased transparency for investors. dated January 6, 2003; letter from Commercial Fees’’ are assurance and related services Federal Corporation, dated January 13, 2003. Many commenters 227 favored the (e.g., due diligence services) that 230 See, e.g., letter from Lynn E. Turner, dated traditionally are performed by the January 13, 2003; letter from California Public 224 Similarly, the accountant only would need to Employees’ Retirement System, dated January 10, independent accountant. More disclose those non-audit services provided to the 2003; letter from Eli Lily and Company, dated specifically, these services would investment company complex that they were January 9, 2003; letter from American Bar include, among others: employee benefit engaged to perform during the intervening period Association, Sector of Business Law, dated January plan audits, due diligence related to since their last communication, but for which pre- 14, 2003. approval by the investment company’s audit 231 See, e.g., letter from California Public mergers and acquisitions, accounting committee was not required. Employees’ Retirement System, dated January 10, consultations and audits in connection 225 See, proposed Item 9(e), Schedule 14A. 2003; letter from California Board of Accountancy, with acquisitions, internal control 226 Previously, registrants were required to dated January 13, 2003; letter from Lynn E. Turner, reviews, attest services that are not disclose only ‘‘Audit Fees,’’ ‘‘Financial Systems dated January 13, 2003. required by statue or regulation and Design and Implementation Fees’’ and ‘‘All Other 232 See, e.g., letter from American Institute of Fees.’’ Certified Public Accountants, dated January 9, 227 See, e.g., letter from California Public 2003; letter from Wells Fargo & Company, dated 233 See also, Section 2(a)(2) the Sarbanes-Oxley Employees’ Retirement System, dated January 10, January 13, 2003. Act which defines the term ‘‘audit.’’

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consultation concerning financial descriptions of the policies and the investment company and its accounting and reporting standards. procedures. Alternatively, registrants investment adviser and any entity We also believe it is appropriate to could include a copy of those policies controlling, controlled by or under add transparency regarding a second and procedures with the information common control with the adviser, that category of fees: ‘‘Tax Fees.’’ The review delivered to investors and filed with the provides services to the investment of a registrant’s tax returns and reserves Commission. Either method should company. The proposed rule also is a task that often requires extensive allow shareholders to obtain a complete required the disclosure of the knowledge about the audit client. In and accurate understanding of the audit percentage, for each category presented, many public companies, the fee for tax committee’s policies and procedures. of fees which were subject to: (1) Direct services is substantial in relation to We expect the policies and procedures pre-approval; (2) pre-approval pursuant other services. We believe that investors would address auditor independence to policies and procedures; and (3) pre- will benefit from being able to consider oversight functions in a prudent and approval pursuant to the de minimis those fees separately from the ‘‘All responsible manner. Additionally, these exception. Lastly, the proposed rule Other Fees’’ category. The ‘‘Tax Fees’’ procedures would describe, if would require these disclosures in the category would capture all services applicable, the specific processes in annual report on proposed Form N–CSR performed by professional staff in the place that monitor activities where the and proxy and information statements. independent accountant’s tax division de minimis exception is invoked. Commenters 236 generally raised except those services related to the audit Consistent with our proposal, we are several significant issues related to the as discussed previously. Typically, it requiring that the disclosures be disclosure that would be required for would include fees for tax compliance, included in a company’s annual report. investment companies. Many tax planning, and tax advice. Tax However, because we believe that this commenters 237 believed the fee compliance generally involves information is relevant to a decision to disclosures should only be required to preparation of original and amended tax vote for a particular director or to elect, be made for the services provided by the returns, claims for refund and tax approve or ratify the choice of an accountant to the investment company payment-planning services. Tax independent public accountant, we are registrant. One commenter 238 suggested planning and tax advice encompass a requiring that this disclosure be the fees presented should be disclosed diverse range of services, including included in a company’s proxy separately for those services provided to assistance with tax audits and statement on Schedule 14A or the investment company directly and 234 appeals, tax advice related to mergers information statement on Schedule 14C. those provided to the other entities in and acquisitions, employee benefit Since the information is included in the investment company complex. Some 239 plans and requests for rulings or Part III of annual reports on Forms 10– commenters believed that only those technical advice from taxing authorities. K and 10–KSB, domestic companies are fees required to be pre-approved by the The category of ‘‘All Other Fees’’ able to incorporate the required investment company’s audit committee would remain unchanged from the disclosures from the proxy or should be disclosed. Lastly, one 240 existing rule, except that to the extent information statement into the annual commenter expressed concern that that financial information systems report. providing percentage disclosure by type implementation and design exist they Our intent is that this information be of pre-approval method (i.e., direct, would be disclosed as a component of made available to investors of all pursuant to policy and procedures, or ‘‘All Other Fees.’’ registrants. However, not all registrants the de minimis exception) would imply Consistent with our proposal, we also are required to file proxy statements. that some of these methodologies were are requiring that the information be Thus, consistent with the provisions in improper. provided for two periods so that the Act, registrants that do not issue After considering the comments, we investors will have comparative proxy statements are required to include do not believe that the fee disclosures information about the fees paid to the appropriate disclosures in their annual should be limited to only those fees independent accountant by the issuer. filing included in Form 10–K, Form 10– paid directly by the investment As noted in our previous discussion company registrant. We believe the fees about audit committee pre-approval KSB, 20–F, Form 40–F and Form N– CSR 235 as appropriate. For the reasons paid by other entities in the investment requirements, we have clarified the company complex can have a bearing on guidance on audit committee pre- noted previously in this release, we are exempting asset-backed issuers and unit the investment company accountant’s approval of services provided by the independence. However, we are independent accountant. Accordingly, investment trusts from these disclosure requirements. concerned that the disclosures provide the issuer must provide disclosure of meaningful information to investors. the audit committee’s pre-approval With respect to investment companies, we proposed to require Consequently, we have determined to policies and procedures. Additionally, modify the proposed requirements. to the extent that the audit committee investment companies to make disclosure that is similar to the Our final rule requires the investment has applied the de minimis exception company to disclose separately those discussed previously, the issuer must disclosure proposed for operating companies filing with the Commission. disclose the percentage of the total fees 236 See, e.g., letter from Investment Company paid to the independent accountant The proposed rule required an Institute, dated January 13, 2003; letter from where the de minimis exception was investment company to disclose the PricewaterhouseCoopers, dated January 8, 2003. used. This information should be audit fees paid by the investment 237 See, e.g., letter from KPMG, dated January 9, provided by category. company to its accountant and the 2003; letter from PricewaterhouseCoopers, dated aggregate fees paid for audit related, tax January 8, 2003; letter from Ernst & Young, dated We expect registrants to provide clear, January 6, 2003. concise and understandable services, and other services to the 238 See, letter from Ernst & Young, dated January investment company’s accountant by 6, 2003. 234 As discussed previously in this release an 239 See, letter from PricewaterhouseCoopers, accountant’s independence is deemed to be 235 We recently adopted Form N–CSR to be used dated January 8, 2003; letter from Deloitte & impaired when representing the audit client before by registered management investment companies to Touche, dated January 10, 2003. a tax court, district court and U.S. federal court of file certified shareholder reports with the 240 See, letter from Investment Company Institute, claims. Commission under the Sarbanes-Oxley Act of 2002. dated January 13, 2003.

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audit and non-audit fees from services year basis. In addition, it precluded employment opportunities of their provided directly to the investment these partners from returning to an audit personnel. company and those non-audit fees from of the same registrant for five years. The We agree that extending the services provided to all other entities in proposal also applied the same rotation requirement to the audit client might be the investment company complex where requirement to all partners on the audit difficult to monitor particularly in the services were subject to pre- engagement team. Commentators noted situations where a member of the audit approval by the investment company’s that the proposed requirements could engagement team begins employment audit committee. Like an operating have a particularly adverse impact in with an affiliate of the issuer. Further, company, the investment company foreign countries, especially in emerging we recognize that in certain foreign would be required to disclose the countries, where there may be a more jurisdiction it may be extremely difficult percentage of fees for each category of limited pool of accountants and experts to comply with these requirements. In fees that were pre-approved pursuant to conversant in U.S. GAAP and U.S. response to the concerns raised, the the de minimis exception. The final GAAS. Other commentators indicated cooling-off period will apply to the lead, rules require disclosure of the total non- that the proposed rotation requirements concurring partner or any other member audit fees paid to the accountant, would cause firms to rotate hundreds of of the audit engagement team, unless regardless of whether those fees were partners in scores of countries. The exempted, who provides more than ten pre-approved by the investment resulting widespread rotation would hours of audit, review or attest services. company’s audit committee, by the affect audit quality adversely, and The restriction on employment will investment company, its adviser, and would be hard, if not impossible, to apply only with regard to key positions any entity controlling, controlled by, or achieve practically. at the issuer. Members of the audit under common control with the We are extending the partner rotation engagement team, including those investment adviser that provides requirements beyond the lead and employed by a foreign accounting firm, ongoing services to the fund. The final concurring partners. However, taking will be able to take positions with the rule also will require the investment into account these and other comments, subsidiaries or affiliates of an issuer. company to disclose if the audit the rotation will not be applied as They also may take key positions at the committee has considered whether the broadly as proposed. We believe that issuer in certain circumstances and provision of non-audit services partner rotation should be a function of upon the approval of the audit provided to the investment company’s the level of responsibility for decisions committee (or a similar body). adviser and its related parties that were on accounting and financial reporting The Commission also has given not subject to the investment company issues, and the level of interaction with consideration to comments regarding audit committee’s pre-approval is senior management of an issuer. foreign requirements with respect to the compatible with maintaining the Accordingly, under the final rule, the provision of appraisal and valuation principal accountant’s independence. rotation requirement will apply to services. The Commission believes that These disclosure provisions are partners that serve the client at the the extension of these services to audit effective for periodic annual filings for issuer or parent level. It also will apply clients raises concerns with respect to the first fiscal year ending after to the lead partner serving an issuer’s the auditor’s independence. The December 15, 2003. We encourage subsidiary whose revenues constitute Commission is, therefore, eliminating issuers who have not previously issued 20% or more of the consolidated assets some exemptions previously provided their periodic annual filings to adopt or revenues of the parent. Partners in this area. However, we understand these disclosure provisions earlier. serving subsidiaries whose assets and that laws and regulations in certain revenues fall below the threshold are foreign countries require auditors to I. International Impact not subject to rotation. The same is true provide contribution-in-kind reports or The Commission realizes that these for partners, other than lead partners, valuation services. The Commission has rules will have an international impact. serving subsidiaries above the historically addressed conflicts between It will affect foreign accounting firms threshold. U.S. and foreign requirements regarding that conduct audits of both foreign The international community also non-audit services on an ad hoc basis. private issuers and foreign subsidiaries requested that the Commission modify Commission staff has previously and affiliates of U.S. issuers. Through its its approach to conflicts of interest afforded relief from proscriptions participation in the International resulting from employment against appraisal and valuation services Organization of Securities Commissions relationships. The Act requires a where, among other things, the auditor and bilateral meetings, and through a ‘‘cooling off ’’ period of one year before and issuer were able to demonstrate that roundtable held in Washington in a member of the audit engagement team the auditor was not providing an December, the Commission has made a can work for a registrant in certain key opinion on the fairness of a given concerted effort to obtain the views of positions. Under the proposed rule, the transaction. The Commission will the international community of restriction applied with regard to continue to take this ad hoc approach, regulators, market participants and employment by the issuer and its and will continue to consider requests practitioners. Through this process and affiliates. Some commentators stated for exemptive relief from foreign public consultation, the Commission that the rule should only apply to auditors. has received valuable insight into partners on the audit engagement team. Finally, several foreign commentators various foreign regulatory regimes Commentators also indicated that noted that a prohibition on legal relating to auditor independence, and extending the requirement to apply with services could amount to a prohibition detailed and specific comments on the regard to key positions at the issuer and on the provision of tax services by proposed rule. its affiliates was overbroad, difficult to foreign accounting firms from particular The partner rotation requirements set monitor, and possibly impossible to jurisdictions. It would appear that in forth in the proposed rule were of control. Moreover, we have become certain jurisdictions tax services are particular concern to the international aware that in certain jurisdictions the defined as legal services and can only be community. The proposal, as mandated labor law or jurisprudence would rendered by persons licensed to practice by the Act, called for the rotation of the prohibit foreign accounting firms from law. The Commission is making clear lead and concurring partners on a five- imposing restrictions on the future that foreign accounting firms can

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provide tax services, as appropriate, person is not required to respond to, a statements is filed with the despite their local definition and local collection of information unless it Commission.243 licensing requirements. displays a currently valid OMB control 2. Disclosures of Audit and Non-Audit The Commission is mindful of the fact number. Compliance with the Services that this rule may overlap with foreign requirements will be mandatory. There requirements designed to achieve will be no mandatory retention period Item 9 of Schedule 14A requires the auditor independence. The Commission for the information disclosed, and disclosure of certain information has taken foreign requirements into responses to the requirements will not regarding the registrant’s relationship account, and afforded accommodations be kept confidential. with the independent auditor of the to foreign accounting firms in a manner Regulation S–X is the central company’s financial statements when and to the extent consistent with the repository for rules related to the form there is a solicitation relating to: (1) A spirit and intent of the Act. As the rule and content of financial statements with meeting at which directors to the is implemented, the Commission, as the Commission. Regulation S–X, company’s board of directors are to be well as the PCAOB, will monitor its however, does not direct registrants to elected (or the solicitation of consents or international impact and continue to file financial statements or to collect authorizations in lieu of such a meeting) dialogue with its foreign counterparts. financial data. Regulation S–X indicates or (2) the election of the auditor, or the what should be in the financial approval or ratification of the III. Paperwork Reduction Act statements and how financial statements company’s selection of the auditor. We Certain provisions of our final should be presented when they are are amending paragraph (e) of Item 9 to amendments contain ‘‘collection of required to be filed by other rules and provide more detailed information information’’ requirements within the forms under the securities laws. Burden regarding the categories of fees paid by meaning of the Paperwork Reduction hours and costs associated with the the registrant to the auditor and to Act of 1995 (‘‘PRA’’).241 We published preparation of financial statements in inform investors about the critical role a notice requesting comment on the accordance with Regulation S–X are that audit committees play in assuring collection of information requirements allocated to the rules or forms that the auditor’s independence. We believe in the proposing release for the rule require the financial statements to be that the disclosure will allow investors amendments, and we submitted these filed. Because Regulation S–X does not to better assess an auditor’s requirements to the Office of require any information to be filed with independence and certain activities of Management and Budget (‘‘OMB’’) for the Commission, we previously have an audit committee. review in accordance with the PRA.242 assigned one burden hour to Regulation Item 9(e) previously required The titles for the collection of S–X for administrative convenience to disclosure of fees billed by the auditor information are: reflect the fact that this regulation does in the last fiscal year, with the fees (1) ‘‘Proxy Statements—Regulation not impose any direct burden on broken down into three categories: audit 14A (Commission Rules 14a–1 through companies. fees, financial information systems 14a–15 and Schedule 14A)’’ (OMB design and implementation fees, and all A. Summary of Amendments Control No. 3235–0059); other fees. The final rules add (2) ‘‘Information Statements— 1. Communication With Audit disclosure of two categories (tax fees Regulation 14C (Commission Rules 14c– Committees and audit-related fees), while 1 through 14c–7 and Schedule 14C)’’ As required by Section 204 of the eliminating one category (financial (OMB Control No. 3235–0057); Sarbanes-Oxley Act, we are amending information systems design and (3) ‘‘Form 10–K’’ (OMB Control No. Regulation S–X to require each public implementation), and require disclosure 3235–0063); of one more past year of each of these (4) ‘‘Form 10–KSB’’ (OMB Control No. accounting firm registered with the Board that audits an issuer’s financial fees. Because these fees are already 3235–0420); being disclosed, repeating the prior (5) ‘‘Form 20–F’’ (OMB Control No. statements to report to the issuer’s or investment company’s audit committee: year’s disclosures for comparison 3235–0288); purposes should not increase (6) ‘‘Form 40–F’’ (OMB Control No. (1) All critical accounting policies and practices used by the issuer, (2) all significantly a registrant’s compliance 3235–0381); burden. In addition, breaking tax fees (7) ‘‘Regulation S–X’’ (OMB Control material alternative accounting treatments within GAAP that have been and audit-related fees out of the ‘‘all No. 3235–0009); and other’’ category of fees currently being (8) ‘‘Form N–CSR’’ (OMB Control No. discussed with management, including disclosed should not result in any 3235–0570). the ramifications of the use of the significant incremental burden. These regulations and forms were alternative treatments and the treatment With respect to investment adopted pursuant to the Securities Act, preferred by the accounting firm, (3) companies, the final rules also will the Exchange Act and the Investment other material written communications require disclosure of all non-audit fees Company Act and set forth the between the accounting firm and paid to the investment company’s disclosure requirements for periodic management of the issuer such as any reports, registration statements and management letter or schedule of 243 See, Release No. 33–8040, Dec. 12, 2001 (66 proxy and information statements filed ‘‘unadjusted differences,’’ and (4) in the FR 65013). In this release the Commission provided by companies to ensure that investors case of registered investment cautionary advice regarding disclosure about are informed. The hours and costs companies, all non-audit services critical accounting policies. See also, Release No. associated with preparing, filing and provided to certain entities in the 33–8098, May 10, 2002, (67 FR 35620). In this release the Commission proposed rules to require sending these forms constitute reporting investment company complex that were disclosures that would enhance investors’ and cost burdens imposed by each not pre-approved by the investment understanding of the application of companies’ collection of information. An agency company’s audit committee. The critical accounting policies. The proposed may not conduct or sponsor, and a required reports need not be in writing disclosures would focus on accounting estimates a company makes in applying its accounting policies but the report is required to be and the initial adoption by a company of an 241 44 U.S.C. 3501 et seq. presented to the audit committee before accounting policy that has a material impact on its 242 44 U.S.C. 3507(d) and 5 CFR 1320.11. the auditor’s report on the financial financial presentation.

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accountant by any entity in the burden to internal staff and 25% of the monthly, to annually, with an update, if investment company complex and burden to outside professionals necessary. whether the audit committee has accurately reflects current practice for considered those non-audit services in proxy and information statements and 2. Disclosures of Audit and Non-Audit evaluating the auditor’s independence annual reports for domestic issuers.248 Services from the investment company. Since In particular, the disclosure We have made three minor changes in these disclosures exist in some form requirements regarding principal response to commenters’ concerns currently, there should be no significant accountant’s fees should involve regarding the rules requiring disclosure incremental disclosure burden. information that already is readily Under the final rules, registrants also available to internal staff of the of audit and non-audit services. The will be required to disclose any policies registrant. We have not concluded that first change clarifies the audit fee and procedures adopted by an audit our burden hour estimates for purposes category to specifically include services committee to be followed for pre- of the Paperwork Reduction Act should that normally are provided by the approval of services to be performed by be changed, although we will continue accountant in connection with statutory the accounting firm in the event that the to monitor registrant response to our and regulatory filings. The second audit committee does not expressly pre- burden hour estimates. change relates to tax fees and specifies approve the particular engagements.244 In addition, we have made several that registrants will be required to In addition, the final rules require revisions to the proposals. However, we describe each subcategory of services registrants to disclose what percentage do not believe these changes will comprising the fees disclosed under the of fees in each of the categories noted significantly change our previous ‘‘tax fees’’ category, similar to the above (audit, audit-related, tax, and estimates of the burden on registrants requirement for the ‘‘audit-related fees’’ other) relate to engagements for which from the amendments. category. Finally, the third change the pre-approval requirement was 1. Communication With Audit relates to the requirement to disclose the waived under the de minimis percentage of audit fees, audit-related 245 Committees exception. fees, tax fees, and all other fees that Some companies that file Forms 10– We have made one change to the were approved by the audit committee. K or 10–KSB are not subject to the proxy proposed rules concerning disclosure requirements. These communication with audit committees. The proposed rule would have required companies, therefore, now will be We proposed rules that would have this disclosure for all fees derived from required to present the required required public accounting firms engagements that were: (1) Approved by disclosures in the Form 10–K or 10– performing the audit for an issuer or the issuer’s or investment company’s KSB. Foreign private issuers that file investment company to report to the audit committee before the accountant Form 20–F and Canadian companies audit committee of the issuer or was engaged by the issuer or investment that file Form 40–F generally are not investment company, prior to the filing company, (2) entered into pursuant to subject to the proxy disclosure of such audit with the Commission, all pre-approval policies and procedures requirements and, therefore, will be alternative treatments of financial established by the audit committee of required to present the required information within GAAP that have the issuer or investment company, disclosures on Form 20–F or Form 40– been discussed with management of the provided the audit committee was F. Some investment companies do not issuer or investment company. In informed of each service, and (3) for regularly file proxy or information response to commenters, the final rules which the pre-approval requirement statements. These investment only require reporting of material was waived under the de minimis companies will, therefore, now be alternative treatments of financial exception. The final rules will only required to disclose this information in information within GAAP that have require disclosure of the percentage of been discussed with management of the the investment company’s annual report audit fees, audit-related fees, tax fees, on Form N–CSR. issuer or investment company. This change should aid in focusing the and all other fees for which the pre- B. Summary of Comment Letters and reports to audit committees on approval requirement was waived under Revisions to Proposals important matters and not dilute the the de minimis exception. We requested comment on the PRA usefulness with discussion of less With respect to investment analysis contained in the proposing important matters. With respect to companies, we have made three changes release. Two commenters responded investment companies, we have added a to the rule. The first change requires the generally that they believed the burden requirement to disclose all non-audit fund to disclose all non-audit fees paid estimates seemed unrealistic.246 services provided to the investment by entities in the investment company However, neither commenter provided company complex that were not pre- complex only to the extent those non- supporting data, revised burden hour approved by the investment company’s audit services relate to the operations or estimates or other information to audit committee. However, we are financial reporting of the investment support their views. One of these changing the requirement to discuss company. The second change requires commenters believed that the 25% these matters from before each filing, investment companies to disclose the allocation to outside professionals was which could have been as frequent as aggregate non-audit fees paid to the unrealistically low.247 As we have auditor by any entity in the investment mentioned in many recent releases, we 248 See, e.g., Release No. 33–8098, May 10, 2002, believe that the allocation of 75% of the (67 FR 35620); Release No. 33–8106, Jun. 17, 2002, company complex. The third change (67 FR 42914); Release No. 33–8124, Aug. 28, 2002, requires the investment company to (67 FR 57276); Release No. 33–8128, Sept. 5, 2002, 244 disclose if the audit committee has 17 CFR 210.2–01(c)(7)(A) and (B). (67 FR 58480); Release No. 33–8138, Oct. 22, 2002, 245 17 CFR 210.2–01(c)(7)(C). (67 FR 66208); Release No. 33–8144, Nov. 4, 2002, considered whether the provision of 246 See, e.g., letter from Deloitte & Touche LLP, (67 FR 68054); Release No. 34–46778, Nov. 6, 2002, non-audit services by the accountant to dated January 10, 2003; letter from Lynn E. Turner, (67 FR 69430); Release No. 33–8154, Dec. 2, 2002, the investment company complex is dated January 13, 2003. (67 FR 76780); Release No. 33–8160, Dec. 10, 2002, compatible with maintaining the 247 See, e.g., letter from Deloitte & Touche LLP, (67 FR 77594); and Release No. 33–8173, Jan. 8, dated January 10, 2003. 2003. accountant’s independence.

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C. Revisions to Reporting and Burden believe that our estimates of the burden average, two additional burden hours Estimates articulated in the proposing release have per year on each of the 3,820 filers of not changed as a result of modifications Form 10–KSB. 985 of those filers, 1. Communication With Audit contained in the final rules. however, will provide the information Committees a. Proxy and Information Statements. under Schedule 14A and 255 of those As discussed in the proposing release, We estimate that the incremental filers will provide the information we believe that GAAS currently require disclosure changes would impose, on under Schedule 14C. The burden hours discussions between the auditors and average, two additional burden hours on for the disclosure by these filers have the audit committee of significant each of the 7,661 filers of Schedule 14A, been assigned to Schedule 14A and unusual, controversial, or emerging or an aggregate 15,322 additional Schedule 14C, respectively. The burden accounting policies, of the process used burden hours. We further estimate that imposed on the remaining 2,580 filers is by management to select certain approximately 75% of the extra burden being assigned to Form 10–KSB. This estimates, and of disagreements with hours, or approximately 11,492 hours, results in 5,160 (2 hours × 2,580 filers) management over certain accounting would be expended by internal staff and additional burden hours. We further matters.249 We further believe that audit the remaining 25%, or 3,830 hours, estimate that approximately 75% of the committees generally are aware of would be expended by outside extra burden hours, or approximately management’s letter making professionals who are retained by the 3,870 hours, will be expended by representations to the auditors, which filer. Assuming that outside professional internal staff and the remaining 25%, or the auditor uses in completing the audit costs would be an average of $300 per 1,290 hours, will be expended by of the issuer’s financial statements.250 hour, the aggregate annual professional outside professionals. Assuming that Audit committees also should be aware costs would be $1,149,000. Similarly, outside professional costs average $300 of ‘‘unadjusted differences,’’ 251 if any, we estimate that these disclosures per hour, the estimated aggregate annual as a result of the enactment of Section would impose, on average, two professional costs are $387,000. 401 of the Sarbanes-Oxley Act, which additional burden hours on each of the d. Annual Reports by Foreign Private added Section 13(i) to the Securities 464 filers of Schedule 14C, or an Issuers on Form 20–F. We estimate that Exchange Act of 1934 (‘‘Exchange aggregate 928 additional burden hours. the incremental disclosure changes will Act’’).252 Under new Section 13(i) of the Using the same allocation of hours and impose, on average, two additional Exchange Act, therefore, there should be cost estimate of professional fees as for burden hours per year on each of the no material ‘‘unadjusted differences.’’ In Schedule 14A, we estimate that 696 1,194 filers of Form 20–F, or 2,388 the case of investment companies, we hours would be expended by internal additional burden hours. We further believe auditors already are reporting staff and the remaining 232 hours would estimate that approximately 25% of the non-audit services provided to the be for outside professional assistance, extra burden hours, or approximately investment company complex annually producing an outside professional cost 597 hours, will be expended by internal and some routinely provide more of $69,600. staff and the remaining 75%, or 1,791 frequent updates at the request of the b. Annual Reports on Form 10–K. We hours, will be expended by outside audit committee.253 Because of these estimate that the incremental disclosure professional costs associated with GAAS and legal provisions, we believe changes will impose, on average, two reviewing the disclosures because this that the final rules regarding auditor additional burden hours per year on form is prepared by foreign private reports to audit committees will not each of the 8,484 filers of Form 10–K. issuers who rely more heavily on increase significantly the burden hours 6,676 of those filers, however, will outside counsel for assistance. on accounting firms or registrants. provide the information under Schedule Assuming that outside professional 14A and 209 of those filers would costs average $300 per hour, the 2. Disclosures of Audit and Non-Audit estimated aggregate annual professional Services provide the information under Schedule 14C.254 The burden hours for the costs are $537,300. e. Reports by Certain Canadian While we have made some disclosure by these filers therefore have Issuers on Form 40–F. We estimate that modifications to the proposals relating been assigned to Schedule 14A and the incremental disclosure changes will to disclosure of audit and non-audit Schedule 14C, respectively. The burden impose, on average, two additional services, we do not believe these imposed on the remaining 1,599 filers is burden hours per year on each of the changes will have a significant effect on being assigned to Form 10–K. This 134 filers of Form 40–F, or 268 the total amount of burden hours for results in 3,198 (2 hours × 1,599 filers) preparing the forms. Accordingly, we additional burden hours. Consistent additional burden hours for Form 10–K. with our treatment of foreign private We further estimate that approximately 249 issuers filing Form 20–F, we further See, SAS 61, ‘‘Communication with Audit 75% of the extra burden hours, or Committees or Others with Equivalent Authority estimate that approximately 25% of the and Responsibility,’’ AU § 380. approximately 2,399 hours, will be extra burden hours, or approximately 67 250 SAS No. 85, ‘‘Management Representations,’’ expended by internal staff and the hours, will be expended by internal staff AU § 333. remaining 25%, or 799 hours, will be and the remaining 75%, or 201 hours, 251 See, SAS No. 89, ‘‘Audit Adjustments,’’ AU expended by outside professionals. will be expended by outside § 333. Assuming that outside professional 252 professionals. Assuming that outside Each financial report that contains financial costs average $300 per hour, the statements, and that is required to be prepared in professional costs average $300 per accordance with (or reconciled to) generally estimated aggregate annual professional hour, the estimated aggregate annual accepted accounting principles under this title and costs are $239,700. professional costs are $60,300. filed with the Commission shall reflect all material c. Annual Reports on Form 10–KSB. f. Form N–CSR. We estimate that the correcting adjustments that have been identified by We estimate that the incremental a registered public accounting firm in accordance additional disclosure changes will with generally accepted accounting principles and disclosure changes will impose, on impose, on average, 1.5 additional the rules and regulations of the Commission. burden hours per year on each of the 253 254 See, Independence Standards Board, These numbers are obtained by reviewing the anticipated 3,700 filers of Form N–-CSR. ‘‘Independence Discussions with Audit number of filers that filed a Form 10–K and × Committees,’’ Independence Standard No. 1 (Jan. Schedule 14A or Schedule 14C, respectively, This results in 5,550 (1.5 hours 3,700 1999). between October 1, 2001 and September 30, 2002. filers) additional burden hours. We

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estimate that the cost of these burden certain matters to the issuer’s audit services by the accounting firm that hours is $81 per hour, resulting in committee, including ‘‘critical’’ audits the company’s financial aggregate internal costs of $449,550.255 accounting policies and practices used statements. We believe that these factors Further, we estimate that this additional by the issuer; 261 and could improve the efficiency of the disclosure will require 0.5 hours in • Require disclosures to investors of markets and result in a lower cost of professional review by outside counsel information related to audit and non- capital. audit services provided by, and fees at an average rate of $300 per hour, 1. Auditor Independence resulting in an estimated aggregate paid by the issuer to, the auditor of the annual outside professional costs of issuer’s financial statements.262 The amendments are intended to $555,000. In addition, under the final rules, an facilitate the independence of the accountant will be deemed to be not accountant from management in the IV. Cost—Benefit Analysis independent from an audit client if any following ways: We are sensitive to the costs imposed ‘‘audit partner’’ receives compensation • Providing clearer definition of the by and benefits derived from our rules, based directly on selling engagements to types of non-audit services that would and we have identified certain costs and that client other than audit, review, or be deemed to impair an auditor’s benefits of these rules. Additionally, attest services. We have narrowed the independence; • certain of these costs are imposed by final rule by exempting accounting Requiring that each engagement of Congressional mandate through the firms with fewer than ten partners and the accountant to perform audit or non- enactment of the Sarbanes-Oxley Act. fewer than five audit clients from this audit services for the company be pre- provision.263 While many of the final approved by the audit committee, which A. Background rules respond directly to the provisions serves as the representative of investors; The Sarbanes-Oxley Act was enacted of Title II of the Sarbanes-Oxley Act, • Requiring the ‘‘rotation’’ of ‘‘audit on July 30, 2002. Title II to that Act adds certain of the rules go beyond the partners’’ on the audit engagement team Sections 10A(g) through 10A(l) to the specific provisions of the Act. These to assure a periodic fresh look at the Securities Exchange Act of 1934 provisions include: accounting and auditing issues related (‘‘Exchange Act’’) and requires that the • Applying the partner rotation rules to the issuer’s financial statements; • Commission, within 180 days of to additional ‘‘audit partners‘‘; Providing that the accountant’s enactment, adopt rules to carry out each • Applying the one-year cooling off independence would be deemed to be of those sections.256 period to persons in a financial impaired if an ‘‘audit partner’’ is The final rules: reporting oversight role with the issuer; compensated directly for selling non- • Revise the Commission’s and audit services or products to an audit regulations related to the non-audit • Prohibiting an accounting firm from client. This provision should mitigate services that, if provided to an audit compensating an audit partner for the concerns that an accountant might client, would result in the accounting directly selling non-audit services to an be viewed as compromising accounting firm being deemed to lack audit client. judgments in order not to jeopardize the potential for increased income from the independence with respect to the audit B. Potential Benefits of the Final Rules client; 257 act of selling non-audit services to the • Require that an issuer’s audit Potential benefits resulting from the audit client; and committee pre-approve all audit and final amendments include increased • Requiring a ‘‘cooling off’’ period non-audit services provided to the investor confidence in the between working on the audit issuer by the independent independence of accountants, in the engagement team and joining the client accountant; 258 audit process, and in the reliability of in a ‘‘financial reporting oversight role’’ • Prohibit certain partners on the reported financial information. As in order to assure that personal audit engagement team from providing discussed below, clearer auditor relationships and the new member of audit services to the issuer for more independence regulations should management’s knowledge of the audit than five or seven consecutive years, provide investors with comfort that plan do not negatively impact the audit depending on the partner’s involvement auditors are placing the interests of process. in the audit (smaller accounting firms investors over financial or personal Strengthening auditor independence may be exempted from this incentives. The final rules mandating should provide investors with more requirement); 259 that accountants communicate certain confidence that the accountants are • Prohibit an accounting firm from matters to audit committees should playing their ‘‘gatekeeper’’ role related auditing an issuer’s financial statements benefit investors by enhancing the to companies’’ financial reporting and if a person in a financial reporting opportunities for meaningful audit provide further assurance that the oversight role of that issuer had been a committee oversight of the financial financial condition, results of member of the accounting firm’s audit reporting process. Investors also will operations, and cash flows of companies engagement team within the one-year benefit from the enhanced disclosure of are fairly reflected in their financial period preceding the commencement of the non-audit services provided by, and reports thereby allowing public audit procedures; 260 fees paid to, the accounting firm that companies less costly access to the • Require that the auditor of an audits the company’s financial capital markets. issuer’s financial statements report statements, and from better disclosure of The final rules specify that ‘‘audit the audit committee’s role in approving partners’’ who are compensated for 255 See, Securities Industry Association, Report the provision of audit and non-audit cross-selling non-audit services are on Management & Professional Earnings in the deemed to be not independent with Securities Industry 2002 (2002). 261 See, Section 204 of the Sarbanes-Oxley Act. respect to the audit client. This will 256 Section 208(a) of the Sarbanes-Oxley Act of 262 See, generally, Section 202 of the Sarbanes- further enhance the independence of the 2002. Oxley Act; Section 10A(i)(2) of the Exchange Act, 257 audit function since the audit partner’s See, Section 201 of the Sarbanes-Oxley Act. 15 U.S.C. 78j–1(i)(2). 258 See, Section 202 of the Sarbanes-Oxley Act. 263 See, e.g., letter from U.S. Small Business focus will be on the conduct of the audit 259 See, Section 203 of the Sarbanes-Oxley Act. Administration’s Office of Advocacy, January 13, rather than on efforts to sell other 260 See, Section 206 of the Sarbanes-Oxley Act. 2002. engagements to the audit client. The

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danger inherent in compensating audit statements.266 As part of that cautionary C. Potential Costs of the Final Rules partners for cross-selling non-audit advice, we stated: 1. Auditor Independence services is that it might create a Prior to finalizing and filing annual temptation for accountants to reports, audit committees should review the Changes in our auditor independence compromise the quality of the audit in selection, application and disclosure of rules may impose costs on accounting order to maintain their relationship with critical accounting policies. Consistent with firms and on any issuers that engage, or management to whom they wish to auditing standards, audit committees should would like to consider engaging, the cross-sell such services. be apprised of the evaluative criteria used by accountant of an issuer’s financial management in their selection of the statements to perform non-audit 2. Auditor Reports to Audit Committees accounting principles and methods. services. Proactive discussions between the audit a. Non-audit services. According to The final rules require that each committee and the company’s senior the information available to the staff in public accounting firm registered with management and auditor about critical 267 2000, approximately 12,600 registrants the Board that audits an issuer’s accounting policies are appropriate. did not purchase any consulting financial statements report specified Communications with the audit services from the auditor of their information to the issuer’s audit committee about such policies facilitate financial statements, and 4,100 committee, including: (1) All critical the audit committee’s oversight of the registrants reported purchasing such accounting policies and practices used financial reporting process. Investors services.269 Based on the scrutiny that by the issuer, (2) all material alternative should benefit by the audit committee these services have received over the accounting treatments within GAAP being better informed and, thus, in a past year, the Commission believes that that have been discussed with position to better challenge what it may the number of companies purchasing management, (3) other material written view as non-typical, aggressive, or non-audit services from their accountant communications between the improper applications of GAAP used by might have decreased further. accounting firm and management of the management to enhance or manipulate The current auditor independence issuer, such as any management letter or reports of the company’s financial rules state that the performance of schedule of ‘‘unadjusted differences,’’ results or financial condition. certain non-audit services will be and (4) in the case of registered deemed to impair an auditor’s investment companies, all non-audit 3. Enhanced Disclosures About the independence. The final rules, in some services provided to entities in the Services Provided by Auditors to cases, redefine those services and add investment company complex that were Registrants one more item, ‘‘expert services,’’ to the not pre-approved by the investment Investors will receive more detailed list of prohibited services. These company’s audit committee. information about: changes may impact the competitive • markets for these services. Audit clients The report by the Senate Committee Any policies and procedures are precluded from engaging their on Banking, Housing, and Urban Affairs adopted by an audit committee for pre- independent accountants to perform on the bill that later became the approving audit and non-audit services services in the categories of foundation for the Sarbanes-Oxley Act, provided by the independent bookkeeping services, financial systems in addressing the need for such reports accountant, • design and implementation services, from the accountant to the audit The fees paid by the registrant to appraisal and valuation services, committee, stated, in part: the accountant in each of the last two years for audit, audit-related, tax, and actuarial services, internal audit The Committee believes that it is important all other services,268 and outsourcing services, management for the audit committee to be aware of key • The percentage of fees in each of functions, human resources, broker- assumptions underlying a company’s those categories where the audit dealer, investment adviser or financial statements and of disagreements committee used the de minimis investment banking services, legal that the auditor has with management. The exception. services and expert services. These audit committee should be informed in a These disclosures will provide greater companies may incur costs from having timely manner of such disagreements, so that to use a separate vendor for such it can independently review them and transparency to investors of certain aspects of the auditor-client services resulting in the possible loss of intervene if it chooses to do so in order to any benefits of having a single provider assure the integrity of the audit.264 relationship. Providing better, more complete information in cases where for both audit and non-audit services. Companies also may incur costs in Almost eight months before passage of non-audit services occur allows locating a new vendor and developing a the Sarbanes-Oxley Act, in December investors to determine for themselves business relationship with that vendor. 2001, we issued cautionary advice whether there are concerns related to In addition, companies may incur costs regarding the disclosure in the the auditor’s independence. It also may from not being able to retain their Management’s Discussion and allow investors to ask more direct and preferred provider of non-audit services, Analysis 265 section of its annual report useful questions of management and if that preferred provider is their of those accounting policies that directors regarding their decisions to independent accountant. The difference management believes are most critical to engage the accountants for such in value between a preferred provider the preparation of the issuer’s financial services. and a second choice may be substantial, particularly if the preferred provider has 264 Report of the Senate Committee on Banking, 266 Release No. 33–8040, Dec. 12, 2001, (66 FR Housing, and Urban Affairs, ‘‘Public Company 65013). relatively rare service offerings or Accounting Reform and Investor Protection Act of 267 Id. (footnotes omitted). service offerings that are particularly 2002,’’ Senate Report 107–205, 107th Cong., 2d 268 In the case of an investment company, the well suited to the needs of the company. Sess., at 21 (July 3, 2002). investors will receive this information for the The final rules may cause accountants 265 Item 303 of Regulation S–K (17 CFR 229.303), investment company registrant and separately, for to lose one or more sources of revenue which requires disclosure about, among other all other entities in the investment company things, trends, events or uncertainties known to complex where the services were subject to pre- because they will no longer be able to management that would have a material impact on approval by the investment company’s audit reported financial information. committee. 269 Id.; 65 FR at 43185.

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sell certain non-audit services to their independent accountants for non-audit and professional standards that require audit clients. Additionally, accounting services. The increased burden on audit communications between the firms may incur additional costs to committee members might result in the accountant and the audit committee on market these services with non-audit need to increase their compensation, auditor independence and other clients as well as additional learning resulting in additional costs to issuers or issues,278 many companies currently costs to familiarize themselves with the investment companies. Some of these have audit committees that carefully operations of those non-audit clients. costs may be mitigated by the provisions evaluate the engagement of accountants Finally, to the extent that there exist in the Act and the final rules that allow to perform non-audit services. economies of scope in the provision of the audit committee to delegate to one Accordingly, we believe that the audit and non-audit services (as, for or more audit committee members the incremental costs associated with these example, through the use of shared authority to grant pre-approvals of these rules will not be substantial. knowledge management systems and services.272 c. Rotation of Partners on the Audit other infrastructure) and to the extent Inadvertent violations of the Act and Engagement. Under the final rules, no that the preclusion of certain non-audit the final rules that would add to the ‘‘audit partner’’ will serve on an audit services to audit clients results in the costs of the rules also may be mitigated engagement team for more than seven exit of personnel who provide such by the de minimis exception to the pre- consecutive years, and the ‘‘lead’’ and services from accounting firms, there approval requirement.273 This exception ‘‘concurring’’ partners will be may be an increase in the cost of both applies if: (1) The aggregate amount of prohibited from serving for more than audit and non-audit services. the non-audit services is not more than five consecutive years. Current We believe, however, that in view of five percent of the total amount of professional requirements state that the the statements by the largest four revenues paid by the issuer to the ‘‘lead’’ partner should be replaced at accounting firms, and others, that they accountant during the fiscal year in least once every seven years.279 The no longer intend to provide internal which the non-audit services were proposed rules would have required any audit outsourcing services and financial provided,274 (2) at the time of the partner on the audit engagement team of system design and implementation engagement the issuer did not recognize an issuer and its significant subsidiaries services to audit clients,270 the cost the services to be non-audit services, to rotate after five years. Many associated with the adoption of the final and (3) the services are approved by the commenters believed that the reach of rules may be limited. Also, to the extent audit committee prior to the completion the proposal was too deep, particularly that the provision of non-audit services of the audit.275 for individuals that have limited is merely redistributed among the firms, We also believe that as a result of the participation in the audit. The final there would be no net loss of revenue Commission’s audit committee rules require fewer partners to rotate to public accounting firms as a whole. disclosure requirements adopted in than under the proposal. Under the final b. Audit Committee Pre-approval of 1999,276 prior disclosures related to the rules, the lead partner, who has primary Services. Under the final rules, all involvement of the audit committee in responsibility for the audit, along with auditing and non-audit services to be recommending or approving changes in the concurring partner, must rotate after provided by the independent independent accountants and the five years. Other audit partners at the accountant must be pre-approved by the resolution of disagreements between issuer,280 or a subsidiary of the issuer issuer or investment company’s audit management and the accountants,277 whose assets or revenues constitute committee.271 There may be incremental 20% or more of the consolidated assets costs associated with audit committees 272 Section 202 of the Sarbanes-Oxley Act; or revenues of the issuer must rotate Section 10A(i)(3) of the Exchange Act, 15 U.S.C. performing this function. Such costs after seven years. Accounting firms with might include more frequent committee 78j–1(i)(3). 273 Section 202 of the Sarbanes-Oxley Act; fewer than five audit clients and fewer meetings, an increased workload on Section 10A(i)(1)(B) of the Exchange Act, 15 U.S.C. than ten partners may be exempted from audit committee members, and having 78j–1(i)(1)(B). the partner rotation requirements if the 274 the audit committee’s legal counsel In the case of an investment company, the five Board conducts a special review of each review the audit committee’s draft percent threshold is calculated based on the services provided to the investment company of the firm’s audit engagements for audit policies and procedures for engaging the complex that were subject to the pre-approval clients at least once every three years. In requirements for the investment company’s audit total, the final rule expands the rotation 270 Report of the Senate Committee on Banking, committee. Housing, and Urban Affairs, ‘‘Public Company 275 Id. requirements to cover a greater number Accounting Reform and Investor Protection Act of 276 Item 306 of Regulation S–K (17 CFR 229.306), of partners than under the current 2002,’’ Senate Report 107–205, 107th Cong., 2d and Item 306 of Regulation S–B (17 CFR 228.306); professional requirements. Sess., at 18 (July 3, 2002). See also letter from see generally, Release No. 34–42266, Dec. 22, 1999, A number of commenters expressed HarborView Partners LLC, dated December 4, 2002. (64 FR 73389). These disclosure requirements are concern that under the proposed rules 271 Section 301 of the Sarbanes-Oxley Act of 2002 discussed supra, in Section II.C. of this release. requires the Commission to direct the national 277 Item 4 of Form 8–K, 17 CFR 249.308 and Item many small accounting firms would be securities exchanges and national securities 304 of Regulation S–K, 17 CFR 229.304, which unable to meet the partner rotation associations to prohibit the listing of any security require disclosure of ‘‘whether the decision to requirements and may be driven out of of an issuer that does not meet certain criteria, change accountants was recommended or approved

including having an audit committee that performs by: (A) Any audit or similar committee of the board 278 certain functions. See Section 10A(m) of the of directors, if the issuer has such a committee; or See, e.g., SAS No. 61, as amended by SAS No. Exchange Act, 15 U.S.C. 78j–1(m), and Release No. (B) the board of directors, if the issuer has no such 89 and No. 90, ‘‘Communications With Audit 33–8173 (Jan. 8, 2003). The Sarbanes-Oxley Act committee’’ and ‘‘whether any audit or similar Committees,’’ AU §380; Independence Standards defines ‘‘audit committee’’ to be ‘‘(A) a committee committee of the board of directors, or the board of Board, ‘‘Independence Discussions with Audit (or equivalent body) established by and amongst the directors, discussed the subject matter of each of Committees,’’ Independence Standard No. 1 (Jan. board of directors of an issuer for the purpose of such disagreements with the former accountant 1999). overseeing the accounting and financial reporting ***.’’ Item 304(a)(1)(iii)(A), (iii)(B), and (iv)(B). 279 See, AICPA, SEC Practice Section, processes of the issuer and audits of the financial 17 CFR 229.304(a)(1)(iii)(A), (iii)(B) and (iv)(B). For Requirements of Members, at item e. The statements of the issuer; and (B) if no such small business issuers, Item 304(a)(1)(iii) of membership requirements are available online at committee exists with respect to an issuer, the Regulation S–B, 17 CFR 228.304(a)(1)(iii) requires http://www.aicpa.org/members/div/secps/ entire board of directors of the issuer.’’ Section disclosure of ‘‘whether the decision to change require.htm. 205(a) of the Sarbanes-Oxley Act, which, among accountants was recommended or approved by the 280 In the case of investment companies, other other things, adds Section 3(a)(58) to the Exchange board of directors or an audit or similar committee audit partners would include all audit partners Act. of the board of directors.’’ working on an investment company registrant.

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business, potentially burdening the d. One-Year Cooling Off Period. The engagements to provide any services to ability of smaller companies to retain final rules indicate that an accounting that client other than audit, review or auditors and access the public markets. firm is deemed to be not independent attest services. The final rules differ We have attempted to mitigate this with respect to an audit client if a from the proposed rules in three notable effect by providing an exemption for former member of the audit engagement respects. First, the proposed rules also smaller accounting firms in the final team is employed by the issuer in a would have provided that any rules.281 ‘‘financial reporting oversight role’’ accountant is not independent with Without the exemption, clients of unless the individual had not been a respect to an audit client if an audit many of the smaller accounting firms member of the audit engagement team partner earns or receives compensation would have to change auditors every during the one year period preceding based on the selling or performance of five years because their incumbent the initiation of the audit.283 engagements with an audit client to auditor would not be able to meet the Currently, when a former professional provide any products or services other partner rotation requirements. This employee of an accounting firm joins an than audit, review or attest services. The would have imposed marketing and audit client within one year of leaving final rule applies only to compensation client-specific learning costs on the the firm, and the individual has based on the direct selling of accounting firms and costs on clients to significant interaction with the engagements in the independence familiarize the new accountant with accounting firm’s audit engagement determination. Second, several their operations. team, professional standards require the commenters noted that, as proposed, the Costs associated with the periodic accounting firm to perform procedures rules would have precluded a replacement of partners might include to assure that the individual’s ‘‘specialty’’ partner from receiving more frequent company-specific knowledge of, or relationships with, the compensation when he or she sold training, conducted by both the accounting firm do not adversely services in his or her specialty area. The accounting firm and the audit client, as influence the quality of the audit.284 final rules address this concern because new partners join the audit engagement These procedures include modifying the they apply to ‘‘audit partners’’ rather team. For example, the new partners audit plan to adjust for the risk that the than all partners who are members of will need to learn the company’s individual would be able to circumvent the audit engagement team. Third, accounting and financial reporting key aspects of the audit, and assuring several commenters indicated the procedures, controls and familiarize that the people on the audit engagement compensation rules might be themselves with key personnel. The team have the stature and objectivity not particularly difficult for smaller final rules also might result in to be influenced by their former partner accounting firms. To address this incremental costs related to some or co-employee and to have the concern, the final rules include an partners being required to travel appropriate level of skepticism when exemption for accounting firms with extensively, relocate from one part of evaluating the individual’s fewer than five audit clients and fewer the country to another, or from one representations and views. than ten partners. Despite these revisions, the provision country to another.282 Costs might occur, however, from the company being required to delay the might affect the compensation plans of The costs related to these rules will those firms that currently reward audit vary based on the proximity of an hiring, or not being able to hire, the individual that it believes is the most partners of the firm for selling non-audit accounting firm’s audit clients, the services to their audit clients. The final qualified person to perform a ‘‘financial concentration of the firm’s practice rules may result in those revenues being reporting oversight role’’ at the within an industry, and the availability allocated to other persons within the company. This may add to recruitment of partners to whom the work may be accounting firm. Absent this incentive, costs or result in less efficient redistributed, and similar factors. We auditors may be less inclined to inform operations. Such costs are difficult to note that these costs may be passed on issuers of ways to improve their estimate and vary from one company to to issuers in the form of higher audit performance or condition through non- another. However, in response to several fees. audit services. We do not expect, commenters’ concerns regarding the Had the proposed rules been adopted, however, that there would be any reach of the proposed rules, the final another potential impact would have incremental costs to the firm or to the been the impact on the specialization of rules limit the prohibitions based on the client. accounting firms within each industry. individual’s role on the audit To minimize partners’ costs of learning engagement team. These costs might be 2. Auditor Reports To Audit Committees new businesses, accounting firms have ameliorated in unusual circumstances The final rules are identical to those an incentive to specialize in certain due to the exception provided for proposed, with two exceptions. The industries. This, potentially, could have emergency and unusual circumstances. proposed rules would have required had the effect of creating oligopolies e. Compensation. The final rules accounting firms to report to audit within each industry and could have provide that an accountant is deemed to committees all alternative accounting adversely affected competition among be not independent with respect to an treatments within GAAP that have been accounting firms. audit client if any ‘‘audit partner’’ earns discussed with management, including or receives compensation in the ramifications of the use of the 281 According to data provided by the SECPS, out consideration of directly selling alternative treatments and the treatment of 767 accounting firms with audit clients, 462 preferred by the accounting firm. The firms are eligible for the exemption from partner 283 In the case of investment companies, the final rules only require accounting firms rotation. cooling off period would extend not only to 282 For example, one commenter estimated that positions at the investment company, but also to to report material alternative treatments, on certain large engagements, the proposed rotation positions at any entity in the investment company which should aid in focusing the reports requirements would result in an average annual complex that is directly responsible for the to audit committees. The final rules add incremental cost of $1,250,000; see, letter from operations or financial reporting of the investment a specific requirement related to Deloitte & Touche LLP dated January 10, 2003. company. Another commenter estimated the cost to be as 284 Independence Standards Board, ‘‘Employment investment companies that requires much as $2,000,000 per year for large registrants; with Audit Clients’’ Independence Standard No. 3 auditors to disclose to the investment see, letter from KPMG dated January 9, 2003. (July 2000). company’s audit committee all non-

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audit fees paid to the accountant by any companies to file the information on transition period for several of the entity in the investment company Form N–CSR.288 requirements of the final rules. A complex that was not subject to pre- Registrants also are required to transition period helps to alleviate the approval by the investment company’s disclose the audit committee’s policies immediate impact of any costs and audit committee. and procedures for approval of services burdens that may be imposed on certain provided by the accounting firm, and Because of existing GAAS and legal registrants and their accounting firms. A the percentage of fees in each of the four transition period may even help reduce provisions,285 we believe that the final categories noted above (audit, audit- costs as registrants and accounting firms rules regarding accountants’ reports to related, tax, and all other) where the will have additional time to adjust their audit committees will not significantly audit committee used the de minimis processes and procedures to the new increase costs for accounting firms or exception to the pre-approval requirements. registrants. Any such costs may arise requirements.289 from the timing of the Based on the staff’s experience, we V. Consideration of Burden on communications,286 which must occur believe that the additional disclosure Competition, and Promotion of before the auditor’s report is filed with contemplated by the final rules will Efficiency, Competition, and Capital the Commission. We also believe require, on average, approximately one- Formation limiting the reporting requirement to half of a page in a company’s proxy Section 23(a)(2) of the Exchange only material alternative treatments will statement or annual report. Accordingly, Act 291 requires the Commission, when reduce unnecessary costs. The required we believe the additional printing costs adopting rules under the Exchange Act, reports need not be in writing, but the from these additional disclosures will to consider the anti-competitive effects report is required to be presented to the be small. of any rule it adopts. In addition, audit committee before the auditor’s Using estimates derived from our Section 2(b) of the Securities Act of report is filed with the Commission. Paperwork Reduction Act analysis, we 1933,292 Section 3(f) of the Exchange estimate that the incremental impact of Act,293 and Section 2(c) of the 3. Enhanced Disclosures About the the disclosure changes will result in a Investment Company Act 294 require the Services Provided by Auditors to total cost of $5,862,400 for all affected Commission, when engaging in Registrants filers. The estimate is based on the rulemaking that requires it to consider burden hour estimates calculated under or determine whether an action is The existing proxy disclosure rules the Paperwork Reduction Act. For necessary or appropriate in the public require disclosure of all professional purposes of the Paperwork Reduction interest, to consider whether the action fees billed by the principal auditor in Act, we estimate that the additional will promote efficiency, competition, the last fiscal year, with the fees broken disclosure will result in 26,678 internal and capital formation. down into three categories: audit fees, burden hours and $2,999,400 in external The rules prohibit the independent financial information systems design costs. Assuming a cost of $125/hour for accounting firm from providing certain and implementation fees, and all other in-house professional staff (and $40 per non-audit services for their audit fees. The final rules divide the hour for internal staff review for Form clients. These rules, therefore, could disclosure into two more categories—tax N–CSR), the total cost for the internal result in some companies seeking new fees and audit-related fees—and add burden hours would be $2,863,000.290 accounting firms for non-audit services disclosure of one more year of these fees Hence the aggregate cost estimate is permitted under our previous rules, but while eliminating separate disclosure of $5,862,400 ($2,863,000 + $2,999,400). not allowed under the Sarbanes-Oxley fees related to financial information 4. Transition Act and the final rules. This may have systems design and implementation.287 an impact on competition for those In response to the concerns of several The final rules also require companies services, although to the extent the new commenters, we are providing a that do not file proxy statements to file vendor is another accounting firm, the this information with the Commission result may redistribute services among 288 Form 10–K is the annual report that registrants in their annual reports on Forms 10–K file with the Commission pursuant to Section 13 or firms rather than an increase or decrease and 10–KSB, foreign private issuers to 15(d) of the Exchange Act, if no other annual in services. file the information on Form 20–F, reporting form has been prescribed. Small business The proposed rules may have issuers may use abbreviated Form 10–KSB. A certain Canadian issuers to file the ‘‘small business issuer’’ is an entity that (1) has disadvantaged smaller accounting firms information on Form 40–F, and revenues of less than $25,000,000, (2) is a U.S. or because of the partner rotation registered management investment Canadian issuer, (3) is not an investment company, requirements, since smaller firms may and (4) if a majority owned subsidiary, the parent not have other partners available to corporation is also a small business issuer. An 285 See, Item 303 of Regulation S–K, 17 CFR entity is not a ‘‘small business issuer,’’ however, if continue providing audit services to the 229.303; Release No. 33–8040 (Dec. 12, 2001); and the aggregate market value of its outstanding voting client. We have modified the final rules SAS 61, ‘‘Communication with Audit Committees and non-voting common stock held by non-affiliates to mitigate this concern. Under the final or Others with Equivalent Authority and is $25,000,000 or more. See, 17 CFR 240.12b–2. rules, accounting firms with fewer than Responsibility,’’ AU § 380. Registered management investment companies 286 An investment company’s auditor will only be would use Form N–CSR to file certified shareholder five audit clients and fewer than ten required to communicate this information to the reports with the Commission under the Sarbanes- partners may be exempted from the audit committee annually, unless there have been Oxley Act of 2002. audit partner rotation and compensation changes from the previously-reported information 289 With respect to investment companies, the requirements. and the annual communication was completed final rules also will require disclosure of all non- One possible adverse impact on more than 90 days prior to the filing. This should audit fees paid to the investment company’s reduce the cost for investment companies to comply accountant by all entities in the investment capital formation may come from with this requirement. company complex, and whether the audit additional costs related to audit 287 In the case of investment companies, the committee considered those non-audit services in committees. Although the final rules do investors will receive this information for the evaluating the auditor’s independence with respect investment company registrant and separately, for to the investment company. 291 all other entities in the investment company 290 The $125/hour cost estimate is based on data 15 U.S.C. 78w(a)(2). complex where the services were subject to pre- obtained from The SIA Report on Management and 292 15 U.S.C. 77b(b). approval by the investment company’s audit Professional Earnings in the Securities Industry 293 15 U.S.C. 78c(f). committee. (Oct. 2001). 294 15 U.S.C. 80a–2(c).

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not require companies to have audit The rules, in general: company’s financial statements and committees, many companies may • Revise the Commission’s disclosure of the audit committee choose to establish such committees to regulations related to the non-audit policies for pre-approving the provision facilitate the pre-approval requirements services that, if provided to an audit of non-audit services by the accounting of the rules. Additional costs may be client, will impair an accounting firm’s firm that audits the company’s financial associated with forming such independence; statements. We believe that these factors committees and, if necessary, recruiting • Require that an issuer’s audit will improve the efficiency of the and retaining directors to serve on those committee pre-approve all audit and markets and result in a lower cost of committees. One commenter noted that non-audit services provided to the capital. the costs to maintain audit committees issuer by the auditor of an issuer’s C. Significant Issues Raised by Public may increase due to additional meetings financial statements; Comment required, increased compensation for • Prohibit certain partners on the members due to the increased time audit engagement team from providing Several commenters indicated that the demands, and increased director’s and audit services to the issuer for more partner rotation and compensation rules officer’s insurance premiums due to than five or seven consecutive years, might be particularly difficult for small increased liability of audit committee depending on the partner’s involvement accounting firms to implement. They members. While the rules may increase in the audit, except that certain small stated that if the rotation requirements the number of meetings required and accounting firms may be exempted from were applied to small accounting firms, the time demands of audit committee this requirement; many of these firms would be unable to members, we believe a properly • Prohibit an accounting firm from provide audit services to their public functioning audit committee should auditing an issuer’s financial statements clients and would be forced to give enhance the quality and accountability if certain members of management of them up. They further suggested a of the financial reporting process and that issuer had been members of the number of accommodations for small help increase investor confidence, accounting firm’s audit engagement issuers and small firms including: which results in increased efficiency team within the one-year period exempting the firms based on criteria and competitiveness of the U.S. capital preceding the commencement of audit such as number of partners, number of markets. procedures; SEC clients, firm revenue, or number of Investors’ confidence in the • Require that the auditor of an professional personnel; and exempting independence of auditors and in the issuer’s financial statements report accountants of small issuers as integrity of the financial information certain matters to the issuer’s audit measured by revenue, assets, market fuels our securities markets. These rules committee, including ‘‘critical’’ capitalization or profitability. are designed to bolster investor accounting policies used by the issuer; The U.S. Small Business confidence in the securities markets by and Administration’s Office of Advocacy strengthening auditor independence, • Require disclosures to investors of (‘‘Advocacy’’) was among the improving the transparency of the role information related to audit and non- commenters recommending that the of corporate audit committees, and audit services provided by, and fees Commission include a small firm enhancing the reliability and credibility paid to, the auditor of the issuer’s exemption from the audit partner of financial statements of public financial statements. rotation requirements. Advocacy stated companies. Accordingly, on the whole, • Provide that an accountant will not that the exemption would ensure that we believe the final rules will promote be independent from an audit client if small issuers would not incur marked capital formation and market efficiency. an audit partner received compensation increases in audit costs. It also based on selling engagements to that expressed the concern that small issuers VI. Final Regulatory Flexibility Act client for services other than audit, retaining the services of accounting Analysis review and attest services, except that firms that previously were exempt from This Final Regulatory Flexibility Act the rules exempt certain small audit rotation requirements may no Analysis has been prepared in accounting firms from this requirement. longer be able to retain such firms if the accordance with 5 U.S.C. 603. It relates firms lose the exemption and decline to B. Objectives to revisions to Regulation S–X and to offer audit services as a result. Item 9 of Schedule 14A, and to Forms Our objectives in implementing Title Advocacy asserted that if the small 10–K, 10–KSB, 20–F, 40–F and N–CSR. II of the Sarbanes-Oxley Act are to issuers then have to engage the services The rules strengthen the Commission’s increase investor confidence in the of larger firms, the costs incurred by requirements regarding the independence of auditors, in the audit these companies would increase due to independence of auditors, audit process, and in the reliability of the need of the new firms to familiarize committee pre-approval of services reported financial information. The themselves with the issuers’ industries provided by the independent rules accomplish these objectives by and business practices. Advocacy accountant and related disclosures, and having: (1) Clearer auditor further stated that an effect of the auditor communications with the audit independence regulations that will elimination of small firms from the committee. assure investors that auditors are competitive market for audit services placing the interests of investors over and market consolidation would be an A. Reasons for the Rule Amendments financial or personal incentives, (2) increase in audit prices because of larger The rules generally implement a rules mandating that auditors firms’ gain in power over pricing. congressional mandate. Some of the communicate certain matters to audit The final amendments provide an amendments, although not specifically committees which should enhance the alternative application for small required by the statute, are designed to opportunities for meaningful audit accounting firms to address implement the intent of the Sarbanes- committee oversight of the financial commenters’ concerns. Under the final Oxley Act. The rules are intended to reporting process, and (3) enhanced rules, accounting firms with fewer than provide greater assurance to investors disclosure of the non-audit services five audit clients that are issuers and that independent auditors are provided by, and fees paid to, the fewer than ten partners may qualify for performing their public responsibilities. accounting firm that audits the the exemption from partner rotation, but

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the Board must conduct a special review firms organized as corporations.300 longer will be able to sell certain non- of all of the firm’s engagements subject Advocacy concluded that, of the firms audit services to their audit clients. to the rule at least once every three captured by the IRS data, 99.18% According to the information years. This special review should focus (46,025) would likely qualify as small available to the staff in 2000, however, on the overall quality of the audit, and businesses because they had less than approximately 12,600 registrants did not in particular, the independence and $3 million in receipts, and a further 318 purchase any consulting services from competence of the key personnel on the corporate filers were reported to have an the auditor of their financial statements, audit engagement teams. Additionally, average of $5.7 million in receipts, and 4,100 registrants reported accounting firms with fewer than five indicating that the majority of these purchasing such services.303 Based on audit clients that are issuers and fewer firms also had less than $6 million in the attention that non-audit services than ten partners are exempt from the revenues. Since fewer than 1,000 have received in the past year, the compensation requirements. firms 301 provide audit services to Commission staff believes that the issuers, it is uncertain how many of number of smaller registrants D. Small Entities Subject to the Rules those firms qualify as small businesses. purchasing non-audit services from The rules affect smaller registrants their auditors, and the number of E. Reporting, Recordkeeping and Other and smaller accounting firms. Exchange smaller accounting firms providing a Compliance Requirements Act Rule 0–10(a) 295 and Securities Act significant amount of non-audit services Rule 157 296 define a company to be a 1. Auditor Independence to audit clients that are Commission ‘‘small business’’ or ‘‘small The vast majority of registrants are registrants, might have decreased. Also, organization’’ if it had total assets of $5 audited by one of the four largest to the extent non-audit services are million or less on the last day of its most accounting firms, which clearly are not merely redistributed among the firms, recent fiscal year. We estimate that small entities. Nonetheless, changes in there will be no net loss of revenue to approximately 2,500 companies, other the auditor independence regulations public accounting firms as a whole. (b) Audit Committee Pre-Approval of than investment companies, are small may impose compliance requirements, Services. Under the rules, all audit and entities. recordkeeping and reporting non-audit services to be provided by the For purposes of the Investment requirements on smaller accounting 297 auditor of an issuer’s financial Company Act, Rule 0–10 defines a firms and on any smaller registrant that statements must be pre-approved by the ‘‘small business’’ as an investment engages, or would like to consider 298 issuer’s audit committee.304 The company complex with net assets of engaging, the auditor of an issuer’s definition of audit committee in the $50 million or less as of the end of its financial statements to perform non- Sarbanes-Oxley Act, which is cited in most recent fiscal year. We estimate that audit services. approximately 225 investment (a) Non-audit services. These auditor the rules, however, indicates that if no companies meet this definition. independence rules state that the such committee exists, the entire board Our rules do not define ‘‘small of directors of the issuer may perform performance of certain non-audit 305 business’’ or ‘‘small organization’’ for services will impair an auditor’s this function. The rules, therefore, do purposes of accounting firms. The Small independence. The rules, in some cases, not require a small company to form an Business Administration defines small redefine the limits of those non-audit audit committee. There are reasons to believe that many business, for purposes of accounting services and add an additional item, smaller entities currently have audit firms, as those with under $6 million in ‘‘expert services,’’ to the previous list of committees.306 Any smaller entity that annual revenues. We have only limited prohibited services. These changes does not have such a committee and data indicating revenues for accounting could impact the competitive markets forms one to facilitate operation of the firms, and we cannot estimate the for these services. In particular, the rules, however, will incur costs to number of firms with less than $6 Commission is withdrawing the specific establish such a committee and, if million in revenues that practice before exemption in the current rules that necessary, to recruit and retain the the Commission. We requested allows audit clients with less than $200 required number of independent comment on the number of accounting million in total assets to engage the firms with revenue under $6 million. auditors of their financial statements to Advocacy provided information 303 Id.; 65 FR at 43185. perform internal audit outsourcing 304 In the case of investment companies, all non- 302 indicating that a great majority of the services. Under these rules, small audit services provided by the auditor to an entity 51,645 accounting firms in the United issuers also are precluded from engaging in the investment company complex that relate to States have less than $6 million in the independent accountants to perform the operations or financial reporting of the revenue.299 Advocacy noted that the investment company must be pre-approved by the services in the categories of financial audit committee of the investment company. U.S. Census does not classify the firms systems design and implementation 305 Section 301 of the Sarbanes-Oxley Act of 2002 according to revenue, but obtained services, appraisal and valuation requires the Commission to direct the national average per-firm revenue through services, actuarial services, and others, securities exchanges and national securities publicly available IRS tax return that could have been performed under associations to prohibit the listing of any security of an issuer that does not meet certain criteria, information. According to Advocacy, the previous rules. Smaller registrants, including having an audit committee that performs IRS data indicates that in 1998, there therefore, may have to use a separate certain functions. See, Section 10A(m) of the were 46,407 tax returns for accounting vendor for such services. Smaller Exchange Act, 15 U.S.C. 78j–1(m). The Sarbanes- accounting firms may lose one or more Oxley Act defines ‘‘audit committee’’ to be ‘‘(A) a 295 committee (or equivalent body) established by and 17 CFR 240.0–10(a). sources of revenue because they no amongst the board of directors of an issuer for the 296 17 CFR 230.157. purpose of overseeing the accounting and financial 297 17 CFR 270.0–10. 300 See, IRS, ‘‘1998 Corporation Source Book Of reporting processes of the issuer and audits of the 298 The definition of a ‘‘small business’’ also Statistics Of Income, Income Tax Returns of Active financial statements of the issuer; and (B) if no such includes a ‘‘unit investment trust’’ and a ‘‘business Corporations with Accounting periods ended July committee exists with respect to an issuer, the development company.’’ 1998 Through June 1999,’’ Minor Industry 541215 entire board of directors of the issuer.’’ Section 299 Advocacy cited recent U.S. Census Statistics. (1998). 205(a) of the Sarbanes-Oxley Act, among other See, Bureau Of The Census, U.S. Department Of 301 Data provided by the SEC Practice Section of things, adds Section 3(a)(58) to the Exchange Act. Commerce, ‘‘Statistics Of U.S. Business,’’ 1998 the AICPA. 306 See, e.g., NACD, 2001–2002 Public Company (NAICS Code #541211). 302 17 CFR 210.2–01(c)(4)(v)(A). Governance Survey (Nov. 2001).

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directors. Smaller entities also may financial statements or anyone who statements is filed with the spend time and incur costs to document prepares them.309 Such persons include Commission.310 the audit committee’s activities in the directors, chief executive officers, chief GAAS currently require discussions areas covered by the rules, including financial officers, chief accounting between the auditors and the audit drafting and maintaining the audit officers, controllers, and others. committee of significant unusual, committee’s policies and procedures A smaller registrant may incur costs controversial, or emerging accounting related to engaging the auditor to from a delay in hiring, or not being able policies, of the process used by perform non-audit services. Moreover, to hire, the individual that it believes is management to select certain estimates, small entities may incur costs in seeking the most qualified person to perform a and of disagreements with management the help of outside experts, particularly ‘‘financial reporting oversight role’’ at over certain accounting matters. outside legal counsel, in drafting the the company. This may add to Further, audit committees generally are audit committee’s policies and recruitment costs or less efficient aware of management’s letter making procedures. operations. representations to the auditors, which (c) Rotation of Partners on the Audit (e) Compensation. Under the rules, an the auditor uses in conducting the audit Engagement. Under the rules, certain accounting firm’s independence will be of the issuer’s financial statements, and partners may not serve on an audit deemed to be impaired if any audit the auditor’s letters to management on engagement team for more than five or partner receives compensation based on reportable conditions in internal seven years, depending on the partner’s directly selling to an audit client controls and other matters. Also, due to involvement in the audit. Current services other than audit, review and enactment of Section 401 of the professional requirements state that the attest services. Thus, accounting firms Sarbanes-Oxley Act, all material lead partner should be replaced after will have to discontinue compensating adjustments identified by the auditor serving in that capacity for seven these individuals for ‘‘cross-selling’’ should be reflected in the issuer’s 307 years. The rules, therefore, require services. financial statements and, therefore, more partners to be rotated and the lead Some smaller accounting firms may there should be no material ‘‘unadjusted partner to be rotated more frequently. differences.’’ In the case of investment have a relatively small number of Potential costs associated with the companies, we believe auditors already partners, available to serve each client. periodic replacement of partners are reporting non-audit services Such firms may not have personnel, include more frequent company-specific provided to the investment company other than the partner in charge of the training because new partners joining complex annually and some routinely smaller company’s audit with sufficient the audit engagement team will need to provide more frequent updates at the expertise to market and provide non- learn the company’s accounting and request of the audit committee. financial reporting procedures, controls audit services to that company. In Because of these GAAS and legal and familiarize themselves with key recognition of the special issues provisions, we believe that adoption of personnel. The rules also may result in associated with smaller firms, the final the rules regarding auditor reports to incremental costs related to some rules provide that accounting firms with audit committees will not significantly partners being required to relocate. fewer than five audit clients and fewer increase costs, including costs for In response to concerns expressed by than ten partners may be exempted from smaller accounting firms and smaller commenters, the final rules allow the compensation rule. registrants. Some costs may be incurred, accounting firms with fewer than five 2. Auditor Reports to Audit Committees however, to the extent communications audit clients and fewer than ten partners are required before the auditor’s report to be exempted from the rotation Under the rules, each public is filed with the Commission. requirement. accounting firm registered with the (d) One-Year Cooling Off Period. The Board that audits an issuer’s financial 3. Enhanced Disclosures About the rules deem an accounting firm to be not statements must report to the issuer’s Services Provided by Auditors to independent with respect to an audit audit committee (1) all critical Registrants client if a former member of the audit accounting policies and practices used Currently, disclosure is required in engagement team begins employment in by the issuer, (2) all material alternative proxy statements of the fees billed in the a ‘‘financial reporting oversight role’’ at accounting treatments within GAAP most recent fiscal year under the that issuer if the individual had been a that have been discussed with categories of audit fees, information member of the audit engagement team management, including the systems design and implementation within the one-year period preceding ramifications of the use of the fees, and all other fees.311 The rules the initiation of the audit.308 A alternative treatments and the treatment require disclosure of the fees billed in ‘‘financial reporting oversight role’’ is a preferred by the accounting firm, (3) each of the two most recent years. The role in which a person is in a position other material written communications rules also add the categories of tax fees to or does influence the contents of between the accounting firm and and audit-related fees but eliminate management of the issuer such as any separate disclosure of information 307 See, AICPA, SEC Practice Section, management letter or schedule of systems design and implementation Requirements of Members, at item e. The ‘‘unadjusted differences,’’ and (4) in the from the current list of categories of membership requirements are available online at http://www.aicpa.org/members/div/secps/ case of registered investment fees. The rules also require disclosure of require.htm. In its comment letter, Advocacy stated companies, all non-audit services its belief that there are approximately 460 audit provided to entities in the investment 310 In the case of investment companies, the firms in the United States providing audit services company complex that were not pre- auditors are required to discuss these matters with to 765 smaller reporting companies who are the audit committee annually, with an update, if currently exempt from the AICPA audit partner approved by the investment company’s necessary. rotation requirements. audit committee. The required reports 311 In the case of investment companies, the 308 In the case of investment companies, the need not be in writing, but must be investors will receive this information for the cooling off period extends not only to positions at provided to the audit committee before investment company registrant and separately, for the investment company, but also to positions at the auditor’s report on the financial all other entities in the investment company any entity in the investment company complex that complex where the services were subject to pre- is directly responsible for the operations or approval by the investment company’s audit financial reporting of the investment company. 309 See, Rule 2–01(f)(3)(ii) of Regulation S–X. committee.

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the percentage of fees in each category We, nevertheless, have determined PART 210—FORM AND CONTENT OF where the audit committee used the de that the two specific exemptions from AND REQUIREMENTS FOR FINANCIAL minimis exception to the pre-approval the final rules for smaller accounting STATEMENTS, SECURITIES ACT OF requirements. Finally, the rules extend firms that are described above are 1933, SECURITIES EXCHANGE ACT the disclosure requirements to all appropriate and consistent with the OF 1934, PUBLIC UTILITY HOLDING entities filing Forms 10–K, 10–KSB, 20– Sarbanes-Oxley Act. COMPANY ACT OF 1935, INVESTMENT F, 40–F and N–CSR.312 COMPANY ACT OF 1940, INVESTMENT The rules require all entities filing VII. Codification Update ADVISERS ACT OF 1940 AND ENERGY Forms 10–K, 10–KSB, 20–F, 40–F and The Commission is amending the POLICY AND CONSERVATION ACT OF N–CSR to include the disclosure either ‘‘Codification of Financial Reporting 1975 in the proxy or information statement Policies’’ announced in Financial or, if the company is does not issue a 1. The authority citation for Part 210 Reporting Release No. 1 (April 15, proxy or information statement, in continues to read as follows: 1982): Forms 10–K, 10–KSB, 20–F, 40–F or Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, Form N–CSR. The rules, therefore, may By amending Section 602 to add a 77z–2, 77z–3, 77aa(25), 77aa(26), 78c, 78j–1, require smaller entities to spend new discussion at the end of that 78l, 78m, 78n, 78o(d), 78q, 78u–5, 78w(a), additional time and incur additional section under the Financial Reporting 78ll, 78mm, 79e(b), 79j(a), 79n, 79t(a), 80a– costs in preparing disclosures. Smaller Release Number (FR–68) assigned to the 8, 80a–20, 80a–29, 80a–30, 80a–37(a), 80b–3, entities also may incur costs to set up adopting release and including the text 80b–11 unless otherwise noted. procedures to monitor the activities of in the adopting release that discusses 2. Section 210.2–01 is amended by: the final rules would be as presented in the audit committee in order to collect a. Revising paragraph (c)(2)(iii); and record the information to be Section II of this release. b. Revising paragraph (c)(4); disclosed under the rules. The Codification is a separate c. Adding paragraph (c)(6); F. Agency Action To Minimize Effect on publication of the Commission. It will d. Adding paragraph (c)(7); Small Entities and Significant not be published in the Code of Federal e. Adding paragraph (c)(8); Alternatives Regulations. f. Revising paragraph (e)(1); g. Removing paragraph (e)(2); The Regulatory Flexibility Act directs VIII. Statutory Bases and Text of h. Redesignating paragraph (e)(3) as us to consider significant alternatives Amendments (e)(2); that would accomplish the stated i. Revising paragraph (f)(1); We are adopting amendments to Rules objective, while minimizing any j. Revising paragraph (f)(3); 2–01 and 2–07 of Regulation S–X, Item significant adverse impact on small k. Revising paragraph (f)(7); and entities. In connection with the 9 of Schedule 14A, Forms 10–K, 10– l. Adding paragraph (f)(17). amendments, we considered the KSB, 20–F and 40–F, Form N–CSR and The revisions and additions read as following alternatives: Exchange Act Rule 10A–2 under the follows: • The establishment of differing authority set forth in Schedule A and compliance or reporting requirements or Sections 7, 8, 10, 19 and 28 of the § 210.2–01 Qualifications of accountants. timetables that take into account the Securities Act, Sections 3, 10A, 12, 13, * * * * * resources of smaller entities; 14, 17, 23 and 36 of the Exchange Act, (c) * * * • The clarification, consolidation, or Sections 5, 10, 14 and 20 of the Public (2) Employment relationships. * * * simplification of compliance and Utility Holding Company Act of 1935, (i) * * * reporting requirements under the rule Sections 8, 30, 31 and 38 of the (ii) * * * for smaller entities; Investment Company Act of 1940, (iii) Employment at audit client of • The use of performance rather than Sections 203 and 211 of the Investment former employee of accounting firm. design standards; and Advisers Act of 1940, and Sections 3(a) (A) A former partner, principal, • An exemption from coverage of the and 208 of the Sarbanes-Oxley Act. shareholder, or professional employee proposed amendments, or any part of an accounting firm is in an Text of Amendments thereof, for smaller entities. accounting role or financial reporting We believe investors in both smaller List of Subjects oversight role at an audit client, unless companies and larger companies want the individual: and benefit from the revisions to the 17 CFR Part 210 (1) Does not influence the accounting auditor independence rules, enhanced firm’s operations or financial policies; Accountants, Accounting. communications between the auditor (2) Has no capital balances in the and the audit committee, and enhanced 17 CFR Part 240 accounting firm; and disclosures required by the rule. (3) Has no financial arrangement with Broker-dealers, Issuers, Securities. the accounting firm other than one 312 Form 10–K is the annual report that registrants file with the Commission pursuant to Section 13 or 17 CFR Part 249 providing for regular payment of a fixed 15(d) of the Exchange Act, if no other annual dollar amount (which is not dependent reporting form has been prescribed. Small business Reporting and recordkeeping on the revenues, profits, or earnings of issuers may use abbreviated Form 10–KSB. A ‘‘small business issuer’’ is an entity that (1) has requirements, Securities. the accounting firm): revenues of less than $25,000,000, (2) is a U.S. or (i) Pursuant to a fully funded Canadian issuer, (3) is not an investment company, 17 CFR Part 274 retirement plan, rabbi trust, or, in and (4) if a majority owned subsidiary, the parent jurisdictions in which a rabbi trust does corporation also is a small business issuer. An Investment companies, Reporting and entity is not a ‘‘small business issuer,’’ however, if recordkeeping requirements, Securities. not exist, a similar vehicle; or the aggregate market value of its outstanding voting (ii) In the case of a former professional and non-voting common stock held by non-affiliates In accordance with the foregoing, employee who was not a partner, is $25,000,000 or more. See 17 CFR 240.12b–2. Title 17, Chapter II of the Code of principal, or shareholder of the Registered management investment companies use Form N–CSR to file certified shareholder reports Federal Regulations is amended as accounting firm and who has been with the Commission. follows: disassociated from the accounting firm

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for more than five years, that is of the registered investment company at (i) Bookkeeping or other services immaterial to the former professional an entity in the investment company related to the accounting records or employee; and complex, as defined in (f)(14) of this financial statements of the audit client. (B) A former partner, principal, section, that includes the registered Any service, unless it is reasonable to shareholder, or professional employee investment company; and conclude that the results of these of an accounting firm is in a financial (2) The former partner, principal, services will not be subject to audit reporting oversight role at an issuer (as shareholder, or professional employee procedures during an audit of the audit defined in section 10A(f) of the of an accounting firm employed by the client’s financial statements, including: Securities Exchange Act of 1934 (15 registered investment company or any (A) Maintaining or preparing the audit U.S.C. 78j–1(f)), except an issuer that is entity in the investment company client’s accounting records; an investment company registered complex was a member of the audit (B) Preparing the audit client’s under section 8 of the Investment engagement team of the registered financial statements that are filed with Company Act of 1940 (15 U.S.C. 80a–8), investment company or any other the Commission or that form the basis unless the individual: registered investment company in the of financial statements filed with the (1) Employed by the issuer was not a investment company complex during Commission; or member of the audit engagement team of the one year period preceding the date (C) Preparing or originating source the issuer during the one year period that audit procedures commenced that data underlying the audit client’s preceding the date that audit procedures included the date of initial employment financial statements. commenced for the fiscal period that of the audit engagement team member (ii) Financial information systems included the date of initial employment by the registered investment company design and implementation. Any of the audit engagement team member or any entity in the investment company service, unless it is reasonable to by the issuer; complex. conclude that the results of these (2) For purposes of paragraph (3) For purposes of paragraph services will not be subject to audit (c)(2)(iii)(B)(1) of this section, the (c)(2)(iii)(C)(2) of this section, the procedures during an audit of the audit following individuals are not following individuals are not client’s financial statements, including: considered to be members of the audit considered to be members of the audit (A) Directly or indirectly operating, or engagement team: engagement team: supervising the operation of, the audit (i) Persons, other than the lead partner (i) Persons, other than the lead partner client’s information system or managing and the concurring partner, who and concurring partner, who provided the audit client’s local area network; or provided ten or fewer hours of audit, ten or fewer hours of audit, review or (B) Designing or implementing a review, or attest services during the attest services during the period covered hardware or software system that period covered by paragraph by paragraph (c)(2)(iii)(C)(2) of this aggregates source data underlying the (c)(2)(iii)(B)(1) of this section; section; financial statements or generates (ii) Individuals employed by the (ii) Individuals employed by the information that is significant to the issuer as a result of a business registered investment company or any audit client’s financial statements or combination between an issuer that is entity in the investment company other financial information systems an audit client and the employing complex as a result of a business taken as a whole. entity, provided employment was not in combination between a registered (iii) Appraisal or valuation services, contemplation of the business investment company or any entity in the fairness opinions, or contribution-in- combination and the audit committee of investment company complex that is an kind reports. Any appraisal service, the successor issuer is aware of the prior audit client and the employing entity, valuation service, or any service employment relationship; and provided employment was not in involving a fairness opinion or (iii) Individuals that are employed by contemplation of the business contribution-in-kind report for an audit the issuer due to an emergency or other combination and the audit committee of client, unless it is reasonable to unusual situation provided that the the registered investment company is conclude that the results of these audit committee determines that the aware of the prior employment services will not be subject to audit relationship is in the interest of relationship; and procedures during an audit of the audit investors; (iii) Individuals that are employed by client’s financial statements. (3) For purposes of paragraph the registered investment company or (iv) Actuarial services. Any (c)(2)(iii)(B)(1) of this section, audit any entity in the investment company actuarially-oriented advisory service procedures are deemed to have complex due to an emergency or other involving the determination of amounts commenced for a fiscal period the day unusual situation provided that the recorded in the financial statements and following the filing of the issuer’s audit committee determines that the related accounts for the audit client periodic annual report with the relationship is in the interest of other than assisting a client in Commission covering the previous fiscal investors. understanding the methods, models, period; or (4) For purposes of paragraph assumptions, and inputs used in (C) A former partner, principal, (c)(2)(iii)(C)(2) of this section, audit computing an amount, unless it is shareholder, or professional employee procedures are deemed to have reasonable to conclude that the results of an accounting firm is in a financial commenced the day following the filing of these services will not be subject to reporting oversight role with respect to of the registered investment company’s audit procedures during an audit of the an investment company registered periodic annual report with the audit client’s financial statements. under section 8 of the Investment Commission. (v) Internal audit outsourcing Company Act of 1940 (15 U.S.C. 80a–8), * * * * * services. Any internal audit service that if: (4) Non-audit services. An accountant has been outsourced by the audit client (1) The former partner, principal, is not independent if, at any point that relates to the audit client’s internal shareholder, or professional employee during the audit and professional accounting controls, financial systems, of an accounting firm is employed in a engagement period, the accountant or financial statements, for an audit financial reporting oversight role related provides the following non-audit client unless it is reasonable to conclude to the operations and financial reporting services to an audit client: that the results of these services will not

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be subject to audit procedures during an explains the positions taken or with respect to investment companies in audit of the audit client’s financial conclusions reached during the an investment company complex, audits statements. performance of any service provided by of registered investment companies with (vi) Management functions. Acting, the accountant for the audit client. different fiscal year-ends that are temporarily or permanently, as a * * * * * performed in a continuous 12-month director, officer, or employee of an audit (6) Partner rotation. (i) Except as period count as a single consecutive client, or performing any decision- provided in paragraph (c)(6)(ii) of this year. making, supervisory, or ongoing section, an accountant is not (7) Audit committee administration of monitoring function for the audit client. independent of an audit client when: the engagement. An accountant is not (vii) Human resources. (A) Searching (A) Any audit partner as defined in independent of an issuer (as defined in for or seeking out prospective paragraph (f)(7)(ii) of this section section 10A(f) of the Securities candidates for managerial, executive, or performs: Exchange Act of 1934 (15 U.S.C. 78j– director positions; (1) The services of a lead partner, as 1(f))), other than an issuer that is an (B) Engaging in psychological testing, defined in paragraph (f)(7)(ii)(A) of this Asset-Backed Issuer as defined in or other formal testing or evaluation section, or concurring partner, as § 240.13a–14(g) and § 240.15d–14(g) of programs; defined in paragraph (f)(7)(ii)(B) of this this chapter, or an investment company (C) Undertaking reference checks of registered under section 8 of the prospective candidates for an executive section, for more than five consecutive years; or Investment Company Act of 1940 (15 or director position; U.S.C. 80a–8), other than a unit (D) Acting as a negotiator on the audit (2) One or more of the services defined in paragraphs (f)(7)(ii)(C) and investment trust as defined by section client’s behalf, such as determining 4(2) of the Investment Company Act of position, status or title, compensation, (D) of this section for more than seven consecutive years; 1940 (15 U.S.C. 80a–4(2)), unless: fringe benefits, or other conditions of (i) In accordance with Section 10A(i) (B) Any audit partner: employment; or of the Securities Exchange Act of 1934 (1) Within the five consecutive year (E) Recommending, or advising the (15 U.S.C. 78j–1(i)) either: audit client to hire, a specific candidate period following the performance of (A) Before the accountant is engaged for a specific job (except that an services for the maximum period by the issuer or its subsidiaries, or the accounting firm may, upon request by permitted under paragraph registered investment company or its the audit client, interview candidates (c)(6)(i)(A)(1) of this section, performs subsidiaries, to render audit or non- and advise the audit client on the for that audit client the services of a audit services, the engagement is candidate’s competence for financial lead partner, as defined in paragraph approved by the issuer’s or registered accounting, administrative, or control (f)(7)(ii)(A) of this section, or concurring investment company’s audit committee; positions). partner, as defined in paragraph or (viii) Broker-dealer, investment (f)(7)(ii)(B) of this section, or a (B) The engagement to render the adviser, or investment banking services. combination of those services, or service is entered into pursuant to pre- Acting as a broker-dealer (registered or (2) Within the two consecutive year approval policies and procedures unregistered), promoter, or underwriter, period following the performance of established by the audit committee of on behalf of an audit client, making services for the maximum period the issuer or registered investment investment decisions on behalf of the permitted under paragraph company, provided the policies and audit client or otherwise having (c)(6)(i)(A)(2) of this section, performs procedures are detailed as to the discretionary authority over an audit one or more of the services defined in particular service and the audit client’s investments, executing a paragraph (f)(7)(ii) of this section. committee is informed of each service transaction to buy or sell an audit (ii) Any accounting firm with less and such policies and procedures do not client’s investment, or having custody of than five audit clients that are issuers include delegation of the audit assets of the audit client, such as taking (as defined in section 10A(f) of the committees responsibilities under the temporary possession of securities Securities Exchange Act of 1934 (15 Securities Exchange Act of 1934 to purchased by the audit client. U.S.C. 78j–1(f))) and less than ten management; or (ix) Legal services. Providing any partners shall be exempt from paragraph (C) With respect to the provision of service to an audit client that, under (c)(6)(i) of this section provided the services other than audit, review or circumstances in which the service is Public Company Accounting Oversight attest services the pre-approval provided, could be provided only by Board conducts a review at least once requirement is waived if: someone licensed, admitted, or every three years of each of the audit (1) The aggregate amount of all such otherwise qualified to practice law in client engagements that would result in services provided constitutes no more the jurisdiction in which the service is a lack of auditor independence under than five percent of the total amount of provided. this paragraph. revenues paid by the audit client to its (x) Expert services unrelated to the (iii) For purposes of paragraph (c)(6)(i) accountant during the fiscal year in audit. Providing an expert opinion or of this section, an audit client that is an which the services are provided; other expert service for an audit client, investment company registered under (2) Such services were not recognized or an audit client’s legal representative, section 8 of the Investment Company by the issuer or registered investment for the purpose of advocating an audit Act of 1940 (15 U.S.C. 80a–8), does not company at the time of the engagement client’s interests in litigation or in a include an affiliate of the audit client to be non-audit services; and regulatory or administrative proceeding that is an entity in the same investment (3) Such services are promptly or investigation. In any litigation or company complex, as defined in brought to the attention of the audit regulatory or administrative proceeding paragraph (f)(14) of this section, except committee of the issuer or registered or investigation, an accountant’s for another registered investment investment company and approved independence shall not be deemed to be company in the same investment prior to the completion of the audit by impaired if the accountant provides company complex. For purposes of the audit committee or by one or more factual accounts, including in calculating consecutive years of service members of the audit committee who testimony, of work performed or under paragraph (c)(6)(i) of this section are members of the board of directors to

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whom authority to grant such approvals (i) Employment relationships that (ii) Financial reporting oversight role has been delegated by the audit commenced at the issuer prior to May means a role in which a person is in a committee. 6, 2003 as described in paragraph position to or does exercise influence (ii) A registered investment (c)(2)(iii)(B) of this section. over the contents of the financial company’s audit committee also must (ii) Compensation earned or received, statements or anyone who prepares pre-approve its accountant’s as described in paragraph (c)(8) of this them, such as when the person is a engagements for non-audit services with section during the fiscal year of the member of the board of directors or the registered investment company’s accounting firm that includes the similar management or governing body, investment adviser (not including a sub- effective date of this section. chief executive officer, president, chief adviser whose role is primarily portfolio (iii) Until May 6, 2004, the provision financial officer, chief operating officer, management and is sub-contracted or of services described in paragraph (c)(4) general counsel, chief accounting overseen by another investment adviser) of this section provided those services officer, controller, director of internal and any entity controlling, controlled are pursuant to contracts in existence on audit, director of financial reporting, by, or under common control with the May 6, 2003. treasurer, or any equivalent position. investment adviser that provides (iv) The provision of services by the * * * * * ongoing services to the registered accountant under contracts in existence (7)(i) Audit engagement team means investment company in accordance with on May 6, 2003 that have not been pre- all partners, principals, shareholders paragraph (c)(7)(i) of this section, if the approved by the audit committee as and professional employees engagement relates directly to the described in paragraph (c)(7) of this participating in an audit, review, or operations and financial reporting of the section. attestation engagement of an audit (v) Until the first day of the issuer’s registered investment company, except client, including audit partners and all fiscal year beginning after May 6, 2003 that with respect to the waiver of the persons who consult with others on the by a ‘‘lead’’ partner and other audit pre-approval requirement under audit engagement team during the audit, partner (other than the ‘‘concurring’’ paragraph (c)(7)(i)(C) of this section, the review, or attestation engagement partner) providing services in excess of aggregate amount of all services regarding technical or industry-specific those permitted under paragraph (c)(6) provided constitutes no more than five issues, transactions, or events. of this section. An accountant’s percent of the total amount of revenues (ii) Audit partner means a partner or independence will not be deemed to be persons in an equivalent position, other paid to the registered investment impaired until the first day of the company’s accountant by the registered than a partner who consults with others issuer’s fiscal year beginning after May on the audit engagement team during investment company, its investment 6, 2004 by a ‘‘concurring’’ partner adviser and any entity controlling, the audit, review, or attestation providing services in excess of those engagement regarding technical or controlled by, or under common control permitted under paragraph (c)(6) of this with the investment adviser that industry-specific issues, transactions, or section. For the purposes of calculating events, who is a member of the audit provides ongoing services to the periods of service under paragraph (c)(6) registered investment company during engagement team who has responsibility of this section: for decision-making on significant the fiscal year in which the services are (A) For the ‘‘lead’’ and ‘‘concurring’’ provided that would have to be pre- auditing, accounting, and reporting partner, the period of service includes matters that affect the financial approved by the registered investment time served as the ‘‘lead’’ or company’s audit committee pursuant to statements, or who maintains regular ‘‘concurring’’ partner prior to May 6, contact with management and the audit this section. 2003; and (8) Compensation. An accountant is committee and includes the following: (B) For audit partners other than the (A) The lead or coordinating audit not independent of an audit client if, at ‘‘lead’’ partner or ‘‘concurring’’ partner, any point during the audit and partner having primary responsibility and for audit partners in foreign firms, for the audit or review (the ‘‘lead professional engagement period, any the period of service does not include partner’’); audit partner earns or receives time served on the audit engagement (B) The partner performing a second compensation based on the audit team prior to the first day of issuer’s level of review to provide additional partner procuring engagements with fiscal year beginning on or after May 6, assurance that the financial statements that audit client to provide any products 2003. subject to the audit or review are in or services other than audit, review or * * * * * conformity with generally accepted attest services. Any accounting firm (f) * * * accounting principles and the audit or with fewer than ten partners and fewer (1) Accountant, as used in paragraphs review and any associated report are in than five audit clients that are issuers (b) through (e) of this section, means a accordance with generally accepted (as defined in section 10A(f) of the registered public accounting firm, auditing standards and rules Securities Exchange Act of 1934 (15 certified public accountant or public promulgated by the Commission or the U.S.C. 78j–1(f))) shall be exempt from accountant performing services in Public Company Accounting Oversight the requirement stated in the previous connection with an engagement for Board (the ‘‘concurring or reviewing sentence. which independence is required. partner’’); * * * * * References to the accountant include (C) Other audit engagement team (e)(1) Transition and grandfathering. any accounting firm with which the partners who provide more than ten Provided the following relationships did certified public accountant or public hours of audit, review, or attest services not impair the accountant’s accountant is affiliated. in connection with the annual or independence under pre-existing * * * * * interim consolidated financial requirements of the Commission, the (3)(i) Accounting role means a role in statements of the issuer or an Independence Standards, Board, or the which a person is in a position to or investment company registered under accounting profession in the United does exercise more than minimal section 8 of the Investment Company States, the existence of the relationship influence over the contents of the Act of 1940 (15 U.S.C. 80a–8); and on May 6, 2003 will not be deemed to accounting records or anyone who (D) Other audit engagement team impair an accountant’s independence: prepares them. partners who serve as the ‘‘lead partner’’

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in connection with any audit or review provided to any entity in an investment services rendered by the principal related to the annual or interim company complex, as defined in accountant for tax compliance, tax financial statements of a subsidiary of §210.2–01 (f)(14), that were not pre- advice, and tax planning. Registrants the issuer whose assets or revenues approved by the registered investment shall describe the nature of the services constitute 20% or more of the assets or company’s audit committee pursuant to comprising the fees disclosed under this revenues of the issuer’s respective §210.2–01 (c)(7). category. consolidated assets or revenues. (b) [Reserved] (4) Disclose, under the caption All * * * * * Other Fees, the aggregate fees billed in (17) Audit committee means a PART 240—GENERAL RULES AND each of the last two fiscal years for committee (or equivalent body) as REGULATIONS, SECURITIES products and services provided by the defined in section 3(a)(58) of the EXCHANGE ACT OF 1934 principal accountant, other than the Securities Exchange Act of 1934 (15 services reported in paragraphs (e)(1) 4. The authority citation for Part 240 through (e)(3) of this section. Registrants U.S.C. 78c(a)(58)). continues to read, in part, as follows: 3. By adding § 210.2–07 preceding shall describe the nature of the services General Instructions as to Financial Authority: 15 U.S.C. 77c, 77d, 77g, 77j, comprising the fees disclosed under this Statements to read as follows: 77s, 77z–2, 77z–3, 77eee, 77ggg, 77nnn, category. 77sss, 77ttt, 78c, 78d, 78e, 78f, 78g, 78i, 78j, (5)(i) Disclose the audit committee’s § 210.2–07 Communication with audit 78j–1, 78k, 78k–1, 78l, 78m, 78n, 78o, 78p, pre-approval policies and procedures committees. 78q, 78s, 78u–5, 78w, 78x, 78ll, 78mm, 79q, described in 17 CFR 210.2–01(c)(7)(i). (a) Each registered public accounting 79t, 80a–20, 80a–23, 80a–29, 80a–37, 80b–3, (ii) Disclose the percentage of services firm that performs for an audit client 80b–4 and 80b–11, unless otherwise noted. described in each of paragraphs (e)(2) that is an issuer (as defined in section * * * * * through (e)(4) of this section that were 10A(f) of the Securities Exchange Act of 5. Section 240.10A–2 is added to read approved by the audit committee 1934 (15 U.S.C. 78j–1(f))), other than an as follows: pursuant to 17 CFR 210.2–01(c)(7)(i)(C). issuer that is an Asset-Backed Issuer as (6) If greater than 50 percent, disclose § 240.10A–2 Auditor independence. defined in § 240.13a–14(g) and the percentage of hours expended on the § 240.15d–14(g) of this chapter, or an It shall be unlawful for an auditor not principal accountant’s engagement to investment company registered under to be independent under § 210.2– audit the registrant’s financial section 8 of the Investment Company 01(c)(2)(iii)(B), (c)(4), (c)(6), (c)(7), and statements for the most recent fiscal Act of 1940 (15 U.S.C. 80a–8), other § 210.2–07. year that were attributed to work than a unit investment trust as defined 6. Section 240.14a–101 is amended by performed by persons other than the by section 4(2) of the Investment revising paragraph (e) of Item 9 to read principal accountant’s full-time, Company Act of 1940 (15 U.S.C. 80a– as follows: permanent employees. (7) If the registrant is an investment 4(2)), any audit required under the § 240.14a–101 Schedule 14A. Information securities laws shall report, prior to the required in proxy statement. company, disclose the aggregate non- audit fees billed by the registrant’s filing of such audit report with the * * * * * Commission (or in the case of a accountant for services rendered to the Item 9. Independent public registrant, and to the registrant’s registered investment company, accountants. *** annually, and if the annual investment adviser (not including any communication is not within 90 days * * * * * subadviser whose role is primarily prior to the filing, provide an update, in (e)(1) Disclose, under the caption portfolio management and is the 90 day period prior to the filing, of Audit Fees, the aggregate fees billed for subcontracted with or overseen by any changes to the previously reported each of the last two fiscal years for another investment adviser), and any information), to the audit committee of professional services rendered by the entity controlling, controlled by, or the issuer or registered investment principal accountant for the audit of the under common control with the adviser company: registrant’s annual financial statements that provides ongoing services to the (1) All critical accounting policies and and review of financial statements registrant for each of the last two fiscal practices to be used; included in the registrant’s Form 10–Q years of the registrant. (2) All alternative treatments within (17 CFR 249.308a) or 10–QSB (17 CFR (8) If the registrant is an investment Generally Accepted Accounting 249.308b) or services that are normally company, disclose whether the audit Principles for policies and practices provided by the accountant in committee of the board of directors has related to material items that have been connection with statutory and considered whether the provision of discussed with management of the regulatory filings or engagements for non-audit services that were rendered to issuer or registered investment those fiscal years. the registrant’s investment adviser (not company, including: (2) Disclose, under the caption Audit- including any subadviser whose role is (i) Ramifications of the use of such Related Fees, the aggregate fees billed in primarily portfolio management and is alternative disclosures and treatments; each of the last two fiscal years for subcontracted with or overseen by and assurance and related services by the another investment adviser), and any (ii) The treatment preferred by the principal accountant that are reasonably entity controlling, controlled by, or registered public accounting firm; related to the performance of the audit under common control with the (3) Other material written or review of the registrant’s financial investment adviser that provides communications between the registered statements and are not reported under ongoing services to the registrant that public accounting firm and the paragraph (e)(1) of this section. were not pre-approved pursuant to 17 management of the issuer or registered Registrants shall describe the nature of CFR 210.2–01(c)(7)(ii) is compatible investment company, such as any the services comprising the fees with maintaining the principal management letter or schedule of disclosed under this category. accountant’s independence. unadjusted differences; (3) Disclose, under the caption Tax Instruction to Item 9(e). (4) If the audit client is an investment Fees, the aggregate fees billed in each of For purposes of Item 9(e)(2), (3), and company, all non-audit services the last two fiscal years for professional (4), registrants that are investment

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companies must disclose fees billed for each of the last two fiscal years for General Instructions services rendered to the registrant and assurance and related services by the * * * * * separately, disclose fees required to be principal accountant that are reasonably approved by the investment company related to the performance of the audit B. Information To Be Filed on This Form registrant’s audit committee pursuant to or review of the registrant’s financial * * * * * 17 CFR 210.2–01(c)(7)(ii). Registered statements and are not reported under investment companies must also paragraph (a) of this Item. Registrants (10) Principal Accountant Fees and disclose the fee percentages as required shall describe the nature of the services Services by item 9(e)(5)(ii) for the registrant and comprising the fees disclosed under this (1) Disclose, under the caption Audit separately, disclose the fee percentages category. Fees, the aggregate fees billed for each as required by item 9(e)(5)(ii) for the (c) Disclose, under the caption Tax of the last two fiscal years for fees required to be approved by the Fees, the aggregate fees billed in each of professional services rendered by the investment company registrant’s audit the last two fiscal years for professional principal accountant for the audit of the committee pursuant to 17 CFR 210.2– services rendered by the principal registrant’s annual financial statements 01(c)(7)(ii). accountant for tax compliance, tax or services that are normally provided * * * * * advice, and tax planning. Registrants by the accountant in connection with shall describe the nature of the services statutory and regulatory filings or PART 249—FORMS, SECURITIES comprising the fees disclosed under this engagements for those fiscal years. EXCHANGE ACT OF 1934 category. (2) Disclose, under the caption Audit- (d) Disclose, under the caption All Related Fees, the aggregate fees billed in 7. The authority citation for Part 249 Other Fees, the aggregate fees billed in each of the last two fiscal years for is amended by revising the sectional each of the last two fiscal years for assurance and related services by the authority for §§ 249.220f, 249.240f, products and services provided by the principal accountant that are reasonably 249.310, 249.310b and 249.331 to read principal accountant, other than the related to the performance of the audit as follows: services reported in paragraphs (a) or review of the registrant’s financial Authority: 15 U.S.C. 78a et seq., unless through (c) of this Item. Registrants shall statements and are not reported under otherwise noted. describe the nature of the services paragraph B.(10)(1) of this Instruction. Registrants shall describe the nature of Section 249.220f is also issued under secs. comprising the fees disclosed under this 3(a), 202, 208, 302, 306(a), 401(a), 401(b), 406 category. the services comprising the fees and 407, Pub. L. No. 107–204, 116 Stat. 745. (e)(1) Disclose the audit committee’s disclosed under this category. Section 249.240f is also issued under secs. pre-approval policies and procedures (3) Disclose, under the caption Tax 3(a), 202, 208, 302, 306(a), 401(a), 406 and described in paragraph (c)(7)(i) of Rule Fees, the aggregate fees billed in each of 407, Pub. L. No. 107–204, 116 Stat. 745. 2–01 of Regulation S–X. the last two fiscal years for professional * * * * * (2) Disclose the percentage of services services rendered by the principal Section 249.310 is also issued under secs. described in each of paragraphs (b) accountant for tax compliance, tax 3(a), 202, 208, 302, 406 and 407, Pub. L. No. through (d) of this Item that were advice, and tax planning. Registrants 107–204, 116 Stat. 745. approved by the audit committee shall describe the nature of the services Section 249.310b is also issued under secs. pursuant to paragraph (c)(7)(i)(C) of comprising the fees disclosed under this 3(a), 202, 208, 302, 406 and 407, Pub. L. No. Rule 2–01 of Regulation S–X. category. 107–204, 116 Stat. 745. (f) If greater than 50 percent, disclose (4) Disclose, under the caption All * * * * * the percentage of hours expended on the Other Fees, the aggregate fees billed in Section 249.331 is also issued under principal accountant’s engagement to each of the last two fiscal years for secs. 3(a), 202, 208, 302, 406 and 407, audit the registrant’s financial products and services provided by the Pub. L. No. 107–204, 116 Stat. 745. statements for the most recent fiscal principal accountant, other than the services reported in paragraphs B.(10)(1) 8. Amend Form 20–F (referenced in year that were attributed to work through B.(10)(3) of this Instruction. § 249.220f) by adding Item 16C to read performed by persons other than the Registrants shall describe the nature of as follows: principal accountant’s full-time, permanent employees. the services comprising the fees Note: The text of Form 20–F does not, and Instructions to Item 16C. disclosed under this category. this amendment will not, appear in the Code (5)(i) Disclose the audit committee’s of Federal Regulations. 1. You do not need to provide the information called for by this Item 16C pre-approval policies and procedures described in paragraph (c)(7)(i) of Rule Form 20–F unless you are using this form as an annual report. 2–01 of Regulation S–X. * * * * * 2. A registrant that is an Asset-Backed (ii) Disclose the percentage of services Issuer (as defined in § 240.13a–14(g) and described in each of paragraphs Item 16C. Principal Accountant Fees B.(10)(2) through B.(10)(4) of this and Services. § 240.15d–14(g) of this chapter) is not required to disclose the information Instruction that were approved by the (a) Disclose, under the caption Audit required by this Item. audit committee pursuant to paragraph Fees, the aggregate fees billed for each (c)(7)(i)(C) of Rule 2–01 of Regulation S– of the last two fiscal years for * * * * * X. professional services rendered by the 9. Amend Form 40–F (referenced in (6) If greater than 50 percent, disclose principal accountant for the audit of the § 249.240f) by adding paragraph (10) to the percentage of hours expended on the registrant’s annual financial statements General Instruction B to read as follows: principal accountant’s engagement to or services that are normally provided Note: The text of Form 40–F does not, and audit the registrant’s financial by the accountant in connection with this amendment will not, appear in the Code statements for the most recent fiscal statutory and regulatory filings or of Federal Regulations. year that were attributed to work engagements for those fiscal years. performed by persons other than the (b) Disclose, under the caption Audit- Form 40–F principal accountant’s full-time, Related Fees, the aggregate fees billed in * * * * * permanent employees.

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Notes to Instruction B.(10) the last two fiscal years for professional included in the registrant’s Form 10–Q 1. You do not need to provide the services rendered by the principal (17 CFR 249.308a) or 10–QSB (17 CFR information called for by this accountant for tax compliance, tax 249.308b) or services that are normally Instruction B.(10) unless you are using advice, and tax planning. Registrants provided by the accountant in this form as an annual report. shall describe the nature of the services connection with statutory and 2. A registrant that is an Asset-Backed comprising the fees disclosed under this regulatory filings or engagements for Issuer (as defined in § 240.13a–14(g) and category. those fiscal years. § 240.15d–14(g) of this chapter) is not (4) Disclose, under the caption All (2) Disclose, under the caption Audit- required to disclose the information Other Fees, the aggregate fees billed in Related Fees, the aggregate fees billed in required by this Instruction B.(10). each of the last two fiscal years for products and services provided by the each of the last two fiscal years for * * * * * assurance and related services by the 10. Amend Form 10–K (referenced in principal accountant, other than the services reported in Items 9(e)(1) principal accountant that are reasonably § 249.310) by: related to the performance of the audit a. Redesignating Item 16 of Part IV as through 9(e)(3) of Schedule 14A. or review of the registrant’s financial Item 17 of Part IV, and Registrants shall describe the nature of statements and are not reported under b. Adding new Item 16 to Part III. the services comprising the fees Item 9(e)(1) of Schedule 14A. The addition reads as follows: disclosed under this category. (5)(i) Disclose the audit committee’s Registrants shall describe the nature of Note: The text of Form 10–K does not, and pre-approval policies and procedures the services comprising the fees this amendment will not, appear in the Code disclosed under this category. of Federal Regulations. described in paragraph (c)(7)(i) of Rule 2–01 of Regulation S–X. (3) Disclose, under the caption Tax Form 10–K (ii) Disclose the percentage of services Fees, the aggregate fees billed in each of described in each of Items 9(e)(2) * * * * * the last two fiscal years for professional through 9(e)(4) of Schedule 14A that services rendered by the principal General Instructions were approved by the audit committee accountant for tax compliance, tax pursuant to paragraph (c)(7)(i)(C) of * * * * * advice, and tax planning. Registrants Rule 2–01 of Regulation S–X. shall describe the nature of the services (6) If greater than 50 percent, disclose Annual Report Pursuant to Section 13 comprising the fees disclosed under this the percentage of hours expended on the or 15(d) of the Securities Exchange Act category. of 1934 principal accountant’s engagement to audit the registrant’s financial (4) Disclose, under the caption All * * * * * statements for the most recent fiscal Other Fees, the aggregate fees billed in Part III year that were attributed to work each of the last two fiscal years for products and services provided by the * * * * * performed by persons other than the principal accountant’s full-time, principal accountant, other than the Item 16. Principal Accountant Fees and permanent employees. services reported in Items 9(e)(1) Services. Instruction to Item 16. through 9(e)(3) of Schedule 14A. Furnish the information required by A registrant that is an Asset-Backed Registrants shall describe the nature of Item 9(e) of Schedule 14A (§ 240.14a– Issuer (as defined in § 240.13a–14(g) and the services comprising the fees 101 of this chapter). § 240.15d–14(g) of this chapter) is not disclosed under this category. (1) Disclose, under the caption Audit required to disclose the information (5)(i) Disclose the audit committee’s Fees, the aggregate fees billed for each required by this Item. pre-approval policies and procedures of the last two fiscal years for * * * * * described in paragraph (c)(7)(i) of Rule professional services rendered by the 11. Amend Form 10–KSB (referenced 2–01 of Regulation S–X. principal accountant for the audit of the in § 249.310b) by adding Item 16 to Part III to read as follows: (ii) Disclose the percentage of services registrant’s annual financial statements described in each of Items 9(e)(2) and review of financial statements Note: The text of Form 10–KSB does not, through 9(e)(4) of Schedule 14A that included in the registrant’s Form 10–Q and this amendment will not, appear in the were approved by the audit committee (17 CFR 249.308a) or 10–QSB (17 CFR Code of Federal Regulations. pursuant to paragraph (c)(7)(i)(C) of 249.308b) or services that are normally Rule 2–01 of Regulation S–X. provided by the accountant in Form 10–KSB connection with statutory and * * * * * (6) If greater than 50 percent, disclose regulatory filings or engagements for the percentage of hours expended on the those fiscal years. Part III principal accountant’s engagement to (2) Disclose, under the caption Audit- * * * * * audit the registrant’s financial Related Fees, the aggregate fees billed in statements for the most recent fiscal each of the last two fiscal years for Item 16. Principal Accountant Fees and year that were attributed to work assurance and related services by the Services. performed by persons other than the principal accountant that are reasonably Furnish the information required by principal accountant’s full-time, related to the performance of the audit Item 9(e) of Schedule 14A (§ 240.14a– permanent employees. or review of the registrant’s financial 101 of this chapter). Instruction to Item 16. statements and are not reported under (1) Disclose, under the caption Audit Item 9(e)(1) of Schedule 14A. Fees, the aggregate fees billed for each A registrant that is an Asset-Backed Registrants shall describe the nature of of the last two fiscal years for Issuer (as defined in § 240.13a–14(g) and the services comprising the fees professional services rendered by the § 240.15d–14(g) of this chapter) is not disclosed under this category. principal accountant for the audit of the required to disclose the information (3) Disclose, under the caption Tax registrant’s annual financial statements required by this Item. Fees, the aggregate fees billed in each of and review of financial statements * * * * *

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PART 274—FORMS PRESCRIBED requirements for electronically filed statements for the most recent fiscal UNDER THE INVESTMENT COMPANY documents); Rules 12b–23 and 12b–32 year that were attributed to work ACT OF 1940 under the Exchange Act (additional performed by persons other than the rules on incorporation by reference for principal accountant’s full-time, 12. The authority citation for Part 274 reports filed pursuant to Sections 13 permanent employees. is amended by adding the following and 15(d) of the Exchange Act); and (g) Disclose the aggregate non-audit citation in numerical order to read as Rules 0–4, 8b–23, and 8b–32 under the fees billed by the registrant’s accountant follows: Investment Company Act of 1940 (17 for services rendered to the registrant, Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, CFR 270.0–4, 270.8b–23, and 270.8b– and rendered to the registrant’s 78c(b), 78l, 78m, 78n, 78o(d), 80a–8, 80a–24, 32) (additional rules on incorporation investment adviser (not including any 80a–26, and 80a–29, unless otherwise noted. by reference for investment companies). sub-adviser whose role is primarily * * * * * * * * * * portfolio management and is Section 274.128 is also issued under Item 4. Principal Accountant Fees and subcontracted with or overseen by secs. 3(a), 202, 302, 406, and 407, Pub. Services. another investment adviser), and any L. No. 107–204, 116 Stat. 745. entity controlling, controlled by, or 13. By amending Form N–CSR (a) Disclose, under the caption Audit under common control with the adviser (referenced in §§ 249.331 and 274.128): Fees, the aggregate fees billed for each that provides ongoing services to the a. By revising General Instruction D; of the last two fiscal years for registrant for each of the last two fiscal and professional services rendered by the years of the registrant. principal accountant for the audit of the b. By adding Item 4. (h) Disclose whether the registrant’s The revision and addition read as registrant’s annual financial statements audit committee of the board of follows: or services that are normally provided by the accountant in connection with directors has considered whether the Note: The text of Form N–CSR does not, statutory and regulatory filings or provision of non-audit services that and this amendment will not, appear in the were rendered to the registrant’s Code of Federal Regulations. engagements for those fiscal years. (b) Disclose, under the caption Audit- investment adviser (not including any sub-adviser whose role is primarily Form N–CSR Related Fees, the aggregate fees billed in each of the last two fiscal years for portfolio management and is * * * * * assurance and related services by the subcontracted with or overseen by General Instructions principal accountant that are reasonably another investment adviser), and any related to the performance of the audit entity controlling, controlled by, or * * * * * of the registrant’s financial statements under common control with the D. Incorporation by Reference and are not reported under paragraph (a) investment adviser that provides of this Item. Registrants shall describe ongoing services to the registrant that A registrant may incorporate by the nature of the services comprising the were not pre-approved pursuant to reference information required by Items fees disclosed under this category. paragraph (c)(7)(ii) of Rule 2–01 of 4 and 10(a). No other Items of the Form (c) Disclose, under the caption Tax Regulation S–X is compatible with shall be answered by incorporating any Fees, the aggregate fees billed in each of maintaining the principal accountant’s information by reference. The the last two fiscal years for professional independence. information required by Item 4 may be services rendered by the principal Instructions. incorporated by reference from the accountant for tax compliance, tax 1. The information required by this registrant’s definitive proxy statement advice, and tax planning. Registrants (filed or required to be filed pursuant to Item 4 is only required in an annual shall describe the nature of the services report on this Form N–CSR. Regulation 14A (17 CFR 240.14a–1 et comprising the fees disclosed under this seq.)) or definitive information category. 2. For purposes of paragraphs (b), (c), statement (filed or to be filed pursuant (d) Disclose, under the caption All and (d), registrants that are investment to Regulation 14C (17 CFR 240.14c–1 et Other Fees, the aggregate fees billed in companies must disclose fees billed for seq.)) which involves the election of each of the last two fiscal years for services rendered to the registrant and directors, if such definitive proxy products and services provided by the separately, disclose fees required to be statement or information statement is principal accountant, other than the approved pursuant to paragraph filed with the Commission not later than services reported in paragraphs (a) (c)(7)(ii) of Rule 2–01 of Regulation S– 120 days after the end of the fiscal year through (c) of this Item. Registrants shall X. Registered investment companies covered by an annual report on this describe the nature of the services must also disclose the fee percentages as Form. All incorporation by reference comprising the fees disclosed under this required by Item 4(e)(2) for the must comply with the requirements of category. registrant and separately, disclose the this Form and the following rules on (e)(1) Disclose the audit committee’s fee percentages as required by Item incorporation by reference: Rule 10(d) of pre-approval policies and procedures 4(e)(2) for the fees required to be Regulation S–K under the Securities Act described in paragraph (c)(7) of Rule 2– approved by the investment company of 1933 (17 CFR 229.10(d)) (general 01 of Regulation S–X. registrant’s audit committee pursuant to rules on incorporation by reference, (2) Disclose the percentage of services paragraph (c)(7)(ii) of Rule 2–01 of which, among other things, prohibit, described in each of paragraphs (b) Regulation S–X. unless specifically required by this through (d) of this Item that were * * * * * Form, incorporating by reference a approved by the audit committee By the Commission. document that includes incorporation pursuant to paragraph (c)(7)(i)(C) of Dated: January 28, 2003. by reference to another document, and Rule 2–01 of Regulation S–X. limits incorporation to documents filed (f) If greater than 50 percent, disclose Jill M. Peterson, within the last 5 years, with certain the percentage of hours expended on the Assistant Secretary. exceptions); Rule 303 of Regulation S– principal accountant’s engagement to [FR Doc. 03–2364 Filed 2–4–03; 8:45 am] T (17 CFR 232.303) (specific audit the registrant’s financial BILLING CODE 8010–01–P

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Part IV

The President Proclamation 7644—American Heart Month, 2003 Proclamation 7645—National African American History Month, 2003 Proclamation 7646—Honoring the Memory of the Astronauts Aboard Space Shuttle Columbia

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Federal Register Presidential Documents Vol. 68, No. 24

Wednesday, February 5, 2003

Title 3— Proclamation 7644 of January 30, 2003

The President American Heart Month, 2003

By the President of the United States of America

A Proclamation Advances in medical research have significantly improved our capacity to fight heart disease by providing greater knowledge about its causes, more innovative diagnostic tools to detect and counter it, and new and improved treatments that help people survive and recover from it. Despite these advances, heart disease continues to be America’s number one killer. During American Heart Month, we renew our commitment to fighting cardiovascular disease by encouraging our citizens to learn more about its risk factors, its various warning signs, and life-saving emergency response techniques. Heart attacks result when the blood supply to part of the heart muscle is severely reduced or stopped. Because many heart attack victims do not recognize the warning signs until it is too late, only one in five is able to reach a hospital quickly enough to benefit fully from treatments. To help Americans survive heart attacks, the National Heart, Lung, and Blood Institute (NHLBI), which is part of the National Institutes of Health, has joined with the American Heart Association (AHA) and other national organizations to create a major educational campaign, called ‘‘Act in Time to Heart Attack Signs.’’ This campaign encourages Americans to learn the warning signs of a heart attack and to call 911 within minutes—five at most— of the start of symptoms. The campaign also offers educational materials for both the general public and healthcare professionals to encourage communication among doctors, other healthcare providers, and their patients about the importance of recognizing heart attack signs and getting treatment quickly. Far too many Americans are also unaware of the dangers of cardiac arrest, in which the heart suddenly loses its ability to function. Most cases of cardiac arrest that result in sudden death occur when the diseased heart’s electrical impulses become rapid and then chaotic. About 95 percent of sudden cardiac arrest victims die before reaching the hospital. However, if treated within a few minutes, cardiac arrest can be reversed through defibrillation, an electric shock that allows the heart to resume a normal beat. Research has shown that early cardiopulmonary resuscitation (CPR) and rapid defibrillation, combined with early advanced care, can produce long- term survival rates of 40 percent where a cardiac arrest has been witnessed by a bystander. The AHA has developed a nationwide educational campaign called ‘‘Operation Heartbeat,’’ to increase public awareness about cardiac arrest. ‘‘Operation Heartbeat’’ is educating the public about the warning signs of cardiac arrest, the importance of calling 911 immediately, and the benefits of administering CPR until defibrillation can be given. When Americans take personal steps to improve their health, our whole society benefits. By developing good eating habits, being physically active, taking advantage of preventive screenings, and avoiding drugs, tobacco, and excessive use of alcohol, individuals and families can significantly reduce the onset and burden of heart disease. In promoting new education programs, supporting research, expanding access to life-saving tools, and encouraging our citizens to learn more about cardiovascular disease and lead healthy lifestyles, we can save lives.

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In recognition of the important ongoing fight against cardiovascular disease, the Congress, by Joint Resolution approved December 30, 1963, as amended (77 Stat. 843; 36 U.S.C. 101), has requested that the President issue an annual proclamation designating February as ‘‘American Heart Month.’’ NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, do hereby proclaim February 2003 as American Heart Month. I invite the Governors of the States, the Commonwealth of Puerto Rico, officials of other areas subject to the jurisdiction of the United States, and the American people to join me in reaffirming our commitment to combating cardiovascular disease. IN WITNESS WHEREOF, I have hereunto set my hand this thirtieth day of January, in the year of our Lord two thousand three, and of the Independ- ence of the United States of America the two hundred and twenty-seventh. W

[FR Doc. 03–3047 Filed 2–4–03; 11:04 am] Billing code 3195–01–P

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Proclamation 7645 of January 31, 2003 National African American History Month, 2003

By the President of the United States of America

A Proclamation African Americans have played central roles in some of the most triumphant and courageous moments in our Nation’s history. During National African American History Month, we honor the rich heritage of African Americans and pay tribute to their many contributions to our Nation. As we celebrate this year’s theme, ‘‘The Souls of Black Folk: Centennial Reflections,’’ we remember the successes and challenges of our past. We also resolve to honor the achievements and legacy of these proud citizens by continuing to improve our society so that it fully lives up to our founding ideals. In 1915, Dr. Carter Godwin Woodson recognized the need for our country to gain a more complete and informed understanding of our past. He founded the Association for the Study of Negro Life and History and established the first Negro History Week to emphasize that ‘‘We have a wonderful history behind us . . . ‘‘ Through the pioneering efforts of Dr. Woodson and the hard work of the Association, this observance officially became Black History Month in 1976. For generations, African Americans have strengthened our Nation by urging reforms, overcoming obstacles, and breaking down barriers. We see the greatness of America in those who have risen above injustice and enriched our society, a greatness reflected in the resolve of Jackie Robinson, the intellect of W.E.B. DuBois, and the talent of Louis Armstrong. We also gain a deeper appreciation for the African-American experience in the writings of James Baldwin, Ralph Ellison, and Zora Neal Hurston, as well as in the music of Mahalia Jackson, Billie Holiday, Duke Ellington, and countless others. African Americans reflect a proud legacy of courage and dedication that has helped to guide our Nation’s success and prosperity. Visionary leaders like Frederick Douglass, Thurgood Marshall, and Martin Luther King, Jr., possessed a clarity of purpose and were instrumental in exposing and addressing the issues that threatened our founding principles. The battle for freedom, equality, and opportunity was fought on the front lines by strong figures such as Harriet Tubman and Fannie Lou Hamer, as well as many other everyday heroes who helped to lead this Nation to a more hopeful and just society. As we recall these remarkable individuals, we also recognize that, despite our progress, racial prejudice still exists in America. As a Nation and as individuals, we must be vigilant in responding to discrimination wherever we find it. By promoting diversity, understanding, and opportunity, we will continue our efforts to build a society where every person, of every race, can realize the promise of America. This month, I encourage all citizens to gain awareness of and appreciation for African-American history. As we remember this important part of our Nation’s past, we look to a bright future, recognizing the potential of an America united in purpose, guided by spirit, and dedicated to equality. NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, by virtue of the authority vested in me by the Constitution

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and laws of the United States, do hereby proclaim February 2003 as National African American History Month. I call upon public officials, educators, librarians, and all of the people of the United States to observe this month with appropriate programs and activities that highlight and honor the myriad of contributions that African Americans have made to our Nation. IN WITNESS WHEREOF, I have hereunto set my hand this thirty-first day of January, in the year of our Lord two thousand three, and of the Independ- ence of the United States of America the two hundred and twenty-seventh. W

[FR Doc. 03–3007 Filed 2–4–03; 11:04 am] Billing code 3195–01–P

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Proclamation 7646 of February 1, 2003

Honoring the Memory of the Astronauts Aboard Space Shut- tle Columbia

By the President of the United States of America

A Proclamation As a mark of respect for Rick Douglas Husband, William C. McCool, Laurel Blair Salton Clark, Kalpana Chawla, Michael P. Anderson, David M. Brown, and Ilan Ramon who gave their lives during the mission of STS–107 aboard the Space Shuttle Columbia on February 1, 2003, I hereby order, by the authority vested in me as President of the United States of America by the Constitution and the laws of the United States of America, that the flag of the United States shall be flown at half-staff at the White House and upon all public buildings and grounds, at all military posts and naval stations, and on all naval vessels of the Federal Government in the District of Columbia and throughout the United States and its Territories and posses- sions through Wednesday, February 5, 2003. I also direct that the flag shall be flown at half-staff for the same length of time at all United States embassies, legations, consular offices, and other facilities abroad, including all military facilities and naval vessels and stations. IN WITNESS WHEREOF, I have hereunto set my hand this first day of February, in the year of our Lord two thousand three, and of the Independ- ence of the United States of America the two hundred and twenty-seventh. W

[FR Doc. 03–3008 Filed 2–4–03; 11:04 am] Billing code 3195–01–P

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Reader Aids Federal Register Vol. 68, No. 24 Wednesday, February 5, 2003

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING FEBRUARY

Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. 17 CFR Presidential Documents 3 CFR 1...... 5545 Executive orders and proclamations 741–6000 Proclamations: 30...... 5545 The United States Government Manual 741–6000 7644...... 6055 190...... 5545 7645...... 6057 Other Services 210...... 6006 7646...... 6059 Electronic and on-line services (voice) 741–6020 228...... 5982 Executive Orders: 229...... 5982 Privacy Act Compilation 741–6064 13285...... 5203 Public Laws Update Service (numbers, dates, etc.) 741–6043 240...... 5348, 6006 Presidential Determinations: 249 ...... 5348, 5982, 6006 TTY for the deaf-and-hard-of-hearing 741–6086 No. 2003-13 of 270...... 5348 January 29, 2003 ...... 5785 274...... 5348, 6006 ELECTRONIC RESEARCH No. 2003-14 of January 30, 2003 ...... 5787 20 CFR World Wide Web 404...... 5210 5 CFR Full text of the daily Federal Register, CFR and other publications 416...... 5210 is located at: http://www.access.gpo.gov/nara 576...... 5529 875...... 5530 21 CFR Federal Register information and research tools, including Public 890...... 5470 Inspection List, indexes, and links to GPO Access are located at: 529...... 5562 866...... 5825 http://www.archives.gov/federallregister/ 7 CFR Proposed Rules: E-mail 1413...... 5205 1...... 5378, 5428 301...... 5793, 5794 FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is 318...... 5796, 5800 22 CFR an open e-mail service that provides subscribers with a digital Proposed Rules: form of the Federal Register Table of Contents. The digital form 9 CFR of the Federal Register Table of Contents includes HTML and 307...... 5857 94...... 5802 PDF links to the full text of each document. 26 CFR To join or leave, go to http://listserv.access.gpo.gov and select 12 CFR 1...... 5346 Online mailing list archives, FEDREGTOC-L, Join or leave the list 1805...... 5704 (or change settings); then follow the instructions. 1806...... 5717 28 CFR PENS (Public Law Electronic Notification Service) is an e-mail Proposed Rules: 522...... 5563 service that notifies subscribers of recently enacted laws. 609...... 5595 32 CFR To subscribe, go to http://hydra.gsa.gov/archives/publaws-l.html 611...... 5587 and select Join or leave the list (or change settings); then follow 612...... 5587 706 .....5827, 5828, 5829, 5830, the instructions. 614...... 5587, 5595 5831 615...... 5595 FEDREGTOC-L and PENS are mailing lists only. We cannot 617...... 5587, 5595 33 CFR respond to specific inquiries. 117...... 5832 Reference questions. Send questions and comments about the 13 CFR 165...... 5833 Federal Register system to: [email protected] Proposed Rules: Proposed Rules: The Federal Register staff cannot interpret specific documents or 120...... 5234 117...... 5858 regulations. 121...... 5234 165...... 5614 385...... 5860 14 CFR 40 CFR FEDERAL REGISTER PAGES AND DATE, FEBRUARY 23...... 5538 52...... 5221, 5228 5203–5528...... 3 25...... 5208 39 ...... 5541, 5805, 5808, 5810, 180 ...... 5835, 5839, 5847 5529–5784...... 4 5812, 5815, 5818, 5819, Proposed Rules: 5785–6060...... 5 5822 52...... 5246, 5263 119...... 5782 121...... 5782 44 CFR 129...... 5782 64...... 5852 135...... 5782 Proposed Rules: 183...... 5782 61...... 5264 Proposed Rules: 39...... 5610, 5856 46 CFR 71...... 5613 356...... 5564 125...... 5488 135...... 5488 47 CFR 73 ...... 5583, 5584, 5854, 5855 15 CFR Proposed Rules: 2016...... 5542 73 ...... 5616, 5617, 5860, 5861,

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5862 1835...... 5230 52...... 5778 50 CFR 1852...... 5230 679...... 5585 48 CFR Proposed Rules: 49 CFR 1804...... 5230 2...... 5774 Proposed Rules: 1827...... 5230 31...... 5774 571...... 5863

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REMINDERS Commercial motor vehicles marketings, and comments due by 2-12- The items in this list were inspected by performance- recordkeeping and 03; published 1-13-03 [FR editorially compiled as an aid based brake testers; reporting requirements; 03-00562] to Federal Register users. brake performance comments due by 2-12- ENVIRONMENTAL Inclusion or exclusion from requirements; published 8- 03; published 1-13-03 [FR PROTECTION AGENCY this list has no legal 9-02 03-00368] Air pollutants, hazardous; significance. TRANSPORTATION AGRICULTURE national emission standards: DEPARTMENT DEPARTMENT Metal can surface coating operations; comments due RULES GOING INTO National Highway Traffic Rural Utilities Service Safety Administration by 2-14-03; published 1- EFFECT FEBRUARY 5, Environmental policies and Motor vehicle safety procedures; comments due 15-03 [FR 03-00087] 2003 standards: by 2-14-03; published 1-15- Stationary combustion Occupant crash protection— 03 [FR 03-00713] turbines; comments due AGRICULTURE by 2-13-03; published 1- Advanced air bag rule; COMMERCE DEPARTMENT DEPARTMENT 14-03 [FR 03-00086] future air bags designed National Oceanic and Animal and Plant Health Air programs: Inspection Service to create less risk of Atmospheric Administration serious injuries for small Outer Continental Shelf Hawaiian and territorial Endangered and threatened Regulations— women and young species: quarantine notices: California; consistency children, etc.; published Salmon and steelhead; Fruits and vegetables from 1-6-03 update; comments due Hawaii; published 2-5-03 evolutionarily significant by 2-12-03; published ENVIRONMENTAL units in California; status 1-13-03 [FR 03-00618] COMMENTS DUE NEXT review updates and PROTECTION AGENCY ENVIRONMENTAL information request; Pesticides; tolerances in food, WEEK PROTECTION AGENCY comments due by 2-14- animal feeds, and raw Air quality implementation agricultural commodities: AGRICULTURE 03; published 12-31-02 [FR 02-32953] plans; approval and 6-Benzyladenine; published DEPARTMENT promulgation; various 2-5-03 Animal and Plant Health COMMERCE DEPARTMENT States; air quality planning Cyprodinil; published 2-5-03 Inspection Service National Oceanic and purposes; designation of Thiophanate Methyl; Agricultural Bioterrorism Atmospheric Administration areas: published 2-5-03 Protection Act: Fishery conservation and Indiana; comments due by FEDERAL Biological agents and toxins; management: 2-10-03; published 1-10- COMMUNICATIONS possession; comments Atlantic highly migratory 03 [FR 03-00282] COMMISSION due by 2-11-03; published species— ENVIRONMENTAL Radio stations; table of 12-13-02 [FR 02-31373] Commercial shark PROTECTION AGENCY assignments: AGRICULTURE management measures; Air quality implementation Arizona; published 2-5-03 DEPARTMENT comments due by 2-14- plans; approval and INTERIOR DEPARTMENT Animal and Plant Health 03; published 12-27-02 promulgation; various [FR 02-32617] Land Management Bureau Inspection Service States; air quality planning purposes; designation of Public administrative Interstate transportation COMMERCE DEPARTMENT areas: procedures: (quarantine) and exportation National Oceanic and Indiana; comments due by Conveyances, disclaimers, and importation of animals Atmospheric Administration 2-10-03; published 1-10- and correction and animal products: Fishery conservation and 03 [FR 03-00283] documents— Salmonella enteritidis phage- management: Air quality implementation type 4 and serotype West Coast States and Recordable disclaimers of plans; approval and enteritidis; import Western Pacific interest in land; promulgation; various restrictions and fisheries— amendments; published States: 1-6-03 regulations removed; Pacific Coast groundfish; Connecticut; comments due comments due by 2-14- NUCLEAR REGULATORY comments due by 2-12- by 2-11-03; published 1- 03; published 12-16-02 COMMISSION 03; published 1-28-03 21-03 [FR 03-01239] [FR 02-31569] [FR 03-01909] Spent nuclear fuel and high- ENVIRONMENTAL AGRICULTURE level radioactive waste; Marine mammals: PROTECTION AGENCY independent storage; DEPARTMENT Commercial fishing Air quality implementation licensing requirements: Commodity Credit authorizations— plans; approval and Approved spent fuel storage Corporation Fisheries categorized promulgation; various casks; list; published 1-6- Loan and purchase programs: according to frequency States: 03 Tobacco marketing cards, of incidental takes; Indiana; comments due by PERSONNEL MANAGEMENT penalties, identification of 2003 list; comments 2-14-03; published 1-15- OFFICE marketings, and due by 2-10-03; 03 [FR 03-00616] published 1-10-03 [FR Prevailing rate systems; recordkeeping and ENVIRONMENTAL 03-00523] published 1-6-03 reporting requirements; PROTECTION AGENCY TRANSPORTATION comments due by 2-12- DEFENSE DEPARTMENT Air quality implementation DEPARTMENT 03; published 1-13-03 [FR Engineers Corps plans; approval and 03-00368] Federal Aviation Danger zones and restricted promulgation; various Administration AGRICULTURE areas: States: Airworthiness directives: DEPARTMENT Point Mugu, CA; Naval Indiana; comments due by Raytheon; published 2-5-03 Farm Service Agency Base Ventura County; 2-14-03; published 1-15- TRANSPORTATION Farm marketing quotas, comments due by 2-12- 03 [FR 03-00617] DEPARTMENT acreage allotments, and 03; published 1-13-03 [FR ENVIRONMENTAL Federal Motor Carrier Safety production adjustments: 03-00561] PROTECTION AGENCY Administration Tobacco marketing cards, Port Hueneme, CA; Naval Air quality implementation Motor carrier safety standards: penalties, identification of Base Ventura County; plans; approval and

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promulgation; various Television stations; table of reporting rules; update; Bombardier; comments due States: assignments: comments due by 2-10- by 2-12-03; published 1- Maryland; comments due by Colorado; comments due by 03; published 1-16-03 [FR 13-03 [FR 03-00642] 2-14-03; published 1-15- 2-14-03; published 1-13- 03-00841] Dornier; comments due by 03 [FR 03-00729] 03 [FR 03-00664] Rates and fees changes 2-14-03; published 1-6-03 ENVIRONMENTAL GENERAL SERVICES and mail classification [FR 03-00146] PROTECTION AGENCY ADMINISTRATION schedule changes or TRANSPORTATION establishment; additional Air quality implementation Acquisition regulations: DEPARTMENT plans; approval and filing requirements; FedBizOpps; e-mail comments due by 2-12- Federal Aviation promulgation; various notification service charge; Administration States: 03; published 12-30-02 comments due by 2-10- [FR 02-32707] Airworthiness directives: Maryland; comments due by 03; published 1-9-03 [FR SECURITIES AND MD Helicopters, Inc.; 2-14-03; published 1-15- 03-00378] 03 [FR 03-00730] EXCHANGE COMMISSION comments due by 2-10- HEALTH AND HUMAN 03; published 12-11-02 Solid wastes: Investment companies: SERVICES DEPARTMENT [FR 02-31176] State underground storage Certification of management tank program approvals— Quarantine, inspection, and investment company TRANSPORTATION licensing: DEPARTMENT Pennsylvania; comments shareholder reports and due by 2-13-03; Select agents and toxins; designation of certified Federal Aviation published 1-3-03 [FR possession, use, and shareholder reports as Administration 03-00034] transfer; comments due Exchange Act periodic Airworthiness directives: by 2-11-03; published 12- Superfund program: reporting form; comments Textron Lycoming; 13-02 [FR 02-31370] due by 2-14-03; published National oil and hazardous comments due by 2-11- 1-2-03 [FR 02-32470] substances contingency HEALTH AND HUMAN 03; published 12-13-02 plan— SERVICES DEPARTMENT Securities, etc.: [FR 02-31396] National priorities list Inspector General Office, Electronic filing and website Class E airspace; comments update; comments due Health and Human Services posting for Forms 3, 4, due by 2-15-03; published by 2-12-03; published Department and 5; statutory mandate; 12-2-02 [FR 02-30334] comments due by 2-10- 1-13-03 [FR 03-00514] Quarantine, inspection, and TRANSPORTATION 03; published 12-27-02 ENVIRONMENTAL licensing: DEPARTMENT [FR 02-32731] PROTECTION AGENCY Select agents and toxins; Federal Aviation STATE DEPARTMENT Superfund program: possession, use, and Administration transfer Visas; nonimmigrant National oil and hazardous Class E2 and Class E5 documentation: substances contingency Civil money penalties; airspace; correction; plan— comments due by 2-11- Crew list visas; elimination; comments due by 2-14-03; National priorities list 03; published 12-13-02 comments due by 2-11- published 1-27-03 [FR 03- update; comments due [FR 02-31370] 03; published 12-13-02 01314] by 2-12-03; published [FR 02-31482] INTERIOR DEPARTMENT TRANSPORTATION 1-13-03 [FR 03-00515] Land Management Bureau TRANSPORTATION DEPARTMENT DEPARTMENT FEDERAL Hearings and appeals National Highway Traffic COMMUNICATIONS procedures: Coast Guard Safety Administration COMMISSION Wildife management affairs; Ports and waterways safety: Fuel economy standards: Frequency allocations and amendments; comments Houston-Galveston Captain radio treaty matters: Light trucks; 2005-2007 due by 2-14-03; published of Port Zone, TX; security model years; comments World Radiocommunication 12-16-02 [FR 02-31575] zones; comments due by Conferences concerning due by 2-14-03; published INTERIOR DEPARTMENT 2-10-03; published 12-10- 12-16-02 [FR 02-31522] frequency bands above 02 [FR 02-31149] Fish and Wildlife Service TREASURY DEPARTMENT 28 MHz; comments due Ohio River, Natrium, WV; Endangered and threatened by 2-10-03; published 12- security zone; comments Customs Service species: 10-02 [FR 02-30898] due by 2-14-03; published Vessel cargo manifest Practice and procedure: Critical habitat 12-16-02 [FR 02-31539] information; confidentiality Federal claims collection— designations— TRANSPORTATION protection; comments due Delinquent debtor Mariana fruit bat, etc., DEPARTMENT by 2-10-03; published 1-9- applications or requests from Guam and 03 [FR 03-00363] Federal Aviation for benefits; comments Northern Mariana Administration TREASURY DEPARTMENT due by 2-10-03; Islands; comments due Internal Revenue Service published 12-12-02 [FR by 2-13-03; published Air traffic operating and flight 02-30900] 1-28-03 [FR 03-01799] rules, etc.: Income taxes: Radio stations; table of INTERIOR DEPARTMENT Los Angeles International Incidental expenses Airport, CA; special flight substantiation; cross- assignments: Hearings and Appeals rules in vicinity— reference; comments due Arizona; comments due by Office, Interior Department 2-14-03; published 12-24- Revision; comments due by 2-10-03; published 11- Hearings and appeals by 2-14-03; published 12-02 [FR 02-28544] 02 [FR 02-32292] procedures: Hawaii; comments due by 12-31-02 [FR 02-32939] VETERANS AFFAIRS Wildlife management affairs; 2-14-03; published 1-21- Airports: DEPARTMENT amendments; comments 03 [FR 03-01200] due by 2-14-03; published Passenger facility charge Adjudication; pensions, New Jersey; comments due 12-16-02 [FR 02-31575] rule; air carriers compensation, dependency, by 2-10-03; published 1-6- compensation; revisions; etc.: POSTAL RATE COMMISSION 03 [FR 03-00167] comments due by 2-12- Hospital care, medical or Oklahoma; comments due Practice and procedure: 03; published 1-14-03 [FR surgical treatment, by 2-10-03; published 1-6- Postal Service data 03-00820] examination, training and 03 [FR 03-00168] submissions; periodic Airworthiness directives: rehabilitation services, or

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compensated work www.nara.gov/fedreg/ H.J. Res. 13/P.L. 108–4 hydra.gsa.gov/archives/ therapy program; plawcurr.html. Making further continuing publaws-l.html or send E-mail indemnity compensation; appropriations for the fiscal to [email protected] comments due by 2-10- The text of laws is not year 2003, and for other with the following text 03; published 12-12-02 published in the Federal purposes. (Jan. 31, 2003; 117 message: [FR 02-31250] Register but may be ordered Stat. 8) in ‘‘slip law’’ (individual Last List January 15, 2003 SUBSCRIBE PUBLAWS-L pamphlet) form from the LIST OF PUBLIC LAWS Your Name. Superintendent of Documents, This is a continuing list of U.S. Government Printing Public Laws Electronic Note: This service is strictly public bills from the current Office, Washington, DC 20402 Notification Service for E-mail notification of new session of Congress which (phone, 202–512–1808). The (PENS) have become Federal laws. It text will also be made laws. The text of laws is not may be used in conjunction available on the Internet from available through this service. with ‘‘P L U S’’ (Public Laws GPO Access at http:// PENS is a free electronic mail PENS cannot respond to Update Service) on 202–741– www.access.gpo.gov/nara/ notification service of newly specific inquiries sent to this 6043. This list is also nara005.html. Some laws may enacted public laws. To address. available online at http:// not yet be available. subscribe, go to http://

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